Question

Anand Mohan has kept incomplete books. From the following particulars, prepare his Final Accounts for the year ending 31st March, 2012 :
Receipts:- Received from Debtors ₹ 37,000; Fresh Capital brought in cash ₹ 20,000; Commission received ₹ 2,800; Cash Sales ₹ 95,000.
Payments:- Paid to Creditors ₹ 35,000; Cash Purchases ₹ 26,500; Ornaments for his wife ₹ 22,000; Wages ₹ 18,800; Rent ₹ 8,400; Salary ₹ 12,000.
His Other Assets and Liabilities:-

	31st March, 2011 (₹)	31st March, 2012 (₹)
Debtors	15,600	18,000
Creditors	15,400	13,000
Machinery	36,000	36,000
Stock	28,000	21,200
Cash	5,000	–

Adjustments :-
(1) Unpaid wages ₹1,500.
(2) Provide for Doubtful Debts at 5% on Debtors.

Answer 1

Trading Account for the year ended March 31, 2012
Dr.				Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
Opening Stock		28,000	Sales (Cash + Credit)	1,34,400
Purchases (Cash + Credit)		59,100	Closing Stock	21,200
Wages	18,800
Add: Outstanding	1,500	20,300
Gross Profit		48,200
		1,55,600		1,55,600

Profit & Loss Account for the year ended March 31, 2012
Dr.			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Salary	12,000	Gross Profit	48,200
Rent	8,400	Commission	2,800
Bad Debts	900
Net Profit	29,700
	51,000		51,000

Balance Sheet as on March 31, 2012
Dr.					Cr.
Liabilities		Amount (₹)	Assets		Amount (₹)
Capital	69,200		Cash in Hand		37,100
Add: Additional Capital	20,000		Closing Stock		21,200
Less: Drawings	22,000		Debtors	18,000
Add: Net Profit	29,700	96,900	Less: Bad Debts	900	17,100
Creditors		13,000	Machinery		36,000
Unpaid Wages		1,500
		1,11,400			1,11,400

Working Notes:

Balance Sheet as on March 31, 2011
Dr.			Cr.
Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors	15,400	Debtors	15,600
Capital (Balancing figure)	69,200	Machinery	36,000
		Stock	28,000
		Cash	5,000
	84,600		84,600

Cash Account
Dr.			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Balance b/d	5,000	Creditors A/c	35,000
Capital A/c	20,000	Drawings A/c	22,000
Debtors A/c	37,000	Purchases A/c	26,500
Sales A/c	95,000	Wages A/c	18,800
Commission A/c	2,800	Salaries A/c	12,000
		Rent A/c	8,400
		Balance c/d	37,100
	1,59,800		1,59,800

Debtors Account
Dr.			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Balance b/d	15,600	Cash A/c	37,000
Sales A/c	39,400	Balance c/d	18,000
	55,000		55,000

Creditors Account
Dr.			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Cash A/c	35,000	Balance b/d	15,400
Balance c/d	13,000	Purchases A/c	32,600
	48,000		48,000