Q.21 During the accounting period 2018-19, the total sales of the firm were Rs.7,00,000, out of which
cash sales were of Rs.4,50,000. The total expenses for the year were Rs.5,00,000, out of which
Rs.2,10,000 are still outstanding. Determine income of the firm for 2018-19 as per accrual basis of
accounting
(3)
Answers
Explanation:
Answer :
Dr Debtor's Account Cr
Date Particulars JF Amt.(Rs) Date Particulars JF Amt. (Rs)
To Balance b/d (Balancing figure) 54,000 By Discount Allowed 2,500
To Bills Receivable (Dishonoured) 3,500 By Bills Receivable (Received) 75,000
To Sales Credit 3,15,000 By Cash A/c 2,20,000
By Balance c/d 75,000
3,72,500 3,72,500
Dr Creditor's Account Cr
Date Particulars JF Amt.(Rs) Date Particulars JF Amt.(Rs)
To Discount Received 1,500 By Balance b/d 50,000
To Cash A/c 1,35,000 By Purchases (credit) 2,95,000
To Bills Receivable (Acceptance) 30,000
To Balance c/d (Balancing figure) 1,78,500
3,45,000 3,45,000
Note : It is assumed that all purchase is credit purchase.
Working Note
Computation of Credit Sales
Sales = Cost of goods sold + Gross profit
Cost of goods sold = Opening stock + Purchases - Closing stock
= 30,000+2,95,000−25,000=3,00,000
When the cost of goods sold is Rs 3,00,000.
Sales will be (Total) = 3,00,000 + 25\%$$ Gross Profit
Gross profit is calculated on sales hence to calculate it on cost of goods sold. The formula will be
= [Costofgoods×
100−25
25
]
= [3,00,000×
75
25
]
Total Sales = 3,00,000+1,00,000=Rs.4,00,000
As we know that cash sales is Rs 85,000
So credit sales will be = 4,00,000−85,000=Rs3,15,000