Question

Prepare Final accounts of Abdul Traders for the year ending 31st March 2019 with the help of the following Trial Balance and Adjustments.
Trial Balance as of 31st March 2019.

Debit Balance	Amount (₹)	Credit Balance	Amount (₹)
Salaries	10,000	Interest Received	2,400
Purchases	71,400	Capital	1,60,000
Rent (11 months)	2,200	Sales	85,000
Machinery	56,000	Provision for Bad Debts	2,000
Advance against wages	4,000	Commissions Received	1,600
Opening stock	20,000	Bills Payable	9,200
Bad debts	1,000	Creditors	56,000
Prepaid Insurance	2,400
Wages	2,600
Loose Tools	26,000
Commission receivable	400
Sundry Debtors	64,000
Cash	1,000
Bank	3,000
Drawings	7,600
Freight Inward	1,000
Bills Receivable	13,600
Loan to Aruna	30,000
	3,16,200		3,16,200

Adjustments:

1. Closing stock valued at ₹ 89,600

2. Outstanding expenses Salaries ₹ 2,000, Wages ₹ 4,000

3. Charge depreciation on Machinery @ 10%

4. Bad debts are written off ₹ 2,000 and create a provision for bad and doubtful debts 5% on Sundry Debtors.

Answer 1

In the books of Abdul Traders
Dr.	Trading & Profit & Loss Account for the year ended 31st March 2019				Cr.
Particulars	Amt. (₹)	Amt. (₹)	Particulars	Amt. (₹)	Amt. (₹)
To Opening stock		20,000	By Sales		85,000
To Purchases		71,400	By Closing Stock		89,600
To Wages	2,600
Add: Outstanding	4,000	6,600
To Freight Inward		1,000
To Gross Profit c/d		75,600
		1,74,600			1,74,600
To Salaries	10,000		By Gross Profit bld		75,600
Add: Outstanding	2,000	12,000	By Interest Received		2,400
To Rent (11m)	2,200		By Commission Received		1,600
Add: Outstanding (1m)	200	2,400
To Bad debts (T)	1,000
Add: New B. D. (A)	2,000
Add: New R.D.D (A)	3,100
	6,100
Less: Old R.D.D (T)	2,000	4,100
To Dep. on Machinery		5,600
To Net Profit c/d		55,500
		79,600			79,600

 

Balance Sheet as of 31st March 2019
Liabilities	Amt. (₹)	Amt. (₹)	Assets	Amt. (₹)	Amt. (₹)
Capital	1,60,000		Machinery	56,000
Less: Drawings	7,600		Less: Depreciation @ 10 %	5,600	50,400
	1,52,400		Advance against wages		4,000
Add: Net Profit	55,500	2,07,900	Prepaid Insurance		2,400
Bills Payable		9,200	Loose Tools		26,000
Creditors		56,000	Commission Receivable		400
Outstanding Salaries		2,000	Sundry Debtors (T)	64,000
Outstanding Wages		4,000	Less: New B. D.(A)	2,000
Outstanding Rent		200		62,000
			Less: New R.D.D. (A)	3,100	58,900
			Cash		1,000
			Bank		3,000
			Bills Receivable		13,600
			Loan to Aruna		30,000
			Closing Stock		89,600
		2,79,300			2,79,300