Question

From the following Trial Balance of Rinky, prepare a Trading Account and a Profit & Loss Account for the year ended 31.12.2018 and a Balance Sheet on that date.

TRIAL BALANCE
	Dr. (₹)		Cr. (₹)
Building	20,000	Capital Account	25,000
Depreciation on above	1,000	Provision for Depreciation on Machinery on 1.1.2018	800
Machinery	6,800	Creditors	12,000
Furniture	2,000	Bank Loan	6,000
Drawings	1,500	Sales	53,000
Debtors	8,000	Outstanding Carriage Inward	200
Cash	1,600
Opening Stock	5,000
Purchase	31,000
Wages	3,000
Carriage Inwards	400
Salary	4,000
Prepaid Salary	1,000
Advertisement	300
Insurance	3,500
Packing Materials	7,900
	97,000		97,000

Closing Stock ₹ 15,000.

Answer 1

In the Books of Ms. Rinky
Dr.	Trading and.Profit and loss A/c for the year ended 31.03.2018		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Opening Stock	5,000	By Sales Cash	53,000
To Purchases	31,000	By Closing Stock	15,000
To Wages	3,000
To Carriage Inwards	400
To Gross Profit	28,600
	68,000		68,000
To Depreciation	1,000	By Gross Profit	28,600
To Salary	4,000
To Advertisement	300
To Insurance	3,500
To Packing Materials	7,900
To Net Profit	11,900
	1,33,100		1,33,100

 

Balance Sheet as on 31.03.2018
Liabilities	Amount (₹)	Amount (₹)	Assets		Amount (₹)
Capital	25,000	35,400	Machinery	6,800	6,000
Add: Net Profit	11,900		Less: Provision for Depreciation	(800)
Less: Drawings	(1,500)		Building		20,000
Sundry Creditors		12,000	Sundry Debtors		8,000
Bank Overdraft		6,000	Furniture		2,000
Outstanding Carriage Inward		200	Cash		1,600
			Closing Stock		15,000
			Prepaid Salary		1,000
	53,600				53,600