Question

From the following balances of Mr. Kumar, prepare final accounts for the year 2018: 

Debit Balance	(₹)	Credit Balance	(₹)
Salaries	400	Sales	7,819
Advertising	42	Carriage inwards	9
Postage and Telegrams	27	Capital	3,600
Bad Debts	28	Creditors	1,124
Interest	130	Loan	1,200
Discount (Dr.)	100	Debtors	388
wages	430	Fixtures and Fittings	1,616
Opening Stock	995	Buildings	2,378
Purchases	6,200	Machinery	1,000
		Closing Stock	1,430

Answer 1

In the Books of Mr. Kumar
Dr.	Trading and Profit and Loss A/c for the year ended 31st Dec, 2018		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Opening Stock	995	By Sales	7,819
To Purchases	6,200	By Closing Stock	1,430
To Carriage Inward	9
To Wages	430
To Gross Profit	1,615
	9,249		9,249
To Discount	100	By Gross Profit	1,615
To Advertising	42
To Salaries	400
To Postage and Telegrams	27
To Bad debts	28
To Interest	130
To Net Profit	888
	1,615		1,615

 

Balance Sheet as on 31.12.2018
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	3,600	4,488	Buildings	2,378
Add: Net Profit	888		Machinery	1,000
Creditors	-	1,124	Furniture	1,616
Bank Loan	-	1,200	Debtors	388
			Closing Stock	1,430
		6,812		6,812