Question

Prepare Trading and Profit and Loss account of M/s Sports Equipments for the year ended March 31, 2011 and balance sheet as on that date.
$\begin{array}{ccc}\text{Account Title}& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ \text{Opening Stock}& 50,000& \\ \text{Purchase and Sales}& 3,50,000& 4,21,000\\ \text{Sales Return}& 50,000& \\ \text{Capital}& & 3,00,000\\ \text{Commission}& & 4,000\\ \text{Creditors}& & 1,00,000\\ \text{Bank Overdraft}& & 28,000\\ \text{Cash in Hand}& 32,000& \\ \text{Furniture}& 1,28,000& \\ \text{Debtors}& 1,40,000& \\ \text{Plants}& 60,000& \\ \text{Carriage on Purchase}& 12,000& \\ \text{Wages}& 8,000& \\ \text{Rent}& 15,000& \\ \text{Bad Debts}& 7,000& \\ \text{Drawings}& 24,000& \\ \text{Stationery}& 6,000& \\ \text{Travelling Expenses}& 2,000& \\ \text{Insurance}& 7,000& \\ \text{Discount}& 5,000& \\ \text{Office Expenses}& 2,000& \end{array}$
Closing Stock as on March 31, 2011 Rs. 2500.

Answer 1

Trading and Profit and Loss Account
as on 31st March, 2011
$\begin{array}{cccc}\text{Particulars}& \text{Amt. (Rs.)}& \text{Particulars}& \text{Amt. (Rs.)}\\ \text{Opening Stock}& 50,000& \text{Sales}4,21,000& \\ \text{Purchase}& 3,50,000& \text{(-)Sales Return}\underset{–}{5,000}& 4,16,000\\ \text{Carriage on Purchase}& 12,000& \text{Closing Stock}& 2,500\\ \text{Wages}& \underset{–}{8,000}& \text{Gross Loss c/d}& \underset{–}{1,500}\\ & \underset{–}{4,20,000}& & \underset{–}{4,20,000}\\ \text{Gross Loss b/d}& 1,500& \text{Commission}& 4,000\\ \text{Rent}& 15,000& \text{Net Loss}& 41,500\\ \text{Bad Debts}& 7,000& & \\ \text{Stationery}& 6,000& & \\ \text{Travelling Expenses}& 2,000& & \\ \text{Insurance}& 7,000& & \\ \text{Discount}& 5,000& & \\ \text{Office Expenses}& \underset{–}{2,000}& & \underset{–}{}\\ & \underset{–}{\underset{–}{45,500}}& & \underset{–}{\underset{–}{45,500}}\\ & & & \end{array}$

Balance Sheet
as on 31st March, 2011
$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Amt. (Rs.)}& \text{Assets}& \text{Amt. (Rs.)}\\ \text{Capital}3,00,000& & \text{Cash in Hand}& 32,000\\ \text{(-)Net Loss}\underset{–}{41,500}& & \text{Furniture}& 1,28,000\\ 2,58,500& & \text{Debtors}& 1,40,000\\ \text{(-)Drawings}\underset{–}{24,000}& 2,34,500& \text{Plants}& 60,000\\ & & \text{Closing Stock}& 2,500\\ \text{Creditors}& 1,00,000& & \\ \text{Bank Overdraft}& \underset{–}{28,000}& & \underset{–}{}\\ & \underset{–}{\underset{–}{3,62,500}}& & \underset{–}{\underset{–}{3,62,500}}\\ & & & \end{array}$