To prepare the Profit and Loss account for the year ending 31st March 2060, we'll follow the traditional format and understand the necessary components. Here is the step-by-step solution and the final Profit and Loss account:
### Step-by-Step Solution:
1. Given Information:
- Revenue (Sales): Rs 10,000
- Net Profit: Rs 46,250
2. Expenses:
- Office Rent: Rs 8,000
- Selling Expenses: Rs 8,000
- Interest on Loan: Rs 5,000
- Distribution Expenses: Rs 2,000
3. Incomes:
- Gross Profit: Rs 1,30,000
- Profit on Sale of Furniture: Rs 4,000
### Total Expenses Calculation:
To calculate the total expenses, we sum up all the individual expense items:
[tex]\[ \text{Total Expenses} = \text{Office Rent} + \text{Selling Expenses} + \text{Interest on Loan} + \text{Distribution Expenses} \][/tex]
[tex]\[ \text{Total Expenses} = 8,000 + 8,000 + 5,000 + 2,000 = 23,000 \][/tex]
### Total Revenue Calculation:
To calculate the total revenue, we sum the gross profit, profit on sale of furniture, and sales revenue:
[tex]\[ \text{Total Revenue} = \text{Gross Profit} + \text{Profit on Sale of Furniture} + \text{Revenue (Sales)} \][/tex]
[tex]\[ \text{Total Revenue} = 1,30,000 + 4,000 + 10,000 = 1,44,000 \][/tex]
### Net Profit Calculation:
The net profit can be calculated by subtracting total expenses from total revenue:
[tex]\[ \text{Net Profit} = \text{Total Revenue} - \text{Total Expenses} \][/tex]
[tex]\[ \text{Net Profit} = 1,44,000 - 23,000 = 1,21,000 \][/tex]
### Detailed Profit and Loss Account:
Based on the above steps, the Profit and Loss account would look like this:
Profit and Loss Account for the year ending 31st March 2060
[tex]\[
\begin{array}{|c|c|c|c|}
\hline
\text{Particulars} & \text{Rs} & \text{Particulars} & \text{Rs} \\
\hline
\text{Office Rent} & 8,000 & \text{Gross Profit} & 1,30,000 \\
\hline
\text{Selling Expenses} & 8,000 & \text{Profit on Sale of Furniture} & 4,000 \\
\hline
\text{Interest on Loan} & 5,000 & \text{Revenue (Sales)} & 10,000 \\
\hline
\text{Distribution Expenses} & 2,000 & & \\
\hline
\text{Total Expenses} & 23,000 & \text{Total Revenue} & 1,44,000 \\
\hline
\text{Net Profit} & 1,21,000 & & \\
\hline
\end{array}
\][/tex]
From the Profit and Loss account, we determine:
- Total Expenses: Rs 23,000
- Total Revenue: Rs 1,44,000
- Net Profit: Rs 1,21,000
