Question

Prepare a Trading, Profit and Loss account of Mr. ABC for the year ending on 31^st March, 2023 and a Balance Sheet as on 31^st March, 2023.

Particulars	Amount (Dr.) Rs.	Amount (Cr.) Rs.
Capital		80,000
Drawings	4,000
Cash at Bank	4,700
Purchase	66,000
Sales		1,15,000
Purchase Returns		3,000
Sales Returns	6,000
Discount	1,200
Carriage Outwards	1,800
Salaries	18,000
Trade expenses	3,600
Opening stock	15,000
Bad debts	1,800
Rent	4,500
Machinery	1,08,000
Furniture	18,000
Debtors	12,000
Creditors		30,000
Stationery	7,500
Commission received		900
Loan		43,200
	2,72,100	2,72,100

Closing stock on 31st March, 2023 was valued at Rs. 78,000.

Answer 1

Dr.	Trading, Profit and Loss A/c of Mr. ABC for the year ending on 31st March, 2023			Cr.
Particulars	Amount	Amount	Particulars	Amount	Amount
To Opening stock		15,000	By Sales	1,15,000	1,09,000
To Purchases	66,000	63,000	Less: sales returns	6,000
Less: purchase returns	3,000		By Closing stock		78,000
To gross Profit transferred to the Profit and Loss A/c		1,09,000
		1,87,000			1,87,000

 

Dr.	Profit and Loss A/c		Cr.
Particulars	Amount	Particulars	Amount
To Discount	1,200	By Gross Profit	1,09,000
To Carriage outward	1,800	By Commission received	900
To Salaries	18,000
To Trade expenses	3,600
To Bad debts	1,800
To Rent	4,500
To Stationery	7,500
To Net profit transferred to Balance Sheet/capital Account	71,500
	1,09,900		1,09,900

 

Balance Sheet of Mr. A.B.C as on 31st March, 2023.
Liabilities	Amount	Amount	Assets	Amount	Amount
Capital	80,000	1,47,500	Cash at bank		4,700
Less: Drawings	4,000		Machinery		1,08,000
Add: Net profit	71,500		Furniture		18,000
Creditors		30,000	Debtors		12,00
Loan		43,200	Closing stock		78,000
		2,20,700			2,20,700