Question

From the following balances taken from the books of Hari & Co., prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date:

	₹		₹
Capital	3,50,000	Salaries	11,100
Building	1,87,500	Discount Allowed	3,000
Machinery	92,500	Interest on Investments	1,000
Debtors	35,000	Stock (1st April, 2017)	1,65,000
Investment	35,000	Bills Payable	50,000
General Expenses	8,000	Sales	6,35,000
Rent Paid	37,100	Purchases	4,68,500
Proprietor's Drawings	6,500	Wages	25,000
Electricity Charges	1,900	Cash in Hand	18,000
Carriage Inwards	8,500	Sundry Creditors	1,00,000
Cash at Bank	30,000	Returns Inward	4,500
Returns Outward	1,100

Closing Stock was valued at ₹ 1,82,100.

Answer 1

Financial Statement of Hari & Co.
Trading Account for the year ended March 31, 2018
Dr.							Cr.
Particulars			Amount (Rs)	Particulars		Amount (Rs)
Opening Stock			1,65,000	Sales	6,35,000
Purchases		4,68,500		Less: Return Inwards	(4,500)	6,30,500
Less: Return Outwards		(1,100)	4,67,400	Closing Stock		1,82,100
Wages			25,000
Carriage Inwards			8,500
Gross Profit (Balancing Figure)			1,46,700
			8,12,600			8,12,600

Profit and Loss Account for the year ended March 31, 2018
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
General Expenses		8,000
Rent Paid		37,100	Gross Profit	1,46,700
Electricity Charges		1,900	Interest on Investments	1,000
Salaries		11,100
Discount Allowed		3,000
Net Profit (Balancing Figure)		86,600
		1,47,700		1,47,700

Balance Sheet as on March 31, 2018
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Capital	3,50,000		Fixed Assets
Add: Net Profit	86,600		Building	1,87,500
Less: Drawings	(6,500)	4,30,100	Machinery	92,500
Current Liabilities			Investments	35,000
Sundry Creditors		1,00,000	Current Assets
Bills Payable		50,000	Closing Stock	1,82,100
			Debtors	35,000
			Cash at bank	30,000
			Cash in Hand	18,000
		5,80,100		5,80,100