Skip to content
Illustrations · Illustration 9
Q.

From the following balances prepare trading and profit and loss account and balance sheet for the year ended March 31, 2026. The value of closing stock on March 31, 2026 was ₹25,400.

Account TitleAmount (₹)Account TitleAmount (₹)
Opening stock15,310Capital2,50,000
Purchases82,400Drawings48,000
Sales2,56,000Sundry debtors57,000
Returns (Dr.)4,000Sundry creditors12,000
Returns (Cr.)2,400Depreciation4,200
Factory rent18,000Charity500
Custom duty11,500Cash balance4,460
Coal, gas & power6,000Bank balance4,000
Wages and salary36,600Bank charges180
Discount (Dr.)7,500Establishment expenses3,600
Commission (Cr.)1,200Plant42,000
Bad debts5,850Leasehold building1,50,000
Bad debts recovered2,000Sales tax collected2,000
Apprenticeship premium4,800Goodwill20,000
Production expenses2,600Patents10,000
Administrative expenses5,000Trademark5,000
Carriage8,700Loan (Cr.)25,000
Interest on loan3,000
Assam AhsecTextbookSubjectiveImportance★★★★★est
35% · 14/40 Questions
🔒 Locked · start free trial →

You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.

Start your 14-day free trial to unlock the full solution →

Gross profit ₹98,690 → net profit ₹76,860 → capital ₹2,50,000 + net profit ₹76,860 − drawings ₹48,000 = ₹2,78,860; balance sheet totals ₹3,17,860.

Solution — Trading and Profit and Loss Account for the year ended March 31, 2026

ParticularsAmount (₹)ParticularsAmount (₹)
Opening stock15,310Sales 2,56,000 − Returns 4,0002,52,000
Purchases 82,400 − Returns 2,40080,000Closing stock25,400
Factory rent18,000
Custom duty11,500
Coal, gas & power6,000
Wages and salary36,600
Production expenses2,600
Carriage8,700
Gross profit c/d98,690
Total2,77,400Total2,77,400
Discount (Dr.)7,500Gross profit b/d98,690
Bad debts5,850Commission (Cr.)1,200
Administrative expenses5,000Bad debts recovered2,000
Depreciation4,200Apprenticeship premium4,800
Charity500
Bank charges180
Establishment expenses3,600
Interest on loan3,000
Net profit (transferred to capital account)76,860
Total1,06,690Total1,06,690

Solution — Balance Sheet as at March 31, 2026

LiabilitiesAmount (₹)AssetsAmount (₹)
Sales tax collected2,000Cash balance4,460
Sundry creditors12,000Bank balance4,000
Loan25,000Sundry debtors57,000

Unlock everything free for 14 days

  • Full step-by-step solutions
  • Concept-first explanations
  • Methods, shortcuts & mistakes
  • PYQ mapping + timed mock tests

Full access for 14 days. No credit card required.