Question

Prepare Trading, Profit and Loss A/c and Balance Sheet of M/s Banerjee Enterprises for the Year ended 31st March, 2010 from the following Trial Balance.

Heads of Accounts	(Dr.) (₹)	(Cr.) (₹)
Opening Stock	25,000	-
Purchases and Sales	75,000	2,00,000
Discounts	3,600	6,000
Debtors and Creditors	32,000	15,000
Bad debts	400	-
Cash-in-Hand	3,000	-
Machinery	50,000	-
Salaries	8,000	-
Carriage Inwards	2,000	-
Wages	6,000	-
Investments	20,000	-
Land and Building	90,300	-
Bank Overdraft	-	20,000
Commissions	1,350	3,510
Interest on Investments	-	2,000
Electricity	2,000	-
Rent	2,500	-
Insurance	1,800	-
Capital	-	76,440
	3,22,950	3,22,950

Closing stock was ₹ 10,360.

Answer 1

In the Books of M/s Banerjee Enterprises
Dr.	Trading Account  for the year ending 31st March, 2010		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Opening Stock	25,000	By Sales	2,00,000
To Purchases	75,000	By Closing Stock	10,360
To Carriage Inwards	2,000
To Wages	6,000
To Electricity	2,000
To Gross Profit Transferred to P&L A/c	1,00,360
	2,10,360		2,10,360

 

Dr.	Profit and Loss A/c for the year ending 31st March, 2010		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Rent	2,500	By Gross Profit c/f	1,00,360
To Insurance	1,800	By Interest on Investments	2,000
To Discount	3,600	By Discount	6,000
To Commission	1,350	By Commission	3,510
To Salaries	8,000
To Bad Debts	400
To Net Profit transferred to Capital Account	94,220
	1,13,870		1,13,870

 

Balance Sheet as on 31st March, 2010
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Creditors	-	15,000	Machinery	50,000
Capital	76,440	1,70,660	Investments	20,000
Add: Net Profit	94,220		Debtors	32,000
Bank Overdraft	-	20,000	Cash in Hand	3,000
			Land and Building	90,300
			Stock	10,360
		2,05,660		2,05,660