Question

The following are the balances extracted from the books of mr. arjun as on 31-12-2016. prepare trading.profit.and loss a/c and balance sheet particular amount rs. opening stock 20000. machinery.4000. purchase. 70000.capital 100000.purchase returns 1000 sales 90000. sales return 1000. wages 2000. salaries 5000. rent 2000. insurance1000. debtors 50000. cash 4000. bank 25000. creditors 29000​

Answer 1

Explanation:

trading a/c

dr items.

opening stock 20000

purchase70000-1000(purcahse return)=69000

wages 2000

cr.items

sales90000-1000(sales return)=89000

gross loss 2000

p/l ac

dr items

gross loss 2000

insurance 1000

rent 2000

salaries 5000

cr items

net loss

10000

balance sheet

liabilities

capital 100000-10000(net loss)=90000

creditors 29000

dr itemsbank 25000

cash 4000

debtors 50000

machinery 40000

both equals 119000

by the u have writeen wrong amount of machinery its 40000 not 4000