From the following Trial Balance of Manish Enterprise, Prepare the Trading Account and Profit & 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
Cash in hand	5,200	Capital	50,000
Opening stock	10,370	Bank loan	15,000
Goodwill	10,000	Bills Payable	8,500
Patents	4,000	Creditors	38,260
Cash at Bank	4,400	General Reserve	1,500
freight	2,500	Dividend	2,000
Power & Fuel	1,500	Interest on Fixed Deposit	3,440
Furniture	12,000	Sales	40,000
Purchases	35,260
Mobile charges	3,200
Factory Salaries	2,400
Repairs	800
Lighting	1,000
Carriage outward	360
Professional charges	1,240
debtors	40,000
Plant & machinery	13,700
Office Equipment	10,000
Carriage Inwards	770
	1,58,700		1,58,700

Adjustments:

1. Closing Stock was 32,000

2. Write off 50% of patents, depreciation Plant & machinery by 10% p.a. and Office Equipment by 20%

3. reserve for bad debts is to be created 5% and discount on debtors 2%

4. Outstanding expenses mobile charges 300 and freight 500

5. Charge Interest on Capital @5%

6. Goods of 2,000 distributed on free sample

Solution:

In the Books of Manish Enterprise 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		10,370	By Sales		40,000
To Purchases		35,260
To Freight	2,500
(+) Outstanding Freight	500	3,000
To Power & Fuel		1,500
To Factory Salaries		2,400	By Closing stock		32,000
To Carriage Inward		770	By Goods distributed as free sample		2,000
To Gross Profit c/d		20,700
		74,000			74,000

To Repairs		800	By Gross Profit b/d		20,700
To Mobile Charges	3,200		By Dividend		2,000
(+) Outstanding Mobile charges	300	3,500
To Carriage outward		360	By Interest on Fixed Deposit		3,440
To Professional Charges		1,240
To Write off 50% Patents		2,000
To Depreciation on
Plant & machinery	1,370
Office Equipment	2,000	3,370
To R.D.D.		2,000
To Discount on Debtors
		760
To Advertisement		2,000
To Lighting		1,000
To Interest on capital		2,500
To Net Profit		6,610
		26,140			26,140

Balance Sheet as on 31st March, 2019

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital	50,000		Cash in hand		5,200
(+) Interest on capital	2,500
	52,500
(+) Net Profit	6,610	59,110
			Goodwill		10,000
			Patents	4,000
			(-) write off 50%	(2,000)	2,000
			Cash at bank		4,400
Bank Loan		15,000	Furniture		12,000
Bills Payable		8,500	Debtors	40,000
			(-) R.D.D. @5%     (A)	2,000
			(-) Discount @2%	760	37,240
Creditors		38,260	Plant & machinery	13,700
			(-) Depreciation	(1,370)	12,330
Outstanding			Office Equipment	10,000
Freight	500		(-) Depreciation	2,000	8,000
Mobile charges	300	800
General Reverse		1,500	Closing Stock		32,000
		1,23,170			1,23,170