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Numerical Questions · Q11
Q.

From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2026.

Account TitleDebit ₹Credit ₹
Stock as on April 01, 201616,000
Purchases and Sales67,6001,12,000
Returns inwards and outwards4,6003,200
Carriage inwards1,400
General expenses2,400
Bad debts600
Discount received1,400
Bank over draft10,000
Interest on bank overdraft600
Commission received1,800
Insurance and taxes4,000
Scooter expenses200
Salaries8,800
Cash in hand4,000
Scooter8,000
Furniture5,200
Building65,000
Debtors and Creditors6,00016,000
Capital50,000

Closing stock ₹ 15,000.

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Prepare the Trading A/c (direct trading items) to get Gross Profit ₹40,600, carry it to the Profit & Loss A/c for Net Profit ₹27,200, and place all assets, liabilities, capital and net profit in the Balance Sheet, which totals ₹1,03,200.

Concept & treatment. Direct items (opening stock, purchases, returns, carriage inwards, sales, closing stock) go to the Trading A/c. Purchases returns reduce purchases; sales returns reduce sales. Closing stock is credited to Trading and shown as a current asset. Indirect expenses and incomes go to the P&L A/c. Net profit is added to Capital in the Balance Sheet.

Trading Account of Mr. A. Lal for the year ended March 31, 2026

ParticularsAmount (₹)ParticularsAmount (₹)
To Opening Stock16,000By Sales 1,12,000
To Purchases 67,600Less: Returns inwards 4,6001,07,400
Less: Returns outwards 3,20064,400By Closing Stock15,000
To Carriage Inwards1,400
To Gross Profit c/d40,600
Total1,22,400Total1,22,400

Profit & Loss Account for the year ended March 31, 2026

ParticularsAmount (₹)ParticularsAmount (₹)
To General Expenses2,400By Gross Profit b/d40,600
To Bad Debts600By Discount Received1,400
To Interest on Bank Overdraft600By Commission Received1,800
To Insurance & Taxes4,000
To Scooter Expenses200
To Salaries8,800
To Net Profit (to Capital)27,200
Total43,800Total43,800

Balance Sheet as on March 31, 2026

LiabilitiesAmount (₹)AssetsAmount (₹)
Capital 50,000Building65,000

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