Question

From the following balances of M/s Nilu Sarees as on 31st March, 2016.
Prepare trading and profit and loss account and balance sheet as on date.

$\begin{array}{cccc}\text{Particulars}& \text{Amt (Rs.)}& \text{Particulars}& \text{Amt (Rs.)}\\ \text{Opening Stock}& 10,000& \text{Sales}& 2,28,000\\ \text{Purchases}& 78,000& \text{Capital}& 70,000\\ \text{Carriage Inwards}& 2,500& \text{Interest}& 7,000\\ \text{Salaries}& 30,000& \text{Commission}& 8,000\\ \text{Commission}& 10,000& \text{Creditors}& 28,000\\ \text{Wages}& 11,000& \text{Bills Payable}& 23,700\\ \text{Rent and Taxes}& 2,800& & \\ \text{Repair}& 5,000& & \\ \text{Telephone Expenses}& 1,400& & \\ \text{Legal Charges}& 1,500& & \\ \text{Sundry Expenses}& 2,500& & \\ \text{Cash in Hand}& 12,000& & \\ \text{Debtors}& 30,000& & \\ \text{Machinery}& 60,000& & \\ \text{Investments}& 90,000& & \\ \text{Drawings}& 18,000& & \end{array}$

Closing stock as on 31st March, 2016 Rs. 22,000.

Answer 1

Trading and Profit and Loss Account
$\begin{array}{cccccccc}\text{Dr.}& & & & \text{for the year ended 31st March, 2016}& & & \text{Cr.}\end{array}$
$\begin{array}{cccc}\text{Particulars}& \text{Amt (Rs.)}& \text{Particulars}& \text{Amt (Rs.)}\\ \text{Opening Sleek}& 10,000& \text{Sales}& 2,28,000\\ \text{Purchases}& 78,000& \text{Closing Stock}& 22,000\\ \text{Carriage Inwards}& 2,500& & \\ \text{Wages}& 11,000& & \\ \text{Gross Profit Transferred}& 1,48,500& & \\ \text{to Profit and loss A/c}& & & \\ & \overline{\underset{–}{\underset{–}{2,50,000}}}& & \overline{\underset{–}{\underset{–}{2,50,000}}}\\ \text{Salaries}& 30,000& \text{Gross Profit Transferred from Trading A/c}& 1,48,500\\ \text{Commission}& 10,000& \text{Interest}& 7,000\\ \text{Rent and Taxes}& 2,800& \text{Commission}& 8,000\\ \text{Repair}& 5,000& & \\ \text{Telephone Expenses}& 1,400& & \\ \text{Legal Charges}& 1,500& & \\ \text{Sundry Expenses}& 2,500& & \\ \text{Net Profit transferred to Capital A/c}& 1,10,300& & \\ & \overline{\underset{–}{\underset{–}{1,63,500}}}& & \overline{\underset{–}{\underset{–}{1,63,500}}}\end{array}$

Balance Sheet
as at 31st March, 2016
$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Amt. (Rs.)}& \text{Assets}& \text{Amt. (Rs.)}\\ \text{Capital}70,000& & \text{Machinery}& 60,000\\ (+)\text{Net Profit}\underset{–}{1,10,300}& & \text{Investment}& 90,000\\ 1,80,300& & \text{Debtors}& 30,000\\ (-)\text{Drawings}\underset{–}{18,000}& 1,62,300& \text{Cash in Hand}& 12,000\\ \text{Creditors}& 28,000& \text{Closing Stock}& 22,000\\ \text{Bills Payable}& 23,700& & \\ & \overline{\underset{–}{\underset{–}{2,14,000}}}& & \overline{\underset{–}{\underset{–}{2,14,000}}}\end{array}$