From the following Trial balance, Prepare trading and profit and loss account for the year ending 31-03-17 and
the Balance sheet as on that date.
Amount
Credit Balances
Amount
Debit Balances
Machinery
Cash at bank
Cash in hand
Wages
Purchases
Stock on 1-4-2016
Sundry debtors
Bills receivable
Rent
18,000
32,000
9,000
600
8,000 Capital
2,000 Sales
1,000 Sundry creditors
2,000 Commission received
16,000
12,000
8,800
5,800
900
500
1,600
1,000
59,600
Legal Expenses
General Expenses
Bad Debts
59,600
Adjustments
1. Stock on 31-03-2017 was valued at Rs 16,000
2. Depreciate machinery by 10%
3. Rent prepaid Rs 200
4. Commission received in advance Rs 400
5. Provide PDD at 5% on debtors.
Answers
Answer:
Trading Account
for the year ended March 31, 2018
Dr.
Cr.
Particulars
Amount
(Rs)
Particulars
Amount
(Rs)
Opening stock
16,000
Sales
42,000
Purchases
20,000
Closing Stock
16,000
Wages
8,000
Manufacturing Expenses
1,500
Carriage
1,600
Gross Profit (Balance Figure)
10,900
58,000
58,000
Profit and Loss Account
for the year ended March 31, 2018
Dr.
Cr.
Particulars
Amount
(Rs)
Particulars
Amount
(Rs)
Salaries
8,000
Gross Profit
10,900
Repairs
1,900
Net Loss (Balancing Figure)
24,900
Rent
4,500
Add: Unpaid Rent
500
5,000
Bad Debts
5,000
Depreciation on:
Plant and machinery
12,000
Delivery Vehicle
3,900
15,900
35,800
35,800
Balance Sheet
as on March 31, 2018
Liabilities
Amount
(Rs)
Assets
Amount
(Rs)
Capital
1,90,000
Fixed Assets
Less: Drawings
(7,000)
Plant and Machinery
1,20,000
Less: Net Loss
(24,900)
Less:10% Deprecation
(12,000)
1,08,000
1,58,100
Delivery Vehicle
26,000
Less:15% Depreciation
(3,900)
22,100
Current Liabilities
Sundry Creditors
26,000
Current Assets
Bills Payable
23,500
Closing Stock
16,000
Unpaid Rent
500
Sundry Debtors
36,000
Cash at Bank
26,000
2,08,100
2,08,100