Problem:

From the following Trial Balance of Mr D, prepare trading, profit & loss A/C and balance sheet as on 31st
March 2020 after considering the following adjustments

Trial Balance

Particulars Dr Rs Cr Rs.
6+A Machinery 90,000
6+A Building 40,000
1 Opening Stock 20,200
1 Purchases 1,10,800
1+A Wages 17,000
3 Carriage Outward 3000
6 Sundry Debtors 35,000
3 General Expenses 9100
3 Rent 1700
3 Bad Debts 650
3 Income Tax 300
3 Legal Charges 400
6 Loan to Mahajan 17,000
5 Drawings 4300
6 Cash In-Hand 1550
6 Cash at Bank 9750
5 Capital 1,16,350
5 Sundry Creditors 45,000
5 Bills Payable 4000
1 Return Outwards 1500
4 Interest and Commission 900
2 Sales 1,95,500
2 Return Inwards 2500
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Total 3,63,250 3,63,250
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Additional Information:

1. Closing Stock Rs 20,900 (No. 2 and 6)

2. Depreciation on machinery at 10% and on building at 5% (No. 3 and 6)
3. Outstanding wages Rs 3000 (No. 1 and 5)
 Trading A/C
For year ended 2020

DR CR
Particular Rs Particular Rs
To Opening balance By Sales 1,95,500
20,200 Less Return 2500 1,93,000
To Purchase 1,10,800
By Closing Stock 20,900
Less Return 1500 1,09,300
To Wages 17,000
Add Outstanding 3000 20,000

To Gross Profit (C/D) 64,400

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2,13,900 2,13,900
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Profit and Loss A/C

For the year ended 2020

DR CR
Particular Rs Particular Rs
To Salaries - By Gross Profit (B/D) 64,400
To Carriage Outward 3000 By Interest and Commission 900
To General Expenses 9100
To Rent 1700
To Bad Debts 650
To Income Tax 300
To Legal Charges 400
To Depreciation:
Machinery 9000
Building 2000 11,000

To Net Profit (Transfer to B/S) 39,150

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65,300 65,300
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Balance Sheet
As on 31st March 2020

Liabilities Rs Asset Rs
Capital 1,16,350 Machinery 90,000
Add Net Profit 39,150 Less Depreciation 9000
Less Drawings 4300 1,51,200 81,000
Sundry Creditors 45,000 Building 40,000
Less Depreciation 2000 38,000
Bills Payable 4000 Sundry Debtors 35,000
Outstanding wages 3000 Cash In-Hand 1550
Cash at Bank 9750
Loan to Mahajan 17,000
Closing Stock 20,900
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2,03,200 2,03,200
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 From the following particulars of M/s S Ltd. prepare Trading A/C, Profit & Loss A/C and Balance Sheet as on 31st
March 2019

Trial Balance

Particulars Dr Rs Cr Rs.
6 Sundry Debtors 52,000
6 Cash In-hand 2400
5 Creditors 22,000
6+A Furniture 3500
6+A Motor Car 22,000
1 Purchases 1,45,000
2 Sales 2,92,000
2 Sales Return 2600
3 Salaries 8420
1 Opening Stock 11,400
3 Motor Car Expenses 6100
3 Rent Rate Taxes 3600
3 Insurance Premium Paid 2400
6 Cash at Bank 6200
6+A Machinery 24,000
1 Wages 23,600
3 General Expenses 2680
1 Carriage Inwards 2040
3 Carriage Outwards 1630
1 Fuel and Power 6430
5 Drawings 8000
5 Capital 20,000
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3,34,000 3,34,000
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Additional Information

1. Closing Stock amounted to Rs. 35,000 (No. 2 and 6)

2. Depreciation of Furniture and Machinery by 10% and motor car by 20% (No. 3 and 6)
3. Outstanding wages Rs. 6400 (No. 1 and 5)
4. Prepaid Insurance Rs. 400 (No. 3 and 6)
 Trading A/C
For year ended 2019

DR CR
Particular Rs Particular Rs
To Opening balance By Sales 2,92,000
11,400 Less Return 2600 2,89,400
To Purchase 1,45,000 By Closing Stock 35,000
To Wages 23,600
Add Outstanding 6400 30,000
To Carriage Inwards 2040
To Fuel and Power 6430

To Gross Profit (C/D) 1,29,530

-------------------------
-

3,24,400 --------------------------
-------------------------
- 3,24,400
------------------------- --------------------------
- --------------------------

Profit and Loss A/C

For the year ended 2019

DR CR
Particular Rs Particular Rs
To Salaries 8420 By Gross Profit (B/D) 1,29,530
To Carriage Outward 1630
To General Expenses 2680
To Rent Rate Taxes 3600
To Motor Car Expenses 6100
To Insurance Premium Paid 2400
Less Prepaid Insurance 400 2000
To Prepaid
To Depreciation:
Machinery 2400
Furniture 350
Motor Car 4400 7150

To Net Profit (Transfer to B/S) 97,950

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1,29,530 1,29,530
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Balance Sheet
As on 31st March 2019

Liabilities Rs Asset Rs
Capital 20,000 Machinery 24,000
Add Net Profit 97,950 Less Depreciation 2400
Less Drawings 8000 1,09,950 21,600
Creditors 22,000 Furniture 3500
Less Depreciation 350 3150
Motor Car 22,000
Less Depreciation 4400 17,600
Outstanding wages 6400 Sundry Debtors 52,000
Cash In-Hand 2400
Cash at Bank 6200
Prepaid Insurance 400
Closing Stock 35,000
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138350 138350
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