Preparation of statements of profits and losses

1. you are require to prepare profit and loss account.

Particulars Amount
Revenue From Operation (Net) 300000
Employee Benefits Expenses 15000
Finance Costs 8000
Cost Of Material Consumed 200000
Other Incomes 4000
Other Expenses 12000
Tax Expense 30%
 Statement of profit and loss a/c
Particular note Amount

I. Revenue from operations(net) 300000

2. Other income 4000

3. Total revenue (1+2) 304000

4. Expenses
a) cost of material consumed 200000
b) employee benefit expenses 15000
c) finance cost 8000
d) other expenses 12000
Total expenses 235000
( a+b+c+d)
5. Net profit before tax (3 – 4 ) 69000
6. ( - ) provision for tax
(69000* 30%) 20700

net profit after tax ( 5 – 6) 48300

2. You are required to prepare statement of profit and loss of johns traders ltd. For the year ended
31st march 2018. from the following trail balance items.

Opening stock 85000

Furniture and fixtures 100000
Discount allowed 7000
Advertisement 8000
Bad debts 4000
Commission paid 6000
Purchases 350000
Interest on loan 12000
Wages 45000
Stores 7000
Freehold land 200000
Tools and equipment 19000
Insurance of goods 4000
Trade expenses 4500
Freight 6500
Debentures interest 4000
Sales 700000
Closing stock as on 31 march 2018 rs.63000
st

Provide depreciation on furniture and fixture @5%, freehold land @2%, tools and equipments are
valued at rs.15000.
 Johns traders
statement of profit and loss a/c for the year ended 31 st march
Particulars Note Amount
1. Revenue from operations (sales) 700000
2. Other income -
3. Total revenue 700000
4. Expenses
a) cost of material consumed(purchase) 350000
b) change in inventory of finished goods
(opening stock – closing stock)
( 85000- 63000) 22000
c) employee benefit (wages) 45000
d) other operating expenses 1 39000
e) selling and distribution expenses 8000
(advertisement)
f) finance cost 2 16000
g) depreciation and amortization
expenses 3 13000
Total expenses 493000
5. Net profit ( 3 – 4) for the year 207000
 Notes of accounts (1)
Particulars Amount
1. Other expenses
Discount allowed 7000
Bad debt 4000
Commission 6000
Stores 7000
Insurance 4000
Trade expenses 4500
Freight 6500
Total 39000

Notes of accounts (2)

Particulars Amount
Interest on loan 12000
Debenture interest 4000
Total 16000
 Note of accounts (3)
Particulars Amount
Depreciation & Amortization Expenses :
5% on furniture and fixture (10000*5%) 5000
2% on freehold land ( 200000*2%) 4000
Tools and equipment (19000-15000) 4000
Total 13000