Trading and Profit and Loss Account and Balance Sheet of Mr. Rishabh for the year ended 31st March, 1999 are prepared as follows:

Trading and Profit and Loss Account of Mr. Rishabh for the year ended 31st March, 1999

Particulars Amount (Rs.) Particulars Amount (Rs.)
To Opening Stock 30,000 By Sales 1,50,000
To Purchases 1,00,000 By Closing Stock 20,000
To Wages 20,000 By Gross Profit c/d 60,000
To Rent 10,000 Total 1,80,000
To Salaries 30,000
To Insurance 5,000
To Printing and Stationery 2,000
To Postage and Telegram 1,000
To Carriage Inward 2,000
To Bad Debts 5,000
To Discount Allowed 1,000
To Interest 3,000
To Depreciation on Building 5,000
To Depreciation on Furniture 2,000
To Net Profit transferred to Capital A/c 30,000
Total 2,63,000 Total 2,63,000

Balance Sheet of Mr. Rishabh as on 31st March, 1999

Liabilities Amount (Rs.) Assets Amount (Rs.)
Capital 1,00,000 Cash 10,000
Add: Net Profit 30,000 Debtors 50,000
1,30,000 Stock 20,000
Creditors 50,000 Purchases 1,00,000
Outstanding Rent 2,000 Furniture 15,000
Outstanding Salary 8,000 Land and Building 1,00,000
1,90,000 Total 1,95,000
Total 1,90,000

Explanation:

Trading and Profit and Loss Account is a nominal account which shows the result of operations of a business during a particular period. It is prepared to ascertain the gross profit or loss and net profit or loss of the business for the period. The Trading and Profit and Loss Account of Mr. Rishabh for the year ended 31st March, 1999 has been prepared by taking into account the opening and closing stock, purchases, wages, rent, salaries, insurance, printing and stationery, postage and telegram, carriage inward, bad debts, discount allowed, interest, depreciation on building and furniture, and net profit transferred to capital account.

Balance Sheet is a statement of assets and liabilities of a business on a particular date. It shows the financial position of the business at the end of the period. The Balance Sheet of Mr. Rishabh as on 31st March, 1999 has been prepared by taking into account the capital, net profit, creditors, outstanding rent and salary, cash, debtors, stock, purchases, furniture, land and building.

Where is trial balance