Question

Prepare a Trading, Profit and Loss Account of XYZ, for the year 31st March, 2022 and a Balance Sheet as on 31st March, 2022.

Particulars	Amount ₹ (Dr.)	Amount ₹ (Cr.)
Capital		1,00,000
Furniture	20,000
Purchases	1,50,000
Debtors	2,00,000
Interest Received		4,000
Salaries	30,000
Sales		3,21,000
Purchase Returns		5,000
Wages	20,000
Rent	15,000
Sales Return	10,000
Carriage outwards	7,000
Creditors		1,26,000
Printing and Stationery	8,000
Insurance	12,000
Opening Stock	50,000
Office Expenses	12,000
Bank Overdraft		2,000
Drawing	24,000
Total	5,58,000	5,58,000

Closing Stock was valued at ₹ 60,000 on 31st March, 2022.

Answer 1

Dr.	In the books of XYZ Trading Account for the year ended on 31-3-2022				Cr.
Particulars		Amount (₹)	Particulars		Amount (₹)
To Opening stock		50,000	By Sales	3,21,000	3,11,000
To Purchases	1,50,000	1,45,000	Less: Returns	10,000
Less: Returns	5,000		By Closing Stock		60,000
To wages		20,000
To Gross Profit		1,56,000
(transferred to Profit and Loss A/c)
		3,71,000			3,71,000

 

Dr.	Profit and loss Account for the year ended 31-3-2022		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Salaries	30,000	By Gross Profit	1,56,000
To Rent	15,000	(transferred from Trading Account)	4,000
To Carriage outwards	7,000	By Interest Received
To Printing and Stationery	8,000
To Insurance	12,000
To Office expenses	12,000
To Net Profit	76,000
(transferred to balance sheet)
	1,60,000		1,60,000

 

Balance sheet as on 31-3-2022
Particulars		Amount (₹)	Particulars	Amount (₹)
Bank overdraft		2,000	Closing Stock	60,000
Creditors		1,26,000	Debtors	2,00,000
Capital	1,00,000	1,52,000	Furniture	20,000
Add: Net profit	76,000
Less: Drawings	24,000
		2,80,000		2,80,000