Question

Prepare trading and profit and loss account and balance sheet of M/s Royal Traders from the following balances as on March 31, 2017.

Debit balances	Amount ₹	Credit balances	Amount ₹
Stock	20,000	Sales	2,45,000
Cash	5,000	Creditors	10,000
Bank	10,000	Bills payable	4,000
Carriage on purchases	1,500	Capital	2,00,000
Purchases	1,90,000
Drawings	9,000
Wages	55,000
Machinery	1,00,000
Debtors	27,000
Postage	300
Sundry expenses	1,700
Rent	4,500
Furniture	35,000

Closing stock ₹ 8,000.

Answer 1

Dr.	Trading Account as on March 31, 2017		Cr.
Particulars	Amount ₹	Particulars	Amount ₹
Opening Stock	20,000	Sales	2,45,000
Purchases	1,90,000	Closing Stock	8,000
Carriage on Purchases	1,500	Profit and Loss (Gross Loss)	13,500
Wages	55,000
	2,66,500		2,66,500

 

Dr.	Profit and Loss Account as on March 31, 2017		Cr.
Particulars	Amount ₹	Particulars	Amount ₹
Trading (Gross Loss)	13,500
Postage	300
Sundry Expenses	1,700
Rent	4,500	Net Loss	20,000
	20,000		20,000

 

Balance Sheet of M/s Royal Traders as on March 31, 2017
Liabilities		Amount ₹	Assets	Amount ₹
Capital	2,00,000		Machinery	1,00,000
Less: Net Loss	(20,000)		Furniture	35,000
Less: Drawings	(9,000)	1,71,000	Debtors	27,000
			Closing Stock	8,000
Creditors		10,000	Bank	10,000
Bills Payable		4,000	Cash	5,000
		1,85,000		1,85,000