Question

From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017.

Account Title	Debit Amount Rs	Credit Amount Rs
Stock as on April 01, 2016	16,000
Purchases and Sales	67,600	1,12,000
Returns inwards and outwards	4,600	3,200
Carriage inwards	1,400
General expenses	2,400
Bad debts	600
Discount received		1,400
Bank over draft		10,000
Interest on bank overdraft	600
Commission received		1,800
Insurance and taxes	4,000
Scooter expenses	200
Salaries	8,800
Cash in hand	4,000
Scooter	8,000
Furniture	5,200
Building	65,000
Debtors and Creditors	6,000	16,000
Capital		50,000

Closing stock Rs 15,000.

Answer 1

Trading Account as on March 31, 2017
Dr.											Cr.
Particulars						Amount Rs	Particulars				Amount Rs
Opening Stock						16,000	Sales			1,12,000
Purchases				67,600				Less: Sales Return Inwards		(4,600)	1,07,400
	Less: Return Outwards			(3,200)		64,400	Closing Stock				15,000
Carriage Inwards						1,400
Profit and Loss (Gross Profit)						40,600
						1,22,400					1,22,400

Profit and Loss Account as on March 31, 2017
Dr.			Cr.
Particulars	Amount Rs	Particulars	Amount Rs
General Expenses	2,400	Trading (Gross Profit)	40,600
Bad Debts	600	Discount Received	1,400
Interest on Bank Overdraft	600	Commission Received	1,800
Insurance and Taxes	4,000
Scooter Expenses	200
Salaries	8,800
Net Profit	27,200
	43,800		43,800

Balance Sheet as on March 31, 2017
Liabilities			Amount Rs	Assets			Amount Rs
Capital		50,000		Building			65,000
	Add: Net Profit	27,200	77,200	Furniture			5,200
				Scooter			8,000
Creditors			16,000	Debtors			6,000
Bank Overdraft			10,000	Closing Stock			15,000
				Cash in Hand			4,000
			1,03,200				1,03,200