Question

Prepare trading and profit and loss account and balance sheet from the following particulars as on March 31, 2017.

Account Title	Debit Amount ₹	Credit Amount ₹
Purchases and Sales	3,52,000	5,60,000
Return inwards and Return outwards	9,600	12,000
Carriage inwards	7,000
Carriage outwards	3,360
Fuel and power	24,800
Opening stock	57,600
Bad debts	9,950
Debtors and Creditors	1,31,200	48,000
Capital		3,48,000
Investment	32,000
Interest on investment		3,200
Loan		16,000
Repairs	2,400
General expenses	17,000
Wages and salaries	28,800
Land and buildings	2,88,000
Cash in hand	32,000
Miscellaneous receipts		160
Sales tax collected		8,350

Closing stock ₹ 30,000.

Answer 1

Dr.	Trading Account as on March 31, 2017			Cr.
Particulars	Amount ₹	Particulars		Amount ₹
Opening Stock	57,600	Sales	5,60,000
Purchases 3,52,000		Less: Return Inwards	(9,600)	5,50,400
Less: Return Outwards (12,000)	3,40,000	Closing Stock		30,000
Carriage Inwards	7,000
Fuel and Power	24,800
Wages and Salaries	28,800
Profit and Loss (Gross Profit)	1,22,200
	5,80,400			5,80,400

 

Dr.	Profit and Loss Account as on March 31, 2017		Cr.
Particulars	Amount ₹	Particulars	Amount ₹
Carriage Outwards	3,360	Trading (Gross Profit)	1,22,200
Bad Debts	9,950	Interest on Investment	3,200
Repairs	2,400	Miscellaneous Receipts	160
General Expenses	17,000
Net Profit	92,850
	1,25,560		1,25,560

 

Balance Sheet as on March 31, 2017
Liabilities		Amount ₹	Assets	Amount ₹
Capital	3,48,000		Land and Building	2,88,000
Add: Net Profit	92,850	4,40,850	Investment	32,000
			Debtors	1,31,200
Loan		16,000	Closing Stock	30,000
Creditors		48,000	Cash in Hand	32,000
Sales Tax Collected		8,350
		5,13,200		5,13,200