Question

The following Trial Balance was from the books of Ram as on 31st December 2018.

TRIAL BALANCE
	Dr. (₹)		Cr. (₹)
Drawings Account	7,000	Capital Account	90,000
Purchases	82,210	Purchase Return	4,240
Sales Return	1,820	Sales	1,49,840
Opening Stock	11,460	Bad Debt Reserve	4,240
Salaries	6,280	Discount	180
Wages	8,560	Sundry Creditors	16,980
Leasehold Premises	25,000
Rent, Rates & Insurance	6,940
Carriage Inward	2,310
Office Expenses	9,520
Plant & Machinery	24,000
Light & Water	7,950
Bills Receivable	1,240
Sundry Debtors	38,970
Cash at Bank	12,400
Cash in Hand	2,210
Office Furniture	3,500
Travelling Expenses	9,870
Bad Debts	1,000
Carriage Outward	3,240
	2,65,480		2,65,480

Prepare a Trading Account and a Profit & Loss Account for the year ended 31st December 2018 and a Balance Sheet as at that date.

The value of Stock on 31st December 2018 was ₹ 14 920.

Answer 1

In the Books of Mr. Ram
Dr.	Trading and Profit and Loss A/c for the year ended 31.12.2018				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Opening Stock	-	11,460	By Sales Cash	1,49,840	1,48,020
To Purchases	82,210	77,970	Less: Returns	(1,820)
Less: Returns	(4240)		By Closing Stock	-	14,920
To Wages	-	8,560
To Carriage Inwards	-	2,310
To Light & Water	-	7,950
To Gross Profit	-	54,960
		1,62,940			1,62,940
To Salaries	-	6,280	By Gross Profit	-	54,960
To Rent, Rates & Insurance	-	6,940	By Discount Recd.	-	180
To Office Expenses	-	9,520
To Travelling Expenses	-	9,870
To Carriage Outward	-	3,240
To Bad debt	-	1,000
To Net Profit	-	18,020
		54,870			54,870

 

Balance Sheet as on 31.12.2018
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital	90,000	1,01,020	Leasehold Premises	-	25,000
Add: Net Profit	18,020		Plant & Machinery	-	24,000
Less: Drawings	(7,000)		Bills Receivable	-	1,240
Sundry Creditors	-	16,980	Sundry Debtors	38,970	34,730
			Less: Bad Debt Reserve	(4,240)
			Cash at bank	-	12,400
			Cash in Hand	-	2,210
			Office Furniture	-	3,500
			Closing Stock	-	14,920
		1,18,000			1,18,000