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 Furniture 35,000 Closing stock ₹ 8,000.

Dr. Trading Account as on March 31, 2017 Cr. Particulars Amount ₹ Particulars Amount ₹ Opening Stock 20,000 Sales 2,45,000 Purchases 1,90,000 Closing Stock 8,000 Carriage on Purchases 1,500 Profit and Loss (Gross Loss) 13,500 Wages 55,000 2,66,500 2,66,500 Dr. Profit and Loss Account as on March 31, 2017 Cr. Particulars Amount ₹ Particulars Amount ₹ Trading (Gross Loss) 13,500 Postage 300 Sundry Expenses 1,700 Rent 4,500 Net Loss 20,000 20,000 20,000 Balance Sheet of M/s Royal Traders as on March 31, 2017 Liabilities Amount₹ Assets Amount₹ Capital 2,00,000 Machinery 1,00,000 Less: Net Loss (20,000) Furniture 35,000 Less: Drawings (9,000) 1,71,000 Debtors 27,000 Closing Stock 8,000 Creditors 10,000 Bank 10,000 Bills Payable 4,000 Cash 5,000 1,85,000 1,85,000

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 - Accountancy

Question

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
Furniture	35,000

Closing stock ₹ 8,000.

Journal Entry

Solution

Dr.	Trading Account as on March 31, 2017		Cr.
Particulars	Amount ₹	Particulars	Amount ₹
Opening Stock	20,000	Sales	2,45,000
Purchases	1,90,000	Closing Stock	8,000
Carriage on Purchases	1,500	Profit and Loss (Gross Loss)	13,500
Wages	55,000
	2,66,500		2,66,500

Dr.	Profit and Loss Account as on March 31, 2017		Cr.
Particulars	Amount ₹	Particulars	Amount ₹
Trading (Gross Loss)	13,500
Postage	300
Sundry Expenses	1,700
Rent	4,500	Net Loss	20,000
	20,000		20,000

Balance Sheet of M/s Royal Traders as on March 31, 2017
Liabilities		Amount ₹	Assets	Amount ₹
Capital	2,00,000		Machinery	1,00,000
Less: Net Loss	(20,000)		Furniture	35,000
Less: Drawings	(9,000)	1,71,000	Debtors	27,000
			Closing Stock	8,000
Creditors		10,000	Bank	10,000
Bills Payable		4,000	Cash	5,000
		1,85,000		1,85,000

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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 12 | Page 357

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Credit purchases	7,50,000
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The following is the trial balance of Manju Chawla on March 31, 2017. You are required to prepare trading and profit and loss account and a balance sheet as on date:

Account title	Debit Amount ₹	Credit Amount ₹
Opening stock	10,000
Purchases and sales	40,000	80,000
Returns	200	600
Productive wages	6,000
Dock and Clearing charges	4,000
Donation and charity	600
Delivery van expenses	6,000
Lighting	500
Sales tax collected		1,000
Bad debts	600
Misc. incomes		6,000
Rent from tenants		2,000
Royalty	4,000
Capital		40,000
Drawings	2,000
Debtors and Creditors	6,000	7,000
Cash	3,000
Investment	6,000
Patents	4,000
Land and Machinery	43,000

Closing stock ₹ 2,000

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
Furniture	16,000
Plant and Machinery	1,80,000
Opening stock	40,000
Purchases	1,60,000
Sales return	6,000
Carriage inwards	7,200
Carriage outwards	1,600
Wages	84,000
Salaries	53,000

Closing stock ₹ 35,000.

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.

Prepare trading and profit and loss account from the following particulars of M/s Neema Traders as on March 31, 2017.

Account Title	Debit Amount ₹	Account Title	Credit Amount ₹
Buildings	23,000	Sales	1,80,000
Plant	16,930	Loan	8,000
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
Opening stock	9,000	Purchases return	1,910
Machinery	2,10,940
Insurance	1,610
Interest	1,100
Bad debts	250
Postage	300
Discount	1,000
Salaries	3,000
Debtors	3,900

Stock on March 31, 2017 ₹ 16,000.

From the following balances of M/s Nilu Sarees as on March 31, 2017. Prepare trading and profit and loss account and balance sheet as on date.

Account Title	Debit Amount ₹	Account Title	Credit Amount ₹
Opening stock	10,000	Sales	2,28,000
Purchases	78,000	Capital	70,000
Carriage inwards	2,500	Interest	7,000
Salaries	30,000	Commission	8,000
Commission	10,000	Creditors	28,000
Wages	11,000	Bills payable	2,370
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
Drawings	18,000

Closing stock, as on March 31, 2017 ₹ 22,000.