Question

Prepare trading and profit and loss account and balance sheet as on March 31, 2017:

Account Title	Amount ₹	Account Title	Amount ₹
Machinery	27,000	Capital	60,000
Sundry debtors	21,600	Bills payable	2,800
Drawings	2,700	Sundry creditors	1,400
Purchases	58,500	Sales	73,500
Wages	15,000
Sundry expenses	600
Rent and taxes	1,350
Carriage inwards	450
Bank	4,500
Openings stock	6,000

Closing stock, as on March 31, 2017 ₹ 22,400.

Answer 1

Dr.	Trading Account as on March 31, 2017		Cr.
Particulars	Amount ₹	Particulars	Amount ₹
Opening Stock	6,000	Sales	73,500
Purchases	58,500	Closing Stock	22,400
Wages	15,000
Carriage Inwards	450
Profit and Loss (Gross Profit)	15,950
	95,900		95,900

 

Dr.	Profit and Loss Account as on March 31, 2017		Cr.
Particulars	Amount ₹	Particulars	Amount ₹
Sundry Expenses	600	Trading (Gross Profit)	15,950
Rent and Taxes	1,350
Net Profit	14,000
	15,950		15,950

 

Balance Sheet as on March 31, 2017
Liabilities		Amount ₹	Assets	Amount ₹
Capital	60,000		Fixed Assets
Add: Net Profit	14,000		Machinery	27,000
	74,000
Less: Drawings	2,700	71,300	Current Assets
			Bank	4,500
Sundry Creditors		1,400	Closing Stock	22,400
Bills Payable		2,800	Sundry Debtors	21,600
		75,500		75,500