Question

From the following details, prepare a profit and loss account.

Particulars	₹	Particulars	₹
Gross profit	50,000	Interest received	2,000
Office rent	10,000	Discount received	3,000
Depreciation on office assets	8,000	Carriage outwards	2,500
Discount allowed	12,000	Insurance on office building	3,500
Advertisement	4,000	General expenses	3,000
Audit fees	1,000	Freight inwards	1,000

Answer 1

Profit and loss account

Particulars	₹	Particulars	₹
To Office rent	10,000	By Gross profit b/d	50,000
To Depreciation on office assets	8,000	By Interest received	2,000
To Discount allowed	12,000	By Discount received	3,000
To Advertisement	4,000
To Audit fees	1,000
To Carriage outwards	2,500
To Insurance on office building	3,500
To General expenses	3,000
To Net profit c/d	11,000
	55,000		55,000