{"id":108080,"date":"2021-07-26T19:19:40","date_gmt":"2021-07-26T13:49:40","guid":{"rendered":"https:\/\/www.kopykitab.com\/blog\/?p=108080"},"modified":"2021-08-09T19:28:46","modified_gmt":"2021-08-09T13:58:46","slug":"ncert-solutions-for-class-11-accountancy-chapter-9","status":"publish","type":"post","link":"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/","title":{"rendered":"NCERT Solutions for Class 11 Accountancy Chapter 9 2021: Download PDF"},"content":{"rendered":"\n<p><strong>NCERT Solutions for Class 11 Accountancy Chapter 9: <\/strong>We provide NCERT Solutions for Class 11 Accountancy Chapter 9 that are simple to grasp. In the <a href=\"https:\/\/www.kopykitab.com\/Class-11-Accountancy\">NCERT Solutions For Class 11 Accountancy<\/a> Chapter 9, our faculty has solved and explained all of the questions in the chapter according to CBSE norms.<\/p>\n<p>To make learning easier, the answers to the questions are supplied in PDF format here. These NCERT Solutions will assist them in thoroughly revising the chapter and achieving good grades in the examinations.\u00a0<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_47_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"ez-toc-toggle-icon-1\"><label for=\"item-69e4be2e5aa05\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-69e4be2e5aa05\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-visibility-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#ncert-solutions-for-class-11-accountancy-chapter-9-pdf\" title=\"NCERT Solutions For Class 11 Accountancy Chapter 9 PDF\">NCERT Solutions For Class 11 Accountancy Chapter 9 PDF<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#download-the-pdf-of-ncert-solutions-for-class-11-accountancy-chapter-9\" title=\"Download the PDF Of NCERT Solutions For Class 11 Accountancy Chapter-9\">Download the PDF Of NCERT Solutions For Class 11 Accountancy Chapter-9<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#ncert-solutions-for-class-11-accountancy-chapter-9-overview\" title=\"NCERT Solutions For Class 11 Accountancy Chapter 9 : Overview\">NCERT Solutions For Class 11 Accountancy Chapter 9 : Overview<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#1what-are-the-financial-statements-what-are-the-objectives-of-financial-statements\" title=\"1.What Are the Financial Statements? What are the Objectives of Financial Statements?\">1.What Are the Financial Statements? What are the Objectives of Financial Statements?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#2-what-is-a-balance-sheet-what-are-the-features-of-a-balance-sheet\" title=\"2. What is a Balance Sheet? What Are the Features of a Balance Sheet?\">2. What is a Balance Sheet? What Are the Features of a Balance Sheet?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#access-ncert-solutions-for-class-11-accountancy-chapter-9\" title=\"Access NCERT Solutions For Class 11 Accountancy Chapter 9\">Access NCERT Solutions For Class 11 Accountancy Chapter 9<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#1-what-are-the-objectives-of-preparing-financial-statements\" title=\"1. What are the objectives of preparing financial statements?\">1. What are the objectives of preparing financial statements?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#3costs-incurred-in-production-of-goods-that-are-sold-by-company-is-known-as-cost-of-goods-sold-or-cogs\" title=\"3.Costs incurred in production of goods that are sold by company is known as Cost of Goods Sold or COGS\">3.Costs incurred in production of goods that are sold by company is known as Cost of Goods Sold or COGS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#4-what-is-a-balance-sheet-what-are-its-characteristics\" title=\"4. What is a balance sheet? What are its characteristics?\">4. What is a balance sheet? What are its characteristics?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#6-what-is-an-operating-profit\" title=\"6. What is an operating profit?\">6. What is an operating profit?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#long-answers-for-ncert-accountancy-solutions-class-11-chapter-9\" title=\"Long Answers for NCERT Accountancy Solutions Class 11 Chapter 9\">Long Answers for NCERT Accountancy Solutions Class 11 Chapter 9<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#1-what-are-financial-statements-what-information-do-they-provide\" title=\"1. What are financial statements? What information do they provide?\">1. What are financial statements? What information do they provide?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#2-what-are-closing-entries-give-four-examples-of-closing-entries\" title=\"2. What are closing entries? Give four examples of closing entries.\">2. What are closing entries? Give four examples of closing entries.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#3-discuss-the-need-of-preparing-a-balance-sheet\" title=\"3. Discuss the need of preparing a balance sheet.\">3. Discuss the need of preparing a balance sheet.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#numerical-answers-for-ncert-accountancy-solutions-class-11-chapter-9\" title=\"Numerical Answers for NCERT Accountancy Solutions Class 11 Chapter 9\">Numerical Answers for NCERT Accountancy Solutions Class 11 Chapter 9<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#from-the-following-balances-taken-from-the-books-of-simmi-and-vimmi-ltd\" title=\" From the following balances taken from the books of Simmi and Vimmi Ltd.\"> From the following balances taken from the books of Simmi and Vimmi Ltd.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#2-from-the-following-balances-extracted-from-the-books-of-ms-ahuja-and-nanda-calculate-the-amount-of\" title=\"2. From the following balances extracted from the books of M\/s Ahuja and Nanda. Calculate the amount of:\">2. From the following balances extracted from the books of M\/s Ahuja and Nanda. Calculate the amount of:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#3-calculate-the-amount-of-gross-profit-and-operating-profit-on-the-basis-of-the-following-balances-extracted-from-the-books-of-ms-rajiv-and-sons-for-the-year-ended-march-31-2017\" title=\"3. Calculate the amount of gross profit and operating profit on the basis of the following balances extracted from the books of M\/s Rajiv and Sons for the year ended March 31, 2017.\">3. Calculate the amount of gross profit and operating profit on the basis of the following balances extracted from the books of M\/s Rajiv and Sons for the year ended March 31, 2017.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#6-prepare-trading-and-profit-and-loss-account-and-balance-sheet-as-on-march-31-2017\" title=\"6. Prepare trading and profit and loss account and balance sheet, as on March 31, 2017:\">6. Prepare trading and profit and loss account and balance sheet, as on March 31, 2017:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#7the-following-trial-balance-is-extracted-from-the-books-of-ms-ram-on-march-31-2017-you-are-required-to-prepare-trading-and-profit-and-loss-account-and-the-balance-sheet-as-on-date\" title=\"7.The following trial balance is extracted from the books of M\/s Ram on March 31, 2017. You are required to prepare trading and profit and loss account and the balance sheet as on date:\">7.The following trial balance is extracted from the books of M\/s Ram on March 31, 2017. You are required to prepare trading and profit and loss account and the balance sheet as on date:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#8-the-following-is-the-trial-balance-of-manju-chawla-on-march-31-2017-you-are-required-to-prepare-trading-and-profit-and-loss-account-and-a-balance-sheet-as-on-date\" title=\"8. The following is the trial balance of Manju Chawla on March 31, 2017. You are required to prepare trading and profit and loss account and a balance sheet as on date:\">8. The following is the trial balance of Manju Chawla on March 31, 2017. You are required to prepare trading and profit and loss account and a balance sheet as on date:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#9-the-following-is-the-trial-balance-of-mr-deepak-as-on-march-31-2017-you-are-required-to-prepare-trading-account-profit-and-loss-account-and-a-balance-sheet-as-on-date\" title=\"9. The following is the Trial Balance of Mr. Deepak as on March 31, 2017. You are required to prepare trading account, profit and loss account and a balance sheet as on date:\">9. The following is the Trial Balance of Mr. Deepak as on March 31, 2017. You are required to prepare trading account, profit and loss account and a balance sheet as on date:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#10-prepare-trading-and-profit-and-loss-account-and-balance-sheet-from-the-following-particulars-as-on-march-31-2017\" title=\"10. Prepare trading and profit and loss account and balance sheet from the following particulars as on March 31, 2017.\">10. Prepare trading and profit and loss account and balance sheet from the following particulars as on March 31, 2017.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#11-from-the-following-trial-balance-of-mr-a-lal-prepare-trading-profit-and-loss-account-and-balance-sheet-as-on-march-31-2017\" title=\"11. From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017.\">11. From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#12-prepare-trading-and-profit-and-loss-account-and-balance-sheet-of-ms-royal-traders-from-the-following-balances-as-on-march-31-2017\" title=\"12. Prepare trading and profit and loss account and balance sheet of M\/s Royal Traders from the following balances as on March 31, 2017.\">12. Prepare trading and profit and loss account and balance sheet of M\/s Royal Traders from the following balances as on March 31, 2017.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#13-prepare-trading-and-profit-and-loss-account-from-the-following-particulars-of-ms-neema-traders-as-on-march-31-2017\" title=\"13. Prepare trading and profit and loss account from the following particulars of M\/s Neema Traders as on March 31, 2017.\">13. Prepare trading and profit and loss account from the following particulars of M\/s Neema Traders as on March 31, 2017.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#14-from-the-following-balances-of-ms-nilu-sarees-as-on-march-31-2017-prepare-trading-and-profit-and-loss-account-and-balance-sheet-as-on-date\" title=\"14. From the following balances of M\/s Nilu Sarees as on March 31, 2017. Prepare trading and profit and loss account and balance sheet as on date.\">14. From the following balances of M\/s Nilu Sarees as on March 31, 2017. Prepare trading and profit and loss account and balance sheet as on date.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#15-prepare-trading-and-profit-and-loss-account-of-ms-sports-equipments-for-the-year-ended-march-31-2017-and-balance-sheet-as-on-that-date\" title=\"15. Prepare trading and profit and loss account of M\/s Sports Equipments for the year ended March 31, 2017 and balance sheet as on that date:\">15. Prepare trading and profit and loss account of M\/s Sports Equipments for the year ended March 31, 2017 and balance sheet as on that date:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#16the-objectives-of-preparing-financial-statements\" title=\"16.The objectives of preparing financial statements?\">16.The objectives of preparing financial statements?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#4-what-is-a-balance-sheet-what-are-its-characteristics-2\" title=\"4. What is a balance sheet? What are its characteristics?\">4. What is a balance sheet? What are its characteristics?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#5-what-is-an-operating-profit\" title=\"5. What is an operating profit?\">5. What is an operating profit?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#long-answers-for-ncert-accountancy-solutions-class-11-chapter-9-2\" title=\"Long Answers for NCERT Accountancy Solutions Class 11 Chapter 9\">Long Answers for NCERT Accountancy Solutions Class 11 Chapter 9<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#1-what-are-financial-statements-what-information-do-they-provide-2\" title=\"1. What are financial statements? What information do they provide?\">1. What are financial statements? What information do they provide?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#2-what-are-closing-entries-give-four-examples-of-closing-entries-2\" title=\"2. What are closing entries? Give four examples of closing entries.\">2. What are closing entries? Give four examples of closing entries.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#numerical-answers-for-ncert-accountancy-solutions-class-11-chapter-9-2\" title=\"Numerical Answers for NCERT Accountancy Solutions Class 11 Chapter 9\">Numerical Answers for NCERT Accountancy Solutions Class 11 Chapter 9<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#1-from-the-following-balances-taken-from-the-books-of-simmi-and-vimmi-ltd\" title=\"1. From the following balances taken from the books of Simmi and Vimmi Ltd.\">1. From the following balances taken from the books of Simmi and Vimmi Ltd.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#3-calculate-the-amount-of-gross-profit-and-operating-profit-on-the-basis-of-the-following-balances-extracted-from-the-books-of-ms-rajiv-and-sons-for-the-year-ended-march-31-2017-2\" title=\"3. Calculate the amount of gross profit and operating profit on the basis of the following balances extracted from the books of M\/s Rajiv and Sons for the year ended March 31, 2017.\">3. Calculate the amount of gross profit and operating profit on the basis of the following balances extracted from the books of M\/s Rajiv and Sons for the year ended March 31, 2017.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#4-operating-profit-earned-by-ms-arora-and-sachdeva-in-2016-17-was-%e2%82%b9-17-00000-its-non-operating-incomes-were-%e2%82%b9-1-50000-and-non-operating-expenses-were-%e2%82%b9-3-75000-calculate-the-amount-of-net-profit-earned-by-the-firm\" title=\"4. Operating profit earned by M\/s Arora and Sachdeva in 2016-17 was \u20b9 17, 00,000. Its non-operating incomes were \u20b9 1, 50,000 and non-operating expenses were \u20b9 3, 75,000. Calculate the amount of net profit earned by the firm.\">4. Operating profit earned by M\/s Arora and Sachdeva in 2016-17 was \u20b9 17, 00,000. Its non-operating incomes were \u20b9 1, 50,000 and non-operating expenses were \u20b9 3, 75,000. Calculate the amount of net profit earned by the firm.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-39\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#6-prepare-trading-and-profit-and-loss-account-and-balance-sheet-as-on-march-31-2017-2\" title=\"6. Prepare trading and profit and loss account and balance sheet, as on March 31, 2017:\">6. Prepare trading and profit and loss account and balance sheet, as on March 31, 2017:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-40\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#7-the-following-trial-balance-is-extracted-from-the-books-of-ms-ram-on-march-31-2017-you-are-required-to-prepare-trading-and-profit-and-loss-account-and-the-balance-sheet-as-on-date\" title=\"7. The following trial balance is extracted from the books of M\/s Ram on March 31, 2017. You are required to prepare trading and profit and loss account and the balance sheet as on date:\">7. The following trial balance is extracted from the books of M\/s Ram on March 31, 2017. You are required to prepare trading and profit and loss account and the balance sheet as on date:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-41\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#8-the-following-is-the-trial-balance-of-manju-chawla-on-march-31-2017-you-are-required-to-prepare-trading-and-profit-and-loss-account-and-a-balance-sheet-as-on-date-2\" title=\"8. The following is the trial balance of Manju Chawla on March 31, 2017. You are required to prepare trading and profit and loss account and a balance sheet as on date:\">8. The following is the trial balance of Manju Chawla on March 31, 2017. You are required to prepare trading and profit and loss account and a balance sheet as on date:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-42\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#10-the-following-is-the-trial-balance-of-mr-deepak-as-on-march-31-2017-you-are-required-to-prepare-trading-account-profit-and-loss-account-and-a-balance-sheet-as-on-date\" title=\"10. The following is the Trial Balance of Mr. Deepak as on March 31, 2017. You are required to prepare trading account, profit and loss account and a balance sheet as on date:\">10. The following is the Trial Balance of Mr. Deepak as on March 31, 2017. You are required to prepare trading account, profit and loss account and a balance sheet as on date:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-43\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#11-prepare-trading-and-profit-and-loss-account-and-balance-sheet-from-the-following-particulars-as-on-march-31-2017\" title=\"11. Prepare trading and profit and loss account and balance sheet from the following particulars as on March 31, 2017.\">11. Prepare trading and profit and loss account and balance sheet from the following particulars as on March 31, 2017.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-44\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#12-from-the-following-trial-balance-of-mr-a-lal-prepare-trading-profit-and-loss-account-and-balance-sheet-as-on-march-31-2017\" title=\"12. From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017.\">12. From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-45\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#13-prepare-trading-and-profit-and-loss-account-and-balance-sheet-of-ms-royal-traders-from-the-following-balances-as-on-march-31-2017\" title=\"13. Prepare trading and profit and loss account and balance sheet of M\/s Royal Traders from the following balances as on March 31, 2017.\">13. Prepare trading and profit and loss account and balance sheet of M\/s Royal Traders from the following balances as on March 31, 2017.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-46\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#14-prepare-trading-and-profit-and-loss-account-from-the-following-particulars-of-ms-neema-traders-as-on-march-31-2017\" title=\"14. Prepare trading and profit and loss account from the following particulars of M\/s Neema Traders as on March 31, 2017.\">14. Prepare trading and profit and loss account from the following particulars of M\/s Neema Traders as on March 31, 2017.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-47\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#15-from-the-following-balances-of-ms-nilu-sarees-as-on-march-31-2017-prepare-trading-and-profit-and-loss-account-and-balance-sheet-as-on-date\" title=\"15. From the following balances of M\/s Nilu Sarees as on March 31, 2017. Prepare trading and profit and loss account and balance sheet as on date.\">15. From the following balances of M\/s Nilu Sarees as on March 31, 2017. Prepare trading and profit and loss account and balance sheet as on date.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-48\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#16-prepare-trading-and-profit-and-loss-account-of-ms-sports-equipments-for-the-year-ended-march-31-2017-and-balance-sheet-as-on-that-date\" title=\"16. Prepare trading and profit and loss account of M\/s Sports Equipments for the year ended March 31, 2017 and balance sheet as on that date:\">16. Prepare trading and profit and loss account of M\/s Sports Equipments for the year ended March 31, 2017 and balance sheet as on that date:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-49\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#access-other-chapters-and-ncert-solutions-for-class-11-accountancy-chapter-8\" title=\"Access Other Chapters and NCERT Solutions For Class 11 Accountancy Chapter 8\">Access Other Chapters and NCERT Solutions For Class 11 Accountancy Chapter 8<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-50\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#faq-frequently-asked-questions-ncert-solutions-for-class-11-accountancy-chapter-9\" title=\"FAQ (Frequently Asked Questions): NCERT Solutions For Class 11 Accountancy Chapter 9\">FAQ (Frequently Asked Questions): NCERT Solutions For Class 11 Accountancy Chapter 9<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-51\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#when-does-the-passbook-and-cash-book-not-tally-with-each-other-give-reasons\" title=\"When does the passbook and cash book not tally with each other? Give reasons.\">When does the passbook and cash book not tally with each other? Give reasons.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-52\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#why-is-it-mandatory-to-prepare-a-bank-reconciliation-statement\" title=\"Why is it mandatory to prepare a bank reconciliation statement?\">Why is it mandatory to prepare a bank reconciliation statement?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-53\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#what-are-financial-statements-what-information-do-they-provide\" title=\"What are financial statements? What information do they provide?\">What are financial statements? What information do they provide?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-54\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/#what-are-closing-entries-give-four-examples-of-closing-entries\" title=\"What are closing entries? Give four examples of closing entries.\">What are closing entries? Give four examples of closing entries.<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"ncert-solutions-for-class-11-accountancy-chapter-9-pdf\"><\/span><strong>NCERT Solutions For Class 11 Accountancy Chapter 9 PDF<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/NCERT-Solutions-for-Class-11-Accountancy-Part-2-Chapter-1.pdf\" target=\"_blank\" rel=\"noopener\">NCERT solutions for Class 11 Accountancy Chapter 9<\/a><\/p>\n<p>\u00a0<\/p>\n<div id=\"example1\" style=\"text-align: justify\">\u00a0<\/div>\n<p style=\"text-align: justify\">.pdfobject-container { height: 800px;}<br \/>.pdfobject { border: 1px solid #666; }<\/p>\n<p style=\"text-align: justify\"><br \/>PDFObject.embed(&#8220;https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/NCERT-Solutions-for-Class-11-Accountancy-Part-2-Chapter-1.pdf&#8221;, &#8220;#example1&#8221;);<\/p>\n<h2><span class=\"ez-toc-section\" id=\"download-the-pdf-of-ncert-solutions-for-class-11-accountancy-chapter-9\"><\/span><strong>Download the PDF Of NCERT Solutions For Class 11 Accountancy Chapter-9<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: center\"><a style=\"width: auto;padding: 18px;cursor: pointer;font-weight: bold;border-radius: 40px;color: #ffffff;background: #ff4500\" href=\"https:\/\/www.kopykitab.com\/blog\/wp-content\/uploads\/2021\/07\/NCERT-Solutions-for-Class-11-Accountancy-Part-2-Chapter-1.pdf\" target=\"_blank\" rel=\"noopener\">Click Here <\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"ncert-solutions-for-class-11-accountancy-chapter-9-overview\"><\/span><strong>NCERT Solutions For Class 11 Accountancy Chapter 9 : Overview<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1what-are-the-financial-statements-what-are-the-objectives-of-financial-statements\"><\/span><strong>1.What Are the Financial Statements? What are the Objectives of Financial Statements?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The accounting and financial information pertaining to the business is depicted in the financial statement reports. This statement is used by a company&#8217;s administration to interact with external authorities, stakeholders, investors, creditors, and regulatory agencies, among other things.<\/p>\n<p>The following reports are included in these financial statements.<\/p>\n<ul>\n<li>Profit and loss statement<\/li>\n<li>Income sheet<\/li>\n<li>Statement of cash flow<\/li>\n<li>Balance sheet<\/li>\n<\/ul>\n<p><strong>Objectives of Preparing Financial Statements<\/strong><\/p>\n<p><strong>Recording<\/strong> &#8211; The fundamental goal of financial statement preparation is to record and summaries a company&#8217;s transactions on a regular basis. It is critical to have an entity that monitors the organization&#8217;s financial transactions.<\/p>\n<p><strong>Decision-Making<\/strong> &#8211; The financial statement helps the organizers to make necessary and relevant strategies and decisions.<\/p>\n<p><strong>Planning- <\/strong>Preparing financial statements assists in identifying financial problems and taking essential actions for the organization&#8217;s growth.<\/p>\n<p><strong>Accountability &#8211; <\/strong>An organization&#8217;s financial statement generates liability, allowing them to examine their performance. Throughout the years.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2-what-is-a-balance-sheet-what-are-the-features-of-a-balance-sheet\"><\/span><strong>2. What is a Balance Sheet? What Are the Features of a Balance Sheet?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A balance sheet is a statement consisting of books with balances of commercial and personal accounts, rather than an account like a profit and loss account. A balance sheet is used to keep track of an organization&#8217;s capital assets and liabilities. The goal of generating a balance sheet is to reflect the organization&#8217;s financial status at a certain date in a fair and accurate manner. When the accounting year concludes, each company generates a balance sheet. The following is a definition of a balance sheet.<\/p>\n<p>It is a record of the owner&#8217;s liabilities, assets, and capital as of a certain date. It is a statement that discloses aggregate liabilities, aggregate assets, and aggregate equity of the owner on a particular date. To have a better insight on the topic go through the PDF Of NCERT Solutions For Class 11 Accountancy Chapter 9<\/p>\n<p><strong>The Features of the Balance Sheet Are as Follows.<\/strong><\/p>\n<ol>\n<li>It is not prepared for a complete period but<\/li>\n<\/ol>\n<p>on a specific date.<\/p>\n<ol start=\"2\">\n<li>The balance comprises both sides, assets, and<\/li>\n<\/ol>\n<p>liabilities, which must be equivalent.<\/p>\n<ol start=\"3\">\n<li>It depicts the financial situation of the<\/li>\n<\/ol>\n<p>business.<\/p>\n<ol start=\"4\">\n<li>It is a mere statement and not an account.<\/li>\n<li>It has no debit and credit option.<\/li>\n<li>Before, the names of the account &#8220;to&#8221; and &#8220;by&#8221; were not used.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"access-ncert-solutions-for-class-11-accountancy-chapter-9\"><\/span>Access NCERT Solutions For Class 11 Accountancy Chapter 9<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"1-what-are-the-objectives-of-preparing-financial-statements\"><\/span><b>1. What are the objectives of preparing financial statements?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Financial statements are prepared with the following objective:<\/b><\/p>\n<ol>\n<li><b> Determine the financial position of a business.<\/b><\/li>\n<li><b> Ascertain the financial performance of the business.<\/b><\/li>\n<li><b> To measure the changes in financial position of a business.<\/b><\/li>\n<li><b> To compare financial performance of business both intra and inter farm wise.<\/b><\/li>\n<li><b> What is the purpose of preparing trading and profit and loss account?<\/b><\/li>\n<\/ol>\n<p><b>Trading account is prepared for the following purpose:<\/b><\/p>\n<ol>\n<li><b> To determine the gross profit or loss in a financial year or period.<\/b><\/li>\n<li><b> Determine the ratio of gross profit to sales.<\/b><\/li>\n<li><b> To determine ratio of direct expense to sales.<\/b><\/li>\n<\/ol>\n<p><b>Profit and Loss account is prepared for the following purpose:<\/b><\/p>\n<ol>\n<li><b> Determining net profit or loss incurred by the business<\/b><\/li>\n<li><b> To comply with statutory requirements such as Company act or Partnership Act<\/b><\/li>\n<li><b> Explain the concept of cost of goods sold.<\/b><\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"3costs-incurred-in-production-of-goods-that-are-sold-by-company-is-known-as-cost-of-goods-sold-or-cogs\"><\/span><b>3.Costs incurred in production of goods that are sold by company is known as Cost of Goods Sold or COGS<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>No goods left out: In this case all goods are sold out. Hence, it can be calculated as:<\/b><\/p>\n<p><b>Cost of goods sold = Purchases + Direct Expenses<\/b><\/p>\n<p><b>Presence of a closing stock: There can be some stock that are yet to get sold at the end of accounting period. At that time it can be calculated as:<\/b><\/p>\n<p><b>Cost of goods sold = Purchases + Direct Expenses \u2013 Closing Stock<\/b><\/p>\n<p><b>Presence of an Opening stock: Stock that is carried forward at the beginning of the accounting period from the previous accounting period is considered as opening stock and is calculated as:<\/b><\/p>\n<p><b>Cost of goods sold = Opening Stock + Purchases + Direct Expenses \u2013 Closing Stock<\/b><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4-what-is-a-balance-sheet-what-are-its-characteristics\"><\/span><b>4. What is a balance sheet? What are its characteristics?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>A statement prepared to determine assets and values of a business on a particular date is known as Balance Sheet. Debits represent the assets while credits signify the liabilities.<\/b><\/p>\n<p><b>It has the following characteristics:<\/b><\/p>\n<ol>\n<li><b> Reflects financial position of a business.<\/b><\/li>\n<li><b> It is dependent on other statements such as trading and P &amp; L account.<\/b><\/li>\n<li><b> It is prepared at the end of an accounting period.<\/b><\/li>\n<li><b> The balance of both sides should tally.<\/b><\/li>\n<li><b> Distinguish between capital and revenue expenditure and state whether the following statements are items of capital or revenue expenditure:<\/b><\/li>\n<\/ol>\n<p><b>(a) Expenditure incurred on repairs and whitewashing at the time of purchase of an old building in order to make it usable.<\/b><\/p>\n<p><b>(b) Expenditure incurred to provide one more exit in a cinema hall in compliance with a government order.<\/b><\/p>\n<p><b>(c) Registration fees paid at the time of purchase of a building<\/b><\/p>\n<p><b>(d) Expenditure incurred in the maintenance of a tea garden which will produce tea after four years.<\/b><\/p>\n<p><b>(e) Depreciation charged on a plant.<\/b><\/p>\n<p><b>(f) The expenditure incurred in erecting a platform on which a machine will be fixed.<\/b><\/p>\n<p><b>(g) Advertising expenditure, the benefits of which will last for four years.<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Basis of Difference<\/b><\/p>\n<\/td>\n<td>\n<p><b>Capital Expenditure<\/b><\/p>\n<\/td>\n<td>\n<p><b>Revenue Expenditure<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Meaning<\/b><\/p>\n<\/td>\n<td>\n<p><b>Expenditure beared for acquiring or improving an asset.<\/b><\/p>\n<\/td>\n<td>\n<p><b>Expenses beared for running daily business activities<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Term<\/b><\/p>\n<\/td>\n<td>\n<p><b>Long Term, can span many accounting periods<\/b><\/p>\n<\/td>\n<td>\n<p><b>Short term limited to an accounting period<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Benefits<\/b><\/p>\n<\/td>\n<td>\n<p><b>Benefits can be achieved across many accounting periods<\/b><\/p>\n<\/td>\n<td>\n<p><b>Benefits can be availed only in the current year<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Nature<\/b><\/p>\n<\/td>\n<td>\n<p><b>Non-recurring<\/b><\/p>\n<\/td>\n<td>\n<p><b>Recurring<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Shown in<\/b><\/p>\n<\/td>\n<td>\n<p><b>It is shown in Income Statement and Balance Sheet<\/b><\/p>\n<\/td>\n<td>\n<p><b>It is shown in Income statement<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>\u00a0<\/b><\/p>\n<p><b>(a) Capital expenditure<\/b><\/p>\n<p><b>(b) Revenue expenditure<\/b><\/p>\n<p><b>(c) Capital expenditure<\/b><\/p>\n<p><b>(d) Capital expenditure<\/b><\/p>\n<p><b>(e) Revenue expenditure<\/b><\/p>\n<p><b>(f) Capital expenditure<\/b><\/p>\n<p><b>(g) Deferred revenue expenditure<\/b><\/p>\n<h3><span class=\"ez-toc-section\" id=\"6-what-is-an-operating-profit\"><\/span><b>6. What is an operating profit?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Operating profit referred to as EBIT, is an accounting metric that measures, the profits a company generates from its core business functions. It does not take into account interest deduction and exclusion of tax from calculation. The following equation is used to calculate the operating profit.<\/b><\/p>\n<p><b>The following equation can be used to represent<\/b><\/p>\n<p><b>Operating Profit = Net Profit + Non-Operating Expenses \u2013 Non Operating Incomes<\/b><\/p>\n<h2><span class=\"ez-toc-section\" id=\"long-answers-for-ncert-accountancy-solutions-class-11-chapter-9\"><\/span><b>Long Answers for NCERT Accountancy Solutions Class 11 Chapter 9<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1-what-are-financial-statements-what-information-do-they-provide\"><\/span><b>1. What are financial statements? What information do they provide?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Statements that contain financial information about business which can satisfy the information requirements of internal and external users are known as financial statements. It serve as a source of financial information that caters to diverse information requirement of users. It is prepared with the purpose of representing a true and fair view of business.<\/b><\/p>\n<p><b>To do so it requires the creation of three statements namely, trading and profit and loss account and balance sheet.<\/b><\/p>\n<p><b>The financial statements related to gross\/net profit or loss, the assets and liabilities. The users of information can be the following:<\/b><\/p>\n<p><b>Current Owners: These internal users would like to know the profits in the previous accounting period and current position of the assets and liabilities.<\/b><\/p>\n<p><b>Government: Government is an external user and want to know the financial position of a business so that stakeholder\u2019s rights are protected.<\/b><\/p>\n<p><b>Prospective Owner: These external users would like to know the past profits and financial position and also the future performance of the business to make an informed decision whether to invest in the business or not<\/b><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2-what-are-closing-entries-give-four-examples-of-closing-entries\"><\/span><b>2. What are closing entries? Give four examples of closing entries.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>A journal entry that is made at the end of an accounting period that transfers balances from the temporary accounts to a permanent account is known as closing entries. Some examples are here as follows:<\/b><\/p>\n<ol>\n<li><b> The purchases returns are closed by transferring the balance in purchases account. Following entries are made:<\/b><\/li>\n<\/ol>\n<p><b>Purchases return A\/c<\/b><\/p>\n<p><b>Dr<\/b><\/p>\n<p><b>To Purchases A\/c<\/b><\/p>\n<ol start=\"2\">\n<li><b> Sales return account is closed by transfer of balance to sales account. Entries will be<\/b><\/li>\n<\/ol>\n<p><b>Sales A\/c<\/b><\/p>\n<p><b>Dr<\/b><\/p>\n<p><b>To Sales return A\/c<\/b><\/p>\n<ol start=\"3\">\n<li><b> Purchases account closed by transferring to debit side of trading and P &amp; L Account<\/b><\/li>\n<\/ol>\n<p><b>Trading A\/c<\/b><\/p>\n<p><b>Dr<\/b><\/p>\n<p><b>To Purchases A\/c<\/b><\/p>\n<ol start=\"4\">\n<li><b> Sales account closed by transferring balance to credit side of trading and P &amp; L account.<\/b><\/li>\n<\/ol>\n<p><b>Sales A\/c<\/b><\/p>\n<p><b>Dr.<\/b><\/p>\n<p><b>To Trading A\/c<\/b><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3-discuss-the-need-of-preparing-a-balance-sheet\"><\/span><b>3. Discuss the need of preparing a balance sheet.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Balance sheet needs to be prepared due to following reasons:<\/b><\/p>\n<ol>\n<li><b> To show financial position of business.<\/b><\/li>\n<li><b> To show much assets and liabilities a business has<\/b><\/li>\n<li><b> It serves as information source for internal and external users<\/b><\/li>\n<li><b> It acts as a reference for balances that need to be carried forward<\/b><\/li>\n<li><b> To gather an idea about the liquidity of the firm or business<\/b><\/li>\n<li><b> Helps management in planning and controlling business operations.<\/b><\/li>\n<li><b> What is meant by Grouping and Marshalling of assets and liabilities? Explain the ways in which a balance sheet may be marshalled.<\/b><\/li>\n<\/ol>\n<p><b>Grouping refers to including assets and liabilities of similar nature under o common heading. For example different types of creditors can be placed in one heading. Similarly work in progress, raw material and finished goods can be placed.<\/b><\/p>\n<p><b>Marshalling refers to arranging of assets and liabilities in order of liquidity and permanence.<\/b><\/p>\n<p><b>In order of Liquidity: It shows how easily an asset can be converted into cash or a liability can be paid off. The asset examples arranged as follows:<\/b><\/p>\n<ol>\n<li><b> Cash<\/b><\/li>\n<li><b> Bank<\/b><\/li>\n<li><b> Debtors<\/b><\/li>\n<\/ol>\n<p><b>In order of permanence: In this system the most important asset or a liability gets the top position in balance sheet and remaining assets are arranged in reducing level of permanence: For e.g.<\/b><\/p>\n<ol>\n<li><b> Debtors<\/b><\/li>\n<li><b> Bank<\/b><\/li>\n<li><b> Cash<\/b><\/li>\n<\/ol>\n<p><b>Similarly, liabilities in order of permanence is as follows:<\/b><\/p>\n<p><b>1.Capital<\/b><\/p>\n<ol start=\"2\">\n<li><b> Long term loan<\/b><\/li>\n<li><b> Creditors<\/b><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"numerical-answers-for-ncert-accountancy-solutions-class-11-chapter-9\"><\/span><b>Numerical Answers for NCERT Accountancy Solutions Class 11 Chapter 9<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"from-the-following-balances-taken-from-the-books-of-simmi-and-vimmi-ltd\"><\/span><b> From the following balances taken from the books of Simmi and Vimmi Ltd.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>for the year ending March 31, 2017, calculate the gross profit.<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<p><b>Closing stock 2,50,000<\/b><\/p>\n<p><b>Net sales during the year 40,00,000<\/b><\/p>\n<p><b>Net purchases during the year 15,00,000<\/b><\/p>\n<p><b>Opening stock 15,00,000<\/b><\/p>\n<p><b>Direct expenses 80,000<\/b><\/p>\n<p><b>The gross profit is calculated below:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>15,00,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Net Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>40,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Net Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>15,00,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,50,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Direct Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>80,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Gross Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>11,70,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>42,50,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>42,50,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Therefore, the Gross Profit is \u20b9 11, 70,000.<\/b><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2-from-the-following-balances-extracted-from-the-books-of-ms-ahuja-and-nanda-calculate-the-amount-of\"><\/span><b>2. From the following balances extracted from the books of M\/s Ahuja and Nanda. Calculate the amount of:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>(a) Cost of goods available for sale<\/b><\/p>\n<p><b>(b) Cost of goods sold during the year<\/b><\/p>\n<p><b>(c) Gross Profit<\/b><\/p>\n<p><b>\u00a0<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<p><b>Opening stock 25,000<\/b><\/p>\n<p><b>Credit purchases 7,50,000<\/b><\/p>\n<p><b>Cash purchases 3,00,000<\/b><\/p>\n<p><b>Credit sales 12,00,000<\/b><\/p>\n<p><b>Cash sales 4,00,000<\/b><\/p>\n<p><b>Wages 1,00,000<\/b><\/p>\n<p><b>Salaries 1,40,000<\/b><\/p>\n<p><b>Closing stock 30,000<\/b><\/p>\n<p><b>Sales return 50,000<\/b><\/p>\n<p><b>Purchases return 10,000<\/b><\/p>\n<ol>\n<li><b>a) Cost of Goods Sold Available for Sales<\/b><\/li>\n<\/ol>\n<p><b>Or<\/b><\/p>\n<p><b>Cost of Goods Manufactured = Opening Stock + Net Purchases + Wages<\/b><\/p>\n<p><b>= 25,000 + 10, 40,000 + 1, 00,000<\/b><\/p>\n<p><b>= \u20b9 11, 65,000<\/b><\/p>\n<p><b>(b) Cost of Goods Sold = Opening Stock + Net Purchases + Wages \u2013 Closing Stock<\/b><\/p>\n<p><b>= 25,000 + 10, 40,000 + 1, 00,000 \u2013 30,000<\/b><\/p>\n<p><b>= \u20b9 11, 35,000<\/b><\/p>\n<p><b>Or<\/b><\/p>\n<p><b>Cost of Goods Sold = Net Sales \u2013 Gross Profit<\/b><\/p>\n<p><b>= 15, 50,000 \u2013 4, 15,000<\/b><\/p>\n<p><b>= \u20b9 11, 35,000<\/b><\/p>\n<p><b>(c)<\/b><\/p>\n<table style=\"width: 100%;height: 1146px\">\n<tbody>\n<tr style=\"height: 71px\">\n<td style=\"height: 71px\" colspan=\"8\">\n<p><b>Trading Account<\/b><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 71px\">\n<td style=\"height: 71px\" colspan=\"2\">\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\" colspan=\"4\">\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 124px\">\n<td style=\"height: 124px\" colspan=\"3\">\n<p><b>Particulars\u00a0<\/b><\/p>\n<\/td>\n<td style=\"height: 124px\">\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td style=\"height: 124px\" colspan=\"3\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td style=\"height: 124px\">\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 71px\">\n<td style=\"height: 71px\" colspan=\"3\">\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>25,000<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\" colspan=\"3\">\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 105px\">\n<td style=\"height: 105px\" colspan=\"3\">\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p><b><i>Add<\/i><\/b><b>: Credit Sales<\/b><\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p><b>12,00,000<\/b><\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 105px\">\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p><b><i>Add<\/i><\/b><b>: Credit Purchases<\/b><\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p><b>7,50,000<\/b><\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p><b><i>Add<\/i><\/b><b>: Cash Sales<\/b><\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p><b>4,00,000<\/b><\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 105px\">\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p><b><i>Add<\/i><\/b><b>: Cash Purchases<\/b><\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p><b>3,00,000<\/b><\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p><b>16,00,000<\/b><\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 105px\">\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p><b>10,50,000<\/b><\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p><b><i>Less<\/i><\/b><b>: Sales Return<\/b><\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p><b>(50,000)<\/b><\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p><b>15,50,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 105px\">\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p><b><i>Less<\/i><\/b><b>: Purchases Return<\/b><\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p><b>(10,000)<\/b><\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p><b>10,40,000<\/b><\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 105px\">\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 71px\">\n<td style=\"height: 71px\" colspan=\"2\">\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>1,00,000<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>30,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 71px\">\n<td style=\"height: 71px\" colspan=\"2\">\n<p><b>Gross Profit<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>4,15,000<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 71px\">\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>15,80,000<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>15,80,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 71px\">\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"3-calculate-the-amount-of-gross-profit-and-operating-profit-on-the-basis-of-the-following-balances-extracted-from-the-books-of-ms-rajiv-and-sons-for-the-year-ended-march-31-2017\"><\/span><b>3. Calculate the amount of gross profit and operating profit on the basis of the following balances extracted from the books of M\/s Rajiv and Sons for the year ended March 31, 2017.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>\u20b9<\/b><\/p>\n<p><b>Opening stock 50,000<\/b><\/p>\n<p><b>Net sales 11,00,000<\/b><\/p>\n<p><b>Net purchases 6,00,000<\/b><\/p>\n<p><b>Direct expenses 60,000<\/b><\/p>\n<p><b>Administration expenses 45,000<\/b><\/p>\n<p><b>Selling and distribution expenses 65,000<\/b><\/p>\n<p><b>Loss due to fire 20,000<\/b><\/p>\n<p><b>Closing stock 70,000<\/b><\/p>\n<p><b>The solution is as follows:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>50,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Net Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>11,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Net Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,00,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>70,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Direct Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>60,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Gross Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,60,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>11,70,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>11,70,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Operating Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>=<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales \u2013 (Opening Stock + Net Purchases + Direct Expenses + Administration Expenses +<\/b><\/p>\n<p><b>Selling and Distribution Expenses) + Closing Stock<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>=<\/b><\/p>\n<\/td>\n<td>\n<p><b>11,00,000 \u2013 (50,000 + 6,00,000 + 60,000 + 45,000 + 65,000) + 70,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>=<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u20b9 3,50,000<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ol start=\"4\">\n<li><b> Operating profit earned by M\/s Arora and Sachdeva in 2016-17 was \u20b9 17, 00,000. Its non-operating incomes were \u20b9 1, 50,000 and non-operating expenses were \u20b9 3, 75,000. Calculate the amount of net profit earned by the firm.<\/b><\/li>\n<\/ol>\n<p><b>\u00a0<\/b><\/p>\n<p><b>Net Profit = Operating Profit + Non-operating Income \u2013 Non-operating Expenses<\/b><\/p>\n<p><b>= 17, 00,000 + 1, 50,000 \u2013 3, 75,000<\/b><\/p>\n<p><b>= \u20b9 14, 75,000<\/b><\/p>\n<p><b>Net profit earned by M\/S Arora and Sachdeva in 2016\u201317 is \u20b9 14, 75,000<\/b><\/p>\n<ol start=\"5\">\n<li><b> The following are the extracts from the trial balance of M\/s Bhola and Sons as on March 31, 2017<\/b><\/li>\n<\/ol>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debit<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Credit<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,00,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>\u00a0<\/b><\/p>\n<p><b>(Only relevant items)<\/b><\/p>\n<p><b>Closing Stock as on date was valued at \u20b9 3, 00,000.<\/b><\/p>\n<p><b>You are required to record the necessary journal entries and show how the above items will appear in the trading and profit and loss account and balance sheet of M\/s Bhola and Sons.<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"7\">\n<p><b>Books of M\/s Bhola and Sons<\/b><\/p>\n<p><b>Journal<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Date<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>L.F.<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debit<\/b><\/p>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Credit Amount \u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>2017<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Mar.31<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Trading A\/c<\/b><\/p>\n<\/td>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>10,10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>To Opening Stock A\/c<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>2,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>To Purchases A\/c<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>8,10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>(Balances from Purchases Account and Stock Account<\/b><\/p>\n<p><b>transferred to Trading Account)<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Mar.31<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Sales A\/c<\/b><\/p>\n<\/td>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>10,10,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Closing Stock A\/c<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>3,00,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>To Trading A\/c<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>13,10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>(Balance from sales and closing stock transferred<\/b><\/p>\n<p><b>to Trading Account)<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Mar.31<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Trading A\/c<\/b><\/p>\n<\/td>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>3,00,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>To Profit and Loss (Gross Profit) A\/c<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>3,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>(Balance of Trading Account (gross profit) transferred<\/b><\/p>\n<p><b>to Profit and Loss Account)<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,00,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Profit and Loss A\/c \u2013 Gross Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,00,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>13,10,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>13,10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Balance Sheet as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"6-prepare-trading-and-profit-and-loss-account-and-balance-sheet-as-on-march-31-2017\"><\/span><b>6. Prepare trading and profit and loss account and balance sheet, as on March 31, 2017:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account Title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Account Title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>27,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>60,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sundry debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>21,600<\/b><\/p>\n<\/td>\n<td>\n<p><b>Bills payable<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,800<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,700<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sundry creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>58,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>73,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>15,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sundry expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent and taxes<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,350<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>450<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bank<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Openings stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>\u00a0<\/b><\/p>\n<p><b>Closing stock, as on March 31, 2017 \u20b9 22,400<\/b><\/p>\n<p><b>Trading and profit and loss account and balance sheet is prepared as follows:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>73,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>58,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>22,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>15,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage Inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>450<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Profit and Loss (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>15,950<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>95,900<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>95,900<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"5\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sundry Expenses<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\n<p><b>Trading (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>15,950<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent and Taxes<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>1,350<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Net Profit<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>14,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>15,950<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>15,950<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"6\">\n<p><b>Balance Sheet as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>60,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Fixed Assets\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b><i>Add<\/i><\/b><b>: Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>14,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>27,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>74,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,700<\/b><\/p>\n<\/td>\n<td>\n<p><b>71,300<\/b><\/p>\n<\/td>\n<td>\n<p><b>Current Assets\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Bank<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Sundry Creditors<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,400<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>22,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Bills Payable<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>2,800<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sundry Debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>21,600<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>75,500<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>75,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"7the-following-trial-balance-is-extracted-from-the-books-of-ms-ram-on-march-31-2017-you-are-required-to-prepare-trading-and-profit-and-loss-account-and-the-balance-sheet-as-on-date\"><\/span><b>7.The following trial balance is extracted from the books of M\/s Ram on March 31, 2017. You are required to prepare trading and profit and loss account and the balance sheet as on date:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>\u00a0<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Account title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount \u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>12,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Apprenticeship premium<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>50,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Loan<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Coal, gas and water<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Bank overdraft<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Factory wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>11,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>80,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>9,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>13,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>20,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Discount<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Advertisement<\/b><\/p>\n<\/td>\n<td>\n<p><b>500<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Loan<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Petty cash<\/b><\/p>\n<\/td>\n<td>\n<p><b>500<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sales return<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Land and building<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Income tax<\/b><\/p>\n<\/td>\n<td>\n<p><b>100<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\n<p><b>9,900<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Trading and profit and loss account and balance sheet is prepared as follows:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"10\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b> Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>50,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>80,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Coal, Gas and Water<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Sales Return<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>79,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Factory Wages<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>11,000<\/b><\/p>\n<\/td>\n<td colspan=\"3\" rowspan=\"4\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\">\n<p><b>Profit and Loss (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>12,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>79,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>79,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>9,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Trading (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>12,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Apprenticeship Premium<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Discount<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Advertisement<\/b><\/p>\n<\/td>\n<td>\n<p><b>500<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>500<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>17,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>17,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"8\">\n<p><b>Balance Sheet as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>20,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b><i>Add<\/i><\/b><b>: Profit and Loss (Net Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>500<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Land and Building<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>20,500<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>9,900<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>(1,000)<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Loan (Given)<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Income Tax<\/b><\/p>\n<\/td>\n<td>\n<p><b>(100)<\/b><\/p>\n<\/td>\n<td>\n<p><b>19,400<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>12,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Petty Cash<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Loan (Taken)<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>13,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Bank Overdraft<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>43,400<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>43,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"8-the-following-is-the-trial-balance-of-manju-chawla-on-march-31-2017-you-are-required-to-prepare-trading-and-profit-and-loss-account-and-a-balance-sheet-as-on-date\"><\/span><b>8. The following is the trial balance of Manju Chawla on March 31, 2017. You are required to prepare trading and profit and loss account and a balance sheet as on date:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debit Amount \u20b9<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Credit Amount \u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases and sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>40,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>80,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Returns<\/b><\/p>\n<\/td>\n<td>\n<p><b>200<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Productive wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dock and Clearing charges<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Donation and charity<\/b><\/p>\n<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Delivery van expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Lighting<\/b><\/p>\n<\/td>\n<td>\n<p><b>500<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sales tax collected<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Misc. incomes<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent from tenants<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>2,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Royalty<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>40,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Debtors and Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Cash<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Investment<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Patents<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Land and Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>43,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>\u00a0<\/b><\/p>\n<p><b>Closing stock \u20b9 2,000.<\/b><\/p>\n<p><b>Trading and profit and loss account and balance sheet is prepared as follows:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"8\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>80,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>40,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Sales Returns<\/b><\/p>\n<\/td>\n<td>\n<p><b>(200)<\/b><\/p>\n<\/td>\n<td>\n<p><b>79,800<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Purchases Returns<\/b><\/p>\n<\/td>\n<td>\n<p><b>(600)<\/b><\/p>\n<\/td>\n<td>\n<p><b>39,400<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Productive Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Dock and Clearing Charges<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Royalty<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Profit and Loss (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>18,400<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>81,800<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>81,800<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Donation and Charity<\/b><\/p>\n<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\n<p><b>Trading (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>18,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Delivery Van Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Misc. Incomes<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Lighting<\/b><\/p>\n<\/td>\n<td>\n<p><b>500<\/b><\/p>\n<\/td>\n<td>\n<p><b>Rent from Tenants<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad Debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>18,700<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>26,400<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>26,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"10\">\n<p><b>Balance Sheet as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>40,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Patents<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b><i>Add<\/i><\/b><b>: Profit and Loss (Net Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>18,700<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Land and Machinery<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>43,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>58,700<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Investment<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b><i>Less<\/i><\/b><b>: Drawings<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>(2,000)<\/b><\/p>\n<\/td>\n<td>\n<p><b>56,700<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>6,700<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Cash<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>3,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Sales Tax Collected<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>2,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>64,700<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>64,700<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"9-the-following-is-the-trial-balance-of-mr-deepak-as-on-march-31-2017-you-are-required-to-prepare-trading-account-profit-and-loss-account-and-a-balance-sheet-as-on-date\"><\/span><b>9. The following is the Trial Balance of Mr. Deepak as on March 31, 2017. You are required to prepare trading account, profit and loss account and a balance sheet as on date:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>\u00a0<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debit Amount \u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Account title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Credit Amount \u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>36,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,50,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Insurance<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Bills payable<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,600<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>General expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>29,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>50,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent and taxes<\/b><\/p>\n<\/td>\n<td>\n<p><b>14,400<\/b><\/p>\n<\/td>\n<td>\n<p><b>Discount received<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Lighting (factory)<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,800<\/b><\/p>\n<\/td>\n<td>\n<p><b>Purchases return<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Travelling expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,400<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,40,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Cash in hand<\/b><\/p>\n<\/td>\n<td>\n<p><b>12,600<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bills receivable<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sundry debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,04,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\n<p><b>16,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Plant and Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,80,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>40,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,60,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sales return<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,200<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage outwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,600<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>84,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>53,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>\u00a0<\/b><\/p>\n<p><b>Closing stock \u20b9 35,000.<\/b><\/p>\n<p><b>The trading account, profit and loss account and a balance sheet are prepared below:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"9\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>40,000<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,40,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,60,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Sales Return<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,34,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Purchases Return<\/b><\/p>\n<\/td>\n<td>\n<p><b>(8,000)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,52,000<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>35,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"4\" rowspan=\"7\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Lighting (Factory)<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>2,800<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Carriage Inwards<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>7,200<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>84,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Profit and Loss (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,83,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\" rowspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>4,69,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,69,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"9\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\">\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Insurance<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>3,000<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Trading (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,83,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>General Expenses<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>29,000<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Discount Received<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>10,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Rent and Taxes<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>14,400<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Travelling Expenses<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>7,400<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Carriage Outwards<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,600<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>53,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>85,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,93,400<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,93,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"6\">\n<p><b>Balance Sheet as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,50,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Plant and Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,80,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b><i>Add<\/i><\/b><b>: Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>85,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\n<p><b>16,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>3,35,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Sundry Debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,04,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>(36,000)<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,99,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>35,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Bills Receivable<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>50,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Cash in Hand<\/b><\/p>\n<\/td>\n<td>\n<p><b>12,600<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Bills Payable<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,600<\/b><\/p>\n<\/td>\n<td rowspan=\"4\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\" rowspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>3,52,600<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,52,600<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"10-prepare-trading-and-profit-and-loss-account-and-balance-sheet-from-the-following-particulars-as-on-march-31-2017\"><\/span><b>10. Prepare trading and profit and loss account and balance sheet from the following particulars as on March 31, 2017.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>\u00a0<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account Title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debit Amount \u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Credit Amount \u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases and Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,52,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,60,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Return inwards and Return outwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>9,600<\/b><\/p>\n<\/td>\n<td>\n<p><b>12,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage outwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,360<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Fuel and power<\/b><\/p>\n<\/td>\n<td>\n<p><b>24,800<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>57,600<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>9,950<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Debtors and Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,31,200<\/b><\/p>\n<\/td>\n<td>\n<p><b>48,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,48,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Investment<\/b><\/p>\n<\/td>\n<td>\n<p><b>32,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Interest on investment<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,200<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Loan<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>16,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Repairs<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,400<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>General expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>17,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages and salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>28,800<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Land and buildings<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,88,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Cash in hand<\/b><\/p>\n<\/td>\n<td>\n<p><b>32,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Miscellaneous receipts<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>160<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sales tax collected<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,350<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>\u00a0<\/b><\/p>\n<p><b>Closing stock \u20b9 30,000.<\/b><\/p>\n<p><b>Trading and profit and loss account and balance sheet for the question is posted below:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"14\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>57,600<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>5,60,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>3,52,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b><i>Less<\/i><\/b><b>: Return Inwards<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>(9,600)<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>5,50,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b><i>Less<\/i><\/b><b>: Return Outwards<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>(12,000)<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,40,000<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>30,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"6\">\n<p><b>Carriage Inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\">\n<p><b>Fuel and Power<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>24,800<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\">\n<p><b>Wages and Salaries<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>28,800<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\">\n<p><b>Profit and Loss (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,22,200<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"6\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>5,80,400<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>5,80,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage Outwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,360<\/b><\/p>\n<\/td>\n<td>\n<p><b>Trading (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,22,200<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad Debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>9,950<\/b><\/p>\n<\/td>\n<td>\n<p><b>Interest on Investment<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,200<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Repairs<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,400<\/b><\/p>\n<\/td>\n<td>\n<p><b>Miscellaneous Receipts<\/b><\/p>\n<\/td>\n<td>\n<p><b>160<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>General Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>17,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>92,850<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,25,560<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,25,560<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table style=\"width: 100%;height: 834px\">\n<tbody>\n<tr style=\"height: 71px\">\n<td style=\"height: 71px\" colspan=\"8\">\n<p><b>Balance Sheet as on March 31,2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 124px\">\n<td style=\"height: 124px\" colspan=\"3\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td style=\"height: 124px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 124px\">\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td style=\"height: 124px\">\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td style=\"height: 124px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 124px\">\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 71px\">\n<td style=\"height: 71px\" colspan=\"3\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>3,48,000<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>Land and Building<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>2,88,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 71px\">\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\" colspan=\"2\">\n<p><b><i>Add<\/i><\/b><b>: Net Profit<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>92,850<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>4,40,850<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>Investment<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>32,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 71px\">\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\" colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>1,31,200<\/b><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 71px\">\n<td style=\"height: 71px\" colspan=\"3\">\n<p><b>Loan<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>16,000<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>30,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 71px\">\n<td style=\"height: 71px\" colspan=\"3\">\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>48,000<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\" colspan=\"2\">\n<p><b>Cash in Hand<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>32,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 71px\">\n<td style=\"height: 71px\" colspan=\"3\">\n<p><b>Sales Tax Collected<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>8,350<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\" colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 71px\">\n<td style=\"height: 71px\" colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>5,13,200<\/b><\/p>\n<\/td>\n<td style=\"height: 71px\" colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p><b>5,13,200<\/b><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 71px\">\n<td style=\"height: 71px\" colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\" colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 71px\">\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<td style=\"height: 71px\">\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"11-from-the-following-trial-balance-of-mr-a-lal-prepare-trading-profit-and-loss-account-and-balance-sheet-as-on-march-31-2017\"><\/span><b style=\"font-size: inherit;background-color: initial\">11. From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b><br \/>\u00a0<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account Title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debit Amount \u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Credit Amount \u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Stock as on April 01, 2016<\/b><\/p>\n<\/td>\n<td>\n<p><b>16,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases and Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>67,600<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,12,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Returns inwards and outwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,600<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,200<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,400<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>General expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,400<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Discount received<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bank over draft<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Interest on bank overdraft<\/b><\/p>\n<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Commission received<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,800<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Insurance and taxes<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Scooter expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>200<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,800<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Cash in hand<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Scooter<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,200<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Building<\/b><\/p>\n<\/td>\n<td>\n<p><b>65,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Debtors and Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>16,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>50,000<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Closing stock \u20b9 15,000.<\/b><\/p>\n<p><b>\u00a0<\/b><\/p>\n<p><b>Trading and profit and loss account and balance sheet for the question is posted below:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"12\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>16,000<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,12,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>67,600<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b><i>Less<\/i><\/b><b>: Sales Return Inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>(4,600)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,07,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b><i>Less<\/i><\/b><b>: Return Outwards<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>(3,200)<\/b><\/p>\n<\/td>\n<td>\n<p><b>64,400<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>15,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"6\">\n<p><b>Carriage Inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,400<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\">\n<p><b>Profit and Loss (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>40,600<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"6\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,22,400<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,22,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>General Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,400<\/b><\/p>\n<\/td>\n<td>\n<p><b>Trading (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>40,600<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad Debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\n<p><b>Discount Received<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Interest on Bank Overdraft<\/b><\/p>\n<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\n<p><b>Commission Received<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,800<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Insurance and Taxes<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Scooter Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>200<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,800<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>27,200<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>43,800<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>43,800<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"8\">\n<p><b>Balance Sheet as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>50,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Building<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>65,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b><i>Add<\/i><\/b><b>: Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>27,200<\/b><\/p>\n<\/td>\n<td>\n<p><b>77,200<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>5,200<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Scooter<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>16,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Bank Overdraft<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>15,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Cash in Hand<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,03,200<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,03,200<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"12-prepare-trading-and-profit-and-loss-account-and-balance-sheet-of-ms-royal-traders-from-the-following-balances-as-on-march-31-2017\"><\/span><b>12. Prepare trading and profit and loss account and balance sheet of M\/s Royal Traders from the following balances as on March 31, 2017.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>\u00a0<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Debit balances<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount \u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Credit balances<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount \u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>20,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,45,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Cash<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bank<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Bills payable<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage on purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,90,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>9,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>55,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,00,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>27,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Postage<\/b><\/p>\n<\/td>\n<td>\n<p><b>300<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sundry expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,700<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\n<p><b>35,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>\u00a0<\/b><\/p>\n<p><b>Closing stock \u20b9 8,000.<\/b><\/p>\n<p><b>Trading and profit and loss account and balance sheet is prepared below:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>20,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,45,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,90,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage on Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>Profit and Loss (Gross Loss)<\/b><\/p>\n<\/td>\n<td>\n<p><b>13,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>55,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>2,66,500<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>2,66,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Trading (Gross Loss)<\/b><\/p>\n<\/td>\n<td>\n<p><b>13,500<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Postage<\/b><\/p>\n<\/td>\n<td>\n<p><b>300<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sundry Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,700<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>Net Loss<\/b><\/p>\n<\/td>\n<td>\n<p><b>20,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>20,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>20,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"8\">\n<p><b>Balance Sheet of M\/s Royal Traders as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,00,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Net Loss<\/b><\/p>\n<\/td>\n<td>\n<p><b>(20,000)<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>35,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>(9,000)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,71,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>27,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Bank<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Bills Payable<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Cash<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,85,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,85,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"13-prepare-trading-and-profit-and-loss-account-from-the-following-particulars-of-ms-neema-traders-as-on-march-31-2017\"><\/span><b>13. Prepare trading and profit and loss account from the following particulars of M\/s Neema Traders as on March 31, 2017.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account Title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debit Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Account Title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Credit Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Buildings<\/b><\/p>\n<\/td>\n<td>\n<p><b>23,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,80,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Plant<\/b><\/p>\n<\/td>\n<td>\n<p><b>16,930<\/b><\/p>\n<\/td>\n<td>\n<p><b>Loan<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Bills payable<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,520<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,300<\/b><\/p>\n<\/td>\n<td>\n<p><b>Bank overdraft<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,720<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,64,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sales return<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,820<\/b><\/p>\n<\/td>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,36,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>9,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Purchases return<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,910<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,10,940<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Insurance<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,610<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Interest<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,100<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>250<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Postage<\/b><\/p>\n<\/td>\n<td>\n<p><b>300<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Discount<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,900<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b> Stock on March 31, 2017 \u20b9 16,000.<\/b><\/p>\n<p><b>Trading and profit and loss account and balance sheet is prepared below:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"12\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"6\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>9,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>1,80,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>1,64,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Sales Return<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>(1,820)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,78,180<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b><i>Less<\/i><\/b><b>: Purchases Return<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>(1,910)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,62,090<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>16,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Carriage Inwards<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>3,300<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"6\">\n<p><b>Profit and Loss (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>18,790<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,94,180<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,94,180<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Insurance<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,610<\/b><\/p>\n<\/td>\n<td>\n<p><b>Trading (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>18,790<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Interest<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,100<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad Debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>250<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Postage<\/b><\/p>\n<\/td>\n<td>\n<p><b>300<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Discount<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>11,530<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>18,790<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>18,790<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"7\">\n<p><b>Balance Sheet as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,36,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Building<\/b><\/p>\n<\/td>\n<td>\n<p><b>23,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b><i>Add<\/i><\/b><b>: Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>11,530<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,47,530<\/b><\/p>\n<\/td>\n<td>\n<p><b>Plant<\/b><\/p>\n<\/td>\n<td>\n<p><b>16,930<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,10,940<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Loan<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,900<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>16,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Bills Payable<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>2,520<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Bank Overdraft<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>4,720<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>2,70,770<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>2,70,770<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"14-from-the-following-balances-of-ms-nilu-sarees-as-on-march-31-2017-prepare-trading-and-profit-and-loss-account-and-balance-sheet-as-on-date\"><\/span><b>14. From the following balances of M\/s Nilu Sarees as on March 31, 2017. Prepare trading and profit and loss account and balance sheet as on date.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>\u00a0<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account Title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debit Amount \u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Account Title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Credit Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,28,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>78,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>70,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>Interest<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>30,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Commission<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Commission<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>28,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>11,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Bills payable<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,370<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent and taxes<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,800<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Repairs<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Telephone expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,400<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Legal charges<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sundry expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>cash in hand<\/b><\/p>\n<\/td>\n<td>\n<p><b>12,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>30,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>60,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Investments<\/b><\/p>\n<\/td>\n<td>\n<p><b>90,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>18,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>\u00a0<\/b><\/p>\n<p><b>Closing stock, as on March 31, 2017 \u20b9 22,000.<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Trading Account of M\/s Nilu Sarees as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,28,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>78,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>22,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage Inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,500<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>11,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Profit and Loss (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,48,500<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>2,50,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>2,50,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>30,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Trading (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,48,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Commission<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Interest<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent and Taxes<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,800<\/b><\/p>\n<\/td>\n<td>\n<p><b>Commission<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Repairs<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Telephone Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,400<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Legal Charges<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,500<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sundry Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,500<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,10,300<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,63,500<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,63,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"8\">\n<p><b>Balance Sheet as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>70,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>60,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b><i>Add<\/i><\/b><b>: Net Profit<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>1,10,300<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Investments<\/b><\/p>\n<\/td>\n<td>\n<p><b>90,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>1,80,300<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>30,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Drawings<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>(18,000)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,62,300<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>22,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Cash in Hand<\/b><\/p>\n<\/td>\n<td>\n<p><b>12,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>28,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Bills Payable<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>2,370<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Suspense<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>21,330<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>2,14,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>2,14,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"3\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"15-prepare-trading-and-profit-and-loss-account-of-ms-sports-equipments-for-the-year-ended-march-31-2017-and-balance-sheet-as-on-that-date\"><\/span><b>15. Prepare trading and profit and loss account of M\/s Sports Equipments for the year ended March 31, 2017 and balance sheet as on that date:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account Title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debit Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Credit Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>50,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases and sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,50,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,21,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sales returns<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Commission<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bank overdraft<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>28,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Cash in hand<\/b><\/p>\n<\/td>\n<td>\n<p><b>32,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,28,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,40,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Plants<\/b><\/p>\n<\/td>\n<td>\n<p><b>60,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage on purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>12,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent<\/b><\/p>\n<\/td>\n<td>\n<p><b>15,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>24,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Stationery<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Travelling expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Insurance<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Discount<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Office expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>\u00a0<\/b><\/p>\n<p><b>Closing stock as on March 31, 2017 \u20b9 2,500<\/b><\/p>\n<p><b>Trading and profit and loss account and balance sheet is prepared below:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"9\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"5\">\n<p><b> Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>50,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>4,21,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>3,50,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b><i>Less<\/i><\/b><b>: Sales Return<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,16,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage on Purchases<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>12,000<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b>Profit and Loss (Gross Loss)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>4,20,000<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>4,20,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"4\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Trading (Gross Loss)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>Commission<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent<\/b><\/p>\n<\/td>\n<td>\n<p><b>15,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Net Loss<\/b><\/p>\n<\/td>\n<td>\n<p><b>41,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad Debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Stationery<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Travelling Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Insurance<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Discount<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Office Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>45,500<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>45,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"9\">\n<p><b>Balance Sheet as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,00,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Plants<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>60,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b><i>Less<\/i><\/b><b>: Net Loss<\/b><\/p>\n<\/td>\n<td>\n<p><b>(41,500)<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,28,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b><i>Less<\/i><\/b><b>: Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>(24,000)<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,34,500<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,40,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>2,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>1,00,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Cash in Hand<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>32,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Bank Overdraft<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>28,000<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>3,62,500<\/b><\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p><b>3,62,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<td>\n<p>\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"16the-objectives-of-preparing-financial-statements\"><\/span><b>16.The objectives of preparing financial statements?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Financial statements are prepared with the following objective:<\/b><\/p>\n<ol>\n<li><b> Determine the financial position of a business.<\/b><\/li>\n<li><b> Ascertain the financial performance of the business.<\/b><\/li>\n<li><b> To measure the changes in financial position of a business.<\/b><\/li>\n<li><b> To compare financial performance of business both intra and inter farm wise.<\/b><\/li>\n<li><b> What is the purpose of preparing trading and profit and loss account?<\/b><\/li>\n<\/ol>\n<p><b>Trading account is prepared for the following purpose:<\/b><\/p>\n<ol>\n<li><b> To determine the gross profit or loss in a financial year or period.<\/b><\/li>\n<li><b> Determine the ratio of gross profit to sales.<\/b><\/li>\n<li><b> To determine ratio of direct expense to sales.<\/b><\/li>\n<\/ol>\n<p><b>Profit and Loss account is prepared for the following purpose:<\/b><\/p>\n<ol>\n<li><b> Determining net profit or loss incurred by the business<\/b><\/li>\n<li><b> To comply with statutory requirements such as Company act or Partnership Act<\/b><\/li>\n<li><b> Explain the concept of cost of goods sold.<\/b><\/li>\n<\/ol>\n<p><b>Costs incurred in production of goods that are sold by company is known as Cost of Goods Sold or COGS<\/b><\/p>\n<p><b>No goods left out: In this case all goods are sold out. Hence, it can be calculated as:<\/b><\/p>\n<p><b>Cost of goods sold = Purchases + Direct Expenses<\/b><\/p>\n<p><b>Presence of a closing stock: There can be some stock that are yet to get sold at the end of accounting period. At that time it can be calculated as:<\/b><\/p>\n<p><b>Cost of goods sold = Purchases + Direct Expenses \u2013 Closing Stock<\/b><\/p>\n<p><b>Presence of an Opening stock: Stock that is carried forward at the beginning of the accounting period from the previous accounting period is considered as opening stock and is calculated as:<\/b><\/p>\n<p><b>Cost of goods sold = Opening Stock + Purchases + Direct Expenses \u2013 Closing Stock<\/b><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4-what-is-a-balance-sheet-what-are-its-characteristics-2\"><\/span><b>4. What is a balance sheet? What are its characteristics?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>A statement prepared to determine assets and values of a business on a particular date is known as Balance Sheet. Debits represent the assets while credits signify the liabilities.<\/b><\/p>\n<p><b>It has the following characteristics:<\/b><\/p>\n<ol>\n<li><b> Reflects financial position of a business.<\/b><\/li>\n<li><b> It is dependent on other statements such as trading and P &amp; L account.<\/b><\/li>\n<li><b> It is prepared at the end of an accounting period.<\/b><\/li>\n<li><b> The balance of both sides should tally.<\/b><\/li>\n<li><b> Distinguish between capital and revenue expenditure and state whether the following statements are items of capital or revenue expenditure:<\/b><\/li>\n<\/ol>\n<p><b>(a) Expenditure incurred on repairs and whitewashing at the time of purchase of an old building in order to make it usable.<\/b><\/p>\n<p><b>(b) Expenditure incurred to provide one more exit in a cinema hall in compliance with a government order.<\/b><\/p>\n<p><b>(c) Registration fees paid at the time of purchase of a building<\/b><\/p>\n<p><b>(d) Expenditure incurred in the maintenance of a tea garden which will produce tea after four years.<\/b><\/p>\n<p><b>(e) Depreciation charged on a plant.<\/b><\/p>\n<p><b>(f) The expenditure incurred in erecting a platform on which a machine will be fixed.<\/b><\/p>\n<p><b>(g) Advertising expenditure, the benefits of which will last for four years.<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Basis of Difference<\/b><\/p>\n<\/td>\n<td>\n<p><b>Capital Expenditure<\/b><\/p>\n<\/td>\n<td>\n<p><b>Revenue Expenditure<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Meaning<\/b><\/p>\n<\/td>\n<td>\n<p><b>Expenditure beared for acquiring or improving an asset.<\/b><\/p>\n<\/td>\n<td>\n<p><b>Expenses beared for running daily business activities<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Term<\/b><\/p>\n<\/td>\n<td>\n<p><b>Long Term, can span many accounting periods<\/b><\/p>\n<\/td>\n<td>\n<p><b>Short term limited to an accounting period<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Benefits<\/b><\/p>\n<\/td>\n<td>\n<p><b>Benefits can be achieved across many accounting periods<\/b><\/p>\n<\/td>\n<td>\n<p><b>Benefits can be availed only in the current year<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Nature<\/b><\/p>\n<\/td>\n<td>\n<p><b>Non-recurring<\/b><\/p>\n<\/td>\n<td>\n<p><b>Recurring<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Shown in<\/b><\/p>\n<\/td>\n<td>\n<p><b>It is shown in Income Statement and Balance Sheet<\/b><\/p>\n<\/td>\n<td>\n<p><b>It is shown in Income statement<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>\u00a0<\/b><\/p>\n<p><b>(a) Capital expenditure<\/b><\/p>\n<p><b>(b) Revenue expenditure<\/b><\/p>\n<p><b>(c) Capital expenditure<\/b><\/p>\n<p><b>(d) Capital expenditure<\/b><\/p>\n<p><b>(e) Revenue expenditure<\/b><\/p>\n<p><b>(f) Capital expenditure<\/b><\/p>\n<p><b>(g) Deferred revenue expenditure<\/b><\/p>\n<h3><span class=\"ez-toc-section\" id=\"5-what-is-an-operating-profit\"><\/span><b>5. What is an operating profit?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Operating profit referred to as EBIT, is an accounting metric that measures, the profits a company generates from its core business functions. It does not take into account interest deduction and exclusion of tax from calculation. The following equation is used to calculate the operating profit.<\/b><\/p>\n<p><b>The following equation can be used to represent<\/b><\/p>\n<p><b>Operating Profit = Net Profit + Non-Operating Expenses \u2013 Non Operating Incomes<\/b><\/p>\n<h2><span class=\"ez-toc-section\" id=\"long-answers-for-ncert-accountancy-solutions-class-11-chapter-9-2\"><\/span><b>Long Answers for NCERT Accountancy Solutions Class 11 Chapter 9<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1-what-are-financial-statements-what-information-do-they-provide-2\"><\/span><b>1. What are financial statements? What information do they provide?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Statements that contain financial information about business which can satisfy the information requirements of internal and external users are known as financial statements. It serve as a source of financial information that caters to diverse information requirement of users. It is prepared with the purpose of representing a true and fair view of business.<\/b><\/p>\n<p><b>To do so it requires the creation of three statements namely, trading and profit and loss account and balance sheet.<\/b><\/p>\n<p><b>The financial statements related to gross\/net profit or loss, the assets and liabilities. The users of information can be the following:<\/b><\/p>\n<p><b>Current Owners: These internal users would like to know the profits in the previous accounting period and current position of the assets and liabilities.<\/b><\/p>\n<p><b>Government: Government is an external user and want to know the financial position of a business so that stakeholder\u2019s rights are protected.<\/b><\/p>\n<p><b>Prospective Owner: These external users would like to know the past profits and financial position and also the future performance of the business to make an informed decision whether to invest in the business or not<\/b><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2-what-are-closing-entries-give-four-examples-of-closing-entries-2\"><\/span><b>2. What are closing entries? Give four examples of closing entries.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>A journal entry that is made at the end of an accounting period that transfers balances from the temporary accounts to a permanent account is known as closing entries. Some examples are here as follows:<\/b><\/p>\n<ol>\n<li><b> The purchases returns are closed by transferring the balance in purchases account. Following entries are made:<\/b><\/li>\n<\/ol>\n<p><b>Purchases return A\/c<\/b><\/p>\n<p><b>Dr<\/b><\/p>\n<p><b>To Purchases A\/c<\/b><\/p>\n<ol start=\"2\">\n<li><b> Sales return account is closed by transfer of balance to sales account. Entries will be<\/b><\/li>\n<\/ol>\n<p><b>Sales A\/c<\/b><\/p>\n<p><b>Dr<\/b><\/p>\n<p><b>To Sales return A\/c<\/b><\/p>\n<ol start=\"3\">\n<li><b> Purchases account closed by transferring to debit side of trading and P &amp; L Account<\/b><\/li>\n<\/ol>\n<p><b>Trading A\/c<\/b><\/p>\n<p><b>Dr<\/b><\/p>\n<p><b>To Purchases A\/c<\/b><\/p>\n<ol start=\"4\">\n<li><b> Sales account closed by transferring balance to credit side of trading and P &amp; L account.<\/b><\/li>\n<\/ol>\n<p><b>Sales A\/c<\/b><\/p>\n<p><b>Dr.<\/b><\/p>\n<p><b>To Trading A\/c<\/b><\/p>\n<ol start=\"3\">\n<li><b> Discuss the need of preparing a balance sheet.<\/b><\/li>\n<\/ol>\n<p><b>Balance sheet needs to be prepared due to following reasons:<\/b><\/p>\n<ol>\n<li><b> To show financial position of business.<\/b><\/li>\n<li><b> To show much assets and liabilities a business has<\/b><\/li>\n<li><b> It serves as information source for internal and external users<\/b><\/li>\n<li><b> It acts as a reference for balances that need to be carried forward<\/b><\/li>\n<li><b> To gather an idea about the liquidity of the firm or business<\/b><\/li>\n<li><b> Helps management in planning and controlling business operations.<\/b><\/li>\n<li><b> What is meant by Grouping and Marshalling of assets and liabilities? Explain the ways in which a balance sheet may be marshalled.<\/b><\/li>\n<\/ol>\n<p><b>Grouping refers to including assets and liabilities of similar nature under o common heading. For example different types of creditors can be placed in one heading. Similarly work in progress, raw material and finished goods can be placed.<\/b><\/p>\n<p><b>Marshalling refers to arranging of assets and liabilities in order of liquidity and permanence.<\/b><\/p>\n<p><b>In order of Liquidity: It shows how easily an asset can be converted into cash or a liability can be paid off. The asset examples arranged as follows:<\/b><\/p>\n<ol>\n<li><b> Cash<\/b><\/li>\n<li><b> Bank<\/b><\/li>\n<li><b> Debtors<\/b><\/li>\n<\/ol>\n<p><b>In order of permanence: In this system the most important asset or a liability gets the top position in balance sheet and remaining assets are arranged in reducing level of permanence: For e.g.<\/b><\/p>\n<ol>\n<li><b> Debtors<\/b><\/li>\n<li><b> Bank<\/b><\/li>\n<li><b> Cash<\/b><\/li>\n<\/ol>\n<p><b>Similarly, liabilities in order of permanence is as follows:<\/b><\/p>\n<p><b>1.Capital<\/b><\/p>\n<ol start=\"2\">\n<li><b> Long term loan<\/b><\/li>\n<li><b> Creditors<\/b><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"numerical-answers-for-ncert-accountancy-solutions-class-11-chapter-9-2\"><\/span><b>Numerical Answers for NCERT Accountancy Solutions Class 11 Chapter 9<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1-from-the-following-balances-taken-from-the-books-of-simmi-and-vimmi-ltd\"><\/span><b>1. From the following balances taken from the books of Simmi and Vimmi Ltd.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>for the year ending March 31, 2017, calculate the gross profit.<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<p><b>Closing stock 2,50,000<\/b><\/p>\n<p><b>Net sales during the year 40,00,000<\/b><\/p>\n<p><b>Net purchases during the year 15,00,000<\/b><\/p>\n<p><b>Opening stock 15,00,000<\/b><\/p>\n<p><b>Direct expenses 80,000<\/b><\/p>\n<p><b>The gross profit is calculated below:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>15,00,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Net Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>40,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Net Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>15,00,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,50,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Direct Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>80,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Gross Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>11,70,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b>42,50,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>42,50,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Therefore, the Gross Profit is \u20b9 11, 70,000.<\/b><\/p>\n<ol start=\"2\">\n<li><b> From the following balances extracted from the books of M\/s Ahuja and Nanda. Calculate the amount of:<\/b><\/li>\n<\/ol>\n<p><b>(a) Cost of goods available for sale<\/b><\/p>\n<p><b>(b) Cost of goods sold during the year<\/b><\/p>\n<p><b>(c) Gross Profit<\/b><\/p>\n<p><b>\u00a0<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<p><b>Opening stock 25,000<\/b><\/p>\n<p><b>Credit purchases 7,50,000<\/b><\/p>\n<p><b>Cash purchases 3,00,000<\/b><\/p>\n<p><b>Credit sales 12,00,000<\/b><\/p>\n<p><b>Cash sales 4,00,000<\/b><\/p>\n<p><b>Wages 1,00,000<\/b><\/p>\n<p><b>Salaries 1,40,000<\/b><\/p>\n<p><b>Closing stock 30,000<\/b><\/p>\n<p><b>Sales return 50,000<\/b><\/p>\n<p><b>Purchases return 10,000<\/b><\/p>\n<ol>\n<li><b>a) Cost of Goods Sold Available for Sales<\/b><\/li>\n<\/ol>\n<p><b>Or<\/b><\/p>\n<p><b>Cost of Goods Manufactured = Opening Stock + Net Purchases + Wages<\/b><\/p>\n<p><b>= 25,000 + 10, 40,000 + 1, 00,000<\/b><\/p>\n<p><b>= \u20b9 11, 65,000<\/b><\/p>\n<p><b>(b) Cost of Goods Sold = Opening Stock + Net Purchases + Wages \u2013 Closing Stock<\/b><\/p>\n<p><b>= 25,000 + 10, 40,000 + 1, 00,000 \u2013 30,000<\/b><\/p>\n<p><b>= \u20b9 11, 35,000<\/b><\/p>\n<p><b>Or<\/b><\/p>\n<p><b>Cost of Goods Sold = Net Sales \u2013 Gross Profit<\/b><\/p>\n<p><b>= 15, 50,000 \u2013 4, 15,000<\/b><\/p>\n<p><b>= \u20b9 11, 35,000<\/b><\/p>\n<p><b>(c)<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"8\">\n<p><b>Trading Account<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"4\">\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Particulars\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>25,000<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Add<\/i><\/b><b>: Credit Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>12,00,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Add<\/i><\/b><b>: Credit Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,50,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Add<\/i><\/b><b>: Cash Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,00,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Add<\/i><\/b><b>: Cash Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,00,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>16,00,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>10,50,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Sales Return<\/b><\/p>\n<\/td>\n<td>\n<p><b>(50,000)<\/b><\/p>\n<\/td>\n<td>\n<p><b>15,50,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Purchases Return<\/b><\/p>\n<\/td>\n<td>\n<p><b>(10,000)<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,40,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,00,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>30,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Gross Profit<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>4,15,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>15,80,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>15,80,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"3-calculate-the-amount-of-gross-profit-and-operating-profit-on-the-basis-of-the-following-balances-extracted-from-the-books-of-ms-rajiv-and-sons-for-the-year-ended-march-31-2017-2\"><\/span><b>3. Calculate the amount of gross profit and operating profit on the basis of the following balances extracted from the books of M\/s Rajiv and Sons for the year ended March 31, 2017.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>\u20b9<\/b><\/p>\n<p><b>Opening stock 50,000<\/b><\/p>\n<p><b>Net sales 11,00,000<\/b><\/p>\n<p><b>Net purchases 6,00,000<\/b><\/p>\n<p><b>Direct expenses 60,000<\/b><\/p>\n<p><b>Administration expenses 45,000<\/b><\/p>\n<p><b>Selling and distribution expenses 65,000<\/b><\/p>\n<p><b>Loss due to fire 20,000<\/b><\/p>\n<p><b>Closing stock 70,000<\/b><\/p>\n<p><b>The solution is as follows:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>50,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Net Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>11,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Net Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,00,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>70,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Direct Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>60,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Gross Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,60,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b>11,70,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>11,70,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Operating Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>=<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales \u2013 (Opening Stock + Net Purchases + Direct Expenses + Administration Expenses +<\/b><\/p>\n<p><b>Selling and Distribution Expenses) + Closing Stock<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>=<\/b><\/p>\n<\/td>\n<td>\n<p><b>11,00,000 \u2013 (50,000 + 6,00,000 + 60,000 + 45,000 + 65,000) + 70,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>=<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u20b9 3,50,000<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"4-operating-profit-earned-by-ms-arora-and-sachdeva-in-2016-17-was-%e2%82%b9-17-00000-its-non-operating-incomes-were-%e2%82%b9-1-50000-and-non-operating-expenses-were-%e2%82%b9-3-75000-calculate-the-amount-of-net-profit-earned-by-the-firm\"><\/span><b>4. Operating profit earned by M\/s Arora and Sachdeva in 2016-17 was \u20b9 17, 00,000. Its non-operating incomes were \u20b9 1, 50,000 and non-operating expenses were \u20b9 3, 75,000. Calculate the amount of net profit earned by the firm.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>\u00a0<\/b><\/p>\n<p><b>Net Profit = Operating Profit + Non-operating Income \u2013 Non-operating Expenses<\/b><\/p>\n<p><b>= 17, 00,000 + 1, 50,000 \u2013 3, 75,000<\/b><\/p>\n<p><b>= \u20b9 14, 75,000<\/b><\/p>\n<p><b>Net profit earned by M\/S Arora and Sachdeva in 2016\u201317 is \u20b9 14, 75,000<\/b><\/p>\n<ol start=\"5\">\n<li><b> The following are the extracts from the trial balance of M\/s Bhola and Sons as on March 31, 2017<\/b><\/li>\n<\/ol>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debit<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Credit<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,00,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>\u00a0<\/b><\/p>\n<p><b>(Only relevant items)<\/b><\/p>\n<p><b>Closing Stock as on date was valued at \u20b9 3, 00,000.<\/b><\/p>\n<p><b>You are required to record the necessary journal entries and show how the above items will appear in the trading and profit and loss account and balance sheet of M\/s Bhola and Sons.<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"7\">\n<p><b>Books of M\/s Bhola and Sons<\/b><\/p>\n<p><b>Journal<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Date<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>L.F.<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debit<\/b><\/p>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Credit Amount \u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>2017<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Mar.31<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Trading A\/c<\/b><\/p>\n<\/td>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>10,10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>To Opening Stock A\/c<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>2,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>To Purchases A\/c<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>8,10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"3\">\n<p><b>(Balances from Purchases Account and Stock Account<\/b><\/p>\n<p><b>transferred to Trading Account)<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Mar.31<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Sales A\/c<\/b><\/p>\n<\/td>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>10,10,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Closing Stock A\/c<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>3,00,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>To Trading A\/c<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>13,10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"3\">\n<p><b>(Balance from sales and closing stock transferred<\/b><\/p>\n<p><b>to Trading Account)<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Mar.31<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Trading A\/c<\/b><\/p>\n<\/td>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>3,00,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>To Profit and Loss (Gross Profit) A\/c<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>3,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"3\">\n<p><b>(Balance of Trading Account (gross profit) transferred<\/b><\/p>\n<p><b>to Profit and Loss Account)<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,00,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Profit and Loss A\/c \u2013 Gross Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,00,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b>13,10,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>13,10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Balance Sheet as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"6-prepare-trading-and-profit-and-loss-account-and-balance-sheet-as-on-march-31-2017-2\"><\/span><b>6. Prepare trading and profit and loss account and balance sheet, as on March 31, 2017:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account Title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Account Title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>27,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>60,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sundry debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>21,600<\/b><\/p>\n<\/td>\n<td>\n<p><b>Bills payable<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,800<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,700<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sundry creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>58,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>73,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>15,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sundry expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent and taxes<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,350<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>450<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bank<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Openings stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>\u00a0<\/b><\/p>\n<p><b>Closing stock, as on March 31, 2017 \u20b9 22,400<\/b><\/p>\n<p><b>Trading and profit and loss account and balance sheet is prepared as follows:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>73,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>58,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>22,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>15,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage Inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>450<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Profit and Loss (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>15,950<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b>95,900<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>95,900<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"5\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sundry Expenses<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\n<p><b>Trading (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>15,950<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent and Taxes<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>1,350<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Net Profit<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>14,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>15,950<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>15,950<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"6\">\n<p><b>Balance Sheet as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>60,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Fixed Assets\u00a0<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Add<\/i><\/b><b>: Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>14,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>27,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>74,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,700<\/b><\/p>\n<\/td>\n<td>\n<p><b>71,300<\/b><\/p>\n<\/td>\n<td>\n<p><b>Current Assets\u00a0<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Bank<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Sundry Creditors<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,400<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>22,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Bills Payable<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>2,800<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sundry Debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>21,600<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>75,500<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>75,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"7-the-following-trial-balance-is-extracted-from-the-books-of-ms-ram-on-march-31-2017-you-are-required-to-prepare-trading-and-profit-and-loss-account-and-the-balance-sheet-as-on-date\"><\/span><b>7. The following trial balance is extracted from the books of M\/s Ram on March 31, 2017. You are required to prepare trading and profit and loss account and the balance sheet as on date:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>\u00a0<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Account title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount \u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>12,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Apprenticeship premium<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>50,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Loan<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Coal, gas and water<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Bank overdraft<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Factory wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>11,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>80,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>9,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>13,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>20,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Discount<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Advertisement<\/b><\/p>\n<\/td>\n<td>\n<p><b>500<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Loan<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Petty cash<\/b><\/p>\n<\/td>\n<td>\n<p><b>500<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sales return<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Land and building<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Income tax<\/b><\/p>\n<\/td>\n<td>\n<p><b>100<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\n<p><b>9,900<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Trading and profit and loss account and balance sheet is prepared as follows:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"10\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"4\">\n<p><b> Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>50,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>80,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Coal, Gas and Water<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Sales Return<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>79,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Factory Wages<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>11,000<\/b><\/p>\n<\/td>\n<td colspan=\"3\" rowspan=\"4\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\">\n<p><b>Profit and Loss (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>12,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\n<p><b>79,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>79,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>9,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Trading (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>12,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Apprenticeship Premium<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Discount<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Advertisement<\/b><\/p>\n<\/td>\n<td>\n<p><b>500<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>500<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b>17,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>17,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"8\">\n<p><b>Balance Sheet as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>20,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Add<\/i><\/b><b>: Profit and Loss (Net Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>500<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Land and Building<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>20,500<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>9,900<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>(1,000)<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Loan (Given)<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Income Tax<\/b><\/p>\n<\/td>\n<td>\n<p><b>(100)<\/b><\/p>\n<\/td>\n<td>\n<p><b>19,400<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>12,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Petty Cash<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Loan (Taken)<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>13,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Bank Overdraft<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>43,400<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>43,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"8-the-following-is-the-trial-balance-of-manju-chawla-on-march-31-2017-you-are-required-to-prepare-trading-and-profit-and-loss-account-and-a-balance-sheet-as-on-date-2\"><\/span><b>8. The following is the trial balance of Manju Chawla on March 31, 2017. You are required to prepare trading and profit and loss account and a balance sheet as on date:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debit Amount \u20b9<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Credit Amount \u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases and sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>40,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>80,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Returns<\/b><\/p>\n<\/td>\n<td>\n<p><b>200<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Productive wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dock and Clearing charges<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Donation and charity<\/b><\/p>\n<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Delivery van expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Lighting<\/b><\/p>\n<\/td>\n<td>\n<p><b>500<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sales tax collected<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Misc. incomes<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent from tenants<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>2,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Royalty<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>40,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Debtors and Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Cash<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Investment<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Patents<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Land and Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>43,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>\u00a0<\/b><\/p>\n<p><b>Closing stock \u20b9 2,000.<\/b><\/p>\n<p><b>Trading and profit and loss account and balance sheet is prepared as follows:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"8\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>80,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>40,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Sales Returns<\/b><\/p>\n<\/td>\n<td>\n<p><b>(200)<\/b><\/p>\n<\/td>\n<td>\n<p><b>79,800<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Purchases Returns<\/b><\/p>\n<\/td>\n<td>\n<p><b>(600)<\/b><\/p>\n<\/td>\n<td>\n<p><b>39,400<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Productive Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Dock and Clearing Charges<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Royalty<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Profit and Loss (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>18,400<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\n<p><b>81,800<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\n<p><b>81,800<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Donation and Charity<\/b><\/p>\n<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\n<p><b>Trading (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>18,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Delivery Van Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Misc. Incomes<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Lighting<\/b><\/p>\n<\/td>\n<td>\n<p><b>500<\/b><\/p>\n<\/td>\n<td>\n<p><b>Rent from Tenants<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad Debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>18,700<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b>26,400<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>26,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"10\">\n<p><b>Balance Sheet as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>40,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Patents<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"3\">\n<p><b><i>Add<\/i><\/b><b>: Profit and Loss (Net Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>18,700<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Land and Machinery<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>43,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>58,700<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Investment<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b><i>Less<\/i><\/b><b>: Drawings<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>(2,000)<\/b><\/p>\n<\/td>\n<td>\n<p><b>56,700<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>6,700<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Cash<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>3,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Sales Tax Collected<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>2,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\n<p><b>64,700<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>64,700<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"10-the-following-is-the-trial-balance-of-mr-deepak-as-on-march-31-2017-you-are-required-to-prepare-trading-account-profit-and-loss-account-and-a-balance-sheet-as-on-date\"><\/span><b>10. The following is the Trial Balance of Mr. Deepak as on March 31, 2017. You are required to prepare trading account, profit and loss account and a balance sheet as on date:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>\u00a0<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debit Amount \u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Account title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Credit Amount \u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>36,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,50,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Insurance<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Bills payable<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,600<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>General expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>29,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>50,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent and taxes<\/b><\/p>\n<\/td>\n<td>\n<p><b>14,400<\/b><\/p>\n<\/td>\n<td>\n<p><b>Discount received<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Lighting (factory)<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,800<\/b><\/p>\n<\/td>\n<td>\n<p><b>Purchases return<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Travelling expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,400<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,40,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Cash in hand<\/b><\/p>\n<\/td>\n<td>\n<p><b>12,600<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bills receivable<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sundry debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,04,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\n<p><b>16,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Plant and Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,80,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>40,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,60,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sales return<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,200<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage outwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,600<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>84,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>53,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>\u00a0<\/b><\/p>\n<p><b>Closing stock \u20b9 35,000.<\/b><\/p>\n<p><b>The trading account, profit and loss account and a balance sheet are prepared below:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"9\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"4\">\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>40,000<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,40,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,60,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Sales Return<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,34,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Purchases Return<\/b><\/p>\n<\/td>\n<td>\n<p><b>(8,000)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,52,000<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>35,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"4\" rowspan=\"7\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Lighting (Factory)<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>2,800<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Carriage Inwards<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>7,200<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>84,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Profit and Loss (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,83,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\" rowspan=\"2\">\u00a0<\/td>\n<td>\n<p><b>4,69,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,69,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"9\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\">\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Insurance<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>3,000<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Trading (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,83,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>General Expenses<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>29,000<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Discount Received<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>10,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Rent and Taxes<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>14,400<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Travelling Expenses<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>7,400<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Carriage Outwards<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,600<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>53,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Net Profit<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>85,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,93,400<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,93,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"6\">\n<p><b>Balance Sheet as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,50,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Plant and Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,80,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Add<\/i><\/b><b>: Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>85,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\n<p><b>16,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>3,35,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Sundry Debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,04,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>(36,000)<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,99,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>35,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Bills Receivable<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>50,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Cash in Hand<\/b><\/p>\n<\/td>\n<td>\n<p><b>12,600<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Bills Payable<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,600<\/b><\/p>\n<\/td>\n<td rowspan=\"4\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\" rowspan=\"3\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>3,52,600<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,52,600<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"11-prepare-trading-and-profit-and-loss-account-and-balance-sheet-from-the-following-particulars-as-on-march-31-2017\"><\/span><b>11. Prepare trading and profit and loss account and balance sheet from the following particulars as on March 31, 2017.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>\u00a0<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account Title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debit Amount \u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Credit Amount \u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases and Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,52,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,60,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Return inwards and Return outwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>9,600<\/b><\/p>\n<\/td>\n<td>\n<p><b>12,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage outwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,360<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Fuel and power<\/b><\/p>\n<\/td>\n<td>\n<p><b>24,800<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>57,600<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>9,950<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Debtors and Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,31,200<\/b><\/p>\n<\/td>\n<td>\n<p><b>48,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,48,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Investment<\/b><\/p>\n<\/td>\n<td>\n<p><b>32,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Interest on investment<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,200<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Loan<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>16,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Repairs<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,400<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>General expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>17,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages and salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>28,800<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Land and buildings<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,88,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Cash in hand<\/b><\/p>\n<\/td>\n<td>\n<p><b>32,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Miscellaneous receipts<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>160<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sales tax collected<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,350<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>\u00a0<\/b><\/p>\n<p><b>Closing stock \u20b9 30,000.<\/b><\/p>\n<p><b>Trading and profit and loss account and balance sheet for the question is posted below:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"14\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\n<p><b>57,600<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>5,60,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>3,52,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b><i>Less<\/i><\/b><b>: Return Inwards<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>(9,600)<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>5,50,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b><i>Less<\/i><\/b><b>: Return Outwards<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>(12,000)<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,40,000<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>30,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"6\">\n<p><b>Carriage Inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\">\n<p><b>Fuel and Power<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>24,800<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\">\n<p><b>Wages and Salaries<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>28,800<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\">\n<p><b>Profit and Loss (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,22,200<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"6\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>5,80,400<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>5,80,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage Outwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,360<\/b><\/p>\n<\/td>\n<td>\n<p><b>Trading (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,22,200<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad Debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>9,950<\/b><\/p>\n<\/td>\n<td>\n<p><b>Interest on Investment<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,200<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Repairs<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,400<\/b><\/p>\n<\/td>\n<td>\n<p><b>Miscellaneous Receipts<\/b><\/p>\n<\/td>\n<td>\n<p><b>160<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>General Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>17,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>92,850<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,25,560<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,25,560<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"8\">\n<p><b>Balance Sheet as on March 31,2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,48,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Land and Building<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>2,88,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b><i>Add<\/i><\/b><b>: Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>92,850<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,40,850<\/b><\/p>\n<\/td>\n<td>\n<p><b>Investment<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>32,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,31,200<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Loan<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>16,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>30,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>48,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Cash in Hand<\/b><\/p>\n<\/td>\n<td>\n<p><b>32,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Sales Tax Collected<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>8,350<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>5,13,200<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\n<p><b>5,13,200<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"12-from-the-following-trial-balance-of-mr-a-lal-prepare-trading-profit-and-loss-account-and-balance-sheet-as-on-march-31-2017\"><\/span><b>12. From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>\u00a0<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account Title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debit Amount \u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Credit Amount \u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Stock as on April 01, 2016<\/b><\/p>\n<\/td>\n<td>\n<p><b>16,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases and Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>67,600<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,12,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Returns inwards and outwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,600<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,200<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,400<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>General expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,400<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Discount received<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bank over draft<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Interest on bank overdraft<\/b><\/p>\n<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Commission received<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,800<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Insurance and taxes<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Scooter expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>200<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,800<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Cash in hand<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Scooter<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,200<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Building<\/b><\/p>\n<\/td>\n<td>\n<p><b>65,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Debtors and Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>16,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>50,000<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Closing stock \u20b9 15,000.<\/b><\/p>\n<p><b>\u00a0<\/b><\/p>\n<p><b>Trading and profit and loss account and balance sheet for the question is posted below:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"12\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\n<p><b>16,000<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,12,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>67,600<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b><i>Less<\/i><\/b><b>: Sales Return Inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>(4,600)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,07,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"3\">\n<p><b><i>Less<\/i><\/b><b>: Return Outwards<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>(3,200)<\/b><\/p>\n<\/td>\n<td>\n<p><b>64,400<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>15,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"6\">\n<p><b>Carriage Inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,400<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\">\n<p><b>Profit and Loss (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>40,600<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"6\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,22,400<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,22,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>General Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,400<\/b><\/p>\n<\/td>\n<td>\n<p><b>Trading (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>40,600<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad Debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\n<p><b>Discount Received<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,400<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Interest on Bank Overdraft<\/b><\/p>\n<\/td>\n<td>\n<p><b>600<\/b><\/p>\n<\/td>\n<td>\n<p><b>Commission Received<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,800<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Insurance and Taxes<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Scooter Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>200<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,800<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>27,200<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b>43,800<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>43,800<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"8\">\n<p><b>Balance Sheet as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>50,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Building<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>65,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Add<\/i><\/b><b>: Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>27,200<\/b><\/p>\n<\/td>\n<td>\n<p><b>77,200<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>5,200<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Scooter<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>16,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Bank Overdraft<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>15,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Cash in Hand<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,03,200<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,03,200<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"13-prepare-trading-and-profit-and-loss-account-and-balance-sheet-of-ms-royal-traders-from-the-following-balances-as-on-march-31-2017\"><\/span><b>13. Prepare trading and profit and loss account and balance sheet of M\/s Royal Traders from the following balances as on March 31, 2017.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>\u00a0<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Debit balances<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount \u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Credit balances<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount \u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>20,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,45,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Cash<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bank<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Bills payable<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage on purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,90,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>9,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>55,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,00,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>27,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Postage<\/b><\/p>\n<\/td>\n<td>\n<p><b>300<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sundry expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,700<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\n<p><b>35,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>\u00a0<\/b><\/p>\n<p><b>Closing stock \u20b9 8,000.<\/b><\/p>\n<p><b>Trading and profit and loss account and balance sheet is prepared below:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>20,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,45,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,90,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage on Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>Profit and Loss (Gross Loss)<\/b><\/p>\n<\/td>\n<td>\n<p><b>13,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>55,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b>2,66,500<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>2,66,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Trading (Gross Loss)<\/b><\/p>\n<\/td>\n<td>\n<p><b>13,500<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Postage<\/b><\/p>\n<\/td>\n<td>\n<p><b>300<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sundry Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,700<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>Net Loss<\/b><\/p>\n<\/td>\n<td>\n<p><b>20,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b>20,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>20,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"8\">\n<p><b>Balance Sheet of M\/s Royal Traders as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"3\">\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,00,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Net Loss<\/b><\/p>\n<\/td>\n<td>\n<p><b>(20,000)<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>35,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>(9,000)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,71,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>27,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Bank<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\n<p><b>Bills Payable<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Cash<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,85,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,85,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"14-prepare-trading-and-profit-and-loss-account-from-the-following-particulars-of-ms-neema-traders-as-on-march-31-2017\"><\/span><b>14. Prepare trading and profit and loss account from the following particulars of M\/s Neema Traders as on March 31, 2017.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account Title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debit Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Account Title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Credit Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Buildings<\/b><\/p>\n<\/td>\n<td>\n<p><b>23,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,80,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Plant<\/b><\/p>\n<\/td>\n<td>\n<p><b>16,930<\/b><\/p>\n<\/td>\n<td>\n<p><b>Loan<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Bills payable<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,520<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,300<\/b><\/p>\n<\/td>\n<td>\n<p><b>Bank overdraft<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,720<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,64,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sales return<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,820<\/b><\/p>\n<\/td>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,36,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>9,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Purchases return<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,910<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,10,940<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Insurance<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,610<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Interest<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,100<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>250<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Postage<\/b><\/p>\n<\/td>\n<td>\n<p><b>300<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Discount<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,900<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b> Stock on March 31, 2017 \u20b9 16,000.<\/b><\/p>\n<p><b>Trading and profit and loss account and balance sheet is prepared below:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"12\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"6\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\n<p><b>9,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>1,80,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>1,64,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Sales Return<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>(1,820)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,78,180<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"3\">\n<p><b><i>Less<\/i><\/b><b>: Purchases Return<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>(1,910)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,62,090<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\n<p><b>16,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"3\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Carriage Inwards<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\n<p><b>3,300<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"6\">\n<p><b>Profit and Loss (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>18,790<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\n<p><b>1,94,180<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\n<p><b>1,94,180<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Insurance<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,610<\/b><\/p>\n<\/td>\n<td>\n<p><b>Trading (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>18,790<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Interest<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,100<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad Debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>250<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Postage<\/b><\/p>\n<\/td>\n<td>\n<p><b>300<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Discount<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>11,530<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b>18,790<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>18,790<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"7\">\n<p><b>Balance Sheet as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,36,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Building<\/b><\/p>\n<\/td>\n<td>\n<p><b>23,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\n<p><b><i>Add<\/i><\/b><b>: Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>11,530<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,47,530<\/b><\/p>\n<\/td>\n<td>\n<p><b>Plant<\/b><\/p>\n<\/td>\n<td>\n<p><b>16,930<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,10,940<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Loan<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,900<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>16,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Bills Payable<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>2,520<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Bank Overdraft<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>4,720<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>2,70,770<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>2,70,770<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"15-from-the-following-balances-of-ms-nilu-sarees-as-on-march-31-2017-prepare-trading-and-profit-and-loss-account-and-balance-sheet-as-on-date\"><\/span><b>15. From the following balances of M\/s Nilu Sarees as on March 31, 2017. Prepare trading and profit and loss account and balance sheet as on date.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>\u00a0<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account Title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debit Amount \u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Account Title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Credit Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,28,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>78,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>70,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>Interest<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>30,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Commission<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Commission<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>28,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>11,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Bills payable<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,370<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent and taxes<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,800<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Repairs<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Telephone expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,400<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Legal charges<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sundry expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>cash in hand<\/b><\/p>\n<\/td>\n<td>\n<p><b>12,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>30,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>60,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Investments<\/b><\/p>\n<\/td>\n<td>\n<p><b>90,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>18,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>\u00a0<\/b><\/p>\n<p><b>Closing stock, as on March 31, 2017 \u20b9 22,000.<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Trading Account of M\/s Nilu Sarees as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,28,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>78,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>22,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage Inwards<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,500<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>11,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Profit and Loss (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,48,500<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b>2,50,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>2,50,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Salaries<\/b><\/p>\n<\/td>\n<td>\n<p><b>30,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Trading (Gross Profit)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,48,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Commission<\/b><\/p>\n<\/td>\n<td>\n<p><b>10,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Interest<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent and Taxes<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,800<\/b><\/p>\n<\/td>\n<td>\n<p><b>Commission<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Repairs<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Telephone Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,400<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Legal Charges<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,500<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sundry Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,500<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Net Profit<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,10,300<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,63,500<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,63,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"8\">\n<p><b>Balance Sheet as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>70,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Machinery<\/b><\/p>\n<\/td>\n<td>\n<p><b>60,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\n<p><b><i>Add<\/i><\/b><b>: Net Profit<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>1,10,300<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Investments<\/b><\/p>\n<\/td>\n<td>\n<p><b>90,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>1,80,300<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>30,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\n<p><b><i>Less<\/i><\/b><b>: Drawings<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>(18,000)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,62,300<\/b><\/p>\n<\/td>\n<td>\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>22,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Cash in Hand<\/b><\/p>\n<\/td>\n<td>\n<p><b>12,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>28,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Bills Payable<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>2,370<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\n<p><b>Suspense<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>21,330<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>2,14,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>2,14,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"3\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"16-prepare-trading-and-profit-and-loss-account-of-ms-sports-equipments-for-the-year-ended-march-31-2017-and-balance-sheet-as-on-that-date\"><\/span><b>16. Prepare trading and profit and loss account of M\/s Sports Equipments for the year ended March 31, 2017 and balance sheet as on that date:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Account Title<\/b><\/p>\n<\/td>\n<td>\n<p><b>Debit Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Credit Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>50,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases and sales<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,50,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,21,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Sales returns<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Commission<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,00,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bank overdraft<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<td>\n<p><b>28,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Cash in hand<\/b><\/p>\n<\/td>\n<td>\n<p><b>32,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,28,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,40,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Plants<\/b><\/p>\n<\/td>\n<td>\n<p><b>60,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage on purchases<\/b><\/p>\n<\/td>\n<td>\n<p><b>12,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent<\/b><\/p>\n<\/td>\n<td>\n<p><b>15,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>24,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Stationery<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Travelling expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Insurance<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Discount<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Office expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>\u00a0<\/b><\/p>\n<p><b>Closing stock as on March 31, 2017 \u20b9 2,500<\/b><\/p>\n<p><b>Trading and profit and loss account and balance sheet is prepared below:<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"9\">\n<p><b>Trading Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"5\">\n<p><b> Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Opening Stock<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>50,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Sales<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>4,21,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Purchases<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>3,50,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b><i>Less<\/i><\/b><b>: Sales Return<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,16,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Carriage on Purchases<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>12,000<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Wages<\/b><\/p>\n<\/td>\n<td>\n<p><b>8,000<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\n<p><b>Profit and Loss (Gross Loss)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>4,20,000<\/b><\/p>\n<\/td>\n<td colspan=\"4\">\u00a0<\/td>\n<td>\n<p><b>4,20,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"4\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p><b>Profit and Loss Account as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Dr.<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Cr.<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td>\n<p><b>Particulars<\/b><\/p>\n<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Trading (Gross Loss)<\/b><\/p>\n<\/td>\n<td>\n<p><b>1,500<\/b><\/p>\n<\/td>\n<td>\n<p><b>Commission<\/b><\/p>\n<\/td>\n<td>\n<p><b>4,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Rent<\/b><\/p>\n<\/td>\n<td>\n<p><b>15,000<\/b><\/p>\n<\/td>\n<td>\n<p><b>Net Loss<\/b><\/p>\n<\/td>\n<td>\n<p><b>41,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bad Debts<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Stationery<\/b><\/p>\n<\/td>\n<td>\n<p><b>6,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Travelling Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Insurance<\/b><\/p>\n<\/td>\n<td>\n<p><b>7,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Discount<\/b><\/p>\n<\/td>\n<td>\n<p><b>5,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Office Expenses<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b>45,500<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>45,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"9\">\n<p><b>Balance Sheet as on March 31, 2017<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Liabilities<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Assets<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>Amount<\/b><\/p>\n<p><b>\u20b9<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Capital<\/b><\/p>\n<\/td>\n<td>\n<p><b>3,00,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Plants<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>60,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b><i>Less<\/i><\/b><b>: Net Loss<\/b><\/p>\n<\/td>\n<td>\n<p><b>(41,500)<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Furniture<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,28,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b><i>Less<\/i><\/b><b>: Drawings<\/b><\/p>\n<\/td>\n<td>\n<p><b>(24,000)<\/b><\/p>\n<\/td>\n<td>\n<p><b>2,34,500<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Debtors<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,40,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td colspan=\"2\">\n<p><b>Closing Stock<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>2,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Creditors<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>1,00,000<\/b><\/p>\n<\/td>\n<td colspan=\"2\">\n<p><b>Cash in Hand<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>32,000<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\">\n<p><b>Bank Overdraft<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>28,000<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>3,62,500<\/b><\/p>\n<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\n<p><b>3,62,500<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><br \/><br \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"access-other-chapters-and-ncert-solutions-for-class-11-accountancy-chapter-8\"><\/span><strong>Access Other Chapters and NCERT Solutions For Class 11 Accountancy Chapter 8<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>You can download the PDF of NCERT Solutions Class 11 Accountancy for Chapter 8 other chapters:<\/strong><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-1\/\"><strong>Chapter 1 <\/strong><strong>Introduction to Accounting<\/strong>\u00a0<\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-2\/\"><strong>Chapter 2\u00a0Theory Base\u00a0of\u00a0Accounting<\/strong>\u00a0<\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-3\/\"><strong>Chapter 3\u00a0Recording\u00a0of\u00a0Transactions\u00a01<\/strong>\u00a0<\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-4\/\"><strong>Chapter 4\u00a0Recording\u00a0of\u00a0Transcations\u00a02<\/strong><\/a>\u00a0<\/p>\n<p><span style=\"color: #00ccff\"><a style=\"color: #00ccff\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-3\/\"><strong><span style=\"color: #3366ff\">Chapter-5 Bank Reconciliation Statement<\/span><\/strong><\/a><\/span><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-6\/\"><strong>Chapter-6 Trial Balance And Rectification Of Errors<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-7\/\"><strong>Chapter-7 Depreciation, Provisions And Reserves<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-8\/\"><strong>Chapter-8 Bill Of Exchange<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-10\/\"><strong>Chapter-10 Financial Statements &#8211; 2<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-11\/\"><strong>Chapter-11 Accounts From Incomplete Records<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-12\/\"><strong>Chapter-12 Applications of Computers in Accounting<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-13\/\"><strong>Chapter-13 Computerised Accounting System<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-14\/\"><strong>Chapter-14 Depreciation<\/strong><\/a><\/p>\n<p><a href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-15\/\"><strong>Chapter-15 Bank Reconciliation Statement<\/strong><\/a><\/p>\n<p>\u00a0<\/p>\n<p><strong>We have provided all the important above in the article regarding the <a href=\"https:\/\/www.cbse.gov.in\/\" target=\"_blank\" rel=\"noopener\">CBSE<\/a> NCERT Solutions For Class 11 Accountancy Chapter-8. If you have any queries, you can mention them in the comment section.<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"faq-frequently-asked-questions-ncert-solutions-for-class-11-accountancy-chapter-9\"><\/span><strong>FAQ (Frequently Asked Questions): NCERT Solutions For Class 11 Accountancy Chapter 9<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1627108621070\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"when-does-the-passbook-and-cash-book-not-tally-with-each-other-give-reasons\"><\/span><strong>When does the passbook and cash book not tally with each other? Give reasons.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The following are the reasons for this:<br \/>Because the transactions are separated by a period of time.<br \/>Due to errors committed during the transaction&#8217;s recording.<br \/>Any direct debit made by the bank from the customer&#8217;s account.<br \/>Paid a bank check that hasn&#8217;t cleared yet.<br \/>The deposited check, as well as any discounts, applied, and so on.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1627108675654\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"why-is-it-mandatory-to-prepare-a-bank-reconciliation-statement\"><\/span><strong>Why is it mandatory to prepare a bank reconciliation statement?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A bank reconciliation statement is required because:\u00a0<br \/>Mistakes might occur during transactions, which are detected by the reconciliation statement. It facilitates their correction.\u00a0<br \/>It simplifies the process of preparing revised cash.\u00a0<br \/>For example, previously missing direct payments and interest allowed by the bank on a customer&#8217;s account will now be recorded by the cash book<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1627298361293\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"what-are-financial-statements-what-information-do-they-provide\"><\/span>What are financial statements? What information do they provide?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Statements that contain financial information about business which can satisfy the information requirements of internal and external users are known as financial statements. It serve as a source of financial information that caters to diverse information requirement of users. It is prepared with the purpose of representing a true and fair view of business.<br \/>To do so it requires the creation of three statements namely, trading and profit and loss account and balance sheet.<br \/>The financial statements related to gross\/net profit or loss, the assets and liabilities. The users of information can be the following:<br \/>Current Owners: These internal users would like to know the profits in the previous accounting period and current position of the assets and liabilities.<br \/>Government: Government is an external user and want to know the financial position of a business so that stakeholder\u2019s rights are protected.<br \/>Prospective Owner: These external users would like to know the past profits and financial position and also the future performance of the business to make an informed decision whether to invest in the business or not<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1627298535360\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"what-are-closing-entries-give-four-examples-of-closing-entries\"><\/span>What are closing entries? Give four examples of closing entries.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A journal entry that is made at the end of an accounting period that transfers balances from the temporary accounts to a permanent account is known as closing entries. Some examples are here as follows:<br \/>1. The purchases returns are closed by transferring the balance in purchases account. Following entries are made:<br \/>Purchases return A\/c<br \/>Dr<br \/>To Purchases A\/c<br \/>2. Sales return account is closed by transfer of balance to sales account. Entries will be<br \/>Sales A\/c<br \/>Dr<br \/>To Sales return A\/c<br \/>3. Purchases account closed by transferring to debit side of trading and P &amp; L Account<br \/>Trading A\/c<br \/>Dr<br \/>To Purchases A\/c<br \/>4. Sales account closed by transferring balance to credit side of trading and P &amp; L account.<br \/>Sales A\/c<br \/>Dr.<br \/>To Trading A\/c<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>NCERT Solutions for Class 11 Accountancy Chapter 9: We provide NCERT Solutions for Class 11 Accountancy Chapter 9 that are simple to grasp. In the NCERT Solutions For Class 11 Accountancy Chapter 9, our faculty has solved and explained all of the questions in the chapter according to CBSE norms. To make learning easier, the &#8230; <a title=\"NCERT Solutions for Class 11 Accountancy Chapter 9 2021: Download PDF\" class=\"read-more\" href=\"https:\/\/www.kopykitab.com\/blog\/ncert-solutions-for-class-11-accountancy-chapter-9\/\" aria-label=\"More on NCERT Solutions for Class 11 Accountancy Chapter 9 2021: Download PDF\">Read more<\/a><\/p>\n","protected":false},"author":250,"featured_media":108086,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":""},"categories":[73413,73694],"tags":[3570,76237,76416],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/108080"}],"collection":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/users\/250"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/comments?post=108080"}],"version-history":[{"count":5,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/108080\/revisions"}],"predecessor-version":[{"id":113523,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/108080\/revisions\/113523"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/media\/108086"}],"wp:attachment":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/media?parent=108080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/categories?post=108080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/tags?post=108080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}