Question No 25 Chapter No 17

Question No 25 Chapter No 17

Trading and Profit & Loss Account and Balance Sheet

25.From the following trail balance taken from the books of R. Mehta on 31st March 2017 prepare Trading and Profit & Loss Account for the year and Balance Sheet as at that date:

Ledger AccountDr. Balance Cr. Balance
Capital account 87,940
Opening stock85,600 
Discount 350
Advertising4,700 
Goodwill9,500 
Commission 1,600
Bill Payable 1,200
Wages7,500 
Duty and Clearing charges1,200 
Factory rent 1,600 
Carriage inwards3,300 
Return Inwards, Outwards4,5001,900
Salaries, Interest15,000400
Plant & Machinery20,000 
Purchases & sale2,62,7003,60,000
Gas and water700 
Office rent 1,500 
Bill receivable2,000 
Cash at bank6,685 
Office furniture2,500 
S. Debaters & Creditor18,0008,450
Taxes300 
Printing and Stationery475 
Drawings12,500 
General expenses1,360 
Insurance420 
 4,62,0404,62,040

 

The Content covered in this article:

The solution of Question No 25 Chapter No 17:-

 

Trading A/c
Particular
AmountParticular
Amount
To Opening Stock A/c 85,600By Sale A/c3,60,000 
To Purchases A/c2,62,700 Less: retune4,5003,55,500
Less: Retune1,9002,60,800By Closing Stock 39,800
To Wages A/c 7,500   
To Factory rent A/c 1,200   
To Carriage inwards A/c 3,300   
To Gas and Water A/c 700   
To Gross Profit A/c 34,600   
  3,95,300  3,95,300

 

Profit/Loss A/c
Particular
AmountParticular
Amount
To Advertising A/c 4,700By Gross Profit A/c 34,600
To Salaries A/c 15,000By Discount received A/c 350
To Office Rent A/c 1,500By Commission A/c 1,800
To Taxes A/c 300By Interest A/c 400
To Printing & Stationery A/c 475   
To General Expenses A/c 1,360   
To Insurance A/c 420   
To Net profit A/c 13,395   
  37,150  37,150

 

Balance Sheet
Labilities
AmountAssets
Amount
Capital A/c87,940 Cash in hand 6,685
Add: Net Profit13,395 S. Debtors 18,000
Less: Drawing12,50088,835Closing Stock 39,800
S. Creditor 8,450Furniture 2,500
Bills Payable 1,200Bills Receivable 2,000
   Plant & machinery 20,000
   Goodwill 9,500
  56,200  56,200

 

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of all Chapters: –

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

Chapter No. 14 – Provisions and Reserves 

Chapter No. 15 – Bills of Exchange

Chapter No. 16 – Rectification of Errors 

Chapter No. 17 – Financial Statements – (Without Adjustments)

Chapter No. 18 – Financial Statements – (With Adjustments)

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