Answer for 1st Problem

Trading and Profit & Loss A/c as on 31.03.2007

Dr. Cr.

Particulars Amount Particulars Amount

To Opening Stock 50,000.00 By Sales 600,000.00

Add:- Sales not taken in
To Purchases 400,000.00 to Accountis 4,000.00 604,000.00

Less:- Drawings 10,000.00 390,000.00 By Closing Stock 75,000.00

To Wages 40,000.00

To Gross Profit 199,000.00

Total 679,000.00 Total 679,000.00

To Salary 12,000.00 By Gross Profit 199,000.00

To Rent 9,000.00

To Electricity Bill 6,000.00

To Advertisement Exp 9,000.00

Add:- For this year 2,000.00 11,000.00

To Postage & Telegrams 3,000.00

Add:- Unpaid Exp for this year 1,000.00 4,000.00

To Discounts 11,400.00

Add:- Discount Allowed 1,000.00 12,400.00

To General Charges 4,000.00

To Petty Cash Expenses 9,600.00

Add:- Petty Cashier Vouchers Totalling

400.00 10,000.00

To Depreciation:-

1. Motor Car 10,240.00

2. Leased Land 4,000.00 14,240.00

To Net Profit 116,360.00

Total 199,000.00 Total 199,000.00
 Balance Sheet as on 31.03.2007
Liabilities Amount Assets Amount

Capital 34,000.00 Cash 6,760.00

Add:- Net Profit 116,360.00 Add:- Cash withdrawn from Bank4,000.00

150,360.00 Add:- Cash Sales 4,000.00 14,760.00

Less:- Drawings (16000+10000) 26,000.00 124,360.00 Petty Cash 1,000.00

Sundry Creditors 35,000.00 Less:- Petty Cashier Vouchers Total400.00 600.00

Suspense A/c 10,000.00 Bank 21,000.00

Telephone Bill Payable 1,000.00 Less:- Cash withdrawn from Bank4,000.00 17,000.00

Suspense A/c 6,000.00 Closing Stock 75,000.00

Sundry Debtors 50,000.00

Less:- Discount Allowed 1,000.00 49,000.00

Leasehold Land 20,000.00

Less:- Depreciation 4,000.00 16,000.00

Advertisements 6,000.00

Less:- Writeoff 2,000.00 4,000.00

Total 176,360.00 Total 176,360.00