1.

From the following Trial Balance and other information prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date: Particulars Dr. (₹) Cr. (₹) Sundry Debtors ................................................................................ 3,20,000 … Stock on 1st April, 2017 ................................................................................ 2,20,000 … Cash in Hand ................................................................................ 350 … Cash at Bank ................................................................................ 15,450 … Plant and Machinery ................................................................................ 1,75,000 … Sundry Creditors ................................................................................ … 1,06,500 General Expenses ................................................................................ 10,750 … Sales ................................................................................ … 13,45,000 Salaries ................................................................................ 22,250 … Carriage Outwards ................................................................................ 4,000 … Rent ................................................................................ 9,000 … Bills Payable ................................................................................ … 75,000 Purchases ................................................................................ 11,88,700 … Discounts ................................................................................ 11,000 … Premises ................................................................................ 3,45,000 … Capital on 1st April 2017 ................................................................................ … 7,95,000 Total 23,21,500 23,21,500 Stock on 31st March, 2018 was ₹ 1,24,500. Rent was unpaid to the extent of ₹ 850 and ₹ 1,500 were outstanding for General Expenses; ₹ 4,000 are to be written off as bad debts out of the above debtors; and 5% is to be provided for doubtful debts. Depreciate Plant and Machinery by 10% and Business Premises by 2%.Manager is entitled to a commission of 5% on net profit after charging his commission.

Answer» From the following Trial Balance and other information prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date:























































































































Particulars


Dr.


(₹)


Cr.


(₹)

Sundry Debtors ................................................................................
3,20,000


…

Stock on 1st April, 2017 ................................................................................
2,20,000


…

Cash in Hand ................................................................................
350


…

Cash at Bank ................................................................................
15,450


…

Plant and Machinery ................................................................................
1,75,000


…

Sundry Creditors ................................................................................
…


1,06,500

General Expenses ................................................................................
10,750


…

Sales ................................................................................
…


13,45,000

Salaries ................................................................................
22,250


…

Carriage Outwards ................................................................................
4,000


…

Rent ................................................................................
9,000


…

Bills Payable ................................................................................
…


75,000

Purchases ................................................................................
11,88,700


…

Discounts ................................................................................
11,000


…

Premises ................................................................................
3,45,000


…

Capital on 1st April 2017 ................................................................................
…


7,95,000

Total
23,21,500


23,21,500




Stock on 31st March, 2018 was ₹ 1,24,500. Rent was unpaid to the extent of ₹ 850 and ₹ 1,500 were outstanding for General Expenses; ₹ 4,000 are to be written off as bad debts out of the above debtors; and 5% is to be provided for doubtful debts. Depreciate Plant and Machinery by 10% and Business Premises by 2%.

Manager is entitled to a commission of 5% on net profit after charging his commission.


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