Profit and Loss Account Solution (SEE)

 

1. From the following transactions of Ganesh Company, prepare profit and loss account for the year ended 31^st Dec, 2020 to determine the net profit or net loss:   

Gross profit….. Office rent… Salaries………….. Printing and stationery… Discount allowed…… Telephone charges….

Rs. 2,70,500 13,000 20,000 10,000 1,000 8,500

Carriage outward………….. Advertisement…..….... Legal charges………... Bank charges……….. Commission received ……… Discount received…………....

Rs. 13,000 20,000 10,000 1,000  3,000 5,000

Solution:

Profit and loss account of

Ganesh Company

For the year ended 31^st Dec, 2020

           Dr.                                                                                                                                       Cr.

Particulars	Amount	Particulars	Amount
To Office rent… To Salaries To Printing and stationery To Discount allowed To Telephone charges To Carriage outward To Advertisement To Legal charges To Bank charges To Net Profit c/d (Cr. – Dr.)	13,000 20,000 10,000 1,000 8,500 13,000 20,000 10,000 1,000 1,91,500	By Gross profit By Commission received By Discount received	2,70,000 3,000 2,000
	2,75,000		2,75,000

 

2. Prepare a profit and loss account of trading concern for the year ended 30 Chaitra, 2077 to ascertain the net profit or net loss:   

Gross profit….. Rent, rates and taxes Salaries………….. Carriage outward… Advertisement…… Discount received….

Rs. 4,28,000 1,10,000 1,20,000 19,000 25,000 6,000

Repair and maintenance….. Audit fees…….…..….... Rent received………... Postage and telegrams Commission allowed ……… Other office expense……....

Rs. 12,000 17,000 10,500 7,000  9,000 8,000

Solution:

Profit and loss account of

Trading Concern

For the year ended 30 Chaitra, 2077

           Dr.                                                                                                                                       Cr.

Particulars	Amount	Particulars	Amount
To Rent, rates and taxes To Salaries To Carriage outward To Advertisement To Repair and maintenance To Audit fees . To Postage and telegrams To Commission allowed    To Other office expense To Net Profit c/d (Cr. – Dr.)	1,10,000 1,20,000 19,000 25,000 12,000 17,000 7,000  9,000 8,000 1,17,500	By Gross profit By Rent received By Discount received	4,28,000 10,500 6,000
	4,44,500		4,44,500

 

3. The following particulars are extracted from the books of Durga as on 31^st Ashadh, 2077. You are required to prepare a profit and loss account:   

General expense. Gross profit….. Establishment expenses Bad debts………….. Travelling expenses… Interest on investment

Rs. 67,000 5,01,000 68,000 12,000 80,000 27,000

Miscellaneous receipts….. Communication charges… Carriage on sales………... Depreciation on assets Electricity charges ………

Rs. 16,000 13,000 29,000 31,000  22,000

Solution:

Profit and loss account of

Durga Concern

For the year ended 31^st Ashadh, 2077

           Dr.                                                                                                                                       Cr.

Particulars	Amount	Particulars	Amount
To General expense. To Establishment expenses To Bad debts………….. To Travelling expenses… To Communication charges… To Carriage on sales………... To Depreciation on assets To Electricity charges ……… To Net Profit c/d (Cr. – Dr.)	67,000 68,000 12,000 80,000 13,000 29,000 31,000  22,000 2,22,000	By Gross profit By Miscellaneous receipts….. By Interest on investment	5,01,000 16,000 27,000
	5,44,000		5,44,000

 

 

4. The following particulars are extracted from the books of Durga as on 31^st Ashadh, 2077. You are required to prepare a profit and loss account:   

Gross loss Salary Establishment charges Bad debts written off Miscellaneous expenses Carriage on sale Interest on investment

Rs. 1,02,000 81,000 45,000 30,000 49,000 39,000 25,000

Travelling expenses Depreciation Electricity charges Telephone charges Rent, rates and taxes Legal expenses Insurance premium

Rs. 27,000 18,000 13,500 11,600  55,000 10,000 7,000

Solution:

Profit and loss account of

Durga Concern

For the year ended 31^st Ashadh, 2077

           Dr.                                                                                                                                       Cr.

Particulars	Amount	Particulars	Amount
To Gross loss To Salary To Establishment charges To Bad debts written off To Miscellaneous expenses… To Carriage on sale To Travelling expenses To Depreciation To Electricity charges To Telephone charges To Rent, rates and taxes To Legal expenses To Insurance premium	1,02,000 81,000 45,000 30,000 49,000 39,000 27,000 18,000 13,500 11,600  55,000 10,000 7,000	By Interest on investment By Net loss c/d (Dr. – Cr.)	25,000 4,63,100
	4,88,100		4,88,100