Question

Trial Balance as on 31.3.2019 of Ms. Counsel.

	Debit (₹)	Credit (₹)
Purchases and Sales	2,40,000	4,15,000
Wages & Factory Supervisor's Remuneration	35,000
Building	1,80,000
Machinery & Equipment	4,75,000
Commission	2,800	1,600
Freehold Land	1,00,000
Watch Dogs Squad	30,100
Debit Notes & Credit Notes (issued in connection with goods)	10,000	15,000
Creditors & Debtors	60,000	45,000
Salaries & Staff Welfare	38,000
Bill (drawn to guarantee payment)	10,000	7,000
Building Repairs	15,000
Cash & Bank	50,000
Bonus	2,500
Discounts	3,200	14,600
Watch Dogs Upkeep Costs	6,600
Accounts of the owner	35,000	5,95,000
Interest-free Loan		1,00,000
General Reserve		1,30,000
Opening Stock	30,000
	13,23,200	13,23,200

Compile Final Accounts:

1. Closing Stock at the cost price is ₹ 8,000 more than the opening stock - but the ruling market price is ₹ 5,000 only, on 31.3.2019. 

Answer 1

In the Books of Ms. Counsel
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	-	30,000	By Sales Cash	4,15,000	4,05,000
To Purchases	2,40,000	2,25,000	Less: Returns	(10,000)
Less: Returns	(15,000)		By Closing Stock	-	35,000
To Wages & Factory Supervisor's Remuneration	-	35,000
To Gross Profit	-	1,50,000
		4,40,000			4,40,000
To Watch Dogs Upkeep cost	-	6,600	By Gross Profit	-	1,50,000
To Commission Paid	-	2,800	By Commission Received	-	1,600
To Salaries & Staff Welfare	-	38,000	By Discount Received	-	14,600
To Building Repairs	-	15,000
To Bonus	-	2,500
To Discount Paid	-	3,200
To Net Profit	-	98,100
		1,66,200			1,66,200

 

Balance Sheet as on 31.03.2019
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	5,95,000	6,58,100	Building	1,80,000
Add: Net Profit	98,100		Freehold Land	1,00,000
Less: Drawings	(35,000)		Sundry Debtors	60,000
Bills Payable	-	7,000	Machinery & Equipment	4,75,000
Sundry Creditors	-	45,000	Bills Receivable	10,000
Interest-free loan	-	1,00,000	Cash & Bank	50,000
General Reserve	-	1,30,000	Watch Dog Squad	30,100
			Closing Stock	35,000
		9,40,100		9,40,100