Practical Problem 04

Practical Problem | Q 4 | Page 57

From the following Trial Balance of M/S Meera and Madhav.
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2019
And Balance Sheet as on that date. Trial Balance as on 31st March, 2019

Trial Balance
Debit Balance	₹	Credit Balance	₹
Stock (1/4/2018)	25,000	Bank overdraft	5,000
Debtors	80,500	Bills Payable	12,500
Bills Receivable	10,000	Creditor	68,000
Purchases	2,08,500	Sales	3,25,000
Returns	1,000	Outstanding Rent	2,000
Carriage Inward	3,000	Unpaid Wages	1,500
Carriage Outwards	4,500	Capital :
Motor Vehicle	55,000	Meera	75,000
General Expenses	1,800	Madhav	75,000
Export Duty	900	Purchase Return	1,000
Advertisement	4,800
(For 3 years from 1/10/2018)
Printing & Stationary	1,200
Drawings :
Meera	3,500
Madhav	2,000
Leasehold Premises	1,10,000
Cash at Bank	45,000
Furniture	8,300

	5,65,000		5,65,000

Adjustments :

1) Closing Stock is valued at ₹ 32,000.

2) Provide Provision for Doubtful Debts ₹ 2,000.

3) Create reserve for Discount on Debtors @ 3%.

4) Valued of Leasehold Premises on 31st March 2019 ₹ 1, 00,000.

5) Outstanding Expenses Printing & Stationary ₹ 500.

In the books of M/S Meera and Madhav.
Dr Trading and Profit and loss accounts for the year ended 31st March,2019 . Cr
Particular	₹	₹	Particular	₹	₹
To Opening Stock		25,000	By Sales	3,25,000
To Purchase	2,08,500		Less: Return	-1000	3,24,000
Less: Purchase Return	-1,000	2,07,500
To Carriage Inward		3,000	By Closing Stock		32,000
To Gross Profit c/d		1,20,500
		3,56,000			3,56,000
			By Gross Profit b/d		1,20,500
To Carriage Outward		4,500
To General Expenses		1,800
To Export Duty		900
To Advertisement	4,800
Less: Prepaid	-4,000	800
To Printing and Stationary	1,200
Add: Outstanding	500	1,700
To RDD		2,000
To RFDD		2,355
To Dep on Leasehold Premises		10,000
To Net Profit c/d
Meera	48,222
Madhav	48,223	96,445
		1,20,500			1,20,500