Question

Question

Answer 1

Trading Account for the year ended March 31, 2010
Dr.							Cr.
Particulars			Amount (Rs)	Particulars		Amount (Rs)
Opening Stock			23,500	Sales	1,30,000
Purchases		46,800		Less: Return Inwards	6,600	1,23,400
Less: Return Outwards		2,800	44,000	Closing Stock		36,500
Freight Inwards			1,100
Productive Expenses			27,000
Rent (1/3 of 7,500)			2,500
Gross Profit (Balancing Figure)			61,800
			1,59,900			1,59,900

Profit and Loss Account for the year ended March 31, 2010
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Freight Outwards		3,000	Gross Profit	61,800
Unproductive Wages		5,800	Discount Received	2,100
Trade Expenses		1,200	Misc. Receipts	500
Salaries		9,600	Bad Debts Recovered	4,000
Rent (2/3 of 7,500)		5,000
Legal Expenses		800
Donation		600
Bad Debts		4,750
Bank Charges		2,800
Interest on Loan		2,400
Net Profit		32,450
		68,400		68,400

Balance Sheet as on March 31, 2010
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Capital	1,37,450		Fixed Assets
Add: Net Profit	32,450		Trade Marks	5,000
Less: Drawings (Life Insurance Premium)	6,000	1,63,900	Fixed Deposit with PNB	10,000
Loan on Mortgage		20,000	Motor Vehicles	50,000
			Leasehold Land	60,000
Current Liabilities			Current Assets
Sundry Creditors		16,100	Closing Stock	36,500
			Sundry Debtors	30,000
			Cash in Hand	1,300
			Loose Tools	7,200
		2,00,000		2,00,000