From the following balances of the Ledger of Sh. Akhileshwar Singh, prepare Trading and Profit & Loss Account and Balance Sheet :-

Dr. ₹ Cr. ₹

Stock on 1-4-2016 30,000

Stock on 31-3-2017 46,200

Purchases and Sales 2,30,000 3,45,800

Returns 12,500 15,200

Commission on Purchases 1,200

Freight and Carriage 26,000

Wages and Salary 10,800

Fire Insurance Premium 820

Business Premises 40,000

Sundry Debtors 26,100

Sundry Creditors 26,700

Goodwill 8,000

Patents 8,400

Coal, Gas and Power 12,100

Printing and Stationery 2,100

Postage 710

Travelling Expenses 4,250

Drawings 7,200

Depreciation 1,000

General Expenses 8,350

Capital 89,760

Investments 8,000

Interest on Investments 800

Cash in Hand 2,570

Banker's Account 5,200

Commission 4,600 4,400

Loan on Mortgage 30,000

Interest on Loan 3,000

B/P 2,280

B/R 4,540

Income Tax 3,000

Horses and Carts 20,300

Discount on Purchases 1,600

5,21,740 5,21,740

	Dr. ₹	Cr. ₹
Stock on 1-4-2016	30,000
Stock on 31-3-2017	46,200
Purchases and Sales	2,30,000	3,45,800
Returns	12,500	15,200
Commission on Purchases	1,200
Freight and Carriage	26,000
Wages and Salary	10,800
Fire Insurance Premium	820
Business Premises	40,000
Sundry Debtors	26,100
Sundry Creditors		26,700
Goodwill	8,000
Patents	8,400
Coal, Gas and Power	12,100
Printing and Stationery	2,100
Postage	710
Travelling Expenses	4,250
Drawings	7,200
Depreciation	1,000
General Expenses	8,350
Capital		89,760
Investments	8,000
Interest on Investments		800
Cash in Hand	2,570
Banker's Account		5,200
Commission	4,600	4,400
Loan on Mortgage		30,000
Interest on Loan	3,000
B/P		2,280
B/R	4,540
Income Tax	3,000
Horses and Carts	20,300
Discount on Purchases		1,600
	5,21,740	5,21,740

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Solution

Financial Statement of Sh. Akhilesh Singh

Trading Account

for the year ended March 31,2017

Dr. Cr.

Particulars Amount (₹) Particulars Amount (₹)

Opening Stock 30,000 Sales 3,45,800

Purchases 2,30,000
Less: Sales Return
12,500 3,33,300

Less: Purchases Return
15,200 2,14,800

Freight and Carriage 26,000

Commission on Purchases 1,200

Wages & Salaries 10,800

Coal, Gas and Power 12,100

Gross Profit (Balancing Figure) 38,400

3,33,300 3,33,300

Profit and Loss Account

for the year ended March. 31, 2017

Dr. Cr.

Particulars Amount (₹) Particulars Amount (₹)

Fire Insurance Premium 820 Gross Profit 38,400

Printing & Stationery 2,100 Interest on Investments 800

Postage & Telegram 710 Commission Received 4,400

Travelling Expenses 4,250 Discount Received 1,600

Depreciation 1,000

General Expenses 8,350

Commission 4,600

Interest on Loan 3,000

Net Profit 20,370

45,200 45,200

Balance Sheet
as on March 31, 2017

Liabilities Amount (₹) Assets Amount (₹)

Capital 89,760 Fixed Assets

Add: Net Profit
20,370 Goodwill 8,000

Less: Income tax
3,000 Business Premises 40,000

Less: Drawings
7,200 99,930 Patents 8,400

Loan on Mortgage 30,000 Horses and Carts 20,300

Current Liabilities Current Assets

Creditors 26,700 Closing Stock 46,200

Banker’s Account 5,200 Debtors 26,100

Bills Payable 2,280 Cash in Hand 2,570

Bills Receivable 4,540

Investment 8,000

1,64,110 1,64,110

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Similar questions

Prepare trading and profit and loss account and balance sheet of M/s Royal Traders from the following balances as on March 31, 2017.

Debit balances	Amount Rs	Credit balances	Amount Rs
Stock	20,000	Sales	2,45,000
Cash	5,000	Creditors	10,000
Bank	10,000	Bills payable	4,000
Carriage on purchases	1,500	Capital	2,00,000
Purchases	1,90,000
Drawings	9,000
Wages	55,000
Machinery	1,00,000
Debtors	27,000
Postage	300
Sundry expenses	1,700
Rent	4,500
Furniture	35,000

Closing stock Rs 8,000.

Q. From the following balances, as on 31st March, 2018, prepare Trading and Profit and Loss Account and Balance Sheet:

	₹		₹
Capital Account	1,00,000	Returns Outward	5,000
Plant and Machinery	40,000	Rent	4,000
Sundry Debtors	24,000	Sales	1,64,000
Sundry Creditors	12,000	Manufacturing Expenses	8,000
Life Insurance Premium	12,000	Trade Expenses	7,000
Purchases	1,05,000	Bad Debts	2,000
Wages	50,000	Carriage	1,500
Bank	10,000	Bills Payable	7,000
Repairs	500	Returns Inward	4,000
Stock (1st April, 2017)	20,000

Closing Stock on 31st March, 2018 was valued at ₹ 14,500.

The following is the Trial Balance of Mr. Deepak as on March 31, 2017. You are required to prepare trading account, profit and loss account and a balance sheet as on date:

Account title	Debit Amount Rs	Account title	Credit Amount Rs
Drawings	36,000	Capital	2,50,000
Insurance	3,000	Bills payable	3,600
General expenses	29,000	Creditors	50,000
Rent and taxes	14,400	Discount received	10,400
Lighting (factory)	2,800	Purchases return	8,000
Travelling expenses	7,400	Sales	4,40,000
Cash in hand	12,600
Bills receivable	5,000
Sundry debtors	1,04,000
Furniture	16,000
Plant and Machinery	1,80,000
Opening stock	40,000
Purchases	1,60,000
Sales return	6,000
Carriage inwards	7,200
Carriage outwards	1,600
Wages	84,000
Salaries	53,000

Closing stock Rs 35,000.

Q. The following Trial Balance has been extracted from the books of Shri Santosh Kumar as at 31st March, 2017:-

	Dr. (₹)	Cr. (₹)
Plant and Machinery	1,00,000
Furniture	12,000
Capital Account		1,91,000
Household Expenses	16,000
Sales		4,68,000
Loose Tools	20,000
Goodwill	10,000
Opening Stock (1-4-2016)	20,000
Returns Outward		4,000
Discount		6,000
Purchases	2,12,000
Returns Inwards	8,000
Wages	1,00,000
Salaries	60,000
Outstanding Salaries		5,000
Investments at 10% p.a.	6,000
Interest on Investments		300
Sundry Creditors		24,000
Miscellaneous Receipts		2,000
Carriage Inwards	12,000
General Expenses and Insurance	39,000
Advertisement Expenses	15,000
Postage	4,000
Sundry Debtors	56,000
B. Barua	2,000
Cash Balance	14,000
Bank		3,200
Suspense Account		2,500

	7,06,000	7,06,000

The following additional information is available:-
(I) Stock on 31st March, 2017 was ₹ 30,800.
(II) Depreciation is to be charged on Plant and Machinery at 5% and Furniture at 6%. Loose Tools are revalued at ₹ 16,000.
(III) Create a provision of 2% for Discount on Debtors.
(IV) Salary of ₹ 2,000 paid to Shri B. Barua, a temporary employee, stands debited to his personal account and it is to be corrected.
(V) Write off 1/5th of advertisement expenses.
You are to prepare Trading and Profit & Loss Account for the year ended 31st March, 2017 and a Balance Sheet as at that date.

Q. From the following balances, prepare Trading and Profit and Loss Account and Balance Sheet:

Debit Balances:	₹	Debit Balances (Contd.):	₹
Machinery	3,50,000	Rent	45,000
Debtors	2,70,000	Sundry Expenses	20,000
Drawings	90,000	Carriage	15,000
Purchases	9,50,000	Credit Balances:
Wages	5,00,000	Capital	10,00,000
Bank	1,50,000	Creditors	1,40,000
Opening Stock	2,00,000	Sales	14,50,000

Closing Stock was valued at ₹ 30,000.

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Financial Statement of Sh. Akhilesh Singh
Trading Account for the year ended March 31,2017
Dr.						Cr.
Particulars		Amount (₹)	Particulars		Amount (₹)
Opening Stock		30,000	Sales	3,45,800
Purchases	2,30,000		Less: Sales Return	12,500	3,33,300
Less: Purchases Return	15,200	2,14,800
Freight and Carriage		26,000
Commission on Purchases		1,200
Wages & Salaries		10,800
Coal, Gas and Power		12,100
Gross Profit (Balancing Figure)		38,400
		3,33,300			3,33,300

Profit and Loss Account for the year ended March. 31, 2017
Dr.				Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Fire Insurance Premium	820	Gross Profit	38,400
Printing & Stationery	2,100	Interest on Investments	800
Postage & Telegram	710	Commission Received	4,400
Travelling Expenses	4,250	Discount Received	1,600
Depreciation	1,000
General Expenses	8,350
Commission	4,600
Interest on Loan	3,000
Net Profit	20,370
	45,200		45,200

Balance Sheet as on March 31, 2017
Liabilities		Amount (₹)	Assets	Amount (₹)
Capital	89,760		Fixed Assets
Add: Net Profit	20,370		Goodwill	8,000
Less: Income tax	3,000		Business Premises	40,000
Less: Drawings	7,200	99,930	Patents	8,400
Loan on Mortgage		30,000	Horses and Carts	20,300

Current Liabilities			Current Assets
Creditors		26,700	Closing Stock	46,200
Banker’s Account		5,200	Debtors	26,100
Bills Payable		2,280	Cash in Hand	2,570
			Bills Receivable	4,540
			Investment	8,000

		1,64,110		1,64,110