Question

The following is the Trial Balance of Mr. Deepak as on March 31, 2017. You are required to prepare trading account, profit and loss account and a balance sheet as on date:

Account title	Debit Amount Rs	Account title	Credit Amount Rs
Drawings	36,000	Capital	2,50,000
Insurance	3,000	Bills payable	3,600
General expenses	29,000	Creditors	50,000
Rent and taxes	14,400	Discount received	10,400
Lighting (factory)	2,800	Purchases return	8,000
Travelling expenses	7,400	Sales	4,40,000
Cash in hand	12,600
Bills receivable	5,000
Sundry debtors	1,04,000
Furniture	16,000
Plant and Machinery	1,80,000
Opening stock	40,000
Purchases	1,60,000
Sales return	6,000
Carriage inwards	7,200
Carriage outwards	1,600
Wages	84,000
Salaries	53,000

Closing stock Rs 35,000.

Answer 1

Trading Account as on March 31, 2017
Dr.					Cr.
Particulars			Amount Rs	Particulars				Amount Rs
Opening Stock			40,000	Sales			4,40,000
Purchases		1,60,000				Less: Sales Return	6,000	4,34,000
	Less: Purchases Return	(8,000)	1,52,000	Closing Stock				35,000
Lighting (Factory)			2,800
Carriage Inwards			7,200
Wages			84,000
Profit and Loss (Gross Profit)			1,83,000
			4,69,000					4,69,000

Profit and Loss Account as on March 31, 2017
Dr.					Cr.
Particulars			Amount Rs	Particulars				Amount Rs
Insurance			3,000	Trading (Gross Profit)				1,83,000
General Expenses			29,000	Discount Received				10,400
Rent and Taxes			14,400
Travelling Expenses			7,400
Carriage Outwards			1,600
Salaries			53,000
Net Profit			85,000
			1,93,400					1,93,400

Balance Sheet as on March 31, 2017
Liabilities			Amount Rs	Assets	Amount Rs
Capital		2,50,000		Plant and Machinery	1,80,000
	Add: Net Profit	85,000		Furniture	16,000
3,35,000				Sundry Debtors	1,04,000
	Less: Drawings	(36,000)	2,99,000	Closing Stock	35,000
				Bills Receivable	5,000
Creditors			50,000	Cash in Hand	12,600
Bills Payable			3,600
			3,52,600		3,52,600