Question

Following is the Trial Balance of M/s Tejas Traders Pune, you are required to Prepare Trading, Profit & Loss Account for the year ending 31st March, 2009 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2009
Particulars		Amount Rs	Particulars	Amount Rs
Carriage Opening Stock Loose tools Salaries Wages Printing and stationery Discount Omission Power and fuel Vehicle Bad debts Building Debtors Goodwill Cash at Bank Machinery Investment Purchases Drawings		2,000 31,000 2,000 2,100 1,000 2,000 500 1,000 4,500 28,000 1,900 35,000 20,000 2,000 10,800 10,000 12,000 61,000 5,000	Capital Sales Interest Bills payable Commission R.D.D. Creditors Outstanding salary	80,000 1,18,000 2,200 5,000 3,000 800 22,000 800
Total		2,31,800	Total	2,31,800

Adjustment:

1) Stock on 31st March, 2009 was valued at Rs 40,000.

2) Provided depreciation at 10% p.a. on Building and Vehicle

3) Interest Outstanding on investment Rs 800.

4) Provide 5% R.D.D. on debtors.

5) Goods of Rs 2,500 were distributed as free sample.

Answer 1

Financial Statements of M/s Tejas Traders
Trading Account for the year ended 31st March, 2009
Dr.	Cr.
Particulars			Amount (Rs)	Particulars	Amount (Rs)
Opening Stock			31,000	Sales	1,18,000
Purchases		61,000		Closing Stock	40,000
Less: Advertisement		(2,500)	58,500
Carriage			2,000
Wages			1,000
Power & Fuel			4,500
Gross Profit (Balancing Figure)			61,000
			1,58,000		1,58,000

Profit and Loss Account for the year ended March 31, 2009
Dr.	Cr.
Particulars			Amount (Rs)	Particulars		Amount (Rs)
Commission			1,000	Gross Profit		61,000
Discount			500	Interest	2,200
Salaries			2,100	Add: Outstanding	800	3,000
Bad Debts		1,900		Commission		3,000
Add: New R.D.D		1,000
Less: Old R.D.D		(800)	2,100
Printing & Stationery			2,000
Advertisement			2,500
Depreciation on:
Vehicle		2,800
Building		3,500	6,300
Net Profit (Balancing Figure)			50,500
			67,000			67,000

Balance Sheet as on March 31, 2009
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	80,000		Fixed Assets
Less:Drawings	(5,000)		Vehicle	28,000
Add: Net Profit	50,500	1,25,500	Less:Depreciation @ 10%	(2,800)	25,200
			Building	35,000
Current Liabilities			Less:Depreciation @ 10%	3,500	(31,500)
Outstanding Salary		800	Loose Tools		2,000
Creditors		22,000	Investment		12,000
Bills Payable		5,000	Machinery		10,000
			Goodwill		2,000
			Current Assets
			Closing Stock		40,000
			Debtors	20,000
			Less:R.D.D	(1,000)	19,000
			Cash at Bank		10,800
			Accrued Interest		800
		1,53,300			1,53,300