Question

Given below is the Trial Balance of M/S. Raj & Co Ltd. as on 31st March, 2024. Prepare a Trading and a Profit and Loss account for the year ending 31st March, 2024 and a Balance Sheet as on 31st March, 2024.

Trial Balance of M/S. Raj & Co Ltd. as on 31st March, 2024
Particulars	Amount (₹)	Particulars	Amount (₹)
Opening stock	5,000	Capital	25,000
Purchases	30,000	Purchase return	1,000
Cash in hand	2,000	Sundry creditors	7,000
Wages	1,500	Sales	83,000
Sales return	250	Rent received	2,000
Drawings	1,000
Trade expenses	7,000
Salaries	4,000
Insurance	500
Discount allowed	750
Furniture	55,000
Debtors	5,000
Cash at bank	3,000
Advertising expenses	3,000
Total	1,18,000	Total	1,18,000

Closing stock was valued at ₹ 9,000.

Answer 1

In the Books of M/s Raj & Co. Ltd.
Dr.	Trading and Profit and Loss A/c For the year ended 31.12.2024				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Opening Stock	-	5,000	By Sales	83,000
To Purchases	30,000		Less: Sales Returns	(250)	82,750
Less: Purchase Returns	(1,000)	29,000	By Closing Stock	-	9,000
To Wages	-	1,500
To Gross Profit c/d	-	56,250
		91,750			91,750
To Salaries	-	4,000	By Gross Profit b/d	-	56,250
To Discount Allowed	-	750	By Rent Received	-	2,000
To Insurance	-	500
To Advertisement expenses	-	3,000
To Trade Expenses	-	7,000
To Net Profit	-	43,000
		58,250			58,250

 

Balance Sheet as on 31.12.2024
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	25,000	67,000	Furniture	55,000
Add: Net Profit	43,000		Debtors	5,000
Less: Drawings	(1,000)		Cash in Hand	2,000
Sundry Creditors	-	7,000	Cash at Bank	3,000
			Closing Stock	9,000
		74,000		74,000