Satish and Pramod are Partners. Prepare Trading Account and Profit and Loss Account for the year 31st March, 2019. You have to find out Gross Profit and Net Profit only.

Trial Balance as on 31st March, 2019

Debit Balance Amount Credit balance Amount 
Stock (01/04/2018) 8,700 Sales 68,000 
Purchases 18,300 Dividend 2,000 
Wages 1,000 Purchases Return 500 
Insurance 800 Sundry Creditors 13,000 
Unproductive Wages 1,400 10% Bank Loan 8,000 
Warehouse Rent 600 (w.e.f. 01/07/2018)  
Carriage Outward 1,200 Other Receipts 1,000 
Sales Return 600   
Export Duty 1,400   
Customs Duty 800   
Sundry debtors 40,000   
Investments 15,700   
Factory rent 1,600   
Postage & Telegram 400   
 92,500  92,500 
1. The Closing Stock is valued at 15,400.
2. Outstanding Wages 500.
3. Create provision for bad debts 800 and maintain R.D.D. 3% on Sundry Debtors.
4. Goods of 1,800 distributed as a free sample.
5. Goods of 2,000 were sold and delivered on 31st March 2019 but no entry is passed in the Books of Account.


Final Account
In the Books of Satish and Pramod

Trading A/c And Profit & Loss A/c for the year ended 31st march, 2019
Particulars Amount Amount Particulars Amount Amount 
To Opening Stock  8,700 By Sales 68,000  
(+) Unrecorded Sales 2,000  
(-) sales return (600) 69,400 
To Purchases 18,300     
(-) Purchase Return (500) 17,800 
To Wages 1,000     
(+) Outstanding Wages 500 1,500 
To Customs Duty  800 By Closing Stock  15,400 
To Factory Rent  1,600 By Goods distributed
as free sample 
To Gross Profit   56,200    
  86,600   86,600 

To Bad debts (A) 800  By Gross Profit   56,200 
(+) R.D.D.  (A) 1,236 2,036 
To Insurance  800 By Dividend  2,000 
To Unproductive wages  1,400 By Other Receipts  1,000 
To Warehouse Rent  600    
To Carriage Outward  1,200    
To Export Duty  1,400    
To Postage & Telegram  400    
To Advertisement  1,800    
To Interest on loan   600    
To Net Profit  48,964    
  59,200   59,200 


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