Question

From the following Trial Balance of Jyoti, Trading Co. Prepare the Trading Account and Profit and Loss Account for the year ended 31st March 2019 and Balance Sheet as of that date.
Trial Balance as of 31st March 2019

Debit balances	Amount (₹)	Credit Balances	Amount (₹)
Stock (1.4.2018)	9,500	Capital	2,00,000
Sales Returns	750	R.D.D.	1,000
Loose Tools	55,000	Sales	38,750
Debtors	50,800	Purchases return	455
Bills Receivable	4,000	Creditors	47,000
Purchases	29,455	Bills Payable	8,000
Furniture	15,000	Discount	1,845
Salaries	5,000
Carriage Outward	3,000
Legal expenses	2,000
Insurance	2,200
Goodwill	20,000
Machinery	40,000
Wages	2,345
Bank	30,000
Drawings	8,000
Investments	20,000
	2,97,050		2,97,050

Adjustments:

1. Closing stock valued at ₹ 58,000 Cost Price while the Market price is ₹ 60,000

2. Write off ₹ 1,200 as Bad debts and create provision for doubtful debts 2% on Sundry Debtors and also create provision for discount on Creditors 5%.

3. Loose Tools is valued at ₹ 52,000 and depreciate Furniture by 10% p.a.

4. Outstanding expenses Salary ₹ 1,000 and Wages ₹ 225

5. Charge interest on Capital 2% and on Drawings 10%.

Answer 1

In the books of Jyoti Trading Co.
Dr.	Trading & Profit & Loss A/c for the year ended 31st March, 2019				Cr.
Particulars	Amt. (₹)	Amt. (₹)	Particulars	Amt. (₹)	Amt. (₹)
To Opening Stock		9,500	By Sales	38,750
To Purchases	29,455		Less: Sales Return	750	38,000
Less : Purchases Return	455	29,000	By Closing Stock		58,000
To Wages	2,345
Add : Outstanding	225	2,570
To Gross Profit c/d		54,930
		96,000			96,000
To Salaries	5,000		By Gross Profit b/d		54,930
Add : Outstanding	1,000	6,000	By Discount		1,845
To Carriage Outwards		3,000	By Interest on Drawing		400
To Legal expense		2,000	By Provision for Discount
To Insurance		2,200	on Creditors		2,350
To New B.D.(A)	1,200
Add: New R.D.D. (A)	992
	2,192
Less : Old R.D.D. (T)	1,000	1,192
To Interest on Capital		4,000
To Depreciation on :
Loose Tools	3,000
Furniture	1,500	4,500
To Net Profit c/d		36,633
		59,525			59,525

 

Balance Sheet as of 31st March 2019
Liabilities	Amt. (₹)	Amt. (₹)	Assets	Amt. (₹)	Amt. (₹)
Capital	2,00,000		Loose Tools	55,000
Less : Drawings	8,000		Less : Depreciation	3000	52,000
	1,92,000		Debtors (T)	50,800
Add : Interest on capital	4,000		Less : New B.D.(A)	1,200
	1,96,000			49,600
Less : Interest on Drawings	400		Less : New R.D.D (A)	992	48,608
	1,95,600		Bills Receivable		4,000
Add : New Profit	36,633	2,32,233	Furniture	15,000
Creditors	47,000		Less: Dep. @ 10 %	1,500	13,500
Less :Provision for Discount			Goodwill		20,000
on Creditors @ 5%	2,350	44,650	Machinery		40,000
Bills Payable		8,000	Bank		30,000
Outstanding Salaries		1,000	Investments		20,000
Outstanding Wages		225	Closing Stock		58,000
		2,86,108			2,86,108