Question

Followingt Trial Balance has been extracted from the books of Santosh on 31st March, 2018:

Particulars	Debit balances (₹)	Credit balances (₹)
Drawings	20,000
Plant and Machinery	10,00,000
Furniture and Fixtures	1,20,000
Capital A/c		19,60,000
Sales		46,80,000
Loose Tools	2,00,000
Goodwill	1,00,000
Opening Stock	2,00,000
Returns Outward		40,000
Discount		60,000
Purchases	21,20,000
Returns Inward	80,000
Wages	10,00,000
Sundry Creditors		2,40,000
Provision for Doubtful Debts		20,000
Carriage Inwards	1,20,000
Salaries	4,16,000
General Expenses	7,20,000
Rent	1,44,000
Postage	40,000
Output IGST		1,00,000
Output CGST		50,000
Output SGST		50,000
Sundry Debtors	5,60,000
Shri B. Barua	20,000
Cash and Bank Balances	1,40,000
Input IGST	1,10,000
Input CGST	45,000
Input SGST	45,500
Total	72,00,000	72,00,000
	​

Following additional information is available:
(a) Stock on 31st March, 2018 was ₹3,08,000.
(b) Depreciation is to be charged on Plant and Machinery at 5% and Furniture and Fixtures at 6%. Loose Tools are revalued at ₹1,60,000.
(c)Provision for Doubtful Debts is to be maintained at 5% on Sundry Debtors.
(d) Remuneration of ₹20,000 paid to Shri B. Barua, a temporary employee, stands debited to his personal account and it is to be corrected.
(e) Unexpired insurance was ₹4,000.
You are to prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date.

Answer 1

Trading Account for the year ended March 31, 2018
Dr.					Cr.
Particulars		Amount (₹)	Particulars		Amount (₹)
Opening Stock		2,00,000	Sales	46,80,000
Purchases	21,20,000		Less: Returns	80,000	46,00,000
Less: Returns	40,000	20,80,000	Closing Stock		3,08,000
Carriage Inwards		1,20,000
Wages		10,00,000
Gross Profit		15,08,000
		16,80,600			16,80,600

Profit & Loss Account for the year ended March 31, 2018
Dr.				Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
General Expenses		7,20,000	Gross Profit	15,08,000
Salaries	4,16,000		Discount	60,000
Add: Outstanding Salaries	20,000	4,36,000	Unexpired Insurance	4,000
Postage		40,000
Provision for Doubtful Debts		8,000
Rent		1,44,000
Depreciation on:
Furniture & Fixtures	7,200
Plant & Machinery	50,000
Loose Tools	40,000	97,200
Net Profit		1,26,800
		15,72,000		15,72,000

Balance Sheet as on March 31, 2018
Dr.					Cr.
Liabilities		Amount (₹)	Assets		Amount (₹)
Creditors		2,40,000	Furniture & Fixtures	1,20,000
Capital	19,60,000		Less: Depreciation	7,200	1,12,800
Less: Drawings	20,000		Plant & Machinery	10,00,000
Add: Net Profit	1,26,800	20,66,800	Less: Depreciation	50,000	9,50,000
			Debtors	5,60,000
			Less: Provision	28,000	5,32,000
			Cash & Bank Balances		1,40,000
			Closing Stock		3,08,000
			Goodwill		1,00,000
			Loose Tools		1,60,000
			Prepaid Insurance		4,000
		23,06,800			23,06,800