Question

The following trial balance was extracted from the books of Arun Traders as of 31^st March 2018.

Particulars	Debit	Credit
Buildings	17,500
Plant and machinery	12,000
Cash purchases	30,000
Credit purchases	8,500
Sales		63,250
Bills receivable	6,750
Coal and water	1,625
Office expenses	5,250
Rent received		1,750
Carriage outwards	2,875
Repairs and maintenance	500
Wages	9,250
Debtors and creditors	9,000	8,500
Cash	2,000
Capital		44,750
Opening stock	13,000
	1,18,250	1,18,250

Prepare trading and profit and loss account for the year ending 31st March, 2018 and balance sheet as on that date after considering the following:

1. Depreciate Plant and machinery @ 20%
2. Wages outstanding amounts to ₹ 750.
3. Half of the repairs and maintenance paid is for the next year.
4. Closing stock was valued at ₹ 15,000.

Answer 1

Trading and Profit & Loss A/c of
Arun Traders for the year ended 31.03.2018

Dr.					Cr.
Particulars		₹	₹	Particulars	₹
To Opening stock			13,000	By Sales	63,250
To Cash purchase			30,000	By Closing stock	15,000
To Credit purchase			8,500
To Coal and water			1,625
To Wages		9,250	10,000
Add: Outstanding wages		750
To Gross profit c/d			15,125
			78,250		78,250
To Office expenses			5,250	By Gross profit b/d	15,125
To Carriage outwards			2,875	By Rent received	1,750
To Repairs and maintenance		500	250
Less: Prepaid outstanding		250
To Depreciation on plant and machinery			2,400
To Net profit c/d			6,100
			16,875		16,875

Balance Sheet of Arun Traders
as on 31.03.2018

Liabilities	₹	₹	Assets	₹	₹
Capital	44,750	50,850	Building		17,500
Add: Net profit	6,100		Plant And Machinery	12,000	9,600
Creditors		8,500	Less: Depreciation @ 20%	2,400
Wages outstanding		750	Bills receivable		6,750
			Debtors		9,000
			Cash		2,000
			Repairs and maintenance prepaid		250
			Closing stock		15,000
		60,100			60,100