Page 158 - DEBK-XI(2020)

19.10 Double Entry Book Keeping—CBSE XI

4. (With GST). From the following balances extracted from the books of Mr. Amit,
prepare Trading and Profit and Loss Account for the year ended 31st March, 2020
and Balance Sheet as at that date after taking into consideration the adjustments
given below:

TRIAL BALANCE as at 31st March, 2020
Particulars Dr. (`) Cr. (`)

Capital ...................................................................................................... ... 60,000
Drawings ...................................................................................................... 7,500 ...
Purchases ...................................................................................................... 72,100 ...
Sales ...................................................................................................... ... 95,000
Returns ...................................................................................................... 1,300 2,700
Sundry Debtors ...................................................................................................... 18,200 ...
Creditors ...................................................................................................... ... 35,750
Opening Stock ...................................................................................................... 19,800 ...
Bad Debts ...................................................................................................... 3,000 ...
Bills Receivable ...................................................................................................... 12,000 ...
Bills Payable ...................................................................................................... ... 23,000
Cash in Hand ...................................................................................................... 300 ...
Office Expenses ...................................................................................................... 6,210 ...
Delivery Van ...................................................................................................... 15,000 ...
Delivery Van Expenses ...................................................................................................... 1,400 ...
Discount ...................................................................................................... ... 2,910
Rent ...................................................................................................... 10,700 ...
Telephone Charges ...................................................................................................... 1,050 ...
Postage Expenses ...................................................................................................... 950 ...
Furniture ...................................................................................................... 5,000 ...
Printing and Stationery ...................................................................................................... 2,750 ...
Commission ...................................................................................................... 8,400 ...
Carriage Inwards ...................................................................................................... 3,200 ...
Salaries and Wages ...................................................................................................... 20,500 ...
Input IGST ...................................................................................................... 10,000 ...
Total 2,19,360 2,19,360

Adjustments:
(i) Closing Stock was valued at ` 61,700.
(ii) Depreciate Furniture and Machinery @ 10% p.a. and Delivery Van @ 20% p.a.
(iii) Outstanding Rent amounted to ` 900 subject to CGST and SGST @ 6% each.

(iv) Bad Debts ` 200.
(v) Charge 1/4th of Salaries and Wages to the Trading Account.
(vi) A new machinery was purchased on credit and installed on 31st December, 2019 costing
` 15,000 plus IGST @ 12%. Entry for the purchase is not yet passed in the books.