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Question 13 of 32
Q.

(a) Prepare the trial balance from the following balances of Babu as on 31st March, 2016.

Particulars₹
Cash in hand7,000
Sundry debtors5,400
Salaries6,800
Bad debts200
Opening stock15,400
Bills receivable7,000
Creditors11,800
Capital25,000
Purchases45,000
Sales50,000

OR

(b) Given below are the balances extracted from the books of Nicholas as on 31st March 2016.

Particulars₹Particulars₹
Purchases10,000Sales15,100
Wages600Commission received1,900
Freight Inwards750Rent received600
Advertisement500
Carriage outwards400
Stock on (01/01/2016)1,000

Prepare trading and profit & loss account for the year ended 31 March, 2016 after adjusting the following.

  1. Commission received in advance ₹ 400.
  2. Wages outstanding ₹ 200.
  3. Advertisement paid in advance ₹ 150.
  4. Closing stock on 31st March 2016 ₹ 2,100.
Tamil Nadu DgeTamil Nadu HSC First Year (DGE) Commerce Board 2022Subjective· 5mImportance★★★★★
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(a) Babu's Trial Balance totals ₹86,800 on each side; (b) Nicholas's Trading & P&L Account after the four adjustments → Gross Profit ₹4,650, Net Profit ₹6,000.

(a) Trial Balance of Babu as on 31st March 2016

Assets, expenses and losses carry debit balances; liabilities, capital and incomes carry credit balances.

ParticularsDr (₹)Cr (₹)
Cash in hand7,000
Sundry debtors5,400
Salaries6,800
Bad debts200
Opening stock15,400
Bills receivable7,000
Purchases45,000
Creditors11,800
Capital25,000
Sales50,000
Total86,80086,800

The two sides agree, so the trial balance is arithmetically correct.

(b) Trading and Profit & Loss Account of Mr. Nicholas for the year ended 31 March 2016

Trading Account

Dr — Particulars₹Cr — Particulars₹
To Opening stock1,000By Sales15,100
To Purchases10,000By Closing stock2,100
To Wages (600 + 200 o/s)800
To Freight inwards750
To Gross profit c/d4,650
Total17,200Total17,200

Profit & Loss Account

Dr — Particulars₹Cr — Particulars₹
To Advertisement (500 − 150 prepaid)350By Gross profit b/d4,650

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