The trial balance provided is for Adhithya & Dharmaraj Co. as of December 31, 2005. It includes asset and liability accounts such as plant and machinery, building, sundry debtors, bank balances, capital, as well as income and expense accounts like purchases, wages, carriage outward, sales, interest received. Closing stock is valued at Rs. 90,000. The required tasks are to prepare the trading and profit & loss account for the year ended December 31, 2005 and a balance sheet as of that date.

1. Q1. The following trial balance have been taken out from the books of Adhithya & Dharmaraj Co.as on 31st
December, 2005. [20]
Dr. Cr.
Rs Rs
Plant and Machinery 100,000
Opening stock 60,000
Purchases 160,000
Building 170,000
Carriage inward 3,400
Carriage outward 5,000
Wages 32,000
Sundry debtors 100,000
Salaries 24,000
Furniture 36,000
Trade expense 12,000
Discount on sales 1,900
Advertisement 5,000
Bad debts 1,800
Drawings 10,000
Bills receivable 50,000
Insurance 4,400
Bank balances 20,000
Sales 480,000
Interest received 2,000
Sundry creditors 40,000
Bank loan 100,000
Discount on purchases 2,000
Capital 171,500
795,500 795,500
Closing stock is valued at Rs. 90,000
Required: Prepare the trading and profit and loss account of the business for the year ended 31.12.2005 and a
balance sheet as at that date.

2. 2. From the following balances extracted from the books of DMTA & Co., prepare a trading and profit
and loss account and balance sheet on 31st December, 1991. 20
$ $
Stock on 1st January 10,000 Returns outwards 500
Bills receivables 4,500 Trade expenses 200
Purchases 39,000 Office fixtures 2,000
Wages 2,800 Cash in hand 500
Insurance 700 Cash at bank 4,750
Sundry debtors 30,000 Tent and taxes 1,100
Carriage inwards 800 Carriage outwards 1,450
Commission (Dr.) 800 Sales 60,000
Interest on capital 700 Bills payable 3,000
Stationary 450 Creditors 18,650
Returns inwards 2,300 Capital 17,900
The stock on 21st December, 1991 was valued at $25,000.
3. From the following balances extracted from the books of Dharmaraj & Co., prepare a trading and
profit and loss account and balance sheet on 31st December, 1991.
Rs Rs
Stock on 1st January 11,000 Returns outwards 500
Bills receivables 4,500 Trade expenses 200
Purchases 39,000 Office fixtures 1,000
Wages 2,800 Cash in hand 500
Insurance 700 Cash at bank 4,750
Sundry debtors 30,000 Tent and taxes 1,100
Carriage inwards 800 Carriage outwards 1,450
Commission (Dr.) 800 Sales 60,000
Interest on capital 700 Bills payable 3,000
Stationary 450 Creditors 19,650
Returns inwards 1,300 Capital 17,900
The stock on 21st December, 1991 was valued at Rs25,000.