Question

From the following Trial Balance of Mr. Rajesh, prepare final accounts for the year ended 31.3.2019: 

	Debit (₹)	Credit (₹)
Opening Stock	19,000
Salaries	10,500
Wages	8,000
Railway Freight - Purchases & Imports	2,500
General Office Expenses	13,000
Annual Insurance	2,000
Plant and Machinery	50,000
Purchases and Sales	1,20,000	2,53,000
Rent	7,500
Bad Debts and its Recoveries	300	1,000
Buildings and Sheds	60,000
Bills Receivable and Payable	12,200	4,000
10% Bank of Progress Loan		50,000
Travel Costs	15,000
Returns and Price Adjustments	3,000	1,500
Legal and Other Consultancy Fees	10,000
Repairs	8,600
Bank Account	10,000
Capital and Drawings	4,500	65,000
Interest	6,000
Debtors and Creditors	35,000	22,600
	3,97,100	3,97,100

Closing stock is valued at ₹ 45,000 (Its market price is only ₹ 40,000).

Answer 1

In the Books of Mr. Rajesh
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	-	19,000	By Sales Cash	2,53,000	2,50,000
To Purchases	1,20,000	1,18,500	Less: Returns	(3,000)
Less: Returns	(1,500)		By Closing Stock	-	40,000
To Wages	-	8,000
To Freight Paid on Purchases	-	2,500
To Gross Profit	-	1,42,000
		2,90,000			2,90,000
To Salary	-	10,500	By Gross Profit	-	1,42,000
To General Office Exp.	-	13,000
To Insurance	-	2,000
To Rent	-	7,500
To Bad Deb	300	(700)
Less: Bad Debt Recovered	(1,000)
To Tour Expenses	-	15,000
To Legal & Consultancy Exp.	-	10,000
To Repairs	-	8,600
To Interest	-	6,000
To Net Profit	-	70,100
		1,42,000			1,42,000

 

Balance Sheet as on 31.03.2019
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	65,000	1,30,600	Plant & Machinery	50,000
Add: Net Profit	70,100		Building & Sheds	60,000
Less: Drawings	(4,500)		Sundry Debtors	35,000
Bills Payable	-	4,000	Bills Receivable	12,200
Sundry Creditors	-	22,600	Bank Balance	10,000
Bank Loan	-	50,000	Closing Stock	40,000
		2,07,200		2,07,200