Following is the Trial Balance extracted from the books of Raju Traders. You are required to prepare Trading A/c, Profit % Loss A/c for the year ending on 31st March 2019 and Balance Sheet as on that date after Considering the additional information given below.

Trial Balance as on 31st March, 2019

Debit Balance	Amount	Credit Balance	Amount
Raju`s Drawing	5,000	Capital	2,00,000
Opening Stock	30,000	Sales	1,64,000
wages	5,000	Returns outward	2,400
Purchases	60,000	Creditors	40,000
Trade Expenses	800	Discount	1,600
Royalties	1,600	Bills Payable	13,600
Salaries	20,000
Debtors	80,000
Plant & Machinery	56,000
Printing & Stationery	2,400
Bad Debts	900
Discount	1,200
Furniture	16,000
Advertisement	3,000
Carriage Outwards	600
Computers	1,20,000
Bills Receivable	16,000
Cash in Hand	1,100
Cash at Bank	2,000
	4,21,600		4,21,600

Adjustments: 

 
 

1. Closing Stock is valued at 40,000 at Cost Price and 44,000 as Market Price.  

2. Provide Depreciation on Plant & Machinery, Furniture, Computers@5%, 10%, 15% respectively. 

3. Salaries are paid for 10 months only. 

4. Further bad debts amounted to 400 and provide 10% R.D.D. on Sundry Debtors. 

5. Advertisement is paid for 2 years.     

 
Solution: 

In the Books of Raju Traders 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		30,000	By sales		1,64,000
To Purchases	60,000
(-) purchase return	(2,400)	57,600
To Wages		5,000
To Royalties		1,600	By Closing Stock		40,000
To Gross Profit c/d		1,09,800
		2,04,000			2,04,000

To Bad debts   (T)	900		By Gross Profit		1,09,800
(+) Bad debts   (A)	400
(+) R.D.D. New (A)	7,960	9,260
To Salaries	20,000	24,000	By Discount		1,600
(+) Outstanding salaries	4,00
To Printing & Stationery		2,400
To Discount		1,200
To Advertisement	3,000
(-) Prepaid Advertisement	(1,500)	1,500
To Carriage Outward		600
To Trade expense		800
To Depreciation on Plant& Machinery
Furniture	2,800
Computer	1,600
	18,000	22,400
To Net Profit		49,240
		1,11,400			1,11,400

Balance Sheet as on 31st March, 2019

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital	2,00,000		Plant & machinery	56,000
(-) Drawings	(5,000)		(-) Depreciation	(2,800)	53,200
	1,95,000
(+) Net Profit	49,240	2,44,240
			Furniture	16,000
			(-) Depreciation	(1,600)	14,400
			Computers	1,20,000
			(-) Depreciation	(18,000)	1,02,0000
			Bills Receivable		16,000
Creditors		40,000	Debtors	80,000
			(-) Bad debts (A)	400
				79,600
			(-) R.D.D. New	7,960	71,640
Bills Payable		13,600
Outstanding Salaries		4,000	Cash in Hand		1,100
			Cash at Bank		2,000
			Closing stock		40,000
			Prepaid Advertisement		500
		3,01,840			3,01,840