Page 176 - DMGT104_FINANCIAL_ACCOUNTING

Particulars ( ) Particulars ( )
To Opening Stock
Materials 1,20,000 By Sale of Scrap 6,000
Financial Accounting
Work-in-Progress 90,000 By Closing Stock:
To Purchase less Returns Materials 3,63,000
(39,58,500 - 25,500) 39,33,000 Work-in-Progress 3,00,000
Notes To Productive Wages 6,00,000 By Cost of Production
To Factory Exps. 5,52,000 (Transferred to Trading A/c) 50,76,000
To Purchase Exps. 1,80,000
To Import Duty 60,000
To Carriage Inwards 30,000
To Depreciation on Plant 1,50,000
To Repairs to Machines 30,000
57,45,000 57,45,000
3

Trading and Profit & Loss Account
(for the year ending 31st March, 2010)
Particulars Amount Particulars Amount
( ) ( )
To Opening Stock of Finished Goods 1,23,000 By Sales less Returns
To Cost of Production (58,50,000 – 21,000) 58,29,000
(Transfer from Manufacturing A/c) 50,76,000 By Closing Stock 4,11,000
To Gross Profit c/d 10,41,000
62,40,000 62,40,000
To General Office Exps. 90,000 By Gross Profit b/d 10,41,000
To Salaries 1,80,000
To Depreciation on Furniture 12,000
To Discount Allowed 9,000
To Carriage Outwards 25,500
To Interest on Bank Loan 1,80,000
To Export Duty 90,000
To Selling Expenses 2,10,000
To Distribution Expenses 30,000
To Net Profit (Transferred to Capital
A/c) 2,14,500
10,41,000 10,41,000

Self Assessment

Fill in the blanks:
7. In the …………………… all those accounts are disclosed which affect the profit or loss of
the business.
8. …………………… is the comparison of sales and purchase.
9. …………………… is prepared to know the results of manufacturing unit i.e. cost of
production.

8.6 Balance Sheet

After the determination of the net profit of the business through the Trading and Profit & Loss
Account, the businessman wants to know the financial position of the business. For this purpose

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