From the following balances, taken from the books of M/s Dwarka Parshad & Sons as at 31st March 2017, prepare a Trial Balance in proper form :−

Name of Accounts
(₹)
Name of Accounts

(₹)

Cash in Hand 4,500 Machinery 24,000

Bank Overdraft 8,000 Land & Buildings 50,000

Opening Stock 20,000 Debtors 18,400

Purchases 80,000 Creditors 8,500

Purchases Returns 2,000 Bills Receivable 2,850

Sales 1,30,000 Bills Payable 1,650

Sales Returns 5,000 Capital 60,000

Travelling Expenses 1,800 Drawings 6,000

Discount Allowed 600 Rent 3,700

Discount Received 1,500 Salaries 3,600

Loan (Cr.) 10,000

Interest on Loan 1,200

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Solution

Books of Sh. Dwarka Prashad

Trial Balance

as on March 31, 2017

Name of Accounts
L.F.
Debit

Balance

(Rs)

Credit

Balance

(Rs)

Cash in Hand

4,500

Overdraft

8,000

Opening Stock

20,000

Purchases

80,000

Purchases Return

2,000

Sales

1,30,000

Sales Return

5,000

Travelling Expenses

1,800

Discount Allowed

600

Discount Received

1,500

Machinery

24,000

Land & Building

50,000

Debtors

18,400

Creditors

8,500

Bills Receivable

2,850

Bills Payable

1,650

Capital

60,000

Drawings

6,000

Rent

3,700

Salary

3,600

Loan

10,000

Interest on Loan

1,200
–

Total

2,21,650

2,21,650

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Similar questions

Q. Prepare a Trial Balance from the following balances taken as at 31st March 2017 :−

	(₹)		(₹)
Capital	2,50,000	Purchases	2,15,300
Drawings	24,000	Sales	3,80,000
Debtors	57,000	Miscellaneous Expenses	8,200
Creditors	28,500	Miscellaneous Receipts	3,600
Land & Building	1,80,000	Bad Debts	7,100
Plant	1,20,000	Bills Receivable	5,000
Stock on 1-4-2016	22,800	Loan from X	20,000
Factory Expenses	16,600	Interest on X's Loan	3,000
Office Expenses	7,700	Cash in hand	8,400
Purchases Return	6,000	Goodwill	10,000
Stationery	500
Freight	2,500

Q. Following balances were extracted from the books of Ravinder Associates as at 31st March, 2017 :

	(₹)		(₹)
Sundry Debtors	4,10,000	Stock (April 1, 2016)	2,30,000
Sundry Creditors	80,000	Premises	12,00,000
Rent and Taxes	48,000	Fixtures & Fittings	3,10,000
Purchases	34,00,000	Bad Debts written off	8,000
Sales	56,00,000	Rent received from sub-let of part of premises	30,000
Trade Expenses	12,000	Loan from Mukul	1,50,000
Returns Outwards	80,000	Interest on Mukul's Loan	15,000
Returns Inwards	1,20,000	Drawings	40,000
Expenses	4,000	Cash in hand	75,000
Motor Vehicles	6,50,000	Stock on 31st March, 2017
Electricity	25,000	(not adjusted)	3,80,000

You are required to prepare the trial balance treating the difference as his capital.

Q. On 31st March, 2017 the following Trial Balance was extracted from the books of Mohan:-

	Dr. (₹)	Cr. (₹)
Capital		30,000
Drawings	5,000
Debtors and Creditors	20,000	10,000
Bank Loan		9,500
Interest on Loan	300
Cash	2,000
Provision for Bad-Debts		700
Stock 1-4-2016	6,800
Motor Vehicles	10,000
Bank	3,500
Land and Buildings	12,000
Bad-Debts	500
Purchases and Sales	66,000	1,10,000
Returns	8,000	1,500
Carriage Outward	2,500
Carriage Inward	3,000
Salaries	9,000
Rent and Insurance	3,000
Advertising	3,500
Discount		500
General Expenses	3,400
B/R and B/P	6,000	2,000
Rent received		300
	1,64,500	1,64,500

Prepare Trading and Profit & Loss Account for the year ended 31st March, 2017 and Balance Sheet as at that date after taking into account the following:-
(a) Private purchases amounting to ₹ 4,000 have been debited to Purchases Account.
(b) Depreciate Land and Buildings at

2 \frac{1}{2} %

and Motor Vehicles at 20%.
(c) Salaries outstanding ₹ 200.
(d) Prepaid Insurance ₹ 200.
(e) Provision for Doubtful Debts is to be maintained at 5% on Debtors.
(f) Stock on 31st March, 2017 was valued at ₹ 7,000.

Q. From the following Trial Balance of M/s Arjun and Sons as on 31st March, 2018, prepare Trading and Profit and Loss Account and Balance Sheet:

Heads of Accounts		Debit Balances (₹)	Credit Balances (₹)
Drawings	................................................................................	1,80,000	…
Capital	................................................................................	…	8,00,000
Purchases	................................................................................	8,26,000	...
Sales	................................................................................	…	15,50,000
Opening Stock	................................................................................	4,20,000	…
Returns Outward	................................................................................	…	16,000
Carriage Inwards	................................................................................	12,000	…
Wages	................................................................................	40,000	…
Power	................................................................................	60,000	…
Machinery	................................................................................	5,00,000	…
Furniture	................................................................................	1,40,000	…
Rent	................................................................................	2,20,000	…
Salary	................................................................................	1,50,000	…
Insurance	................................................................................	36,000	…
8% Bank Loan	................................................................................	…	2,50,000
Debtors	................................................................................	2,06,000	…
Creditors	................................................................................	…	1,89,000
Cash in Hand	................................................................................	15,000	…
Total		28,05,000	28,05,000

Adjustments:
(i) Closing Stock ₹ 6,40,000.
(ii) Wages Outstanding ₹ 24,000.
(iii) Bad Debts ₹ 6,000 and Provision for Bad and Doubtful Debts to 5% on Debtors.
(iv) Rent is paid for 11 months.
(v) Loan from bank was taken on 1^st October, 2017.
(vi) Provide Depreciation on Machinery @ 10% p.a.
(vii) Provide Manager’s Commission at 10% on net profit after charging such commission.

Q. From the following Trial Balance of M/s. Shradha & Sons as on 31st March, 2018, prepare Trading and Profit and Loss Account and Balance Sheet.

Heads of Accounts		Dr. Balance (₹)	Cr. Balance (₹)
Capital	................................................................................	…	80,000
Drawings	................................................................................	18,000	…
Sales	................................................................................	…	1,55,000
Purchases	................................................................................	82,600	…
Stock (1st April, 2017)	................................................................................	42,000	…
Returns Outward	................................................................................	…	1,600
Carriage Inwards	................................................................................	1,200	…
Wages	................................................................................	4,000	…
Power	................................................................................	6,000	…
Machinery	................................................................................	50,000	…
Furniture	................................................................................	14,000	…
Rent	................................................................................	22,000	…
Salary	................................................................................	15,000	…
Insurance	................................................................................	3,600	…
8% Bank Loan	................................................................................	…	25,000
Debtors	................................................................................	20,600	…
Creditors	................................................................................	…	18,900
Cash in Hand	................................................................................	1,500	…
Total		2,80,500	2,80,500

Adjustments:
(i) Closing Stock ₹ 64,000.
(ii) Wages outstanding ₹ 2,400.
(iii) Bad Debts ₹ 600.
(iv) Provision for Doubtful Debts to be 5%.
(v) Rent is paid for 11 months.
(vi) Insurance premium is paid per annum, ended 31st May, 2018.
(vii) Loan from the bank was taken on 1st October, 2017.
(viii) Provide Depreciation on machinery @ 10% and on Furniture @ 5%.

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Name of Accounts	(₹)	Name of Accounts	(₹)
Cash in Hand	4,500	Machinery	24,000
Bank Overdraft	8,000	Land & Buildings	50,000
Opening Stock	20,000	Debtors	18,400
Purchases	80,000	Creditors	8,500
Purchases Returns	2,000	Bills Receivable	2,850
Sales	1,30,000	Bills Payable	1,650
Sales Returns	5,000	Capital	60,000
Travelling Expenses	1,800	Drawings	6,000
Discount Allowed	600	Rent	3,700
Discount Received	1,500	Salaries	3,600
		Loan (Cr.)	10,000
		Interest on Loan	1,200

Books of Sh. Dwarka Prashad Trial Balance as on March 31, 2017
Name of Accounts	L.F.	Debit Balance (Rs)	Credit Balance (Rs)
Cash in Hand		4,500
Overdraft			8,000
Opening Stock		20,000
Purchases		80,000
Purchases Return			2,000
Sales			1,30,000
Sales Return		5,000
Travelling Expenses		1,800
Discount Allowed		600
Discount Received			1,500
Machinery		24,000
Land & Building		50,000
Debtors		18,400
Creditors			8,500
Bills Receivable		2,850
Bills Payable			1,650
Capital			60,000
Drawings		6,000
Rent		3,700
Salary		3,600
Loan			10,000
Interest on Loan		1,200	–
Total		2,21,650	2,21,650