Question

The following balances were extracted from the books of Sri S. Kumar on 31st December 2018.

	Dr. (₹)	Cr. (₹)
Capital		24,500
Drawings	2,000
General Expenses	2,500
Building	11,000
Machinery	9,340
Opening Stock	16,200
Power	2,240
Taxes & Insurance	1,315
Wages	7,200
Sundry Debtors	6,280
Sundry Creditors		2,500
Charity	105
Bad Debts	550
Bank Overdraft		11,180
Sales		65,360
Purchases	47,000
Scooter	2,000
Bad Debt Provision		900
Commission		1,320
Trade Expenses	1,780
Bills Payable		3,850
Cash	100
	1,09,610	1,09,610

Stock on 31st December 2018 was valued at ₹ 23,500.

Prepare Final Accounts for the year ended 31st December 2018.

Answer 1

In the Books of Mr. Sri S. Kumar
Dr.	Trading and Profit and Loss A/c for the year ended 31.12.2018		Cr,
Particulars	Amount (₹)	Particulars	Amount (₹)
To Opening Stock	16,200	By Sales Cash	65,360
To Purchases	47,000	By Closing Stock	23,500
To Power	2,240
To Wages	7,200
To Gross Profit	16,220
	88,860		88,860
To General Expenses	2,500	By Gross Profit	16,220
To Insurance & taxes	1,315	By Commission Earned	1,320
To Bad debt	550
To Charity	105
To Travelling Expenses	1,780
To Net Profit	11,290
	17,540		17,540

 

Balance Sheet as on 31.12.2018
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital	24,500	33,790	Building	-	11,000
Add: Net Profit	11,290		Machinery	-	9,340
Less: Drawings	(2,000)		Scooter	-	1,240
Sundry Creditors	-	2,500	Sundry Debtors	6,280	5,380
Bank  Overdraft	-	11,180	Less: Bad Debt Provision	(900)
Bills Payable	-	3,850	Cash in hand	-	100
			Closing Stock	-	23,500
		51,320			51,320