Following are the closing ledger balances of Deepak & Co. Prepare Trading Account and Profit & Loss Account for the year ending 31st March 2019 and Balance Sheet as on that date

Ledger Balances of Mr. Deepak and Co. as on 31st March, 2019

Particulars Amount Particulars Amount 
Bank 30,000 Capital 1,20,000 
Bills Payable 7,500 Insurance Premium 18,000 
(1.1.2019 to 31.12.2019) 
Furniture 19,500 Salaries 30,000 
Commission Received 3,000 Bank Loan  30,000 
Stock (1.4.2019) 27,000 Sundry expenses 7,500 
Building 37,500 Interest paid 1,500 
Wages 7,500 Machinery 25,500 
Creditors 37,500 Sales 96,000 
Bad debts 4,500 Purchases 42,000 
R.D.D. (old) 3,000 Debtors 31,500 
Sales Return 1,500 Purchases return 3,00 
  Cash in Hand 16,500 
    
    

Adjustments: 

1. Closing Stock was valued at 60,000 

2. An Amount of 3,000 is still to be received on account of commission  

3. Provision of discount on debtors and Provision for discount on creditors are to be created 2% and 3% respectively. 

4. Amount of Furniture is to be reduce by 4,500 and Building by 10% 

5. Outstanding expenses Salaries 4,500 and Wages 1,500 
 
Solution:

In the Books of Mr. Deepak 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  27,000 By Sales 96,000  
(-) Sales return (1,500) 94,500 
To Purchase 42,000     
(Purchase return) (3,000) 39,000 
To Wages 7,500     
(+) Outstanding
Wages 
1,500 9,000 
   By Closing Stock  60,000 
To Gross Profit c/d  79,500    
  1,54,500   1,54,500 
To Bad Debt    (T) 4,500 1,500 By Gross Profit b/d  79,500 
(-) R.D.D. old    (T) (3,000) 
To Insurance Premium 18,000  By Bad Debt      (T) 4,500  
(-) Prepaid Insurance   (+) R.D.D.C New(A) 1,125 5,625 
(13,500) 4,500  
To Salaries 30,000  By Commission Received 3,000  
(+) Outstanding Salaries4,500 34,500 (+) Outstanding
Commission 
  
3,000 6,000 
To Bad Debt     (T) 4,500     
(+) R.D.D.D      (A) 630 5,130 
To Sundry Expenses  7,500    
To Interest paid   1,500    
To Depreciation on      
 4,500  
 3,750 8,250 
      
To Net Profit  28,245    
  91,125   91,125 


 

Balance Sheet as on 31st March, 2019

Liabilities Amount Amount Assets Amount Amount 
Capital 1,20,00028,245  Furniture 19,500  
(+) Net Profit  1,48,245 (-) Depreciation  (4,500) 15,000 
   Bank  30,000 
   Building 37,500  
3,750 33,750 
   Machinery  25,500 
   Cash in Hand  16,500 
Creditors 37,500  Debtors         31,500  
(-) R.D.D.C New  (1,125) 36,375 (-) R.D.D. New     (630) 30,870 
Bills Payable  7,500 Prepaid Insurance  13,500 
Bank loan   30,000 Closing Stock  60,000 
Outstanding Wages  1,500 Outstanding
Commission 
 3,000 
Outstanding salaries  4,500    
      
  2,28,120   2,28,120 

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