The following are the balances extracted from the books of Shri Mohan Gupta as on 31.03.2025, who carries on business under the name and style of…

M/s Gupta & Associates Trading Account for the year ended 31st March, 2025 Particulars Details Amount ₹ Particulars Details Amount ₹ To Opening Stock 3,20,000 By Sales 15,00,000 To Purchases 12,00,000 Less: Sales Returns (24, 000) 14,76,000 Less: Purchase Returns (18, 000) 11,82,000 By Closing Stock 4,10,000 To Freight Inwards 62,000 To Gross Profit c/d 3,22,000 18,86,000 18,86,000 M/s Gupta & Associates Profit and Loss Account for the year ended 31st March, 2025 Particulars Details Amount ₹ Particulars Details Amount ₹ To Salaries 72,000 By Gross profit b/d 3,22,000 To Rent for Godown 55,000 Add: Outstanding 5,000 60,000 By Discount received 12,000 To Provision for Doubtful Debts (W.N.4) 16,200 To Rent and Taxes 24,000 To Discount Allowed 7,500 To Carriage outwards 8,500 To Printing and stationery 6,000 To Electricity charges 14,000 To Insurance premium (W.N.1) 4,800 To Depreciation (W.N.2) 80,000 To General expenses 11,000 To Bank Charges 3,800 To Interest on loan 4,400 Add: Outstanding (W.N.3) 100 4,500 To Motor car expenses (Repairs) 13,000 To Net Profit transferred to Capital A/c 8,700 3,34,000 3,34,000 Balance Sheet of M/s Gupta & Associates as at 31st March, 2025 Liabilities Details Amount ₹ Assets Details Amount ₹ Capital 14,11,400 Land & Building 5,00,000 Add: Net Profit 8,700 Less: Depreciation (25, 000) 4,75,000 Less: Drawings (20, 000) Motor Vehicles 1,00,000 Less: proprietor’s Insurance Premium (42, 000) 13,58,100 Less: Depreciation (20, 000) 80,000 Loan from Rajan 60,000 Office equipment 2,00,000 Add: Outstanding Interest 100 60,100 Less: Depreciation (30, 000) 1,70,000 Sundry Creditors 62,000 Furniture & Fixture 50,000 Outstanding rent 5,000 Less: Depreciation (5, 000) 45,000 Stock in Trade 4,10,000 Sundry Debtors 2,80,000 Less: Provision for doubtful debts (14, 000) 2,66,000 Cash at hand 22,000 Cash in bank 16,000 Prepaid insurance (W.N.1) 1,200 14,85,200 14,85,200 Working Notes: (1) Insurance premium Particulars ₹ Insurance premium as given in trial balance 48,000 Less: Personal premium (42, 000) 6,000 Less: Prepaid for3 months (₹ 6,000 ×₹ 3/15) (1, 200) Transfer to Profit and Loss A/c 4,800 (2) Depreciation Particulars ₹ Building @5% on 5,00,000 25,000 Motor Vehicles @20% on 1,00,000 20,000 Furniture & Fittings @10% on 50,000 5,000 Office Equipment @15% on 2,00,000 30,000 Total 80,000 (3) Interest on Loan Particulars ₹ Interest on Loan - 60,000 X 10% X 9/12 4,500 Less: interest as per Trial Balance (4, 400) Amount (Outstanding) 100 (4) Provision for bad debts A/c Particulars Amount (₹) Amount (₹) To bad debts A/c 12,200 By balance b/d 10,000 To balance c/d (5% of2,80,000) 14,000 By P&L A/c 16,200 26,200 26,200