1. The financial records of Crimson Peak Ltd. for the period ending October 31, 2024, show the following balances:

Capital Account: ₹450,000 (Credit)
 Drawings: ₹45,000 (Debit)
 Sales: ₹700,000 (Credit)
 Purchases: ₹350,000 (Debit)
 Wages: ₹85,000 (Debit)
 Utilities: ₹20,000 (Debit)
 Rent: ₹42,000 (Debit)
 Miscellaneous Expenses: ₹12,000 (Debit)
 Profit and Loss: ₹20,000 (Credit)

Requirements:

1. Calculate the total debits and credits.
2. Compute the net income.
3. Evaluate the effect of miscellaneous expenses on overall financial performance.

Suggest measures to improve net income.