Question

Prepare profit and loss account of Manoj for the year ending on 31^st March 2016

Particulars	₹	Particulars	₹
Gross profit	25,000	Travelling expenses	500
Salaries	5,600	Stationery	75
Insurance	200	Rent	650
Discount allowed	400	Interest on loan	225
Discount received	300	Repairs	125
Commission received	100	Office expenses	55
Advertisement	450	General expenses	875
Printing charges	375	Postage	175

Adjustments:

(a) Salary outstanding ₹ 400

(b) Rent paid in advance ₹ 50

(c) Commission receivable ₹ 100

Answer 1

Profit and Loss A/c of Manoj
for the year ended 31.03.2016

Dr.						Cr.
Particulars		₹	₹	Particulars	₹	₹
To Insurance		200		By Gross profit b/d		25,000
To Salaries		5,600	6,000	By Discount received		300
Add: Outstanding salaries		400		By Commission received	100
To Discount allowed			400	Add: Commission receivable	100	200
To Advertisement			450
To Printing charges			375
To Travelling expenses			500
To Stationery			75
To Rent		650	600
Less: Paid in advance		50
To Interest on loan			225
To Repairs			125
To Office expenses			55
To General expenses			875
To Postage			175
To Net profit c/d			15,445
			25,500			25,500