Question

The follwing is the trial balance of Manju Chawla on March 31, 2011. You are required to prepare Trading and Profit and Loss account and a balance sheet as on date.
$\begin{array}{ccc}\text{Account Title}& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ \text{Opening Stock}& 10,000& \\ \text{Purchase and Sales}& 40,000& 80,000\\ \text{Returns}& 200& 600\\ \text{Productive Wages}& 6,000& \\ \text{Dock and Clearing Charges}& 4,000& \\ \text{Donation and Charity}& 600& \\ \text{Delivery Van Expenses}& 6,000& \\ \text{Lighting}& 500& \\ \text{Sales Tax Collected}& & 1,000\\ \text{Bad debts}& 600& \\ \text{Miscellaneous incomes}& & 6,000\\ \text{Rent from Tenants}& & 2,000\\ \text{Royalty}& 4,000& \\ \text{Capital}& & 40,000\\ \text{Drawings}& 2,000& \\ \text{Debtors and Creditors}& 6,700& 7,000\\ \text{Cash}& 3,000& \\ \text{Investment}& 6,000& \\ \text{Patents}& 4,000& \\ \text{Land and Machinery}& 43,000& \end{array}$

Additional Information:
Closing Stock Rs. 2,000

Answer 1

Trading and Profit and Loss Account
as on 31st March, 2011
$\begin{array}{cccc}\text{Particulars}& \text{Amt. (Rs.)}& \text{Particulars}& \text{Amt. (Rs.)}\\ \text{Opening Stock}& 10,000& \text{Sales}80,000& \\ \text{Purchase}40,000& & \text{(-)Sales Return}\underset{–}{200}& 79,800\\ \text{(-)Purchase Return}\underset{–}{600}& 39,400& \text{Closing Stock}& 2,000\\ \text{Productive Wages}& 6,000& & \\ \text{Dock and Clearing Charges}& 4,000& & \\ \text{Royalty}& 4,000& & \\ \text{Gross Profit c/d}& \underset{–}{18,400}& & \underset{–}{}\\ & \underset{–}{81,800}& & \underset{–}{81,800}\\ \text{Donation and Charity}& 600& \text{Gross Profit b/d}& 18,400\\ \text{Delivery Van Expenses}& 6,000& \text{Rent From Tenants}& 2,000\\ \text{Lighting}& 500& \text{Miscellaneous Incomes}& 6,000\\ \text{Bad Debts}& 600& & \\ \text{Net Profit}& \underset{–}{18,700}& & \underset{–}{}\\ & \underset{–}{26,400}& & \underset{–}{26,400}\end{array}$

Balance Sheet
as on 31st March, 2011
$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Amt. (Rs.)}& \text{Assets}& \text{Amt. (Rs.)}\\ \text{Capital}40,000& & \text{Investment}& 6,000\\ \text{(+)Net Profit}\underset{–}{18,700}& & \text{Patents}& 4,000\\ 58,700& & \text{Land and Machinery}& 43,000\\ \text{(-)Drawings}\underset{–}{2,000}& 56,700& \text{Cash}& 3,000\\ \text{Creditors}& 7,000& \text{Debtors}& 6,700\\ \text{Sales Tax Collected}& 1,000& \text{Closing Stock}& \text{2,000}\\ & \underset{–}{}& & \underset{–}{}\\ & \underset{–}{64,700}& & \underset{–}{64,700}\end{array}$