4.

Final Accounts
4.1 The following balances were extracted from the books of John & Co. on 31-03-2021.
Prepare final accounts for the year ended on 31-03-2021.
Particulars Rs. Particulars Rs.
Capital 50,000 Drawings 4,000
General expenses 5,000 Buildings 22,000
Machinery 18,680 Stock on 01-04-2020 32,400
Power 4,480 Tax & Insurance 2,630
Wages 14,400 Debtors 12,560
Bank overdraft 6,600 Charity 210
Creditors 5,000 Bad debts 1,100
Loan 15,760 Sales 1,30,720
Purchases 94,000 Motor car 4,000
Reserve fund [Cr.] 1,800 Commission [Cr.] 2,640
Car expenses 3,600 Bills payable 6,700
Cash 160
Adjustments: Stock on 31-03-2021 was Rs.47,000.

Trial balance of John & Co. as on 31-03-2021

Dr. Rs. Cr. Rs.
General expenses 5,000 Capital 50,000
Machinery 18,680 Bank overdraft 6,600
Power 4,480 Creditors 5,000
Wages 14,400 Loan 15,760
Purchases 94,000 Reserve fund [Cr.] 1,800
Car expenses 3,600 Commission [Cr.] 2,640
Cash 160 Bills payable 6,700
Drawings 4,000 Sales 1,30,720
Buildings 22,000
Stock on 01-04-2019 32,400
Tax & Insurance 2,630
Debtors 12,560
Charity 210
Bad debts 1,100
Motor car 4,000
2,19,220 2,19,220
 Trading account of John & Co. for the year ended 31-03-2021
Dr. Rs. Cr. Rs.
To Opening Stock 32,400 By Sales 1,30,720
To Purchases 94,000 By Closing Stock 47,000
To Power 4,480
To Wages 14,400
To Gross Profit 32,440
1,77,720 1,77,720

Profit & Loss account of John & Co. for the year ended 31-03-2021
Dr. Rs. Cr. Rs.
To General expenses 5,000 By Gross Profit 32,440
To Car expenses 3,600 By Commission 2,640
To Tax & Insurance 2,630
To Charity 210
To Bad debts 1,100
To Net Profit 22,540
35,080 35,080

Balance sheet of John & Co. as on 31-03-2021

Liabilities Rs. Assets Rs.
Capital 50,000 Machinery 18,680
Add: Net Profit 22,540 Cash 160
72,540
Less: Drawings 4,000 68,540 Buildings 22,000
Bank Overdraft 6,600 Debtors 12,560
Creditors 5,000 Motor Car 4,000
Loan 15,760 Closing Stock 47,000
Reserve Fund 1,800
Bills Payable 6,700
1,04,400 1,04,400