Question

Prepare Trading and Profit and Loss account. and balance sheet on M/s Royal Traders from the following balances as on March 31, 2011.
$\begin{array}{cccc}\text{Debit Balances}& \text{Amt. (Rs.)}& \text{Credit Balances}& \text{Amt. (Rs.)}\\ \text{Stock}& 20,000& \text{Sales}& 2,45,000\\ \text{Cash}& 5,000& \text{Creditors}& 10,000\\ \text{Bank}& 10,000& \text{Bills Payable}& 4,000\\ \text{Carriage on Purchase}& 1,500& \text{Capital}& 2,00,000\\ \text{Purchase}& 1,90,000& & \\ \text{Drawings}& 9,000& & \\ \text{Wages}& 55,000& & \\ \text{Machinery}& 1,00,000& & \\ \text{Debtors}& 27,000& & \\ \text{Postage}& 300& & \\ \text{Sundry Expenses}& 1,700& & \\ \text{Rent}& 4,500& & \\ \text{Furniture}& 35,000& & \end{array}$
Closing Stock Rs. 8,000.

Answer 1

Trading and Profit and Loss Account
as on 31st March, 2011
$\begin{array}{cccc}\text{Particulars}& \text{Amt. (Rs.)}& \text{Particulars}& \text{Amt. (Rs.)}\\ \text{Opening Stock}& 20,000& \text{Sales}& 2,45,000\\ \text{Purchase}& 1,90,000& \text{Closing Stock}& 8,000\\ \text{Carriage on Purchase}& 1,500& \text{Gross Loss c/d}& 13,500\\ \text{Wages}& \underset{–}{55,000}& & \underset{–}{}\\ & \underset{–}{2,66,500}& & \underset{–}{2,66,500}\\ \text{Gross Loss b/d}& 13,500& \text{Net Loss}& 20,000\\ \text{Postage}& 300& & \\ \text{Sundry Expenses}& 1,700& & \\ \text{Rent}& \underset{–}{4,500}& & \underset{–}{}\\ & \underset{–}{20,000}& & \underset{–}{20,000}\end{array}$

Balance Sheet
as on 31st March, 2011
$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Amt. (Rs.)}& \text{Assets}& \text{Amt. (Rs.)}\\ \text{Capital}2,00,000& & \text{Cash}& 5,000\\ \text{(-)Net Profit}\underset{–}{20,000}& & \text{Bank}& 10,000\\ 1,80,000& & \text{Machinery}& 1,00,000\\ \text{(-)Drawings}\underset{–}{9,000}& 1,71,000& \text{Debtors}& 27,000\\ \text{Creditors}& 10,000& \text{Furniture}& 35,000\\ \text{Bills Payable}& \underset{–}{4,000}& \text{Closing Stock}& \underset{–}{8,000}\\ & \underset{–}{1,85,000}& & \underset{–}{1,85,000}\end{array}$