On 31st March, 2025 the following Trial Balance was extracted from the books of Roshan Brothers:-
On 31st March, 2025 the following Trial Balance was extracted from the books of Roshan Brothers:-
Prepare Trading and Profit & Loss Account for the year ended 31st March, 2023 and Balance Sheet as at that date after taking into account the following:-
(a) Private purchases amounting to ₹ 24,000 have been debited to Purchases Account.
(b) Depreciate Land and Buildings at 21/2% and Motor Vehicles at 20%
(c) Salaries oustanding ₹ 1,200.
(d) Prepaid Insurance ₹ 1,000.
(e) Provision for Doubtful Debts is to be maintained at 5% on Debtors.
(f) Stock on 31st March, 2025 was valued at ₹ 42,000.
[Ans. G.P. ₹ 2,32,200; N.P. ₹ 88,000 and B/S Total ₹ 3,44,200.]
| Particulars | Dr. (₹) | Cr. (₹) |
| Capital | 1,80,000 | |
| Drawings | 30,000 | |
| Debtors and Creditors | 1,20,000 | 60,000 |
| Bank Loan | 57,000 | |
| Interest on Loan | 1,800 | |
| Cash | 12,000 | |
| Provision for Bad Debts | 4,200 | |
| Stock 1-4-2024 | 40,800 | |
| Motor Vehicles | 60,000 | |
| Bank | 21,000 | |
| Land and Buildings | 72,000 | |
| Bad Debts | 3,000 | |
| Purchases and Sales | 3,96,000 | 6,60,000 |
| Returns | 48,000 | 9,000 |
| Carriage Outward | 15,000 | |
| Carriage Inward | 18,000 | |
| Salaries | 54,000 | |
| Rent and Insurance | 18,000 | |
| Advertising | 21,000 | |
| Discount | 3,000 | |
| General Expenses | 20,400 | |
| B/R and B/P | 36,000 | 12,000 |
| Rent Received | 1,800 | |
| 9,87,000 | 9,87,000 |
Anurag Pathak Answered question
Solution:-
Hint: Returns shown on the Dr. side of Trial Balance will be treated as sales returns and returns shown on the Cr. side will be treated as purchases returns.
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