wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Vijay commenced business as foodgrains merchant on 1st April, 2017 with a capital of ₹4,00,000. On the same day, he purchased furniture for ₹80,000. From the following particulars obtained from his books which do not conform to Double Entry principles, you are required to prepare the Trading and Profit and Loss Account for the year ended 31st March, 2018 and the Balance Sheet as on that date:
Sales (including Cash Sales ₹2,00,000) 5,00,000
Purchases (including Cash Purchases ₹1,20,000 4,00,000
Vijay's Drawings (in cash) 40,000
Salaries to Staff 48,000
Bad Debts written off 4,000
Trade Expenses paid 16,000
Vijay used goods of ₹12,000 for private purposes during the year. On 31st March, 2018, his Debtors amounted to ₹1,40,000 and Creditors ₹80,000. Stock-in-Trade on that date was ₹1,60,000.

Open in App
Solution

Trading Account
for the year ended March 31, 2018
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Purchases
4,00,000
Sales
5,00,000
Less: Drawings
12,000
3,88,000
Closing Stock
1,60,000
Gross Profit
2,72,000
6,60,000
6,60,000
Profit & Loss Account
for the year ended March 31, 2018
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Salary
48,000
Gross Profit
2,72,000
Trade Expenses
16,000
Bad Debts
4,000
Net Profit
2,04,000
2,72,000
2,72,000
Balance Sheet
as on March 31, 2018
Dr.
Cr.
Liabilities
Amount
(₹)
Assets
Amount
(₹)
Capital
4,00,000
Cash in Hand
2,56,000
Less: Drawings
52,000
Debtors
1,40,000
Add: Net Profit
2,04,000
5,52,000
Less: Bad Debts
4,000
1,36,000
Creditors
80,000
Furniture
80,000
Closing Stock
1,60,000
6,32,000
6,32,000
Cash Account
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Capital A/c
4,00,000
Creditors A/c
2,00,000
Debtors A/c
1,60,000
Drawings A/c
40,000
Sales A/c
2,00,000
Furniture A/c
80,000
Purchases A/c
1,20,000
Salaries A/c
48,000
Trade Expenses A/c
16,000
Balance c/d
2,56,000
7,60,000
7,60,000
Debtors Account
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Sales A/c
3,00,000
Cash A/c
1,60,000
Balance c/d
1,40,000
3,00,000
3,00,000
Creditors Account
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Cash A/c
2,00,000
Purchases A/c
2,80,000
Balance c/d
80,000
2,80,000
2,80,000

flag
Suggest Corrections
thumbs-up
1
similar_icon
Similar questions
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Tax Computation
MATHEMATICS
Watch in App
Join BYJU'S Learning Program
CrossIcon