Question

The following trial balance was extracted from the books of A. Harding, as on 31st March, 2019:

	Debit (₹)	Credit (₹)
Capital		20,100
Drawings	1,500
Cash in Hand and at bank	1,400
Petty Cash	100
Cash Purchases and Sales	10,000	20,000
Credit Purchases and Sales	12,000	25,000
Returns	2,000	1,000
Discount	400
Carriage Inwards	500
Salaries	6,000
Sundry and Petty Expenses	1,200
Opening Stock	5,000
Bad Debts	600
Rent	1,500
Machinery	36,000
Furniture	5,000
Debtors and Creditors	5,000	10,000
Stationary	2,500
Commission		200
Bank Loan		14,400
	90,700	90,700

Prepare the complete set of final accounts for Mr. A. Harding, after incorporating the following adjustment:

1. Closing stock is ₹ 26,000.

Answer 1

In the Books of Mr. A. Harding
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	-	5,000	By Sales	45,000	43,000
To Purchases	22,000	21,000	Less: Returns	(2,000)
Less: Returns	(1,000)		By Closing Stock	-	26,000
To Carriage Inward	-	500
To Gross Profit	-	42,500
		69,000			69,000
To Discount	-	400	By Gross Profit	-	42,500
To Salaries	-	6,000	By Commission	-	200
To Sundry & Petty Exp.	-	1,200
To Bad Debt	-	600
To Rent	-	1,500
To Stationery	-	2,500
to Net Profit	-	30,500
		42,700			42,700

 

Balance Sheet as on 31.03.2019
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	20,100	49,100	Cash in Hand & Bank	1,400
Add: Net Profit	30,500		Petty Cash	100
	50,600		Machinery	36,000
Less: Drawings	(1,500)		Furniture	5,000
Sundry Creditors	-	10,000	Debtors	5,000
Bank Loan	-	14,400	Closing Stock	26,000
		73,500		73,500