From the following information, prepare profit and loss account for the year ending 31st December, 2016.

| Particulars | ₹ | Particulars | ₹ |
| --- | --- | --- | --- |
| Gross loss | 60,000 | Printing and stationery (office) | 2,000 |
| Promotional expenses | 5,000 | Legal char

Question

From the following information, prepare profit and loss account for the year ending 31st December, 2016.

| Particulars | ₹ | Particulars | ₹ |
| --- | --- | --- | --- |
| Gross loss | 60,000 | Printing and stationery (office) | 2,000 |
| Promotional expenses | 5,000 | Legal charges | 5,000 |
| Distribution expenses | 15,000 | Bad debts | 1,000 |
| Commission paid | 7,000 | Depreciation | 2,000 |
| Interest on loan paid | 5,000 | Rent received | 4,000 |
| Packing charges (on sales) | 4,000 | Loss by fire not covered by insurance | 3,000 |
| Dividend received | 3,000 |  |  |

OR

(i) What are the various types of accounting software?
(ii) State the input and output devices of a computer system.

Accepted Answer

>

> [!TLDR]
> (a) After the ₹60,000 gross loss and all indirect expenses, and crediting rent and dividend received, the business shows a Net Loss of ₹1,02,000. (b) OR — software types (ready-made/customised/tailor-made) plus common input and output devices.
>
> ### (a) Profit and Loss Account for the year ending 31st December 2016
>
> | Particulars | ₹ | Particulars | ₹ |
> | --- | --- | --- | --- |
> | To Gross loss b/d | 60,000 | By Rent received | 4,000 |
> | To Promotional expenses | 5,000 | By Dividend received | 3,000 |
> | To Distribution expenses | 15,000 | By Net loss (to Capital) | 1,02,000 |
> | To Commission paid | 7,000 |  |  |
> | To Interest on loan | 5,000 |  |  |
> | To Packing charges (on sales) | 4,000 |  |  |
> | To Printing and stationery (office) | 2,000 |  |  |
> | To Legal charges | 5,000 |  |  |
> | To Bad debts | 1,000 |  |  |
> | To Depreciation | 2,000 |  |  |
> | To Loss by fire (not insured) | 3,000 |  |  |
> | **Total** | **1,09,000** | **Total** | **1,09,000** |
>
> Debit side (gross loss + expenses) = ₹1,09,000; credit side incomes = ₹7,000; balancing figure = **Net Loss ₹1,02,000**, transferred to Capital.
>
> ### (b) OR — Computerised Accounting
>
> **(i) Types of accounting software:**
> 1. **Ready-made software** — off-the-shelf packages (e.g. Tally) for small/medium firms. …

Particulars	₹	Particulars	₹
Gross loss	60,000	Printing and stationery (office)	2,000
Promotional expenses	5,000	Legal charges	5,000
Distribution expenses	15,000	Bad debts	1,000
Commission paid	7,000	Depreciation	2,000
Interest on loan paid	5,000	Rent received	4,000
Packing charges (on sales)	4,000	Loss by fire not covered by insurance	3,000
Dividend received	3,000

Particulars	₹	Particulars	₹
To Gross loss b/d	60,000	By Rent received	4,000
To Promotional expenses	5,000	By Dividend received	3,000
To Distribution expenses	15,000	By Net loss (to Capital)	1,02,000
To Commission paid	7,000
To Interest on loan	5,000
To Packing charges (on sales)	4,000
To Printing and stationery (office)	2,000
To Legal charges	5,000
To Bad debts	1,000
To Depreciation	2,000
To Loss by fire (not insured)	3,000
Total	1,09,000	Total	1,09,000

(a) Profit and Loss Account for the year ending 31st December 2016

(b) OR — Computerised Accounting

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