Question

From the following trial balance of Shri Rai Bahadur, prepare Trading, Profit and Loss Account for the year ending 31st March, 2018 and a Balance Sheet as on that date: 

TRIAL BALANCE
Debit Balance	(₹)	Credit Balance	(₹)
Drawings	4,240	Capital	32,000
Purchase less returns	15,610	Sales less Returns	34,176
Rates and Taxes	388	Sundry Creditors	4,422
Salaries	1,612
Lighting and Heating	164
Electric Power	384
Commission	414
Insurance	206
Advertising	214
Bad Debts	62
Postage, Telegrams, etc.	826
Carriage	754
Opening Stock	6,160
Wages	7,962
Land and Building	15,840
Plant and Machinery	4,034
Furniture and Fittings	378
Sundry Debtors	6,082
Cash at Bank	5,268
	70,598		70,598

The closing stock on 31st March was valued at ₹ 8,760.

Answer 1

In the Books of Mr. Shri Rai Bahadur
Dr	Trading, Profit and loss A/c for the year ending 31st March, 2018		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Opening Stock	6,160	By Closing Stock	8,760
To Carriage	754	By Sales	34,176
To Wages	7,962
To Purchase	15,610
To Gross Profit c/d	12,450
	42,936		42,936
To Rates and Taxes	388	By Gross Profit b/d	12,450
To Salaries	1,612
To Lighting & Heating	164
To Electric Power	384
To Commission	414
To Insurance	206
To Advertising	214
To Bad Debts	62
To Postage and Telegram	826
To Net Profit c/d	8,180
	12,450		12,450

 

Balance Sheet as on 31st March, 2018
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
To Capital	32,000	35,940	Land and Building	15,840
Less: Drawing	(4,240)		Plant and Machinery	4,034
	27,760		Furniture and Fittings	378
Add: N/P	8,180		Cash at Bank	5,268
To Creditors	-	4,422	Closing Stock	8,760
			Debtors	6,082
		40,362		40,362