Question

From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017.

Account Title	Debit Amount ₹	Credit Amount ₹
Stock as on April 01, 2016	16,000
Purchases and Sales	67,600	1,12,000
Returns inwards and outwards	4,600	3,200
Carriage inwards	1,400
General expenses	2,400
Bad debts	600
Discount received		1,400
Bank overdraft		10,000
Interest on bank overdraft	600
Commission received		1,800
Insurance and taxes	4,000
Scooter expenses	200
Salaries	8,800
Cash in hand	4,000
Scooter	8,000
Furniture	5,200
Building	65,000
Debtors and Creditors	6,000	16,000
Capital		50,000

Closing stock ₹ 15,000.

Answer 1

Dr.	Trading Account as on March 31, 2017			Cr.
Particulars	Amount ₹	Particulars		Amount ₹
Opening Stock	16,000	Sales	1,12,000
Purchases 67,600		Less: Sales Return Inwards	(4,600)	1,07,400
Less: Return Outwards (3,200)	64,400	Closing Stock		15,000
Carriage Inwards	1,400
Profit and Loss (Gross Profit)	40,600
	1,22,400			1,22,400

 

Dr.	Profit and Loss Account as on March 31, 2017		Cr.
Particulars	Amount ₹	Particulars	Amount ₹
General Expenses	2,400	Trading (Gross Profit)	40,600
Bad Debts	600	Discount Received	1,400
Interest on Bank Overdraft	600	Commission Received	1,800
Insurance and Taxes	4,000
Scooter Expenses	200
Salaries	8,800
Net Profit	27,200
	43,800		43,800

 

Balance Sheet as on March 31, 2017
Liabilities		Amount ₹	Assets	Amount ₹
Capital	50,000		Building	65,000
Add: Net Profit	27,200	77,200	Furniture	5,200
			Scooter	8,000
Creditors		16,000	Debtors	6,000
			Closing Stock	15,000
Bank Overdraft		10,000	Cash in Hand	4,000
		1,03,200		1,03,200