Prepare trading account from the following ledger balances presented by P.

Sen as on 31st March, 2016.

Additional information:
i.  Stock on 31st March, 2016 Rs.  20,000
ii.  Outstanding wages amounted to Rs.  4,000
iii. Gas and fuel was paid in advance for Rs.  1,000
 Trading Account
Dr Cr
Particulars Amount Particulars Amount
Opening Stock 10000 Sales 300000
Purchases 160000 Less: Return I/W 16000 284000
Less: Return O/w 10000 150000
Wages 30000 Closing Stock 20000
Add: O/s wages 4000 34000
Carriage Inward 10000
Freight Inward 8000
Gas & Fuel 8000
Less: Paid in advance 1000 7000
219000
Gross Profit 85000
304000 304000
From the following particulars presented by Thilak for the year ended 31st March, 2017,
prepare profit and loss account.

Adjustments: WN: Debtors = 40000

i. Outstanding salaries amounted to Rs.  4,000 Less: ABD 3000
ii.  Rent paid for 11 months 37000
iii.  Interest due but not received amounted to Rs.  2,000 Less:PBD 1850
iv. Prepaid insurance amounted to Rs.  2,000 35150
v.  Depreciate buildings by 10%
vi. Further bad debts amounted to Rs.  3,000 and make a provision for bad debts @ 5% on sundry debtors
vii.  Commission received in advance amounted to Rs.  2,000
 P/L A/C
Dr Cr
Particulars Amount Particulars Amount
Rent Paid 22000 Gross Profit 100000
Add: o/S Rent 2000 24000 Commission 12000
Salaries 10000 Less: Received in adv 2000 10000
Add: O/s Salaries 4000 14000 Disc Received 2000
Insurance Premium 8000 Interest received 6000
Less: Ins Premium 2000 6000 Add: O/s Interest 2000 8000
Bad Debt 2000 Old PBD 4000
Add: Further BD 3000
Add: PBD 1850 6850
Depreciation on Buildings 8000
58850

Net Profit 65150

124000 124000
From the following balances as on 31st December, 2017, prepare profit and loss account.

Adjustments:
i.               Rent accrued but not yet received Rs.  500
ii.               Fire insurance premium prepaid to the extent of Rs.  1,500
iii.               Provide manager’s commission at 10% on profits before charging such commission.

Profit before charging commission = 55500 - 45500 = Rs 10000

Commission = Net Profit before charging commission x Rate/100

 P/L Account
Dr Cr
Particulars Amount Particulars Amount
Salaries 18000 Gross Profit 50000
Office Rent paid 12000 Rent received 2000
Advertisement 8000 Add: Accrued Rent 500 2500
Carriage o/w 2500 Discount Received 3000
Fire Insurance premi 6500
Less: Prepaid 1500 5000
45500
Manager's commission 1000
Net Profit 9000
55500 55500
From the following balances obtained from the books of Siva, prepare trading and profit and loss account.

Adjustments:
i.               Closing stock on, 31st December, 2016 was Rs.  4,500
ii. Manager is entitled to receive commission @ 5% of net profit after providing such commission.

Profit before charging commission = 14000 - 9800 = Rs 4200

Commission = Net Profit before charging commission x Rate/(100+Rate) = Rs 200

 Trading and P/L Account
Dr Cr
Particulars Amount Particulars Amount
Op Stock 9000 Sales 42000
Purchases 22000 Closing Stock 4500
Exo on Purchases 1500
Gross Profit 14000
46500 46500

Bank Charges 3500 Gross Profit 14000

Bad Debt 1200
Sundry expenses 1800
Disc allowed 1700
Exp on sales 1000
Repair on office furniture 600
Manager's commission 200
Net Profit 4000
14000 14000
Solution 1
Trading and P/L Account
Dr Cr
Particulars Amount Particulars Amount
Opening stock 4000 Sales 29000
Purchases 19000 Closing Stock 1200
Wages 10000
Less: Prepaid wages 400 9600 Gross loss 2700
Carriage I/w 300
Gross Profit
32900 32900
Gross loss 2700
Salaries 400 Net Loss 4800
Rent & Taxes 900
Add: O/s Rent & Taxes 100 1000
Depreciation @10% 700 700

4800 4800
 Balance Sheet
Dr Cr
Liabilities Amount Assets Amount
Machinery 7000
Capital 20000 Less: Depreciation 700 6300
Less: Net loss 4800
Less: Drawings 1800 13400 Closing Stock 1200
Bank Balance 3000
Creditors 2800 Sundry Debtors 5400
O/s Rent & Taxes 100 Pre-paid wages 400

16300 16300
Solution 2
Trading and P/L Account
Dr Cr
Particulars Amount Particulars Amount
Opening stock 38500 Sales 231440
Purchases 110000 Closing Stock 72600
Less: Pur Returns 1100 108900
Freight 9900
Wages 35200
Less: Installation wages 1100 34100
Gas & Fuel 2970
Factory Lighting 1100
Gross Profit 108570
304040 304040
Salaries 13200
Office expenses 2750 Gross Profit 108570
Postage & Telegram 1540 Old provision for BD 880
Insurance 1760 Interest on loan 1100
Office Rent 2860 add o/s interest 3300 4400
Discount 1320
Depreciation:
Plant & machinery 38500
Furniture 550
Freehold Property 3300
Loose Tools 440 42790
Bad debt 660
Additional Bad debts 600
Prov for BD 1433 2693
Manager's commission 4085 72998
Net Profit 40852
113850 113850
 Balance sheet
lablites amt assest amt
capital 228800 plants&machinery 99000
(+)net profit 40800 (+)new mechniery 16500
(-)drawing 18200 256400 (-)depreciation 38500 77000
bills payable 5000 freehold property 66000
sundary creditor 59400 (-)depreciation 3300 62700
manger commission 4080 office furinture 5500
(-)depreciation 550 4950
loose tools 2200
(-)depreciation 440 1760
closing stock 72600
sundary debtor 29260
(-)bad debs 600
(-) pdd 1433 27170
loan to krisna 44000
(-)interest paid 3300 47300
cash at hand 2640
cash at bank 29200

325320 325320
Solution 1
Trading and P/L Account
Dr Cr
Particulars Amount Particulars Amount
opening stock 3480 sales 15450
purchase 5475 (-)sales ret 200 15250
(-)pur ret 125 5350 closing stock 3250

gross profit 9690

18500 18500
salaries 3300 gross profit 9690
(+)outstanding sal 300 3600 by commision 375
tax and 1200 (-) reviced in ad 125 250
(+) out 120
dep buil 375
dep fur 64
dep moter 1250
adv
pbdd 370
(-) bad 255
595
opreation 200 395
interst on b/o 118
(+)outstanding b/o 85 203
net profit 1551
9940 9940
 Balance Sheet
Dr Cr
Liabilities Amount Assets Amount
capital 12500 building 7500
(+)net profit 1551 14051 (-) dep 375 7125
sundary cred 2500 furnture 640
bank o/d 2850 (-)dep 64 575
(-) inter 85 2935 motor 6250
outstanding expance 420 (-)dep 1250 5000
commission 125 closing stock 3250
sundary debtor 3000
(-) bad debts 100
(-)pdd 370 3500
prepaid income 100
cash & hand 600

20031 20031