The following balances have been extracted from the books of M/s Green House for the year ended March 31, 2017, prepare trading and profit and loss account and balance sheet as on this date.
Account Title |
Amount Rs |
Account Title |
Amount Rs |
Purchases |
80,000 |
Capital |
2,10,000 |
Bank balance |
11,000 |
Bills payable |
6,500 |
Wages |
34,000 |
Sales |
2,00,000 |
Debtors |
70,300 |
Creditors |
50,000 |
Cash in hand |
1,200 |
Return outwards |
4,000 |
Legal expenses |
4,000 |
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|
Building |
60,000 |
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|
Machinery |
120,000 |
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|
Bills receivable |
7,000 |
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Office expenses |
3,000 |
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|
Opening stock |
45,000 |
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|
Gas and fuel |
2,700 |
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Freight and Carriage |
3,500 |
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|
Factory lighting |
5,000 |
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|
Office furniture |
5,000 |
|
|
Patent right |
18,800 |
|
|
|
4,70,500 |
|
4,70,500 |
adjustments :
(a) Machinery is depreciated at 10% and buildings depreciated at 6%.
(b) Interest on capital @ 4%.
(c) Outstanding wages Rs 50.
(d) Closing stock Rs 50,000.
Trading Account |
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Dr. |
Cr. |
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Particulars |
Amount Rs |
Particulars |
Amount Rs |
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Opening Stock |
|
45,000 |
Sales |
2,00,000 |
|
Purchases |
80,000 |
Closing Stock |
50,000 |
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|
Less: Return Outwards |
4,000 |
76,000 |
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Wages |
34,000 |
|
|
|
|
|
Add: Wages Outstanding |
50 |
34,050 |
|
|
Gas and Fuel |
|
2,700 |
|
|
|
Freight and Carriage |
|
3,500 |
|
|
|
Factory Lighting |
|
5,000 |
|
|
|
Gross Profit |
83,750 |
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|
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|
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|
2,50,000 |
|
2,50,000 |
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Profit and Loss Account |
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Dr. |
Cr. |
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Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
To Legal Expenses |
4,000 |
By Gross Profit |
83,750 |
||
To Office Expenses |
3,000 |
|
|||
To Depreciation on Machine |
12,000 |
|
|||
To Depreciation on Building |
3,600 |
|
|
||
To Interest on Capital |
8,400 |
|
|
||
To Net Profit* |
52,750 |
|
|
||
|
|
|
|||
|
83,750 |
|
83,750 |
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Balance Sheet |
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Liabilities |
Amount Rs |
Assets |
Amount Rs |
||||
Capital |
2,10,000 |
|
Bank Balance |
|
11,000 |
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Add: Interest on Capital |
8,400 |
Debtors |
|
70,300 |
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|
Add: Net profit |
52,750 |
2,71,150 |
Cash in Hand |
|
1,200 |
|
|
|
|
Building |
60,000 |
|
||
Bills Payable |
|
6,500 |
Less: Depreciation |
3,600 |
56,400 |
||
Creditors |
|
50,000 |
Machinery |
1,20,000 |
|
||
Outstanding Wages |
|
50 |
Less: Depreciation |
12,000 |
1,08,000 |
||
|
|
Bills Receivable |
|
7,000 |
|||
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|
Patent Right |
|
18,800 |
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Office Furniture |
5,000 |
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Closing Stock |
|
50,000 |
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|
|
|
|
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|
3,27,700 |
|
3,27,700 |
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