Question

Prepare Trading and Profit and Loss Account and Balance Sheet from the following balances relating to the year ended 31st March, 2018:

Additional Information:

(i) Closing Stock was valued at Rs. 14,500.
(ii) Depreciate Plant and Machinery by Rs 4,000.
(iii) Write off Bad Debts Rs 5,000.
(iv) A sum of Rs. 400 is due for repairs.

Answer 1

Trading Account
for the year ended March 31, 2019

Dr.				Cr.
Particulars			Amount (₹)	Particulars		Amount (₹)
Opening stock			20,000	Sales	1,64,000
Purchases		1,05,000		Less: Return Inwards	(3,000)	1,61,000
Less: Return out words		(5,000)	1,00,000	Closing Stock		14,500
Wages			50,000	Gross Loss (Balancing Figure)		5,000
Manufacturing Expenses			8,000
Carriage			1,500
Fuel and Power			1,000
			1,80,500			1,80,500

Profit and Loss Account
for the year ended March 31, 2019

Dr.					Cr.
Particulars				Amount (₹)	Particulars	Amount (₹)
Gross Loss				5,000
Repairs			500
Add: outstanding			400	900
Rent				4,000
Miscellaneous Expenses				7,000
Bad Debts		2,000			Net Loss (Balancing Figure)	27,900
Add: Additional bad debts		5,000		7,000
Depreciation on Plant and Machinery				4,000
				27,900		27,900

Answer 2

                   Balance Sheet as March 31,2018  

Answer 3

Balance Sheet
as on March 31, 2019

Liabilities		Amount (₹)	Assets		Amount (₹)
Capital	1,00,000		Fixed Assets
Less: Drawings	(10,000)		Plant and Machinery	40,000
Less: Net Loss	(27,900)	62,100	Less: Depreciation	(4,000)	36,000
Current Liabilities			Current Assets
Creditors		12,000	Closing Stock		14,500
Bills Payable		5,000	Sundry Debtors	24,000
Outstanding Repairs		400	Less: Further Bad Debts	(5,000)	19,000
			Bank		10,000
		79,500			79,500