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Question

Following is the Trial Balance of M/s Duppar, you are required to prepare Trading Profit & Loss Account for the year ending 31st March, 2011 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2011

Particulars

Debit

Amount

Rs

Credit

Amount

Rs

Opening Stock

40,000

Purchases and Sales

1,20,000

2,00,000

Wages

12,000

Carriage inward

2,500

Salaries

10,000

Printing and stationery

3,500

Machinery

40,000

Carriage outward

2,000

Office expenses

4,500

Land and Buildings

35,000

Furniture

10,000

Bank balance

5,500

Sundry Debtors and Creditors

20,000

18,000

Bad Debts

500

Rent and Taxes

1,500

Advertisement

1,000

Capital

70,000

Commission received

2,000

Bills Payable

5,000

10% Bank Loan (Taken on 1-10-2010)

20,000

Drawings

7,000

Total

3,15,000

3,15,000

Adjustment:

1) On 31st March 2011 Stock was valued at Rs 25,000.

2) Outstanding Salaries Rs 2,500 and Wages Rs 2,000.

3) Goods worth Rs 1,500 distributed as free sample.

4) Provide Reserve for bad debts at 5% on Sundry debtors.

5) Wages included Rs 10,000 paid for fixation of machinery on 1-4-2010

6) Depreciate Machinery at 10% p.a. and Furniture by 15% p.a.

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Solution

Financial Statement of M/s Duppar

Trading Account

for the year ended 31st March, 2011

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

40,000

Sales

2,00,000

Purchases

1,20,000

Closing Stock

25,000

Less: Free Samples

(1,500)

1,18,500

Wages

12,000

Add: Outstanding

2,000

Less: Machinery

(10,000)

4,000

Carriage

2,500

Gross Profit (Balancing Figure)

60,000

2,25,000

2,25,000

Profit and Loss Account

for the year ended March 31, 2011

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Salaries

10,000

Gross Profit

60,000

Add: Outstanding

2,500

12,500

Discount

2,000

Office Expenses

4,500

Advertisement

1,000

Add:Free Samples

1,500

2,500

Printing & Stationery

3,500

Depreciation on:

Furniture

1,500

Machinery

5,000

6,500

Carriage Outward

2,000

Bad-Debts

500

Add: R.D.D

1,000

1,500

Rent & Taxes

1,500

Interest on Loan

1,000

Net Profit (Balancing Figure)

26,500

62,000

62,000

Balance Sheet

as on March 31, 2011

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

70,000

Fixed Assets

Less:Drawings

(7,000)

Furniture

10,000

Add: Net Profit

26,500

89,500

Less:Depreciation @ 15%

(1,500)

8,500

Machinery

40,000

Current Liabilities

Add: Wages

10,000

Bills Payable

5,000

Less:Depreciation @ 10%

(5,000)

45,000

Outstanding Salary

2,500

Land & Buildings

35,000

Creditors

18,000

Outstanding Wages

2,000

Current Assets

10% Bank Loan

20,000

Closing Stock

25,000

Interest on Loan

1,000

Debtors

20,000

Less:R.D.D

(1,000)

19,000

Cash at Bank

5,500

1,38,000

1,38,000

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Similar questions

Following is the Trial Balance of M/s Shetty Traders, as on 31st March 2011 Prepare Trading Profit and Loss Account for the year ended 31st March, 2011 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2011
Particulars	Debit Amount Rs	Credit Amount Rs
Land and Buildings	50,000
Machinery	40,000
Salaries	21,000
Cash in Bank	50,000
Cash in hand	1,100
Office expenses	1,000
Motor Van	18,000
Capital		1,70,000
Carriage	5,000
Purchases and Sales	2,20,000	2,88,000
Returns	2,000	5,500
Bad debts	1,000
Sundry Debtors and Creditors	32,800	35,000
Rent	1,100
Printing and Stationery	1,500
Bills payable		32,000
R.D.D.		1,000
Travelling expenses	5,500
Opening stock	30,000
Insurance	1,500
Discount	6,000
Advertisement	14,000
Furniture	30,000
Total	5,31,500	5,31,500

Adjustment:

1) Closing stock was valued Rs 41,000.

2) Goods of Rs 5,000 withdrawn for personal use but not recorded.

3) Goods of Rs 1,000 distributed as free sample.

4) Debtors of Rs 800 were bad and Provide R.D.D. at 5% on debtors and make a provison for discount on creditors at 2%.

5) Depreciate Machinery by 10% p.a. and Building by 5% p.a.

Form the following Trial Balance of M/s Deven Traders you are require to Prepare Trading, Profit and Loss A/c for the year ending 31st March, 2011 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2011
Particulars	Amount Rs	Particulars	Amount Rs
Opening Stock Purchases Wages Investments Carriage outward Printing & stationery Insurance Salaries Postage and Telegram Machinery Furniture Debtors Bills Receivable Cash at Bank Advertisement Bad debts Carriage Inward	15,000 45,700 9,900 3,500 4,600 3,400 750 10,000 700 26,800 6,400 25,000 4,000 6,000 1,000 250 4,500	Capital Bills payable Outstanding Salary Sales Creditors Bank overdraft	60,000 11,000 1,700 79,800 12,000 3,000
Total	1,67,500	Total	1,67,500

Adjustment:

1) Closing stock was valued at Rs 61,500.

2) Unexpired insurance Rs 200.

3) Carriage inward included Rs 3,200 paid for transport on new machinery purchased on 1-4-2010.

4) Outstanding wages were Rs 1,100.

5) Depreciate Machinery by 10% and Furniture by Rs 400.

From the following Trial Balance of M/s Bhagat Traders, you are required to prepare Trading Profit & Loss Account for the year ended 31st March, 2010 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2010
Particulars	Debit Amount Rs	Credit Amount Rs
Insurance	1,000
Discount	500	400
Postage and Telegram	1,500
Salaries	28,000
Debtors and Creditors	33,000	34,000
Wages	12,000
Opening stock	20,000
Carriage	4,500
Returns	2,800	4,600
Purchase and Sales	96,600	1,50,800
10% Bank Loan (Taken on 1-10-2009)		60,000
Plant and Machinery	20,000
Buildings	80,000
Drawings	4,000
Capital		50,000
Office rent	2,000
R.D.D.		1,000
Bad debts	600
Bank Overdraft		9,200
Cash	3,500
Total	3,10,000	3,10,000

Adjustment:

1) Stock on 31st March 2010 valued Rs 32,000

2) Depreciate Plant and Machinery at 10% Building at 5% p.a.

3) Wages include Rs 2,000 paid to worker as advance.

4) Salary Rs 2,000 and Office Rent Rs 400 were outstanding.

5) Creat R.D.D. on debtors Rs 1,400.

The Trial Balance of Miss Sneha Chug was as under prepare Trading and Profit & Loss A/c for the year ended 31st March, 2010 and the Balance Sheet as on that date.

Trial Balance as on 31st March, 2010
Particulars	Amount Rs	Particulars	Amount Rs
Opening stock Wages Purchases Investments Postage Printing and Stationery Carriage outward Insurance Debtors Furniture Bad debts Carriage inward Cash in hand Machinery (Purchased) On 1-7-2009 Salaries (for 10 months) Sundry expenses Bills Receivable	30,000 9,500 52,500 10,000 1,500 2,000 1,000 3,500 35,000 5,500 1,200 1,800 5,400 32,000 15,000 2,100 8,500	Capital Bills payable 10% Bank Loan (taken on 1-10-2009) Bank Overdraft Creditors Sales R.D.D.	93,500 7,500 10,000 6,500 25,000 71,000 3,000
Total	2,16,500	Total	2,16,500

Adjustment

1) Closing stock was valued at Rs 61,500.

2) Depreciate Furniture and Machinery at 10% p.a.

3) Debtors of Rs 1,000 were bad and provide R.D.D. at 5% on debtors.

4) Wages includes Rs 8,000 paid for fixation of Machinery.

5) Stock of stationery of Rs 300 remain unused.

From the following Trial Balance of Mr. Kapil, you are required to prepare Trading Profit & Loss Account for the year ended 31st March, 2010 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2010
Particulars	Debit Amount Rs	Credit Amount Rs
Opening Stock	58,000
Wages and Salary	6,500
Carriage	2,500
Purchases and Sales	63,000	1,26,000
Bills Receivable and Bills Payable	600	1,000
Rent	3,500
R.D.D.		800
Sundry Debtors and Sundry Creditors	15,000	16,000
Returns	1,000	500
Machinery	12,000
Travelling expenses	3,000
Cash at Bank	1,000
Buildings	25,000
Office expenses	2,700
Advertisement (For 3 Years)	3,000
Drawings	2,500
Capital		30,000
Insurance	600
General Reserve		25,600
Total	1,99,900	1,99,900

Adjustment:

1) Closing stock cost Rs 25,000 Market value at Rs 30,000.

2) Prepaid insurance Rs 100.

3) Goods of Rs 3,000 taken over by Kapil for personal use.

4) Provide depreciation on Machinery by 10% and Building by 20% p.a.

5) Outstanding expenses Rent Rs 500.

6) Provide Reserve for doubtful debts at 5% on Sundry Debtors.

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Financial Statement of M/s Duppar
Trading Account for the year ended 31st March, 2011
Dr.	Cr.
Particulars			Amount (Rs)	Particulars	Amount (Rs)
Opening Stock			40,000	Sales	2,00,000
Purchases		1,20,000		Closing Stock	25,000
Less: Free Samples		(1,500)	1,18,500
Wages		12,000
Add: Outstanding		2,000
Less: Machinery		(10,000)	4,000
Carriage			2,500
Gross Profit (Balancing Figure)			60,000
			2,25,000		2,25,000

Profit and Loss Account for the year ended March 31, 2011
Dr.	Cr.
Particulars			Amount (Rs)	Particulars	Amount (Rs)
Salaries		10,000		Gross Profit	60,000
Add: Outstanding		2,500	12,500	Discount	2,000
Office Expenses			4,500
Advertisement		1,000
Add:Free Samples		1,500	2,500
Printing & Stationery			3,500
Depreciation on:
Furniture		1,500
Machinery		5,000	6,500
Carriage Outward			2,000
Bad-Debts		500
Add: R.D.D		1,000	1,500
Rent & Taxes			1,500
Interest on Loan			1,000
Net Profit (Balancing Figure)			26,500
			62,000		62,000

Balance Sheet as on March 31, 2011
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	70,000		Fixed Assets
Less:Drawings	(7,000)		Furniture	10,000
Add: Net Profit	26,500	89,500	Less:Depreciation @ 15%	(1,500)	8,500
			Machinery	40,000
Current Liabilities			Add: Wages	10,000
Bills Payable		5,000	Less:Depreciation @ 10%	(5,000)	45,000
Outstanding Salary		2,500	Land & Buildings		35,000
Creditors		18,000
Outstanding Wages		2,000	Current Assets
10% Bank Loan		20,000	Closing Stock		25,000
Interest on Loan		1,000	Debtors	20,000
			Less:R.D.D	(1,000)	19,000
			Cash at Bank		5,500
		1,38,000			1,38,000