Prepare trading and profit and loss account and balance sheet from the following particulars as on March 31, 2026.
| Account Title | Debit ₹ | Credit ₹ |
|---|---|---|
| Purchases and Sales | 3,52,000 | 5,60,000 |
| Return inwards and Return outwards | 9,600 | 12,000 |
| Carriage inwards | 7,000 | |
| Carriage outwards | 3,360 | |
| Fuel and power | 24,800 | |
| Opening stock | 57,600 | |
| Bad debts | 9,950 | |
| Debtors and Creditors | 1,31,200 | 48,000 |
| Capital | 3,48,000 | |
| Investment | 32,000 | |
| Interest on investment | 3,200 | |
| Loan | 16,000 | |
| Repairs | 2,400 | |
| General expenses | 17,000 | |
| Wages and salaries | 28,800 | |
| Land and buildings | 2,88,000 | |
| Cash in hand | 32,000 | |
| Miscellaneous receipts | 160 | |
| Sales tax collected | 8,350 |
Closing stock ₹ 30,000.
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Start your 14-day free trial to unlock the full solution →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 stock | 57,600 | By Sales 5,60,000 | |
| To Purchases 3,52,000 | Less: Return inwards (9,600) | 5,50,400 | |
| Less: Return outwards (12,000) | 3,40,000 | By Closing stock | 30,000 |
| To Carriage inwards | 7,000 | ||
| To Fuel and power | 24,800 | ||
| To Wages and salaries | 28,800 | ||
| To Gross profit c/d | 1,22,200 | ||
| Total | 5,80,400 | Total | 5,80,400 |
| To Carriage outwards | 3,360 | By Gross profit b/d | 1,22,200 |
| To Bad debts | 9,950 | By Interest on investment | 3,200 |
| To Repairs | 2,400 | By Miscellaneous receipts | 160 |
| To General expenses | 17,000 | ||
| To Net profit (to Capital) | 92,850 | ||
| Total | 1,25,560 | Total | 1,25,560 |
Balance Sheet as at March 31, 2026
| Liabilities | ₹ | Assets | ₹ |
|---|---|---|---|
| Loan | 16,000 | Land and buildings | 2,88,000 |
| Creditors | 48,000 | Investment | 32,000 |
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