Question
From the following Trial Balance of Gupta & Sons, prepare Trading and Profit and Loss Account for the year ended December 31, 2018 and a Balance Sheet as on that date.
Trial Balance
| Name of the Account | Debit Balances | Credit Balances |
| Rs. | Rs. | |
| Capital | 5,00,000 | |
| Sales | 10,00,000 | |
| Sales Returns | 25,000 | |
| Purchases | 5,00,000 | |
| Purchases Returns | 15,000 | |
| Inventory as on 1.1.18 | 60,000 | |
| Land & Buildings | 4,00,000 | |
| Plant & Machinery | 3,00,000 | |
| Furniture | 1,00,000 | |
| Wages | 50,000 | 7,000 |
| Carriage Inwards | 10,000 | |
| Provision for Bad Debts | ||
| Carriage Outwards | 5,000 | |
| Cartage | 5,000 | |
| Salaries | 40,000 | |
| Loan | 2,60,000 | |
| Debtors | 1,50,000 | |
| Creditors | 70,000 | |
| Rent | 8,000 | |
| Bills Receivable | 40,000 | |
| Acceptances | 10,000 | |
| General Expenses | 20,000 | |
| Rent & Rates | 10,000 | |
| Investments | 50,000 | |
| Cash in hand | 50,000 | |
| Bank Overdraft | 10,000 | |
| Discount | 4,500 | |
| Bad Debts | 5,000 | |
| Interest on Investments | 5,000 | |
| Interest on Bank Overdraft | 500 | |
| Goodwil | 60,000 | |
| Total | 18,85,000 | 18,85,000 |
Additional Information
1) The value of inventory on December 31, 2018 was Rs. 1,00,000.
2) Depreciation is to be provided on: Land & Building @ 5% p.a. Furniture @ 10% p.a. Plant & Machinery Rs. 50,000.
3) Provision for Bad Debts is to be maintained @ 5% on debtors.
4) Wages are outstanding to the extent of Rs. 4,000 and Salaries to the extent of Rs. 3,000.
5) Rent and Rates are prepaid to the extent of 1/4th of the amount paid.
6) Interest on Investment outstanding is Rs. 1,000.
7) Rent to the extent of Rs. 2,000 has been received in advance.
Answer :
Word Count : 645
Trading Account for the year ended 31 December 2018 | Dr. | Particulars | Rs. | Cr. | Particulars | Rs. | | --------------------------------------------- | ------------------: | ------------------: | --------- | ----------: | --: | | To Opening Stock | 60,000 | By Sales | 10,00,000 | | | | To Purchases | 5,00,000 | Less: Sales Returns | 25,000 | | | | Less: Purchases Returns | (15,000) | Net Sales | 9,75,000 | | | | Net Purchases | 4,85,000 | | | | | | To Carriage Inwards | 10,000 | | | | | | To Cartage | 5,000 | | | | | | To Wages (50,000 − 7,000 + outstanding 4,000) | 47,000 | | | | | | Total 6,07,000 | By Closing Stock | 1,00,000 | | | | | | By Gross Profit c/d | 4,68,000 | | | | | | Total 6,07,000 | Total 6,07,000 | | | | Profit ___ __________ ________ ___ ________ __________ _________ ________ ________ _______ __________ _________.
____ _____ _________ ________ ___ _________ _____ _________ _________ ____.
________ ____ ________ ______ _____ ____ _________ ___ ______ ________.
_________ __________ _________ ______ ________ _______.
_____ ____ _______ _______ _______ ____ ___ _____ __________ __________.
___ ____ _______ ________ ____ ____ ____.
_________ ___ _______ ____ ____ _________ ______ _________ ______ _______ ___ __________.
___ ___ ______ _________ ________ _________ ________.
_________ ______ _____ ___ _________.
___ ___ _____ ______ ________ ________ ______ __________ _________.
_________ ____ _______ _________ _____ ___ ___ __________ ______ __________ ____ ______.
_____ _________ ___ ______ ___ ________ ________ _________ ______ __________ ___.
________ _________ _______ ___ _____ _______ _______.
________ _________ ________ ______ _______ _____.
_______ ____ ________ _______ ________ ________ ________ _________ ________ _______ _______ _______.
_________ _______ ____ _______ _____ ___ __________.
_________ _____ ________ ____ ___ __________ _____ __________ __________ ________.
__________ ___ __________ _______ _______ ________.
_______ _______ _______ ______ __________ ____ ___ _____.
_____ ___ __________ _______ ___ ___ __________.
___ ______ ____ _________ _____ ______ _________ __________.
___ ______ _______ ____ ____ _________ ____.
__________ ___ ___ ___ _____ ____ __________ ______ _______ ____.
_____ ____ _____ __________ ______ _______ ____ __________.
_____ ________ _________ ___ ________ _____ ______ __________ ____ _________ __________.
___ ________ __________ _____ ___ _____ ___ ______.
______ ________ _____ ___ ____.
_______ ___ ____ ____ ___ ________ ________ ___ _______ _______.
_____ __________ ______ ____ ___ ______ ______.
_________ _____ _______ ______ ____ _________ _____ _______ _________.
______ ________ _____ ________ _______ __________.
____ ____ ________ _________ _________ _______ ______ ____ ____.
______ ______ ____ _____ ______ _________ _____ ____ ____.
________ ___ ____ __________ __________.
________ _____ _________ ______ _______ __________ ________ ___ ______.
_______ _______ _____ ___ __________ ________ _______ _________ _____ ___.
___ ______ __________ _____ ___ ______ _________ ________ _________ _____ _______ __________.
___ _________ __________ _____ _________ _________ ____.
____ ________ _______ __________ _______ ________ _______ ___.
___ ________ _____ ________ _____ ________.
______ _________ ___ ______ _______ __________ ___.
______ ___ _____ ___ _______ __________.
____ _________ ___ ______ _____ ______.
_________ _____ ___ _________ ___ _______ _________ ____ ______ _________ _____.
______ ____ ____ ______ _____ __________.
______ __________ _________ _______ ___ __________ _________ _________.
_____ ______ ____ ___ _____ _______ ____ ______ ________ ____ ____.
___ ________ _____ __________ ___ _________ ___.
______ _______ ___ _________ ____ __________ ______ ______ ______ _______ _________.
_____ ____ _________ _________ ________ _______ _________ _________ __________ ______.
__________ _____ ______ _______ _______ _________ _________ ___ ____ ____ ______.
______ _______ ___ _____ _____ __________ ________ ______ ________ __________ _________.
____ ____ __________ _________ __________ ___ _____ _____ _______ ___.
___ ________ ______ _______ ______ ________ ______ _________ ________ ______ ____.
______ _________ _____ _______ ____ _______ _______ _______ ____ ____.
_______ _______ _____ __________ __________ ______ __________ ___ ____ ________.
Get Full Answer on WhatsApp
Trading Account for the year ended 31 December 2018 | Dr. | Particulars | Rs. | Cr. | Particulars | Rs. | | --------------------------------------------- | ------------------: | ------------------: | --------- | ----------: | --: | | To Opening Stock | 60,000 | By Sales | 10,00,000 | | | | To Purchases | 5,00,000 | Less: Sales Returns | 25,000 | | | | Less: Purchases Returns | (15,000) | Net Sales | 9,75,000 | | | | Net Purchases | 4,85,000 | | | | | | To Carriage Inwards | 10,000 | | | | | | To Cartage | 5,000 | | | | | | To Wages (50,000 − 7,000 + outstanding 4,000) | 47,000 | | | | | | Total 6,07,000 | By Closing Stock | 1,00,000 | | | | | | By Gross Profit c/d | 4,68,000 | | | | | | Total 6,07,000 | Total 6,07,000 | | | | Profit ___ __________ ________ ___ ________ __________ _________ ________ ________ _______ __________ _________.
____ _____ _________ ________ ___ _________ _____ _________ _________ ____.
________ ____ ________ ______ _____ ____ _________ ___ ______ ________.
_________ __________ _________ ______ ________ _______.
_____ ____ _______ _______ _______ ____ ___ _____ __________ __________.
___ ____ _______ ________ ____ ____ ____.
_________ ___ _______ ____ ____ _________ ______ _________ ______ _______ ___ __________.
___ ___ ______ _________ ________ _________ ________.
_________ ______ _____ ___ _________.
___ ___ _____ ______ ________ ________ ______ __________ _________.
_________ ____ _______ _________ _____ ___ ___ __________ ______ __________ ____ ______.
_____ _________ ___ ______ ___ ________ ________ _________ ______ __________ ___.
________ _________ _______ ___ _____ _______ _______.
________ _________ ________ ______ _______ _____.
_______ ____ ________ _______ ________ ________ ________ _________ ________ _______ _______ _______.
_________ _______ ____ _______ _____ ___ __________.
_________ _____ ________ ____ ___ __________ _____ __________ __________ ________.
__________ ___ __________ _______ _______ ________.
_______ _______ _______ ______ __________ ____ ___ _____.
_____ ___ __________ _______ ___ ___ __________.
___ ______ ____ _________ _____ ______ _________ __________.
___ ______ _______ ____ ____ _________ ____.
__________ ___ ___ ___ _____ ____ __________ ______ _______ ____.
_____ ____ _____ __________ ______ _______ ____ __________.
_____ ________ _________ ___ ________ _____ ______ __________ ____ _________ __________.
___ ________ __________ _____ ___ _____ ___ ______.
______ ________ _____ ___ ____.
_______ ___ ____ ____ ___ ________ ________ ___ _______ _______.
_____ __________ ______ ____ ___ ______ ______.
_________ _____ _______ ______ ____ _________ _____ _______ _________.
______ ________ _____ ________ _______ __________.
____ ____ ________ _________ _________ _______ ______ ____ ____.
______ ______ ____ _____ ______ _________ _____ ____ ____.
________ ___ ____ __________ __________.
________ _____ _________ ______ _______ __________ ________ ___ ______.
_______ _______ _____ ___ __________ ________ _______ _________ _____ ___.
___ ______ __________ _____ ___ ______ _________ ________ _________ _____ _______ __________.
___ _________ __________ _____ _________ _________ ____.
____ ________ _______ __________ _______ ________ _______ ___.
___ ________ _____ ________ _____ ________.
______ _________ ___ ______ _______ __________ ___.
______ ___ _____ ___ _______ __________.
____ _________ ___ ______ _____ ______.
_________ _____ ___ _________ ___ _______ _________ ____ ______ _________ _____.
______ ____ ____ ______ _____ __________.
______ __________ _________ _______ ___ __________ _________ _________.
_____ ______ ____ ___ _____ _______ ____ ______ ________ ____ ____.
___ ________ _____ __________ ___ _________ ___.
______ _______ ___ _________ ____ __________ ______ ______ ______ _______ _________.
_____ ____ _________ _________ ________ _______ _________ _________ __________ ______.
__________ _____ ______ _______ _______ _________ _________ ___ ____ ____ ______.
______ _______ ___ _____ _____ __________ ________ ______ ________ __________ _________.
____ ____ __________ _________ __________ ___ _____ _____ _______ ___.
___ ________ ______ _______ ______ ________ ______ _________ ________ ______ ____.
______ _________ _____ _______ ____ _______ _______ _______ ____ ____.
_______ _______ _____ __________ __________ ______ __________ ___ ____ ________.
Get Full Answer on WhatsApp
IGNOU NEWS
Assignment Submission Last Date Extended Till 30 June 2026 Click Here★★★IGNOU June 2026 TEE Date Sheet Released Click Here★★★