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    Solution Example 3

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    ashish panwar
    This document contains the trading account, profit and loss account, and balance sheet for Pranav for the year ending March 31, 2021. The trading account shows a gross profit transfer of Rs. 34,300 to the profit and loss account. The profit and loss account lists various expenses totaling Rs. 36,470 with a net profit transfer of Rs. 20,495 to the balance sheet. The balance sheet lists assets of Rs. 1,11,495 including fixed assets, investments, and current assets, with corresponding liabilities and capital of the same amount.

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    Solution Example 3

    Uploaded by

    ashish panwar
    13 views2 pages
    This document contains the trading account, profit and loss account, and balance sheet for Pranav for the year ending March 31, 2021. The trading account shows a gross profit transfer of Rs. 34,300 to the profit and loss account. The profit and loss account lists various expenses totaling Rs. 36,470 with a net profit transfer of Rs. 20,495 to the balance sheet. The balance sheet lists assets of Rs. 1,11,495 including fixed assets, investments, and current assets, with corresponding liabilities and capital of the same amount.

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    This document contains the trading account, profit and loss account, and balance sheet for Pranav for the year ending March 31, 2021. The trading account shows a gross profit transfer of Rs. 34,300 to the profit and loss account. The profit and loss account lists various expenses totaling Rs. 36,470 with a net profit transfer of Rs. 20,495 to the balance sheet. The balance sheet lists assets of Rs. 1,11,495 including fixed assets, investments, and current assets, with corresponding liabilities and capital of the same amount.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    13 views2 pages

    Solution Example 3

    Uploaded by

    ashish panwar
    This document contains the trading account, profit and loss account, and balance sheet for Pranav for the year ending March 31, 2021. The trading account shows a gross profit transfer of Rs. 34,300 to the profit and loss account. The profit and loss account lists various expenses totaling Rs. 36,470 with a net profit transfer of Rs. 20,495 to the balance sheet. The balance sheet lists assets of Rs. 1,11,495 including fixed assets, investments, and current assets, with corresponding liabilities and capital of the same amount.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Example no.

    5
    Solution:
    Trading A/c of Pranav for the year ended on 31/03/2021
    Dr. Cr.
    Particulars Amount Particulars Amount
    Rs. Rs.
    To Unrecorded purchases 300 By Balance b/d 30,900
    By Goods withdrawn for 2,400
    household use.
    By Goods burnt by fire 4,000
    To Gross Profit (Transferred 34,300
    to Profit and Loss Account)

    37,300 37,300

    Profit and Loss A/c of Pranav for the year ended on 31/03/2021
    Dr. Cr.
    Particulars Amount Particulars Amount
    Rs. Rs.
    To Administrative Expense By Gross Profit (Transferred 34,300
    from Trading account)
    Salary 6,000 By Discount received 400
    Insurance, rates, taxes 450 By Interest on 12%
    Debentures 400
    To Selling – Distribution + Outstanding Interest 800 1,200
    Expenses
    Carriage Outwards 840 By Outstanding Brokerage 570
    Advertisement Suspense account 1,200
    written off
    To Financial Expenses
    Discount 600
    To Other Expenses - Losses
    Bad debts (T.B) 400
    +Bad debts (Adj.) 500
    +Bad debts reserve(Adj.) 1850
    2750
    - Bad debts reserve (T.B) 690 2060
    Loss on sale of Furniture 500
    Loss on Fire 800
    Depreciation:
    Furniture 525
    Machinery 3000 3525
    To Net Profit (Transferred to 20,495
    Capital A/c)
    36,470 36,470
    Shri Pranav’s Balance Sheet as on 31/03/21

    Liabilities Amount Amount Assets Amount Amount


    Rs. Rs. Rs. Rs.
    (1) Share Capital 72,900 (1) Fixed Assets
    +Net Profit +20,495 Plant & Machinery 30,000
    (Transferred from Less: Depreciation -3,000 27,000
    Profit and Loss A/c) at 10%
    93,395 Furniture 12,000
    Less: Drawings 8,000 Less: Furniture -1,500
    Sold 10,500
    85,395 Less: Depreciation -525 9,975
    @ 5%
    Less: Drawings for 2,400 82,995 (2) Investments
    goods
    Investments in 12% 20,000
    Debentures
    (2) Reserves & - (3) Current Assets
    Surplus Loans and
    Advances:
    Closing Stock 9,000
    (3) Secured loan - Debtors 37,500
    - Bad debts (Adj.) -500
    (4) Unsecured Loan - 37,000
    - Bad debts reserve -1,850 35,150
    (Adj.) at 5%
    (5) Current Advertisement 6000
    Liabilities & Suspense A/c
    Provisions
    Creditors 25,000 Less: Written off -1,200 4,800
    + Unrecorded 3,000 28,500 Insurance Company 3,200
    Purchases
    Cash Balance 1,000
    Outstanding interest 800
    on debentures
    Outstanding 570
    brokerage

    1,11,495 1,11,495

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