Question

Trial Balance of Chatter Sen on 31st March, 2019 revealed the following balances:

Debit Balances:	₹	Debit Balances (Contd.):	₹
Plant and Machinery	90,000	Rent	2,000
Purchases	58,000	Advertisement	2,000
Sales Return	1,000	Cash at Bank	6,900
Opening Stock	40,000	Credit Balances:
Discount Allowed	350	Capital A/c	1,10,000
Bank Charges	75	Sales	1,27,000
Sundry Debtors	45,000	Purchases Return	1,275
Salaries	6,800	Discount Received	800
Wages	10,000	Loan	5,000
Freight In	750	Sundry Creditors	20,000
Freight Out	1,200

Stock on 31st March, 2019 was valued at ₹ 35,000.
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as at the date.

Answer 1

Financial Statement of Chatter Sen
Trading Account for the year ended March 31, 2019
Dr.							Cr.
Particulars			Amount (₹)	Particulars		Amount (₹)
Opening Stock			40,000	Sales	1,27,000
Purchases		58,000		Less: Sales Return	(1,000)	1,26,000
Less: Purchases Return		(1,275)	56,725	Closing Stock		35,000
Wages			10,000
Freight Inwards			750
Gross Profit (Balancing Figure)			53,525
			1,61,000			1,61,000

Profit and Loss Account for the year ended March 31, 2019
Dr.					Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
Discount Allowed		350	Gross Profit	53,525
Bank Charges		75	Discount Received	800
Salaries		6,800
Freight Outwards		1,200
Rent, Rates and Taxes		2,000
Advertisement		2,000
Net Profit (Balancing Figure)		41,900
		54,325		54,325

Balance Sheet as on March 31, 2019
Liabilities		Amount (₹)	Assets	Amount (₹)
Capital	1,10,000		Fixed Assets
Add: Net Profit	41,900	1,51,900	Plant and Machinery	90,000
Liabilities			Current Assets
Sundry Creditors		20,000	Closing Stock	35,000
Loan		5,000	Sundry Debtors	45,000
			Cash at Bank	6,900
		1,76,900		1,76,900