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Question
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.
Solution
| In the Books of M/s Banerjee Enterprises |
|||
| Dr. | Trading Account for the year ending 31st March, 2010 |
Cr. | |
| Particulars | Amount (₹) | Particulars | Amount (₹) |
| To Opening Stock | 25,000 | By Sales | 2,00,000 |
| To purchases | 75,000 | By Closing Stock | 10,360 |
| To Carriage Inwards | 2,000 | ||
| To Wages | 6,000 | ||
| To Electricity | 2,000 | ||
| To Gross Profit Transferred to P&L A/c |
1,00,360 | ||
| 2,10,360 | 2,10,360 | ||
| Dr. | Profit and Loss A/c for the year ending 31st March, 2010 |
Cr. | |
| Particulars | Amount (₹) | Particulars | Amount (₹) |
| To Rent | 2,500 | By Gross Profit c/f | 1,00,360 |
| To Insurance | 1,800 | By Interest on Investments | 2,000 |
| To Discount | 3,600 | By Discount | 6,000 |
| To Commission | 1,350 | By Commission | 3,510 |
| To Salaries | 8,000 | ||
| To Bad Debts | 400 | ||
| To Net Profit transferred to Capital Account |
94,220 | ||
| 1,13,870 | 1,13,870 | ||
| Balance Sheet as on 31st March, 2010 | ||||
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) |
| Creditors | - | 15,000 | Machinery | 50,000 |
| Capital | 76,440 | 1,70,660 | Investments | 20,000 |
| Add: Net Profit | 94,220 | Debtors | 32,000 | |
| Bank Overdraft | - | 20,000 | Cash in Hand | 3,000 |
| Land and Building | 90,300 | |||
| Stock | 10,360 | |||
| 2,05,660 | 2,05,660 | |||
APPEARS IN
RELATED QUESTIONS
From the following balances taken from the books of Saravanan, calculate gross profit for the year ended December 31, 2017.
| 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 |
Wages, carriage inward are recorded on the ______ side of the ______.
Distinguish between book keeping and accounting.
From the following trial balance of Mr. Roobex, prepare the final accounts of the year ended 31.12.2018.
| Debit (₹) | Credit (₹) | |
| Freehold Land | 60,000 | |
| Office and Factory Buildings | 40,000 | |
| Purchase and Sales | 1,20,000 | 2,05,000 |
| Stock | 30,000 | |
| Returns | 3,500 | 5,500 |
| Wages | 9,000 | |
| Salaries | 10,000 | |
| Office Expenses and Petties | 1,400 | |
| Carriage on Purchases and Import Duty | 2,200 | |
| Stationery and Printing Literature | 2,750 | |
| Discounts | 3,700 | |
| Bad Debts | 1,200 | |
| Capital of Mr. Roobex | 1,15,000 | |
| Loan from Miss Setalwad @ 10% (gainfully employed through the year) | 15,000 | |
| Insurance | 1,800 | |
| Sundry Debtors and Creditors | 40,000 | 12,000 |
| Interest Paid on Loan | 1,500 | |
| Commission for Agency Work | 1,600 | |
| Cash and Bank Balances | 7,700 | |
| Investments | 20,000 | |
| Petty Cash | 250 | |
| Bills Receivable and Payable | 9,000 | 2,000 |
| Bad Debts Recovered | 500 | |
| 3,60,300 | 3,60,300 |
Closing stock on 31.12.2018 was ₹ 56,000.
The following is the Trial Balance of Mr. V. Iyer for the year ended 31st December, 2018. Compile the final accounts for him, after incorporating the adjustments given.
| Dr. (₹) | Cr. (₹) | |
| 10% Loan on Mortgage of Premises | 34,000 | |
| Machinery | 50,000 | |
| Debtors and Creditors | 24,000 | 21,400 |
| Loose Tools | 5,000 | |
| Premises (owner built and mortgaged) | 75,000 | |
| Capital Invested and Cash Drawn | 4,000 | 1,00,000 |
| Stock (1.1.2018) | 18,000 | |
| Sales Against Cash | 48,000 | |
| Sales Against Credit | 72,000 | |
| Salaries | 10,000 | |
| Wages | 4,000 | |
| Carriage Outward | 2,000 | |
| Bad Debts Written off | 500 | |
| Royalty (Direct Expenses) | 3,000 | |
| Cash and Bank Balances | 6,000 | |
| Rent Paid | 5,000 | |
| Commissions | 400 | 500 |
| Purchases (Cash and Credit) and Returns | 66,000 | 6,000 |
| Rates and Taxes | 3,000 | |
| Miscellaneous Expenses | 6,000 | |
| 2,81,900 | 2,81,900 |
Closing stock is valued at ₹ 50,000.
The following is the trial balance of Mr. P. Crooke as on 31.03.2018.
| Debit (₹) | Credit (₹) | |
| Stock at Start | 30,000 | |
| Fuel & Gas | 5,600 | |
| Capital & Drawings | 8,000 | 3,50,000 |
| Debtors | 30,000 | |
| Bills Receivable & Payable | 12,000 | 8,000 |
| Additional Drawings (other than cash) | 4,000 | |
| Carriage | 9,000 | |
| Purchases & Sales | 1,90,000 | 3,40,000 |
| Bank Accounts | 15,000 | 5,000 |
| Creditors | 16,000 | |
| Returns | 5,000 | 20,000 |
| Office Administrative Expenses | 44,000 | |
| Loans (given & borrowed) | 10,000 | 1,00,000 |
| Petty Cash & Cash Balances | 2,000 | |
| Postage & Telegrams | 900 | |
| Printing & Stationery | 7,500 | |
| Wages | 20,000 | |
| Salaries | 14,000 | |
| Land | 1,50,000 | |
| Factory & Office Premises | 80,000 | |
| Machineries | 2,10,000 | |
| Commission | 8,000 | |
| 8,47,000 | 8,47,000 |
Compile the final accounts for the owner, after attending to the adjustment given below.
Adjustment:
- Stock in the Godown as on 31.3.2018 is ₹ 35,000.
From the following Trial Balance of Mr. P.H. Planner as on 31.3.2019, prepare final accounts for him:
| Debit (₹) | Credit (₹) | |
| Duty, Clearing and Freight | 10,000 | |
| Stock (1.4.2018) | 30,000 | |
| Goodwill | 30,000 | |
| Salary, Bonus and Travel Allowance | 25,000 | |
| Leasehold Premises | 90,000 | |
| Purchases and Sales | 2,40,000 | 3,80,000 |
| Debtors and Creditors | 20,000 | 15,000 |
| Capital and Drawings | 20,000 | 1,60,000 |
| General Expenses | 16,000 | |
| Factory Equipment and Tools | 18,000 | |
| Bank | 5,000 | |
| Interest-free Loan from Mr. P.H. Planner for four years | 80,000 | |
| Wages and Bonus | 35,000 | |
| Cash and Petty Cash | 17,000 | |
| Plant and Machinery | 50,000 | |
| Bill Payable and Receivable | 12,000 | 8,000 |
| Professional Charges | 18,000 | |
| Returns | 7,000 | 4,000 |
| Insurance and Office Expenses | 14,000 | |
| 6,52,000 | 6,52,000 |
Closing Stock is ₹ 45,000.
The following is the Trial Balance of Amrit Roy as on 31st December 2018:
| Debit (₹) | Credit (₹) | |
| Capital | 25,000 | |
| Building | 30,000 | |
| Furniture | 2,640 | |
| Scooter | 4,000 | |
| Returns | 2,300 | 1,600 |
| Opening Stock | 8,000 | |
| Purchases and Sales | 33,800 | 56,040 |
| Bad Debts | 400 | |
| Carriage Inwards | 600 | |
| General Expenses | 1,200 | |
| Bad Debts Provision | 700 | |
| Bank Loan | 5,000 | |
| 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 |
| 97,240 | 97,240 |
You are required to prepare the final accounts for the year ending 31st December 2018.
Closing Stock on 31.12.2018 was valued at ₹ 4,340.
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.
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.
