Question

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.

Answer 1

Trading Account
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Opening Stock		2,00,000	Sales	14,50,000
Purchases		9,50,000	Closing Stock	30,000
Wages		5,00,000	Gross Loss (Balancing Figure)	1,85,000
Carriage		15,000
		16,65,000		16,65,000

Profit and Loss Account
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Gross Loss		1,85,000
Rent		45,000	Net Loss (Balancing Figure)	2,50,000
Sundry Expenses		20,000
		2,50,000		2,50,000

Balance Sheet
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Capital	10,00,000		Fixed Assets
Less: Drawings	(90,000)		Machinery	3,50,000
Less: Net Loss	(2,50,000)	6,60,000	Current Assets
Current Liabilities			Closing Stock	30,000
Creditors		1,40,000	Debtors	2,70,000
			Bank	1,50,000
		8,00,000		8,00,000