Question

The following is the trial balance obtained from the books of Mr. G. Vishwanath as on 30th June, 2019:

	Debit (₹)	Credit (₹)
Capital		50,000
Drawings	1,000
Stock as on 1.7.2018	28,000
Loose Tools as on 1.7.2018	1,000
Sundry Debtors and Sundry Creditors	25,000	15,000
Purchases and Sales	90,000	1,72,000
Returns	750	550
Discounts	250	300
Land and Building	88,000
Salaries and Wages	33,000
Carriage Inward	1,200
Carriage Outward	1,500
Insurance	1,000
Commission		18,550
Cash in Hand	1,700
Bank Overdraft		20,000
Advertisement	2,000
Bills Receivable and Bills Payable	7,500	5,500
	2,81,900	2,81,900

You are required to prepare Mr. Vishwanath's trading account and profit and loss account for the period ended 30 June, 2019 and a balance sheet as on that date after taking into account the following adjustments.

1. Stock valued on 30.6.2019 at ₹ 25,000.

Answer 1

In the books of Mr. G. Vishwanath
Dr.	Trading and Profit and Loss A/c for the year ended 30.06.2019				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Opening Stock	-	28,000	By Sales	1,72,000	1,71,250
To Purchases	90,000	89,450	Less: Returns	(750)
Less: Returns	(550)		By Closing Stock	-	25,000
To Carriage Inward	-	1,200
To Gross Profit	-	77,600
		1,96,250			1,96,250
To Discount	-	250	By Gross Profit	-	77,600
To Carriage Outward	-	1,500	By Discount Received	-	300
To Salaries	-	33,000	By Commission Received	-	18,550
To Advertisements	-	2,000
To Insurance	-	1,000
To Net Profit	-	58,700
		96,450			96,450

 

Balance Sheet as on 30.06.2019
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	50,000	1,07,700	Cash in Hand	1,700
Add: Net Profit	58,700		Loose tools	1,000
	1,08,700		Land & Building	88,000
Less: Drawings	(1,000)		Sundry Debtors	25,000
Sundry Creditors	-	15,000	Bills Receivable	7,500
Bank Overdraft	-	20,000	Closing Stock	25,000
Bills Payable	5,500	-
		1,48,200		1,48,200