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Standard X
Mathematics
VAT
Prepare Tradi...
Question

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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Solution

Financial Statements

Trading Account

for the year ended March 31, 2018

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, 2018

Dr.

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

Taxes and Insurance

5,000

Gross Profit

55,000

Add: Outstanding Taxes

4,000

Commission

5,000

Less: Prepaid Insurance

(500)

8,500

Less: Advance Commission

(1,000)

4,000

Salary Outstanding

1,000

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

1,000

Establishment Charges

25,000

Net Profit (Balancing Figure)

20,000

71,100

61,100

Balance Sheet

as on March 31, 2018

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

50,000

Sundry Creditors

20,000

Less: Provision for Doubtful Debts

(10,000)

40,000

Advance Commission
Bills Payable
Salary Outstanding

1,000
25,000
1,000

Bills Receivable
Prepaid Insurance
Closing Stock

32,000
500
45,000

Taxes Outstanding
GST Payable (WN 2)

2,000
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, 2018. Hence, it will not affect the BalanceSheet dated 31st March, 2018.

(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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Q. From the following Trial Balance prepare Trading and Profit & Loss Account for the year ended 31st March, 2017 and Balance Sheet as at that date:-
Dr.
(₹)		 Cr.
(₹)
Stock 1st April, 2016 22,300
Purchases and Purchase Return 2,30,000 5,200
Freehold Premises 1,00,000
Incidental Trade Exp. 11,200
Insurance 1,850
Audit Fees 800
Commission Received 2,700
Interest 1,400
Debtors and Creditors 32,400 24,830
Wages 30,200
Salaries 15,200
Capital 1,50,000
Drawings 12,000
Income-Tax 3,600
Investments 8,000
Discount allowed & received 7,500 4,200
Sales Return & Sales 6,400 3,17,400
B/R 5,200
Office Furniture 9,000
Rent 2,600
Cash in hand 5,080
Bank Balance 7,600
5,08,330 5,08,330

Adjustment:-
1. Stock at 31st March 2017 is ₹ 70,000.
2. Write of 5% Depreciation on Freehold Premises and 20% on office furniture.
3. Commission earned but not received ₹ 500.
4. Interest earned ₹ 600.
5. ₹ 200 for rent have been received in advance.
6. Charge interest on Capital @ 6% and ₹ 500 on Drawings.
Q. From the following Trial Balance of Sh. Swamy Narain, prepare Trading and Profit & Loss Account for the year ended 31st March 2018 and a Balance Sheet as at that date :
Dr. Balances ₹ Cr. Balances ₹
Opening Stock 50,000 Capital 20,00,000
Purchases 5,30,000 Sales 12,50,000
General Expenses 45,000 Sundry Creditors 1,36,000
Stationery 6,000 Trade Charges due but not paid 5,000
Wages 2,15,000 Outstanding Rent 4,000
Trade Charges 25,000 Bank Balance 45,000
Rent 44,000
Charity 5,000
Advertisement Expenses 30,000
Carriage on Sales 12,000
Bills Receivables 30,000
Sundry Debtors 2,20,000
Cash Discount 16,000
Cash in Hand 22,000
Furniture 1,00,000
Advance for Furniture 40,000
Plant & Machinery 6,00,000
Building 14,50,000
34,40,000 34,40,000

Adjustments:
(i) Stock on 31 March, 2018 was valued at ₹ 60,000.
(ii) A new machine was installed during the year costing ₹ 2,00,000 but it was not recorded in the books. Wages paid for its installation ₹ 10,000 have been debited to Wages Account.
(iii) An advance of ₹ 10,000 given alongwith purchase order was wrongly recorded in purchases.
(iv) General expenses include ₹ 20,000 paid for Wages.
(v) Wages include a sum of ₹ 50,000 spent on the erection of a Scooter Stand for employees.
(vi) Advance for Furniture is for furniture at proprietor's residence.
(vii) Depreciate Furniture at 15%, Plant & Machinery at 20% and Building at 10%.
(viii) Carry forward 2/3 of Advertisement Expenses as unexpired.
(ix) A B/R of ₹ 20,000 was discounted with bank on 15 Nov. 2017, but not yet matured.
Q. From the following Trial Balance of M/s. Ram Lal and Sons, prepare Trading, Profit and Loss Account for the year ending 31st March, 2018 and a Balance Sheet as on that date:​

Heads of Accounts Dr.
(₹)		 Cr.
(₹)
Drawings 15,000
Capital 3,50,000
Plant and Machinery 2,05,000
Debtors 50,000
Creditors 28,000
Returns Inward 8,000
Returns Outward 7,000
Discount Allowed 7,000
Discount Received 6,000
Commission 15,000
Interest on Bank Loan 12,000
Furniture 55,000
Provision for Doubtful Debts 13,000
Wages 50,000
Salaries 45,000
Advertisement 15,000
Rent and Taxes 13,000
Purchases 2,60,000
Sales 4,00,000
Stock on 1st April, 2017 70,000
Carriage 5,000
Land and Building 98,000
Cash in Hand 8,000
Cash at Bank 20,000
10% Bank Loan as on 1st April, 2017 1,50,000
Input CGST 9,000
Input SGST 9,000
Output IGST 15,000
Total 9,69,000 9,69,000
​

Adjustments:
(i) The cost of stock on 31st March, 2018 was ₹37,000. However, its market value was ₹35,000.
(ii) Wages outstanding were ₹6,000 and salaries outstanding were ₹5,000 on 31st March, 2018.
(iii) Depreciate Land and Building @ 212%, Plant and Machinery @ 10% p.a. and Furniture @ 15 p.a.
(iv) Purchase includes purchase of machinery for ₹10,000 on 1st October, 2017.
(v) Debtors include bad debts of ₹2,000. Maintain a provision for doubtful debts @ 10% on Debtors.
Q. From the following Trial Balance and other information prepare Trading and Profit and Loss Account for the year ended 31st March 2016 and Balance Sheet as at that date.
Heads of Accounts Debit
(₹)		 Credit
(₹)
Sundry Debtors 32,000
Stock (1st April 2015) 22,000
Cash in hand 35
Cash at bank 1,545
Plant and Machinery 17,500
Sundry Creditors 10,650
Trade Expenses 1,075
Sales 1,34,500
Salaries 2,225
Carriage Outwards 400
Rent 900
Bills Payable 7,500
Purchases 1,18,870
Discounts 1,100
Premises 34,500
Capital (1st April 2015) 79,500
Total 2,32,150 2,32,150

Additional Information:
Stock on 31st March 2016 was ₹ 12,450. Rent was unpaid to the extent of ₹ 85 and ₹ 150 were outstanding for Trade Expenses. ₹ 400 are to be written off as bad debts out of the above debtors, and 5% is to be provided for doubtful debts. Depreciate plant and machinery 10% and premises by 2%. Manager is entitled a commission of 5% on net profit after charging his commission.
Q. The Trial Balance shows the following balances as at 31st March, 2017:-
Dr. Balances (₹) Cr. Balances (₹)
Purchases 60,000 Capital 1,13,075
Sales Returns 1,500 Sales 1,27,000
Plant and Machinery 90,000 Purchases Returns 1,275
Opening Stock 40,000 Discount Received 800
Discount Allowed 350 Sundry Creditors 20,000
Bank Charges 100 Bills Payable 5,000
Sundry Debtors 45,000
Salaries 7,000
Wages 10,000
Freight : In 1,000
Freight : Out 1,200
Rent, Rates and Taxes 2,000
Advertisements 2,000
Cash at Bank 7,000
2,67,150 2,67,150

Closing Stock was valued at ₹ 35,000. Prepare Trading and Profit and Loss Account for the year ended 31st March, 2017 and Balance Sheet as at that date.
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