1 From the following trial balance of a trader,make out a trading and profit and

PARTICULARS
Sales
Purchases
Printing Charges
Wages
Salaries
Opening Stock
Carriage Inwards
General Expenses
Trade marks
Rates and Taxes
Capital
Discount received
Loan
Buildings
Furniture
Machinery
Cash
Bank

ADJUSTMENTS:
1 The closing stock was valued at RS.320000
2 Outstanding Salaries RS.10000
3 Prepaid Rates&Taxes RS.500

SOLUTION:

Trading and profit and loss account for the year ending

DR
PARTICULARS
To opening stock

To purchases
To wages
To carriage inwards
To gross profit c/d
(Transferred to profit and loss accont)
To printing charges
To salaries
Add:Outstanding
To general expenses
To rates and taxes
Less:Prepaid
To Net Profit
(Transferred to capital capital account)

LIABILITIES
Outstanding salary
Loans
Capital
Add:Net Profit

2 Mr.Senthil book shows the following balances.Prepare his Trading and Profit
sheet as on that date.
PARTICULARS
Stock on 1.4.2004

Purchases
Sales
Carriage inwards
Salaries
Printing&Stationery
Drawings
Sundry Creditors
Sundry Debtors
Furniture
Capital
Postage&Telephone
Interest Paid
Machinery
Loan Account
Suspense Account

ADJUSTMENTS:
1 Closing Stock RS.120000
2 Provide 5% for bad&doubtful debts on debtors
3 Depreciate machinery&furniture by 5%
4 Allow interest on capital at 5%
5 Prepaid printing charges RS.2000
SOLUTION:

Trading and profit and loss account account of MR.Sen

DR
PARTICULARS
To opening stock
To purchases
To Carriage Inwards
To Gross Profit c/d
(Transferred to Profit&loss a/c)
To Salaries

To Printing&Stationery
Less:Prepaid
To Postage&Telephone
To Interest Paid
To Provision for bad&doubtful debts
To Depreciation:
Machinery
Furniture
To Interest on capital
To Net Profit
(Transferred to capital a/c)

LIABILITIES
Sundry Creditors
Loan account
Capital
Add:Net profit
Add:Interest on capital
Less:Drawings
Suspense Account

3 From the following particulars of MRS.Sulochana,prepare Trading and Profit

PARTICULARS
Capital
Cash

Buildings
Salary
Rent&Taxes
Opening stock
Machinery
Drawings
Purchases
Sales
Carriage inwards
Fuel,Gas
Sundry Debtors
Sundry Creditors
Bills Receivable
Dividend
Loan
Bad Debts
Advertisement
Provision for Bad&Doubtful Debts

ADJUSTMENTS:
1 Closing stock RS.140000
2 Write off RS.10000 as bad debts;Provide 5%for bad and doubtful debts.
3 Make provision for disount on debtors at 2%
4 Provision for discount on creditors at 2%
SOLUTION:

Trading and profit and loss account of MRS.Sulochana

DR
PARTICULARS
To opening stock
To purchases
To Carriage inwards
To Fuel,Gas
To Gross Profit c/d
(Transferred to Profit&Loss account)

To Salary
To Rent&Taxes
To Advertisement
To Provision for Bad&Doubtful debts A/c
Bad Debts
Add:Bad debts written off
Add:New Provision
Less:Old Provision
To Provision for Discount on Debtors
To Net Profit
(Transferred to Capital A/c)

LIABILITIES
Sundry Creditors
Less:Provision for discount on creditors
Loan
Capital
Add:Net Profit
Less:Drawings

4 Prepare Trading,Profit and Loss A/c and Balance Sheet as on 31.3.2005 from
PARTICULARS
Capital
Bank Overdraft
Sales
Furniture
Business Premises
Creditors
Opening Stock
Debtors
Rent
Purchases
Discount
Insurance
Wages
Salaries
Advertisement
Carriage on purchases
Provision for Bad&Doubtful Debts
Bad Debts
Income Tax

ADJUSTMENTS:
1 Closing stock on 31.3.2005 was RS.120000
2 Make a Provision of 5% on Sundry debtors for Bad and Doubtful Debts.
3 Rent Received in Advance RS.2000
4 Provide 10% on Depreciation on Furniture and Business Premises.
SOLUTION:
Trading and Profit and Loss Account of MR.Imran for

DR
PARTICULARS

To Opening stock
To Purchases
To Wages
To Carriage on Purchases
To Gross Profit c/d
(Transferred to Profit&Loss A/c)
To Insurance
To Salaries
To Advertisement
To Depreciation on:
Furniture
Business Premises
To Net Profit
(Transferred to Capital A/c)

LIABILITIES
Sundry Creditors
Bank Overdraft
Rent received in Advance
Capital
Add:Net Profit
Less:Income Tax

5 The following are the balances extracted from the books of MRS.Suguna as o
PARTICULARS
Drawings
Cash at Bank
Cash in Hand
Wages
Purchases
Sales
Stock (31.03.03)
Buildings
Sundry Debtors
Bills Receivable
Capital
Rent
Commission
Sundry Creditors
General Expenses
Furniture
Suspense Account

ADJUSTMENTS:
1 Closing stock RS.40000 valued as on 31.3.04
2 Interest on Capital at 6% to be provided
3 Interest on drawings at 5% to be provided
4 Depreciate buildings at the rate of 10%per annum
5 Write off Bad Debts RS.1000
6 Wages yet to be paid RS.500
SOLUTION:

Trading and Profit and Loss Account of MRS.Suguna f

DR
PARTICULARS

To Opening stock
To Purchases
To Wages
Add:Outstanding
To Gross Profit c/d
(Transferred to Profit&Loss A/c)
To Rent
To Commission
To General Expenses
To Interest on Capital
To Depreciation on Buildings
To Bad Debts
written off
To Net Profit
(Transferred to Capital A/c)

LIABILITIES
Sundry Creditors
Outstanding Wages
Capital
Add:Net Profit
Add:Interest on Capital
Less:Drawings
Less:Interest on Drawings

ut a trading and profit and loss account and balance sheet as on 31st march
DEBIT
RS
105000
2500
77500
12500
225000
8800
26250
5000
2500

200000
25000
50000
1000
30000

oss account for the year ending 31st march,2000

RS

RS

PARTICULARS
225000

By sales

105000
77500
8800
323700

By closing stock

740000
2500
12500
10000

By gross profit b/d

(Transferred from trading a
By discount received

22500
26250

2500
500
2000
271700
324950

BALANCE SHEET
RS

RS

ASSESTS
Cash
Bank
Closing stock
Prepaid rates&taxes
Building
Furniture
Machinery
Trade Marks

10000
175000
174800
271700

446500

631500

are his Trading and Profit and loss account for the year ended 31st March 2005 and balance
DEBIT
RS
150000

130000
2000
50000
8000
17000
180000
10000
7500
4000
41500

600000

oss account account of MR.Senthil for the period ending 31st march 2005

RS

RS

PARTICULARS
150000
140000
2000
138000
420000
50000

By Sales
By Closing Stock

By Gross Profit

8000
2000

(Transferred from trading a

6000
7500
4000
9000

2075
500

2575
12500
46425
138000

BALANCE SHEET
RS

ASSETS

RS
20000
25000

Sundry Debtors
Less:Provision for bad&dou
debts

250000
46425
296425
12500
308925
17000

Closing Stock
Prepaid Printing
Furniture
Less:Depreciation
291925
5000

Machinery
Less:Depreciation

341925

prepare Trading and Profit and Loss account and Balance sheet for the year ending 31st march,20
DEBIT
RS
40000

400000
110000
21000
120000
120000
40000
500000
5000
37000
250000
53000

2000
16000
1714000

d and doubtful debts.

oss account of MRS.Sulochana for the year ending 31st March,2004

RS

CR
PARTICULARS

RS
120000
500000
5000
37000
228000

By Sales
By Closing Stock

890000
110000
21000
16000

By Gross Profit b/d

(Transferred from Trading A
By Dividend
By Provision for discount o

2000
10000
12000
12000
24000
6000
18000
4560
88840
258400

BALANCE SHEET
RS

ASSETS

RS
120000
2400
117600
60000
750000
88840
838840
40000

Cash
Bills Receivable
Sundry debtors
Less:Bad Debts written off

Less:New Provision for Ba

Doubtful debts
798840

Less:New Provision for dis

on debtors
Closing Stock
Buildings
Machinery

976440

heet as on 31.3.2005 from the following Trial Balance of MR.Imran.

DEBIT
RS

30600
120000
132000
108000
660000
16000
24000
54000
13200
10800
800
4000
1173400

and Doubtful Debts.

iness Premises.

oss Account of MR.Imran for the year ending 31st March,2005

RS

RS

CR
PARTICULARS

132000
660000
24000
10800
196200
1023000
16000
54000
13200
3060
12000
15060
105140

By Sales
By Closing stock

By Gross Profit b/d

(Transferred from Trading A
By Rent
Less:Received in Advance

By Provision for Bad&Dou

Debts
Old Provision
Less:Bad Debts
New Provision
By Discount

203400

BALANCE SHEET
RS

ASSETS

RS
79800
25200
2000
150000
105140
255140
4000

Sundry Debtors
Less:New Provision for Ba
Doubtful debts
Closing Stock
Furniture
Less:Depreciation

251140
Business Premises
Less:Depreciation
358140

ooks of MRS.Suguna as on 31st March,2004.

DEBIT
RS
40000
17000
60000
10000
20000
60000
100000
44000
29000
4500
2500
8000
5000
5000
405000

oss Account of MRS.Suguna for the year ending 31st March,2004

RS

RS

CR
PARTICULARS

60000
20000

By Sales
By Closing Stock

10000
500
10500
109500
200000
4500
2500
8000
12000
10000

By Gross Profit b/d

(Transferred from Trading A
By Interest on Drawings

1000
73500
111500

BALANCE SHEET
RS

ASSETS

RS
45000
500
200000
73500
273500
12000
285500
40000
245500
2000

Cash in hand
Cash at Bank
Bills Receivable
Sundry Debtors
Less:Bad debts wrirren off
Closing Stock
Buildings
Less:Depreciation

243500

289000

Furniture
Suspense Account

ARTICULARS

march,2000
CREDIT
RS
420000

174800
1250
175000

RS

CR
RS
420000

y closing stock

320000

740000
323700

y gross profit b/d

Transferred from trading account)
y discount received

1250

324950

RS

RS
1000
30000
320000
500
200000
25000
50000
5000

losing stock
repaid rates&taxes

Machinery
rade Marks

631500

2005 and balance

CREDIT
RS

ARTICULARS

300000

20000
250000

25000
5000
600000

RS

RS

y Closing Stock

300000
120000

y Gross Profit

420000
138000

Transferred from trading a/c)

138000

RS

undry Debtors
ess:Provision for bad&doubtful

RS
180000
9000
171000
120000
2000

losing Stock
repaid Printing
10000
500

ess:Depreciation

9500

Machinery
ess:Depreciation

41500
2075
39425
341925

r ending 31st march,2004

CREDIT
RS
750000

ARTICULARS

y Closing Stock

750000

120000
28000
60000

6000
1714000

RS

RS
750000
140000

890000
228000

y Gross Profit b/d

Transferred from Trading A/c)
y Dividend
y Provision for discount on Creditors

ills Receivable
undry debtors
ess:Bad Debts written off

ess:New Provision for Bad&

oubtful debts

ess:New Provision for discount

losing Stock

Machinery

28000
2400

258400

RS

RS
40000
53000
250000
10000
240000
12000
228000
4560
223440
140000
400000
120000
976440

ARTICULARS

CREDIT
RS
150000
25200
903000

79800

6000
2400

7000

1173400

RS

RS

903000
120000

y Closing stock

1023000
196200

y Gross Profit b/d

Transferred from Trading A/c)
6000
2000

ess:Received in Advance

4000

y Provision for Bad&Doubtful

ld Provision
ess:Bad Debts
ew Provision
y Discount

7000
8000
5400

undry Debtors
ess:New Provision for Bad&
oubtful debts

6200

RS

RS
108000
5400
102600
120000

losing Stock

ess:Depreciation

usiness Premises
ess:Depreciation

800
2400
203400

30600
3060
27540
120000
12000
108000
358140

ARTICULARS

CREDIT
RS

160000

200000

45000

405000

RS

RS

160000
40000

y Closing Stock

200000
109500

y Gross Profit b/d

Transferred from Trading A/c)
y Interest on Drawings

ash in hand
ash at Bank
ills Receivable
undry Debtors
ess:Bad debts wrirren off

2000

111500

RS

RS
60000
17000
29000
44000
1000
43000
40000

losing Stock

ess:Depreciation

uspense Account

100000
10000
90000
5000
5000
289000