Harshit Traders are carrying on the retail business of electrical goods. They keep their books of account under single entry system. The Balance…

In the books of Harshit Traders Trading and Profit and Loss Account for the year ended 31 st March, 2024 ₹ Amount (₹) Amount (₹) ₹ Amount (₹) Amount (₹) To Opening Stock 1,70,800 By Sales To Purchases Cash 10,22,400 Cash 9,48,400 Credit (W.N.1) 86,89,600 97,12,000 Credit (W.N.2) 76,10,400 85,58,800 By Closing stock 2,31,600 To Gross profit c/d (bal fig) (12.5% of97,12,000) 12,14,000 99,43,600 99,43,600 To Rent & taxes 2,51,600 By Gross profit b/d 12,14,000 To Salaries (W.N.3) 4,18,600 By Discount received 35,000 To Sundry expenses 1,38,400 By Interest on investment 3,600 To Discount allowed 62,500 To Depreciation (10% on (₹ 1,10,000 &₹ 73,500)) 11,000 7,350 18,350 To Net Profit (b.f.) 3,63,150 12,52,600 12,52,600 Balance Sheet as at 31 st March, 2024 Liabilities Amount Assets Amount Capital Motor vehicle 1,10,000 Opening balance 6,05,000 Less: Depreciation (11, 000) Less: Drawings (₹ 2,40,000) 3,65,000 99,000 Add: Net profit for the years 3,63,150 7,28,150 Furniture & Fittings 73,500 Trade creditors 1,05,600 Less: Depreciation (7, 350) Outstanding salary 14,800 66,150 Closing Stock 2,31,600 Trade receivable 2,20,500 6% Investment 60,000 Cash in hand & at bank 1,71,300 8,48,550 8,48,550 Working Notes: 1. Trade Debtors Account ₹ ₹ To Balance b/d 1,45,400 By Cash/Bank 85,52,000 To Credit sales (Bal. fig.) 86,89,600 By Discount allowed 62,500 By Balance c/d 2,20,500 88,35,000 88,35,000 2. Trade Creditors Account ₹ ₹ To Cash/Bank 75,45,000 By Balance b/d 75,200 To Discount received 35,000 By Purchases credit 76,10,400 To Balance c/d 1,05,600 76,85,600 76,85,600 3. Computation of salary to be charged to Profit & Loss A/c ₹ Salary expenses paid (as per cash book) 4,12,800 Less: Outstanding expenses as on 31.3.2023 (9, 000) 4,03,800 Add: Outstanding expenses as on 31.3.2024 14,800 4,18,600