Question - 09

Prepare profit and loss A/c from the following balances :

Trial Balance
Gross profit (Cr.) Rs. 8,500
General Exp. Rs. 420
Electic charges Rs. 200
Rent Rs. 850
Discount allowed Rs. 200
Salary Rs. 3,500
Discount Received (Cr.) Rs. 900
Commission Rs. 500
Trade Exp. Rs. 200
Carriage outward Rs. 100.

Adjustment :
  1. Interest allowed on capital Rs. 400
  2. Interest charge on drawing Rs. 600
  3. Prepaid Exp. Rs. 30
  4. Unpaid rent Rs. 150
  5. Closing Stock Rs. 14,000.