Question No 27 Chapter No 18 - T.S. Grewal 11 Class

Question No 27 Chapter No 18

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:-

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

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Profit and Loss Account: Meaning, Format & Examples

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