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.
Account Title Amt. (Rs) Account Title Amt. (Rs)
Sundry Debtors 9,600 Sundry Creditors 2,500
Opening Stock 22,800 Sales 72,670
Purchase 34,800 Purchase Return 2,430
Carriage Inwards 450 Bills Payable 15,600
Wages 1,770 Capital 42,000
Office Rent 820
Insurance 1,440
Factory Rent 390
Clearing 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. 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. Depredation charged on Plant and Machinery @ 5% and Building @ 10%.
5. Outstanding insurance Rs. 100.

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Solution

Trading and Profit and Loss Account
as on 31st March, 2012
Dr Cr
Particulars Amt. (Rs.) Particular Amt. (Rs.)
To Opening Stock 22,800 By Sales 72,670
To Purchase 34,800 By Closing Stock
10,000
(-) Purchase
Return 2,430
32,370

To Clearing Charges
940
To Carriage Inward
To Factory Rent
(-) Prepaid
To Gas and Water
450
390
100
290
240
To Octroi
To Wages
(+) Outstanding
Wages
60
1,770
500
2,270
To Gross Profit c/d 23,250
82,670 82,670
To Office Rent
820 By Gross Profit b/d 23,250
To Insurance
(+) Outstanding Insurance
100
1,540
Salary
(+) Outstanding Salary
1,590
350
1,940
To Provision for Bad Debts
480
To Depreciation on Building
2,400
To Depteciation on Plant and Machinery 180
To Net Profit
15,890

23,250 23,250

Balance Sheet
as on 31st March, 2012
Liabilities Amt. (Rs.) Assets Amt. (Rs.)
Capital 42,000 Sundry Debtors
9,600
(+) Net Profit
15,890
57,890
(-)Provision
for Bad Debts @5%
480
9,120
Sundry Creditors 2,500 Building 24,000
Bills Payable 15,600 (-) Depreciation @ 10%
2,400
21,600
Outstanding Salary 350 Plant and Machinery
3,600
Outstanding Wages 500 (-) Depreciation @ 5%
180
3,420
Outstanding Insurance 100 Cash in Hand
2,160
Furniture 20,540
Patents 10,000
Prepaid Rent (Factory)
Closing Stock 100
10,000
76,940
76,940

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Similar questions

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.

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

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.

Q. Prepare a Trading and Profit and Loss account for year ending December 31, 2010 from the balances extracted to M/s Rahul Sons. Also prepare a balance sheet at the end of the year.

Account Title	Amt. (Rs.)	Account Title	Amt. (Rs.)
Stock	50,000	Sales	1,80,000
Wages	3,000	Purchase Return	2,000
Salary	8,000	Discount Received	500
Purchase	1,75,000	Provision for Bad Debts	2,500
Sales Return	3,000	Capital	3,00,000
Sundry Debtors	82,000	Bills Payable	22,000
Discount Allowed	1,000	Commission Received	4,000
Insurance	3,200	Rent	6,000
Rent, Rates and Taxes	4,300	Loan	34,800
Fixtures and Fittings	20,000
Trade Expenses	1,500
Bad Debts	2,000
Drawings	32,000
Repair and Renewals	1,600
Travelling Expenses	4,200
Postage	300
Telegram Expenses	200
Legal Fees	500
Bills Receivable	50,000
Building	1,10,000
	5,51,800		5,51,800

Adjustments
1. Commission received in advance Rs. 1,000.
2. Rent received Rs. 22,000.
3. Salary outstanding Rs. 1,000 and insurance prepaid Rs. 800.
4. Further bad debts Rs. 1,000 and provision for bad debts @ 5% on debtors and discount on debtors @ 2%.
5. Closing stock Rs. 32,000.
6. Depreciation on building @ 6% pa.

Q. From the following balances extracted from the books of Raga Ltd prepare a trading and profit and loss account for the year ended December 31, 2011 and a balance sheet as on that date.

Account Title	Amt.(Rs)	Account Title	Amt.(Rs)
Drawings	20,000	Sales	2,20,000
Land and Buildings	12,000	Capital	1,01,000
Plant and Machinery	40,000	Discount	1,260
Carriage Inwards	100	Apprentice Premium	5,230
Wages	500	Bills Payable	1,28,870
Salary	2,000	Purchase Return	10,000
Sales Return	200
Bank Charges	200
Coal, Gas and Water	1,200
Purchase	1,50,000
Trade Expenses	3,800
Stock (Opening)	76,800
Cash at Bank	50,000
Rates and Taxes	870
Bills Receivable	24,500
Sundry Debtors	54,300
Cash in Hand	30,000
	4,66,470		4,66,470

The additional information is as under
1. Closing stock was valued at the end of the year Rs. 20,000.
2. Depreciation on plant and machinery charged @ 5% and land and building @ 10%.
3. Discount on debtors @ 3%.
4. Make a provision @ 5% on debtors for bad debts.
5. Salary outstanding was Rs. 100 and wages prepaid was Rs. 40.
6. The manager is entitled a commission of 5% on net profit after charging such commission.

Q. Prepare the trading and profit and loss account and balance sheet of M/s Shine Ltd from the following particulars.

Account Title	Amt.(Rs)	Account Title	Amt. (Rs)
Sundry Debtors	1,00,000	Bills Payable	85,550
Bad Debts	3,000	Sundry Creditors	25,000
Trade Expenses	2,500	Provisions for Bad Debts	1,500
Printing and Stationery	5,000	Return Outwards	4,500
Rent, Rates and Taxes	3,450	Capital	2,50,000
Freight	2,250	Discount Received	3,500
Sales Return	6,000	Interest Received	11,260
Motor Car	25,000	Sales	1,00,000
Opening Stock	75,550
Furniture and Fixture	15,500
Purchase	75,000
Drawings	13,560
Investments	65,500
Cash in Hand	36,000
Cash at Bank	53,000
	4,81,310		4,81,310

Adjustments
1. Closing stock was valued Rs.35,000.
2. Depredation charged on furniture and fixture @ 5%.
3. Further bad debts Rs.1,000. Make a provision for bad debts @ 5% on sundry debtors.
4. Depreciation charged on motor car @ 10%.
5. Interest on drawings @ 6%.
6. Rent, rates and taxes was outstanding Rs. 200.
7. Discount on debtors 2%.

From the following Trial Balance of M/s Andrew Traders, you are required to prepare Trading and Profit Loss Account for the year ending 31st March, 2010 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2010
Particulars	Debit Amount Rs	Credit Amount Rs
Capital		35,000
Drawings	8,000
Purchases and Sales	29,000	56,000
Opening Stock	10,000
Carriage	1,000
Salaries	3,500
Rent	1,200
Rates and Taxes	200
Sundry expenses	3,000
Sales Return	1,500
Bad debts	800
Interest received		200
R.D.D.		1,500
Discount received		300
Debtors and Creditors	21,400	7,000
Furniture	3,000
Machinery	5,000
Cash in hand	200
Cash at Bank	5,000
Wages	7,200
Total	1,00,000	1,00,000

Adjustment:

1) Closing stock was valued Rs 19,000

2) Write off Rs 1,400 for Bad debts and provide 5% R.D.D. on debtors.

3) Depreciate Machinery by 10% and Furniture by 5% p.a.

4) Rent included Rs 500 paid for house rent of proprietor.

5) Salary Rs 500 and Wages Rs 800 were outstanding.

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Particulars	Amt. (Rs.)	Particular	Amt. (Rs.)
To Opening Stock	22,800	By Sales	72,670
To Purchase	34,800	By Closing Stock	10,000
(-) Purchase Return	2,430 32,370
To Clearing Charges	940
To Carriage Inward To Factory Rent (-) Prepaid To Gas and Water	450 390 100 290 240
To Octroi To Wages (+) Outstanding Wages	60 1,770 500 2,270
To Gross Profit c/d	23,250 82,670		82,670
To Office Rent	820	By Gross Profit b/d	23,250
To Insurance (+) Outstanding Insurance	100 1,540
Salary (+) Outstanding Salary	1,590 350 1,940
To Provision for Bad Debts	480
To Depreciation on Building	2,400
To Depteciation on Plant and Machinery	180
To Net Profit	15,890
	23,250		23,250

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