Following is the Trial Balance of Shri Bansi Lal as on 31st March, 2018. You are required to prepare Final Accounts:
Particulars
Dr.
(₹)
Cr.
(₹)
Sundry Creditors
................................................................................
…
63,000
Sundry Debtors
................................................................................
1,45,000
…
Capital A/c
................................................................................
…
7,10,000
Drawings
................................................................................
52,450
…
Insurance
................................................................................
6,000
…
General Expenses
................................................................................
30,000
…
Salaries
................................................................................
1,50,000
…
Patents
................................................................................
75,000
…
Machinery
................................................................................
2,00,000
…
Freehold Land
................................................................................
1,00,000
…
Building
................................................................................
3,00,000
…
Stock on 1st April, 2017
................................................................................
57,600
…
Carriage on Purchases
................................................................................
20,400
…
Carriage on Sales
................................................................................
32,000
…
Fuel and Power
................................................................................
47,300
…
Wages
................................................................................
1,04,800
…
Returns Outward
................................................................................
…
5,000
Returns Inward
................................................................................
6,800
…
Sales
................................................................................
…
9,87,800
Purchases
................................................................................
4,06,750
…
Cash at Bank
................................................................................
30,300
…
Cash in Hand
................................................................................
5,400
…
Input CGST
................................................................................
20,000
…
Input SGST
................................................................................
20,000
…
Output CGST
................................................................................
…
22,000
Output SGST
................................................................................
…
22,000
Total
18,09,800
18,09,800
Following adjustments are to be made:
(a) Stock on 31st March, 2018 was valued at ₹ 68,000.
(b) Provision for Doubtful Debts is to be created to the extent of 5% on Debtors.
(c) Depreciate Machinery by 10% and Patents by 20%.
(d) Wages include a sum of ₹ 20,000 spent on the erection of a cycle shed for employees and customers.
(e) Salaries for the month of March, 2018 amounted to ₹ 15,000 were unpaid.
(f) Insurance includes a premium of ₹ 1,700 on a policy expiring on 30th September, 2018.
|
Particulars
|
Dr.
(₹)
|
Cr.
(₹)
|
|
| Sundry Creditors | ................................................................................ |
…
|
63,000
|
| Sundry Debtors | ................................................................................ |
1,45,000
|
…
|
| Capital A/c | ................................................................................ |
…
|
7,10,000
|
| Drawings | ................................................................................ |
52,450
|
…
|
| Insurance | ................................................................................ |
6,000
|
…
|
| General Expenses | ................................................................................ |
30,000
|
…
|
| Salaries | ................................................................................ |
1,50,000
|
…
|
| Patents | ................................................................................ |
75,000
|
…
|
| Machinery | ................................................................................ |
2,00,000
|
…
|
| Freehold Land | ................................................................................ |
1,00,000
|
…
|
| Building | ................................................................................ |
3,00,000
|
…
|
| Stock on 1st April, 2017 | ................................................................................ |
57,600
|
…
|
| Carriage on Purchases | ................................................................................ |
20,400
|
…
|
| Carriage on Sales | ................................................................................ |
32,000
|
…
|
| Fuel and Power | ................................................................................ |
47,300
|
…
|
| Wages | ................................................................................ | 1,04,800 | … |
| Returns Outward | ................................................................................ |
…
|
5,000
|
| Returns Inward | ................................................................................ |
6,800
|
… |
| Sales | ................................................................................ |
…
|
9,87,800 |
| Purchases | ................................................................................ |
4,06,750
|
… |
| Cash at Bank | ................................................................................ |
30,300
|
… |
| Cash in Hand | ................................................................................ |
5,400
|
… |
| Input CGST | ................................................................................ |
20,000
|
…
|
| Input SGST | ................................................................................ |
20,000
|
…
|
| Output CGST | ................................................................................ | … | 22,000 |
| Output SGST | ................................................................................ |
…
|
22,000
|
| Total |
18,09,800
|
18,09,800
|
|
Following adjustments are to be made:
(a) Stock on 31st March, 2018 was valued at ₹ 68,000.
(b) Provision for Doubtful Debts is to be created to the extent of 5% on Debtors.
(c) Depreciate Machinery by 10% and Patents by 20%.
(d) Wages include a sum of ₹ 20,000 spent on the erection of a cycle shed for employees and customers.
(e) Salaries for the month of March, 2018 amounted to ₹ 15,000 were unpaid.
(f) Insurance includes a premium of ₹ 1,700 on a policy expiring on 30th September, 2018.
Financial Statements of Shri Bansi Lal
Trading Account
for the year ended March 31, 2018
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Opening Stock
57,600
Sales
9,87,800
Purchases
4,06,750
Less: Return Inwards
(6,800)
9,81,000
Less: Return Outwards
(5,000)
4,01,750
Closing Stock
68,000
Carriage on Purchases
20,400
Fuel and Power
47,300
Wages
1,04,800
Less: Building
(20,000)
84,800
Gross Profit (Balancing Figure)
4,37,150
10,49,000
10,49,000
Profit and Loss Account
for the year ended March 31, 2018
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Carriage on Sales
32,000
Gross Profit
4,37,150
Depreciation on Machinery
20,000
Amortisation of Patents
15,000
Insurance
6,000
Less: Prepaid Insurance
(1,700 × 6/12)
(850)
5,150
General Expenses
30,000
Salaries
1,50,000
Add: Unpaid Salaries
15,000
1,65,000
Provision for Doubtful Debts
7,250
Net Profit (Balancing Figure)
1,62,750
4,37,150
4,37,150
Balance Sheet
as on March 31, 2018
Liabilities
Amount
(₹)
Assets
Amount
(₹)
Capital
7,10,000
Patents
75,000
Less: Drawings
(52,450)
Less: 20% Amortisation
(15,000)
60,000
Add: Net Profit
1,62,750
8,20,300
Machinery
2,00,000
Sundry Creditors
63,000
Less: 10% Depreciation
(20,000)
1,80,000
Salaries Outstanding
GST Payable (WN 2)
15,000
4,000
Freehold Land
1,00,000
Sundry Debtors
1,45,000
Less: Provision for Doubtful Debts
(7,250)
1,37,750
Prepaid Insurance
850
Building
3,00,000
Add: Wages
20,000
3,20,000
Closing Stock
68,000
Cash in Hand
5,400
Cash at Bank
30,300
9,02,300
9,02,300
Working Notes:
(1) ₹ 20,000 is reduced from Wages and added in Building since such amount is a Capital Expenditure.
(2) GST Set Off:
CGST Payable/(Receivable)=Output CGST-Input CGST=22,000-20,000=2,000
SGST Payable/(Receivable)=Output SGST-Input SGST=22,000-20,000=2,000
Total GST Payable=CGST Payable+SGST Payable=2,000+2,000= ₹4,000
|
Financial Statements of Shri Bansi Lal Trading Account for the year ended March 31, 2018 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||
|
Opening Stock |
57,600 |
Sales |
9,87,800 |
|
|
|
Purchases |
4,06,750 |
|
Less: Return Inwards |
(6,800) |
9,81,000 |
|
Less: Return Outwards |
(5,000) |
4,01,750 |
Closing Stock |
68,000 |
|
|
Carriage on Purchases |
20,400 |
|
|
||
|
Fuel and Power |
47,300 |
|
|
||
|
Wages |
1,04,800 |
|
|
|
|
|
Less: Building |
(20,000) |
84,800 |
|
|
|
|
Gross Profit (Balancing Figure) |
4,37,150 |
|
|
||
|
|
10,49,000 |
|
10,49,000 |
||
|
|
|
|
|
||
|
Profit and Loss Account for the year ended March 31, 2018 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||
|
Carriage on Sales |
32,000 |
Gross Profit |
4,37,150 |
||
|
Depreciation on Machinery |
20,000 |
|
|
||
|
Amortisation of Patents |
|
15,000 |
|
|
|
|
Insurance |
6,000 |
|
|
|
|
|
Less: Prepaid Insurance (1,700 × 6/12) |
(850) |
5,150 |
|
|
|
|
General Expenses |
30,000 |
|
|
||
|
Salaries |
1,50,000 |
|
|
|
|
|
Add: Unpaid Salaries |
15,000 |
1,65,000 |
|
|
|
|
Provision for Doubtful Debts |
7,250 |
|
|
||
|
Net Profit (Balancing Figure) |
1,62,750 |
|
|
||
|
|
4,37,150 |
|
4,37,150 |
||
|
|
|
|
|
||
|
Balance Sheet as on March 31, 2018 |
|||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Capital |
7,10,000 |
|
Patents |
75,000 |
|
|
Less: Drawings |
(52,450) |
|
Less: 20% Amortisation |
(15,000) |
60,000 |
|
Add: Net Profit |
1,62,750 |
8,20,300 |
Machinery |
2,00,000 |
|
|
Sundry Creditors |
63,000 |
Less: 10% Depreciation |
(20,000) |
1,80,000 |
|
|
Salaries Outstanding |
15,000 |
Freehold Land |
1,00,000 |
||
|
|
|
Sundry Debtors |
1,45,000 |
|
|
|
|
|
Less: Provision for Doubtful Debts |
(7,250) |
1,37,750 |
|
|
|
|
Prepaid Insurance |
850 |
||
|
|
|
Building |
3,00,000 |
|
|
|
|
|
Add: Wages |
20,000 |
3,20,000 |
|
|
|
|
Closing Stock |
68,000 |
||
|
|
|
Cash in Hand |
5,400 |
||
|
|
|
Cash at Bank |
30,300 |
||
|
|
9,02,300 |
|
9,02,300 |
||
|
|
|
|
|
||
Working Notes:
(1) ₹ 20,000 is reduced from Wages and added in Building since such amount is a Capital Expenditure.
(2) GST Set Off:
CGST Payable/(Receivable)=Output CGST-Input CGST=22,000-20,000=2,000
SGST Payable/(Receivable)=Output SGST-Input SGST=22,000-20,000=2,000
Total GST Payable=CGST Payable+SGST Payable=2,000+2,000= ₹4,000
