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Particulars

FORMAT of Trading Account of ABC Ltd., for the year ending 31st March 2012 Rs. Rs. Particulars xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx By Sales Less : Returns Inward Less : Sales Returns By Closing stock

Rs. xxx xxx

Rs. xxx xxx xxx

To Opening Stock To Purchases (Less) Return Outwards (Less) Purchases Returns To Wages (Add) Outstanding Wages To Factory rent Less: Prepaid Factory rent To Freight To Carriage Inwards To Clearing Charges To Packing Charges To Dock Dues To Power (factory) To Octroi Duty To Gross Profit c/d (Transferred to P&L A/c)

By Gross Loss c/d (Transferred to P&L A/c)

Dr.P.Neelakantan-Faculty -SMM

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FORMAT of Profit or Loss Account of ABC Ltd., for the year ending 31st March 2012 Particulars Rs. Rs. Particulars Rs. To Trading A/c (Gross Loss) To Salaries (Add) Outstanding To Rent & rates To Stationeries To Postage expenses To Insurance (Less) Prepaid Insurance To Repairs To Trading expenses To Office expenses To Interest paid (Add) Outstanding To To To To To To To To To To Bank charges Sundry expenses Commission paid Discount allowed Advertisement Carriage outwards Travelling expenses Distribution expenses Repacking charges Depreciation xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx By Trading A/c (Gross profit) By Commission earned (Add) Commission Accrued but not yet received By Rent received (Less) Rent received in advance By Interest received By Discount received (Add) Provisions for Discounts on creditors (New) (Less) Provision for Discounts on creditors (Old) By Net Loss (Transferred to Capital A/c) xxx xxx

Rs. xxx xxx xxx xxx xxx xxx

To Bad debts (New) (Add) Bad Debts ( Old) (Add) Provision for Bad Debts (New) (Less) Provision for Bad Debts (Old) To Discounts ( New) Dr.P.Neelakantan-Faculty -SMM

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(Add) Discounts (Old) (Add) Provisions for Discounts (New) (Less) Provision for Discounts (Old) To Net Profit (transferred to Capital A/c)

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FORMAT of Balance Sheet of ABC Ltd., for the year ending 31st March 2012 Particulars Capital Add: Net profit Less: Net loss Less: Drawings Less: Interest on Drawings Less: Income tax Sundry creditors Less: Provision for Discount on Creditors Loan Add: Interest on loan Outstanding Bills payable Bank overdraft Outstanding expenses Mortgage loans Reserve fund Incomes Received in Advance Rs. Rs. xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx Less: Bad Debts (New) xxx xxx xxx xxx xxx xxx xxx xxx xxx Less: Provision for Bad Debts (New) Less: Provision for Discounts (New) Investments Closing stock Prepaid expenses Furniture & fittings Less : Depreciation Plant & machinery Less : Depreciation Land & buildings Less : Depreciation Dr.P.Neelakantan-Faculty -SMM xxx xxx xxx xxx xxx xxx Particulars Cash in hand Cash at bank Bills receivable Less : Bills Receivable Dishonored Sundry debtors Add: Bills Receivable Dishonored Rs. Rs. xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx Page 3 xxx

Business premises Less : Depreciation Patents & trade marks Good will Accrued Commission

xxx xxx

xxx xxx xxx xxx

Prepare Trading, Profit / Loss A/c and Balance Sheet Trial Balance of Company A as on 31-March -2009 Debit Balances (LHS) Credit Balances (RHS) Particulars Rs. Particulars Rs. Debtors 92,000 Capital 70,000 Plant & Machinery * 20,000 Purchase Returns 2,600 Interest 430 Sales 2,50,000 Rent & 5,600 Sundry Creditors 60,000 1,320 Bank Overdraft 20,000 Conveyance Charges 7,000 Wages* 5,400 Sales Returns 1,50,000 Purchases 60,000 Opening Stock 22,000 Drawings 1,350 Trade Expenses 11,200 Salaries* 840 Advertising 600 Discount 800 Bad Debts 12,000 Business Premises* 10,000 Furniture & Fixtures* 2,060 Cash in Hand
TOTAL 4,02,600 TOTAL 4,02,600 Additional Information (a) Closing Stock Rs.90,000. (b) Provide Depreciation on Premises at 2.5%, Plant & Machinery 7.5%, Furniture 10%. (c) Outstanding Rent Rs.500 and Outstanding Wages Rs.400. (d) Prepaid Insurance Rs.300 and Prepaid Salaries Rs.700 Dr.P.Neelakantan-Faculty -SMM Page 4

Trail Balance Items will be posted in one place only Additional Information will be posted in two places LHS of Trial Balance will go to - LHS of Trading A/c (OR) - LHS of P/L A/c (OR) - Assets of Balance Sheet RHS of Trial Balance will go to - RHS of Trading A/c (OR) - RHS of P/L A/c (OR) - Liabilities of Balance Sheet Postings of Items Can be Done by - Concept Method - Side By Side Method - Remembrance Method 15 / 23 2 /4 14 / 16

Trading Account Left Hand Side ( Direct Expenses) Right Hand Side ( Direct Incomes) To Opening Stock 60000 To Purchases 150000 By Sales 250000 (Less) Purchase Returns 2600 147400 ( Less ) Sales Returns 5400 244600 To Wages 7000 (Add) Outstanding 400 TO GROSS PROFIT TOTAL By Closing Stock 7400 119800 334600 TOTAL 334600 90000

Profit / Loss Account Left Hand Side( In-Direct Expenses) Right Hand Side( In- Direct Incomes) To Interest To Rent & Insurance 5600 (Add) Outstanding Rent 500 (Less) Prepaid Insurance 300 To Conveyance Charges To Trade Expenses
Dr.P.Neelakantan-Faculty -SMM

430

BY GROSS PROFIT

119800

5800 1320 1350


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To Salaries 11200 (Less) Prepaid Salaries 700 To Advertising To Discount To Bad Debts To Plant & Machinery Dep To Business Premises Dep To Furniture & Fixtures Dep TO NET PROFIT

10500 840 600 800 1500 300 1000 95360

TOTAL

119800

TOTAL

119800

Balance Sheet Liabilities Capital 70000 ( Less) Drawings 22000 (ADD)NET PROFIT 95360 Sundry Creditors Bank Overdraft Outstanding Wages Outstanding Rent Assets Debtors Plant & Machinery 20000 (Less) Depreciation 7.5% 1500 143360 60000 20000 400 500 Business Premises 12000 (Less) Depreciation 2.5% 300 Furniture & Fixtures 10000 (Less) Depreciation 10% 1000 Cash in Hand Closing Stock Prepaid Salaries Prepaid Insurance TOTAL
Dr.P.Neelakantan-Faculty -SMM

92 000 18500

11700

9000 2060 90000 700 300 224260


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224260

TOTAL

Trial Balance of Company B as on 31-March -2009 Debit Balances Credit Balances Particulars Rs. Particulars Rs. Land & Buildings 42,000 Capital 58,000 Machinery 20,000 Loan @ 6% 4,000 Patents 7,500 Returns Outwards 500 Opening Stock 5,760 Sales 98,780 Sundry Debtors 11,000 Sundry Creditors 6,300 Purchases 40,675 Bills Payable 9,000 Cash in Hand 540 Cash at Bank 2,630 Bills Receivable 3,500 Return Inwards 680 Wages 8,480 Fuel & Power 4,730 Carriage on Sales 3,200 Carriage on Purchase 2,040 Salaries 15,000 General Expenses 3,000 Insurance 480 Interest 120 Drawings 5,245
TOTAL 176580 TOTAL 176580

Additional Information

(a) Closing Stock Rs.6,800 (b) The manager is entitled to a commission of 5% on net profits after charging such commission (Before Charging) (c) Stock Destroyed by fire was Rs.600 and insurance company accepted the claim for Rs.360 (d) A bill for Rs.1,000 included in bills receivable has been dishonored

Dr.P.Neelakantan-Faculty -SMM

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