Question

1. From the following information’s of du Ltd. on 31st March, 2019 you are required to prepare the Trading, Profit and Loss A/c and Balance Sheet:

Debit Balances	Amount (AED)	Credit Balances	Amount (AED)
Rent paid	1200	Capital	7100
Cash at bank	6250	Sales	72,000
Stock	12500	Sundry creditors	22,000
B/R	3000	Bills Payable	4150
Sundry debtors	32,500	Return outwards	500
Furniture	2000
Rent & Taxes	1300
Carriage inward	1450
Purchases	37,500
Salaries	3850
Commission	750
Postage	250
Return inward	1300
Interest	1900
	105,750		105,750

Answer 1

Trading A/c :

Sales =72000

Expenses ;

Purchases less return outwards = 37500 - 500 = 37000

Return inward = 1300

Carriage inward = 1450

Gross Profit = 32250

Profit & Loss A/c

Gross Profit =32250

Non - Operating expenses :

Rent paid = 1200

rent & taxes = 1300

salaries = 3850

commission = 750

Postage = 250

Interest = 1900

Net Profit - Gross Profit. _ Non-operating expenses = 23000

Balance Sheet :

Assets :

Cash at bank = 6250

Stock = 12500

B/R = 3000

Furniture = 2000

Sundry debtors = 32500

Total assets = 56250

Liabilities :

Sundry creditors = 22000

bills payable = 4150

Equity:

Capital = 7100

reserves and surplus (net profit) = 23000

Liabilities + equity = 56250 = Assets