The following is the Trial Balance of Raj as at 31st March, 2017 :
PARTICULARS Dr, Cr.
(Rs.) (Rs.)
Capital - 25,000
Building 30,000 -
Furniture 2,640 -
Scooter 4,000 -
Returns inward and outward 2,300 1,600
Stock on 1st April, 2016 8,000 -
Purchases and Sales 33,800 56,040
Bad-Debts 300 -
Carriage inward 700 -
General Expenses 1,200 -
Bank loan - 5,700
Interest on Bank Loan 300 -
Commission - 900
Insurance and Taxes 2,000 -
Scooter Expenses 2,600 -
Salaries 4,400 -
Cash in hand 2,000 -
Debtors and Creditors 3,000 8,000
Total 97,240 97,240
You are required to prepare the Trading A/c, Profit & Loss A/c & Balance Sheet for the year ending 31st March, 2017 taking into account the following Adjustment:
Closing Stock on 31st March, 2017 was valued at Rs.4,340.
Answers
According to the given sum,
The gross profit and net profit of the Trading and Profit and Loss Account of Raj can be calculated as:-
Gross Profit= Closing Stock + (Sales-Sales Return) - Opening Stock - (Purchases-Purchases Return)
= 4340 + (56040-1600) - 8000 - (33800- 2300)
= 29280
Net Profit = Gross Profit - Insurance - Carriage - Interest on Bank Loan -
Commission - General Expenses - Salaries - Scooter
Expenses - Bad Debt
= 29280 - 2000 - 7000 - 300 - 900 - 1200 - 4400 - 2600 - 300
= 10580
Calculation of both Asset and Liabilities of the Balance Sheet of the Raj as on 31st March, 2017:-
:- Asset = Building + Furniture + Scooter + Closing Stock + Cash in Hand +
Debtors
= 30000 + 2640 + 4000 + 4340 + 2000 + 3000 = 45980
:- Liabilities = Capital + Net Profit + Bank Loan + Creditors
= 25000 + 10580 + 5700 + 8000 = 45980