Question

From the following trial balance and other additional information obtained from the books of Mr. Sunil Gavaskar, prepare his trading account and the profit and loss account for the half-year ended 30th September, 2018 and his balance sheet as on that date: 

	Debit (₹)	Credit (₹)
Capital Account	-	1,55,000
Drawings Account	9,000
Trade Expenses	12,000
Cash in Hand	750
Cash at Bank	22,700
Freehold Premises	1,30,000
Stock as on 1.4.2018	35,000
Purchases and Sales	75,000	2,50,000
Returns	2,800	2,000
Carriage Inward	1,500
Carriage Outward	3,500
Sundry Debtors and Sundry Creditors	48,000	25,000
Bills Receivable and Bills Payable	22,000	10,500
Furniture and Fixtures	15,400
Bad Debts	1,500
Wages	25,000
Salaries	19,850
Advertisement	15,000
Rent, Rates and Taxes	3,500
	4,42,500	4,42,500

1. Stock was valued at ₹ 40,000 on 30.9.2018.

Answer 1

In the Books of Mr. Sunil Gavaskar
Dr.	Trading and Profit and Loss A/c for the year ended 30.09.2018				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Opening Stock	-	35,000	By Sales	2,50,000	2,47,200
To Purchases	75,000	73,000	Less: Returns	(2,800)
Less: Returns	(2,000)		By Closing Stock	-	40,000
To Wages	-	25,000
To Carriage Inward	-	1,500
To Gross Profit	-	1,52,700
		2,87,200			2,87,200
To Trade Expenses	-	12,000	By Gross Profit	-	1,52,700
To Carriage Outward	-	3,500
To Bad debts	-	1,500
To Salaries	-	19,850
To Advertisements	-	15,000
To Rent, Rates & Taxes	-	3,500
To Net Profit	-	97,350
		1,52,700			1,52,700

 

Balance Sheet as on 30.09.2018
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	1,55,000	2,43,350	Cash in Hand	750
Add: Net Profit	97,350		Cash at Bank	22,700
	2,52,350		Freehold premises	1,30,000
Less: Drawings	(9,000)		Debtors	48,000
Sundry Creditors	-	25,000	Bills Receivable	22,000
Bills payable	-	10,500	Furniture & Fixtures	15,400
			Closing Stock	40,000
		2,78,850		2,78,850