SOLUTION-4:

Trading Account for the yr ended 31st Mar 2004

Dr.

Cr.

PARTICULARS

AMOUNT

PARTICULA
RS

AMOUN
T

To Opening
Stock

1,50,000 By Cash Sales

61,000

To Purchase

3,69,000 By Credit

7,80,000

Sales

To wages

1,80,000

To salaries

1,50,000

To Sunday
office
expenses

1,08,750 By Closing
Stock

To Gross Profit
c/d

23,250

TOTAL

9,81,00
0

1,40,000

TOTAL

9,81,00
0

Profit and Loss Account for the yr ended 31st Mar 2004

Dr.

Cr.

PARTICULARS

AMOUN
T

PARTICULARS

AMOUN
T

To Discount
allowed

7,000

By Gross Profit
b/d

To Bad debts w/o

8,000

By Discount
received

4,000

By Misc.
expenses

2,000

To Depreciation

23,250

Furniture@5%
2000
Machinery@10% 36,500 By Net Loss c/d

26,750

34,500
To interest on
loan from Dass
TOTAL

4,500
58,500

TOTAL

58,500

Balance Sheet as at 31st Mar 2004

LIABILITIES

AMOUN
T

OWNERS
CAPITAL
Op balance
5,16,000
(Less)drawings
40,000

ASSETS

AMOUNT

FIXED ASSETS
Machinery 3,45,000

4,49,2
50

(Less) Loss
26,750

Less Dep.

34,500

3,48,500

NET
3,10,500
Furniture
Less Dep.

40,000
2,000

38,000

UNSECURED
LOAN
Dass @ 9%

CURRENT
ASSETS,LOANS &
ADVANCES

1,00,0
00

Stock

1,40,000

CURRENT LIABILITIES
&
PROVISIONS

Sundry Debtors

1,93,000

Sundry creditors

1,25,0
00

Bank

Wages
outstanding

20,000

Unexpired Insurance

1,250

TOTAL

6,98,75
0

Interest on loan

TOTAL

16,000

4,500
6,98,7
50

WORKING NOTES:
1) Opening balance of Owners capital = stock + debtors + bank + machinery +
furniture sundry creditors
= 1,50,000 +1,81,000+5,000 +2,50,000+40,000-1,10,000
= 5,16,000