Question

From the following trial balance of Mr. A prepare a Trading Account and a Profit and Loss Ale for the year ending 3tst Dec., 2018 and a Balance Sheet as on that date: 

TRIAL BALANCE
Debit Balance	(₹)	Credit Balance	(₹)
Cash	10,000	Sales	1,80,500
Stock	40,800	Returns	195
Wages	22,525	Loan	20,000
Ourchases	1,30,295	Creditors	30,305
Returns Inward	2,400	Discount	530
Repairs	1,675	Capital	37,500
Bad Debts	2,310
Interest on Loan	600
Salaries	8,000
Sales Tax	800
Octroi	500
Insurance	1,000
Charity	125
Rent	2,000
Machinery	16,000
Debtors	30,000
	2,69,030		2,69,030

Stock on 31st Dec., 2018 was ₹ 40,925.

Answer 1

In the Books of Mr. A
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	-	40,800	By Sales Cash	1,80,500	1,78,100
To Purchases	1,30,295	1,30,100	Less: Returns	(2,400)
Less: Returns	(195)		By Closing Stock	-	40,925
To Wages	-	22,525
To Gross Profit	-	25,600
		2,19,025			2,19,025
To Octroi	-	500	By Gross Profit	-	25,600
To Repairs	-	1,675	By Discount	-	530
To Bad debts	-	2,310
To Interest on loan	-	600
To Salaries	-	8,000
To Sale tax	-	800
To Insurance	-	1,000
To Charity	-	125
To Rent	-	2,000
To Net Profit	-	9,120
		26,130			26,130

 

Balance Sheet as on 31.12.2018
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	37,500	46,620	Cash	10,000
Add: Net Profit	9,120		Machinery	16,000
Sundry Creditors	-	30,305	Sundry Debtors	30,000
Bank Loan	-	20,000	Closing Stock	40,925
		96,925		96,925