Question

From the following balances of M/s Jyoti Exports, prepare trading and profit and loss account for the year ended March 31, 2012 and balance sheet as on this date.

$\begin{array}{cccc}\text{Account Title}& \text{Amt. (Rs.)}& \text{Account Title}& \text{Amt. (Rs.)}\\ \text{Sundry Debtors}& 9,600& \text{Sundry Creditors}& 2,500\\ \text{Opening Stock}& 22,800& \text{Sales}& 72,670\\ \text{Purchases}& 34,800& \text{Purchases Return}& 2,430\\ \text{Carriage Inwards}& 450& \text{Bills Payable}& 15,600\\ \text{Wages}& 1,770& \text{Capital}& 42,000\\ \text{Office Rent}& 820& & \\ \text{Insurance}& 1,440& & \\ \text{Factory Rent}& 390& & \\ \text{Clearing Charges}& 940& & \\ \text{Salary}& 1,590& & \\ \text{Building}& 24,000& & \\ \text{Plant and Machinery}& 3,600& & \\ \text{Cash in Hand}& 2,160& & \\ \text{Gas and Water}& 240& & \\ \text{Octroi}& 60& & \\ \text{Furniture}& 20,540& & \\ \text{Patents}& 10,000& & \\ & \overline{\underset{–}{\underset{–}{1,35,200}}}& & \overline{\underset{–}{\underset{–}{1,35,200}}}\end{array}$

Closing stock Rs. 10,000.

Additional Information:

1. The provision for bad debts is to be maintained at 5$\%$ on sundry debtors.

2. Wages amounting to Rs. 500 and salary amounting to Rs. 350 are outstanding.

3. Factory rent prepaid Rs. 100.

4. Depreciation charged on Plant and Machinery @ 5$\%$ and Building @ 10$\%$.

5. Outstanding insurance Rs. 100.

Answer 1

Trading and Profit and Loss Account

Dr. as on 31st March, 2012 Cr.

$\begin{array}{ccccc}\text{Particulars}& & \text{Amt.(Rs.)}& \text{Particulars}& \text{Amt.(Rs.)}\\ \text{Opening Stock}& & 22,800& \text{Sales}& 72,670\\ \text{Purchases}& 34,800& & \text{Closing Stock}& 10,000\\ (-)\text{Purchases Return}& \underset{–}{2,430}& 32,370& & \\ \text{Clearing Charges}& & 940& & \\ \text{Carriage Inwards}& & 450& & \\ \text{Factory Rent}& 390& & & \\ (-)\text{Prepaid}& \underset{–}{100}& 290& & \\ \text{Gas and Water}& & 240& & \\ \text{Octroi}& & 60& & \\ \text{Wages}& 1,770& & & \\ (+)\text{Outstanding Wages}& \underset{–}{500}& 2,270& & \\ \text{Gross Profit c/d}& & 23,250& & \\ & & \overline{\underset{–}{\underset{–}{82,670}}}& & \overline{\underset{–}{\underset{–}{82,670}}}\\ \text{Office Rent}& & 820& \text{Gross Profit b/d}& 23,250\\ \text{Insurance}& 1,440& & & \\ (+)\text{Outstanding Insurance}& \underset{–}{100}& 1,540& & \\ \text{Salary}& 1,590& & & \\ (+)\text{Outstanding Salary}& \underset{–}{350}& 1,940& & \\ \text{Provisions for Bad Debts}& & 480& & \\ \text{Depreciation on Building}& & 2,400& & \\ \text{Depreciation on Plant and Machinery}& & 180& & \\ \text{Net Profit}& & 15,890& & \\ & & \overline{\underset{–}{\underset{–}{23,250}}}& & \overline{\underset{–}{\underset{–}{23,250}}}\end{array}$

Balance Sheet

as on 31st March, 2012

$\begin{array}{cccccc}\text{Capital and Liabilities}& & \text{Amt.(Rs)}& \text{Assets}& & \text{Amt.(Rs)}\\ \text{Capital}& 42,000& & \text{Sundry Debtors}& 9,600& \\ (+)\text{Net Profit}& \underset{–}{15,890}& 57,890& (-)\text{Provision for Bad Debts}@5\%& \underset{–}{480}& 9,120\\ \text{Sundry Creditors}& & 2,500& & & \\ \text{Bills Payable}& & 15,600& \text{Building}& 24,000& \\ \text{Outstanding Salary}& & 350& (-)\text{Depreciation}@10\%& \underset{–}{2,400}& 21,600\\ \text{Outstanding Wages}& & 500& & & \\ \text{Outstanding Insurance}& & 100& \text{Plant and Machinery}& 3,600& \\ & & & (-)\text{Depreciation}@5\%& \underset{–}{180}& 3,420\\ & & & \text{Cash in Hand}& & 2,160\\ & & & \text{Furniture}& & 20,540\\ & & & \text{Patents}& & 10,000\\ & & & \text{Prepaid Rent (Factory)}& & 100\\ & & & \text{Closing Stock}& & 10,000\\ & & \overline{\underset{–}{\underset{–}{76,940}}}& & & \overline{\underset{–}{\underset{–}{76,940}}}\end{array}$