Question

that date of M/s Durgesh and Dinesh :
Trial Balance as on 31st March, 2016
Debit Balance
Amount
Credit Balance
Amount
Opening stock
Cash in hand
Discount allowed
Salaries
Land and building
9,000 Capital Alc's
1.200 Durgesh
450 Dinesh
650 Sales
25,000 Sundry creditors
9,000 Bills payable
Bank loan
11,000 Discount received
12,500 Purchase return
425
17,500
17.500
23,600
14.500
3.500
Furniture
10,000
750
1.100
Plant and
machinery
Sundry debtors
Interest paid
Printing and
stationary
Purchases
600
16,000
Wages
1,400
Sales return
900
Bad debts
325
88,450
88,450
Page 10​

Answer 1

Answer:

I need the solution of this sum

Answer 2

The correct answer: From the following Trial Balance and Adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended on 31st March, 2016 and Balances Sheet as on that date of M/s Durgesh and Dinesh.

Adjustments:

(1). The stock on hand 31 st March, 2016 was valued at ₹14,5000.

(2). Outstanding salary was ₹350K.

(3). Wages paid on advance ₹600.

(4). Depreciate land and building at 5% p.s. and plant and machinery at 10% p.a.

(5). Write off ₹500 for further bad debts.

The Trading and Profit and Loss Account for the year ended on 31st March, 2016 and Balances Sheet as on that date of M/s Durgesh and Dinesh is given below.

Given:

The trial balance sheet as on 31st March, 2016 is given.

To Find:

Using the given trial balance sheet, we have to prepare the Trading and Profit and Loss Account for the year ended on 31st March, 2016 and Balances Sheet as on that date of M/s Durgesh and Dinesh.

Solution:

• A business firm's trading account is a statement that details the gross earnings from its operations over a given time frame.

• The closure journal entry is used to update the inventory accounts and close out any temporary purchases and revenue accounts before preparing the trading account.

• An organization's revenue and spending (profit and loss) for a specific time period, usually one month or aggregated months across a year, are displayed in a profit and loss statement.
• A company's profit and loss statement is calculated by adding up all of its sources of income and deducting all of its expenses that are related to revenue.
• An organization's assets, liabilities, and shareholder equity are listed on a balance sheet, which is a financial statement.
• Typically, balance sheets are created at the conclusion of an accounting period, such as the month, quarter, or year.

The prepared trading a/c, profit and loss account and balance sheet are given below.

Hence, Trading and Profit and Loss Account for the year ended on 31st March, 2016 and Balances Sheet as on that date of M/s Durgesh and Dinesh is prepared as above.

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