Page 179 - DMGT104_FINANCIAL_ACCOUNTING

Unit 8: Financial Statements

Illustration 7: From the following Trial balance of Mr. Gopal for the year ending 31.3.2011, Notes
prepare Trading and Profit & Loss account and Balance Sheet as on 31.3.2011.

Dr. Cr.
Particulars ( ) ( )
Opening stock 25,000 -
Capital 2,25,000
Debtors and creditors 30,000 17,500
Purchases and sales 2,00,000 3,50,000
Returns 7,500 5,000
Carriage 4,000 -
Wages 12,500 -
Commission 6,500
Machinery 40,000 -
Furniture 10,000 -
Bad debts 4,000 -
Provision for doubtful debts 5,000
B/R and B/P 15,000 3,500
Land and Buildings 2,00,000 -
Taxes and Insurance 8,500 -
Discount allowed 6,000 -
Bank 25,000 -
Drawings 25,000 -
6,12,500 6,12,500

Value of closing stock is 20,000
Solution:
Trading and Profit & Loss Account of Mr. Gopal
For the year ending on 31.3.2011
Particulars ( ) Particulars ( )
To opening stock 25,000 By sales 3,50,000
To purchases 2,00,000 By Returns 7,500 3,42,500
To Returns 5,000 1,95,000 By Closing stock 20,000
To carriage 4,000

To wages 12,500
To Gross Profit c/d 1,26,000
3,62,500 3,62,500
To taxes and Insurance 8,500 By Gross Profit b/d 1,26,000
To Discount allowed 6,000 By commission 6,500
To Net profit 1,19,000 By provision for D/D 5000
- Bad debts during the year 4000 1000
1,33,500 1,33,500

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