Surajmal Enterprises maintain their books of accounts under single entry system. The Balance Sheet as on 31st March, 2024 was as follows:…

CA Foundation · Accounting · MTP · September 2025
Surajmal Enterprises maintain their books of accounts under single entry system. The Balance Sheet as on 31st March, 2024 was as follows: Liabilities ₹ Assets ₹ Capital A/c 6,75,000 Furniture & fixtures 1,50,000 Trade creditors 7,57,500 Stock 9,15,000 Outstanding exp. 67,500 Trade debtors 3,12,000 Prepaid insurance 3,000 Cash in hand & at bank 1,20,000 15,00,000 15,00,000 The following was the summary of cash and bank book for the year ended 31st March, 2025: Receipts ₹ Payments ₹ Cash in hand & at Bank on 1st April, 2024 1,20,000 Payment to trade creditors 1,24,83,000 Cash sales 1,10,70,000 Sundry expenses paid 9,31,050 Drawings 3,60,000 Receipt from Debtors 27,75,000 Cash in hand & at Bank on 31st March, 2025 1,90,950 1,39,65,000 1,39,65,000 Additional Information: 1) Discount allowed to trade debtors and received from trade creditors amounted to 54,000 and - 42,500 respectively, (for the year ended 31st March. 2025) 2) Annual fire insurance premium of 9,000 was paid every year on 1st August for the renewal of the policy. 3) Furniture & fixtures were subject to depreciation @ 15% p.a. or diminishing balance method. 4) The following are the balances as on 31st March, 2025: Stock - 9,75,000 Trade debtors - 3,43,000 Outstanding expenses - 55,200 5) Gross profit ratio of 10% on sales in maintained throughout the year. You are required to prepare Trading and Profit & Loss account for the year ended 31st March, 2025, and Balance Sheet as on that date.

Suggested Answer and Working Notes:

Trading and Profit and Loss Account for the year ended 31.3.2025 Particulars ₹ Particulars ₹ To Opening stock 9,15,000 By Sales Cash 1,10,70,000 Credit 28,60,000 To Purchases (bal fig) 1,25,97,000 1,39,30,000 To Gross Profit @ 10% 13,93,000 By Closing stock 9,75,000 1,49,05,000 1,49,05,000 To Expenses (WN 2) 9,18,750 By Gross Profit 13,93,000 To Discount Allowed 54,000 By Discount Received 42,500 To Depreciation 22,500 To Net profit* 4,40,250 14,35,500 14,35,500 Balance Sheet as on 31.3.2025 Liabilities ₹ Assets ₹ Capital A/c Furniture 1,50,000 Opening balance 6,75,000 (-) Depreciation (22,500) (+) Profit 4,40,250 1,27,500 11,15,250 Debtors (WN 3) 3,43,000 (-) Drawings (3,60,000) Stock 9,75,000 7,55,250 Cash 1,90,950 Creditors (WN 1) 8,29,000 Prepaid Insurance 3,000 Outstanding exp 55,200 16,39,450 16,39,450 W.N. 1: Creditors A/C Liabilities ₹ Assets ₹ By Bal b/d 7,57,500 To Bank 1,24,83,000 By Purchase 1,25,97,000 To Discount 42,500 To Bal c/d (bal fig) 8,29,000 1,33,54,500 1,33,54,500 W.N. 2: Expenses A/c (Incl. insurance) Particulars ₹ Particulars ₹ To Prepaid 3,000 By Payable 67,500 To Bank 9,31,050 By P&L (bal fig) 9,18,750* To Payable 55,200 By Prepaid (9,000*4/12) 3,000 9,89,250 9,89,250 W.N. 3: Debtors A/c Particulars ₹ Particulars ₹ To Bal b/d 3,12,000 By Cash 27,75,000 To Sales (bal fig) 28,60,000 By Discount 54,000 By Bal c/d (bal fig) 3,43,000 31,72,000 31,72,000

Topics: Accounts from Incomplete Records

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