Question

From the following trial balance of Mr. A Lal, prepare Trading and Profit and Loss account and Balance sheet as on March 31, 2011.
$\begin{array}{ccc}\text{Account Title}& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ \text{Stock as on April 1, 2010}& 16,000& \\ \text{Purchase and Sales}& 67,600& 1,12,000\\ \text{Return Inwards and Outwards}& 4,600& 3,200\\ \text{Carriage Inwards}& 1,400& \\ \text{General Expenses}& 2,400& \\ \text{Bad Debts}& 600& \\ \text{Discount Received}& & 1,400\\ \text{Bank Overdraft}& & 10,000\\ \text{Interest on Bank Overdraft}& 600& \\ \text{Commission Received}& & 1,800\\ \text{Insurance and Taxes}& 4,000& \\ \text{Scooter Expenses}& 200& \\ \text{Salaries}& 8,800& \\ \text{Cash in Hand}& 4,000& \\ \text{Scooter}& 8,000& \\ \text{Furniture}& 5,200& \\ \text{Building}& 65,000& \\ \text{Debtors and Creditors}& 6,000& 16,000\\ \text{Capital}& & 50,000\end{array}$

Closing Stock Rs. 15,000.

Answer 1

Trading and Profit and Loss Account
as on 31st March, 2011
$\begin{array}{cccc}\text{Particulars}& \text{Amt. (Rs.)}& \text{Particulars}& \text{Amt. (Rs.)}\\ \text{Opening Stock}& 16,000& \text{Sales}1,12,000& \\ \text{Purchase}67,600& & \text{(-)Return Inwards}\underset{–}{4,600}& 1,07,400\\ \text{(-) Return Outwards}\underset{–}{3,200}& 64,400& \text{Closing Stock}& 15,000\\ \text{Carriage Inward}& 1,400& & \\ \text{Gross Profit c/d}& \underset{–}{40,600}& & \underset{–}{}\\ & \underset{–}{1,22,400}& & \underset{–}{1,22,400}\\ \text{General Expenses}& 2,400& \text{Gross Profit b/d}& 40,600\\ \text{Bad Debts}& 600& \text{Discount Received}& 1,400\\ \text{Interest on Bank Overdraft}& 600& \text{Commission Received}& 1,800\\ \text{Insurance and Taxes}& 4,000& & \\ \text{Scooter Expenses}& 200& & \\ \text{Salaries}& 8,800& & \\ \text{Net Profit}& \underset{–}{27,200}& & \underset{–}{}\\ & \underset{–}{43,800}& & \underset{–}{43,800}\end{array}$

Balance Sheet
as on 31st March, 2011
$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Amt. (Rs.)}& \text{Assets}& \text{Amt. (Rs.)}\\ \text{Capital}50,000& & \text{Cash in Hand}& 4,000\\ \text{(+)Net Profit}\underset{–}{27,200}& 77,200& \text{Scooter}& 8,000\\ & & \text{Furniture}& 5,200\\ \text{Creditors}& 16,000& \text{Buildings}& 65,000\\ \text{Bank Overdraft}& 10,000& \text{Debtors}& 6,000\\ & \underset{–}{}& \text{Closing Stock}& \underset{–}{15,000}\\ & \underset{–}{\underset{–}{1,03,200}}& & \underset{–}{\underset{–}{1,03,200}}\end{array}$