Books of Rishi Trading Co.

TRADING AND PROFIT AND LOSS ACCOUNT

For the year ended 31st March, 2013

DR. CR.

PARTICULARS AMOUNT PARTICULARS AMOUNT

To opening stock 23000 By sales 475775
To purchases 309800 Less : Returns 6775 469000
Less: Returns 9850 299950 By closing stock ___________ 9000
____________
To wages and salaries 12000
To carriage 2500
To gross profit transferred to profit and loss 140550
account 478000 47800
TO bad debts 3000 By gross profit b/d 140550
To interest 3500 By discount received 2625
To travelling expenses 700
To trade expenses 5000
To discount allowed 1250
To mobile bills (official) 6000
To postage 1200
To salaries and wages 51000
To net profit transferred to capital account 71525
___________
1431175 1431175

BALANCE SHEET
As at 31st March, 2013
LIABILITIES AMOUNT ASSETS AMOUNT
Capital 1025000 Land and building 860000
Add : Net profit 71525 Machinery 102000
___________ 1096525 Investments 70000
Bills payable 6750 Stock 9000
Sundry creditors 80000 Sundry debtors 40000
Bills receivable 2275
Bank 100000

1183275 1183275
 Books of Rani and sons
TRADING AND PROFIT AND LOSS ACCOUNT
For the year ended 31st March, 2013
DR. CR.

PARTICULARS AMOUNT PARTICULARS AMOUNT

To purchases less returns 15400 By sales less returns 27500
To carriage inward 1500
To factory heating and lighting 950
To work expenses 2000
To manufacturing expenses 850
To gross profit c/d 6800
27500 27500
To distribution expenses 700 By gross profit b/d 6800
To discount allowed 650 By discount received 1750
To honorarium 1350 By interest received 2000
To incidental trade expenses 2800 By discount 1500
To postage 3000
To net profit transferred to capital a/c 3550

12050 12050

BALANCE SHEET
As at 31st March, 2013

LIABILITIES AMOUN ASSESTS AMOUN

T T
Suppliers a/c 7700 Cash in hand 7000
Bank a/c 19000 Costumers a/c 22000
Loan from bank 39500 Closing stock 5000
Capital 50000 Computers 47500
Add : Net profit 3550 Motor vehicles 10500
_____________ Machinery 11750
53550
Less : life insurance premium 12000
__________
41550
Less : income tax 4000 37550
__________
103750 103750