Prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as at that date from the following Trial 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) Taxes ₹ 3,000 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 on 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, 2019 is ₹ 45,000.
(vii) A fire occurred on 1st April, 2019 destroying goods costing ₹ 10,000. These goods were purchased paying CGST and SGST @ 6% each.
|
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) Taxes ₹ 3,000 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 on 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, 2019 is ₹ 45,000.
(vii) A fire occurred on 1st April, 2019 destroying goods costing ₹ 10,000. These goods were purchased paying CGST and SGST @ 6% each.
Financial Statements
Trading Account
for the year ended March 31, 2019
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, 2019
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Taxes and Insurance
5,000
Gross Profit
55,000
Add: Outstanding Taxes
3,000
Commission
5,000
Less: Prepaid Insurance
(500)
7,500
Less: Advance Commission
(1,000)
4,000
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
3,000
Establishment Charges
25,000
Net Profit (Balancing Figure)
20,000
61,100
61,100
Balance Sheet
as on March 31, 2019
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
1,000
25,000
Bills Receivable
Prepaid Insurance
Closing Stock
32,000
500
45,000
Taxes Outstanding
GST Payable (WN 2)
3,000
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, 2019. Hence, it will not affect the Balance Sheet dated 31st March, 2019.
(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
|
Financial Statements Trading Account for the year ended March 31, 2019 |
|||||
|
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, 2019 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||
|
Taxes and Insurance |
5,000 |
|
Gross Profit |
55,000 |
|
|
Add: Outstanding Taxes |
3,000 |
|
Commission |
5,000 |
|
|
Less: Prepaid Insurance |
(500) |
7,500 |
Less: Advance Commission |
(1,000) |
4,000 |
|
|
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 |
3,000 |
|
|
||
|
Establishment Charges |
25,000 |
|
|
||
|
Net Profit (Balancing Figure) |
20,000 |
|
|
||
|
|
61,100 |
|
61,100 |
||
|
|
|
|
|
||
|
Balance Sheet as on March 31, 2019 |
|||||
|
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 |
1,000 |
Bills Receivable |
32,000 |
||
|
Taxes Outstanding |
3,000 |
Cash in Hand |
15,000 |
||
|
|
|
|
|
||
|
|
1,80,000 |
|
1,80,000 |
||
|
|
|
|
|
||
Working Notes:
(1) Loss of stock by fire has ocurred on 1st April, 2019. Hence, it will not affect the Balance Sheet dated 31st March, 2019.
(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
