Question

Following Trial Balance is extracted from the books of a merchant on 31st March, 2018:

	₹		₹
Debit Balances:		Debit Balances (Contd.):
Furniture and Fittings	6,400	Insurance	12,500
Motor Vehicles	62,500	General Charges	7,820
Building	75,900	Salaries	33,000
Bad Debts	1,250	Credit Balances:
Sundry Debtors	38,000	Capital	1,28,900
Stock on 1st April, 2017	34,600	Bills Payable	2,000
Purchases	55,750	Sundry Creditors	25,000
Sales Return	2,000	Sales	1,54,500
Advertising	4,500	Bank Overdraft	28,500
Interest	1,180	Purchases Return	1,250
Cash in Hand	6,500	Commission	1,750

Stock in Hand on 31st March, 2018 was valued at ₹ 32,500.
From the above, prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date.

Answer 1

Trading Account for the year ended March 31, 2018
Dr.							Cr.
Particulars			Amount (Rs)	Particulars		Amount (Rs)
Opening Stock			34,600	Sales	1,54,500
Purchases		55,750		Less: Sales Return	(2,000)	1,52,500
Less: Purchases Return		(1,250)	54,500	Closing Stock		32,500
Gross Profit (Balancing Figure)			95,900
			1,85,000			1,85,000

Profit And Loss Account for the year ended March 31, 2018
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Taxes and Insurance		12,500	Gross Profit	95,900
General Charges		7,820	Commission	1,750
Salaries		33,000
Bad Debts		1,250
Advertising		4,500
Interest		1,180
Net Profit (Balancing Figure)		37,400
		97,650		97,650

Balance Sheet as on March 31, 2018
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Capital	1,28,900		Fixed Assets
Add: Net Profit	37,400	1,66,300	Building	75,900
Current Liabilities			Furniture and Fittings	6,400
Sundry Creditors		25,000	Motor Vehicles	62,500
Bank Overdraft		28,500	Current Assets
Bills Payable		2,000	Closing Stock	32,500
			Sundry Debtors	38,000
			Cash in Hand	6,500
		2,21,800		2,21,800