Question

from the following trial balance prepare profit and loss account and balance sheet of bhanu for the year ended 31st march 2018​

Answer 1

Balance Sheet (Asset) :- Sundry Debtor, Bank Balance, Sinking Fund Investment (With Adjustment Entry), Debentures(Adjustment Entry), Land and Building(Along with Depreciation Adjustment Entry), Plant and Machinery( Along with depreciation Adjustment Entry), Goodwill.

Balance Sheet (liability) :- Sundry Creditor, Share Capital, Net Profit, Outstanding Salaries.

P&L A/c :- All indirect expenses (except for factory expenses; other expense should be shown in P&L A/c For eg. Salaries.)should be shown on Debit side. While other Indirect income(Except for sales) Should be shown on P&L credit side.

Hope it helps you!

Tip :- Dont forget to add Gross Profit/ Loss in P&L A/c.