Question

The following is the trial balance of Mr. A. Chatterjee for the year ended 31st December, 2018. Compile the final accounts for him, after incorporating the adjustments and thereafter supply him with the required information, listed by him.

	Debit (₹)	Credit (₹)
Opening Stock	5,000
Capital		30,000
Drawings	2,000
Loan from Mr. Patel		8,000
Purchases and Sales	13,000	50,000
Rejections Returned	2,000	500
Wages	5,000
Salaries	8,000
Carriage Outward	2,000
Rent and Rates	3,000
Telephone and Trunk Calls	800
Petty Expenses	400
Plant and Machinery	35,000
Office Fixtures and Equipment	10,000
Cash in Hand	2,000
Bank Overdraft		1,000
Customers and Suppliers	8,000	6,700
	96,200	96,200

Closing stock value is ₹ 15,000.

Answer 1

In the Books of Mr. A. Chatterjee
Dr.	Trading and Profit and Loss A/c for the year ended 31.12.2019				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Opening Stock		5,000	By Sales	50,000	48,000
To Purchases	13,000	12,500	Less: Returns	(2,000)
Less: Returns	(500)		By Closing Stock	-	15,000
To Wages	-	5,000
To Gross Profit	-	40,500
		63,000			63,000
To Salaries	-	8,000	By Gross Profit	-	40,500
To Carriage Outward	-	2,000
To Rent & Rates	-	3,000
To Telephone & trunk Calls	-	800
To Petty Expenses	-	400
To Net Profit	-	26,300
		40,500			40,500

 

Balance Sheet as on 31.12.2019
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	30,000	54,300	Plant & Machinery	35,000
Add: Net Profit	26,300		Office Furniture & Fix.	10,000
	56,300		Cash in Hand	2,000
Less: Drawings	(2,000)		Debtors	8,000
Loan From Mr. Patel	-	8,000	Closing Stock	15,000
Sundry Creditors	-	6,700
Bank Loan	-	1,000
		70,000		70,000