Question

Abraham started business on 1st April, 2018. Stock on 31st March, 2019 was 15,000. Fromthe following figures extracted from his books, prepare Trading and Profit & Loss Accountfor the year ending 31st March, 2019 and balance sheet as at that date :LedoerDr. BalancesCr. Balances​

Answer 1

Explanation:

Trading A/c

Particular

AmountParticular

AmountTo Opening Stock A/c 60,000By Sale A/c 80,000To Purchases A/c 14,500   To carriage A/c 800By Closing Stock 15,000To M.Power, lighting,heating A/c 1,600   To Gross Profit A/c 18,100     95,000  95,000

 

Profit/Loss A/c

Particular

AmountParticular

AmountTo Salaries A/c 2,000By Gross Profit A/c 18,100To Rent A/c 700   To Insurance A/c 500   To Interest on loan A/c 200   To Carriage A/c 300   To Net profit A/c 14,400     18,100  18,100