Question

Prepare trading and profit and loss account of M/s Sports Equipments for the year ended March 31, 2017 and balance sheet as on that date:

Account Title	Debit Amount ₹	Credit Amount ₹
Opening stock	50,000
Purchases and sales	3,50,000	4,21,000
Sales returns	5,000
Capital		3,00,000
Commission		4,000
Creditors		1,00,000
Bank overdraft		28,000
Cash in hand	32,000
Furniture	1,28,000
Debtors	1,40,000
Plants	60,000
Carriage on purchases	12,000
Wages	8,000
Rent	15,000
Bad debts	7,000
Drawings	24,000
Stationery	6,000
Travelling expenses	2,000
Insurance	7,000
Discount	5,000
Office expenses	2,000

Closing stock as on March 31, 2017 ₹ 2,500

Answer 1

Dr.	Trading Account as on March 31, 2017		Cr.
Particulars	Amount ₹	Particulars	Amount ₹
Opening Stock	50,000	Sales 4,21,000
Purchases	3,50,000	Less: Sales Return 5,000	4,16,000
Carriage on Purchases	12,000	Closing Stock	2,500
Wages	8,000	Profit and Loss (Gross Loss)	1,500
	4,20,000		4,20,000

 

Dr.	Profit and Loss Account as on March 31, 2017		Cr.
Particulars	Amount ₹	Particulars	Amount ₹
Trading (Gross Loss)	1,500	Commission	4,000
Rent	15,000	Net Loss	41,500
Bad Debts	7,000
Stationery	6,000
Travelling Expenses	2,000
Insurance	7,000
Discount	5,000
Office Expenses	2,000
	45,500		45,500

 

Balance Sheet as on March 31, 2017
Liabilities		Amount ₹	Assets	Amount ₹
Capital	3,00,000		Plants	60,000
Less: Net Loss	(41,500)		Furniture	1,28,000
Less: Drawings	(24,000)	2,34,500	Debtors	1,40,000
Creditors		1,00,000	Closing Stock	2,500
Bank Overdraft		28,000	Cash in Hand	32,000
		3,62,500		3,62,500