Question

The following is the trial balance of Harinath’s business, for the year ending 31 March 2023:

	Debit (₹)	Credit (₹)
Capital		9,790
Drawings	2,100
Debtors and Creditors	8,220	6,470
Cash and Bank Balance	240	660
Discounts	340	210
Purchases and Sales	10,270	16,620
Factory Premises	5,500
Wages and Salaries	1,880
Office Furniture	1,000
Stock as on 1.4.2022	3,120
General Expenses	210
Rates and Insurance	270
Returns Inwards and Outwards	1,500	1,000
Bad Debts	100
	34,750	34,750

Prepare the trading account and the profit and loss account for the year ended 31-3-2023, together with the balance sheet as on that date.

Stock on 31-3-2023 valued at ₹ 5,690.

Answer 1

In the Books of Mr. Harinath
Dr.	Trading and Profit and Loss A/c for the year ended 28th Feb, 2023				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Opening Stock	-	3,120	By Sales	16,620	15,120
To Purchases	10,270	9,270	Less: Returns	(1,500)
Less: Returns	(1,000)		By Closing Stock	-	5,690
To Wages & Salaries	-	1,880
To Gross Profit	-	6,540
		20,810			20,810
To Discount	-	340	By Gross Profit	-	6,540
To General Expenses	-	210	By Discount Received	-	210
To Rates and Insurance	-	270
To Bad debts	-	100
To Net Profit	-	5,830
		6,750			6,750

 

Balance Sheet as on 28th Feb, 2023
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	9,790	13,520	Factory Premises	5,500
Add: Net Profit	5,830		Cash	240
	15,620		Furniture	1,000
Less: Drawings	(2,100)		Debtors	8,220
Creditors	-	6,470	Closing Stock	5,690
Bank Loan	-	660
		20,650		20,650