From the following Trial Balance of Mr. Anand as on 31st March 2024, prepare the Trading and Profit and Loss Account for the year ended 31st March 2024 and the Balance Sheet as on that date. Closing Stock as on 31.03.2024 was valued at ₹35,000.
| Particulars | Debit (₹) | Credit (₹) |
|---|---|---|
| Opening Stock | 25,000 | |
| Purchases / Sales | 2,20,000 | 3,50,000 |
| Wages | 15,000 | |
| Salaries | 30,000 | |
| Rent | 12,000 | |
| Sundry Debtors / Sundry Creditors | 60,000 | 40,000 |
| Furniture | 40,000 | |
| Cash in Hand | 28,000 | |
| Drawings | 10,000 | |
| Capital | 50,000 | |
| Total | 4,40,000 | 4,40,000 |
Step 1 — Trading Account:
| Dr. Trading Account for the year ended 31.03.2024 | ₹ | Cr. | ₹ |
|---|---|---|---|
| To Opening Stock | 25,000 | By Sales | 3,50,000 |
| To Purchases | 2,20,000 | By Closing Stock | 35,000 |
| To Wages | 15,000 | ||
| To Gross Profit c/d | 1,25,000 | ||
| Total | 3,85,000 | Total | 3,85,000 |
Gross Profit = 3,50,000 + 35,000 − 25,000 − 2,20,000 − 15,000 = ₹1,25,000.
Step 2 — Profit and Loss Account:
| Dr. Profit and Loss Account for the year ended 31.03.2024 | ₹ | Cr. | ₹ |
|---|---|---|---|
| To Salaries | 30,000 | By Gross Profit b/d | 1,25,000 |
| To Rent | 12,000 | ||
| To Net Profit (to Capital A/c) | 83,000 | ||
| Total | 1,25,000 | Total | 1,25,000 |
Net Profit = 1,25,000 − 30,000 − 12,000 = ₹83,000.
Step 3 — Balance Sheet as on 31.03.2024:
| Liabilities | ₹ | Assets | ₹ |
|---|---|---|---|
| Capital | 50,000 | Furniture | 40,000 |
| Add: Net Profit | 83,000 | Closing Stock | 35,000 |
| 1,33,000 | Sundry Debtors | 60,000 | |
| Less: Drawings | (10,000) | Cash in Hand | 28,000 |
| 1,23,000 | |||
| Sundry Creditors | 40,000 | ||
| Total | 1,63,000 | Total | 1,63,000 |
Step 4 — Verify. Both sides of the Balance Sheet total ₹1,63,000, confirming the accounts are correctly prepared.
Gross Profit = ₹1,25,000. Net Profit = ₹83,000. Balance Sheet as on 31.03.2024 totals ₹1,63,000 on both the Liabilities side (Capital ₹1,23,000 + Creditors ₹40,000) and the Assets side (Furniture ₹40,000 + Closing Stock ₹35,000 + Debtors ₹60,000 + Cash ₹28,000).
Unlock everything free for 14 days
- Full step-by-step solutions
- Concept-first explanations
- Methods, shortcuts & mistakes
- PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.