Question

Prepare Statement of Profit and Loss from the following information extracted from the books of X Ltd. as at 31st March, 2017:

$\begin{array}{cc}& \text{Rs.}\\ \text{Sales}& 50,00,000\\ \text{Purchase of Stock in Trade}& 30,00,000\\ \text{Wages}& 10,00,000\\ \text{Interest Received}& 60,000\\ \text{Bonus}& 1,20,000\\ \text{Gratuity paid}& 80,000\\ \text{Opening Stock-in Trade}& 3,00,000\\ \text{Closing Stock-in Trade}& 5,00,000\end{array}$

Answer 1

X Ltd.
STATEMENT OF REPORT AND LOSS
for the year ended 31st March, 2017

$\begin{array}{ccc}\text{Particulars}& \text{Note No.}& \text{Amount (Rs.)}\\ \text{I. Revenue from Operations}& 1& 50,00,000\\ \text{II. Other Income}& 2& \underset{–}{60,000}\\ \text{III. Total Revenue(I+II)}& & \underset{–}{\underset{–}{50,60,000}}\\ \text{IV. Expenses}& & \\ \text{Purchase of Stock in Trade}& & 30,00,000\\ \text{Changes in Inventories of Stock in Trade}& 3& (2,00,000)\\ \text{Employee Benefit Expenses}& 4& \underset{–}{12,00,000}\\ \text{Total Expenses}& & \underset{–}{\underset{–}{40,00,000}}\\ \text{V. Profit before Tax (III - IV)}& & 10,60,000\end{array}$

Notes to Accounts:
$\begin{array}{cc}\text{Particulars}& \text{Rs.}\\ 1.\text{Revenue from Operations:}& \\ \text{Sales}& \underset{–}{\underset{–}{50,00,000}}\\ 2.\text{Other Income:}& \\ \text{Interest Received}& \underset{–}{\underset{–}{60,000}}\\ 3.\text{Changes in Inventories of Stock in Trade:}& \\ \text{Opening inventory}3,00,000& \\ \text{Less: Closing Inventory}\underset{–}{5,00,000}& \underset{–}{\underset{–}{(2,00,000)}}\\ 4.\text{Employee Benefit Expenses:}& \\ \text{Wages}& 10,00,000\\ \text{Bonus}& 1,20,000\\ \text{Gratuity paid}& \underset{–}{80,000}\\ & \underset{–}{\underset{–}{12,00,000}}\\ & \end{array}$