Accountancy, asked by Debdas4234, 10 months ago

Question 30.
Following balances were extracted from the books of Modern Traders on 31st March, 2018:

Prepare Profit and Loss Account for the year ended 31st March, 2018 and the Balance Sheet as at that date giving effect to the following:
(a) Closing Stock was ₹ 1,50,000.
(b) Wages Outstanding were ₹ 5,000.
(c) Provision for Doubtful Debts is to be maintained at 5% of Sundry Debtors.
(d) Depreciate Plant and Machinery by 10% and Furniture by 5% on Straight Line Method.
(e) Sundry Creditors include ₹ 10,000 due to Nayak who is also included in Sundry Debtors at ₹ 15,000.
(f) New furniture for ₹ 12,000 was purchased on 1st April, 2017. Old furniture valued at ₹ 2,000 was exchanged and balance was paid by cheque. Purchase of furniture was recorded at the net value of furniture, i.e., ₹ 10,000. The firm had purchased this furniture paying IGST @ 18%.
(g) A fire occurred on 27th March, 2018 destroying stock costing ₹ 10,000, which were purchased paying CGST and SGST @ 9% each. Insurance company conveyed acceptance of claim of ₹ 7,500 on 10th April, 2018. Final accounts were prepared on 1st July, 2018.

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Answers

Answered by madeducators2
3

Trading and P&L A/c with Balance sheet

Explanation:

                                         In the Books of Modern Traders

                                                 Trading and P&L A/c                                      

Particulars                Amount(Rs.)         Particulars         Amount(Rs.)          

To Opening Stock      1,50,000             By Sales              12,00,000

To Purchases              8,20,000            By Closing Stock 1,50,000

To Wages                      18,000              By Loss by Fire       10,000

To Freight Inwards       20,000

To Gross Profit            3,52,000

                                                                                                                     

To Depreciation on:                                By Gross Profit       3,52,000

Plant and Machinery     40000              By Discount Received 4,000

Furniture                         2,500               By Rent                      12,000

To Salaries                   2,00,000

To Postage and Tele      8,000

To Rent,Rates and Taxes 46000

To Printing and Stat.         8000

To Carriage outwards        5000

To Insurance                     7000

To Bad debts                     5800

(+1800)

To Loss by fire                   4300

To Net Profit                      41,400

                                                                                                                         

                                       3,68,000                                               3,68,000

                                                                                                                           

                                                   Balance Sheet

                                                          as at 31.3.2018                                    

                                                           Notes to A/c           Amount(Rs.)        

Non-Current Assets:

Furniture                                                                                47500

Plant and Machinery                                                            2,70,000

Current Assets:

Debtors                                                                                  1,86,200

(-10000-9800)

Closing Stock                                                                        150000

Input SGST                                                                              3200

Insurance                                                                                7500

Cash in hand                                                                          62000

Cash at bank                                                                          2,55,000

                                                                                                                       

Total(A)                                                                                   981400

                                                                                                                           

Non-Current Liabilities:

Capital                                                                                     841400

(+41400-50000)

General Reserve                                                                      50,000

Current Liabilities:

Creditors                                                                                    85000

O/s Wages                                                                                   5000

                                                                                                                       

Total(B)                                                                                      981400

                                                                                                                           

                                 

Answered by khushivishwakarma691
5

Answer:

hope this will help you

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