Example 1 (Worked Example on Trading and Profit and Loss and Balance Sheet)

From the following balances
extracted from the books of X and Co. Prepare a trading account and profit and
loss account and balance sheet on 31st December, 1991
Stock on 1st January                                              11,000
Bills receivables                                                    
4,500
Purchases                                                             39,000
Wages                                                                  
2,800
Insurance                                                                  700
Sundry debtors                                                     30,000
Carriage inwards                                                        800
Commission (Dr.)                                                       800
Interest on capital                                                      700
Stationery                                                                  
450
Return inwards                                                        1,300
Return outwards                                                         500
Trade expenses                                                          200
Office fixtures                                                         1,000
Cash in hand                                                              500
Cash in bank                                                           4,750
Rent and taxes                                                        1,100
Carriage outwards                                                   1,450
Sales                                                                     60,000
Bills payable                                                            3,000
Creditors                                                               19,650
Capital                                                                  17,900
The stocks on 21st
December, 1991 was valued at N25,000

Solution
X
and Co.
Trading and Profit and
Loss Account for the year ended 31st Dec. 1991.
  

X and Co.
Balance Sheet as at 31st
December, 1991

 

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