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.
Answers
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
Answer:
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