From the following Trial Balance of Sanjiv & Sons. Prepare Trading Account and Profit & Loss Account for the year ending on 31st March, 2019 and a Balance Sheet as on that date.

Particulars	Debit	Credit Amount (₹)
	Amount (₹)
Opening stock	22,000
Purchase and Sales	1,78,000	4,60,000
Carriage Outward	4,800
Plant and Machinery	50,000
Debtors and Creditors	44,000	76,000
Returns	2,000	4,000
Buildings	58,000
Motor Van	40,000
Printing and Stationery	3,000
Wages	28,000
Reserved for Bad debts		3,200
Communication		2,400
Office expenses	5,400
Carriage	9,000
Furniture	20,000
premises	81,000
Loose Tools	20,400
Drawings	24,700
Bank Overdraft		22,00
Cash in hand	71,000
Dividend		3,300
Capital		1,40,000
Salaries	44,000
Bills Receivable and Bill Payable	5,600	8,400
Bad debts	2,400
Advertisements (3years)	6000
	7.19,300	7,19,300

 

Additional Information: 

1. Closing stock on 31st March, 2019,was at cost ₹ 60,000 and Market Price ₹ 70,000. 

2. Outstanding expenses : Wages ₹ 4,000,Salary ₹ 2,400 

3. Provide depreciation at 10% on Motor Van and 5% on Furniture. 

4. Write off ₹ 2,000 for Bad debts and create R.D.D. at 5% on debtors. 

5. Provide 10% p.a. interest on capital. 

Solution : 

center;">Final Account 

In the books of M/s Sanjiv & Sons  

Trading Account for the year ended 31st March,2019. 

Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹ )
To Opening stock		22,000	By Sales	4,60,000
			(-) Return	(2000)	4,58,000
To Purchase	1,78,000
(-) Return	(4,000)	1,74,000
TO Carriage		9,000
To Wages	28,000
(+) Outstanding expenses	4,000	32,000
			By Closing Stock		60,000
To Gross Profit c/d		2,81,000
		5,18,000			5,18,000

Profit and Loss Account for the year ended 31st March, 2019  

Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Carriage Outward		4,800	By Gross Profit b/d		2,81,000
To Office Expenses		5,400	By Communication		2,400
To Salaries	44,000		By Dividend		3,300
(+) Outstanding expenses	2,400	46,400
To Depreciation on Motor Van
Furniture		4,000
		1,000
To Bad debts	2,400
(+)New Bad debts	2,000
(+ )New R.D.D
	2,100
(-) Old R.D.D	6,500
	(3,200)	3,300
To Advertisement	6,000
(-) Prepaid	(4,000)	2,000
To Interest on Capital
		14,000
Printing and Stationery
To Net Profit
		2,02,800
		2,86,700			2,86,700

 Balance sheet as on 31st March, 2019 

Liabilities Amount (₹)  Amount (₹)  Assets  Amount (₹)  Amount (₹)  Bills Overdraft    22,000  Plant and Machinery    50,000  Capital   1,40,000      Debtors  44,000    (-) Drawings  (24,700)      (-) Bad debts  (2000)      1,15,300        42,000    (+) Interest on capital  14,000      (-) R.D.D @5%  (2,100)  39,900            (+) Net Profit  1,29,300      2,02,800    Bills Payable    8,400  Buildings    58,000  Creditors    76,000  Motor Van  40,000    (-) Depreciation @ 10%  (4,000)  36,000  Outstanding Exp.        Furniture  20,000    Salaries        (-) Depreciation @ 5%  (1,000)  19,000  wages  4,000                  Premises    81,000        Loose Tools    20,400        Cash    71,000        Bills Receivable    5,600        Prepaid Advertisement    4,000        Closing Stock    60,000                              4,44,900      4,44,900