From the following balances of M/s Jyoti Exports, prepare trading and profit and loss account for the year ended March 31, 2017 and balance sheet as on this date.
Account Title |
Debit Amount Rs |
Account Title |
Credit Amount Rs |
Sundry debtors |
9,600 |
Sundry creditors |
2,500 |
Opening stock |
22,800 |
Sales |
72,670 |
Purchases |
34,800 |
Purchases returns |
2,430 |
Carriage inwards |
450 |
Bills payable |
15,600 |
Wages |
1,770 |
Capital |
42,000 |
Office rent |
820 |
|
|
Insurance |
1,440 |
|
|
Factory rent |
390 |
|
|
Cleaning charges |
940 |
|
|
Salary |
1,590 |
|
|
Building |
24,000 |
|
|
Plant and Machinery |
3,600 |
|
|
Cash in hand |
2,160 |
|
|
Gas and Water |
240 |
|
|
Octroi |
60 |
|
|
Furniture |
20,540 |
|
|
Patents |
10,000 |
|
|
|
1,35,200 |
|
1,35,200 |
Closing stock Rs 10,000.
1. To provision for doubtful debts is to be maintained at 5 per cent 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.
Trading Account |
|||||||
Dr. |
Cr. |
||||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||||
Opening Stock |
|
22,800 |
Sales |
|
72,670 |
||
Purchases |
34,800 |
Closing Stock |
|
10,000 |
|||
|
Less: Purchases Return |
2,430 |
32,370 |
|
|
||
Carriage Inwards |
|
450 |
|
|
|||
Wages |
1,770 |
|
|
|
|||
|
Add: Outstanding Wages |
500 |
2,270 |
|
|
||
Factory Rent |
390 |
|
|
||||
|
Less: Prepaid Rent |
100 |
290 |
|
|
||
Gas and Water |
|
240 |
|
|
|||
Octroi |
60 |
|
|
||||
Cleaning Charges |
940 |
|
|
||||
Gross Profit |
23,250 |
|
|
||||
|
|
82,670 |
|
82,670 |
|||
|
|
|
|
|
|
||
Profit and Loss Account |
||||||
Dr. |
Cr. |
|||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Office Rent |
|
820 |
Gross Profit |
|
23,250 |
|
Insurance |
1,440 |
|
||||
|
Add: Outstanding Insurance |
100 |
1,540 |
|
||
Depreciation on Plant and Machinery |
|
180 |
|
|
||
Salary |
1,590 |
|
|
|||
|
Add: Outstanding Salary |
350 |
1,940 |
|
|
|
Provision for Doubtful Debts |
|
480 |
|
|
||
Depreciation on Building |
|
2,400 |
|
|
||
Net Profit |
|
15,890 |
|
|
||
|
|
|
|
|||
|
|
23,250 |
|
23,250 |
||
|
|
|
|
|
|
Balance Sheet |
|||||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||||
Capital |
42,000 |
|
Sundry Debtors |
9,600 |
|
||
|
Add: Net Profit |
15,890 |
57,890 |
Less: New Provision |
480 |
9,120 |
|
Sundry Creditors |
|
2,500 |
Building |
24,000 |
|
||
Bills Payable |
|
15,600 |
Less: Depreciation |
2,400 |
21,600 |
||
Outstanding Salary |
|
350 |
Plant and Machinery |
3,600 |
|
||
Outstanding Wages |
|
500 |
Less: Depreciation |
180 |
3,420 |
||
Outstanding Insurance |
|
100 |
Cash in Hand |
2,160 |
|||
|
|
Furniture |
|
20,540 |
|||
|
|
Patents |
|
10,000 |
|||
|
|
Closing Stock |
|
10,000 |
|||
|
|
Prepaid Factory Rent |
|
100 |
|||
|
|
|
|
||||
|
|
76,940 |
|
76,940 |
|||
|
|
|
|
|
|
|
|
Note: As per solution Net Profit is Rs 15,890 and Total of the Balance Sheet is Rs 76,940. However, NCERT shows Net Profit Rs 15,895 and Total of the Balance Sheet Rs 76,945.