Question

The following is the Trial Balance of ABC Industries as on 31st December 2015.

TRIAL BALANCE of ABC Industries as on 31.12.2015
Particulars	Amount (Dr.)	Particulars	Amount (Cr.)
Salaries	4,000.00	Sales	83,000.00
Cash Balance	2,000.00	Rent Received	2,000.00
Bank Balance	3,000.00	Purchases Returns	1,000.00
Wages	1,500.00	Creditors	7,000.00
Insurance	500.00	Capital Account	25,000.00
Trade Expenses	7,000.00
Discount Allowed	750.00
Opening Stock (1.1.2015)	5,000.00
Buildings	40,000.00
Furniture	15,000.00
Sales Returns	250.00
Drawings	1,000.00
Debtors	5,000.00
Purchases	30,000.00
Legal Charges	1,000.00
Advertisement Expenses	2,000.00
	1,18,000.00		1,18,000.00

The closing stock was valued at ₹ 9,000.

You are required to prepare a Trading Account and a Profit and Loss Account for the year ending 31st December 2015 and a Balance Sheet as on 31st December, 2015.

Answer 1

In the Books of ABC Industries
Dr.	Trading and Profit and Loss A/c for the year ended 31.12.2015				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Opening Stock	-	5,000	By Sales	83,000
To Purchases	30,000		Less: Returns	(250)	82,750
Less: Returns	(1,000)	29,000	By Closing Stock	-	9,000
To Wages	-	1,500
To Gross Profit	-	56,250
		91,750			91,750
To Salaries	-	4,000	By Gross Profit	-	56,250
To Discount Allowed	-	750	By Rent Recd.	-	2,000
To Legal charges	-	1,000
To Insurance	-	500
To Advertisement expenses	-	2,000
To Trade Expenses	-	7,000
To Net Profit	-	43,000
		58,250			58,250

 

Balance Sheet as on 31.12.2000
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	25,000	67,000	Building	40,000
Add: Net Profit	43,000		Furniture	15,000
Less: Drawings	(1,000)		Sundry Debtors	5,000
Sundry Creditors	-	7,000	Cash in Hand	2,000
			Cash at bank	3,000
			Closing Stock	9,000
		74,000		74,000