What are the need for preparation of trading account?

What are the need for preparing a Balance sheet?

What are the characteristics of balance sheet?

Explain the types. of liabilities.

What are the difference between trial balance and balance sheet.

Prepare profit and loss account of Mrs. Nalini for the year ended 31^st December 2010 from the following:

Particulars	Rs.	Particulars	Rs.
Gross profit	1,25,000	Discount paid	600
Salaries	15,000	Discount received	1,000
Rent	5,000	Interest paid	500
Carriage outwards	1,000	Interest received	700
Selling expenses	500	Commission earned	2,000
Income from investment	1,500

From the following particulars, prepare a balance sheet of Mr. Moorthy as on 31^st December 2013.

Particulars	Rs.	Particulars	Rs.
Capital	40,000	Drawings	4,400
Debtors	6,400	Creditors	4,200
Cash in hand	360	Cash at bank	7,200
Furniture	1,000	Plant	10,000
To Net profit	1,660	General reserve	1,000
Closing stock	14,800

From the following information prepare balance sheet of Mrs. Nasreenkhan as at 31^st December 2017.

Particulars	Rs.	Particulars	Rs.
Goodwill	10,000	Sundry debtors	25,000
Capital	90,000	Drawings	15,000
Cash in hand	10,000	Land and buildings	30,000
Investment	500	Bank	10,000
Net profit	46,900	Creditors	31,500
Bills receivable	6,500	Plant and Machinery	20,000
Bills payable	5,350	Closing stock	40,000
Furniture	6,750

Following is the trial balance of J. Subramaium on 31^st March 2016. Pass the Closing entries and prepare the trading and profit and loss account for the year ended 31 st March 2016.

Trial Balance as on 31st March 2016

S.No.	Particulars	Debit Rs.	Credit Rs.
1.	Capital A/c		30,000
2.	Stock A/c	6,000
3.	Cash at bank	3,000
4.	Cash in hand	1,320
5.	Machinery A/c	18,000
6.	Furniture and Fittings A/c	4,080
7.	Purchases A/c	45,000
8.	Wages	30,000
9.	Fuel and Power	9,000
10.	Factory Lighting	600
11.	Salaries	21,000
12.	Discount allowed	1,500
13.	Discount received		900
14.	Advertising	15,000
15.	Sundry office expenses	12,000
16.	Sales A/c		1,50,000
17.	Sundry debtors	25,500
18.	Sundry creditors		11,000
		1,92,000	1,92,000

The following are some of the balances extracted from the ledger of Mr. Kalyana Sundaram as on 31^st December 2016. Prepare a trading account.

Particulars	Debit Rs.	Credit Rs.
Stock 1.1.2016	12,500
Purchases	1,00,000
Sales		1,50,000
Return outwards		5,000
Return inwards	10,000
Salaries	4,400
Wages	.7,500
Rent	2,750
Carriage inwards	2,500
Carriage outwards	750
Power, coal, gas	1,000
Stock on 31.12.20l6 was valued at Rs.14,000