Question

From the following balances of M/s Nilu Sarees as on March 31, 2017. Prepare trading and profit and loss account and balance sheet as on date.

Account Title	Debit Amount ₹	Account Title	Credit Amount ₹
Opening stock	10,000	Sales	2,28,000
Purchases	78,000	Capital	70,000
Carriage inwards	2,500	Interest	7,000
Salaries	30,000	Commission	8,000
Commission	10,000	Creditors	28,000
Wages	11,000	Bills payable	2,370
Rent and taxes	2,800
Repairs	5,000
Telephone expenses	1,400
Legal charges	1,500
Sundry expenses	2,500
cash in hand	12,000
Debtors	30,000
Machinery	60,000
Investments	90,000
Drawings	18,000

Closing stock, as on March 31, 2017 ₹ 22,000.

Answer 1

Dr.	Trading Account of M/s Nilu Sarees as on March 31, 2017		Cr.
Particulars	Amount ₹	Particulars	Amount ₹
Opening Stock	10,000	Sales	2,28,000
Purchases	78,000	Closing Stock	22,000
Carriage Inwards	2,500
Wages	11,000
Profit and Loss (Gross Profit)	1,48,500
	2,50,000		2,50,000

 

Dr.	Profit and Loss Account as on March 31, 2017		Cr.
Particulars	Amount ₹	Particulars	Amount ₹
Salaries	30,000	Trading (Gross Profit)	1,48,500
Commission	10,000	Interest	7,000
Rent and Taxes	2,800	Commission	8,000
Repairs	5,000
Telephone Expenses	1,400
Legal Charges	1,500
Sundry Expenses	2,500
Net Profit	1,10,300
	1,63,500		1,63,500

 

Balance Sheet as on March 31, 2017
Liabilities	Amount ₹	Assets	Amount ₹
Capital 70,000		Machinery	60,000
Add: Net Profit 1,10,300		Investments	90,000
1,80,300		Debtors	30,000
Less: Drawings (18,000)	1,62,300	Closing Stock	22,000
Creditors	28,000	Cash in Hand	12,000
Bills Payable	2,370
Suspense	21,330
	2,14,000		2,14,000