Question

The following is the Trial Balance of Mr. Gupta for the year ended 31st December, 2022. Compile the final accounts for him, after incorporating the adjustments given.

	Dr. (₹)	Cr. (₹)
10% Loan on Mortgage of Premises		34,000
Machinery	50,000
Debtors and Creditors	24,000	21,400
Loose Tools	5,000
Premises (owner built and mortgaged)	75,000
Capital Invested and Cash Drawn	4,000	1,00,000
Stock (1.1.2018)	18,000
Sales Against Cash		48,000
Sales Against Credit		72,000
Salaries	10,000
Wages	4,000
Carriage Outward	2,000
Bad Debts Written off	500
Royalty (Direct Expenses)	3,000
Cash and Bank Balances	6,000
Rent Paid	5,000
Commissions	400	500
Purchases (Cash and Credit) and Returns	66,000	6,000
Rates and Taxes	3,000
Miscellaneous Expenses	6,000
	2,81,900	2,81,900

Closing stock is valued at ₹ 50,000. 

Answer 1

In the Books of Mr. Gupta
Dr.	Trading and Profit and Loss A/c for the year ended 31.12.2022				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Opening Stock	-	18,000	By Sales Cash	48,000	1,20,000
To Purchases	66,000	60,000	Add: Credit Sale	72,000
Less: Returns	(6,000)		By Closing Stock	-	50,000
To Wages	-	4,000
To Royalty	-	3,000
To Gross Profit	-	85,000
		1,70,000			1,70,000
To Salaries	-	10,000	By Gross Profit	-	85,000
To Carriage Outward	-	2,000	By Discount Received	-	500
To Bad Debt written of	-	500
To Rent Paid	-	5,000
To Commission Paid	-	400
To Rates & Taxes	-	3,000
To Misc. Expenses	-	6,000
To Net Profit	-	58,600
		85,500			85,500

 

Balance Sheet as on 31.12.2022
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital	1,00,000	1,51,200	Machinery	50,000
Add: Net Profit	55,200		Sundry Debtors	24,000
Less: Drawings	(4,000)		Loose Tools	5,000
10% Loan on mortgage of Premises	-	34,000	Premises	75,000
Sundry Creditors	-	21,400	Cash & Bank Balance	6,000
Outstanding Interest on Loan	-	3,400	Closing Stock	50,000
		2,10,000		2,10,000