Note on Trial Balance Discrepancy:

Here's the preparation of the Trading and Profit & Loss Account and the Balance Sheet for M/s Sathyam trader's.

Note on Trial Balance Discrepancy:
The provided Trial Balance does not tally.
Total Debit Balances = Rs. 3,86,500
Total Credit Balances = Rs. 3,86,400
There is a difference of Rs. 100 (Debit side is higher). This difference is typically placed in a Suspense Account. For the Balance Sheet to tally, a Suspense Account with a credit balance of Rs. 100 will be shown on the Liabilities side.

Step 1: Prepare the Trading Account.
The Trading Account calculates the Gross Profit or Gross Loss by