Question

Given below is the Trial Balance of M/s. Krishna & Sons Pvt. Ltd. as on 31st March, 2023. Prepare a Trading and  Profit and Loss account for the year ending 31st March, 2023 and a Balance Sheet as on the same date.

Trial Balance of M/s. Krishna & Sons Pvt Ltd. as on 31st March 2023.

Particulars	Dr.	Cr.
Capital	-	50,000
Drawings	1,000	-
Debtors and Creditors	25,000	15,000
Loan	-	20,000
Discounts	4,750	300
Purchases and Sales	90,000	1,72,000
Land and Buildings	88,000	-
Salaries	33,000	-
Cash in hand	2,700	-
Stock as on 01-04-2022	28,000	-
Commission Received	-	18,550
Sales Return and Purchase Return	750	550
Carriage inward	1,200	-
Bills receivable and Bills payable	7,500	5,500
Total	2,81,900	2,81,900

Closing Stock was valued at ₹ 25,000

Answer 1

M/s. Krishna & Sons Pvt Ltd.
Dr.	Trading and Profit & Loss Account for the year ending on 31st March, 2023				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Opening Stock A/c (Stock as on 1-4-2022)		28,000	By Sales A/c	1,72,000	1,71,250
To Purchases A/c	90,000	89,450	Less: Sales Return A/c	(750)
Less: Purchase Returns	(550)		By Closing Stock A/c		25,000
To Carriage Inwards		1,200
To Gross Profit (transferred to P&L A/c)		77,600
		1,96,250			1,96,250
To Discount allowed A/c		4,750	By Gross Profit (transferred from trading A/c)		77,600
To Salaries		33,000	By Discount Received A/c		300
To Net profit (Balancing figure)		58,700	By Commission Received A/c		18,550
		96,450			96,450

 

Balance Sheet as on 31st March 2023
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Bills payable		5,500	Cash in hand	2,700
Creditors		15,000	Closing stock	25,000
Loan		20,000	Bills receivables	7,500
Capital	50,000	1,07,700	Debtors	25,000
Less: Drawings	(1,000)		Land and Buildings	88,000
Add: Net Profit	58,700
		1,48,200		1,48,200