Question

Following is the trial balance of J Subramanium on 31st March, 2016. Prepare the trading and profit and loss account for the year ended 31st March, 2016.

Trial Balance
as on 31st March, 2016
$\begin{array}{ccc}\text{Name of Account}& \text{Debit (Rs.)}& \text{Credit (Rs.)}\\ \text{Capital A/c}& & 30,000\\ \text{Stock A/C (1st April, 2015)}& 6,000& \\ \text{Cash at Bank}& 3,000& \\ \text{Cash in Hand}& 1,320& \\ \text{Machinery A/c}& 18,000& \\ \text{Furniture and Fittings A/c}& 4,080& \\ \text{Purchases A/c}& 45,000& \\ \text{Wages A/c}& 30,000& \\ \text{Fuel and Power A/c}& 9,000& \\ \text{Factory Lighting A/c}& 600& \\ \text{Salaries A/c}& 21,000& \\ \text{Discount Allowed A/c}& 1,500& \\ \text{Discount Received A/c}& & 900\\ \text{Advertising A/c}& 15,000& \\ \text{Sundry Office Expenses A/c}& 12,000& \\ \text{Sales A/c}& & 1,50,000\\ \text{Sundry Debtors}& 25,500& \\ \text{Sundry Creditors}& & 11,100\\ & \overline{\underset{–}{\underset{–}{1,92,000}}}& \overline{\underset{–}{\underset{–}{1,92,000}}}\end{array}$

Closing stock was valued at Rs. 8,100

Answer 1

Trading and Profit and Loss Account
$\begin{array}{cccccccc}\text{Dr.}& & & & \text{for the year ended 31st March, 2016}& & & \text{Cr.}\end{array}$
$\begin{array}{cccc}\text{Particulars}& \text{Amt (Rs.)}& \text{Particulars}& \text{Amt (Rs.)}\\ \text{Stock}& 6,000& \text{Sales}& 1,50,000\\ \text{Purchases}& 45,000& \text{Closing Stock}& 8,100\\ \text{Wages}& 30,000& & \\ \text{Fuel and Power}& 9,000& & \\ \text{Factory Lighting}& 600& & \\ \text{Gross Profit c/d}& \underset{–}{67,500}& & \\ & \underset{–}{\underset{–}{1,58,100}}& & \overline{\underset{–}{\underset{–}{1,58,100}}}\\ \text{Salaries}& 21,000& \text{Gross Profit b/d}& 67,500\\ \text{Discount Allowed}& 1,500& \text{Discount Received}& 900\\ \text{Advertising}& 15,000& & \\ \text{Sundry Office Expenses}& 12,000& & \\ \text{Net Profit c/d}& 18,900& & \\ & \overline{\underset{–}{\underset{–}{68,400}}}& & \overline{\underset{–}{\underset{–}{68,400}}}\end{array}$