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 

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