From the following balances extracted from the book of M/s Manju Chawla on March 31, 2010. You are requested to prepare the trading and profit and loss account and a balance sheet as on this date.
Account Title Amt. (Dr) Amt. (Cr)
Opening Stock 10,000
Purchase and Sales 40,000 80,000
Returns 200 600
Wages 6,000
Dock and Clearing Charges 4,000
Lighting 500
Miscellaneous Income 6,000
Rent 2,000
Capital 40,000
Drawings 2,000
Debtors and Creditors 6,000 7,000
Cash 3,000
Investment 6,000
Patent 4,000
Land and Machinery 43,000
Donations and Charity 600
Sales Tax Collected 1,000
Furniture 11,300
1,36,600 1,36,600
Closing Stock was Rs. 2,000.
(a) Interest on drawings @ 7% and interest, on capital @ 5%.
(b) Land and machinery is depredated at 5%.
(c) Interest on investment @ 6%.
(d) Unexpired rent Rs. 100.
(e) Charge 5% depreciation on furniture.

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Solution

Trading and Profit and Loss Account
as on 31st March,2010
Dr Cr
Particulars Amt. (Rs.) Particular Amt. (Rs.)
To Opening Stock 10,000 By Sales 80,000
To Purchase 40,000 (-) Sales Return 200
79,800
(-) Purchase Return 600
39,400 By Closing Stock 2000
To Wages 6,000
To Dock and Clearing Charges
4,000

To Gross Profit c/d 22,400
81,800 81,800
To Donation and Charity
600 By Gross Profit b/d 22,400
To Interest on Capital
2000 By Interest on Drawings
140
To Depreciation on Furniture
565 By Interest on Investment
360
To Depreciation on Land and Machine
2,150 By Miscellaneous Income
6,000
To Lighting
500 By Rent Received 2,000
To Net Profit
24,985 (-) Unexpired Rent 100
1,900

30,800 30,800

Balance Sheet
as on 31st March, 2010
Liabilities Amt. (Rs.) Assets Amt. (Rs.)
Capital 40,000 Furniture 11,300
(+) Interest on Capital
(+) Net Profit
(-) Drawings 2,000
42,000
24,985
66,985
2,000 (-) Depreciation @5%
565
10,735
(-) Interest
140 Land and Machinery
43,000
Unexpired Rent 100 (-) Depreciation @ 5%
Investment 2,150
40,850
6,000
Sales Tax Collected
1,000 (+) Interest @ 6%
360
Creditors
7,000 Debtors 6,000
Cash 3,000
Patents 4,000

Closing Stock 2,000
72,945 72,945

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Similar questions

From the following balances extracted from the book of M/s Manju Chawla on March 31, 2010. You are requested to prepare the trading and profit and loss account and a balance sheet as on this date.

$\begin{matrix} Account Title & Amt. (Rs.) & Amt. (Rs.) Opening Stock & 10, 000 Purchases and Sales & 40, 000 & 80, 000 Returns & 200 & 600 Wages & 6, 000 Dock and Clearing Charges & 4, 000 Lighting & 500 Miscellaneous Income & 6, 000 Rent & 2, 000 Capital & 40, 000 Drawings & 2, 000 Debtors and Creditors & 6, 000 & 7, 000 Cash & 3, 000 Investment & 6, 000 Patents & 4, 000 Land and Machinery & 43, 000 Donations and Charity & 600 Sales Tax Collected & 1, 000 Furniture & 11, 300 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 36, 600 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 36, 600 - -------- - \end{matrix}$

Closing Stock was. Rs 2,000.

(a) Interest on drawings @ $7 %$ and interest on capital @ $5 %$ .

(b) Land and machinery is depreciated at $5 %$ .

(d) Unexpired rent Rs 100.

(e) Charge $5 %$ depreciation on furniture.

From the following balances extracted from the book of M/s Manju Chawla on March 31, 2017. You are requested to prepare the trading and profit and loss account and a balance sheet as on this date.

Account Title	Amount Rs	Amount Rs
Opening stock	10,000
Purchases and Sales	40,000	80,000
Returns	200	600
Wages	6,000
Dock and cleaning charges	4,000
Lighting	500
Misc. Income		6,000
Rent		2,000
Capital		40,000
Drawings	2,000
Debtors and Creditors	6,000	7,000
Cash	3,000
Investment	6,000
Patent	4,000
Land and Machinery	43,000
Donations and Charity	600
Sales tax collected		1,000
Furniture	11,300
	1,36,600	1,36,600

Closing stock was Rs 2,000.

(a) Interest on drawings @ 7% and interest on capital @ 5%.

(b) Land and Machinery is depreciated at 5%.

(d) Unexpired rent Rs 100.

(e) Charge 5% depreciation on furniture.

The following balances were extracted from the books of M/s Panchsheel Garments on March 31, 2017.

Account Title	Debit Amount Rs	Account Title	Credit Amount Rs
Opening stock	16,000	Sales	1,12,000
Purchases	67,600	Return outwards	3,200
Return Inwards	4,600	Discount	1,400
Carriage inwards	1,400	Bank overdraft	10,000
General expenses	2,400	Commission	1,800
Insurance	4,000	Creditors	16,000
Scooter expenses	200	Capital	50,000
Salary	8,800
Cash in hand	4,000
Scooter	8,000
Furniture	5,200
Buildings	65,000
Debtors	6,000
Wages	1,200
	1,94,400		1,94,400

Prepare the trading and profit and loss account for the year ended March 31, 2017 and a balance sheet as on that date.

(a) Unexpired insurance Rs 1,000.

(b) Salary due but not paid Rs 1,800.

(d) Interest on capital 5%.

(e) Scooter is depreciated @ 5%.

(f) Furniture is depreciated Rs @ 10%.

The following balances have been extracted from the books of M/s Green House for the years ended December 31, 2010, prepare trading and profit and loss account and balance sheet as on this date.

$\begin{matrix} Account Title & Amt. (Rs) & Account Title & Amt. (Rs) Purchases & 80, 000 & Capital & 2, 10, 000 Bank Balance & 11, 000 & Bills Payable & 6, 500 Wages & 34, 000 & Sales & 2, 00, 000 Debtors & 70, 300 & Creditors & 50, 000 Cash in Hand & 1, 200 & Return Outwards & 4, 000 Legal Expenses & 4, 000 Building & 60, 000 Machinery & 1, 20, 000 Bills Receivable & 7, 000 Office Expenses & 3, 000 Opening Stock & 45, 000 Gas and Fuel & 2, 700 Freight and Carriage & 3, 500 Factory Lighting & 5, 000 Office Furniture & 5, 000 Patent Right & 18, 800 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 70, 500 - -------- - - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 70, 500 - -------- - - -------- - \end{matrix}$

Adjustments

(a) Machinery is depreciated @ 10 $%$ and buildings depreciated @ 6 $%$ .

(b) Interest on capital @ 4 $%$ .

(d) Closing stock Rs. 50,000.

Q. The following balances were extracted from the books of M/s Panchsheel Garments on December 31, 2010.

Account Title	Amt. (Rs)	Account Title	Amt. (Rs)
Opening Stock	16,000	Sales	1,12,000
Purchase	67,600	Return Outwards	3,200
Return Inwards	4,600	Discount	1,400
Carriage Inwards	1,400	Bank Overdraft	10,000
General Expenses	2,400	Commission	1,800
Insurance	4,000	Creditors	16,000
Scooter Expenses	200	Capital	50,000
Salary	8,800
Cash in Hand	4,000
Scooter	8,000
Furniture	5,200
Buildings	65,000
Debtors	6,000
Wages	1,200
	1,94,400		1,94,400

Prepare the trading and profit and loss account for the year ended December 31, 2010 and a balance sheet as on that date
(a) Unexpired insurance Rs. 1,000.
(b) Salary due but not paid Rs. 1,800.
(c) Wages outstanding Rs. 200.
(d) Interest on capital @ 5%.
(e) Scooter is depredated @ 5%.
(f) Furniture is depredated @ 10%.

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Account Title	Amt. (Dr)	Amt. (Cr)
Opening Stock	10,000
Purchase and Sales	40,000	80,000
Returns	200	600
Wages	6,000
Dock and Clearing Charges	4,000
Lighting	500
Miscellaneous Income		6,000
Rent		2,000
Capital		40,000
Drawings	2,000
Debtors and Creditors	6,000	7,000
Cash	3,000
Investment	6,000
Patent	4,000
Land and Machinery	43,000
Donations and Charity	600
Sales Tax Collected		1,000
Furniture	11,300
	1,36,600	1,36,600

Particulars	Amt. (Rs.)	Particular	Amt. (Rs.)
To Opening Stock	10,000	By Sales	80,000
To Purchase	40,000	(-) Sales Return	200 79,800
(-) Purchase Return	600 39,400	By Closing Stock	2000
To Wages	6,000
To Dock and Clearing Charges	4,000

To Gross Profit c/d	22,400 81,800		81,800
To Donation and Charity	600	By Gross Profit b/d	22,400
To Interest on Capital	2000	By Interest on Drawings	140
To Depreciation on Furniture	565	By Interest on Investment	360
To Depreciation on Land and Machine	2,150	By Miscellaneous Income	6,000
To Lighting	500	By Rent Received	2,000
To Net Profit	24,985	(-) Unexpired Rent	100 1,900
	30,800		30,800

Liabilities	Amt. (Rs.)	Assets	Amt. (Rs.)
Capital	40,000	Furniture	11,300
(+) Interest on Capital (+) Net Profit (-) Drawings	2,000 42,000 24,985 66,985 2,000	(-) Depreciation @5%	565 10,735
(-) Interest	140	Land and Machinery	43,000
Unexpired Rent	100	(-) Depreciation @ 5% Investment	2,150 40,850 6,000
Sales Tax Collected	1,000	(+) Interest @ 6%	360
Creditors	7,000	Debtors	6,000
		Cash	3,000
		Patents	4,000
		Closing Stock	2,000
	72,945		72,945