Question

From the following balances of M/s Nilu Sarees as on March 31, 2011. Prepare Trading and Profit and Loss account and balance sheet as on date

$\begin{array}{cccc}\text{Account Title}& \text{Debit (Rs.)}& \text{Account Title}& \text{Credit (Rs.)}\\ \text{Opening Stock}& 10,000& \text{Sales}& 2,28,000\\ \text{Purchase}& 78,000& \text{Capital}& 70,000\\ \text{Carriage Inwards}& 2,500& \text{Interest}& 7,000\\ \text{Salaries}& 30,000& \text{Commission}& 8,000\\ \text{Commission}& 10,000& \text{Creditors}& 28,000\\ \text{Wages}& 11,000& \text{Bills Payable}& 2,370\\ \text{Rent and Taxes}& 2,800& & \\ \text{Repair}& 5,000& & \\ \text{Telephone Expenses}& 1,400& & \\ \text{Legal Charges}& 1,500& & \\ \text{Sundry Expenses}& 2,500& & \\ \text{Cash in Hand}& 12,000& & \\ \text{Debtors}& 30,000& & \\ \text{Machinery}& 60,000& & \\ \text{Investments}& 90,000& & \\ \text{Drawings}& 18,000& & \end{array}$
Closing stock as on March 31, 2011 Rs. 22,000.

Answer 1

Trading and Profit and Loss Account
as on 31st March, 2011
$\begin{array}{cccc}\text{Particulars}& \text{Amt. (Rs.)}& \text{Particulars}& \text{Amt. (Rs.)}\\ \text{Opening Stock}& 10,000& \text{Sales}& 2,28,000\\ \text{Purchase}& 78,000& \text{Closing Stock}& 22,000\\ \text{Carriage Inwards}& 2,500& & \\ \text{Wages}& 11,000& & \\ \text{Gross Profit c/d}& \underset{–}{1,48,500}& & \underset{–}{}\\ & \underset{–}{\underset{–}{2,50,000}}& & \underset{–}{\underset{–}{2,50,000}}\\ \text{Salaries}& 30,000& \text{Gross Profit b/d}& 1,48,500\\ \text{Commission}& 10,000& \text{Interest}& 7,000\\ \text{Rent and Taxes}& 2,800& \text{Commission}& 8,000\\ \text{Repair}& 5,000& & \\ \text{Telephone Expenses}& 1,400& & \\ \text{Legal Charges}& 1,500& & \\ \text{Sundry Expenses}& 2,500& & \\ \text{Net Profit}& \underset{–}{1,10,300}& & \underset{–}{}\\ & \underset{–}{\underset{–}{1,63,500}}& & \underset{–}{\underset{–}{1,63,500}}\end{array}$

Balance Sheet
as on 31st March, 2011
$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Amt. (Rs.)}& \text{Assets}& \text{Amt. (Rs.)}\\ \text{Capital}70,000& & \text{Machinery}& 60,000\\ \text{(+)Net Profit}\underset{–}{1,10,300}& & \text{Investment}& 90,000\\ 1,80,300& & \text{Debtors}& 30,000\\ \text{(-)Drawings}\underset{–}{18,000}& 1,62,300& \text{Cash in Hand}& 12,000\\ \text{Creditors}& 28,000& \text{Closing Stock}& 22,000\\ \text{Bills payable}& 2,370& & \\ \text{Suspense}& \underset{–}{21,330}& & \underset{–}{}\\ & \underset{–}{\underset{–}{2,14,000}}& & \underset{–}{\underset{–}{2,14,000}}\\ & & & \end{array}$