Question

Prepare trading and profit and loss account from the following particulars of M/s Neema Traders as on March 31, 2017.

Account Title	Debit Amount (₹)	Account Title	Credit Amount (₹)
Buildings	23,000	Sales	1,80,000
Plant	16,930	Loan	8,000
Carriage inwards	1,000	Bills payable	2,520
Wages	3,300	Bank overdraft	4,720
Purchases	1,64,000	Creditors	8,000
Sales return	1,820	Capital	2,36,000
Opening stock	9,000	Purchases return	1,910
Machinery	2,10,940
Insurance	1,610
Interest	1,100
Bad debts	250
Postage	300
Discount	1,000
Salaries	3,000
Debtors	3,900

Stock on March 31, 2017 ₹ 16,000.

Answer 1

Dr.	Trading Account as on March 31, 2017				Cr.
Liabilities	Amount (₹)	Amount (₹)	Assets		Amount (₹)
Opening Stock		9,000	Sales	1,80,000	1,78,180
Purchases	1,64,000	1,62,090	Less: Sales Return	(1,820)
Less: Purchases Return	1,910		Closing Stock		16,000
Carriage Inwards		1,000
Wages		3,300
Profit and Loss (Gross Profit)		18,790
		1,94,180			1,94,180

 

Dr.	Profit and Loss Account as on March 31, 2017		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Insurance	1,610	Trading (Gross Profit)	18,790
Interest	1,100
Bad Debts	250
Postage	300
Discount	1,000
Salaries	3,000
Net Profit	11,530
	18,790		18,790

 

Balance Sheet as on March 31, 2017
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	2,36,000	2,47,530	Building	23,000
Add: Net Profit	11,530		Plant	16,930
Loan		8,000	Machinery	2,10,940
Creditors		8,000	Debtors	3,900
Bills Payable		2,520	Closing Stock	16,000
Bank Overdraft		4,720
		2,70,770		2,70,770