Question

From the following balances of M/s Jyoti Exports, prepare trading and profit and loss account for the year ended March 31, 2017 and balance sheet as on this date.

Account Title	Debit Amount Rs	Account Title	Credit Amount Rs
Sundry debtors	9,600	Sundry creditors	2,500
Opening stock	22,800	Sales	72,670
Purchases	34,800	Purchases returns	2,430
Carriage inwards	450	Bills payable	15,600
Wages	1,770	Capital	42,000
Office rent	820
Insurance	1,440
Factory rent	390
Cleaning charges	940
Salary	1,590
Building	24,000
Plant and Machinery	3,600
Cash in hand	2,160
Gas and Water	240
Octroi	60
Furniture	20,540
Patents	10,000
	1,35,200		1,35,200

Closing stock Rs 10,000.
1. To provision for doubtful debts is to be maintained at 5 per cent on sundry debtors.
2. Wages amounting to Rs 500 and salary amounting to Rs 350 are outstanding.
3. Factory rent prepaid Rs 100.
4. Depreciation charged on Plant and Machinery @ 5% and Building @ 10%.
5. Outstanding insurance Rs 100.

Answer 1

Trading Account
Dr.						Cr.
Particulars				Amount Rs	Particulars	Amount Rs
Opening Stock				22,800	Sales	72,670
Purchases			34,800		Closing Stock	10,000
	Less: Purchases Return		2,430	32,370
Carriage Inwards				450
Wages			1,770
	Add: Outstanding Wages		500	2,270
Factory Rent			390
	Less: Prepaid Rent		100	290
Gas and Water				240
Octroi				60
Cleaning Charges				940
Gross Profit				23,250
				82,670		82,670

 

 

Profit and Loss Account
Dr.					Cr.
Particulars			Amount Rs	Particulars	Amount Rs
Office Rent			820	Gross Profit	23,250
Insurance		1,440
	Add: Outstanding Insurance	100	1,540
Depreciation on Plant and Machinery			180
Salary		1,590
	Add: Outstanding Salary	350	1,940
Provision for Doubtful Debts			480
Depreciation on Building			2,400
Net Profit			15,890
			23,250		23,250

 

Balance Sheet
Liabilities		Amount Rs	Assets		Amount Rs
Capital	42,000		Sundry Debtors	9,600
Add: Net Profit	15,890	57,890	Less: New Provision	480	9,120
Sundry Creditors		2,500	Building	24,000
Bills Payable		15,600	Less: Depreciation	2,400	21,600
Outstanding Salary		350	Plant and Machinery	3,600
Outstanding Wages		500	Less: Depreciation	180	3,420
Outstanding Insurance		100	Cash in Hand		2,160
			Furniture		20,540
			Patents		10,000
			Closing Stock		10,000
			Prepaid Factory Rent		100
		76,940			76,940

Note: 

As per solution Net Profit is Rs 15,890 and Total of the Balance Sheet is Rs 76,940.

However, NCERT shows Net Profit Rs 15,895 and Total of the Balance Sheet Rs 76,945.