From the following Trial Balance of Mahesh, prepare his Final Accounts for the year ended 31st March, 2019:
Heads of Accounts
Debit Balances
(₹)
Credit Balances
(₹)
Purchases
2,50,000
…
Sales
…
5,00,000
Returns Inward
12,000
...
Returns Outward
…
10,000
Carriage
8,000
…
Wages
60,000
…
Miscellaneous Expenses
2,000
…
Insurance
1,200
…
Repairs
8,000
…
Debtors
1,15,000
…
Creditors
…
1,00,000
Printing and Stationery
6,000
…
Advertisement
15,000
…
Bills Receivable
4,000
…
Bills Payable
…
2,000
Opening Stock
30,000
…
Cash in Hand
12,000
…
Interest on Bank Loan
2,800
…
Machinery
2,80,000
…
Furniture
34,000
…
Drawings
20,000
…
Commission
…
1,000
12% Bank Loan
…
30,000
Capital
…
2,40,000
Rent Received
…
5,000
Cash at Bank
28,000
…
Total
8,88,000
8,88,000
Additional Information:
(i) Closing Stock on 31st March, 2019 was ₹ 21,000.
(ii) Rent of ₹ 1,200 has been received in advance.
(iii) Outstanding liability for Miscellaneous expenses ₹ 12,000.
(iv) Commission earned during the year but not received was ₹ 2,100.
(v) Goods costing ₹ 2,000 were taken by the proprietor for his personal use but entry was not passed in the books of account.
|
|
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|
Heads of Accounts
|
Debit Balances
(₹)
|
Credit Balances
(₹)
|
|
| Purchases |
2,50,000
|
…
|
|
| Sales |
…
|
5,00,000
|
|
| Returns Inward |
12,000
|
...
|
|
| Returns Outward |
…
|
10,000
|
|
| Carriage |
8,000
|
…
|
|
| Wages |
60,000
|
…
|
|
| Miscellaneous Expenses |
2,000
|
…
|
|
| Insurance |
1,200
|
…
|
|
| Repairs |
8,000
|
…
|
|
| Debtors |
1,15,000
|
…
|
|
| Creditors |
…
|
1,00,000
|
|
| Printing and Stationery |
6,000
|
…
|
|
| Advertisement |
15,000
|
…
|
|
| Bills Receivable |
4,000
|
…
|
|
| Bills Payable |
…
|
2,000
|
|
| Opening Stock |
30,000
|
…
|
|
| Cash in Hand |
12,000
|
…
|
|
| Interest on Bank Loan |
2,800
|
…
|
|
| Machinery |
2,80,000
|
…
|
|
| Furniture |
34,000
|
…
|
|
| Drawings |
20,000
|
…
|
|
| Commission |
…
|
1,000
|
|
| 12% Bank Loan |
…
|
30,000
|
|
| Capital |
…
|
2,40,000
|
|
| Rent Received |
…
|
5,000
|
|
| Cash at Bank |
28,000
|
…
|
|
| Total |
8,88,000
|
8,88,000
|
|
Additional Information:
(i) Closing Stock on 31st March, 2019 was ₹ 21,000.
(ii) Rent of ₹ 1,200 has been received in advance.
(iii) Outstanding liability for Miscellaneous expenses ₹ 12,000.
(iv) Commission earned during the year but not received was ₹ 2,100.
(v) Goods costing ₹ 2,000 were taken by the proprietor for his personal use but entry was not passed in the books of account.
Financial Statement of Mahesh
Trading Account
for the year ended March 31, 2019
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Opening stock
30,000
Purchases 2,50,000
Sales
5,00,000
Less: Drawings
(2,000)
Less: Return Inwards
(12,000)
4,88,000
Less: Return Outwards
(10,000)
2,38,000
Closing Stock
21,000
Carriage
8,000
Wages
60,000
Gross Profit (Balancing Figure)
1,73,000
5,09,000
5,09,000
Profit and Loss Account
for the year ended March 31, 2019
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Miscellaneous expenses
2,000
Gross Profit
1,73,000
Add: Outstanding Miscellaneous Expenses
12,000
14,000
Commission
1,000
Insurance
1,200
Add: Accrued Commission
2,100
3,100
Repairs
8,000
Rent Received
5,000
Advertisement
15,000
Less: Advance Rent
1,200
3,800
Interest on Bank Loan
2,800
Add: Interest Outstanding
800
3,600
Printing and Stationary
6,000
Net Profit (Balancing Figure)
1,32,100
1,79,900
1,79,900
Balance Sheet
as on March 31, 2019
Liabilities
Amount
(₹)
Assets
Amount
(₹)
Capital
2,40,000
Fixed Assets
Less: Drawings
(22,000)
Machinery
2,80,000
Add: Net Profit
1,32,100
3,50,100
Furniture
34,000
10% Loan from Bank
30,000
Current Assets
Add: Outstanding Interest
800
30,800
Closing Stock
21,000
Current Liabilities
Debtors
1,15,000
Creditors
1,00,000
Bills Receivable
4,000
Bills Payable
2,000
Cash at Bank
28,000
Advance Rent
1,200
Cash in Hand
12,000
Outstanding Trade Expenses
12,000
Commission Accrued
2,100
4,96,100
4,96,100
Working Notes:
Calculation of Outstanding Interest on Loan
Interest on loan (30,000 × 12%)
3,600
Less: Interest Paid
(2,800)
Interest Outstanding on Loan
800
|
Financial Statement of Mahesh |
|||||
|
Trading Account for the year ended March 31, 2019 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||
|
Opening stock |
30,000 |
|
|
|
|
| Purchases 2,50,000 | Sales |
5,00,000 |
|||
|
Less: Drawings |
(2,000) |
|
Less: Return Inwards |
(12,000) |
4,88,000 |
|
Less: Return Outwards |
(10,000) |
2,38,000 |
Closing Stock |
21,000 |
|
|
Carriage |
8,000 |
|
|
||
|
Wages |
60,000 |
|
|
||
|
Gross Profit (Balancing Figure) |
1,73,000 |
|
|
||
|
|
|
|
|
||
|
|
5,09,000 |
|
5,09,000 |
||
|
|
|
|
|
||
|
Profit and Loss Account for the year ended March 31, 2019 |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||||
|
Miscellaneous expenses |
2,000 |
|
Gross Profit |
1,73,000 |
|||
|
Add: Outstanding Miscellaneous Expenses |
12,000 |
14,000 |
Commission |
1,000 |
|
||
|
Insurance |
1,200 |
Add: Accrued Commission |
2,100 |
3,100 |
|||
|
Repairs |
8,000 |
Rent Received |
5,000 |
|
|||
|
Advertisement |
15,000 |
Less: Advance Rent |
1,200 |
3,800 |
|||
|
Interest on Bank Loan |
2,800 |
|
|
|
|||
|
Add: Interest Outstanding |
800 |
3,600 |
|
|
|||
|
Printing and Stationary |
6,000 |
|
|
||||
|
Net Profit (Balancing Figure) |
1,32,100 |
|
|
||||
|
|
|
|
|
||||
|
|
1,79,900 |
|
1,79,900 |
||||
|
|
|
|
|
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|
Balance Sheet as on March 31, 2019 |
||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
|
Capital |
2,40,000 |
|
Fixed Assets |
|
|
Less: Drawings |
(22,000) |
|
Machinery |
2,80,000 |
|
Add: Net Profit |
1,32,100 |
3,50,100 |
Furniture |
34,000 |
|
10% Loan from Bank |
30,000 |
|
Current Assets |
|
|
Add: Outstanding Interest |
800 |
30,800 |
Closing Stock |
21,000 |
|
Current Liabilities |
|
Debtors |
1,15,000 |
|
|
Creditors |
1,00,000 |
Bills Receivable |
4,000 |
|
|
Bills Payable |
2,000 |
Cash at Bank |
28,000 |
|
|
Advance Rent |
1,200 |
Cash in Hand |
12,000 |
|
|
Outstanding Trade Expenses |
12,000 |
Commission Accrued |
2,100 |
|
|
|
4,96,100 |
|
4,96,100 |
|
|
|
|
|
|
|
Working Notes:
Calculation of Outstanding Interest on Loan
|
Interest on loan (30,000 × 12%) |
3,600 |
|
Less: Interest Paid |
(2,800) |
|
Interest Outstanding on Loan |
800 |
