Question

From the following Trial Balance of Mr. P.H. Planner as on 31.3.2019, prepare final accounts for him: 

	Debit (₹)	Credit (₹)
Duty, Clearing and Freight	10,000
Stock (1.4.2018)	30,000
Goodwill	30,000
Salary, Bonus and Travel Allowance	25,000
Leasehold Premises	90,000
Purchases and Sales	2,40,000	3,80,000
Debtors and Creditors	20,000	15,000
Capital and Drawings	20,000	1,60,000
General Expenses	16,000
Factory Equipment and Tools	18,000
Bank		5,000
Interest-free Loan from Mr. P.H. Planner for four years		80,000
Wages and Bonus	35,000
Cash and Petty Cash	17,000
Plant and Machinery	50,000
Bill Payable and Receivable	12,000	8,000
Professional Charges	18,000
Returns	7,000	4,000
Insurance and Office Expenses	14,000
	6,52,000	6,52,000

Closing Stock is ₹ 45,000.

Answer 1

In the Books of Mr. P.H. Planner
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	3,80,000	3,73,000
To Purchases	2,40,000	2,36,000	Less: Returns	(7,000)
Less: Returns	(4,000)		By Closing Stock	-	45,000
To Wages & Bonus	-	35,000
To Duty, Clearing & Freight	-	10,000
To Gross Profit	-	1,07,000
		4,18,000			4,18,000
To Salary, Bonus & T.A	-	25,000	By Gross Profit	-	1,07,000
To General Expenses	-	16,000
To Professional Charge	-	18,000
To Insurance & Office Exp.	-	14,000
To Net Profit	-	34,000
		1,07,000			1,07,000

 

Balance Sheet as on 31.03.2019
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	1,60,000	1,74,000	Leasehold Premises	90,000
Add: Net Profit	34,000		Factory Equipment & Tools	18,000
Less: Drawings	(20,000)		Sundry Debtors	20,000
Bank Overdraft	-	5,000	Goodwill	30,000
Sundry Creditors	-	15,000	Cash & Petty Cash	17,000
Interest Free Loan From Mr. P.H. Planner	-	80,000	Plant & Machinery	50,000
Bills Payable	-	8,000	Bills Receivable	12,000
			Closing Stock	45,000
		2,82,000		2,82,000