1. Blue Ridge Enterprises presents the following balances as of July 31, 2024. Calculate the net income.

• Capital Account: ₹370,000 (Credit)
• Drawings: ₹30,000 (Debit)
• Sales: ₹620,000 (Credit)
• Purchases: ₹310,000 (Debit)
• Wages: ₹75,000 (Debit)
• Utilities: ₹22,000 (Debit)
• Rent: ₹40,000 (Debit)
• Miscellaneous Expenses: ₹11,000 (Debit)
• Profit and Loss: ₹16,000 (Credit)

Requirements:

1. Determine total debits and credits.
2. Calculate the net income.
3. Analyze the impact of purchases on net income.

Discuss strategies to manage drawings effectively.