1
Question
From the following Trial Balance of Mr. Gaurav and additional information given, prepare Trading and Profit and Loss Account for the year ended 31st March,2018 and Balance Sheet as at 31st March, 2018:
Particulars
Dr.
(₹)
Cr.
(₹)
Opening Stock
62,500
Capital
4,66,000
Debtors
75,000
Creditors
43,750
Purchases
5,00,000
Sales
8,75,000
Carriage
10,000
Wages and Salaries
10,000
Commission
16,750
Machinery
1,38,750
Furniture
25,000
Bad Debts Recovered
8,000
Bills Receivable
37,500
Bills Payable
33,750
Land and Building
5,00,000
Insurance
21,250
10% Bank Load
50,000
Interest on Bank Loan
3,000
Bank
24,500
Drawings
62,500
Input CGST
15,000
Input SGST
15,000
Input IGST
10,000
Output CGST
19,000
Output SGST
19,000
Total
15,31,250
15,31,250
Adjustments:
(i) Value of the Closing Stock as on 31st March, 2018 is ₹50,000.
(ii) Wages and Salaries outstanding are ₹12,500 and Insurance prepaid is ₹5,000.
(iii) Depreciate Machinery and Furniture @ 10% and 15% p.a. respectively. Machinery included a machine which was purchased for ₹38,500 on 30th September, 2017.
(iv) Goods costing ₹ 10,000 were taken by the proprietor for his personal use but no entry has been made in the books of account. These goods were purchased paying IGST @ 18%.
|
|
|
||
| Particulars | Dr. (₹) |
Cr. (₹) |
|
| Opening Stock | 62,500 | ||
| Capital | 4,66,000 | ||
| Debtors | 75,000 | ||
| Creditors | 43,750 | ||
| Purchases | 5,00,000 | ||
| Sales | 8,75,000 | ||
| Carriage | 10,000 | ||
| Wages and Salaries | 10,000 | ||
| Commission | 16,750 | ||
| Machinery | 1,38,750 | ||
| Furniture | 25,000 | ||
| Bad Debts Recovered | 8,000 | ||
| Bills Receivable | 37,500 | ||
| Bills Payable | 33,750 | ||
| Land and Building | 5,00,000 | ||
| Insurance | 21,250 | ||
| 10% Bank Load | 50,000 | ||
| Interest on Bank Loan | 3,000 | ||
| Bank | 24,500 | ||
| Drawings | 62,500 | ||
| Input CGST | 15,000 | ||
| Input SGST | 15,000 | ||
| Input IGST | 10,000 | ||
| Output CGST | 19,000 | ||
| Output SGST | 19,000 | ||
| Total | 15,31,250 | 15,31,250 | |
| | |||
(i) Value of the Closing Stock as on 31st March, 2018 is ₹50,000.
(ii) Wages and Salaries outstanding are ₹12,500 and Insurance prepaid is ₹5,000.
(iii) Depreciate Machinery and Furniture @ 10% and 15% p.a. respectively. Machinery included a machine which was purchased for ₹38,500 on 30th September, 2017.
(iv) Goods costing ₹ 10,000 were taken by the proprietor for his personal use but no entry has been made in the books of account. These goods were purchased paying IGST @ 18%.
Open in App
Solution
Trading Account
for the year ended March 31, 2018
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Opening Stock
62,500
Sales
8,75,000
Purchases
5,00,000
Closing Stock
50,000
Less: Drawings
10,000
4,90,000
Carriage
10,000
Wages & Salaries
31,250
Add: Outstanding
12,500
43,750
Gross Profit
3,18,750
9,25,000
9,25,000
Profit & Loss Account
for the year ended March 31, 2018
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Insurance
21,250
Gross Profit
3,18,750
Less: Prepaid
5,000
16,250
Bad Debts Recovered
8,000
Interest on Loan
3,000
Commission
16,750
Add: Outstanding Interest
2,000
5,000
Depreciation on:
Furniture
3,750
Machinery
11,950
15,700
Net Profit
3,06,550
3,43,500
3,43,500
Balance Sheet
as on March 31, 2018
Dr.
Cr.
Liabilities
Amount
(₹)
Assets
Amount
(₹)
Creditors
43,750
Machinery
1,38,750
Capital
4,66,000
Less: Depreciation
11,950
1,26,800
Less: Drawings
74,300
Furniture
25,000
Add: Net Profit
3,06,550
6,98,250
Less: Depreciation
3,750
21,250
Bills Payable
33,750
Bank
24,500
Outstanding Wages & Salaries
12,500
Bills Receivable
37,500
10% Bank Loan
50,000
Closing Stock
50,000
Add: Outstanding Interest
2,000
52,000
Debtors
75,000
Input IGST
200
Land & Building
5,00,000
Prepaid Insurance
5,000
8,40,250
8,40,250
|
Trading Account
for the year ended March 31, 2018
|
|||||
| Dr. |
Cr.
|
||||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
||
| Opening Stock |
62,500
|
Sales |
8,75,000
|
||
| Purchases |
5,00,000
|
|
Closing Stock |
50,000
|
|
| Less: Drawings |
10,000
|
4,90,000
|
|
||
| Carriage |
10,000
|
|
|||
| Wages & Salaries |
31,250
|
|
|
||
| Add: Outstanding |
12,500
|
43,750
|
|
||
| Gross Profit |
3,18,750
|
|
|||
|
9,25,000
|
|
9,25,000
|
|||
|
Profit & Loss Account
for the year ended March 31, 2018
|
||||||
| Dr. |
Cr.
|
|||||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|||
| Insurance |
21,250
|
|
Gross Profit | 3,18,750 | ||
| Less: Prepaid |
5,000
|
16,250
|
Bad Debts Recovered |
8,000
|
||
| Interest on Loan |
3,000
|
|
Commission |
16,750
|
||
| Add: Outstanding Interest |
2,000
|
5,000
|
|
|||
| Depreciation on: |
|
|
||||
| Furniture |
3,750
|
|
|
|||
| Machinery |
11,950
|
15,700
|
|
|||
| Net Profit |
3,06,550
|
|
||||
|
3,43,500
|
|
3,43,500
|
||||
|
Balance Sheet
as on March 31, 2018
|
||||||
| Dr. |
Cr.
|
|||||
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
|||
| Creditors |
43,750
|
Machinery |
1,38,750
|
|
||
| Capital |
4,66,000
|
|
Less: Depreciation |
11,950
|
1,26,800
|
|
| Less: Drawings |
74,300
|
|
Furniture |
25,000
|
|
|
| Add: Net Profit |
3,06,550
|
6,98,250
|
Less: Depreciation |
3,750
|
21,250
|
|
| Bills Payable |
33,750
|
Bank |
24,500
|
|||
| Outstanding Wages & Salaries |
12,500
|
Bills Receivable |
37,500
|
|||
| 10% Bank Loan |
50,000
|
|
Closing Stock |
50,000
|
||
| Add: Outstanding Interest |
2,000
|
52,000
|
Debtors |
75,000
|
||
|
|
Input IGST |
200
|
||||
|
|
Land & Building |
5,00,000
|
||||
|
|
Prepaid Insurance |
5,000
|
||||
|
8,40,250
|
|
8,40,250
|
||||
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