The document provides information about accounting concepts and principles related to trial balance, final accounts, trading account and profit and loss account. It defines that a trial balance is prepared at the end of the financial year to check the arithmetical accuracy of accounts. It also explains the format and components of trading account and profit and loss account and provides examples of how to prepare these accounts from given balances.

1. Std- 11
©e
Saurin sir
After preparing all subsidiary books a trial
balance is prepared at the end of financial year to
Know the Arithmetical accuracy of the account.

2. Std- 11
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Saurin sir
DEBIT BALANCE CREDIT BALANCE
Purchase a/c debit Sales a/c credit
Sales return Purchase return
Drawings Capital
Debtors[customers] receivables Creditors[suppliers] debts
Bills receivable Bills payable
Bank balance Bank overdraft
Loan to Rahul Loan from Rahul
Contributions to provident fund Provident fund
Contributions to General reserve General reserve

3. Std- 11
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Saurin sir
DEBIT BALANCE CREDIT BALANCE
Investments Debenture issue
Interest on debenture Interest on investment
Interest on bank overdraft Interest on bank balance
Interest on Capital Interest on drawing
Interest on loan from Rahul Interest on loan to Rahul
Prepaid expenses Unpaid expenses
Undeceived income Pre-received income
Discount reserve on creditors Discount reserve on debtors
Discount allowed Discount received

4. Std- 11
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Saurin sir
DEBIT BALANCE CREDIT BALANCE
Bad debts Bad debts recovered
Brokerage paid Brokerage received
Commission paid Commission received
Rent paid Rent received
Advertisement expenses Advertisement
Loss by fire Goods destroyed by fire
Charity expenses Goods given for charity
Loss by theft Goods stolen away
Gross loss Gross profit
Net loss Net profit

5. Std- 11
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Saurin sir
Tools and equipments goods withdrawn
Goodwill bad debts reserve
Vehicles dividend on shares
Furniture apprentice premium
Plant and machinery
Land and building
Leasehold assets
Share of reliance
Patents
Trade mark
Copy rights
Deposits
Cash balance
Opening stock of goods

6. Std- 11
©e
Saurin sir
Wages
Railway freight
Octroi
Custom duty
Demurrage
Dock charges
Tolai
Mahajan Lago
Manufacturing expenses
Salary rent and taxes
Printing and stationery
Postage and telegram
Electricity expenses
Insurance premium

7. Std- 11
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Saurin sir
Income tax
Carriage inward
Carriage outward
Travelling expenses
Legal expenses
Audit fees
Show room expenses
Packing expenses
Bank charges
Depreciations on assets

8. Std- 11
©e
Saurin sir
Then after Final a/c are prepared at the end of
accounting period, to know financial positions of
the business.
Dr Cr Dr Cr Cr Dr

9. Std- 11
©e
Saurin sir
Trading is an account [not a statement] Where transactions of
goods and purchase expenses are recorded. Trading account
provides us either Gross profit or gross loss.
P/L is an account [not a statement] Where transactions of
Business expenses, losses and Income , gains are recorded.
P/L account provides us either Net profit or net loss.
B/S is a statement [and not a a/c] Where transactions of
personal account and assets are recorded.

10. Std- 11
Trading A/c of shri. . . . . . . . . for the year ended . . . . . . . .
©e
Saurin sir
Particulars Amt. Rs. Particulars Amt. Rs.
To opening stock 1 By Sales 0000
To Purchases 0000 - Sales return - 000 000 1
- Purchase Return - 000 000 2
To Wages 3 By sales of scrap 2
To Wages and Salary 4 By goods stolen away 3
To Carriage inward 5 By goods Destroyed by fire 4
To Carriage on purchase 6 By goods Destroyed by Accident 5
To Railway Freight 7 By goods taken for personal use 6
To Octroi 8 By goods given as charity 7
To import duty 9 By goods given as sample 8
To custom duty 10 By goods given as donation 9
To port charges 11
To Excise duty 12 By Closing stock 10
To mahajan lago 13 1 to 10 Total Credit
To Demurage 14
To Darmayo 15
To factory expenses 16
To Royalty 17
To Depreciation of Factory 18
building/plant/machinery 19
1 to 19 Total Debit
To Gross profit To Gross Loss
G.P.=Total Credit - Total Debit G.L.=Total Debit - Total Credit
Total Credit Total Credit

11. Std- 11 ©e
Saurin sir
Prepare Trading A/c of Mr. A from balances given as below for 31-3-10.
Stock [ 1-4-09 ] 24,000 Railway Freight 800
Purchase 56,000 Carriage inward 1,080
Octroi 1,520 Wages 1,720
sales 84,000 Goods given as charity 2,820
Purchase return 520 Sales return 2,400
Cost price of closing stock of goods as on 31-3-10 was Rs. 16,500.

12. Std- 11 ©e
Saurin sir
Trading A/c of shri Mr. A. for the year ended 31-3-10
Dr Cr
Particulars Amt. Rs. Particulars Amt. Rs.
To opening stock 24,000 By Sales 84,000
To Purchases 56,000 - Sales return - 2,400 81,600
- Purch. Return - 520 55,480 By goods given as charity 2,820
To Octroi 1,520 By Closing stock 16,500
To Railway Freight 800 1,00,920
To Carriage inward 1,080
To Wages 1,720
Q. 84,600
Prepare Trading A/c of Mr. A from balances given as below for 31-3-10.
Stock [ 1-4-09 ] 24,000 Railway Freight 800
Purchase 56,000 Carriage inward 1,080
To Gross profit
Octroi 16,320
1,520 Wages 1,720
sales =1,00,920 - 84,600 = 16,320
84,000 Goods given as charity 2,820
Purchase return 520 Sales return 2,400
1,00,920 1,00,920
Cost price of closing stock of goods as on 31-3-10 was Rs. 16,500.

13. Std- 11 ©e
Saurin sir
Prepare Trading A/c of Mr. B. from balances given as below for 31-3-10
Stock [ 1-4-09 ] 20,000 Goods given as charity 1,400
Purchase 60,400 Octroi 1,000
sales 80,800 Custom duty 2,000
Wages 2,000 Port charges 500
Purchase return 400 Goods destroy as fire 5,000
sales return 800 mahajan Lago 400
carriage inward 800 Demurrage 600
Railway Freight 1,200 Goods taken for personal use. 3,000
Cost price of closing stock of goods as on 31-3-10 was Rs. 20,000.

14. Std- 11 Saurin sir ©e
Trading A/c of shri Mr. B. for the year ended 31-3-10
Dr Cr
Particulars Amt. Rs. Particulars Amt. Rs.
To opening stock 20,000 By Sales 80,800
To Purchases 60,400 - Sales return - 800 80,000
- Purch. Return - 400 60,000 By goods given as charity 1,400
To Wages 2,000 By goods Destroyed by fire 5,000
To Carriage inward 800 By goods taken for personal use 3,000
To Railway Freight 1,200 By Closing stock 20,000
To Octroi 1,000 1,09,400
To custom duty 2,000
To port charges 500
To mahajan lago 400
Prepare Trading A/c of Mr. B. from balances given as below
To Demurage 600 for 31-3-10
Q. Stock [ 1-4-09 ]
Purchase
20,000
60,400
Goods given as charity
Octroi
1,400
1,000
sales 80,800 Custom duty 2,000
Wages 2,000 88,500
Port charges 500
Purchase return 400 Goods destroy as fire 5,000
sales return 800 mahajan Lago 400
To Gross profit
carriage inward 800 20,900
Demurrage 600
Railway Freight 1,200 Goods taken for personal use. 3,000
= 1,09,400 - 88,500 = 20,900
Cost price of closing stock of goods as on 31-3-10 was Rs. 20,000.
1,09,400 1,09,400

15. Std- 11 Specimen of PROFIT AND LOSS ACCOUNT
PROFIT AND LOSS A/c of shri. . . . . . . . . for the year ended . . . .. . .
©e
Saurin sir
Dr. Particulars Amt. Rs. Cr. Particulars Amt. Rs.
To Gross loss By Gross profit
[transferred from trading a/c] [transferred from trading a/c]
Administrative expenses Incomes [ Revenues ]
To Salary By Discount received
To Rent By Rent received
To Insurance premium By Commission received
To Taxes By Brokerage received
To Postage expenses By Interest received
To Stationery and printing ex. By Interest on Investment
To Legal expenses By Interest on loan given
To Audit fees By Interest on Fixed deposited
To Electricity expenses By Interest on Drawings
To Repairing expenses By Bad debts recovered
To Contribution to provident fund By Profit on sale of assets
By Sales of old news paper.
Selling & Distribution expenses
To carriage outward
To Salary of salesman
To Travelling expenses of salesman
To Advertisement expenses
To Discount allowed
To Delivery van expenses More ……

16. Std- 11 Specimen of PROFIT AND LOSS ACCOUNT
PROFIT AND LOSS A/c of shri. . . . . . . . . for the year ended . . . .. . .
©e
Saurin sir
Dr. Particulars Amt. Rs. Cr. Particulars Amt. Rs.
To Show room expenses
To Godown expenses
To packing expenses
Postage and telegram
Printing and stationery To NET Loss
Rent N.L.=Total Debit - Total Credit
Interest paid on loan taken

17. Std- 11 ©e
Saurin sir
Prepare P/L a/c of Mr. A from balances given as below
for 31-3-10
Rs. Rs.
Gross profit 30,000 Travelling expenses 5,200
Salaries 10,000 packing expenses 400
Advertisement expenses 800 Rent and Taxes 1,800
postage and telegram 500 Insurance premium 1,500
Printing and stationery 360 Commission received 3,600
Rent 2,500 Dividend received 3,400
Interest paid on loan taken 800 Donations paid 700
Discount allowed 1,200 carriage outward 960
Discount received 1,500 apprentices premium 320
Interest paid on Bank 500
overdraft

18. Std- 11 Saurin sir ©e
Q. Prepare P/L a/c of Mr. A from balances given as below for 31-3-10
Profit and loss A/c of Mr. A for the year ended 31-3-10
Rs. Rs.
Gross profit 30,000 Travelling expenses 5,200
Dr
Salaries 10,000 packing expenses Cr
400
Advertisement expenses
Particulars 800
Amt. Rs. Rent and Taxes
Particulars 1,800
Amt. Rs.
postage and telegram 500 Insurance premium 1,500
To Salaries
Printing and stationery 10,000360 By Gross profit
Commission received 30,000
3,600
To Advertisement expenses
Rent 2,500
800 By Discount received
Dividend received 1,500
3,400
Interest paid on loan taken 800 Donations paid 700
To postage and telegram
Discount allowed 500
1,200 By Commission received
carriage outward 3,600
960
To Printing and stationery
Discount received 1,500
360 apprentices premium
By Dividend received 320
3,400
Interest paid on Bank overdraft 500
To Rent 2,500 By apprentices premium 320
To Interest paid on loan taken 800 38,820
To Discount allowed 1,200
To Interest paid on Bank O/D 500
To Travelling expenses 5,200
To packing expenses 400
Q. Prepare P/L a/c of Mr. A from balances given as below for 31-3-10
To Rent and Taxes 1,800
Rs. Rs.
To Insurance premium
Gross profit 1,500 Travelling expenses
30,000 5,200
To Donations paid
Salaries 10,000 packing expenses
700 400
Advertisement expenses 800 Rent and Taxes 1,800
To carriage telegram
postage and outward 960 Insurance premium
500 1,500
Printing and stationery 360
27,220 Commission received 3,600
Rent 2,500 Dividend received 3,400
To Net profit loan taken
Interest paid on 11,600
800 Donations paid 700
Discount allowed 27,220 = 11,600
= 38,820 - 1,200 carriage outward 960
Discount received 1,500 apprentices premium 320
Interest paid on Bank overdraft 38,820
500 38,820