The following balances were extracted from the books of M/s Panchsheel Garments on March 31, 2017.

Account Title

Debit
Amount

(₹)

Account Title

Credit
Amount

(₹)

Opening stock 16,000
Sales
1,12,000

Purchases
67,600 Return outwards 3,200

Return Inwards 4,600
Discount
1,400

Carriage inwards 1,400
Bank overdraft
10,000

General expenses 2,400
Commission
1,800

Insurance
4,000
Creditors
16,000

Scooter expenses 200
Capital
50,000

Salary

8,800

Cash in hand 4,000

Scooter
8,000

Furniture
5,200

Buildings
65,000

Debtors
6,000

Wages
1,200

1,94,400 1,94,400

Prepare the trading and profit and loss account for the year ended March 31, 2017 and a balance sheet as on that date.
(a) Unexpired insurance ₹ 1,000.
(b) Salary due but not paid ₹ 1,800.
(c) Wages outstanding ₹ 200.
(d) Interest on capital 5%.
(e) Scooter is depreciated @ 5%.
(f) Furniture is depreciated ₹ @ 10%.
(g) Closing stock was ₹ 15,000.

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Solution

Trading Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Opening Stock

16,000

Sales

1,12,000

Purchases

67,600

Less: Return Inwards

4,600

1,07,400

Less: Return Outwards

3,200

64,400

Closing Stock

15,000

Carriage Inwards

1,400

Wages

1,200

Add: Outstanding Wages

200

1,400

Gross Profit

39,200

1,22,400

1,22,400

Profit and Loss Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

General Expenses

2,400

Gross Profit

39,200

Insurance

4,000

Discount

1,400

Less: Unexpired Insurance

1,000

3,000

Commission

1,800

Scooter Expenses

200

Salary

8,800

Add: Outstanding Salary

1,800

10,600

Interest on Capital

2,500

Depreciation on Scooter

400

Depreciation on Furniture

520

Net Profit

22,780

42,400

42,400

Balance Sheet

Liabilities

Amount

Rs

Assets

Amount

Rs

Capital

50,000

Cash in Hand

4,000

Add: Interest on Capital

2,500

Scooter

8,000

Add: Net Profit

22,780

75,280

Less: Depreciation

400

7,600

Bank Overdraft

10,000

Furniture

5,200

Creditors

16,000

Less: Depreciation

520

4,680

Outstanding Salary

1,800

Buildings

65,000

Outstanding Wages

200

Debtors

6,000

Unexpired Insurance

1,000

Closing Stock

15,000

1,03,280

1,03,280

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Similar questions

The following balances were extracted from the books of M/s Panchsheel Garments on March 31, 2017.

Account Title	Debit Amount Rs	Account Title	Credit Amount Rs
Opening stock	16,000	Sales	1,12,000
Purchases	67,600	Return outwards	3,200
Return Inwards	4,600	Discount	1,400
Carriage inwards	1,400	Bank overdraft	10,000
General expenses	2,400	Commission	1,800
Insurance	4,000	Creditors	16,000
Scooter expenses	200	Capital	50,000
Salary	8,800
Cash in hand	4,000
Scooter	8,000
Furniture	5,200
Buildings	65,000
Debtors	6,000
Wages	1,200
	1,94,400		1,94,400

Prepare the trading and profit and loss account for the year ended March 31, 2017 and a balance sheet as on that date.

(a) Unexpired insurance Rs 1,000.

(b) Salary due but not paid Rs 1,800.

(d) Interest on capital 5%.

(e) Scooter is depreciated @ 5%.

(f) Furniture is depreciated Rs @ 10%.

Q. The following balances were extracted from the books of M/s Panchsheel Garments on December 31, 2010.

Account Title	Amt. (Rs)	Account Title	Amt. (Rs)
Opening Stock	16,000	Sales	1,12,000
Purchase	67,600	Return Outwards	3,200
Return Inwards	4,600	Discount	1,400
Carriage Inwards	1,400	Bank Overdraft	10,000
General Expenses	2,400	Commission	1,800
Insurance	4,000	Creditors	16,000
Scooter Expenses	200	Capital	50,000
Salary	8,800
Cash in Hand	4,000
Scooter	8,000
Furniture	5,200
Buildings	65,000
Debtors	6,000
Wages	1,200
	1,94,400		1,94,400

Prepare the trading and profit and loss account for the year ended December 31, 2010 and a balance sheet as on that date
(a) Unexpired insurance Rs. 1,000.
(b) Salary due but not paid Rs. 1,800.
(c) Wages outstanding Rs. 200.
(d) Interest on capital @ 5%.
(e) Scooter is depredated @ 5%.
(f) Furniture is depredated @ 10%.

The following balances were extracted from the books of M/s Panchsheel Garments on December 31, 2010.

$\begin{matrix} Account Title & Amt. (Rs.) & Account Title & Amt. (Rs.) Opening Stock & 16, 000 & Sales & 1, 12, 000 Purchase & 67, 600 & Return Outwards & 3, 200 Return Inwards & 4, 600 & Discount & 1, 400 Carriage Inwards & 1, 400 & Bank Overdraft & 10, 000 General Expenses & 2, 400 & Commission & 1, 800 Insurance & 4, 000 & Creditors & 16, 000 Scooter Expenses & 200 & Capital & 50, 000 Salary & 8, 800 Cash in Hand & 4, 000 Scooter & 8, 000 Furniture & 5, 200 Buildings & 65, 000 Debtors & 6, 000 Wages & 1, 200 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 94, 400 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 94, 400 - -------- - \end{matrix}$

Prepare the trading and profit and loss account for the year ended December 31, 2010 and a balance sheet as on that date

(a) Unexpired insurance Rs. 1,000

(b) Salary due but not paid Rs. 1,800.

(d) Interest on capital @ 5 $%$ .

(e) Scooter is depreciated @ 5 $%$ .

(f) Furniture is depreciated @ 10 $%$

(g) Closing stock is Rs. 15,000

From the following balances extracted from the book of M/s Manju Chawla on March 31, 2010. You are requested to prepare the trading and profit and loss account and a balance sheet as on this date.

$\begin{matrix} Account Title & Amt. (Rs.) & Amt. (Rs.) Opening Stock & 10, 000 Purchases and Sales & 40, 000 & 80, 000 Returns & 200 & 600 Wages & 6, 000 Dock and Clearing Charges & 4, 000 Lighting & 500 Miscellaneous Income & 6, 000 Rent & 2, 000 Capital & 40, 000 Drawings & 2, 000 Debtors and Creditors & 6, 000 & 7, 000 Cash & 3, 000 Investment & 6, 000 Patents & 4, 000 Land and Machinery & 43, 000 Donations and Charity & 600 Sales Tax Collected & 1, 000 Furniture & 11, 300 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 36, 600 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 36, 600 - -------- - \end{matrix}$

Closing Stock was. Rs 2,000.

(a) Interest on drawings @ $7 %$ and interest on capital @ $5 %$ .

(b) Land and machinery is depreciated at $5 %$ .

(d) Unexpired rent Rs 100.

(e) Charge $5 %$ depreciation on furniture.

Following is the extract of the Balance Sheet of, Neelkant and Mahdev as on March 31, 2017:

Balance Sheet as at March 31, 2017
	Amount		Amount
Liabilities	Rs	Assets	Rs
Neelkant’s Capital	10,00,000	Sundry Assets	30,00,000
Mahadev’s Capital	10,00,000
Neelkant’s Current Account	1,00,000
Mahadev’s Current Account	1,00,000
Profit and Loss Apprpriation
(March 2017)	8,00,000
	30,00,000		30,00,000

During the year Mahadev’s drawings were Rs 30,000. Profits during 2017 is Rs 10,00,000. Calculate interest on capital @ 5% p.a for the year ending March 31, 2017.

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Account Title	Debit Amount (₹)	Account Title	Credit Amount (₹)
Opening stock	16,000	Sales	1,12,000
Purchases	67,600	Return outwards	3,200
Return Inwards	4,600	Discount	1,400
Carriage inwards	1,400	Bank overdraft	10,000
General expenses	2,400	Commission	1,800
Insurance	4,000	Creditors	16,000
Scooter expenses	200	Capital	50,000
Salary	8,800
Cash in hand	4,000
Scooter	8,000
Furniture	5,200
Buildings	65,000
Debtors	6,000
Wages	1,200

	1,94,400		1,94,400

Trading Account
Dr.							Cr.
Particulars			Amount Rs	Particulars			Amount Rs
Opening Stock			16,000	Sales		1,12,000
Purchases		67,600			Less: Return Inwards	4,600	1,07,400
	Less: Return Outwards	3,200	64,400	Closing Stock			15,000
Carriage Inwards			1,400
Wages		1,200
	Add: Outstanding Wages	200	1,400
Gross Profit			39,200
			1,22,400				1,22,400

Profit and Loss Account
Dr.					Cr.
Particulars			Amount Rs	Particulars	Amount Rs
General Expenses			2,400	Gross Profit	39,200
Insurance		4,000		Discount	1,400
	Less: Unexpired Insurance	1,000	3,000	Commission	1,800
Scooter Expenses			200
Salary		8,800
	Add: Outstanding Salary	1,800	10,600
Interest on Capital			2,500
Depreciation on Scooter			400
Depreciation on Furniture			520
Net Profit			22,780
			42,400		42,400

Balance Sheet
Liabilities			Amount Rs	Assets			Amount Rs
Capital		50,000		Cash in Hand			4,000
	Add: Interest on Capital	2,500		Scooter		8,000
	Add: Net Profit	22,780	75,280		Less: Depreciation	400	7,600
Bank Overdraft			10,000	Furniture		5,200
Creditors			16,000		Less: Depreciation	520	4,680
Outstanding Salary			1,800	Buildings			65,000
Outstanding Wages			200	Debtors			6,000
				Unexpired Insurance			1,000
				Closing Stock			15,000


			1,03,280				1,03,280