Question

From the following information, prepare profit and loss account for the year ending 31st December, 2016.

Particulars	₹	Particulars	₹
Gross loss	60,000	Printing and stationery (office)	2,000
Promotional expenses	5,000	Legal charges	5,000
Distribution expenses	15,000	Bad debts	1,000
Commission paid	7,000	Depreciation	2,000
Interest on loan paid	5,000	Rent received	4,000
Packing charges (on sales)	4,000	Loss by fire not covered by insurance	3,000
Dividend received	3,000

Answer 1

Particulars	₹	Particulars	₹
To Gross loss b/d	60,000	By Dividend received	3,000
To Promotional expenses	5,000	By Rent received	4,000
To Distribution expenses	15,000
To Commission paid	7,000
To Interest on loan	5,000	By Net loss c/d	1,02,000
To Packing charges	4,000
To Legal charges	5,000
To Printing and stationery (office)	2,000
To Bad debts	1,000
To Depreciation	2,000
To Loss by fire	3,000
	1,09,000		1,09,000