The following are the extracts from the trial balance of M - s Bhola and Sons as on March 31- 2017 1-c- Account title Debit Rs Credit Rs Opening Stock 2-00-000 Purchases 8-10-000 Sales 10-10-000 2 - 3 2 - 3 10-10-000 10-10-000 2 - 3 Only relevant items Closing Stock as on date was valued at Rs 3-00-000- You are required to record the necessary journal entries and show how the above items will appear in the trading and profit and loss account and balance sheet of M - s Bhola and Sons-

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Byju's Answer

Standard XII

Accountancy

Analysing Comparative Statement of Profit and Loss

The following...

Question

The following are the extracts from the trial balance of M/s Bhola and Sons as on March 31, 2017

Account title

Debit

Rs

Credit

Rs

Opening Stock

2,00,000

Purchases

8,10,000

Sales

10,10,000

10,10,000

10,10,000

(Only relevant items)

Closing Stock as on date was valued at Rs 3,00,000.

You are required to record the necessary journal entries and show how the above items will appear in the trading and profit and loss account and balance sheet of M/s Bhola and Sons.

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Solution

Books of M/s Bhola and Sons

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit Amount Rs

2017

Mar.31

Trading A/c

Dr.

10,10,000

To Opening Stock A/c

2,00,000

To Purchases A/c

8,10,000

(Balances from Purchases Account and Stock Account

transferred to Trading Account)

Mar.31

Sales A/c

Dr.

10,10,000

Closing Stock A/c

3,00,000

To Trading A/c

13,10,000

(Balance from sales and closing stock transferred

to Trading Account)

Mar.31

Trading A/c

Dr.

3,00,000

To Profit and Loss (Gross Profit) A/c

3,00,000

(Balance of Trading Account (gross profit) transferred

to Profit and Loss Account)

Trading Account as on March 31, 2017

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Opening Stock

2,00,000

Sales

10,10,000

Purchases

8,10,000

Closing Stock

3,00,000

Profit and Loss A/c – Gross Profit

3,00,000

13,10,000

13,10,000

Balance Sheet as on March 31, 2017

Liabilities

Amount

Rs

Assets

Amount

Rs

Closing Stock

3,00,000

Suggest Corrections

Similar questions

The following are the extracts from the trial balance of M/s Bhola and Sons as on March 31, 2011.
$\begin{matrix} Account Title & Amt. (Dr.) & Amt. (Cr) Opening Stock & 2, 00, 000 Purchase & 8, 10, 000 Sales & 10, 10, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 10, 10, 000 - --------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 10, 10, 000 - --------- - \end{matrix}$
(only relevant items)
Closing stock as on date was valued at Rs. 3,00,000.
You are required to record the necessary journal entries and show how the above items will appear in the Trading and Profit and Loss account and balance sheet of M/s Bhola and Sons.

Practical Problem

Madhuri and Minakshi are in partnership sharing profits and losses in the ratio 3:2. From the following Trial Balance and adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2012 and Balance Sheet on that date.

Trial Balance as on 31^st March, 2012
Debit Balance		Amount Rs	Credit Balance		Amount Rs
Building		4,00,000	Capital A/cs-	Madhuri	3,00,000
Plant and Machinery		1,20,000		Minakshi	2,00,000
Purchases		6,50,000	Sales		8,10,000
Carriage		7,000	Sundry Creditors		1,00,000
Opening stock		90,000	Outstanding salaries		4,200
Wages		35,000	8% Bank loan		1,00,000
Sundry Debtors		1,50,000	(Taken on 1.10.2011 )
Salaries		28,000
Postage and Telegram		4,000
Insurance		5,000
Bad debts		3,000
Rent		4,000
Discount		3,200
Drawing A/c-	Madhuri	10,000
	Minakshi	5,000
		15,14,200			15,14,200

Adjustments:

1) Stock on hand on 31st March, 2010 was valued at Rs 1,10,000.

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

3) Prepaid Insurance Rs 1,500.

4) Create R.D.D at 5% on Sundry Debtors.

5) Partners are allowed interest at 5% p.a. on their capitals.

6) Salaries include Rs 2,500 as advance to workers.

Following balances have been extracted from the trial balance of M/s Keshav Electronics Ltd. You are required to prepare the trading and profit and loss account and a balance sheet as on March 31, 2017.

Account Title	Amount Rs	Account Title	Amount Rs
Opening stock	2,26,000	Sales	6,80,000
Purchases	4,40,000	Return outwards	15,000
Drawings	75,000	Creditors	50,000
Buildings	1,00,000	Bills payable	63,700
Motor van	30,000	Interest received	20,000
Freight inwards	3,400	Capital	3,50,000
Sales return	10,000
Trade expense	3,300
Heat and Power	8,000
Salary and Wages	5,000
Legal expense	3,000
Postage and Telegram	1,000
Bad debts	6,500
Cash in hand	79,000
Cash at bank	98,000
Sundry debtors	25,000
Investments	40,000
Insurance	3,500
Machinery	22,000
	11,78,700		11,78,700

The following additional information is available :

1. Stock on December 31, 2017 was Rs 30,000.

2. Depreciation is to be charged on building at 5% and motor van at 10%.

3. Provision for doubtful debts is to be maintained at 5% on Sundry Debtors.

4. Unexpired insurance was Rs 600.

5. The Manager is entitled to a commission @ 5% on net profit before charging such commission.

From the following Trial Balance of Kalyani, 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
Capital		90,000
Drawings	3,000
Stock on 1-4-2009	45,000
Octroi duty	800
Purchases & Sales	2,00,000	3,12,000
Returns	6,000	2,000
Salaries	10,000
Carriage outward	1,400
Wages	14,000
Insurance	2,000
Discount received		600
Postage	800
Debtors and Creditors	60,000	64,000
Furniture	35,000
Cash in hand	10,000
Machinery	80,000
Rent & Taxes	6,000
Printing & stationery	2,000
Bank Overdraft		7,400
Total	4,76,000	4,76,000

Adjustments:

1) Closing stock was valued at cost Rs 40,000 while its market price Rs 45,000.

2) Depreciate Machinery by 5% p.a.

3) Salary Rs 2,000 and wages Rs 1,000 were outstanding.

4) Insurance Rs 500 was prepaid.

Prepare trading and profit and loss account and balance sheet of M/s Royal Traders from the following balances as on March 31, 2017.

Debit balances	Amount Rs	Credit balances	Amount Rs
Stock	20,000	Sales	2,45,000
Cash	5,000	Creditors	10,000
Bank	10,000	Bills payable	4,000
Carriage on purchases	1,500	Capital	2,00,000
Purchases	1,90,000
Drawings	9,000
Wages	55,000
Machinery	1,00,000
Debtors	27,000
Postage	300
Sundry expenses	1,700
Rent	4,500
Furniture	35,000

Closing stock Rs 8,000.

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Balance Sheet as on March 31, 2017
Liabilities	Amount Rs	Assets	Amount Rs
		Closing Stock	3,00,000

Account title	Debit Rs	Credit Rs
Opening Stock	2,00,000
Purchases	8,10,000
Sales		10,10,000
	10,10,000	10,10,000

Books of M/s Bhola and Sons Journal
Date		Particulars		L.F.	Debit Amount Rs	Credit Amount Rs
2017
Mar.31	Trading A/c		Dr.		10,10,000
		To Opening Stock A/c				2,00,000
		To Purchases A/c				8,10,000
	(Balances from Purchases Account and Stock Account transferred to Trading Account)

Mar.31	Sales A/c		Dr.		10,10,000
	Closing Stock A/c				3,00,000
		To Trading A/c				13,10,000
	(Balance from sales and closing stock transferred to Trading Account)

Mar.31	Trading A/c		Dr.		3,00,000
		To Profit and Loss (Gross Profit) A/c				3,00,000
	(Balance of Trading Account (gross profit) transferred to Profit and Loss Account)

Trading Account as on March 31, 2017
Dr.			Cr.
Particulars	Amount Rs	Particulars	Amount Rs
Opening Stock	2,00,000	Sales	10,10,000
Purchases	8,10,000	Closing Stock	3,00,000
Profit and Loss A/c – Gross Profit	3,00,000

	13,10,000		13,10,000