Question

From the following information, prepare the profit and loss account for the ending on 31st March, 2016

$\begin{array}{cccc}\text{Particulars}& \text{Amt (Rs.)}& \text{Particulars}& \text{Amt (Rs.)}\\ \text{Gross profit}& 62,00,000& \text{Salaries and wages}& 20,00,000\\ \text{Discount received}& 1,00,000& \text{Discount allowed}& 2,00,000\\ \text{Interest on loan paid}& 2,50,000& \text{Interest received}& 3,00,000\\ \text{Commission received}& 2,00,000& \text{Commission to salesmen}& 1,50,000\\ \text{Rent, rates and taxes}& 4,00,000& \text{Rent received}& 1,00,000\\ \text{Fire insurance premium}& 3,60,000& \text{Carriage outwards}& 1,00,000\\ \text{Freight outwards}& 50,000& \text{Repairs and maintenance}& 60,000\\ \text{Printing and stationery}& 60,000& \text{Travelling expenses}& 1,60,000\\ \text{Entertainment expenses}& 1,20,000& \text{Water and electricity}& 1,20,000\\ \text{Postage and telegram}& 50,000& \text{Advertising and publicity}& 4,00,000\\ \text{Sales promotion expenses}& 40,000& \text{Telephone expenses}& 1,00,000\\ \text{Bad debts}& 1,00,000& \text{Packing expenses}& 50,000\\ \text{Audit fees}& 2,00,000& \text{Bank charges}& 40,000\\ \text{Depreciation on furniture:}& & \text{Legal charges}& 1,00,000\\ \text{Sales office}& 1,00,000& \text{Miscellaneous expenses}& 1,00,000\\ \text{Administrative office}& 2,00,000& \text{Loss on sale of fixed assets}& 50,000\\ \text{Miscellaneous incomes}& 2,00,000& \text{Loss by theft}& 5,00,000\\ \text{Profit on sale of fixed assets}& 8,50,000& \text{Dividend received on shares}& 30,000\\ \text{Loss by fire}& 1,00,000& \text{Income from investments}& 20,000\\ \text{Loss by embezzlement}& 1,00,000& & \\ & & & \end{array}$

Answer 1

Profit and Loss Account
$\begin{array}{cccccccc}\text{Dr.}& & & & \text{for the year ended 31st March,2016}& & & \text{Cr.}\end{array}$
$\begin{array}{cccc}\text{Particulars}& \text{Amt (Rs.)}& \text{Particulars}& \text{Amt (Rs.)}\\ \text{Salaries and Wages}& 20,00,000& \text{Gross Profit b/d}& 62,00,000\\ \text{Rent, Rates and Taxes}& 4,00,000& \text{Discount Received}& 1,00,000\\ \text{Fire Insurance Premium}& 3,60,000& \text{Interest Received}& 3,00,000\\ \text{Repairs and Maintenance}& 60,000& \text{Commission Received}& 2,00,000\\ \text{Printing and Stationery}& 60,000& \text{Rent Received}& 1,00,000\\ \text{Water and Electricity}& 1,20,000& \text{Profit on Sale of Fixed Assests}& 8,50,000\\ \text{Postage and Telegram}& 50,000& \text{Income from Investments}& 20,000\\ \text{Telephone Expenses}& 1,00,000& \text{Miscelianeous income}& 2,00,000\\ \text{Depreciation on Furniture}& 3,00,000& \text{Dividend on Shares}& 30,000\\ \text{Audit Fees}& 2,00,000& & \\ \text{Bank Charges}& 40,000& & \\ \text{Legal Charges}& 1,00,000& & \\ \text{Miscellaneous Expenses}& 1,00,000& & \\ \text{Discount Allowed}& 2,00,000& & \\ \text{Carriage Outwards}& 1,00,000& & \\ \text{Freight Outwards}& 50,000& & \\ \text{Commission to Salesmen}& 1,50,000& & \\ \text{Travelling Expenses}& 1,60,000& & \\ \text{Entertainment Expenses}& 1,20,000& & \\ \text{Sales Promotion Expenses}& 40,000& & \\ \text{Advertising and Publicity}& 4,00,000& & \\ \text{Bad Debts}& 1,00,000& & \\ \text{Packing Expenses}& 50,000& & \\ \text{Interest on Loan}& 2,50,000& & \\ \text{Loss on Sale of Fixed Assets}& 50,000& & \\ \text{Loss by Fire}& 1,00,000& & \\ \text{Loss by Theft}& 5,00,000& & \\ \text{Loss by Embezzlement}& 1,00,000& & \\ \text{Net Profit c/d}& 17,40,000& & \\ & \underset{–}{\overline{80,00,000}}& & \underset{–}{\overline{80,00,000}}\end{array}$