Following are the closing ledger balances of Deepak & Co. Prepare Trading Account and Profit & Loss Account for the year ending 31st March 2019 and Balance Sheet as on that date

Ledger Balances of Mr. Deepak and Co. as on 31st March, 2019

Particulars	Amount	Particulars	Amount
Bank	30,000	Capital	1,20,000
Bills Payable	7,500	Insurance Premium	18,000
		(1.1.2019 to 31.12.2019)
Furniture	19,500	Salaries	30,000
Commission Received	3,000	Bank Loan	30,000
Stock (1.4.2019)	27,000	Sundry expenses	7,500
Building	37,500	Interest paid	1,500
Wages	7,500	Machinery	25,500
Creditors	37,500	Sales	96,000
Bad debts	4,500	Purchases	42,000
R.D.D. (old)	3,000	Debtors	31,500
Sales Return	1,500	Purchases return	3,00
		Cash in Hand	16,500

Adjustments: 

1. Closing Stock was valued at 60,000 

2. An Amount of 3,000 is still to be received on account of commission  

3. Provision of discount on debtors and Provision for discount on creditors are to be created 2% and 3% respectively. 

4. Amount of Furniture is to be reduce by 4,500 and Building by 10% 

5. Outstanding expenses Salaries 4,500 and Wages 1,500 
 
Solution:

In the Books of Mr. Deepak Final Account 

Trading A/c And Profit & Loss A/c for the year ended 31st march, 2019

Particulars	Amount	Amount	Particulars	Amount	Amount
To Opening Stock		27,000	By Sales	96,000
			(-) Sales return	(1,500)	94,500
To Purchase	42,000
(Purchase return)	(3,000)	39,000
To Wages	7,500
(+) Outstanding Wages	1,500	9,000
			By Closing Stock		60,000
To Gross Profit c/d		79,500
		1,54,500			1,54,500

To Bad Debt    (T)	4,500	1,500	By Gross Profit b/d		79,500
(-) R.D.D. old    (T)	(3,000)
To Insurance Premium	18,000		By Bad Debt      (T)	4,500
(-) Prepaid Insurance			(+) R.D.D.C New(A)	1,125	5,625
	(13,500)	4,500
To Salaries	30,000		By Commission Received	3,000
(+) Outstanding Salaries	4,500	34,500	(+) Outstanding Commission
				3,000	6,000
To Bad Debt     (T)	4,500
(+) R.D.D.D      (A)	630	5,130
To Sundry Expenses		7,500
To Interest paid		1,500
To Depreciation on
	4,500
	3,750	8,250
To Net Profit		28,245
		91,125			91,125

Balance Sheet as on 31st March, 2019

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital	1,20,00028,245		Furniture	19,500
(+) Net Profit		1,48,245	(-) Depreciation	(4,500)	15,000
			Bank		30,000
			Building	37,500
				3,750	33,750
			Machinery		25,500
			Cash in Hand		16,500
Creditors	37,500		Debtors	31,500
(-) R.D.D.C New	(1,125)	36,375	(-) R.D.D. New	(630)	30,870
Bills Payable		7,500	Prepaid Insurance		13,500
Bank loan		30,000	Closing Stock		60,000
Outstanding Wages		1,500	Outstanding Commission		3,000
Outstanding salaries		4,500
		2,28,120			2,28,120