Trading and Profit and Loss Account for the year ended 31 March 2018

**Particulars**|**Amount (Rs.)**
:-----:|:-----:
Sales|1,50,000
Less: Returns Outwards|4,000
Net Sales|1,46,000
Cost of Goods Sold:|
Opening Stock|20,000
Purchases|1,00,000
Less: Returns Inwards|3,000
Direct Expenses|5,000
Freight Inwards|2,000
Wages and Salaries|10,000
Gross Profit c/d|6,000
|--------------
|1,40,000
|--------------
|1,60,000
|--------------
|Gross Profit b/d|6,000
Operating Expenses:|
Rent|4,000
Salaries and Wages|8,000
Printing and Stationery|2,000
Postage and Telegram|1,000
Telephone|1,500
Insurance|1,500
Repairs and Maintenance|1,000
Bad Debts|2,000
Depreciation|2,500
Net Profit|6,000
|--------------
|22,000
|--------------
|22,000


Balance Sheet as at 31 March 2018

**Liabilities**|**Amount (Rs.)**|**Assets**|**Amount (Rs.)**
:-----:|:-----:|:-----:|:-----:
Capital|50,000|Fixed Assets:|
Add: Net Profit|6,000|Furniture and Fixtures|20,500
|--------------|Less: Depreciation|5,000
|56,000| | |--------------
| |Current Assets:|
Current Liabilities:| |Closing Stock|25,000
Sundry Creditors|10,000|Debtors|15,000
Outstanding Expenses|2,000|Cash in Hand|4,000
|--------------|Bank Balance|20,500
|12,000| | |--------------
|--------------|Total|69,000
|68,000| |--------------
|--------------|Total|68,000

Explanation:

The Trading and Profit and Loss Account and the Balance Sheet of Subhash General Store for the year ended 31 March 2018 has been prepared based on the following particulars:

1. Sales: The total sales made by the store during the year was Rs. 1,50,000.

2. Returns Outwards: The customers returned goods worth Rs. 4,000. Therefore, the net sales for the year was Rs. 1,46,000.

3. Cost of Goods Sold: The cost of goods sold has been calculated by adding the opening stock of Rs. 20,000 to the purchases made during the year of Rs. 1,00,000, less the returns inwards of Rs. 3,000, direct expenses of Rs. 5,000, freight inwards of Rs. 2,000, and wages and salaries of Rs. 10,000. The cost of goods sold for the year was Rs. 1,20,000.

4. Gross Profit: The gross profit for the year was calculated by deducting the cost of goods sold from the net sales, which amounted to Rs. 26,000. However, after accounting for gross profit brought