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Numerical Questions · Q9
Q.

The following is the trial balance of Mr. Deepak as on March 31, 2026. You are required to prepare trading account, profit and loss account and a balance sheet as on date :

Account titleDebit ₹Credit ₹
Drawings36,000
Insurance3,000
General expenses29,000
Rent and taxes14,400
Lighting (factory)2,800
Travelling expenses7,400
Cash in hand12,600
Bills receivable5,000
Sundry debtors1,04,000
Furniture16,000
Plant and Machinery1,80,000
Opening stock40,000
Purchases1,60,000
Sales return6,000
Carriage inwards7,200
Carriage outwards1,600
Wages84,000
Salaries53,000
Capital2,50000
Bills payable3,600
Creditors50,000
Discount recived10,400
Purchases return8,000
Sales4,40,000

Closing stock ₹ 35,000.

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Trading gives Gross profit ₹1,83,000; after net indirect expenses, Net profit ₹85,000; the Balance Sheet totals ₹3,52,600.

Concept & treatment. Opening stock, net purchases, factory lighting, carriage inwards and wages are direct (Trading) items. Carriage outwards is a selling expense; insurance, general expenses, rent & taxes, travelling and salaries are indirect (P&L) expenses; discount received is an income. Drawings are deducted from capital.

Trading and Profit and Loss Account for the year ended March 31, 2026

Particulars₹Particulars₹
To Opening stock40,000By Sales 4,40,000
To Purchases 1,60,000  Less: Sales return (6,000)4,34,000
  Less: Purchases return (8,000)1,52,000By Closing stock35,000
To Lighting (factory)2,800
To Carriage inwards7,200
To Wages84,000
To Gross profit c/d1,83,000
Total4,69,000Total4,69,000
To Insurance3,000By Gross profit b/d1,83,000
To General expenses29,000By Discount received10,400
To Rent and taxes14,400
To Travelling expenses7,400
To Carriage outwards1,600
To Salaries53,000
To Net profit (to Capital)85,000
Total1,93,400Total1,93,400

Balance Sheet as at March 31, 2026

Liabilities₹Assets₹
Bills payable3,600Cash in hand12,600
Creditors50,000Bills receivable5,000

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