Question

​The Trial Balance of M/s. Taj & Co. as on 31st March, 2018 was as follows:​

Ledger Accounts	Dr. (₹)	Cr. (₹)
Purchases	1,62,505
Sales		2,52,400
Provision for Doubtful Debts		5,200
Sundry Debtors	50,200
Sundry Creditors		30,526
Bills Payable		3,950
Opening Stock	26,725
Wages	23,137
Salaries	5,575
Furniture	7,250
Postage	4,226
Power and Fuel	1,350
Trade Expenses	5,831
Bad Debts	525
Loan to Suraj @ 10% p.a. (1st December, 2017)	3,000
Cash in Hand and at Bank	10,000
Trade Expenses Accrued but not Paid		700
Drawings	4,452
Capital		12,000
Outstanding Wages		2,000
Input CGST	5,000
Input SGST	5,000
Output CGST		4,000
Output SGST		4,000
Total	3,14,776	3,14,776
	​

Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet after considering the following information:
(i) Depreciation on Furniture @ 10% to be charged.
(ii) Sundry Debtors include ₹500 due from a customer who has become insolvent.
(iii) Provision for Doubtful Debts @ 5% on Sundry Debtors is to be maintained.
(iv) Goods costing ₹1,500, purchased paying CGST and SGST @ 9% each, were destroyed by fire and insurance company admitted a claim for ₹1,000.
(v) Stock on 31st March, 2018 was ₹12,550.

Answer 1

Trading Account for the year ended March 31, 2018
Dr.			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Opening Stock	26,725	Sales	2,52,400
Purchases	1,62,505	Loss by Fire	1,500
Power & Fuel	1,350	Closing Stock	12,550
Wages	23,137
Gross Profit	52,733
	2,66,450		2,66,450

Profit & Loss Account for the year ended March 31, 2018
Dr.					Cr.
Particulars		Amount (₹)	Particulars		Amount (₹)
Depreciation on Furniture		725	Gross Profit		52,733
Loss by Fire		770	Old Provision for DD	5,200
Bad Debts	525		Less: Provision for DD	2,485	2,715
Add: Further Bad Debts	500	1,025	Interest Receivable		100
Postage		4,226
Salaries		5,575
Trade Expenses		5,831
Net Profit		37,396
		55,548			55,548

Balance Sheet as on March 31, 2018
Dr.					Cr.
Liabilities		Amount (₹)	Assets		Amount (₹)
Creditors		30,526	Furniture & Fixtures	7,250
Capital	12,000		Less: Depreciation	725	6,525
Less: Drawings	4,452		Loan to Suraj	3,000
Add: Net Profit	37,396	44,944	Add: Interest Receivable	100	3,100
Bills Payable		3,950	Debtors	50,200
Outstanding Wages		2,000	Less: Further Bad Debts	500
Trade Expenses Accrued		700	Less: Provision	2,485	47,215
			Closing Stock		12,550
			Cash in Hand & at Bank		10,000
			Insurance Claim		1,000
			Input CGST		865
			Input SGST		865
		82,120			82,120