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From the following Trial Balance of M/s. Sam and Sons as on 31st March 2014, prepare Trading and Profit and Loss Account and Balance Sheet.

 

Particulars

Rs.

Particulars

Rs.

Office expenses

300

Stock (opening)

9,000

Selling expenses

11,100

Plant and Machinery (1.4.2011)

20,000

General expenses

1,000

Plant and Machinery (addition 1.10.2011)

 

5,000

Sundry debtors

20,600

Drawings

6,000

Furniture and Fixtures

5,000

Capital

75,000

Return inwards

13,000

Reserve for doubtful debts

800

Printing and stationery

400

Rent for Premises Sublet

1,600

Rent, Rates and taxes

4,600

Insurance charges

700

Sundry creditors

15,000

Administrative expenses

11,000

Sales

1,31,000

Cash in hand

8,500

Return outwards

1,000

Cash at Bank

18,200

Purchases

90,000

 

 

 

 

Adjustments:

 i. Stock in hand at the endRs.14,000.

 ii. Write off Rs.600 as bad debts.

 iii. Create 5% provision for bad and doubtful debts.

 iv. Depreciate furniture and fixtures at 5% p.a. and Plant and Machinery at 20% p.a.

 v. Insurance prepaid was Rs.100.

 vi. A fire occurred in the godown and stock of the value of Rs.5,000 was destroyed. It was insured and the insurance company admitted full claim.

Asked by Topperlearning User 1st July 2016, 3:14 PM
Answered by Expert
Answer:

 Trading Account for the year ended 31st March 2014

Dr.

Cr.

Particulars

 

Rs. 

Particulars

 

Rs. 

To Opening stock 

 

9,000 

By Sales 

1,31,000

 

To Purchases  

90,000

 

(-) Sales Return 

13,000

1,18,000

(-) Purchases Return 

1,000

 

By closing stock 

 

14,000

(-) Loss by fire

5,000

84,000 

 

 

 

To Gross Profit c/d

 

39,000 

 

 

 

 

 

 

 

 

 

 

 

1,32,000

 

 

1,32,000

 

 

 

 Profit and Loss Account for the year ended 31st March 2014

Dr.

Cr.

Particulars

 

Rs. 

Particulars

 

Rs. 

To Office expenses

 

300

By Gross Profit b/d 

 

39,000

To Selling Expenses

 

11,100

By Rent Received 

 

1,600

To General expenses

 

1,000

 

 

 

To Printing and Stationery

 

400

 

 

 

To Rent, Rates and Taxes

 

4,600

 

 

 

To Insurance

700

 

 

 

 

Less: Prepaid

100

600

 

Answered by Expert 1st July 2016, 5:14 PM
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