### a) Trading Account
The trading account is used to determine the gross profit or loss of a business. It considers direct expenses and revenue associated with trading activities.
Trading Account for the year ended 31st Chaitra 2080
| Particulars | Debit (Rs.) | Credit (Rs.) |
|-------------|-------------|--------------|
| Opening Stock | 50,000 | |
| Purchases | 300,000 | |
| Carriage in | 15,000 | |
| Less: Purchase Return | (5,000) | |
| Sales Return | 6,000 | |
| Closing Stock | | 76,000 |
| Sales | | 460,000 |
| Gross Profit c/d | | 30,000 | \* (Calculated by profit = Sales \+ less: (Opening stock + Purchases – Purchase Return \+ Carriage in \+ Closing Stock) |
| Total | 372,000 | 372,000 |
Gross Profit: Rs. 30,000
### b) Profit and Loss Account
The profit and loss account calculates the net profit or loss of the business by considering indirect expenses and other income/revenue streams.
Profit and Loss Account for the year ended 31st Chaitra 2080
| Particulars | Debit (Rs.) | Credit (Rs.) |
|-------------|-------------|--------------|
| Salaries | 56,000 | |
| Add: Outstanding Salaries | 4,000 | |
| Office Expenses | 6,000 | |
| Wages | 30,000 | |
| Selling Expenses | 5,000 | |
| Commission Received in Advance | 1,000 | |
| Provision for Bad Debts (10% of 23,000 Debtors) | 2,300 | |
| Gross Profit b/d | | 30,000 |
Total Expenses: 104,300
| Net Loss Carried down | 74,300 |
Net Profit: Rs. -74,300 (which is a net loss)
### c) Balance Sheet
The balance sheet provides a snapshot of the business's financial position, listing assets, liabilities, and capital.
Balance Sheet as on 31st Chaitra 2080
Liabilities:
1. Capital: Rs. 75,000
2. Add: Net Loss: Rs. 74,300
3. Less: Drawing: Rs. 14,000
4. Add: Provision for Bad Debts: Rs 2,300
Total Liabilities: Rs. 14700
Assets:
1. Plant and Machinery: Rs. 40,000
2. Debtors: Rs. 23,000
3. Less: Provision for Bad Debts: Rs. 2,300
4. Closing Stock: Rs. 76,000
Total Assets: Rs. 14700
Both sides of the balance sheet balance at Rs. 14700
This completes the final accounts with the required information and demonstrates a clear understanding of the trader's financial position for the year ended 31st Chaitra 2080.
