How is gst treated in trading and profit and loss account and balance sheet ?

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Dear student Items on which GST is charged from us but the same is not allowed, is treated as GST expense and is to be transferred to trading and profit and loss account. items on which GST is paid and sem is allowed as a credit is to be treated as an asset in the balance sheet as input credit. Items on which GST is received bias is to be treated as and liability in the balance sheet as output credit. Regards

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Trading & Profit & loss account and balance sheet is prepared from:

Q. Steps of preparing Final Accounts is -
(a) Trading Account
(b) Profit and Loss Account
(c) Balance Sheet

Q. Following is the Trial Balance as on 31st March 2016. Prepare Trading and Profit and Loss Account and Balance Sheet :-

Particulars	Debit (₹)	Credit (₹)
Stock (1st April 2015)	8,000
Sales		2,20,000
Purchases	1,26,000
Productive Wages	56,500
Salaries	16,000
Stores Consumed	6,050
Carriage	3,050
Rent and Rates	5,200
Insurance	1,320
Machinery	52,000
Building	67,000
Capital less Drawings		1,45,600
Sundry Debtors	44,000
Sundry Creditors		20,000
Secured Loan		15,000
Furniture	3,350
General Expenses	2,600
Cash in hand	1,930
Bad Debts	1,020
Bank	6,580
Total	4,00,600	4,00,600
Total

Additional Information :
(a) Stock on 31st March 2016 is ₹ 20,600.
(b) Depreciate machinery @ 10% p.a.
(c) Make a Provision @ 5% for Doubtful Debts.
(d) Provide

2 \frac{1}{2} %

for discount on sundry debtors.
(e) Rent and Rates include security deposit of ₹ 400.
(f) Insurance prepaid ₹ 120.

From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017.

Account Title	Debit Amount Rs	Credit Amount Rs
Stock as on April 01, 2016	16,000
Purchases and Sales	67,600	1,12,000
Returns inwards and outwards	4,600	3,200
Carriage inwards	1,400
General expenses	2,400
Bad debts	600
Discount received		1,400
Bank over draft		10,000
Interest on bank overdraft	600
Commission received		1,800
Insurance and taxes	4,000
Scooter expenses	200
Salaries	8,800
Cash in hand	4,000
Scooter	8,000
Furniture	5,200
Building	65,000
Debtors and Creditors	6,000	16,000
Capital		50,000

Closing stock Rs 15,000.

Q. Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date from the following Traial 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	................................................................................	50,000	…
Creditors	................................................................................	…	20,000
Commission	................................................................................	…	5,000
Deposits	................................................................................	40,000	…
Opening Stock	................................................................................	30,000	…
Drawings	................................................................................	14,000	…
Furniture	................................................................................	6,000	…
Bills Receivable	................................................................................	32,000	…
Bills Payable	................................................................................	…	25,000
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) Salaries ₹ 1,000 and Taxes ₹ 2,000 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 and 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, 2018 is ₹ 45,000
(vii) A fire occurred on 1st April, 2018 destroying goods costing ₹ 10,000. These goods were purchased paying CGST and SGST @ 6% each.

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