Prepare Trading and Profit and Loss Account and Balance Sheet of Jagat Shah as at 31st March, 2018 from the following balances:

₹

₹

Capital (Cr.)
3,60,000
Salaries
60,000

Machinery
70,000
General Expenses
20,000

Sales 8,20,000 Rent 50,000

Purchases 4,00,000 Purchases Return 5,000

Sales Return 10,000 Debtors 3,00,000

Stock on 1st April, 2017 1,00,000 Cash 40,000

Drawing 40,000 Carriage Outwards 20,000

Wages 1,00,000 Advertising 20,000

Carriage Inwards
5,000
Creditros 50,000

The Closing Stock was valued at ₹ 2,00,000.

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Solution

Financial Statements of Jagat Shah

Trading Account

for the year ended March 31, 2018

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

1,00,000

Sales

8,20,000

Purchases

4,00,000

Less: Sales Return

(10,000)

8,10,000

Less: Purchases Return

(5,000)

3,95,000

Closing Stock

2,00,000

Wages

1,00,000

Carriage Inwards

5,000

Gross Profit (Balancing Figure)

4,10,000

10,10,000

10,10,000

Profit and Loss Account

for the year ended March 31, 2018

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Salaries

60,000

Gross Profit

4,10,000

General Expenses

20,000

Rent

50,000

Carriage Outwards

20,000

Advertising

20,000

Net Profit (Balancing Figure)

2,40,000

4,10,000

4,10,000

Balance Sheet

as on March 31, 2018

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

3,60,000

Fixed Assets

Less: Drawings

(40,000)

Machinery

70,000

Add: Net Profit

2,40,000

5,60,000

Current Assets

Current Liabilities

Closing Stock

2,00,000

Creditors

50,000

Debtors

3,00,000

Cash

40,000

6,10,000

6,10,000

Suggest Corrections

Similar questions

Q. From the following balances, as on 31st March, 2018, prepare Trading and Profit and Loss Account and Balance Sheet:

	₹		₹
Capital Account	1,00,000	Returns Outward	5,000
Plant and Machinery	40,000	Rent	4,000
Sundry Debtors	24,000	Sales	1,64,000
Sundry Creditors	12,000	Manufacturing Expenses	8,000
Life Insurance Premium	12,000	Trade Expenses	7,000
Purchases	1,05,000	Bad Debts	2,000
Wages	50,000	Carriage	1,500
Bank	10,000	Bills Payable	7,000
Repairs	500	Returns Inward	4,000
Stock (1st April, 2017)	20,000

Closing Stock on 31st March, 2018 was valued at ₹ 14,500.

Q. Prepare Trading and Profit and Loss Account and Balance Sheet from the following balances, relating to the year ended 31st March, 2019:

	₹		₹
Capital	1,00,000	Wages	50,000
Creditors	12,000	Bank	10,000
Returns Outward	5,000	Repairs	500
Sales	1,64,000	Stock on 1st April, 2018	20,000
Bills Payable	5,000	Rent	4,000
Plant and Machinery	40,000	Manufacturing Expenses	8,000
Sundry Debtors	24,000	Trade Expenses	7,000
Drawings	10,000	Bad Debts	2,000
Purchases	1,05,000	Carriage	1,500
Returns Inward	3,000	Fuel and Power	1,000

Additional Information:
(i) Closing Stock was valued at ₹ 14,500.
(ii) Depreciate Plant and Machinery by ₹ 4,000.
(iii) Write off Bad Debts ₹ 5,000.
(iv) ₹ 400 is due for repairs.

Q. From the following information, prepare Trading Account for the year ended 31st March, 2019:

	₹		₹
Stock on 1st April, 2018	40,000	Returns Outward	80,000
Purchases	4,00,000	Wages and Salaries	50,000
Sales	3,80,000	Returns Inward	20,000
Carriage Inwards	20,000	Stock on 31st March, 2019	1,30,000

Net Realisable Value (Market Value) of stock as on 31st March, 2019 was ₹ 1,20,000.

Q. On 31st March, 2018 the following Trial Balance was extracted from the books of Mohan:


Particulars	Debit Balances (₹)	Credit Balances (₹)
Capital		3,00,000
Plant and Machinery	50,000
Debtors	2,00,000
Creditors		1,00,000
Loan		95,000
Interest on Loan	3,000
Cash	20,000
Provision for Doubtful Debts		7,000
Stock on 1st April, 2017	68,000
Motor Vehicles	1,00,000
Bank	35,000
Land and Building	1,20,000
Bad Debts	5,000
Purchases	6,60,000
Sales		11,00,000
Purchases Return		15,000
Sales Return	80,000
Carriage Outwards	25,000
Carriage Inwards	30,000
Salaries	90,000
Rent and Insurance	30,000
Advertising	35,000
Discount Received		5,000
General Expenses	34,000
Bills Receivable	60,000
Bills Payable		20,000
Rent Received		3,000
Total	16,45,000	16,45,000

Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date after taking into account the following:
(a) Stock as at 31st March, 2018 was valued at ₹70,000.
(b) All debtors are considered good for recovery.
(c) Depreciate Motor Vehicles by 20%.
(d) Bank intimation of customer's cheque of ₹10,000 being dishonoured is not recorded in the books.
(e) Travelling expenses of ₹5,000 paid to sales person was wrongly debited to his Personal Account and was included in debtors.
(f) Amount of ₹6,000 received from Ronit was credited to his account and was included in creditors. This amount was written off as bad debt in earlier years.
(g) Drawings included an amount of ₹2,000 being amount drawn in cash. It was used by Mohan for Purchase of stationery used in business.

Q.
Followingt Trial Balance has been extracted from the books of Santosh on 31st March, 2018:


Particulars	Debit balances (₹)	Credit balances (₹)
Drawings	20,000
Plant and Machinery	10,00,000
Furniture and Fixtures	1,20,000
Capital A/c		19,60,000
Sales		46,80,000
Loose Tools	2,00,000
Goodwill	1,00,000
Opening Stock	2,00,000
Returns Outward		40,000
Discount		60,000
Purchases	21,20,000
Returns Inward	80,000
Wages	10,00,000
Sundry Creditors		2,40,000
Provision for Doubtful Debts		20,000
Carriage Inwards	1,20,000
Salaries	4,16,000
General Expenses	7,20,000
Rent	1,44,000
Postage	40,000
Output IGST		1,00,000
Output CGST		50,000
Output SGST		50,000
Sundry Debtors	5,60,000
Shri B. Barua	20,000
Cash and Bank Balances	1,40,000
Input IGST	1,10,000
Input CGST	45,000
Input SGST	45,500
Total	72,00,000	72,00,000

Following additional information is available:
(a) Stock on 31st March, 2018 was ₹3,08,000.
(b) Depreciation is to be charged on Plant and Machinery at 5% and Furniture and Fixtures at 6%. Loose Tools are revalued at ₹1,60,000.
(c)Provision for Doubtful Debts is to be maintained at 5% on Sundry Debtors.
(d) Remuneration of ₹20,000 paid to Shri B. Barua, a temporary employee, stands debited to his personal account and it is to be corrected.
(e) Unexpired insurance was ₹4,000.
You are to prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date.

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	₹		₹
Capital (Cr.)	3,60,000	Salaries	60,000
Machinery	70,000	General Expenses	20,000
Sales	8,20,000	Rent	50,000
Purchases	4,00,000	Purchases Return	5,000
Sales Return	10,000	Debtors	3,00,000
Stock on 1st April, 2017	1,00,000	Cash	40,000
Drawing	40,000	Carriage Outwards	20,000
Wages	1,00,000	Advertising	20,000
Carriage Inwards	5,000	Creditros	50,000

Financial Statements of Jagat Shah
Trading Account for the year ended March 31, 2018
Dr.						Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Opening Stock		1,00,000	Sales	8,20,000
Purchases	4,00,000		Less: Sales Return	(10,000)	8,10,000
Less: Purchases Return	(5,000)	3,95,000	Closing Stock		2,00,000
Wages		1,00,000
Carriage Inwards		5,000
Gross Profit (Balancing Figure)		4,10,000
		10,10,000			10,10,000

Profit and Loss Account for the year ended March 31, 2018
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Salaries	60,000	Gross Profit	4,10,000
General Expenses	20,000
Rent	50,000
Carriage Outwards	20,000
Advertising	20,000
Net Profit (Balancing Figure)	2,40,000
	4,10,000		4,10,000

Balance Sheet as on March 31, 2018
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Capital	3,60,000		Fixed Assets
Less: Drawings	(40,000)		Machinery	70,000
Add: Net Profit	2,40,000	5,60,000	Current Assets
Current Liabilities			Closing Stock	2,00,000
Creditors		50,000	Debtors	3,00,000
			Cash	40,000
		6,10,000		6,10,000