From the following Trial Balance of Pushkraj you are required to prepare Trading Account and Profit and Loss Account for the year ended 31st March 2019 and Balance Sheet as on that date

Trial Balance as on 31st March 2019

Debit Balance	Amount	Credit Balance	Amount
Drawings	2,000	Capital	80,000
Motor Car	30,000	Sundry Creditors	25,000
Cash in hand	1,000	Dividends	4,800
Bills receivable	20,000	Commission	2,535
Wages	1,000	8% Loan (taken on 1.7.2018)	13,700
Discount	235	Purchases Return	400
Rent	300	Sales	38,680
Advertisement	2,500
Bad debs	500
Travelling Expenses	1,000
Purchases	27,400
Machinery	30,000
Office expenses	500
Sales Returns	680
Opening Stock	10,000
Sundry Debtors	35,500
Carriage Outward	500
Cash at Bank	2,000
	1,65,115		1,65,115

Adjustments:

1. Stock on 31st March, 2019 was valued at 28,000

2. Create a Provision for doubtful debts on Sundry Debtors @5%

3. Depreciation Motor Car by 5% p.a. and Machinery by 7% p.a.

4. Outstanding expenses Rent 800 & Wages 1,000

5. Charge interest on Capital @3% p.a.

6. Goods of 4,000 withdrawn by proprietor for personal use.

Solution:

In the Books Pushkraj Final Account

Trading A/c And Profit & Loss A/c for the year ended 31st march, 2019 

Particulars	Amount	Amount	Particulars	Amount	Amount
To Opening Stock		10,000	By Sales	38,680
			(-) Sales Return	(680)	38.000
To Purchase	27,400		By Goods withdrawn by proprietor		4,000
(-) Purchase Return	(400)	27,000
To Wages	1,000		By Closing stock		28,000
(+) Outstanding Wages	1,000	2,000
To Gross Profit c/d		31,000
		70,000			70,000

To Bad Debts	500	2,275	By Gross Profit b/d		31,000
(+) R.D.D.  (A)	1,775
To Discount		235	By Dividend		4,800
To Rent	300		By Commission		2,535
(+) Outstanding Rent	800	1,100
To Advertisement		2,500
To Travelling exp		1,000
To Office Exp		500
To Carriage Outward		500
To Depreciation on
Motor Car	1,500
Machinery	2,100	3,600
To Interest on capital		2,400
To Interest on loan		822
To Net Profit		23,403
		38,335			38,335

Balance Sheet as on 31st March, 2019

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital	80,000		Motor Car	30,000
(+) Interest on Capital	2,400		(-) Depreciation	1,500	28,500
	82,400
(-) Drawings	6,000
(+) Net Profit	23,403	99,803
			Cash in Hand		1,000
			Bills Receivable		20,000
Creditors		25,000	Machinery	30,000
			(-) Depreciation	2,100	27,900
8% loan (taken on 1.7.2018)	13,700		Debtors	35,500
(+) Interest			(-) Bad Debts     (A)	1,775	33,725
	822	14,522
Outstanding			Cash at Bank		2,000
Rent	800
Wages	1,000	1,800
			Closing Stock		28,000
		1,41,125			1,41,125

Explanatory Note:

Goods worth 4,000 withdrawn by proprietor for personal use.

Drawings in Trial Balance Rs.2,000

Adding 4,000 (Goods withdrawn by proprietor)

Therefore drawings in Balance Sheet is 6,000 and 4,000 in Trading Account