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Numerical Questions · Q10
Q.

Prepare trading and profit and loss account and balance sheet from the following particulars as on March 31, 2026.

Account TitleDebit ₹Credit ₹
Purchases and Sales3,52,0005,60,000
Return inwards and Return outwards9,60012,000
Carriage inwards7,000
Carriage outwards3,360
Fuel and power24,800
Opening stock57,600
Bad debts9,950
Debtors and Creditors1,31,20048,000
Capital3,48,000
Investment32,000
Interest on investment3,200
Loan16,000
Repairs2,400
General expenses17,000
Wages and salaries28,800
Land and buildings2,88,000
Cash in hand32,000
Miscellaneous receipts160
Sales tax collected8,350

Closing stock ₹ 30,000.

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Trading gives Gross profit ₹1,22,200; after net indirect items, Net profit ₹92,850; the Balance Sheet totals ₹5,13,200.

Concept & treatment. 'Wages and salaries' (wages named first) is a direct expense of the Trading Account. Fuel and power and carriage inwards are direct too. Carriage outwards, bad debts, repairs and general expenses are indirect (P&L) expenses; interest on investment and miscellaneous receipts are incomes. Sales tax collected is a liability. No drawings are given.

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

Particulars₹Particulars₹
To Opening stock57,600By Sales 5,60,000
To Purchases 3,52,000  Less: Return inwards (9,600)5,50,400
  Less: Return outwards (12,000)3,40,000By Closing stock30,000
To Carriage inwards7,000
To Fuel and power24,800
To Wages and salaries28,800
To Gross profit c/d1,22,200
Total5,80,400Total5,80,400
To Carriage outwards3,360By Gross profit b/d1,22,200
To Bad debts9,950By Interest on investment3,200
To Repairs2,400By Miscellaneous receipts160
To General expenses17,000
To Net profit (to Capital)92,850
Total1,25,560Total1,25,560

Balance Sheet as at March 31, 2026

Liabilities₹Assets₹
Loan16,000Land and buildings2,88,000
Creditors48,000Investment32,000

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