Question

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

Debit Balances:	₹	Debit Balances (Contd.):	₹
Machinery	2,00,000	Opening Stock	2,00,000
Building	1,50,000	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
Bed Debts	10,000	Creditors	1,40,000
Bank	1,50,000	Sales	14,50,000
		Commission	10,000

Closing Stock was of ₹ 70,000 but its net realisable value was estimated at ₹ 60,000.

Answer 1

Financial Statement of….
Trading Account for the year ended …
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Opening Stock		2,00,000	Sales	14,50,000
Purchases		9,50,000	Closing Stock (Note)	60,000
Carriage		15,000	Gross Loss (Balancing Figure)	1,55,000
Wages		5,00,000
		16,65,000		16,65,000

Profit and Loss Account for the year ended March 31, …..
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Gross Loss		1,55,000	Commission	10,000
Bad Debts		10,000	Net Loss (Balancing Figure)	2,20,000
Rent		45,000
Sundry Expenses		20,000
		2,30,000		2,30,000

Balance Sheet as on March 31, ….
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Capital	10,00,000		Fixed Assets
Less: Net Loss	2,20,000		Building	1,50,000
Less: Drawings	90,000	6,90,000	Machinery	2,00,000
Current Liabilities			Current Assets
Creditors		1,40,000	Closing Stock	60,000
			Debtors	2,70,000
			Bank	1,50,000
		8,30,000		8,30,000

Note: Closing Stock is recorded at cost price or market price which is lower.