Prepare trading and profit and loss account and balance sheet as on March 31, 2026 :
| Account Title | Debit ₹ | Credit ₹ |
|---|---|---|
| Machinery | 27,000 | |
| Sundry debtors | 21,600 | |
| Drawings | 2,700 | |
| Purchases | 58,500 | |
| Wages | 15,000 | |
| Sundry expenses | 600 | |
| Rent & taxes | 1,350 | |
| Carriage inwards | 450 | |
| Bank | 4,500 | |
| Openings stock | 6,000 | |
| Capital | 60,000 | |
| Bills payable | 2,800 | |
| Sundry creditors | 1,400 | |
| Sales | 73,500 |
Closing stock as on March 31, 2026 ₹22,400
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Start your 14-day free trial to unlock the full solution →Trading gives Gross profit ₹15,950; after ₹1,950 of indirect expenses, Net profit ₹14,000; the Balance Sheet totals ₹75,500 on each side.
Concept & treatment. Opening stock, purchases, wages and carriage inwards are direct items entered in the Trading Account; sundry expenses and rent & taxes are indirect items in the Profit and Loss Account. Drawings are deducted from capital, and net profit is added to it.
Trading and Profit and Loss Account for the year ended March 31, 2026
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Opening stock | 6,000 | By Sales | 73,500 |
| To Purchases | 58,500 | By Closing stock | 22,400 |
| To Wages | 15,000 | ||
| To Carriage inwards | 450 | ||
| To Gross profit c/d | 15,950 | ||
| Total | 95,900 | Total | 95,900 |
| To Sundry expenses | 600 | By Gross profit b/d | 15,950 |
| To Rent & taxes | 1,350 | ||
| To Net profit (to Capital) | 14,000 | ||
| Total | 15,950 | Total | 15,950 |
Balance Sheet as at March 31, 2026
| Liabilities | ₹ | Assets | ₹ |
|---|---|---|---|
| Bills payable | 2,800 | Machinery | 27,000 |
| Sundry creditors | 1,400 | Sundry debtors | 21,600 |
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