Answered

22. a) Prepare the Profit and Loss account of HK Traders at the end of Dec. 2023 from the following information.

\begin{tabular}{|l|c|l|c|}
\hline \multicolumn{1}{|c|}{Particulars} & \begin{tabular}{c}
Amount \\
Rs.
\end{tabular} & Particulars & \begin{tabular}{c}
Amount \\
Rs.
\end{tabular} \\
\hline Gross loss & 3,50,000 & Salaries & 90,000 \\
\hline Discount (Cr.) & 50,000 & \begin{tabular}{l}
Office \\
expenses
\end{tabular} & 70,000 \\
\hline \begin{tabular}{l}
Carriage \\
outward
\end{tabular} & 55,000 & Bad debts & 20,000 \\
\hline \begin{tabular}{l}
Dividend \\
received
\end{tabular} & 60,000 & \begin{tabular}{l}
Selling \\
expense
\end{tabular} & 25,000 \\
\hline
\end{tabular}



Answer :

GinnyAnswer
To prepare the Profit and Loss account for HK Traders at the end of December 2023, we need to segregate and calculate the total income and total expenses from the given particulars. After this, we can determine the net profit or loss.

Let's list out and categorize all the given particulars, dividing them into incomes and expenses.

### Incomes:
1. Discount Received: Rs. 50,000
2. Dividend Received: Rs. 60,000

### Expenses:
1. Gross Loss: Rs. 3,50,000
2. Salaries: Rs. 90,000
3. Office Expenses: Rs. 70,000
4. Carriage Outward: Rs. 55,000
5. Bad Debts: Rs. 20,000
6. Selling Expenses: Rs. 25,000

### Calculating Total Income:
```
Total Income = Discount Received + Dividend Received
= Rs. 50,000 + Rs. 60,000
= Rs. 1,10,000
```

### Calculating Total Expenses:
```
Total Expenses = Gross Loss + Salaries + Office Expenses + Carriage Outward + Bad Debts + Selling Expenses
= Rs. 3,50,000 + Rs. 90,000 + Rs. 70,000 + Rs. 55,000 + Rs. 20,000 + Rs. 25,000
= Rs. 6,10,000
```

### Calculating Net Profit/Loss:
```
Net Profit/Loss = Total Income - Total Expenses
= Rs. 1,10,000 - Rs. 6,10,000
= Rs. -5,00,000
```

Thus, HK Traders have incurred a net loss of Rs. 5,00,000 at the end of December 2023. Now, let's present the Profit and Loss account in a formal layout.

### HK Traders
### Profit and Loss Account for the Year ending December 31, 2023

[tex]\[ \begin{array}{|c|c|c|c|} \hline \textbf{Particulars} & \textbf{Amount (Rs.)} & \textbf{Particulars} & \textbf{Amount (Rs.)} \\ \hline \text{Gross Loss} & 3,50,000 & \text{Discount Received} & 50,000 \\ \text{Salaries} & 90,000 & \text{Dividend Received} & 60,000 \\ \text{Office Expenses} & 70,000 & & \\ \text{Carriage Outward} & 55,000 & & \\ \text{Bad Debts} & 20,000 & & \\ \text{Selling Expenses} & 25,000 & & \\ \hline \text{Total Expenses} & 6,10,000 & \text{Total Income} & 1,10,000 \\ \hline \textbf{Net Loss transferred to Capital account} & \textbf{5,00,000} & & \\ \hline \end{array} \][/tex]

The Profit and Loss account shows that HK Traders have a net loss of Rs. 5,00,000 for the year ending December 31, 2023.