Question

From the following balances, as on 31st March, 2019, 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, 2018)	20,000

Closing Stock on 31st March, 2019 was valued at ₹ 14,500.

Answer 1

Trading Account for the year ended March 31, 2019
Dr.							Cr.
Particulars			Amount (₹)	Particulars		Amount (₹)
Opening Stock			20,000	Sales	1,64,000
Purchases		1,05,000		Less: Return Inwards	(4,000)	1,60,000
Less: Return Outwards		(5,000)	1,00,000	Closing Stock		14,500
Wages			50,000	Gross Loss (Balancing Figure)		5,000
Manufacturing Expenses			8,000
Carriage			1,500
			1,79,500			1,79,500

Profit and Loss Account for the year ended March 31, 2019
Dr.					Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
Gross Loss		5,000
Repairs		500
Rent		4,000
Trade Expenses		7,000	Net Loss (Balancing Figure)	18,500
Bad Debts		2,000
		18,500		18,500

Balance Sheet as on March 31, 2019
Liabilities		Amount (₹)	Assets	Amount (₹)
Capital	1,00,000		Fixed Assets
Less: Life Insurance Premium	(12,000)		Plant and Machinery	40,000
Less: Net Loss	(18,500)	69,500	Current Assets
Current Liabilities			Closing Stock	14,500
Sundry Creditors		12,000	Sundry Debtors	24,000
Bills Payable		7,000	Bank	10,000
		88,500		88,500