Trading and Profit and Loss Account

For the year ending 31st March 2004

Dr. Cr
Particulars Rs Rs Particulars Rs
To opening stock 1,50,000 By Cash Sales 61,000
To purchases 3,69,000 By Credit Sales 7,80,000
To wages 1,80,000
To salaries 1,50,000 By closing stock 1,40,000
To Sunday offi ce expenses 1,08,750
To Gross Profit c/d 23,250

9,81,000 9,81,000

To Discount allowed 7,000 By Gross Profit b/d 23,250

To Bad debts w/o 8,000 By Discount received 4,000
To Depreciation By misc income 2,000
Furniture 40,000@5% 2000
By net loss c/d 26,750
Machinery (250,000+95,000)@10% 34,500
- 36,500

To interest on loan from Dass 4,500

56,000 56,000

Balance Sheet as at 31st Mar 2004

LIABILITIES AMOUNT ASSETS AMOUNT

Rs Rs
OWNER’S CAPITAL FIXED ASSETS
Op balance 5,16,000 Machinery 3,45,000
Less drawings 40,000 Less dep 34,500
Less loss 26,750 4,49,250 Net block 3,10,500
Furniture 40,000
UNSECURED LOAN Less dep 2,000
Dass @9% 1,00,000 Net block 38000 3,48,500
INVESTMENTS
CURRENT LIABILITIES & CURRENT ASSETS,LOANS &
PROVISIONS ADVANCES
Sundry Creditors 1,25,000 Stock 1,40,000
Wages outstanding 20000 Sundry Debtors 1,93,000
Interest on loan 4500 Bank 16000
Unexpired insurance 1250

6,98,750 6,98,750

WORKING NOTES:
1) Opening balance of Owner’s capital = stock + debtors + bank + machinery + furniture
–sundry creditors
=1,50,000 +1,81,000+5,000+2,50,000+40,000-1,10,000 =5,16,000