Question

The following is the Trial Balance of Amrit Roy as on 31st December 2018:

	Debit (₹)	Credit (₹)
Capital		25,000
Building	30,000
Furniture	2,640
Scooter	4,000
Returns	2,300	1,600
Opening Stock	8,000
Purchases and Sales	33,800	56,040
Bad Debts	400
Carriage Inwards	600
General Expenses	1,200
Bad Debts Provision		700
Bank Loan		5,000
Interest on Bank Loan	300
Commission		900
Insurance and Taxes	2,000
Scooter Expenses	2,600
Salaries	4,400
Cash in Hand	2,000
Debtors and Creditors	3,000	8,000
	97,240	97,240

You are required to prepare the final accounts for the year ending 31st December 2018.

Closing Stock on 31.12.2018 was valued at ₹ 4,340.

Answer 1

In the Books of Mr. Amit Roy
Dr.	Trading and Profit and Loss A/c for the year ended 31.12.2018				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Opening Stock	-	8,000	By Sales Cash	56,040	53,740
To Purchases	33,800	32,200	Less: Returns	(2,300)
Less: Returns	(1,600)		By Closing Stock	-	4,340
To Carriage Inwards	-	600
To Gross Profit	-	17,280
		58,080			58,080
To Bad debt	-	400	By Gross Profit	-	17,280
To General Expenses	-	1,200	By Commission Earned	-	900
To Interest on Bank Loan	-	300
To Insurance & taxes	-	2,000
To Scooter Exp.	-	2,600
To Salaries	-	4,400
To Net Profit	-	7,280
		18,180			18,180

 

Balance Sheet as on 31.12.2018
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital	25,000	32,280	Building	-	25,000
Add: Net Profit	7,280		Furniture	-	24,000
Bank Loan	-	5,000	Scooter	-	1,240
Sundry Creditors	-	8,000	Sundry Debtors	3,000	2,300
			Less: Bad Debt Provision	(700)
			Cash in hand	-	2,000
			Closing Stock	-	4,340
		45,280			45,280