Question

From the following balances, prepare Final Accounts of M/s Raja & Sons for the year ended 31st March, 2019:
Salary ₹ 5,400; Insurance ₹ 2,500; Cash ₹ 400; Purchases ₹ 84,170; Rent Received ₹ 3,150; Drawings ₹ 2,100; Bills Payable ₹ 3,900; Debtors ₹ 38,080; Stock (1st April, 2018) ₹ 29,500; Bank Overdraft ₹ 9,700; Carriage ₹ 2,200; Creditors ₹ 4,200; Trade Expenses ₹ 4,900; Sales Return ₹ 4,700; Machinery ₹ 12,000; Wages ₹ 45,000; Sales ₹ 1,47,200; Purchases Return ₹ 3,900; Capital ₹ 58,900; Closing Stock (31st March, 2019) ₹ 36,200.

Answer 1

Financial Statement of M/s. Raja & Sons
Trading Account for the year ended March 31, 2019
Dr.							Cr.
Particulars			Amount (₹)	Particulars		Amount (₹)
Opening Stock			29,500	Sales	1,47,200
Purchases		84,170		Less: Sales Return	(4,700)	1,42,500
Less: Purchases Return		(3,900)	80,270	Closing Stock		36,200
Carriage			2,200
Wages			45,000
Gross Profit (Balancing Figure)			21,730
			1,78,700			1,78,700

Profit and Loss Account for the year ended March 31, 2019
Dr.					Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
Salary		5,400	Gross Profit	21,730
Insurance		2,500	Rent Received	3,150
Trade Expenses		4,900
Net profit (Balancing Figure)		12,080
		24,880		24,880

Balance Sheet as on March 31, 2019
Liabilities		Amount (₹)	Assets	Amount (₹)
Capital	58,900		Fixed Assets
Add: Net Profit	12,080		Machinery	12,000
Less: Drawings	(2,100)	68,880
Current Liabilities			Current Assets
Creditors		4,200	Closing Stock	36,200
Bank Overdraft		9,700	Debtors	38,080
Bills Payable		3,900	Cash	400
		86,680		86,680