Question

Following are the balances extracted from the books of Manish Gupta on 31st March, 2018:
Prepare Trading and Profit and Loss Account and Balance Sheet as at 31st March, 2018 after following adjustments are made:
(i) Closing Stock was ₹ 16,000.
(ii) Depreciate Plant and Machinery @ 10% and Delivery Vehicle @ 15%.
(iii) Unpaid Rent amounted to ₹ 500.

Answer 1

Trading Account for the year ended March 31,2018Read more on Sarthaks.com -

Answer 2

Answer:

The gross profit for the year ended 31st March, 2018 is Rs 10,900.

The net loss for the year ended  31st March, 2018 is Rs. 24,900.

Explanation:

Calculation of Depreciation;

• Depreciation on plant and machinery-

Given, that depreciation is to be charged @ 10% per annum .

Depreciation = 1,20,000 X $\frac{10}{100}$ = 12,000.

• Depreciation on Delivery Vehicle -

Given, that depreciation is to be charged @ 15% per annum .

Depreciation = 26,000 X $\frac{15}{100}$ = 3,900.

The gross profit for the year ended 31st March, 2018 is Rs 10,900.

The net loss for the year ended  31st March, 2018 is Rs. 24,900.

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