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Q.

From the following Trial Balance of M/s Nandana Traders as on 31st March, 2024, prepare :

(1) Trading and Profit & Loss Account for the year ended 31st March, 2024 and

(2) Balance Sheet as on that date.

Trial Balance as on 31st March, 2024

ParticularsDr (₹)Cr (₹)
Opening Stock15,000
Purchases50,000
Wages5,000
Carriage Inwards2,000
Salaries6,000
Rent3,000
Debtors20,000
Cash4,000
Furniture10,000
Plant and Machinery40,000
Capital80,000
Sales65,000
Creditors10,000
Total1,55,0001,55,000

Adjustments :

(1) Closing Stock valued at ₹ 12,000.

(2) Rent outstanding ₹ 1,000.

Kerala DhseKerala DHSE Plus One Commerce Board 2026Subjective· 6mImportance★★★★★
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Prepare Trading and Profit & Loss Account and the Balance Sheet of M/s Nandana Traders. Trading A/c gives Gross Profit ₹5,000 (both sides ₹77,000). The P&L A/c charges Salaries ₹6,000 and Rent ₹4,000 (₹3,000 + ₹1,000 outstanding) against the ₹5,000 gross profit, giving a Net Loss of ₹5,000. Capital falls to ₹75,000, and the Balance Sheet foots at ₹86,000 on both sides.

Adjustments applied: (1) Closing Stock ₹12,000 - shown on the credit of the Trading A/c and as an asset in the Balance Sheet. (2) Rent outstanding ₹1,000 - added to Rent in the P&L A/c and shown as a current liability in the Balance Sheet.

1. Trading and Profit & Loss Account of M/s Nandana Traders for the year ended 31st March, 2024

Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹)
To Opening Stock15,000By Sales65,000
To Purchases50,000By Closing Stock12,000
To Wages5,000
To Carriage Inwards2,000
To Gross Profit c/d5,000
Total77,000Total77,000
To Salaries6,000By Gross Profit b/d5,000
To Rent 3,000 + Outstanding 1,0004,000By Net Loss (transferred to Capital A/c)5,000
Total10,000Total10,000

Working: Gross Profit = (Sales 65,000 + Closing Stock 12,000) - (Opening Stock 15,000 + Purchases 50,000 + Wages 5,000 + Carriage Inwards 2,000) = 77,000 - 72,000 = ₹5,000. Net result = Gross Profit 5,000 - (Salaries 6,000 + Rent 4,000) = 5,000 - 10,000 = Net Loss ₹5,000.

2. Balance Sheet of M/s Nandana Traders as on 31st March, 2024

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