Solution in 1 Table particular 2 amount particiular 2 amount Profit and loss particular 2 amount particiular 2 amount

The Trading Account calculates the gross profit or gross loss for the year.

$$\begin{array}{|l|r|l|r|} \hline \textbf{Particulars} & \textbf{Amount ₹} & \textbf{Particulars} & \textbf{Amount ₹} \\ \hline \text{To Opening Stock} & 25,000 & \text{By Sales} & 3,25,000 \\ \text{To Purchases} & 2,08,500 & \text{Less: Sales Return} & 1,000 \\ \text{Less: Purchase Return} & 1,000 & & \\ \text{Net Purchases} & 2,07,500 & \text{Net Sales} & 3,24,000 \\ \text{To Carriage Inward} & 3,000 & \text{By Closing Stock} & 32,000 \\ \text{To Gross Profit c/d (transferred to P\&L A/c)} & 1,20,500 & & \\ \hline \textbf{Total} & \textbf{3,56,000} & \textbf{Total} & \textbf{3,56,000} \\ \hline \end{array}$$

The Profit and Loss Account calculates the net profit or net loss for the year.

$$\begin{array}{|l|r|l|r|} \hline \textbf{Particulars} & \textbf{Amount ₹} & \textbf{Particulars} & \textbf{Amount ₹} \\ \hline \text{To Carriage Outwards} & 4,500 & \text{By Gross Profit b/d} & 1,20,500 \\ \text{To General Expenses} & 1,800 & & \\ \text{To Export Duty} & 900 & & \\ \text{To Advertisement (₹4,800 for 3 years from 1/10/2018, so ₹1,600 per year for 6 months)} & 800 & & \\ \text{To Printing \& Stationary} & 1,200 & & \\ \text{Add: Outstanding} & 500 & 1,700 & \\ \text{To Provision for Doubtful Debts} & 2,000 & & \\ \text{To Reserve for Discount on Debtors} & & & \\ \text{(3\% on ₹80,500 - ₹2,000)} & 2,355 & & \\ \text{To Depreciation on Leasehold Premises} & & & \\ \text{(₹1,10,000 - ₹1,00,000)} & 10,000 & & \\ \text{To Net Profit (transferred to Capital Accounts)} & 96,445 & & \\ \hline \textbf{Total} & \textbf{1,20,500} & \textbf{Total} & \textbf{1,20,500} \\ \hline \end{array}$$

The Balance Sheet shows the financial position of the firm as of March 31, 2019.

$$\begin{array}{|l|r|l|r|} \hline \textbf{Liabilities} & \textbf{Amount ₹} & \textbf{Assets} & \textbf{Amount ₹} \\ \hline \textbf{Capital Accounts:} & & \text{Leasehold Premises} & 1,10,000 \\ \text{Raj} & 75,000 & \text{Less: Depreciation} & 10,000 \\ \text{Add: Share of Net Profit} & 48,222.50 & \text{Net} & 1,00,000 \\ \text{Less: Drawings} & 3,500 & 1,19,722.50 & \text{Motor Vehicle} \\ \text{Simran} & 75,000 & \text{Furniture} & 55,000 \\ \text{Add: Share of Net Profit} & 48,222.50 & \text{Debtors} & 8,300 \\ \text{Less: Drawings} & 2,000 & 1,21,222.50 & \text{Less: Provision for Doubtful Debts} \\ \text{Total Capital} & 2,40,945 & & 2,000 \\ \text{Bank Overdraft} & 5,000 & \text{Less: Reserve for Discount on Debtors} & 2,355 \\ \text{Bills Payable} & 12,500 & \text{Net Debtors} & 76,145 \\ \text{Creditors} & 68,000 & \text{Bills Receivable} & 10,000 \\ \text{Outstanding Rent} & 2,000 & \text{Cash at Bank} & 45,000 \\ \text{Unpaid Wages} & 1,500 & \text{Closing Stock} & 32,000 \\ \text{Outstanding Printing \& Stationary} & 500 & \text{Prepaid Advertisement} & 4,000 \\ \hline \textbf{Total} & \textbf{3,30,445} & \textbf{Total} & \textbf{3,30,445} \\ \hline \end{array}$$

Final Answer:

• Gross Profit from Trading Account: ₹1,20,500
• Net Profit from Profit & Loss Account: ₹96,445
• Balance Sheet Total: ₹3,30,445