NATIONAL INSTITUTE OF FASHION

TECHNOLOGY, PATNA

SESSION-(2020 -22)

COSTING AND PROFITABILITY

ASSIGNMENT-2

Submitted to:
Prof. Kislay Kashyap

Submitted by:
Suruchi Kumari

In partial fulfilment of the Post-Graduate degree

In Fashion Management Studies (FMS)

1
 ACKNOWLEDGEMENT

First and foremost, I would like to express my deep and sincere gratitude to
my Professor Mr. Kislay Kashyap, for giving me the opportunity to do
research and providing invaluable guidance throughout this research. His
dynamism, vision, sincerity and motivation have deeply inspired me. He has
taught me the methodology to carry out the research and to present the
research works as clearly as possible. It was a great privilege and honor to
work and study under his guidance. I am extremely grateful for what he has
offered me. I would also like to thank him for his empathy, and great sense of
humor.

I would like to thank NIFT Patna, for providing me the opportunity to work in
such a respected organization. By this I did lots of research and came to know
about so many new things.

This assignment cannot be completed without the effort and cooperation from my
family and friends have made valuable suggestions on this assignment without
them it could not possible.

Finally, my thanks go to all the people who have supported me to complete the
research work directly or indirectly.

2
 QUESTION:

Prepare a P&L and balance sheet from the following trial balance.

Pt Dr Cr

Plant 2,40,000

Furniture 60,000

Bill’s receivable 80,000

Rent 40,000

Wages 84,000

Salaries 90,000

Printing Cost 3000

Commission paid 3600

Office Expenses 2800

Insurance 2600

Cash 16,000

Purchase 6,80,000

Opening Stock 1,40,000

Debtors 4,00,000

Capital 5,00,000

Bills Payable 44,000

Creditors 86,000

Sales 12,00,000

Interest 12,000

3
 PROFIT AND LOSS ACCOUNT

Dr Profit and Loss Account Cr.

Particulars ₹ Particulars ₹
To open stock 1,40,000 By sales 12,00,000
To purchases 6,80,000
To Wages 84,000
To gross profit 2,96000

12.00,000 12,00,000
To rent 40,000 By gross profit b/d 2,96,000
To salary 90,000 By interest 12,000
To printing expenses 3,000
To commission paid 3,600
To office expenses 2,800
To insurance 2,600
To net profit transferred to B/S 1,66,000
3,08,000 3,08,000

4
 BALANCE SHEET

Balance sheet
Liabilities ₹ Assets ₹
Capital 5,00,000 Plant 2,40,000
Bill payable 44,000 Machinery 60,000
Sundry creditor 86,000 Bill receivable 80,000
Add net profit 1,66,000 Cash 16,000
Sundry debtors 4,00,000

7,96,000 7,96,000