Lalit Mohan keeps incomplete records. From the following information provided by him, prepare a Trading and Profit & Loss Account for the year ended 31st March, 2015 and a Balance Sheet as at that date:
31st March, 2014
31st March, 2015
₹
₹
Sundry Debtors
15,000
24,400
Stock
32,000
55,000
Cash
8,400
21,700
Sundry Creditors
22,000
?
Prepaid Expenses
Nil
3,600
Unpaid Expenses
1,500
2,200
Furniture
20,000
32,000
Summary of cash transactions during the year:
₹
Receipts from Debtors
2,00,000
Payment to Creditors
1,64,000
Carriage Inwards
3,300
Payment for Life Insurance Premium
15,000
Sundry Expenses
40,000
Furniture purchased for cash
12,000
You are informed that there were considerable amount of cash sales during the year. Credit purchases during the year amounted to ₹ 1,80,000. Provide 5% for doubtful debts on debtors.
| 31st March, 2014 | 31st March, 2015 | |
| ₹ | ₹ | |
| Sundry Debtors | 15,000 | 24,400 |
| Stock | 32,000 | 55,000 |
| Cash | 8,400 | 21,700 |
| Sundry Creditors | 22,000 | ? |
| Prepaid Expenses | Nil | 3,600 |
| Unpaid Expenses | 1,500 | 2,200 |
| Furniture | 20,000 | 32,000 |
Summary of cash transactions during the year:
| ₹ | |
| Receipts from Debtors | 2,00,000 |
| Payment to Creditors | 1,64,000 |
| Carriage Inwards | 3,300 |
| Payment for Life Insurance Premium | 15,000 |
| Sundry Expenses | 40,000 |
| Furniture purchased for cash | 12,000 |
You are informed that there were considerable amount of cash sales during the year. Credit purchases during the year amounted to ₹ 1,80,000. Provide 5% for doubtful debts on debtors.
Trading Account
for the year ended March 31, 2015
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Opening Stock
32,000
Sales (Cash + Credit)
2,57,000
Purchases (Credit)
1,80,000
Closing Stock
55,000
Carriage
3,300
Gross Profit
96,700
3,12,000
3,12,000
Profit & Loss Account
for the year ended March 31, 2015
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Sundry Expenses
40,000
Gross Profit
96,700
Provision for Doubtful Debts
1,220
Prepaid Expenses
3,600
Unpaid Expenses (2,200 – 1,500)
700
Net Profit
58,380
1,00,300
1,00,300
Balance Sheet
as on March 31, 2015
Dr.
Cr.
Liabilities
Amount
(₹)
Assets
Amount
(₹)
Capital
51,900
Cash in Hand
21,700
Less: Drawings
15,000
Debtors
24,400
Add: Net Profit
58,380
95,280
Less: Provision for DD
1,220
23,180
Creditors
38,000
Prepaid Expenses
3,600
Unpaid Expenses
2,200
Closing Stock
55,000
Furniture
32,000
1,35,480
1,35,480
Working Notes:
Balance Sheet
as on March 31, 2014
Dr.
Cr.
Liabilities
Amount
(₹)
Assets
Amount
(₹)
Creditors
22,000
Debtors
15,000
Unpaid Expenses
1,500
Stock
32,000
Capital (Balancing figure)
51,900
Cash
8,400
Furniture
20,000
75,400
75,400
Cash Account
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Balance b/d
8,400
Creditors A/c
1,64,000
Debtors A/c
2,00,000
Carriage A/c
3,300
Sales A/c (Balancing Figure)
47,600
Drawings A/c (Life Insurance Premium)
15,000
Sundry Expenses A/c
40,000
Furniture A/c
12,000
Balance c/d
21,700
2,56,000
2,56,000
Debtors Account
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Balance b/d
15,000
Cash A/c
2,00,000
Sales A/c
2,09,400
Balance c/d
24,400
2,24,400
2,24,400
Creditors Account
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Cash A/c
1,64,000
Balance b/d
22,000
Balance c/d
38,000
Purchases A/c
1,80,000
2,02,000
2,02,000
|
Trading Account for the year ended March 31, 2015 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Opening Stock |
32,000 |
Sales (Cash + Credit) |
2,57,000 |
|
Purchases (Credit) |
1,80,000 |
Closing Stock |
55,000 |
|
Carriage |
3,300 |
|
|
|
Gross Profit |
96,700 |
|
|
|
|
3,12,000 |
|
3,12,000 |
|
|
|
|
|
|
Profit & Loss Account for the year ended March 31, 2015 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Sundry Expenses |
40,000 |
Gross Profit |
96,700 |
|
Provision for Doubtful Debts |
1,220 |
Prepaid Expenses |
3,600 |
|
Unpaid Expenses (2,200 – 1,500) |
700 |
|
|
|
Net Profit |
58,380 |
|
|
|
|
1,00,300 |
|
1,00,300 |
|
|
|
|
|
|
Balance Sheet as on March 31, 2015 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Capital |
51,900 |
|
Cash in Hand |
21,700 |
|
|
Less: Drawings |
15,000 |
|
Debtors |
24,400 |
|
|
Add: Net Profit |
58,380 |
95,280 |
Less: Provision for DD |
1,220 |
23,180 |
|
Creditors |
38,000 |
Prepaid Expenses |
3,600 |
||
|
Unpaid Expenses |
2,200 |
Closing Stock |
55,000 |
||
|
|
|
Furniture |
32,000 |
||
|
|
1,35,480 |
|
1,35,480 |
||
|
|
|
|
|
||
Working Notes:
|
Balance Sheet as on March 31, 2014 |
|||
|
Dr. |
|
|
Cr. |
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Creditors |
22,000 |
Debtors |
15,000 |
|
Unpaid Expenses |
1,500 |
Stock |
32,000 |
|
Capital (Balancing figure) |
51,900 |
Cash |
8,400 |
|
|
|
Furniture |
20,000 |
|
|
|
|
|
|
|
75,400 |
|
75,400 |
|
|
|
|
|
|
Cash Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
8,400 |
Creditors A/c |
1,64,000 |
|
Debtors A/c |
2,00,000 |
Carriage A/c |
3,300 |
|
Sales A/c (Balancing Figure) |
47,600 |
Drawings A/c (Life Insurance Premium) |
15,000 |
|
|
|
Sundry Expenses A/c |
40,000 |
|
|
|
Furniture A/c |
12,000 |
|
|
|
Balance c/d |
21,700 |
|
|
|
|
|
|
|
2,56,000 |
|
2,56,000 |
|
|
|
|
|
|
Debtors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
15,000 |
Cash A/c |
2,00,000 |
|
Sales A/c |
2,09,400 |
Balance c/d |
24,400 |
|
|
|
|
|
|
|
2,24,400 |
|
2,24,400 |
|
|
|
|
|
|
Creditors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Cash A/c |
1,64,000 |
Balance b/d |
22,000 |
|
Balance c/d |
38,000 |
Purchases A/c |
1,80,000 |
|
|
|
|
|
|
|
2,02,000 |
|
2,02,000 |
|
|
|
|
|
