From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017. Account Title Debit Amount ₹ Credit Amount ₹ Stock as on April 01, 2016 16,000 Purchases and Sales 67,600 1,12,000 Returns inwards and outwards 4,600 3,200 Carriage inwards 1,400 General expenses 2,400 Bad debts 600 Discount received 1,400 Bank overdraft 10,000 Interest on bank overdraft 600 Commission received 1,800 Insurance and taxes 4,000 Scooter expenses 200 Salaries 8,800 Cash in hand 4,000 Scooter 8,000 Furniture 5,200 Building 65,000 Debtors and Creditors 6,000 16,000 Capital 50,000 Closing stock ₹ 15,000.

Dr. Trading Account as on March 31, 2017 Cr. Particulars Amount₹ Particulars Amount₹ Opening Stock 16,000 Sales 1,12,000 Purchases 67,600 Less: Sales Return Inwards (4,600) 1,07,400 Less: Return Outwards (3,200) 64,400 Closing Stock 15,000 Carriage Inwards 1,400 Profit and Loss (Gross Profit) 40,600 1,22,400 1,22,400 Dr. Profit and Loss Account as on March 31, 2017 Cr. Particulars Amount ₹ Particulars Amount ₹ General Expenses 2,400 Trading (Gross Profit) 40,600 Bad Debts 600 Discount Received 1,400 Interest on Bank Overdraft 600 Commission Received 1,800 Insurance and Taxes 4,000 Scooter Expenses 200 Salaries 8,800 Net Profit 27,200 43,800 43,800 Balance Sheet as on March 31, 2017 Liabilities Amount ₹ Assets Amount ₹ Capital 50,000 Building 65,000 Add: Net Profit 27,200 77,200 Furniture 5,200 Scooter 8,000 Creditors 16,000 Debtors 6,000 Closing Stock 15,000 Bank Overdraft 10,000 Cash in Hand 4,000 1,03,200 1,03,200

From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017. Account Title Debit Amount ₹ Credit Amount ₹ Stock as on April 01, 201 - Accountancy

Question

From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017.

Account Title	Debit Amount ₹	Credit Amount ₹
Stock as on April 01, 2016	16,000
Purchases and Sales	67,600	1,12,000
Returns inwards and outwards	4,600	3,200
Carriage inwards	1,400
General expenses	2,400
Bad debts	600
Discount received		1,400
Bank overdraft		10,000
Interest on bank overdraft	600
Commission received		1,800
Insurance and taxes	4,000
Scooter expenses	200
Salaries	8,800
Cash in hand	4,000
Scooter	8,000
Furniture	5,200
Building	65,000
Debtors and Creditors	6,000	16,000
Capital		50,000

Closing stock ₹ 15,000.

Journal Entry

Solution

Dr.	Trading Account as on March 31, 2017			Cr.
Particulars	Amount ₹	Particulars		Amount ₹
Opening Stock	16,000	Sales	1,12,000
Purchases 67,600		Less: Sales Return Inwards	(4,600)	1,07,400
Less: Return Outwards (3,200)	64,400	Closing Stock		15,000
Carriage Inwards	1,400
Profit and Loss (Gross Profit)	40,600
	1,22,400			1,22,400

Dr.	Profit and Loss Account as on March 31, 2017		Cr.
Particulars	Amount ₹	Particulars	Amount ₹
General Expenses	2,400	Trading (Gross Profit)	40,600
Bad Debts	600	Discount Received	1,400
Interest on Bank Overdraft	600	Commission Received	1,800
Insurance and Taxes	4,000
Scooter Expenses	200
Salaries	8,800
Net Profit	27,200
	43,800		43,800

Balance Sheet as on March 31, 2017
Liabilities		Amount ₹	Assets	Amount ₹
Capital	50,000		Building	65,000
Add: Net Profit	27,200	77,200	Furniture	5,200
			Scooter	8,000
Creditors		16,000	Debtors	6,000
			Closing Stock	15,000
Bank Overdraft		10,000	Cash in Hand	4,000
		1,03,200		1,03,200

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Trading and Profit and Loss Account

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NCERT Accountancy - Financial Accounting 1 [English] Class 11

Chapter 9 Financial Statements - I
Numerical Questions | Q 11 | Page 356

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Calculate the amount of gross profit and operating profit on the basis of the following balances extracted from the books of M/s Rajiv and Sons for the year ended March 31, 2017.

	₹
Opening stock	50,000
Net sales	11,00,000
Net purchases	6,00,000
Direct expenses	60,000
Administration expenses	45,000
Selling and distribution expenses	65,000
Loss due to fire	20,000
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Account title	Debit ₹	Credit ₹
Opening Stock	2,00,000
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Sales		10,10,000
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(Only relevant items)
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Prepare trading and profit and loss account and balance sheet as on March 31, 2017:

Account Title	Amount ₹	Account Title	Amount ₹
Machinery	27,000	Capital	60,000
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Drawings	2,700	Sundry creditors	1,400
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Sundry expenses	600
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Purchases	50,000	Loan	10,000
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Advertisement	500
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Sales return	1,000
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Income tax	100
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The following is the trial balance of Mr. Deepak as on March 31, 2017. You are required to prepare trading account, profit and loss account and a balance sheet as on date:

Account title	Debit Amount ₹	Account title	Credit Amount ₹
Drawings	36,000	Capital	2,50,000
Insurance	3,000	Bills payable	3,600
General expenses	29,000	Creditors	50,000
Rent and taxes	14,400	Discount received	10,400
Lighting (factory)	2,800	Purchases return	8,000
Travelling expenses	7,400	Sales	4,40,000
Cash in hand	12,600
Bills receivable	5,000
Sundry debtors	1,04,000
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Plant and Machinery	1,80,000
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Purchases	1,60,000
Sales return	6,000
Carriage inwards	7,200
Carriage outwards	1,600
Wages	84,000
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Prepare trading and profit and loss account and balance sheet of M/s Royal Traders from the following balances as on March 31, 2017.

Debit balances	Amount ₹	Credit balances	Amount ₹
Stock	20,000	Sales	2,45,000
Cash	5,000	Creditors	10,000
Bank	10,000	Bills payable	4,000
Carriage on purchases	1,500	Capital	2,00,000
Purchases	1,90,000
Drawings	9,000
Wages	55,000
Machinery	1,00,000
Debtors	27,000
Postage	300
Sundry expenses	1,700
Rent	4,500
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Closing stock ₹ 8,000.

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Carriage inwards	1,000	Bills payable	2,520
Wages	3,300	Bank overdraft	4,720
Purchases	1,64,000	Creditors	8,000
Sales return	1,820	Capital	2,36,000
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Machinery	2,10,940
Insurance	1,610
Interest	1,100
Bad debts	250
Postage	300
Discount	1,000
Salaries	3,000
Debtors	3,900

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Purchases	78,000	Capital	70,000
Carriage inwards	2,500	Interest	7,000
Salaries	30,000	Commission	8,000
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Rent and taxes	2,800
Repairs	5,000
Telephone expenses	1,400
Legal charges	1,500
Sundry expenses	2,500
cash in hand	12,000
Debtors	30,000
Machinery	60,000
Investments	90,000
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Account Title	Debit Amount ₹	Credit Amount ₹
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Purchases and sales	3,50,000	4,21,000
Sales returns	5,000
Capital		3,00,000
Commission		4,000
Creditors		1,00,000
Bank overdraft		28,000
Cash in hand	32,000
Furniture	1,28,000
Debtors	1,40,000
Plants	60,000
Carriage on purchases	12,000
Wages	8,000
Rent	15,000
Bad debts	7,000
Drawings	24,000
Stationery	6,000
Travelling expenses	2,000
Insurance	7,000
Discount	5,000
Office expenses	2,000

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