Q.1.

From the following trail balance of Suresh as on 31st March 2017, prepare Trading, Profit
and loss account and Balance sheet as on that date.
AMOUN AMOUN
DEBIT BALANCES T CREDIT BALANCES T

PURCHASES 715000 CAPITAL ACCOUNT 48500

SALARIES 42000 LOAN FROM MOHAN 16000
CARRIAGE INWARD 1500 SALES 900000
CARRIAGE OUTWARD 1000 DISCOUNT 700
LIGHTING & HEATING 1300 SUNDRY CREDITORS 20000
RATES AND
INSURANCE 1400
BUILDINGS 35000
SUNDRY DEBTORS 80000
FURNITURE 25000
CASH IN HAND 250
CASH AT BANK 21500
STOCK AS ON 1.4.2016 61250
985200 985200

Additional Information:
1. Closing stock Market value Rs.63000 and Cost Rs.61000
2. Depreciation on Building @ 2% and Furniture @ 10%