Question

From the following information, prepare Balance Sheet of a trader as at 31st March, 2018 arranging the assets and liabilities–(i) in order of permanence and (ii) in order of liquidity:

	₹		₹
Goodwill	20,000	Bank	20,000
Capital	1,80,000	Sundry Creditors	63,000
Liabilities for Expenses	1,200	Bills Receivable	13,000
Cash in Hand	1,000	Plant and Machinery	40,000
Investment	20,000	Provision for Doubtful Debts	2,500
Bills Payable	10,700	Closing Stock	80,000
Net Profit	92,600	Furniture	16,000
Sundry Debtors	50,000	Drawing	30,000
Land and Building	60,000

Answer 1

(I) Balance Sheet in Order of Permanence

Balance Sheet as on March 31, 2018
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	1,80,000		Goodwill		20,000
Less: Drawings	(30,000)		Land and Building		60,000
Add: Net Profit	92,600	2,42,600	Plant and Machinery		40,000
Sundry Creditors		63,000	Furniture		16,000
Bills Payable		10,700	Investment		20,000
Liabilities for Expenses		1,200	Closing Stock		80,000
			Sundry Debtors	50,000
			Less: Provision for Doubtful Debts	(2,500)	47,500
			Bill Receivable		13,000
			Bank		20,000
			Cash in Hand		1,000
		3,17,500			3,17,500

(II) Balance Sheet in Order of Liquidity

Balance Sheet as on March 31, 2018
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Liabilities for Expenses		1,200	Cash in Hand		1,000
Bills Payable		10,700	Bank		20,000
Sundry Creditors		63,000	Bills Receivable		13,000
Capital	1,80,000		Sundry Debtors	50,000
Less: Drawings	(30,000)		Less: Provision for Doubtful Debts	(2,500)	47,500
Add: Net Profit	92,600	2,42,600	Closing Stock		80,000
			Investment		20,000
			Furniture		16,000
			Plant and Machinery		40,000
			Land and Building		60,000
			Good will		20,000
		3,17,500			3,17,500