1. On March 31, 2024, the financial records of Yellow Stone Ltd. showed the following: The capital account had a credit balance of ₹500,000, drawings amounted to ₹60,000, sales were recorded at ₹750,000, purchases were ₹400,000, wages totaled ₹90,000, utilities expenses were ₹25,000, rent expense was ₹50,000, miscellaneous expenses stood at ₹20,000, and the profit and loss account had a credit of ₹25,000. Based on these figures, determine the net income for Yellow Stone Ltd.

Requirements:

1. Identify total debits and credits.
2. Calculate net income.
3. Discuss the role of miscellaneous expenses in the overall financial performance.

Evaluate the adequacy of the capital account balance.