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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Solution

Trading Account as on March 31, 2017

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Opening Stock

20,000

Sales

2,45,000

Purchases

1,90,000

Closing Stock

8,000

Carriage on Purchases

1,500

Profit and Loss (Gross Loss)

13,500

Wages

55,000

2,66,500

2,66,500

Profit and Loss Account as on March 31, 2017

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Trading (Gross Loss)

13,500

Postage

300

Sundry Expenses

1,700

Rent

4,500

Net Loss

20,000

20,000

20,000

Balance Sheet of M/s Royal Traders as on March 31, 2017

Liabilities

Amount

Rs

Assets

Amount

Rs

Capital

2,00,000

Machinery

1,00,000

Less: Net Loss

(20,000)

Furniture

35,000

Less: Drawings

(9,000)

1,71,000

Debtors

27,000

Closing Stock

8,000

Creditors

10,000

Bank

10,000

Bills Payable

4,000

Cash

5,000

1,85,000

1,85,000

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From the following balances of M/s Nilu Sarees as on March 31, 2017. Prepare trading and profit and loss account and balance sheet as on date.

Account Title	Debit Amount Rs	Account Title	Credit Amount Rs
Opening stock	10,000	Sales	2,28,000
Purchases	78,000	Capital	70,000
Carriage inwards	2,500	Interest	7,000
Salaries	30,000	Commission	8,000
Commission	10,000	Creditors	28,000
Wages	11,000	Bills payable	2,370
Rent and taxes	2,800
Repairs	5,000
Telephone expenses	1,400
Legal charges	1,500
Sundry expenses	2,500
cash in hand	12,000
Debtors	30,000
Machinery	60,000
Investments	90,000
Drawings	18,000

Closing stock, as on March 31, 2017 Rs 22,000.

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.

Q. From the following balances, prepare Trading and Profit and Loss Account and the Balance Sheet:

Debit Balances:	₹	Debit Balances (Contd.):	₹
Machinery	2,00,000	Opening Stock	2,00,000
Building	1,50,000	Rent	45,000
Debtors	2,70,000	Sundry Expenses	20,000
Drawings	90,000	Carriage	15,000
Purchases	9,50,000	Credit Balances:
Wages	5,00,000	Capital	10,00,000
Bed Debts	10,000	Creditors	1,40,000
Bank	1,50,000	Sales	14,50,000
		Commission	10,000

Closing Stock was of ₹ 70,000 but its net realisable value was estimated at ₹ 60,000.

Q. From the following balances, as on 31st March, 2018, prepare Trading and Profit and Loss Account and Balance Sheet:

	₹		₹
Capital Account	1,00,000	Returns Outward	5,000
Plant and Machinery	40,000	Rent	4,000
Sundry Debtors	24,000	Sales	1,64,000
Sundry Creditors	12,000	Manufacturing Expenses	8,000
Life Insurance Premium	12,000	Trade Expenses	7,000
Purchases	1,05,000	Bad Debts	2,000
Wages	50,000	Carriage	1,500
Bank	10,000	Bills Payable	7,000
Repairs	500	Returns Inward	4,000
Stock (1st April, 2017)	20,000

Closing Stock on 31st March, 2018 was valued at ₹ 14,500.

Q. From the following balances, prepare Trading and Profit and Loss Account and Balance Sheet:

Debit Balances:	₹	Debit Balances (Contd.):	₹
Machinery	3,50,000	Rent	45,000
Debtors	2,70,000	Sundry Expenses	20,000
Drawings	90,000	Carriage	15,000
Purchases	9,50,000	Credit Balances:
Wages	5,00,000	Capital	10,00,000
Bank	1,50,000	Creditors	1,40,000
Opening Stock	2,00,000	Sales	14,50,000

Closing Stock was valued at ₹ 30,000.

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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

Trading Account as on March 31, 2017
Dr.			Cr.
Particulars	Amount Rs	Particulars	Amount Rs
Opening Stock	20,000	Sales	2,45,000
Purchases	1,90,000	Closing Stock	8,000
Carriage on Purchases	1,500	Profit and Loss (Gross Loss)	13,500
Wages	55,000

	2,66,500		2,66,500

Profit and Loss Account as on March 31, 2017
Dr.			Cr.
Particulars	Amount Rs	Particulars	Amount Rs
Trading (Gross Loss)	13,500
Postage	300
Sundry Expenses	1,700
Rent	4,500	Net Loss	20,000

	20,000		20,000

Balance Sheet of M/s Royal Traders as on March 31, 2017
Liabilities			Amount Rs	Assets	Amount Rs
Capital		2,00,000		Machinery	1,00,000
	Less: Net Loss	(20,000)		Furniture	35,000
	Less: Drawings	(9,000)	1,71,000	Debtors	27,000
				Closing Stock	8,000
Creditors			10,000	Bank	10,000
Bills Payable			4,000	Cash	5,000

			1,85,000		1,85,000