Trading and Profit and Loss Account and Balance Sheet Preparation

Trial Balance as on 31st March, 2019
Particulars Debit ($) Credit ($)
Stock on 1st April, 2018 20,000
Purchases 2,50,000
Wages 15,000
Rent 10,000
Salaries 20,000
Carriage Inwards 5,000
Carriage Outwards 4,000
Sales 3,80,000
Returns Inward 2,000
Returns Outward 3,000
Discount Allowed 4,000
Discount Received 2,000
Bad Debts 5,000
Sundry Debtors 60,000
Sundry Creditors 50,000
Advertisement 7,000
Interest on Sundry Debtors 1,000
Interest on Bank Overdraft 1,500
Bank Overdraft 30,000
Capital Accounts:
Daya 1,50,000
Kshama 1,50,000
Total 6,41,500 6,41,500

Trading and Profit and Loss Account for the year ended 31st March, 2019

Particulars Amount ($) Particulars Amount ($)
To Opening Stock 20,000 By Sales 3,80,000
To Purchases 2,50,000 By Returns Outward 3,000
Add Carriage Inwards 5,000 By Discount Received 2,000
Less Returns Outward 3,000
Less Closing Stock (30,000)
To Gross Profit c/d 52,000 Total 4,99,000
4,99,000
To Wages 15,000 By Gross Profit b/d 52,000
To Rent 10,000 By Sundry Debtors 60,000
To Salaries 20,000 By Interest on Sundry Debtors 1,000
To Carriage Outwards 4,000 By Discount Allowed 4,000
To Advertisement 7,000 By Bad Debts 5,000
To Interest on Bank Overdraft 1,500
To Net Loss Transferred to Capital Accounts (3,000)
60,500 Total 60,500

Balance Sheet as on 31st March, 2019

Liabilities Amount ($) Assets Amount ($)
Sundry Creditors 50,000 Stock on 31st March, 2019 30,000
Bank Overdraft 30,000 Sundry Debtors 60,000
Capital Accounts:
Daya 1,50,000 Less: Bad Debts (5,000)
Kshama 1,50,000 Prepaid Rent 1,000
3,30,000 Bank Balance (32,500)
Total 3,30,000 Total 3,30,000

Explanation:
- Daya and Kshama are partners sharing profits and losses in the ratio of 1:1.
- The trial balance is given for the year ended 31st March 2019.
- Trading and Profit and Loss Account and Balance Sheet need to be prepared using the given information.
- Trading

Stock