Trial Balance of a business as at 31st March, 2018 is given below:

Particulars Dr.
(₹) Particulars Cr.
(₹)

Stock on 1st April, 2017 25,000 Sales 2,27,800

Furniture 8,000 Commission 500

Plant and Machinery 1,50,000 Returns Outward 1,000

Debtors 30.000 Creditors 40,000

Wages 12,000 Capital 1,50,000

Salaries 20,000

Bad Debts 1,000

Purchases 1,20,000

Electricity Charges 1,200

Telephone Charges 2,400

General Expenses 3,000

Postage Expenses 1,800

Returns Inward 900

Insurance Premium 1,500

Cash in Hand 2,500

Cash at Bank 40,000

4,19,300 4,19,300

Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date after taking into account the following adjustments:
(i) Closing Stock was valued at ₹7,000.
(ii) Outstanding liabilities for wages were ₹600 and salaries ₹1,400.
(iii) Depreciation is to be provided @ 5% p.a. on all fixed assets.
(iv) Included in Plant and Machinery is a machine purchased for ₹10,000 on 1st October, 2017.
(v) Insurance premium paid in advance ₹200.

Open in App

Solution

Trading Account

for the year ended March 31, 2018

Dr.
Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

Opening Stock
25,000
Sales
2,27,800

Purchases
1,20,000

Less: Returns
900

2,26,900

Less: Returns
1,000

1,19,000
Closing Stock
7,000

Wages
12,000

Add: Outstanding Wages
600

12,600

Gross Profit
77,300

2,33,900

2,33,900

Profit & Loss Account

for the year ended March 31, 2018

Dr.
Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

Bad Debts
1,000
Gross Profit
77,300

Insurance Premium
1,500

Commission
500

Less: Prepaid
200

1,300

Salaries
20,000

Add: Outstanding Salaries
1,400

21,400

Electricity Charges
1,200

General Expenses
3,000

Postage Expenses
1,800

Telephone Charges
2,400

Depreciation on:

Furniture
400

Plant & Machinery
7,250

7,650

Net Profit
38,050

77,800

77,800

Balance Sheet

as on March 31, 2018

Dr.
Cr.

Liabilities

Amount

(₹)

Assets

Amount

(₹)

Creditors
40,000
Furniture
8,000

Outstanding Wages
600
Less: Depreciation
400

7,600

Outstanding Salaries
1,400
Plant & Machinery
1,50,000

Capital
1,50,000

Less: Depreciation
7,250

1,42,750

Add: Net Profit
38,050

1,88,050
Cash at Bank
40,000

Cash in Hand
2,500

Closing Stock
7,000

Debtors
30,000

Prepaid Insurance
200

2,30,050

2,30,050

Suggest Corrections

Similar questions

Q. Trial Balance of a business as at 31st March, 2019 is given below:


Particulars	Dr. (₹)	Particulars	Cr. (₹)
Stock on 1st April, 2018	25,000	Sales	2,27,800
Furniture	8,000	Commission	500
Plant and Machinery	1,50,000	Returns Outward	1,000
Debtors	30,000	Creditors	40,000
Wages	12,000	Capital	1,50,000
Salaries	20,000
Bad Debts	1,000
Purchases	1,20,000
Electricity Charges	1,200
Telephone Charges	2,400
General Expenses	3,000
Postage Expenses	1,800
Returns Inward	900
Insurance Premium	1,500
Cash in Hand	2,500
Cash at Bank	40,000
	4,19,300		4,19,300

Prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as at that date after taking into account the following adjustments:
(i) Closing Stock was valued at ₹ 7,000.
(ii) Outstanding liabilities for wages were ₹ 600 and salaries ₹ 1,400.
(iii) Depreciation is to be provided @ 5% p.a. on fixed assets.
(iv) Included in Plant and Machinery is a machine purchased for ₹ 10,000 on 1st October, 2018.
(v) Insurance premium paid in advance ₹ 200.

Q. Ayub and Amit are partners in M/s amit Papers sharing profits and losses equally. Following trial balance is prepared from the books of account as at 31st March, 2018.
Prepare Trading Account, Profit and Loss Account and Profit and Loss Appropriation Account for the year ended 31st March, 2018 and Balance Sheet as at that date accounting the following adjustments:
(i) Stock as at 31st March, 2018 was

R s . 50, 000

;
(ii) Rent is

R s . 10, 000

per month;
(iii) Depreciate Furniture and Fixture and Computers @

20 %

p.a., Machinery @

10 %

p.a.; and
(iv) Interest on Capitals is allowed @

6 %

p.a.

Following is the Trial Balance of Komal Jaggi as on 31st March 2010 Prepare Trading and Profit and Loss Account for the year ended 31st March, 2010 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2010
Particulars	Amount Rs	Particulars	Amount Rs
Stock on 1-4-2009 Purchases Return inward Wages Insurance Salaries Rent & Taxes Bad debts Discount allowed Machinery Buildings Sundry debtors Advertisement Carriage inward Cash in hand Cash at Bank Office expenses Drawings	50,000 1,19,000 3,000 7,750 1,500 9,400 5,000 1,000 2,000 25,000 55,000 70,000 10,000 2,350 6,000 8,000 2,000 4,000	Sales Return outward Discount received Sundry Creditors Capital Bank Loan Bills Payable	1,90,000 1,500 2,500 52,000 1,00,000 30,000 5,000
Total	3,81,000	Total	3,81,000

Adjustment:

1) On 31st March 2010 the stock was valued Rs 30,000

2) Outstanding Wages Rs 1,250 and Rent Rs 1,000

3) Insurance was paid for the year ending 30th Sep. 2010

4) Depreciate Machinery 10% and Buildings by 4% p.a.

5) Provide R.D.D. at 5% on Sundry Debtors.

Q. The Trial Balance shows the following balances as at 31st March, 2017:-


Dr. Balances	(₹)	Cr. Balances	(₹)
Purchases	60,000	Capital	1,13,075
Sales Returns	1,500	Sales	1,27,000
Plant and Machinery	90,000	Purchases Returns	1,275
Opening Stock	40,000	Discount Received	800
Discount Allowed	350	Sundry Creditors	20,000
Bank Charges	100	Bills Payable	5,000
Sundry Debtors	45,000
Salaries	7,000
Wages	10,000
Freight : In	1,000
Freight : Out	1,200
Rent, Rates and Taxes	2,000
Advertisements	2,000
Cash at Bank	7,000
	2,67,150		2,67,150

Closing Stock was valued at ₹ 35,000. Prepare Trading and Profit and Loss Account for the year ended 31st March, 2017 and Balance Sheet as at that date.

The Trial Balance of Dhanashri Stores as on 31st March 2009 was as follows, Prepare Trading and Profit and Loss A/c for the year ending on 31st March, 2009 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2009
Particulars	Debit Amount Rs	Particulars	Credit Amount Rs
Purchases Opening Stock Debtors Wages Salaries Land & Building Plant and Machinery Furniture Advertisement 15% Investment Insurance Cash in hand Rent Power and Fuel Drawing Accrued Interest on Investment	25,000 12,000 20,000 5,000 8,000 30,000 25,000 16,000 6,000 10,000 2,000 5,500 7,000 3,000 3,000 500	Capital Sales Creditors Bank Loan Commission Discount Interest on Investment	70,000 70,000 21,000 10,000 5,000 500 1,500
Total	1,78,000	Total	1,78,000

Adjustment:

1) Closing stock was valued at Rs 32,000.

2) Outstanding expenses were Rs 1,000 wages and Rs 2,000 salary.

3) Provide R.D.D. at 5% on debtors and 2% provision for discount on debtors.

4) Depreciation Land and Building at 5% and Machinery by 10% p.a.

Join BYJU'S Learning Program

Trading Account for the year ended March 31, 2018
Dr.					Cr.
Particulars		Amount (₹)	Particulars		Amount (₹)
Opening Stock		25,000	Sales	2,27,800
Purchases	1,20,000		Less: Returns	900	2,26,900
Less: Returns	1,000	1,19,000	Closing Stock		7,000
Wages	12,000
Add: Outstanding Wages	600	12,600
Gross Profit		77,300
		2,33,900			2,33,900

Profit & Loss Account for the year ended March 31, 2018
Dr.					Cr.
Particulars			Amount (₹)	Particulars	Amount (₹)
Bad Debts			1,000	Gross Profit	77,300
Insurance Premium	1,500			Commission	500
Less: Prepaid	200		1,300
Salaries	20,000
Add: Outstanding Salaries	1,400		21,400
Electricity Charges			1,200
General Expenses			3,000
Postage Expenses			1,800
Telephone Charges			2,400
Depreciation on:
Furniture		400
Plant & Machinery		7,250	7,650
Net Profit			38,050
			77,800		77,800

Balance Sheet as on March 31, 2018
Dr.					Cr.
Liabilities		Amount (₹)	Assets		Amount (₹)
Creditors		40,000	Furniture	8,000
Outstanding Wages		600	Less: Depreciation	400	7,600
Outstanding Salaries		1,400	Plant & Machinery	1,50,000
Capital	1,50,000		Less: Depreciation	7,250	1,42,750
Add: Net Profit	38,050	1,88,050	Cash at Bank		40,000
			Cash in Hand		2,500
			Closing Stock		7,000
			Debtors		30,000
			Prepaid Insurance		200
		2,30,050			2,30,050