From the following Trial Balance and other information prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date:
Particulars
Dr.
(₹)
Cr.
(₹)
Sundry Debtors
................................................................................
3,20,000
…
Stock on 1st April, 2017
................................................................................
2,20,000
…
Cash in Hand
................................................................................
350
…
Cash at Bank
................................................................................
15,450
…
Plant and Machinery
................................................................................
1,75,000
…
Sundry Creditors
................................................................................
…
1,06,500
General Expenses
................................................................................
10,750
…
Sales
................................................................................
…
13,45,000
Salaries
................................................................................
22,250
…
Carriage Outwards
................................................................................
4,000
…
Rent
................................................................................
9,000
…
Bills Payable
................................................................................
…
75,000
Purchases
................................................................................
11,88,700
…
Discounts
................................................................................
11,000
…
Premises
................................................................................
3,45,000
…
Capital on 1st April 2017
................................................................................
…
7,95,000
Total
23,21,500
23,21,500
Stock on 31st March, 2018 was ₹ 1,24,500. Rent was unpaid to the extent of ₹ 850 and ₹ 1,500 were outstanding for General Expenses; ₹ 4,000 are to be written off as bad debts out of the above debtors; and 5% is to be provided for doubtful debts. Depreciate Plant and Machinery by 10% and Business Premises by 2%.
Manager is entitled to a commission of 5% on net profit after charging his commission.
|
Particulars
|
Dr.
(₹)
|
Cr.
(₹)
|
|
| Sundry Debtors | ................................................................................ |
3,20,000
|
…
|
| Stock on 1st April, 2017 | ................................................................................ |
2,20,000
|
…
|
| Cash in Hand | ................................................................................ |
350
|
…
|
| Cash at Bank | ................................................................................ |
15,450
|
…
|
| Plant and Machinery | ................................................................................ |
1,75,000
|
…
|
| Sundry Creditors | ................................................................................ |
…
|
1,06,500
|
| General Expenses | ................................................................................ |
10,750
|
…
|
| Sales | ................................................................................ |
…
|
13,45,000
|
| Salaries | ................................................................................ |
22,250
|
…
|
| Carriage Outwards | ................................................................................ |
4,000
|
…
|
| Rent | ................................................................................ |
9,000
|
…
|
| Bills Payable | ................................................................................ |
…
|
75,000
|
| Purchases | ................................................................................ |
11,88,700
|
…
|
| Discounts | ................................................................................ |
11,000
|
…
|
| Premises | ................................................................................ |
3,45,000
|
…
|
| Capital on 1st April 2017 | ................................................................................ |
…
|
7,95,000
|
| Total |
23,21,500
|
23,21,500
|
|
Stock on 31st March, 2018 was ₹ 1,24,500. Rent was unpaid to the extent of ₹ 850 and ₹ 1,500 were outstanding for General Expenses; ₹ 4,000 are to be written off as bad debts out of the above debtors; and 5% is to be provided for doubtful debts. Depreciate Plant and Machinery by 10% and Business Premises by 2%.
Manager is entitled to a commission of 5% on net profit after charging his commission.
Financial Statement
Trading Account
for the year ended March 31, 2018
Dr.
Cr.
Particulars
Amount
(Rs)
Particulars
Amount
(Rs)
Opening Stock
2,20,000
Sales
13,45,000
Purchases
11,88,700
Closing Stock
1,24,500
Gross Profit (Balancing Figure)
60,800
14,69,500
14,69,500
Profit and Loss Account
for the year ended March 31, 2018
Dr.
Cr.
Particulars
Amount
(Rs)
Particulars
Amount
(Rs)
Rent
9,000
Gross Profit
60,800
Add: Outstanding Rent
850
9,850
Net Loss (Balancing Figure)
42,750
General Expenses
10,750
Add: Outstanding General Expenses
1,500
12,250
Bad Debts
4,000
Add: Provision for Debts
15,800
19,800
Depreciation on
Plant and Machinery
17,500
Business Premises
6,900
24,400
Salaries
22,250
Carriage Outwards
4,000
Discount
11,000
1,03,550
1,03,550
Balance Sheet
as on March 31, 2018
Liabilities
Amount
(Rs)
Assets
Amount
(Rs)
Capital
7,95,000
Fixed Assets
Less: Net Loss
(42,750)
7,52,250
Plant and Machinery
1,75,000
Current Liabilities
Less: 10% Depreciation
(17,500)
1,57,500
Sundry Creditors
1,06,500
Premises
3,45,000
Bills Payable
75,000
Less: 2% Depreciation
(6,900)
3,38,100
Rent Outstanding
850
Current Assets
General Expenses Outstanding
1,500
Closing Stock
1,24,500
Sundry Debtors
3,20,000
Less: Bad Debts
(4,000)
3,16,000
Less: 5% Provision for Doubtful Debts
(15,80)
3,00,200
Cash at Bank
15,450
Cash in Hand
350
9,36,100
9,36,100
Note: In the question, Manager Commission is given as 5% on Net Profit after charging commission. But, during the year the firm had a Net Loss of Rs 42,750, therefore, manager commission is not payable.
|
Financial Statement Trading Account for the year ended March 31, 2018 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
|
Opening Stock |
2,20,000 |
Sales |
13,45,000 |
|
Purchases |
11,88,700 |
Closing Stock |
1,24,500 |
|
Gross Profit (Balancing Figure) |
60,800 |
|
|
|
|
14,69,500 |
|
14,69,500 |
|
|
|
|
|
|
Profit and Loss Account for the year ended March 31, 2018 |
||||||
|
Dr. |
|
|
|
Cr. |
||
|
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
|||
|
Rent |
9,000 |
|
Gross Profit |
60,800 |
||
|
Add: Outstanding Rent |
850 |
9,850 |
Net Loss (Balancing Figure) |
42,750 |
||
|
General Expenses |
10,750 |
|
|
|
||
|
Add: Outstanding General Expenses |
1,500 |
12,250 |
|
|
||
|
Bad Debts |
4,000 |
|
|
|
||
|
Add: Provision for Debts |
15,800 |
19,800 |
|
|
||
|
Depreciation on |
|
|
|
|||
|
Plant and Machinery |
17,500 |
|
|
|
||
|
Business Premises |
6,900 |
24,400 |
|
|
||
|
Salaries |
22,250 |
|
|
|||
|
Carriage Outwards |
4,000 |
|
|
|||
|
Discount |
11,000 |
|
|
|||
|
|
1,03,550 |
|
1,03,550 |
|||
|
|
|
|
|
|||
|
Balance Sheet as on March 31, 2018 |
|||||
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
||
|
Capital |
7,95,000 |
|
Fixed Assets |
|
|
|
Less: Net Loss |
(42,750) |
7,52,250 |
Plant and Machinery |
1,75,000 |
|
|
Current Liabilities |
|
Less: 10% Depreciation |
(17,500) |
1,57,500 |
|
|
Sundry Creditors |
1,06,500 |
Premises |
3,45,000 |
|
|
|
Bills Payable |
75,000 |
Less: 2% Depreciation |
(6,900) |
3,38,100 |
|
|
Rent Outstanding |
850 |
Current Assets |
|
||
|
General Expenses Outstanding |
1,500 |
Closing Stock |
1,24,500 |
||
|
|
|
Sundry Debtors |
3,20,000 |
|
|
|
|
|
Less: Bad Debts |
(4,000) |
|
|
|
|
|
|
3,16,000 |
|
|
|
|
|
Less: 5% Provision for Doubtful Debts |
(15,80) |
3,00,200 |
|
|
|
|
Cash at Bank |
15,450 |
||
|
|
|
Cash in Hand |
350 |
||
|
|
9,36,100 |
|
9,36,100 |
||
|
|
|
|
|
||
Note: In the question, Manager Commission is given as 5% on Net Profit after charging commission. But, during the year the firm had a Net Loss of Rs 42,750, therefore, manager commission is not payable.
