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Question No 27 Chapter No 18
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27. Following Trial Balance is extracted from the books of a merchant on 31st March, 2018:
| Debit Balances: | Debit Balances | ||
| Furniture and Fittings | 6,400 | Insurance | 12,500 |
| Motor Vehicles | 62,500 | General Charges | 7,820 |
| Building | 75,900 | Salaries | 33,000 |
| Bad Debts | 1,250 | Credit Balances: | |
| Sundry Debtors | 38,000 | Capital | 1,28,900 |
| Stock on 1st April, 2017 | 34,600 | Bills Payable | 2,000 |
| Purchases | 55,750 | Sundry Creditors | 25,000 |
| Sales Return | 2,000 | Sales | 1,54,500 |
| Advertising | 4,500 | Bank Overdraft | 28,500 |
| Interest | 1,180 | Purchases Return | 1,250 |
| Cash in Hand | 6,500 | Commission | 1,750 |
Stock in Hand on 31st March, 2018 was valued at 32,500.
From the above, prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date
The solution of Question No 27 Chapter No 18:-
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| Trading Account | |||||
| Particular | Amount | Particular | Amount | ||
| To Opening Stock | 34,600 | By Sales | 1,54,500 | ||
| To Purchases | 55,750 | Less: Sales Return | 2, 000 | 1,52,500 | |
| Less: Purchases Return | 1, 250 | 54,500 | By Closing Stock | 32,500 | |
| To Gross Profit | 95,900 | ||||
| 1,85,000 | 1,85,000 | ||||
| Profit and Loss Account | |||||
| Particular | Amount | Particular | Amount | ||
| To Taxes and Insurance | 12,500 | By Gross Profit | 95,900 | ||
| To General Charges | 7,820 | By Commission | 1,750 | ||
| To Salaries | 33,000 | ||||
| To Bad Debts | 1,250 | ||||
| To Advertising | 4,500 | ||||
| To Interest | 1,180 | ||||
| To Net Profit | 37,400 | ||||
| 97,650 | 97,650 | ||||
| Balance Sheet | |||||
| Particular | Amount | Particular | Amount | ||
| Capital | 1,28,900 | Building | 75,900 | ||
| Add: Net Profit | 37,400 | 1,66,300 | Furniture and Fittings | 6,400 | |
| Sundry Creditors | 25,000 | Motor Vehicles | 62,500 | ||
| Bank Overdraft | 28,500 | Closing Stock | 32,500 | ||
| Bills Payable | 2,000 | Sundry Debtor | 38,000 | ||
| Cash in Hand | 6,500 | ||||
| 2,21,800 | 2,21,800 | ||||
Final Accounts: Meaning, Definition and Explanation
Profit and Loss Account: Meaning, Format & Examples
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Balance Sheet: Meaning, Format & Examples
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Also, Check out the solved question of previous Chapters: –
- Chapter No. 1 – Introduction to Accounting
- Chapter No. 2 – Basic Accounting Terms
- Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
- Chapter No. 4 – Bases of Accounting
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book
- Chapter No. 11 – Special Purpose Books II – Other Books
- Chapter No. 12 – Bank Reconciliation Statement
- Chapter No. 13 – Trial Balance
- Chapter No. 14 – Depreciation
- Chapter No. 15 – Provisions and Reserves
- Chapter No. 16 – Accounting for Bills of Exchange
- Chapter No. 17 – Rectification of Errors
- Chapter No. 18 – Financial Statements of Sole Proprietorship
- Chapter No. 19 – Adjustments in preparation of Financial Statements
- Chapter No. 20 – Accounts from incomplete Records – Single Entry System
- Chapter No. 21 – Computers in Accounting
- Chapter No. 22 – Accounting Software – Tally
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book
Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication
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T.S. Grewal’s Double Entry Book Keeping
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