Practical Problem 02

2) Prepare Profit and Loss Account of Sanjay Brothers for the year ended 31st March, 2018
1) Bank charges 22,000					11) Commission (Cr) 17,500
2) Interest (Cr.) 16,000					12) Printing & Stationery 21,000
3) Sundry expenses 42,000					13) Loss by fire 18,000
4) Insurance 35,000					14) Discount (Dr 23,000
5) Salaries 40,000					15) Discount (Cr) 37,000
6) Rates and Taxes 13,000					16) Misc. Income 14,000
7) Postage 8,000					17) Depreciation 34,000
8) Advertisement 40,000					18) Carriage Outwards 60,000
9) Rent paid 32,000					19) Godown Expenses 40,000
10) Bad debts 10,000					Note: Gross Profit 407500

Solution :

Trading and Profit & Loss A/c for the year ended 31st March 2019
Particulars	Amount	Amount	Particulars	Amount	Amount
To Bank charges		22,000	By Gross Profit		4,07,500
To Insurance		35,000	By Interest		16,000
To Sundry expenses		42,000	By Commission		17,500
To Salaries		40,000	By Discount		37,000
To Rates and Taxes		13,000	By Misc. Income		14,000
To Postage		8,000
To Advertisement		40,000
To Rent paid		32,000
To Bad debts		10,000
To Printing & Stationery		21,000
To Loss by fire		18,000
To Discount (Dr)		23,000
To Depreciation		34,000
To Carriage Outwards		60,000
To Godown Expenses		40,000
To Net Profit C/d		54,000
		4,92,000			4,92,000