From the following balances prepare a Trading, Profit & Loss Account and Balance
Sheet.
Particulars ₹ Particulars ₹
Carriage on goods purchased 8,000 Cash in hand 2,500
Carriage on goods sold 3,500 Banker’s account Credit 30,000
Manufacturing Expenses 42,000 Motor Car 60,000
Advertisement 7,000 Drawings 8,000
Freight 9,600 Audit fees 2,700
Lighting 6,000 Customer’s Account 80,000
Supplier’s Account 61,000 Postage 800
Fire Insurance premium 3,600 Patents 12,000
Income tax 24,000 Office Expenses 7,200
Plant 1,53,900 Repairs to plant 2,200
Stock at the end 76,000 Purchases less returns 1,60,000
Commission on purchases 2,000 Incidental Trade Expenses 3,200
Investments 30,000 Interest on Investments 4,500
Capital account 1,00,000 Sales less returns 5,20,000
Rent Account 12,000 Discount paid 2,700
Discount on purchases 3,400
Answers
Answer:
Numerical Questions
1. Prepare a trading and profit and loss account for the year ending March 31,
2014. from the balances extracted of M/s Rahul Sons. Also prepare a balance
sheet at the end of the year.
Account Title Amount Account Title Amount
Rs. Rs.
Stock 50,000 Sales 1,80,000
Wages 3,000 Purchases return 2,000
Salary 8,000 Discount received 500
Purchases 1,75,000 Provision for doubtful debts 2,500
Sales return 3,000 Capital 3,00,000
Sundry Debtors 82,000 Bills payable 22,000
Discount allowed 1,000 Commission received 4,000
Insurance 3,200 Rent 6,000
Rent Rates and Taxes 4,300 Loan 34,800
Fixtures and fittings 20,000
Trade expenses 1,500
Bad debts 2,000
Drawings 32,000
Repair and renewals 1,600
Travelling expenses 4,200
Postage 300
Telegram expenses 200
Legal fees 500
Bills receivable 50,000
Building 1,10,000
5,51,800