Question

From the following information, prepare Profit and Loss Account for the year ended 31st March, 2019:

	₹		₹
Gross Profit	1,20,000	Discount Received	6,000
Rent	5,000	Printing and Stationery	4,000
Salary	35,000	Legal Charges	10,000
Commission Paid	19,000	Bad Debts	2,000
Interest on Loan	5,000	Loss by Fire	6,000
Advertisement	8,000	Depreciation	4,000
Interest Received	8,000	Input IGST A/c	2,000
Output IGST A/c	1,000

Answer 1

Profit and Loss Account for the year ended March 31, 2019
Dr.			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Rent	5,000	Gross Profit	1,20,000
Salary	35,000	Interest Received	8,000
Commission Paid	19,000	Discount Received	6,000
Interest on Loan	5,000
Advertisement	8,000
Printing and Stationery	4,000
Legal Charges	10,000
Bad Debts	2,000
Loss by Fire	6,000
Depreciation	4,000
Net Profit (Balancing Figure)	36,000
	1,34,000		1,34,000

Note: ₹1,000 Input IGST after adjusting against Output IGST will be shown on the asset side of the balance sheet.