Question

The following is the trial balance of Mr. M. Moonlite as on 31.3.2019. The Closing Stock as on 31.3.2019 is ₹ 40,000.

	Debit (₹)	Credit (₹)
Salaries	20,000
Royalty		55,000
Capital		2,60,000
Freehold Land	60,000
Stock as on 1.4.2018	25,000
Goods Traded in	2,05,000	3,55,000
Drawings	5,000
Brokerage	4,000	6,000
Motive Power & Coke	6,000
Insurance	7,000
Cash & Bank	20,000	9,900
Administrative & Selling Expenses	55,900
Wages	15,000
Returns	10,000	5,000
Suppliers & Customers	30,000	15,000
Interest on Overdraft and Borrowings	18,000
Electricity	5,000
Goodwill	50,000
Leasehold Land	20,000
Fixed Assets (other than land)	1,50,000
	7,05,900	7,05,900

Compile the final accounts for the owner.

Answer 1

In the Books of Mr. M. Moonlite
Dr.	Trading and Profit and Loss A/c for the year ended 31.03.2019				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Opening Stock	-	25,000	By Sales Cash	3,55,000	3,45,000
To Purchases	2,05,000	2,00,000	Less: Returns	(10,000)
Less: Returns	(5,000)		By Closing Stock	-	40,000
To Wages	-	15,000
To Motive Power and Coke	-	6,000
To Gross Profit	-	1,39,000
		3,85,000			3,85,000
To Salaries	-	20,000	By Gross Profit	-	1,39,000
To Brokerage Paid	-	4,000	By Royalty Recd.	-	55,000
To Insurance	-	7,000	By Brokerage Recd.	-	6,000
To administrative and Selling Exp.	-	55,900
To Interest Paid	-	18,000
To Electricity	-	5,000
To Net Profit	-	90,100
		2,00,000			2,00,000

 

Balance Sheet as on 31.03.2019
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	2,60,000	3,45,100	Freehold Land	60,000
Add: Net Profit	90,100		Cash & Bank	20,000
Less: Drawings	(5,000)		Sundry Debtors	30,000
Bank Overdraft		9,900	Goodwill	50,000
Sundry Creditors		15,000	Leasehold Land	20,000
			Fixed Assets	1,50,000
			Closing Stock	40,000
		3,70,000		3,70,000