The following is the trial balance of Mr. Deepak as on March 31, 2026. You are required to prepare trading account, profit and loss account and a balance sheet as on date :
| Account title | Debit ₹ | Credit ₹ |
|---|---|---|
| Drawings | 36,000 | |
| Insurance | 3,000 | |
| General expenses | 29,000 | |
| Rent and taxes | 14,400 | |
| Lighting (factory) | 2,800 | |
| Travelling expenses | 7,400 | |
| Cash in hand | 12,600 | |
| Bills receivable | 5,000 | |
| Sundry debtors | 1,04,000 | |
| Furniture | 16,000 | |
| Plant and Machinery | 1,80,000 | |
| Opening stock | 40,000 | |
| Purchases | 1,60,000 | |
| Sales return | 6,000 | |
| Carriage inwards | 7,200 | |
| Carriage outwards | 1,600 | |
| Wages | 84,000 | |
| Salaries | 53,000 | |
| Capital | 2,50000 | |
| Bills payable | 3,600 | |
| Creditors | 50,000 | |
| Discount recived | 10,400 | |
| Purchases return | 8,000 | |
| Sales | 4,40,000 |
Closing stock ₹ 35,000.
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Start your 14-day free trial to unlock the full solution →Trading gives Gross profit ₹1,83,000; after net indirect expenses, Net profit ₹85,000; the Balance Sheet totals ₹3,52,600.
Concept & treatment. Opening stock, net purchases, factory lighting, carriage inwards and wages are direct (Trading) items. Carriage outwards is a selling expense; insurance, general expenses, rent & taxes, travelling and salaries are indirect (P&L) expenses; discount received is an income. Drawings are deducted from capital.
Trading and Profit and Loss Account for the year ended March 31, 2026
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Opening stock | 40,000 | By Sales 4,40,000 | |
| To Purchases 1,60,000 | Less: Sales return (6,000) | 4,34,000 | |
| Less: Purchases return (8,000) | 1,52,000 | By Closing stock | 35,000 |
| To Lighting (factory) | 2,800 | ||
| To Carriage inwards | 7,200 | ||
| To Wages | 84,000 | ||
| To Gross profit c/d | 1,83,000 | ||
| Total | 4,69,000 | Total | 4,69,000 |
| To Insurance | 3,000 | By Gross profit b/d | 1,83,000 |
| To General expenses | 29,000 | By Discount received | 10,400 |
| To Rent and taxes | 14,400 | ||
| To Travelling expenses | 7,400 | ||
| To Carriage outwards | 1,600 | ||
| To Salaries | 53,000 | ||
| To Net profit (to Capital) | 85,000 | ||
| Total | 1,93,400 | Total | 1,93,400 |
Balance Sheet as at March 31, 2026
| Liabilities | ₹ | Assets | ₹ |
|---|---|---|---|
| Bills payable | 3,600 | Cash in hand | 12,600 |
| Creditors | 50,000 | Bills receivable | 5,000 |
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