Question

Prepare Trading Account, Profit and Loss Account, and Balance Sheet of M/s Sharma and Sons from the following information for the year ending 31^st March, 2023 when closing stock was valued at Rs. 20,000.
Trial Balance as on 31-3-2023

Name of Account	Debit Balance (Rs.)	Credit Balance (Rs.)
Opening Stock	19,400	–
Purchase and Sale	6,50,000	7,80,000
Returns	20,000	20,000
Debtors and Creditors	38,000	87,200
Bills Payable	–	25,200
Machinery	1,00,000	–
Building	2,50,000	–
Bank	10,000	–
Wages	40,000	–
Salaries	40,000	–
Interest	15,000	–
Capital	–	3,60,000
\(Total\)	12,72,400	12,72,400

Hint:

Trading Account helps determine Gross Profit or Loss by comparing direct revenues and expenses.

Answer 1

Trading Account for the year ending 31^st March, 2023:

\(Particulars\)	Rs.	\(Particulars\)	Rs.
Opening Stock	19,400	Sales	7,80,000
Purchases	6,50,000	Closing Stock	20,000
Wages	40,000	Gross Loss c/d	1,09,400
Total	7,09,400	Total	7,09,400