Trading and Profit and Loss Account Format

Dr Cr
Amoun Amoun
Particulars Particulars
t t
Opening Stock Sales xxxxx
Purchases xxxx Less: Sales return xxx
Less: Purchase Returns xx Closing Stock
Carriage Inward Gross Loss
Excise Duty
Wages
Supervisor's Salaries
Production Manager salary
Gross Profit
XXXX XXXX
To Gross loss b/d To Gross profit b/d
Management expenses (O&A): Income:
To salaries By Discount received
To office rent, rates, and taxes By Commission received
To printing and stationery Non-trading income:
To Telephone charges By Bank interest
To Insurance By Rent received
To Audit fees By Dividend received
To Legal charges By Bad debts recovered
To Electricity charges Abnormal gains:
To Maintenance expenses By Profit on sale of machinery

To Repairs and renewals By Profit on sale of investments

To Depreciation By Net Loss

Selling distribution expenses: (transferred to Capital A/c)
To Salaries
To Advertisement
To Godown
To Carriage outward
To Bad debts
To Provision for bad debts
To Selling commission
Financial expenses:
Bank charges
Interest on loan
Discount allowed
Abnormal losses:
To Loss on sale of machinery
To Loss on sale of investments
To Loss by fire
To Net Profit
 (transferred to capital a/c)
                                    TOTAL                                       TOTAL
From the Following trial balance of John & Co. prepare the Trading and Profit and Loss Account for the year ended 31st Decem
The closing stock was valued at $32,000.
or the year ended 31st December 2019.
 Profit and Loss Account Format

Amoun Amoun
Particulars Particulars
t Sales 56000 t
Opening Stock 20000
Purchases 31000 Sales Return (1000) 55000
Pur. Ret. (1000) 30000 Closing Stock 32000
Carriage Inwards 20000
Custom Duty 4000
Wages 2000
Gross Profit 11000
87000 87000
To Gross loss b/d To Gross profit b/d 11000
Management expenses (O&A): Income:
Salaries 4000 Interest on Investment 2000
Insurance 1200
Selling distribution expenses:
Commission 500
Discount Allowed 300
Financial expenses:
To Net Profit
 (transferred to capital a/c) -4000

                                    TOTAL 2000                                       TOTAL 2000

 BALANCE SHEET
as on or as at………………….
Liabilities Amount Assets Amount
Rs. Rs.
Capital: Fixed Assets:
      Add: Net Profit Furniture
      Less: Drawings Loose Tools
      Less: Income Tax Motor Vehicle
      Less: Life Insurance
Long Term Investments
Premium
Fixed Liabilities: Plant and Machinery
      Long Term Loans Land and Buildings
Current Liabilities: Patents
Bank Overdraft Goodwill
Bill Payable Current Assets:
Sundry Creditors Cash in Hand
Outstanding Expenses Cash at Bank
Unearned Income Bills Receivable

Short-Term Investments

Sundry Debtors
Closing Stock
Prepaid Expenses(3)
Accrued Income
Illustration:
From the following balances of Siya Ram, Prepare a Balance Sheet as on 31st December, 2010.
Particulars Amount (Dr.) Amount (Cr.)
Plant and machinery 800,000
Land and Building 600,000
Furniture 150,000
Cash in Hand 20,000
Bank Overdraft 180,000
Debtors and Creditors 320,000 240,000
Bills Receivable and Bill Payable 100,000 60,000
Closing Stock 400,000
Investments (Short-term) 80,000
Capital 1,500,000
Drawings 130,000
Net Profit 620,000
26,000,000 26,000,000
 BALANCE SHEET

as on or as at………………….

Liabilities Amount Assets Amount

Rs. Rs.
Capital 1500000 Fixed Assets:
Net Profit 620000 Plant and machinery 800,000
2120000 Land and Building 600,000
Less: Drawings 130000 1990000 Furniture 150,000

LT Liabilities 0 Current Assets:

Current Liabilities: Cash in Hand 20,000

Bank Overdraft 180000 Debtors 320000
Creditors 240000 Bills Receivable 100000
Bills Payable 60000 Closing Stock 400,000
Investments (Short-term) 80,000

2470000 2,470,000
 Amount Amount
Particulars
(Dr.) (Cr.)
Plant and machinery 800,000
Land and Building 600,000
Furniture 150,000
Cash in Hand 20,000
Bank Overdraft 180,000
Debtors and Creditors 320,000 240,000
Bills Receivable and Bill Payable
100,000 60,000
Closing Stock 400,000
Investments (Short-term) 80,000
Capital 1,500,000
Drawings 130,000
Net Profit 620,000
### ###
Illustration:
From the following Trial Balance of Radhe Shyam Trading and Profit and Loss A/c for the year ending 31st December, 2010 and Balance Sh
The Closing Stock on 31st December, 2010 was valued at Rs. 2,50,000.

Debit Balances Amount (Rs.) Credit Balance Amount Trading cr

(Rs.)
Stock (1-1-2010) Sundry Creditors
200,000 150,000 Trading Dr
Purchases 750,000 Purchases Return 30,000 PL Dr
Sales Return 80,000 Sales 2,500,000 PL Cr
Freight and Carriage 75,000 Commission 33,000 BS Lb
Wages 365,000 Capital 1,700,000 BS As
Salaries 120,000 Interest on Bank Deposit 20,000
Repairs 12,000 B/P 62,000
Trade Expenses 40,000
Rent and Taxes 240,000
Cash in Hand 57,000
B/R 40,000
Land & Building 550,000
Plant and Machinery 1,600,000
Withdrawals (Drawings) 166,000
Bank Deposit 200,000
### 4,495,000
December, 2010 and Balance Sheet as on that date.
 Trading & Profit and Loss Account Format
Particulars Amount Particulars Amount
Opening Stock 200000 Sales 2500000
Purchases 750000 Less: Sales Return 80000 2420000
less: purchases return 30000 720000 By Closing stock 250000
Freight and Carriage 75000
Wages 365000
Gross Profit b/d 1310000
2670000 2670000
By Gross profit c/d 1310000
Salaries 120000 By comission received 33000
Repairs 12000 By interest on bank deposits 20000
Trade Expenses 40000
Rent and Taxes 240000
To net profit c/d 951000
1363000 1363000
By net profit b/d 951000
ccount Format Balance sheet as at 31st dec,210
Liabilities Amount Assets Amount
Capital 1700000 Fixed Assets
Add: Net Profit 951000 Land & Building 550000
Less: Drawings 166000 2485000 Plant & Machinery 1600000

Current Liabilities Current Assets

Sundry creditors 150000 Bank Deposit 200000
Bills Payable 62000 Bills Receivable 40000
Cash in hand 57000
Closing Stock 250000

2697000 2697000