Question

Mr. Sputnik, who is always in a hurry, prepares the following trial balance as at 31.12.2019. You are required to prepare the final accounts taking into consideration the trial balance for the year ended 31st December 2018.

	Debit (₹)	Credit (₹)
Capital		10,180
Drawings	3,000
Opening Stock	3,500
Leasehold Premises	28,000
Purchases and Sales	20,300	84,180
Salaries and Wages	5,600
Carriage Outward	700
Rent	900
Insurance	600
Returns	160	300
Bank of India Current A/c	2,200
Union Bank of India Current A/c		600
Bad Debts	300
Heavy Vehicles	20,000
Motor Car	11,000
Vehicle and Car Expenses	2,500
Rent Earned		1,500
Commission Paid	800
Debtors and Creditors	4,000	5,000
Cash	200
Import Duty and Clearing Charges	1,600
Packing Expenses	2,400
Loan from Mr. Baxi (long term)		6,000
	1,07,760	1,07,760

Closing stock is ₹ 7,500.

Answer 1

In the Books of Mr. Sputnik
Dr.	Trading and Profit and Loss A/c for the year ended 31.12.2019				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Opening Stock	-	3,500	By Sales	84,180	84,020
To Purchases	20,300	20,000	Less: Returns	(160)
Less: Returns	(300)		By Closing Stock	-	7,500
To Import Duty and Clearing Charges	-	1,600
To Gross Profit	-	66,420
		91,520			91,520
To Insurance	-	600	By Gross Profit	-	66,420
To Salaries	-	5,600	By Rent Earned	-	1,500
To Carriage Outward	-	700
To Bad Debt	-	300
To Rent	-	900
To Vehicle and Car Expenses	-	2,500
To Commission Paid	-	800
To Packing Expenses	-	2,400
To Net Profit	-	54,120
		67,920			67,920

 

Balance Sheet as on 31.12.2019
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	10,180	61,300	Leasehold premises	28,000
Add: Net Profit	54,120		Cash	200
	64,300		Bank of India	2,200
Less: Drawings	(3,000)		Heavy Vehicles	20,000
Sundry Creditors	-	5,000	Debtors	4,000
Bank Loan	-	600	Closing Stock	7,500
Loan From Mrs. Baxi	-	6,000	Motor Car	11,000
		72,900		72,900