Page 164 - DEBK-XI(2020)

19.16 Double Entry Book Keeping—CBSE XI

Solution: TRADING AND PROFIT AND LOSS ACCOUNT
Dr. for the year ended 31st March, 2020 Cr.
Particulars ` Particulars `
To Adjusted Purchases 6,60,000 By Sales 7,20,000
Less: Drawings 5,000 6,55,000
To Gross Profit c/d 65,000
7,20,000 7,20,000
To Rent 11,000 By Gross Profit b/d 65,000
Add: Outstanding 1,000 12,000 By Rent Received 6,500
To Selling and Distribution Expenses 36,075 Less: Advance Rent 500 6,000
To Interest (Paid) 3,750 By Interest (Received) 4,500
To Miscellaneous Expenses 19,200 By Discount Received 1,000
Less: Assembly of Furniture 1,000 Add: Further Discount 2,000 3,000
Installation of Machinery 1,000 2,000 17,200 By Net Loss transferred to Capital A/c 28,875
To Bad Debts 3,000
Add: Further Bad Debts 6,000
Prov. for Doubtful Debts (New) 20,000
29,000
Less: Prov. for Doubtful Debts (Old) 10,000 19,000
To Discount Allowed 2,000
Add: Further Discount 4,000
Provision for Discount (New) 3,600
9,600
Less: Provision for Discount (Old) 2,400 7,200
To Depreciation on: Machinery (WN 2) 4,575
Furniture 4,575
Building 3,000 12,150
1,07,375 1,07,375

BALANCE SHEET
as at 31st March, 2020
Liabilities ` Assets `
Current Liabilities Current Assets
Creditors 90,800 Debtors 2,10,000
Less: Further Discount 2,000 88,800 Less: Further Bad Debts 6,000
Bills Payable 55,600 2,04,000
Outstanding Rent 1,120 Less: Further Discount 4,000
Advance Rent 500 2,00,000
Vendor for Furniture 22,400 Less: Provision for Doubtful Debts 20,000
Outstanding Office Expenses 3,200 1,80,000
Loan from Bank 50,000 Less: Provision for Discount on Debtors 3,600 1,76,400
Capital Bills Receivable 60,000
Opening Balance 3,08,000 Closing Stock 40,000
Less: Net Loss 28,875 Prepaid Expenses 1,200
Drawings 18,375 Investments 50,000
Income Tax 1,000 48,250 2,59,750 Input CGST 1,960
Input SGST 1,960