Question

The following Trial Balance was extracted from the books of Mr. Joseph as on 31^st March, 2024. You are required to prepare the Trading Account and the Profit and Loss Account for the year ended 31^st March, 2024. Also, prepare a Balance Sheet as on 31^st March, 2024.

Particulars	Amount (Dr.) Rs.	Amount (Cr.) Rs.
Capital	-	5,00,000
Drawings	7,500	-
Opening Stock	20,000	-
Purchases and Sales	90,000	2,00,000
Insurance	6,000	-
Carriage Inward	1,500	-
Carriage Outward	3,000	-
Commission	-	8,000
Bad Debts	400	-
Wages	9,500	-
Rent	6,000	-
Bills Receivable and Bills Payable	12,000	90,000
Cash in Hand	2,100	-
Motor Car	9,80,000	-
Investments	1,60,000	-
Bank Overdraft	-	3,00,000
Creditors	-	2,00,000
Total	12,98,000	12,98,000

Closing Stock was valued at 20,000 on 31^st March, 2024.

Answer 1

Dr.	In the books of Mr. Joseph Trading and Profit & Loss Account for the year ending on 31st March, 2024		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Opening Stock	20,000	By Sales A/с	2,00,000
To Purchases	90,000	By Closing Stock	20,000
To Carriage Inwards	1,500
To Wages	9,500
To Gross Profit c/d	99,000
To Profit and Loss A/c
To Insurance	6,000	By Gross Profit b/d	99,000
Carriage Outward	3,000	By Commission	8,000
To Bad Debts	400
To Rent	6,000
To Net Profit c/d	91,600
	1,07,000		1,07,000

 

Balance Sheetas on 31st March 2024
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital	5,00,000		Motor Car		9,80,000
Add: Net Profit	91,600	5,84,100	Investments		1,60,000
Less: Drawings	(7,500)		Bills receivable		12,000
Bank Overdraft		3,00,000	Cash in Hand		2,100
Bank Payable		90,000	Closing Stock		20,000
Creditors		2,00,000
		1,74,100			1,74,100