Question

Prepare Profit and Loss Account of Sanjay Brothers for the year ended 31st March 2018 from the following balances.

1)	Bank charges	₹ 22,000
2)	Interest (Cr.)	₹ 16,000
3)	Sundry expenses	₹ 42,000
4)	Insurance	₹ 35,000
5)	Salaries	₹ 40,000
6)	Rates and Taxes	₹ 13,000
7)	Postage	₹ 8,000
8)	Advertisement	₹ 40,000
9)	Rent paid	₹ 32,000
10)	Bad debts	₹ 10,000
11)	Commission (Cr)	₹ 17,500
12)	Printing & Stationery	₹ 21,000
13)	Loss by fire	₹ 18,000
14)	Discount (Dr)	₹ 23,000
15)	Discount (Cr)	₹ 37,000
16)	Misc. Income	₹ 14,000
17)	Depreciation	₹ 34,000
18)	Carriage Outwards	₹ 60,000
19)	Godown Expenses	₹ 40,000

Note: Gross Profit ₹ 4,07,500

Answer 1

In the books of the Sanjay Brothers
Dr.	Profit & Loss Account for the year ended 31st March, 2019.				Cr.
Particulars	Amt. (₹)	Amt. (₹)	Particulars	Amt. (₹)	Amt. (₹)
To Bank charges		22,000	By Gross Profit b/d		4,07,500
To Sundry Expenses		42,000	By Interest		16,000
To Insurance		35,000	By Commission		17,500
To Salaries		40,000	By Discount		37,000
To Rates and Taxes		13,000	By Misc. Income		14,000
To Postage		8,000
To Advertisement		40,000
To Rent paid		32,000
To Bad debts		10,000
To Printing & Stationery		21,000
To Loss by fire		18,000
To Discount		23,000
To Depreciation		34,000
To Carriage Outwards		60,000
To Godown Expenses		40,000
To Net Profit c/d		54,000
		4,92,000			4,92,000