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From the following Trial Balance of Sh. Parveen Kumar, prepare Trading and Profit & Loss Account for the year ending 31st March, 2023 and a Balance sheet as at that date:

Dr. Balances ₹ Cr. Balances ₹
Stock at Commencement 40,000 Sales 5,10,000
Purchases 3,20,000 Loan from Mr. Naresh @ 15% p.a. 40,000
Returns Inward 7,000 Returns Outwards 8,000
Sundry Debtors 80,000 Bank 24,200
Cash 9,400 Provision for Doubtful Debts 2,500
Manufacturing Expenses 44,000 Discount 1,800
Trade Expenses 7,200

Rent of Premises sublet, for

the year to 30th Sept., 2023

 4,000
Carriage 3,500 Capital 1,20,000
Salaries and Wages 15,800 Sundry Creditors 47,000
Postage 1,500    
Stationery 800    
Freight Inwards 4,300    
Land and Building 2,00,000    
Patents 8,000    
Furniture 10,000    
Insurance Premium 6,000    
  7,57,500   7,57,500

 

Informations:-

 

(1) Closting Stock was valued at ₹ 60,000. You are informed that goods valued at ₹ 12,000 were sold and dispatched on 29th March, 2023, but no entry was passed to this effect.

(2) Insurance Premium includes ₹ 1,200 paid on 1st October, 2022 to run for one year from Oct. 1, 2022 to Sept. 30, 2023.

(3) Loan from Mr. Naresh was taken on 1st July, 2022. Interest has not been paid so far.

(4) Create provision for Doubtful Debts at 5% on Sundry Debtors after writing off ₹ 600 as Bad Debts during the year.

(5) A bill of ₹ 3,200 for advertisement in the newspaper remained unpaid at the end of the year.

(6) Purchases include Furniture costing ₹ 5,000 purchased on 1st April, 2022.

(7) Charge 10% p.a. depreciation on Furniture and write off 1/5the of patents.

 

[Ans. G.P. ₹ 1,76,200; N.P. ₹ 1,35,830; B/S Total ₹ 3,76,730.]

Solution:-

Anurag Pathak Answered question
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