Adjustments-

i. Closing Stock is ₹62,950

ii. 7,000 goods withdrawn by proprietor
iii. Rent outstanding ₹200
iv. Depreciation charged on Machinery @10% p.a.
v. Sales return of ₹1,400
vi. Accrued rent ₹50,000
Dr. Trading A/C Cr.
Particulars Amount (₹) Particulars Amount (₹)
Purchases A/c Sales A/c
Opening balance 64,000 Opening balance 63,400
Less: purchases return 2,000 Less: sales return 1,400 62,000
Less: drawings 7,000 55,000
Closing stock 64,350
Opening balance 62,950
Add: sales return 1,400
Gross profit c/d 71,350
1,26,350 1,26,350
Dr. Profit/Loss A/c Cr.
Depreciation on machinery 400 Gross profit b/d 71,350
Discount allowed A/c 200 Discount received A/c 14,650
Rent A/c Commission received A/c 2,000
Opening balance 1,800
Add: outstanding rent 200 2,000
Net profit c/d(Balance sheet) 1,35,400 Rent A/c 50,000
1,38,000 1,38,000
 Balance Sheet
Liability Amount (₹) Assets Amount (₹)
Capital A/c Machinery A/c
Opening balance 50,000 Opening balance 4,000
Less: drawings Less: depreciation 400 3,600
Cash: 6,200
Goods: 7,000
Add: Net profit 1,35,400 1,72,200
Outstanding expenses Debtor
Rent: 200 200 Opening balance 10,400 9,000
Less: sales return 1,400
Creditor 5,000 Closing stock
Opening balance 62,950
Add: sales return 1,400 64,350
Cash A/c 50,450
Accrued rent 50,000
1,77,400 1,77,400