Question

The following is the trial balance of Mr. P. Crooke as on 31.03.2018.

	Debit (₹)	Credit (₹)
Stock at Start	30,000
Fuel & Gas	5,600
Capital & Drawings	8,000	3,50,000
Debtors	30,000
Bills Receivable & Payable	12,000	8,000
Additional Drawings (other than cash)	4,000
Carriage	9,000
Purchases & Sales	1,90,000	3,40,000
Bank Accounts	15,000	5,000
Creditors		16,000
Returns	5,000	20,000
Office Administrative Expenses	44,000
Loans (given & borrowed)	10,000	1,00,000
Petty Cash & Cash Balances	2,000
Postage & Telegrams	900
Printing & Stationery	7,500
Wages	20,000
Salaries	14,000
Land	1,50,000
Factory & Office Premises	80,000
Machineries	2,10,000
Commission		8,000
	8,47,000	8,47,000

Compile the final accounts for the owner, after attending to the adjustment given below.

Adjustment:

1. Stock in the Godown as on 31.3.2018 is ₹ 35,000.

Answer 1

In the Books of Mr. P. Crooke
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	-	30,000	By Sales Cash	3,40,000	3,35,000
To Purchases	1,90,000	1,70,000	Less: Returns	(5,000)
Less: Returns	(20,000)		By Closing Stock	-	35,000
To Fuel & Gas	-	5,600
To Carriage	-	9,000
To Wages	-	20,000
To Gross Profit	-	1,35,400
		3,70,000			3,70,000
To Office Administrative Exp	-	44,000	By Gross Profit	-	1,35,400
To Postage & Telegrams	-	900	By Commission Earned	-	8,000
To Printing & Stationary	-	7,500
To Salaries	-	14,000
To Net Profit	-	77,000
		1,43,400			1,43,400

 

Balance Sheet as on 31.03.2019
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	3,50,000	4,15,000	Land	1,50,000
Add: Net Profit	77,000		Sundry Debtors	30,000
Less: Drawings	(12,000)		Loans	10,000
Bills Payable	-	8,000	Bills Receivable	12,000
Sundry Creditors	-	16,000	Factory & Office Premises	80,000
Bank Overdraft	-	5,000	Bank Balance	15,000
Loans	-	1,00,000	Petty Cash & Cash Bal.	2,000
			Machinery	2,10,000
			Closing Stock	35,000
		5,44,000		5,44,000