Question

The following balances were extracted from the books of Harish Chandra on 31st March, 2018:

	₹		₹
Drawings	15,000	Capital	2,45,000
Life Insurance Premium	5,000	Loan	78,800
General Expenses	25,000	Sales	6,53,600
Building	1,10,000	Purchases	4,70,000
Machinery	93,400	Motor Car	20,000
Stock on 1st April, 2017	1,62,000	Reserve Fund (Cr.)	9,000
Power	22,400	Commission (Cr.)	13,200
Insurance	13,150	Car Expenses	18,000
Wages	72,000	Bills Payable	38,500
Debtors	62,800	Cash	800
Creditors	25,000	Bank Overdraft	33,000
Input CGST A/c	15,000	Charity	1,050
Input SGST A/c	15,000	Bad Debts	5,500
Output IGST A/c	30,000

Stock on 31st March, 2018 was valued at ₹ 2,35,000.
Prepare final accounts for the year ended 31st March, 2018.

Answer 1

Financial Statement of Harish Chandra
Trading Account for the year ended March 31, 2018
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Opening Stock		1,62,000	Sales	6,53,600
Purchases		4,70,000	Closing Stock	2,35,000
Power		22,400
Wages		72,000
Gross Profit (Balancing Figure)		1,62,200
		8,88,600		8,88,600

Profit and Loss Account for the year ended March 31, 2018
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
General Expenses		25,000	Gross Profit	1,62,200
Taxes and Insurance		13,150	Commission	13,200
Bad Debts		5,500
Car Expenses		18,000
Charity		1,050
Net Profit (Balancing Figure)		1,12,700
		1,75,400		1,75,400

Balance Sheet as on March 31, 2018
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Capital	2,45,000		Fixed Assets
Add: Net Profit	1,12,700		Building	1,10,000
Less: Life Insurance Premium	(5,000)		Machinery	93,400
Less: Drawings	(15,000)	3,37,700	Motor Car	20,000
Reserve Fund		9,000	Current Assets
Loan		78,800	Closing Stock	2,35,000
Current Liabilities			Debtors	62,800
Bank Overdraft		33,000	Cash	800
Bills Payable		38,500
Creditors		25,000
		5,22,000		5,22,000

Working Note:
(1) GST Set off
Output IGST-Input CGST-Input SGST= 30,000-15,000-15,000=Nil

GST Payable/Receivable=Nil

Hence, Computation of GST won't affect the Balance Sheet.