Question 8.
From the following Trial Balance of Mahesh, prepare his Final Accounts for the year ended 31st March, 2018:
Additional Information:
(i) Closing Stock on 31st March, 2018 was ₹ 21,000.
(ii) Rent of ₹ 1,200 has been received in advance.
(iii) Outstanding liability for trade expenses ₹ 12,000.
(iv) Commission earned during the year but not received was ₹ 2,100.
(v) Goods costing ₹ 2,000 were taken by the proprietor for his personal use but no entry has been passed in the books of account.
Answers
Trading and P&L A/c with Balance Sheet as at 31.3.2018
Explanation:
In the Books of Mahesh
Trading and P&L A/c
for the year ended 31.3.2018
Particulars Amount(Rs.) Particulars Amount(Rs.)
To Opening Stock 30,000 By Sales 500000
To Return Inwards 12000 By Closing Stock 21000
To Purchases 238000
(-2,000-10,000)
To Carriage 8000
To Wages 60000
To Gross Profit 173000
(bal. fig.)
To Advertisement 15000 By Gross Profit 173000
To Trade Expenses 14000 By Rent Received 3800
(2000+12000) (5000-1200)
To Insurance 1200 By Commission 3100
To Repairs 8000 (1000+2100)
To Printing 6000
To Interest on Bank 2800
To Interest on Loan 800
(3600-2800)
To Net Profit 132100
(bal. fig.)
Balance Sheet
as at 31.3.2018
Notes to A/c Amount(Rs.)
Non-Current Assets:
Machinery 280000
Furniture 34000
Current Assets:
Closing Stock 21000
Debtors 115000
Bills Receivable 4000
Cash at Bank 28000
Cash in Hand 12000
Commission Accrued 2100
Total(A) 496100
Non-Current Liabilities:
Capital 240000 350100
Add:Net Profit 132100
Less:Drawings (22000)
Loan from Bank 30800
(30,000+800)
Current Liabilities:
Creditors 1,00,000
Bills Payables 2000
Advance Rent 1200
O/s Trade Expenses 12000
Total(B) 496100
Answer:
it is Trading account of above ❓❓
