From the following balances extracted from the books of Sh. Badri Vishal on 31st March, 2017, prepare a Trading Account, P & L A/c and a Balance Sheet. Closing Stock valued on that date was ₹ 15,000.

Dr.
(₹) Cr.
(₹)

Capital 1,28,200

Household Expenses 10,000

Sales 1,80,000

Return inwards 4,000

Return outwards 6,000

Purchases 1,50,000

Cash at Shop 1,600

Bank Overdraft 15,000

Interest on Overdraft 1,500

Creditors 17,800

Stock at the Commencement 18,000

Freight 8,500

Rent and Taxes 7,000

Debtors 32,600

Commission 3,000 2,200

Freehold property 30,000

Sundry expenses 3,900

Salaries and wages 20,000

Life Insurance Premium 1,800

Insurance Premium 1,600

Motor Vehicle 39,800

Typewriter 8,000

Interest 800

Carriage inwards 2,000

Carriage outwards 800

Power 2,200

Audit Fee 1,700

Lighting 2,000

3,50,000 3,50,000

Open in App

Solution

Financial Statements of Sh. Badri Vishal

Trading Account
for the year ended March 31, 2017

Dr. Cr.

Particulars Amount (Rs) Particulars Amount (Rs)

Opening Stock 18,000 Sales 1,80,000

Purchases 1,50,000
Less: Return Inwards
4,000 1,76,000

Less: Return Outwards
6,000 1,44,000 Closing Stock 15,000

Freight 8,500

Carriage Inwards 2,000

Power 2,200

Gross Profit (Balancing Figure) 16,300

1,91,000 1,91,000

Profit and Loss Account

for the year ended March 31, 2017

Dr. Cr.

Particulars Amount
(Rs) Particulars Amount (Rs)

Interest on Overdraft 1,500 Gross Profit 16,300

Rent & Taxes 7,000 Commission Received 2,200

Commission 3,000 Interest Received 800

Sundry Expenses 3,900 Net Loss (Balancing Figure) 22,200

Salaries & Wages 20,000

Insurance Premium 1,600

Carriage Outwards 800

Audit Fees 1,700

Lighting 2,000

41,500 41,500

Balance Sheet
as on March 31, 2017

Liabilities Amount (Rs) Assets Amount (Rs)

Capital 1,28,200 Fixed Assets

Less: Net Loss
22,200 Freehold Property 30,000

Less: Drawings*
11,800 94,200 Motor Vehicle 39,800

Typewriter 8,000

Current Liabilities Current Assets

Creditors 17,800 Closing Stock 15,000

Bank Overdraft 15,000 Debtors 32,600

Cash in hand 1,600

1,27,000 1,27,000

*Drawings = Household Expenses + Life Insurance Premium = 10,000 + 1,800 = Rs 11,800

Suggest Corrections

Similar questions

Q. From the following Trial Balance extracted from the books of Sh. Pawan Kumar, prepare a Trading Account, Profit & Loss Account for the year ended 31st March, 2014 and a Balance Sheet as at that date :

Dr. Balances	(₹)	Cr. Balances	(₹)
Drawings	1,20,000	Capital	16,00,000
Plant and Machinery	12,00,000	Creditors	2,60,000
Horses and Carts	2,60,000	Sales	8,20,000
Debtors	3,40,000	Bills Payable	2,21,200
Purchases	2,00,000	Interest on Ram's Loan	1,800
Wages	80,000	Rent Received	12,000
Cash at Bank	2,60,000
Salaries	80,000
Repairs	5,000
Stock (1-4-2013)	7,000
Stock (31-3-2014)	92,000
Rent	45,000
Manufacturing expenses	15,000
Bad-Debts	50,000
Carriage	15,000
Income Tax	20,000
Life Insurance Premium	30,000
Loan to Ram at 12% p.a.	20,000
Insurance	12,000
Insurance Prepaid	1,000
	29,15,000		29,15,000

Adjustments:-
1. Plant and Machinery includes a new machinery purchased on 1st October, 2013 for ₹ 2,00,000.
2. Depreciate Plant and Machinery by 10% p.a. and Horses and Carts by 20% p.a.
3. Salaries for the month of February and March 2014 are outstanding.
4. Goods worth ₹ 15,000 were sold and dispatched on 27th March but no entry was passed to this effect.
5. Make a provision for Doubtful Debts at 5% on Debtors.

Q. The following are the balances extracted from the books of Raghunath Ji as on 31st March, 2017. From these balances, prepare his Trading and Profit & Loss Account and Balance Sheet as at that date:

	Dr. (₹)	Cr. (₹)
Opening Stock	12,000
Purchases	40,000
Sales		86,000
Discount		400
Sales Return	6,000
Buildings	50,000
Debtors	16,000
Salaries	2,400
Office Expenses	1,200
Wages	10,000
Purchase Return		4,000
Interest		800
Travelling Expenses	400
Fire Insurance Premium	800
Machinery	20,000
Carriage on Purchases	700
Commission	400
Cash in hand	2,300
Rent and Taxes	1,800
Capital		62,000
Creditors		10,800
	1,64,000	1,64,000

Adjustment:-
1. Closing Stock was valued at ₹ 16,000.
2. Wages ₹ 2,000 and salaries ₹ 1,200 are outstanding.
3. Rent for two months at the rate of ₹ 500 per month is outstanding.
4. Depreciate Buildings by 5% and machinery by 10%.
5. Prepaid Insurance ₹ 200.

Q. On 31st March, 2017 the following Trial Balance was extracted from the books of Sh. Ghanshyam Das:-

	Dr. (₹)	Cr. (₹)
Capital Account		2,00,000
Debtors and Creditors	40,000	25,000
Loan on Mortgage		30,000
Interest on Loan	2,250
Discount		1,800
Stock on 1st April, 2016	20,000
Motor Vehicle	50,000
Cash at Bank	4,450
Investments	16,000
Wages	18,000
Land and Building	2,80,000
Bad-Debts	1,500
Purchases and Sales	2,50,000	4,80,000
Purchases and Sales Returns	12,000	10,000
Carriage Outward	8,000
Carriage Inward	6,500
Salaries	7,200
Outstanding Salaries		600
Rates, Taxes and Insurance	15,000
Advertising	5,000
General Expenses	6,400
Bills Receivable and Payable	7,500	5,400
Prepaid Insurance	3,000
	7,52,800	7,52,800

Prepare Trading and Profit & Loss Account for the year ended 31st March, 2017 and Balance Sheet as at that date, after making adjustments for the following matters:
1. Depreciate Land and Building at 2.5% and Motor Vehicles at 20%.
2. Interest on Loan at 15% p.a. is unpaid for six months.
3. Ghanshyam Das withdrew ₹ 2,000 for his private use. This amount was included in general expenses.
4. Interest on Investments is receivable for full year @ 10%.
5. Provide for Manager's Commission at 10% on Net Profit after charging such commission.
6. Stock in hand on 31st March, 2017 was valued at ₹ 25,000 (Realisable value ₹ 22,000).

Q. From the following balances extracted from the books of Sharma, prepare the Trading and Profit & Loss Account for the year ended 31st March 2019 and Balance Sheet as at that date after taking into consideration the adjustments given below:

Trial Balance
as at 31st March, 2019
Particulars	Dr. (₹)	Cr. (₹)
Drawing and Capital	7,500	50,000
Purchases and Sales	72,100	95,000
Returns	1,300	2,700
Sundry Debtors and Creditors	18,200	35,750
Stock (1.04.2018)	19,800	-
Bad Debts	3,000	-
Bill Receivable and Payable	12,000	23,000
Cash in Hand	300	-
Office Expenses	6,210	-
Sales Van	15,000	-
Sales Van Expenses	1,400	-
Discount	-	2,910
Rent and Taxes	10,700	-
Telephone Charges	1,050	-
Postage	950	-
Furniture	5,000	-
Printing and Stationery	2,750	-
Commission	8,400	-
Carriage Inwards	3,200	-
Salaries and Wages	20,500

	2,09,360	2,09,360

Adjustments:
(i) Closing Stock was valued at ₹ 61,700.
(ii) Depreciate Furniture and Machinery @10% p.a. and Sale Van @20% p.a.
(iii) Outstanding Rent amounted to ₹ 900.
(iv) Bad Debts ₹ 200.
(v) Make a provision for Doubtful Debts @5% on Debtors.
(vi) Charge one-fourth of salaries and wages to the Trading Account.
(vii) A new machinery was purchased on credit and installed on 31st December 2018 costing ₹ 15,000. No entry for the same has yet been passed in the books.

Q. From the following Trial Balance of Sh. Swamy Narain, prepare Trading and Profit & Loss Account for the year ended 31st March 2018 and a Balance Sheet as at that date :

Dr. Balances	₹	Cr. Balances	₹
Opening Stock	50,000	Capital	20,00,000
Purchases	5,30,000	Sales	12,50,000
General Expenses	45,000	Sundry Creditors	1,36,000
Stationery	6,000	Trade Charges due but not paid	5,000
Wages	2,15,000	Outstanding Rent	4,000
Trade Charges	25,000	Bank Balance	45,000
Rent	44,000
Charity	5,000
Advertisement Expenses	30,000
Carriage on Sales	12,000
Bills Receivables	30,000
Sundry Debtors	2,20,000
Cash Discount	16,000
Cash in Hand	22,000
Furniture	1,00,000
Advance for Furniture	40,000
Plant & Machinery	6,00,000
Building	14,50,000
	34,40,000		34,40,000

Adjustments:
(i) Stock on 31 March, 2018 was valued at ₹ 60,000.
(ii) A new machine was installed during the year costing ₹ 2,00,000 but it was not recorded in the books. Wages paid for its installation ₹ 10,000 have been debited to Wages Account.
(iii) An advance of ₹ 10,000 given alongwith purchase order was wrongly recorded in purchases.
(iv) General expenses include ₹ 20,000 paid for Wages.
(v) Wages include a sum of ₹ 50,000 spent on the erection of a Scooter Stand for employees.
(vi) Advance for Furniture is for furniture at proprietor's residence.
(vii) Depreciate Furniture at 15%, Plant & Machinery at 20% and Building at 10%.
(viii) Carry forward 2/3 of Advertisement Expenses as unexpired.
(ix) A B/R of ₹ 20,000 was discounted with bank on 15 Nov. 2017, but not yet matured.

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Financial Statements of Sh. Badri Vishal
Trading Account for the year ended March 31, 2017
Dr.						Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Opening Stock		18,000	Sales	1,80,000
Purchases	1,50,000		Less: Return Inwards	4,000	1,76,000
Less: Return Outwards	6,000	1,44,000	Closing Stock		15,000
Freight		8,500
Carriage Inwards		2,000
Power		2,200
Gross Profit (Balancing Figure)		16,300
		1,91,000			1,91,000

Profit and Loss Account for the year ended March 31, 2017
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Interest on Overdraft	1,500	Gross Profit	16,300
Rent & Taxes	7,000	Commission Received	2,200
Commission	3,000	Interest Received	800
Sundry Expenses	3,900	Net Loss (Balancing Figure)	22,200
Salaries & Wages	20,000
Insurance Premium	1,600
Carriage Outwards	800
Audit Fees	1,700
Lighting	2,000
	41,500		41,500

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Capital	1,28,200		Fixed Assets
Less: Net Loss	22,200		Freehold Property	30,000
Less: Drawings*	11,800	94,200	Motor Vehicle	39,800
			Typewriter	8,000
Current Liabilities			Current Assets
Creditors		17,800	Closing Stock	15,000
Bank Overdraft		15,000	Debtors	32,600
			Cash in hand	1,600
		1,27,000		1,27,000