Answered

1. From the following Trial Balance and additional information, prepare the Trading, Profit and Loss account, and Balance Sheet as on 31.12.2023.

\begin{tabular}{|l|r|r|}
\hline
Particulars & Debit (Rs.) & Credit (Rs.) \\
\hline
Capital & & 30,000 \\
\hline
Sundry Debtors & 8,100 & \\
\hline
Machinery & 10,500 & \\
\hline
Drawings & 2,700 & \\
\hline
Purchases & 28,500 & \\
\hline
Wages & 15,000 & \\
\hline
Sundry Creditors & & 4,200 \\
\hline
Opening Stock & 4,500 & \\
\hline
Cash at Bank & 450 & \\
\hline
Carriage & 600 & \\
\hline
Salaries & & \\
\hline
Sales & & 77,700 \\
\hline
Rent and Taxes & & \\
\hline
\end{tabular}

Additional Information:
1. Outstanding rent and taxes Rs. 150
2. Closing stock Rs. 1,800
3. Depreciation on Machinery [tex]$10\%$[/tex]
4. Wages prepaid Rs. 600



Answer :

GinnyAnswer
### Trading Account for the year ended 31.12.2023

#### Dr. Side (Expenditures)

- Opening Stock: ₹4500
- Purchases: ₹28500
- Wages: ₹15000
- Carriage: ₹600

#### Less:

- Closing Stock: ₹1800
- Wages Prepaid: ₹600

#### Cr. Side (Income)

- Sales: ₹77700

#### Calculation for Net Purchases

Net Purchases = Purchases = ₹28500

#### Calculation for Gross Profit

Gross Profit = Sales - (Opening Stock + Net Purchases + Wages + Carriage - Wages Prepaid - Closing Stock)

Gross Profit = ₹77700 - (₹4500 + ₹28500 + ₹15000 + ₹600 - ₹600 - ₹1800)

Gross Profit = ₹31500

---

### Profit and Loss Account for the year ended 31.12.2023

#### Dr. Side (Expenditures)

- Outstanding Rent and Taxes: ₹150
- Depreciation on Machinery: ₹1050 (10% of ₹10500)
- Wages (Adjusted): ₹14400 (Wages - Wages Prepaid = ₹15000 - ₹600)
- Carriage: ₹600

Total Expenses = Outstanding Rent and Taxes + Depreciation on Machinery + Wages (Adjusted) + Carriage

Total Expenses = ₹150 + ₹1050 + ₹14400 + ₹600

Total Expenses = ₹16200

#### Calculation for Net Profit

Net Profit = Gross Profit - Total Expenses

Net Profit = ₹31500 - ₹16200

Net Profit = ₹15300

---

### Balance Sheet as on 31.12.2023

#### Assets

- Sundry Debtors: ₹8100
- Machinery (after Depreciation): ₹9450 (Machinery - Depreciation = ₹10500 - ₹1050)
- Closing Stock: ₹1800
- Cash at Bank: ₹450

Total Assets = Sundry Debtors + Machinery (after Depreciation) + Closing Stock + Cash at Bank

Total Assets = ₹19800

#### Liabilities

- Capital: ₹30000
- Add: Net Profit: ₹15300

[ Adjusted Capital: ₹45300 (Capital + Net Profit) ]

- Less: Drawings: ₹2700
- Sundry Creditors: ₹4200

Total Liabilities = Adjusted Capital - Drawings + Sundry Creditors

Total Liabilities = ₹46800

---

#### Summary

1. Gross Profit: ₹31500
2. Net Profit: ₹15300
3. Total Assets: ₹19800
4. Total Liabilities: ₹46800

Other Questions