4.

Final Accounts
4.3 From the following trial balance of Mr. Murugan Prepare final accounts for the year ended
on 31-03-2020.
Dr. Rs. Cr. Rs.
Drawings 4,000 Capital 20,000
Cash at Bank 1,700 Sales 16,000
Cash in hand 6,500 Sundry creditors 4,500
Wages 1,000
Purchases 2,000
Stock on 01-04-2019 6,000
Buildings 10,000
Sundry debtors 4,400
Bills receivables 2,900
Rent 450
Commission 250
General expenses 800
Furniture 500
40,500 40,500
Adjustments: 1 Stock on 31-03-2020 was Rs.4,000
2. Interest on capital @6% is to be provided
3. Interest on drawings @5% to be provided
4. Wages yet to be paid Rs.100
5. Rent prepaid Rs.50

Trading account of Mr. Murugan for the year ended 31-03-2020

Dr. Rs. Cr. Rs.
To Opening Stock 6,000 By Sales 16,000
To Purchases 2,000 By Closing Stock 4,000
To Wages 1,000
Add: Yet to be paid 100 1,100
To Gross Profit 10,900
20,000 20,000

Profit & Loss account of Mr. Murugan for the year ended 31-03-2020
Dr. Rs. Cr. Rs.
To Rent 450 By Gross Profit 10,900
Less: Prepaid 50 400
To Commission 250 By interest on Drawings
[4,000 x 5%] 200
To General expenses 800
To Interest on capital
[20,000 x 6%] 1,200
To Net Profit 8,450
11,100 11,100
Balance sheet of Mr. Murugan as on 31-03-2020
Liabilities Rs. Assets Rs.
Capital 20,000 Bank 1,700
Add: Net Profit 8,450
28,450
Add: Interest on Capital 1,200
29,650
Less: Drawings 4,000
25,650
Less: Interest on Drawings 200 25,450
Sundry Creditors 4,500 Cash 6,500
Yet to be paid wages 100 Buildings 10,000
S. Debtors 4,400
Bills receivables 2,900
Furniture 500
Closing Stock 4,000
Prepaid Rent 50
30,050 30,050