Question

Prepare trading and profit and loss account and balance sheet in the books of Deri, a trader, from the following balances as of March 31, 2018.

Particulars	₹	Particulars	₹
Stock	10,000	Sales	1,22,500
Cash	2,500	Creditors	5,000
Bank	5,000	Bills payable	2,000
Freight inwards	750	Capital	52,000
Purchases	95,000
Drawings	4,500
Wages	27,500
Machinery	50,000
Debtors	13,500
Postage (office)	150
Sundry expenses	850
Rent paid	2,500
Furniture	17,250
	2,29,500		2,29,500

Closing stock (31st March, 2018) ₹ 8,000.

Answer 1

Trading and Profit & Loss a/c of
Deri for the year
ended 31^st March 2018

Dr.				Cr.
Particulars		₹	Particulars	₹
To Opening stock		10,000	By Sales	1,22,500
To Purchases		95,000	By Closing stock	8,000
To Wages		27,500	By Gross loss c/d	2,750
To Freight inwards		750
		1,33,250		1,33,250
To Gross loss b/d		2,750	By Net loss c/d	6,250
To Postage (office)		150
To Sundry expenses		850
To Rent		2,500
		6,250		6,250

Balance Sheet of Deri 
as of 31^st March 2018

Liabilities	₹	₹	Assets	₹
Capital	1,00,000	54,400	Cash	2,500
Less: Net Loss	6,250		Bank	5,000
	93,750		Machinery	50,000
Less: Drawings	4,500		Debtors	13,500
Creditors		5,000	Furniture	17,250
Bills Payable		2,000	Closing stock	8,000
		96,250		96,250