Question

From the following trial balance of Mr. Roobex, prepare the final accounts of the year ended 31.12.2018.

	Debit (₹)	Credit (₹)
Freehold Land	60,000
Office and Factory Buildings	40,000
Purchase and Sales	1,20,000	2,05,000
Stock	30,000
Returns	3,500	5,500
Wages	9,000
Salaries	10,000
Office Expenses and Petties	1,400
Carriage on Purchases and Import Duty	2,200
Stationery and Printing Literature	2,750
Discounts		3,700
Bad Debts	1,200
Capital of Mr. Roobex		1,15,000
Loan from Miss Setalwad @ 10% (gainfully employed through the year)		15,000
Insurance	1,800
Sundry Debtors and Creditors	40,000	12,000
Interest Paid on Loan	1,500
Commission for Agency Work		1,600
Cash and Bank Balances	7,700
Investments	20,000
Petty Cash	250
Bills Receivable and Payable	9,000	2,000
Bad Debts Recovered		500
	3,60,300	3,60,300

Closing stock on 31.12.2018 was ₹ 56,000.

Answer 1

In the Books of Mr. Roobex
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	-	30,000	By Sales	2,05,000	2,01,500
To Purchases	1,20,000	1,14,500	Less: Returns	(3,500)
Less: Returns	(5,500)		By Closing Stock		56,000
To Carriage Inward	-	2,200
To Wages	-	9,000
To Gross Profit	-	1,01,800
		2,57,500			2,57,500
To Office Expenses and Petties	-	1,400	By Gross Profit	-	1,01,800
To Interest Paid on Loan	-	1,500	By Discount Received	-	3,700
To Salaries	-	10,000	By Commission for agency work	-	1,600
To Stationery and Printing Literature	-	2,750
To Insurance	-	1,800
To Bad Debt	1,200	700
Less: Bad Debt Recovered	(500)
To Net Profit	-	88,950
		1,07,100			1,07,100

 

Balance Sheet as on 31.12.2018
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	1,15,000	2,02,950	Freehold Land	60,000
Add: Net Profit	88,950		Office Land Factory Buildings	40,000
	2,03,950		Bills Receivable	9,000
Less: Drawings	(1,000)		Sundry Debtors	40,000
Sundry Creditors	-	12,000	Cash & Bank Balance	7,700
Bills Payable	-	2,000	8% Investments	20,000
Loan from Miss Setalwad	-	15,000	Petty Cash	250
			Closing Stock	56,000
		2,32,950		2,32,950