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Question

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

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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

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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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