Question 17: From the following Trial Balance and additional information of Bharat, a
proprietor, prepare Trading and Profit & Loss Account for the year ending
31st March, 2024 and the Balance Sheet as at that date:
Heads of Accounts
|
LF.
|
Dr. (`)
|
Cr. (`)
|
Opening Stock
|
|
90,000
|
|
Purchases
|
|
4,50,000
|
|
Sales
|
|
|
6,00,000
|
Wages
|
|
60,000
|
|
Wages Outstanding (at the end)
|
|
|
20,000
|
Carriage Inwards
|
|
15,000
|
|
Salaries
|
|
51,000
|
|
Insurance
|
|
3,000
|
|
General Expenses
|
|
8,100
|
|
Prepaid General Expenses
|
|
20,000
|
|
Machinery
|
|
75,000
|
|
Debtors
|
|
45,000
|
|
Creditors
|
|
|
62,100
|
Cash in Hand
|
|
15,000
|
|
Cash at Bank
|
|
15,500
|
|
Capital
|
|
|
1,80,000
|
Drawings
|
|
15,000
|
|
Input CGST
|
|
2,500
|
|
Input SGST
|
|
2,500
|
|
Input IGST
|
|
2,500
|
|
Output CGST
|
|
|
3,500
|
Output SGST
|
|
|
3,500
|
Output IGST
|
|
|
3,000
|
Total
|
|
8,72,100
|
8,72,100
|
Additional
Information:
(i) Salaries outstanding for the month of March, 2024 is ` 7,500.
(ii) Prepaid
Insurance is ` 900.
(iii)
Depreciate Machinery @ 15% p.a.
(vi) Value of
Closing Stock is ` 1,11,000.
(v) Bharat took
goods of ` 2,000 for personal use which was
not recorded (Ignore GST)
Answer:
|
Trading Account for the year ended March
31, 2024 |
|
|||||
|
Dr. |
|
|
|
Cr. |
|
|
|
Particulars |
|
(`) |
Particulars |
(`) |
|
|
Opening Stock
|
|
90,000
|
Sales
|
6,00,000
|
|
|
Purchases
|
4,50,000
|
Closing
stock |
1,11,000 |
|
||
Drawing
|
2,000
|
4,48,000
|
|
|||
Wages
|
|
60,000
|
|
|||
Carriage Inwards
|
|
15,000
|
|
|||
Gross Profit
|
|
98,000
|
|
|||
(Transferred to P&L A/c)
|
|
|||||
|
|
|
7,11,000 |
7,11,000 |
|
||
|
|
|
|
|
|
||
|
Profit & Loss Account for the year ended March
31, 2024 |
|||||||
|
Dr. |
|
|
|
|
Cr. |
||
|
Particulars |
|
Amount (`) |
Particulars |
Amount (`) |
|||
Salaries
|
51,000
|
Gross Profit
|
98,000
|
||||
Less: O/s Salaries
|
7,500
|
50,500
|
(Transferred from Trading A/c)
|
||||
General Expenses
|
|
8,100
|
|
||||
Depreciation on Machinery
|
|
11,250
|
|
||||
Insurance Expenses
|
3,000
|
|
|||||
Less: Prepaid
|
9,00
|
2,100
|
|
||||
|
Net profit |
|
1,8050 |
|
||||
|
(Transferred to Capital A/c) |
|
||||||
|
|
98,000 |
|
98,000 |
||||
|
|
|
|
|||||
|
Balance Sheet as on March 31, 2024 |
|
||||||||
|
Liabilities |
Amount (`) |
Assets |
Amount (`) |
|
|||||
Sundry Creditors
|
62,100
|
Cash in hand
|
15,000
|
|
|||||
Wages Outstanding
|
20,000
|
Cash at Bank
|
15,500 |
|
|||||
Salary
Outstanding
|
7,500
|
Machinery
|
75,000
|
|
|||||
Capital
|
1,80,000
|
Less: Depreciation
|
(11,250)
|
63,750
|
|
||||
|
Drawings
of goods |
(2.000) |
Sundry Debtors
|
45,000 |
|
|||||
Drawings
|
(15,000)
|
Prepaid General exp.
|
20,000
|
|
|
||||
|
1,63,000 |
Prepaid insurance
|
900
|
|
||||||
|
Add: Net Profit |
1,8050 |
1,81,050 |
Closing Stock
|
1,11,000
|
|
||||
Output SGST
|
1,000 |
Input CGST
|
500
|
|
|
||||
|
|
2,71,650 |
2,71,650 |
|
||||||
|
|
|
|
|
|
|
||||
Question 18:
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2024 and Balance Sheet as at that date from the following Trial Balance:
|
Particulars |
Dr. (`) |
Cr. (`) |
|
|
Capital |
|
… |
1,00,000 |
|
Cash |
|
15,000 |
… |
|
Bank
Loan |
|
… |
20,000 |
|
Purchases |
|
1,20,000 |
… |
|
Sales |
|
… |
1,50,000 |
|
Sales
Return |
|
10,000 |
… |
|
Purchases
Return |
|
… |
20,000 |
|
Establishment
Expenses |
|
22,000 |
… |
|
Taxes
and Insurance |
|
5,000 |
... |
|
Bad
Debts |
|
5,000 |
… |
|
Provision
for Doubtful Debts |
|
… |
7,000 |
|
Debtors |
|
82,000 |
… |
|
Creditors |
|
… |
45,000 |
|
Commission |
|
… |
5,000 |
|
Deposits |
|
40,000 |
… |
|
Opening
Stock |
|
30,000 |
… |
|
Drawings |
|
14,000 |
… |
|
Furniture |
|
6,000 |
… |
|
Input
CGST |
|
10,000 |
... |
|
Input
SGST |
|
10,000 |
… |
|
Output
CGST |
|
… |
8,000 |
|
Output
SGST |
|
… |
8,000 |
|
Output
IGST |
|
… |
6,000 |
|
Total |
|
3,69,000 |
3,69,000 |
|
|
|
|
|
Adjustments:
(i) Taxes ` 3,000 are outstanding but Insurance ` 500 is prepaid.
(ii) Commission ` 1,000 received in advance for the next year.
(iii) Interest ` 2,100 is to be received on
Deposits and Interest on Bank Loan ` 3,000 is to be paid.
(iv) Provision for Doubtful Debts to be maintained at ` 10,000.
(v) Depreciate Furniture by 10%.
(vi) Stock on 31st March, 2024 is ` 45,000 And its Net Realisable Value (Market Value) was `
50,000.
(vii) A fire occurred on 1st April, 2024 destroying goods costing ` 10,000. The stock was fully
insured (Ignore GST).
Answer:
|
Financial Statements Trading Account for the year ended March 31, 2024 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Particulars |
Amount (`) |
Particulars |
Amount (`) |
||
|
Opening Stock |
30,000 |
Sales |
1,50,000 |
|
|
|
Purchases |
1,20,000 |
|
Less: Return |
(10,000) |
1,40,000 |
|
Less: Return |
(20,000) |
1,00,000 |
Closing Stock |
45,000 |
|
|
Gross Profit (Balancing Figure) |
55,000 |
|
|
||
|
|
1,85,000 |
|
1,85,000 |
||
|
|
|
|
|
||
|
Profit and Loss Account for the year ended March 31, 2024 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Particulars |
Amount (`) |
Particulars |
Amount (`) |
||
|
Taxes and Insurance |
5,000 |
|
Gross Profit |
55,000 |
|
|
Add: Outstanding Taxes |
3,000 |
|
Commission |
5,000 |
|
|
Less: Prepaid Insurance |
(500) |
7,500 |
Less: Advance Commission |
(1,000) |
4,000 |
|
|
|
Interest Accrued on Investment |
2,100 |
||
|
Bad Debts |
5,000 |
|
|
|
|
|
Add: Bad Debts Reserve |
10,000 |
|
|
|
|
|
Less: Existing Reserve |
(10,000) |
5,000 |
|
|
|
|
Depreciation on Furniture |
600 |
|
|
||
|
Outstanding Interest on Loan |
3,000 |
|
|
||
|
Establishment Charges |
25,000 |
|
|
||
|
Net Profit (Balancing Figure) |
20,000 |
|
|
||
|
|
61,100 |
|
61,100 |
||
|
|
|
|
|
||
|
Balance Sheet as on March 31, 2024 |
|||||
|
Liabilities |
Amount (`) |
Assets |
Amount (`) |
||
|
Capital |
1,00,000 |
|
Investments (Deposits) |
40,000 |
|
|
Less: Drawings |
(14,000) |
|
Add: Accrued Interest |
2,100 |
42,100 |
|
Add: Net Profit |
20,000 |
1,06,000 |
Furniture |
6,000 |
|
|
Bank Loan |
20,000 |
|
Less: 10% Depreciation |
(600) |
5,400 |
|
Add: Interest Outstanding |
3,000 |
23,000 |
Sundry Debtors |
82,000 |
|
|
Sundry Creditors |
45,000 |
Less: Provision for Doubtful Debts |
(10,000) |
72,000 |
|
|
Advance Commission |
1,000 |
Prepaid Insurance |
500 |
||
|
Taxes Outstanding |
3,000 |
Closing Stock |
45,000 |
||
|
GST Payable (WN 2) |
2,000 |
Cash in Hand |
15,000 |
||
|
|
|
||||
|
|
1,80,000 |
|
1,80,000 |
||
|
|
|
|
|
||
Working Notes:
(1) Loss of stock by fire has ocurred on 1st April, 2024.
Hence, it will not affect the Balance Sheet dated 31st March, 2024.
(2)GST Set off
First:CGST
Payable/(Receivable)=Output CGST-Input CGST=8,000-10,000=(2,000)
Second:SGST
Payable/(Receivable)=Output SGST-Input SGST=8,000-10,000=(2,000)
Third:IGST
Payable/(Receivable)=Output IGST-Input CGST-Input SGST=6,000-2,000-2,000=2,000
Final:GST Payable=Output
IGST=2,000
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Ts Grewal Solution 2024-2025
Class 11th