Question

Trial Balance of Mr. J. Junior as on 31.3.2019:

	Debit (₹)	Credit (₹)
Factory Power	16,000
Carriage Charges	2,500
Salaries	20,400
Sales & Purchases of Goods	1,40,000	2,67,000
Machinery	1,20,000
Discounts Received and Allowed	5,000	6,000
Wages (manufacturing activity)	18,000
Stock	25,000
Commission		3,800
Insurance	8,000
Loose Tools (Fixed Asset)	11,000
Returns of Goods	5,000	6,000
Debtors & Creditors	45,000	18,000
Carriage on Sales	6,000
Rent & Rates	10,800
Bad Debts Written off & Recovered	2,000	1,600
Investments	80,000
Bank Accounts	22,000	10,000
Drawings & Capital	15,000	2,37,000
Bills Payable & Receivable	6,000	4,000
Income from Investments		6,800
Cash	2,500
	5,60,200	5,60,200

Compile Final Accounts:

1. An inventory of the godown on 31.3.2019 reflected stock value stated as ₹ 50,000.

Answer 1

In the Books of Mr. J. Junior
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	-	25,000	By Sales Cash	2,67,000	2,62,000
To Purchases	1,40,000	1,34,000	Less: Returns	(5,000)
Less: Returns	(6,000)		By Closing Stock	-	50,000
To Factory Power	-	16,000
To Carriage Charges	-	2,500
To Wages	-	18,000
To Gross Profit	-	1,16,500
		3,12,000			3,12,000
To Salaries	-	20,400	By Gross Profit	-	1,16,500
To Insurance	-	8,000	By Commission Received	-	3,800
To Carriage on Sales	-	6,000	By Income From Investments	-	6,800
To Rent & Taxes	-	10,800	By Discount Received	-	6,000
To Bad Debt w/off	2,000	400
Less: Bad Debt Recovered	(1,600)
To Discount Allowed	-	5,000
To Net Profit	-	82,500
		1,33,100			1,33,100

 

Balance Sheet as on 31.03.2019
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	2,37,000	3,04,500	Machinery	1,20,000
Add: Net Profit	82,500		Loose Tools	11,000
Less: Drawings	(15,000)		Sundry Debtors	45,000
Bills Payable		4,000	Investment	80,000
Sundry Creditors		18,000	Bills Receivable	6,000
Bank Overdraft		10,000	Bank Accounts	22,000
			Cash	2,500
			Closing Stock	50,000
		3,36,500		3,36,500