Question 22.
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:
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.
Answers
Trading and P&L A/c with Balance Sheet as at 31.3.2018
Explanation:
Trading and P&L A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
To Opening Stock 30000 By Sales 140000
To Purchases 100000 (-10000)
(-20000) By Closing Stock 45000
To Gross Profit 55000
To O/s Interest 3000 By Gross Profit 55000
To Taxes and Insurance 6500 By Comm. Received 4000
(+2000-500) (-1000)
To Establishment Exp. 22000 By Interest on 2100
To Dep. on Furniture 600 Deposits
To O/s Salary 1000
To Bad debts 8000
(+3000)
To Net profit 20000
(bal. fig.)
61100 61100
Balance Sheet
as at 31.3.2018
Notes to A/c Amount(Rs.)
Non-Current Assets:
Furniture 5400
Deposits(Assumed long term) 42100
Current Assets:
Debtors 40000
Closing Stock 45000
Bills Receivable 32000
Prepaid Insurance 500
Cash 15000
Total(A) 180000
Non-Current Liabilities:
Capital 106000
(+20000-14000)
Bank Loan 23000
Current Liabilities:
Creditors 20000
Bills Payables 25000
Output IGST 2000
O/s Salary 1000
O/s Taxes 2000
Comm. Received in Advance 1000
Total(B) 180000
Trading and P&L A/c with Balance Sheet as at 31.3.2018
Explanation:
Trading and P&L A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
To Opening Stock 30000 By Sales 140000
To Purchases 100000 (-10000)
(-20000) By Closing Stock 45000
To Gross Profit 55000
To O/s Interest 3000 By Gross Profit 55000
To Taxes and Insurance 6500 By Comm. Received 4000
(+2000-500) (-1000)
To Establishment Exp. 22000 By Interest on 2100
To Dep. on Furniture 600 Deposits
To O/s Salary 1000
To Bad debts 8000
(+3000)
To Net profit 20000
(bal. fig.)
61100 61100
Balance Sheet
as at 31.3.2018
Notes to A/c Amount(Rs.)
Non-Current Assets:
Furniture 5400
Deposits(Assumed long term) 42100
Current Assets:
Debtors 40000
Closing Stock 45000
Bills Receivable 32000
Prepaid Insurance 500
Cash 15000
Total(A) 180000
Non-Current Liabilities:
Capital 106000
(+20000-14000)
Bank Loan 23000
Current Liabilities:
Creditors 20000
Bills Payables 25000
Output IGST 2000
O/s Salary 1000
O/s Taxes 2000
Comm. Received in Advance 1000
Total(B) 180000