Particulars Debit (Rs.)Credit (Rs.

)
Opening Stock 25000 TD
Capital 225000 BL
Debtors and Creditors 30000 17500 BA/BL
Purchases and Sales 200000 350000 TD/TC
Returns 7500 5000 TC/TD
Carriage 4000 TD
Wages 12500 TD
Commission 6500 PC
Machinery 40000 BA
Furniture 10000 BA
Bad Debts 4000 PD
Provision for Doubtful Debts 5000 Reduce from BA (Debtors)
Bills Receivable and Payable 15000 3500 BA/BL

Land and Buildings 200000 BA

Taxes and Insurance 8500 PD
Discount Allowed 6000 PD
Bank 25000 BA
Drawings 25000 Reduce from BL (Capital)
TOTAL 612500 612500
ADJUSTMENTS
Value of Closing Stock is Rs.20000 TC/BA
 In the Books of M/s ____________________,
Trading & Profit and Loss Account for the year ended _________________
PARTICULARS Amt (Rs.) Amt (Rs.) PARTICULARS
To Opening Stock 25000 By Sales
To Purchases 200000 Less: Returns
Less: Returns -5000 195000 By Closing Stock
To Carriage 4000
To Wages 12500
To Gross Profit c/d 126000
TOTAL 362500 TOTAL

To Discount Allowed 6000 By Gross Profit b/d

To Taxes and Insurance 8500 By Commission
To Bad Debts 4000
To Net Profit transferred to 114000
Capital
TOTAL 132500 TOTAL

In the Books of M/s ____________________,

Balance Sheet as on ________________
LIABILITIES Amt (Rs.) Amt (Rs.) ASSETS
Capital 225000 Land and Buildings
Less: Drawings -25000 Machinery
Add: Net Profit 114000 314000 Furniture
Creditors 17500 Debtors
Bills Payable 3500 Less: Provision for Doubtful Deb
Bills Receivable
Bank
Closing Stock
TOTAL 335000 TOTAL
__,
______________
Amt (Rs.) Amt (Rs.)
350000
-7500 342500
20000

362500

126000
6500

132500

__,

Amt (Rs.) Amt (Rs.)

200000
40000
10000
30000
-5000 25000
15000
25000
20000
335000
Trial Balance in the books of Mr. M. Kumar as on 31sr March 2013
Particulars Debit (Rs.) Credit (Rs.)
Capital 15000 BL
Purchases 20000 TD
Sales 30000 TC
Wages 1200 TD
Furniture 800 BA
Salaries 900 PD
Travelling Expenses 700 PD
Commission 300 PD
Cash in Hand 1000 BA
Cash at Bank 3400 BA
Buildings 16000 BA
Debtors and Creditors 4500 4000 BA/BL
Bills Payable and Receivable 600 800 BA/BL
Telephone 100 PD
Returns 500 200 Sales Returns/Purchase Returns
TOTAL 50000 50000
ADJUSTMENTS
1. Closing Stock valued at 7500. TC/BA
 In the Books of Mr. M. Kumar,
Trading & Profit and Loss Account for the year ended 31st December 2012
PARTICULARS Amt (Rs.) Amt (Rs.) PARTICULARS Amt (Rs.)
Purchases 20000 Sales 30000
Less: Purchase Returns -200 19800 Less: Sales Returns -500
Wages 1200 Closing Stock
Gross Profit c/d 16000
TOTAL 37000 TOTAL

Salaries 900 Gross Profit b/d

Travelling Expenses 700
Commission 300
Telephone 100
Net Profit transferred to Capital 14000
TOTAL 16000 TOTAL

rns/Purchase Returns
In the Books of Mr. M. Kumar,
Balance Sheet as on 31st December 2012
LIABILITIES Amt (Rs.) Amt (Rs.) ASSETS Amt (Rs.)
Capital 15000 Buildings
Add: Net Profit 14000 29000 Furniture
Creditors 4000 Debtors
Bills Payable 800 Bills Receivable
Closing Stock
Cash in Hand
Cash at Bank

TOTAL 33800 TOTAL

2
Amt (Rs.)

29500
7500

37000

16000

16000

Amt (Rs.)
16000
800
4500
600
7500
1000
3400

33800
Trial Balance In t
Particulars Debit (Rs.)Credit (Rs.) Trading and Profit & Loss
Particulars
Capital 86140 BL
Drawings 3400 BL - from Capital Opening Stock
Purchases and Sales 32400 88200 TD / TC Purchases
Returns 2300 2150 TC / TD Less: Returns
Carriage Inward 1500 TD Carriage Inward
Lighting and heating 800 TD Lighting and Heating
Water and Gas 3400 TD Water and Gas
Stock on 1st April 7300 TD Wages and Salaries
Office Rent 900 PD Add: Outstanding Wages
Wages and Salaries 2500 TD
Electricity 1300 PD Gross Profit c/d
Postage 200 PD TOTAL
Printing Charges 700 PD
Legal Charges 480 PD Office Rent
Interest Earned 390 PC Add: Outstanding Rent
Furniture 19100 BA Electricity
Machinery 60000 BA Postage
Building 35000 BA Printing Charges
Cash in Hand 5600 BA Less: Prepaid Printing Charges
TOTAL 176880 176880 Legal Charges
Adjustments: Depreciation on:
Closing Stock 5100 TC / BA >> Buildings
Outstanding Expenses: Wages 700, Rent 300 Wages:TD/BL, Rent:PD/BL >> Furniture
Prepaid Printing charges: 200 Reduce from PD/BA >> Machinery
Interest earned but not received: 100 Add in PC/BA
Depreciation: Buildings @ 2%, Machineries @ 5% and
Furniture@10% PD/Reduce from BA Net Profit trf. to Capital
TOTAL

In t
Balance S
LIABILITIES

Capital
Less: Drawings:
Add: Net Profit
Outstanding Wages
Outstanding Rent
TOTAL
 In the Books of Mr. David,
ading and Profit & Loss Account for the year ended 31st March 2012
Amount Amount Particulars Amount Amount
(Rs.) (Rs.) (Rs.) (Rs.)
7300 Sales 88200
32400 Less: Returns -2300 85900
-2150 30250 Closing Stock 5100
1500
800
3400
2500
700 3200

44550
91000 TOTAL 91000

900 Gross Profit b/d 44550

300 1200 Interest Earned 390
1300 Add: Interest Earned but 100 490
200
700
-200 500
480

700
1910
3000

35750
45040 TOTAL 45040

In the Books of Mr. David

Balance Sheet as on 31st March 2012
Amount Amount Amount Amount
ASSETS
(Rs.) (Rs.) (Rs.) (Rs.)
86140 Building 35000
-3400 Less: Depreciation -700 34300
35750 118490 Machinery 60000
700 Less: Depreciation -3000 57000
300 Furniture 19100
Less: Depreciation -1910 17190
Closing Stock 5100
Prepaid Printing Charges 200
 Interest Earned but not received 100
Cash in Hand 5600
119490 TOTAL 119490
Trial Balance Extract
Sundry Debtors (including Mr. Badri Das for
dishonoured bill of Rs.1000) 62000
Bad Debts 3620
Provision for Doubtful Debts 2500

ADJUSTMENTS
1. Write off half of Badri Das's dishonoured bill a. Reduce from BA Debtors / b. Add in PD - Bad Debts
2. Create a provision of 5% on Debtors. a. Add to PD - Provisions / b. Deduct from BA - Debtors / c. Reduce Existi

Solution:

Dr. Profit and Loss Account Cr.

Bad Debts 3620
Add: Badri Das's dishonoured Bill 500
Add: Provisions @ 5% of Debtors 3075
Less: Old Provisions (given in Trial Balance) -2500
TOTAL 4695

BALANCE SHEET
LIABILITIES Amount ASSETS
Debtors
Less: Badri Das's dishonoured Bill

Less: Provisions @ 5% of Debtors

TOTAL
BA - Debtors / c. Reduce Existing Provisions

Cr.

Amount
62000
-500
61500
3075
58425