Saurin sir

Std- 11 ©e

After preparing all subsidiary books a trial

balance is prepared at the end of financial year to

Know the Arithmetical accuracy of the account.

Saurin sir

Std- 11 ©e

DEBIT BALANCE CREDIT BALANCE

Purchase a/c debit Sales a/c credit

Sales return Purchase return

Drawings Capital

Debtors[customers] receivables Creditors[suppliers] debts

Bills receivable Bills payable

Bank balance Bank overdraft

Loan to Rahul Loan from Rahul

Contributions to provident fund Provident fund

Contributions to General reserve General reserve

Saurin sir

Std- 11 ©e

DEBIT BALANCE CREDIT BALANCE

Investments

Interest on debenture

Interest on bank overdraft

Interest on Capital

Interest on loan from Rahul

Prepaid expenses

Undeceived income

Discount reserve on creditors

Discount allowed

Debenture issue

Interest on investment

Interest on bank balance

Interest on drawing

Interest on loan to Rahul

Unpaid expenses

Pre-received income

Discount reserve on debtors

Discount received

Saurin sir

Std- 11 ©e

DEBIT BALANCE CREDIT BALANCE

Bad debts

Brokerage paid

Commission paid

Rent paid

Advertisement expenses

Loss by fire

Charity expenses

Bad debts recovered

Brokerage received

Commission received

Rent received

Advertisement

Goods destroyed by fire

Goods given for charity

Loss by theft

Gross loss

Net loss

Goods stolen away

Gross profit

Net profit

Saurin sir

Std- 11 ©e

Tools and equipments

Goodwill

Vehicles

Furniture

Plant and machinery

Land and building

Leasehold assets

Share of reliance

Patents

Trade mark

Copy rights

Deposits

Cash balance

Opening stock of goods

goods withdrawn

bad debts reserve

dividend on shares

apprentice premium

Saurin sir

Std- 11 ©e

Wages

Railway freight

Octroi

Custom duty

Demurrage

Dock charges

Tolai

Mahajan Lago

Manufacturing expenses

Salary rent and taxes

Printing and stationery

Postage and telegram

Electricity expenses

Insurance premium

Saurin sir

Std- 11 ©e

Income tax

Carriage inward

Carriage outward

Travelling expenses

Legal expenses

Audit fees

Show room expenses

Packing expenses

Bank charges

Depreciations on assets

Saurin sir

Std- 11 ©e

Then after Final a/c are prepared at the end of

accounting period, to know financial positions of

the business.

Dr Cr Dr Cr Dr Cr

Saurin sir

Std- 11 ©e

Trading is an account [not a statement] Where transactions of

goods and purchase expenses are recorded. Trading account

provides us either Gross profit or gross loss.

P/L is an account [not a statement] Where transactions of

Business expenses, losses and Income , gains are recorded.

P/L account provides us either Net profit or net loss.

B/S is a statement [and not a a/c] Where transactions of

personal account and assets are recorded.

Saurin sir

Std- 11 ©e

Particulars Amt. Rs. Amt. Rs.

To opening stock

Particulars

To Purchases 0000

- Purchase Return - 000

To Wages

To Wages and Salary

To Carriage inward

To Carriage on purchase

To Railway Freight

To Octroi

To import duty

To custom duty

To port charges

To Excise duty

To mahajan lago

To Demurage

To Darmayo

To factory expenses

To Royalty

To Depreciation of Factory building/plant/machinery

To Gross profit G.P.=Total Credit - Total Debit

By Sales 0000

- Sales return - 000

By sales of scrap

By goods stolen away

By goods Destroyed by fire

By goods Destroyed by Accident

By goods taken for personal use

By goods given as charity

By goods given as sample

By goods given as donation

By Closing stock

000

000 1

2

3

4

5

6

7

8

9

10

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

1 to 19 Total Debit

1 to 10 Total Credit

To Gross Loss G.L.=Total Debit - Total Credit

Total Credit

Trading A/c of shri. . . . . . . . . for the year ended . . . . . . . .

Total Credit

Saurin sir

Std- 11 ©e

Prepare Trading A/c of Mr. A from balances given as below for 31-3-10.

Stock [ 1-4-09 ]

Purchase

Octroi

sales

Purchase return

24,000

56,000

1,520

84,000

520

Railway Freight

Carriage inward

Wages

Goods given as charity

Sales return

800

1,080

1,720

2,820

2,400

Cost price of closing stock of goods as on 31-3-10 was Rs. 16,500.

Saurin sir

Std- 11 ©e

84,60084,600

Particulars Amt. Rs. Particulars Amt. Rs.

To opening stock 24,000 By Sales 84,000

To Purchases 56,000

- Purch. Return - 520 55,480

To Octroi

To Railway Freight

To Carriage inward

To Wages

1,520

800

1,080

1,720

To Gross profit 16,320

- Sales return - 2,400 81,600

By goods given as charity 2,820

By Closing stock 16,500

1,00,9201,00,920

1,00,920

1,00,920

=1,00,920 - 84,600 = 16,320

Trading A/c of shri Mr. A. for the year ended 31-3-10

Dr Cr

Q. Prepare Trading A/c of Mr. A from balances given as below for 31-3-10.

Cost price of closing stock of goods as on 31-3-10 was Rs. 16,500.

Stock [ 1-4-09 ]Purchase OctroisalesPurchase return

24,00056,000

1,52084,000

520

Railway Freight Carriage inwardWages Goods given as charity Sales return

8001,0801,720 2,8202,400

Saurin sir

Std- 11 ©e

Prepare Trading A/c of Mr. B. from balances given as below for 31-3-10

Cost price of closing stock of goods as on 31-3-10 was Rs. 20,000.

Stock [ 1-4-09 ]

Purchase

sales

Wages

Purchase return

sales return

carriage inward

Railway Freight

20,000

60,400

80,800

2,000

400

800

800

1,200

Goods given as charity

Octroi

Custom duty

Port charges

Goods destroy as fire

mahajan Lago

Demurrage

Goods taken for personal use.

1,400

1,000

2,000

500

5,000

400

600

3,000

Saurin sirStd- 11 ©e

Trading A/c of shri Mr. B. for the year ended 31-3-10

Dr Cr

Particulars Particulars Amt. Rs. Amt. Rs.

To opening stock 20,000

To Purchases 60,400

- Purch. Return - 400

To Wages

To Carriage inward

To Railway Freight

To Octroi

To custom duty

To port charges

To mahajan lago

To Demurage

60,000

2,000

800

1,200

1,000

2,000

500

400

600

88,500

To Gross profit 20,900

1,09,400

By Sales

- Sales return

By goods given as charity

By goods Destroyed by fire

By goods taken for personal use

By Closing stock

80,800

- 800 80,000

1,400

5,000

3,000

20,000

88,500 =

1,09,400

1,09,4001,09,400

20,900= 1,09,400 -

88,500

Prepare Trading A/c of Mr. B. from balances given as below for 31-3-10

Cost price of closing stock of goods as on 31-3-10 was Rs. 20,000.

Stock [ 1-4-09 ]Purchase salesWagesPurchase return sales return carriage inward Railway Freight

20,00060,40080,800 2,000

400800800

1,200

Goods given as charity OctroiCustom duty Port chargesGoods destroy as fire mahajan Lago DemurrageGoods taken for personal use.

1,4001,000 2,000

5005,000

400600

3,000

Q.

Saurin sir

Std- 11 ©eSpecimen of PROFIT AND LOSS ACCOUNT

PROFIT AND LOSS A/c of shri. . . . . . . . . for the year ended . . . .. . .

Particulars Amt. Rs. Amt. Rs. Particulars

To Gross loss

[transferred from trading a/c]

By Gross profit

[transferred from trading a/c]

Administrative expenses To Salary

To RentTo Insurance premium

To Taxes To Postage expenses

To Stationery and printing ex.To Legal expenses

To Audit fees

To Electricity expenses

To Repairing expenses

To Contribution to provident fund

Incomes [ Revenues ]

By Discount received

By Rent received

By Commission receivedBy Brokerage received

By Interest received

By Interest on Investment By Interest on loan given By Interest on Fixed deposited

By Interest on Drawings

By Bad debts recovered

By Profit on sale of assets

By Sales of old news paper

More ……

Dr. Cr.

Selling & Distribution expenses

To carriage outward To Salary of salesman

To Travelling expenses of salesman

To Advertisement expenses

To Discount allowedTo Delivery van expenses

.

Saurin sir

Std- 11 ©eSpecimen of PROFIT AND LOSS ACCOUNT

PROFIT AND LOSS A/c of shri. . . . . . . . . for the year ended . . . .. . .

Particulars Amt. Rs. Amt. Rs. Particulars

To Show room expenses

To Godown expensesTo packing expenses

Postage and telegram Printing and stationery

Rent Interest paid on loan taken

To NET Loss

N.L.=Total Debit - Total Credit

Dr. Cr.

Saurin sir

Std- 11 ©e

Prepare P/L a/c of Mr. A from balances given as below for 31-3-10

Gross profitSalariesAdvertisement expenses postage and telegram Printing and stationery Rent Interest paid on loan taken Discount allowed Discount received Interest paid on Bank overdraft

Rs.30,00010,000

800500360

2,500800

1,2001,500

500

Travelling expenses packing expenses Rent and Taxes Insurance premium Commission received Dividend received Donations paid carriage outward apprentices premium

Rs.5,200

4001,800

1,5003,6003,400

700960320

Saurin sirStd- 11 ©e

Dr Cr

Profit and loss A/c of Mr. A for the year ended 31-3-10

Particulars Amt. Rs. Amt. Rs. Particulars

To Salaries

To Advertisement expenses

To postage and telegram

To Printing and stationery

To Rent

To Discount allowed

To Interest paid on Bank O/D

To Travelling expenses

To packing expenses

To Rent and Taxes

To Insurance premium

To Donations paid

To carriage outward

10,000

800

500

360

2,500

800

1,200

500

5,200

400

1,800

1,500

700

960

To Interest paid on loan taken

By Gross profit

By Discount received

By Commission received

By Dividend received

By apprentices premium

30,000

1,500

3,600

3,400

320

11,600To Net profit

38,820 38,820

38,820

38,820

27,22027,220

= 38,820 - 27,220 = 11,600

Prepare P/L a/c of Mr. A from balances given as below for 31-3-10

Gross profitSalariesAdvertisement expenses postage and telegram Printing and stationery Rent Interest paid on loan taken Discount allowed Discount received Interest paid on Bank overdraft

Rs.30,00010,000

800500360

2,500800

1,2001,500

500

Travelling expenses packing expenses Rent and Taxes Insurance premium Commission received Dividend received Donations paid carriage outward apprentices premium

Rs.5,200

4001,8001,5003,6003,400

700960320

Prepare P/L a/c of Mr. A from balances given as below for 31-3-10

Gross profitSalariesAdvertisement expenses postage and telegram Printing and stationery Rent Interest paid on loan taken Discount allowed Discount received Interest paid on Bank overdraft

Rs.30,00010,000

800500360

2,500800

1,2001,500

500

Travelling expenses packing expenses Rent and Taxes Insurance premium Commission received Dividend received Donations paid carriage outward apprentices premium

Rs.5,200

4001,8001,5003,6003,400

700960320

Q.

Q.