by Statement of Profit and Loss and Balance Sheet (Vertical Form) for a proprietary concern with common adjustments, including:
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Depreciation
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Outstanding Expenses
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Prepaid Expenses
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Outstanding Incomes
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Incomes Received in Advance
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Provision for Doubtful Debts
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Interest on Drawings
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Interest on Capital
🧾 Trial Balance as on 31st March 2025
| Particulars | Debit (₹) | Credit (₹) |
|---|---|---|
| Capital | 3,00,000 | |
| Drawings | 30,000 | |
| Interest on Capital | ||
| Interest on Drawings | ||
| Land and Building | 2,00,000 | |
| Furniture | 50,000 | |
| Debtors | 1,00,000 | |
| Provision for Doubtful Debts (Old) | 5,000 | |
| Creditors | 60,000 | |
| Cash in hand | 10,000 | |
| Bank Balance | 40,000 | |
| Sales | 3,50,000 | |
| Purchases | 2,00,000 | |
| Returns Inward (Sales Returns) | 5,000 | |
| Returns Outward (Purchase Returns) | 3,000 | |
| Salaries | 60,000 | |
| Rent | 20,000 | |
| Insurance Premium | 6,000 | |
| Commission Received | 10,000 | |
| Bad Debts | 2,000 | |
| Total | 7,23,000 | 7,23,000 |
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Depreciation on Furniture @ 10%, Building @ 5%
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Salaries Outstanding ₹5,000
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Rent Paid in Advance ₹2,000
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Commission Received but not yet earned ₹1,000
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Create a new provision for doubtful debts @ 5% on debtors
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Interest on Capital @ 10%
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Interest on Drawings @ ₹1,500
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Insurance includes ₹1,000 prepaid
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Outstanding Commission ₹2,000 (not yet received)
📊 Statement of Profit and Loss for the Year Ended 31st March 2025
(Vertical Form)
| Particulars | Amount (₹) |
|---|---|
| Revenue from Operations: | |
| Sales | 3,50,000 |
| Less: Sales Returns | (5,000) |
| Net Revenue | 3,45,000 |
| Add: Outstanding Commission | 2,000 |
| Less: Unearned Commission Received | (1,000) |
| Total Revenue | 3,46,000 |
| Expenses: | |
| Purchases | 2,00,000 |
| Less: Purchase Returns | (3,000) |
| Net Purchases | 1,97,000 |
| Salaries | 60,000 |
| Add: Outstanding Salaries | 5,000 |
| Total Salaries | 65,000 |
| Rent | 20,000 |
| Less: Prepaid Rent | (2,000) |
| Net Rent | 18,000 |
| Insurance | 6,000 |
| Less: Prepaid Insurance | (1,000) |
| Net Insurance | 5,000 |
| Bad Debts (given) | 2,000 |
| Add: New Provision (5% of ₹1,00,000) = 5,000 | |
| Less: Old Provision | (5,000) |
| Net Bad Debts + Provision | 2,000 |
| Depreciation on Furniture (10% of 50,000) | 5,000 |
| Depreciation on Building (5% of 2,00,000) | 10,000 |
| Interest on Capital (10% of ₹3,00,000) | 30,000 |
| Add: Interest on Drawings (Income) | (1,500) |
| Total Expenses | 3,28,500 |
| Net Profit | 17,500 |
(Vertical Format)
A. Equity and Liabilities
| Particulars | Amount (₹) |
|---|---|
| 1. Capital | |
| Original Capital | 3,00,000 |
| Add: Net Profit | 17,500 |
| Add: Interest on Capital | 30,000 |
| Less: Drawings | (30,000) |
| Less: Interest on Drawings | (1,500) |
| Adjusted Capital | 3,16,000 |
| 2. Current Liabilities | |
| Creditors | 60,000 |
| Outstanding Salaries | 5,000 |
| Commission Received in Advance | 1,000 |
| Total Liabilities | 66,000 |
| Total Equity and Liabilities | 3,82,000 |
| Particulars | Amount (₹) |
|---|---|
| 1. Non-Current Assets | |
| Land and Building | 2,00,000 |
| Less: Depreciation | (10,000) |
| Net Value | 1,90,000 |
| Furniture | 50,000 |
| Less: Depreciation | (5,000) |
| Net Furniture | 45,000 |
| 2. Current Assets | |
| Debtors | 1,00,000 |
| Less: New Provision (5%) | (5,000) |
| Net Debtors | 95,000 |
| Prepaid Rent | 2,000 |
| Prepaid Insurance | 1,000 |
| Outstanding Commission (Receivable) | 2,000 |
| Cash in Hand | 10,000 |
| Bank Balance | 40,000 |
| Total Assets | 3,82,000 |
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