Question

The following is the trial balance of Mr. Deepak as on March 31, 2017. You are required to prepare trading account, profit and loss account and a balance sheet as on date:

Account title	Debit Amount ₹	Account title	Credit Amount ₹
Drawings	36,000	Capital	2,50,000
Insurance	3,000	Bills payable	3,600
General expenses	29,000	Creditors	50,000
Rent and taxes	14,400	Discount received	10,400
Lighting (factory)	2,800	Purchases return	8,000
Travelling expenses	7,400	Sales	4,40,000
Cash in hand	12,600
Bills receivable	5,000
Sundry debtors	1,04,000
Furniture	16,000
Plant and Machinery	1,80,000
Opening stock	40,000
Purchases	1,60,000
Sales return	6,000
Carriage inwards	7,200
Carriage outwards	1,600
Wages	84,000
Salaries	53,000

Closing stock ₹ 35,000.

Answer 1

Dr.	Trading Account as on March 31, 2017			Cr.
Particulars	Amount ₹	Particulars		Amount ₹
Opening Stock	40,000	Sales	4,40,000
Purchases 1,60,000		Less: Sales Return	6,000	4,34,000
Less: Purchases Return (8,000)	1,52,000	Closing Stock		35,000
Lighting (Factory)	2,800
Carriage Inwards	7,200
Wages	84,000
Profit and Loss (Gross Profit)	1,83,000
	4,69,000			4,69,000

 

Dr.	Profit and Loss Account as on March 31, 2017		Cr.
Particulars	Amount ₹	Particulars	Amount ₹
Insurance	3,000	Trading (Gross Profit)	1,83,000
General Expenses	29,000	Discount Received	10,400
Rent and Taxes	14,400
Travelling Expenses	7,400
Carriage Outwards	1,600
Salaries	53,000
Net Profit	85,000
	1,93,400		1,93,400

 

Balance Sheet as on March 31, 2017
Liabilities		Amount ₹	Assets	Amount ₹
Capital	2,50,000		Plant and Machinery	1,80,000
Add: Net Profit	85,000		Furniture	16,000
	3,35,000		Sundry Debtors	1,04,000
Less: Drawings	(36,000)	2,99,000	Closing Stock	35,000
			Bills Receivable	5,000
Creditors		50,000	Cash in Hand	12,600
Bills Payable		3,600
		3,52,600		3,52,600