Question

The following is the trial balance of Mr. C. Nariman for the year ended 31st December, 2018. Complete the final accounts for him, after incorporating the adjustments and thereafter complete the required details listed by him. 

	Debit (₹)	Credit (₹)
Capital		65,000
Drawings	4,000
Purchases and Returns Outward	25,000	4,000
Cash Sales		17,000
Credit Sales		54,000
Stock (1.1.2018)	9,000
Salaries	10,000
Wages	3,000
Carriage Inward	2,000
Bad Debts	500
Petty Cash	100
Cash and Bank	6,000
Rent, Rates and Taxes	4,000
Discounts	400	500
Telephones, Postage and Stationery	1,500
Bank Loan on Mortgage		14,000
Premises and Godowns	35,000
Machinery	50,000
Debtors and Creditors	10,000	6,000
	1,60,500	1,60,500

Stock on 31.12.2018 is ₹ 30,000.

Answer 1

In the Books of Mr. C. Nariman
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	-	9,000	By Sales Cash	17,000	71,000
To Purchases	25,000	21,000	Add: Credit Sale	54,000
Less: Returns	(4,000)		By Closing Stock	-	30,000
To Wages	-	3,000
To Gross Profit	-	68,000
		1,01,000			1,01,000
To Salaries	-	10,000	By Gross Profit	-	68,000
To Bad Debts	-	500	By Discount Earned	-	500
To Carriage Inward	-	2,000
To Rent & Rates	-	4,000
To Telephone, Postage and Stat.	-	1,500
To Discount	-	400
To Net Profit	-	50,100
		68,500			68,500

 

Balance Sheet as on 31.12.2018
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	65,000	1,11,100	Machinery	50,000
Add: Net Profit	50,100		Premises and Godown	35,000
	1,15,100		Cash & Bank	6,000
Less: Drawings	(4,000)		Petty Cash	100
Bank Loan	-	14,000	Debtors	10,000
Sundry Creditors	-	6,000	Closing Stock	30,000
		1,31,100		1,31,100