Advertisements
Advertisements
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
Advertisements
Solution
| 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 | |||
APPEARS IN
RELATED QUESTIONS
Give a word, term, or phrase which can substitute the following statement:
Expenses paid before it is due.
Find the odd one :
Correct and Rewrite the following statements:
When the credit side of the Profit and Loss Account is greater than the debit side, it is called Net Loss.
Prepare Profit and Loss Account of Sanjay Brothers for the year ended 31st March, 2018 from the following balances.
| 1) | Bank charges | ₹ 22,000 |
| 2) | Interest (Cr.) | ₹ 16,000 |
| 3) | Sundry expenses | ₹ 42,000 |
| 4) | Insurance | ₹ 35,000 |
| 5) | Salaries | ₹ 40,000 |
| 6) | Rates and Taxes | ₹ 13,000 |
| 7) | Postage | ₹ 8,000 |
| 8) | Advertisement | ₹ 40,000 |
| 9) | Rent paid | ₹ 32,000 |
| 10) | Bad debts | ₹ 10,000 |
| 11) | Commission (Cr) | ₹ 17,500 |
| 12) | Printing & Stationery | ₹ 21,000 |
| 13) | Loss by fire | ₹ 18,000 |
| 14) | Discount (Dr) | ₹ 23,000 |
| 15) | Discount (Cr) | ₹ 37,000 |
| 16) | Misc. Income | ₹ 14,000 |
| 17) | Depreciation | ₹ 34,000 |
| 18) | Carriage Outwards | ₹ 60,000 |
| 19) | Godown Expenses | ₹ 40,000 |
Note: Gross Profit ₹ 407500
Distinguish between a Trading Account and a Profit and Loss Account.
Give a word, term or phrase which can substitute the following statement:
Account prepared to know Net Profit or Net Loss.
Where is gross profit or gross loss from the Trading Account recorded in the Profit and Loss Account?
What principle is followed by recording indirect expenses and incomes in the Profit and Loss Account?
Which of the following is added to bad debts while preparing the Profit and Loss Account?
What happens to net loss as per the Profit and Loss Account in final accounts?
