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Question
Prepare a Trading, Profit and Loss A/c. and Balance Sheet of M/s. Sultan Enterprises for the year ended 31st March, 2010 from the following Trial Balance:
| Trial Balance as on 31.03.2010 | ||
| Heads of Accounts | Dr. (₹) | CR. (₹) |
| Opening Stock | 15,000 | |
| Salary | 2,400 | |
| Purchase & Sales | 80,000 | 1,20,000 |
| Machinery | 40,000 | |
| Returns | 4,000 | 5,000 |
| Commission Received | 6,000 | |
| Investments | 10,000 | |
| Interest on Investment | 1,200 | |
| Carriage on Purchase | 3,000 | |
| Rent & Rates | 4,000 | |
| Debtors & Creditors | 22,800 | 15,700 |
| Bills Receivable & Bills Payable | 3,400 | 4,100 |
| Cash-in-hand | 6,400 | |
| Wages | 18,600 | |
| Discount Allowed | 5,200 | |
| Royalty Paid | 12,000 | |
| Discount Received | 6,000 | |
| Drawings and Capital | 1,200 | 70,000 |
| 2,28,000 | 2,28,000 | |
Closing Stock was ₹ 15,250.
Solution
| In the Book of M/s. Sultan Enterprises | |||||
| Dr. | Trading Account | Cr. | |||
| Particulars | Amount (₹) | Amount (₹) | Particulars | Amount (₹) | Amount (₹) |
| To Opening Stock | 15,000 | By Sales | 1,20,000 | 1,16,000 | |
| To Purchase | 80,000 | 75,000 | Less: Return inwards | (4,000) | |
| Less: Returns outwards | (5,000) | By Closing Stock | 15,250 | ||
| To Royalty paid | 12,000 | ||||
| To wages | 18,600 | ||||
| To Carriage on Purchase | 3,000 | ||||
| To P/L A/c | 7,650 | ||||
| (Gross Profit) | 1,31,250 | 1,31,250 | |||
| Dr. | Profit and Loss Account For the year ending 31st March, 2010 |
Cr. | |
| Particulars | Amount (₹) | Particulars | Amount (₹) |
| To Salary | 2,400 | By Trading A/c (Gross Profit) | 7,650 |
| To Rent and Rates | 4,000 | By Commission Received | 6,000 |
| To Discount Allowed | 5,200 | By Interest on Investment | 1,200 |
| By Discount Received | 6,000 | ||
| To Net Profit | 9,250 | ||
| 20,850 | 20,850 | ||
| Balance Sheet as at 31st March, 2010 | ||||
| Particulars | Amount (₹) | Amount (₹) | Particulars | Amount (₹) |
| Capital | 70,000 | 78,050 | Machinery | 40,000 |
| Add: Net Profit | 9,250 | Investment | 10,000 | |
| 79,250 | Debtors | 22,800 | ||
| Less: Drawings | (1,200) | Bills receivable | 3,400 | |
| Creditors | 15,700 | Cash in hand | 6,400 | |
| Bills payable | 4,100 | Closing Stock | 15,250 | |
| 97,850 | 97,850 | |||
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RELATED QUESTIONS
Carriage inwards will be shown ______.
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| Particulars | ₹ | Particulars | ₹ |
| Opening stock | 1,50,000 | Net sales during the year | 4,00,000 |
| Direct expenses | 8,000 | Net purchases during the year | 1,50,000 |
| Closing Stock | 25,000 |
Prepare a Trading, Profit and Loss account of Mr. ABC for the year ending on 31st March, 2023 and a Balance Sheet as on 31st March, 2023.
| Particulars | Amount (Dr.) Rs. | Amount (Cr.) Rs. |
| Capital | 80,000 | |
| Drawings | 4,000 | |
| Cash at Bank | 4,700 | |
| Purchase | 66,000 | |
| Sales | 1,15,000 | |
| Purchase Returns | 3,000 | |
| Sales Returns | 6,000 | |
| Discount | 1,200 | |
| Carriage Outwards | 1,800 | |
| Salaries | 18,000 | |
| Trade expenses | 3,600 | |
| Opening stock | 15,000 | |
| Bad debts | 1,800 | |
| Rent | 4,500 | |
| Machinery | 1,08,000 | |
| Furniture | 18,000 | |
| Debtors | 12,000 | |
| Creditors | 30,000 | |
| Stationery | 7,500 | |
| Commission received | 900 | |
| Loan | 43,200 | |
| 2,72,100 | 2,72,100 |
Closing stock on 31st March, 2023 was valued at Rs. 78,000.
Gross Profit/loss is transferred from ______.
Why is a Trading Account prepared?
The following is the trial balance of Mr. C. Nariman for the year ended 31st December, 2018. Complete the final accounts for him, after incorporating the adjustments and thereafter complete the required details listed by him.
| Debit (₹) | Credit (₹) | |
| Capital | 65,000 | |
| Drawings | 4,000 | |
| Purchases and Returns Outward | 25,000 | 4,000 |
| Cash Sales | 17,000 | |
| Credit Sales | 54,000 | |
| Stock (1.1.2018) | 9,000 | |
| Salaries | 10,000 | |
| Wages | 3,000 | |
| Carriage Inward | 2,000 | |
| Bad Debts | 500 | |
| Petty Cash | 100 | |
| Cash and Bank | 6,000 | |
| Rent, Rates and Taxes | 4,000 | |
| Discounts | 400 | 500 |
| Telephones, Postage and Stationery | 1,500 | |
| Bank Loan on Mortgage | 14,000 | |
| Premises and Godowns | 35,000 | |
| Machinery | 50,000 | |
| Debtors and Creditors | 10,000 | 6,000 |
| 1,60,500 | 1,60,500 |
Stock on 31.12.2018 is ₹ 30,000.
From the following trial balance of Mr. A prepare a Trading Account and a Profit and Loss Ale for the year ending 3tst Dec., 2018 and a Balance Sheet as on that date:
| TRIAL BALANCE | |||
| Debit Balance | (₹) | Credit Balance | (₹) |
| Cash | 10,000 | Sales | 1,80,500 |
| Stock | 40,800 | Returns | 195 |
| Wages | 22,525 | Loan | 20,000 |
| Ourchases | 1,30,295 | Creditors | 30,305 |
| Returns Inward | 2,400 | Discount | 530 |
| Repairs | 1,675 | Capital | 37,500 |
| Bad Debts | 2,310 | ||
| Interest on Loan | 600 | ||
| Salaries | 8,000 | ||
| Sales Tax | 800 | ||
| Octroi | 500 | ||
| Insurance | 1,000 | ||
| Charity | 125 | ||
| Rent | 2,000 | ||
| Machinery | 16,000 | ||
| Debtors | 30,000 | ||
| 2,69,030 | 2,69,030 | ||
Stock on 31st Dec., 2018 was ₹ 40,925.
Prepare Trading, Profit and Loss A/c and Balance Sheet of M/s Banerjee Enterprises for the Year ended 31st March, 2010 from the following Trial Balance.
| Heads of Accounts | (Dr.) (₹) | (Cr.) (₹) |
| Opening Stock | 25,000 | - |
| Purchases and Sales | 75,000 | 2,00,000 |
| Discounts | 3,600 | 6,000 |
| Debtors and Creditors | 32,000 | 15,000 |
| Bad debts | 400 | - |
| Cash-in-Hand | 3,000 | - |
| Machinery | 50,000 | - |
| Salaries | 8,000 | - |
| Carriage Inwards | 2,000 | - |
| Wages | 6,000 | - |
| Investments | 20,000 | - |
| Land and Building | 90,300 | - |
| Bank Overdraft | - | 20,000 |
| Commissions | 1,350 | 3,510 |
| Interest on Investments | - | 2,000 |
| Electricity | 2,000 | - |
| Rent | 2,500 | - |
| Insurance | 1,800 | - |
| Capital | - | 76,440 |
| 3,22,950 | 3,22,950 |
Closing stock was ₹ 10,360.
The following is the Trial Balance of ABC Industries as on 31st December 2015.
| TRIAL BALANCE of ABC Industries as on 31.12.2015 | |||
| Particulars | Amount (Dr.) | Particulars | Amount (Cr.) |
| Salaries | 4,000.00 | Sales | 83,000.00 |
| Cash Balance | 2,000.00 | Rent Received | 2,000.00 |
| Bank Balance | 3,000.00 | Purchases Returns | 1,000.00 |
| Wages | 1,500.00 | Creditors | 7,000.00 |
| Insurance | 500.00 | Capital Account | 25,000.00 |
| Trade Expenses | 7,000.00 | ||
| Discount Allowed | 750.00 | ||
| Opening Stock (1.1.2015) | 5,000.00 | ||
| Buildings | 40,000.00 | ||
| Furniture | 15,000.00 | ||
| Sales Returns | 250.00 | ||
| Drawings | 1,000.00 | ||
| Debtors | 5,000.00 | ||
| Purchases | 30,000.00 | ||
| Legal Charges | 1,000.00 | ||
| Advertisement Expenses | 2,000.00 | ||
| 1,18,000.00 | 1,18,000.00 | ||
The closing stock was valued at ₹ 9,000.
You are required to prepare a Trading Account and a Profit and Loss Account for the year ending 31st December 2015 and a Balance Sheet as on 31st December, 2015.
From the following Trail Balance of A.B. Chandra as on 31st December, 2019.
| TRIAL BALANCE of A.B. Chandra As on 31.12.2019 | |||
| Particulars | Amount (Dr.) | Particulars | Amount (Cr.) |
| Cash in Hand | 2,000 | Discount Received | 750 |
| Drawings | 2,800 | Capital | 40,000 |
| Opening Stock (01/01/2018) | 4,000 | Purchases Returns | 1,250 |
| Wages | 2,000 | Sales | 83,000 |
| Cash at Bank | 3,500 | Creditors | 15,000 |
| Insurance | 700 | Bank Loan | 10,000 |
| Trade Expenses | 1,200 | ||
| Furniture | 20,000 | ||
| Buildings | 61,000 | ||
| Salaries | 5,000 | ||
| Discount Allowed | 750 | ||
| Sales Returns | 3,000 | ||
| Purchases | 31,250 | ||
| Debtors | 10,000 | ||
| Telephone Charges | 1,000 | ||
| Bills Receivable | 1,800 | ||
| 1,50,000 | 1,50,000 | ||
The closing stock was valued at ₹ 12,000.
You are required to prepare a Trading Account and a Profit and Loss Account for the year ending 31st December 2019 and a Balance Sheet as on 31st December, 2019.
