Question

7 Mr. Patil, the owner of Jai Hind Engineers, submits the following trial balance to you for the year ended 31st March 2019: 4 • Purchase and Sales Opening Stock Drawings Motor Cycle Cycles and Carts Delivery Bad Debts Debtors and Creditors Vehicle Expenses Capital Bills Receivable and Payable Bank and Cash Balances Petty Cash Insurance Premium Salaries Petty Expenses Wages Rent Godown Rent General Expenditure Bank Loan Carriage Inwards Worker's Equipment Returns Prepare the final accounts for him. Closing stock is valued at 5,400. [Ans. Gross profit *54,200; Net profit 47,500; Balance Sheet total 57,100]. Dr. 16,180 6,500 4,000 12,500 2,500 200 4,000 1,100 800 1,800 100 500 900 300 1,500 3,000 1,800 700 500 30,000 200 89,080 Cr. (₹) 75,200 2,000 8,600 1,000 2,000 280 89,080​

Answer 1

Step-by-step explanation:

To prepare the final accounts for Mr. Patil's business, we'll start with the Trading and Profit and Loss Account and then move on to the Balance Sheet.

Trading and Profit and Loss Account

Opening Stock: ₹16,180

Purchases: ₹75,200

Carriage Inwards: ₹700

Less: Closing Stock: ₹5,400

(₹16,180 + ₹75,200 + ₹700) - ₹5,400 = ₹87,680

Gross Profit: ₹87,680

Profit and Loss Account

Gross Profit: ₹87,680

Less: Expenses

Drawings: ₹6,500

Motor Cycle and Cycles and Carts: ₹4,000

Delivery: ₹12,500

Bad Debts: ₹200

Vehicle Expenses: ₹4,000

Bills Receivable and Payable: ₹1,100

Petty Cash: ₹800

Insurance Premium: ₹1,800

Salaries: ₹100

Petty Expenses: ₹500

Wages: ₹900

Rent: ₹300

Godown Rent: ₹1,500

General Expenditure: ₹3,000

Carriage Inwards: ₹700

Worker's Equipment: ₹500

Returns: ₹200

Net Profit: ₹47,500

Balance Sheet

Liabilities:

Capital: ₹12,500

Bills Payable: ₹2,000

Bank Loan: ₹30,000

Total Liabilities: ₹44,500

Assets:

Closing Stock: ₹5,400

Debtors: ₹2,500

Bills Receivable: ₹800

Bank and Cash Balances: ₹1,800

Total Assets: ₹10,500

Final Summary

Gross Profit: ₹87,680

Net Profit: ₹47,500

Balance Sheet Total: ₹55,000 (Total Liabilities + Total Assets)

This breakdown provides a snapshot of the final accounts for Mr. Patil's business based on the provided trial balance.