Question

Mr. Gopal Das has only a Bank Pass Book and does not keep any other books of accounts. From the following information prepare his Final Accounts for the year ended 31st March, 2015.
An analysis of the Pass Book shows:-
Total amount received from Debtors and deposited with the Bank ₹ 2,20,000; Payment to Creditors ₹ 1,82,000; Salaries ₹ 6,000; Rent paid ₹ 4,800; Advertisement ₹ 2,000; Printing ₹ 800; Personal Expenses ₹ 4,000; Payment for Furniture ₹ 12,000; Balance at Bank on 31st March, 2015, ₹ 21,000.
Other Assets and Liabilities were as follows:

	1-4-2014	31-3-2015
	₹	₹
Sundry Debtors	30,000	42,000
Sundry Creditors	20,000	15,000
Stock	34,000	?
Salary Outstanding	400	500

Mr. Gopal Das takes 20% profit on sales.

Answer 1

Trading Account for the year ended March 31, 2015
Dr.			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Opening Stock	34,000	Sales (Credit)	2,32,000
Purchases (Credit)	1,77,000	Closing Stock	25,400
Gross Profit	46,400
	2,57,400		2,57,400

Profit & Loss Account for the year ended March 31, 2015
Dr.			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Salaries	6,000	Gross Profit	46,400
Outstanding Salary	100
Rent	4,800
Advertisement	2,000
Printing	800
Net Profit	32,700
	46,400		46,400

Balance Sheet as on March 31, 2015
Dr.				Cr.
Liabilities		Amount (₹)	Assets	Amount (₹)
Capital	56,200		Debtors	42,000
Less: Drawings	4,000		Stock	25,400
Add: Net Profit	32,700	84,900	Bank	21,000
Creditors		15,000	Furniture	12,000
Outstanding Salary		500
		1,00,400		1,00,400

Working Notes:

Balance Sheet as on March 31, 2014
Dr.			Cr.
Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors	20,000	Debtors	30,000
Outstanding Salaries	400	Stock	34,000
Capital (Balancing figure)	56,200	Bank	12,600
	76,600		76,600

Bank Account
Dr.			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Balance b/d (Balancing Figure)	12,600	Creditors A/c	1,82,000
Debtors A/c	2,20,000	Salary A/c	6,000
		Rent A/c	4,800
		Advertisement A/c	2,000
		Printing A/c	800
		Drawings A/c	4,000
		Furniture A/c	12,000
		Balance c/d	21,000
	2,32,600		2,32,600

Debtors Account
Dr.			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Balance b/d	30,000	Bank A/c	2,20,000
Sales A/c	2,32,000	Balance c/d	42,000
	2,62,000		2,62,000

Creditors Account
Dr.			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Bank A/c	1,82,000	Balance b/d	20,000
Balance c/d	15,000	Purchases A/c	1,77,000
	1,97,000		1,97,000

Rate of Gross Profit (on sales) = 20%

Gross Profit = 20% of 2,32,000 = 46,400

Gross Profit = Net Sales – Cost of Goods Sold

46,400 = 2,32,000 – Cost of Goods Sold

Cost of Goods Sold = 2,32,000 – 46,400 = ₹ 1,85,600

Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses – Closing Stock

1,85,600 = 34,000 + 1,77,000 – Closing Stock

Closing Stock = 34,000 + 1,77,000 – 1,85,600 = ₹ 25,400