Practical Problem 03

Solution :-
In the books of Sanjiv & Sons.
Trading and Profit & Loss A/c for the year ended 31st March 2019
Particulars	Amount	Amount	Particulars	Amount	Amount
To Opening Stock		22,000	By Sales	4,60,000
To Purchase	1,78,000		Less: Return	2,000	4,58,000
Less: Return	4,000	1,74,000	By Closing stock		60,000
To Wages	28,000
Add: Outstanding	4,000	32,000
To Carrriage		9,000
To Gross Profit c/d		2,81,000
		5,18,000			5,18,000
To Bad debts	2,400		By Gross Profit b/d		2,81,000
Add:- Bad Debts	2,000		By Commission		2,400
Add:- New R.D.D	2,100		By Dividend		3,300
	6,500
Less:- Old R.D.D	-3,200	3,300
To Office expenses		5,400
To Printing & Stationery		3,000
To Salaries	44,000
Add :Outstanding	2,400	46,200
To Carriage Outward		4,800
To Interest on Capital		14,000
To depreciation on :
Motor Van	4,000
Furniture	1,000	5,000
To Advertisement (for 3 year)	6,000
Less : Prepaid 2 years	-4,000	2,000
To Net Profit (C/f To Capital)		2,02,800
		2,86,700			2,86,700

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