Page 165 - DEBK-XI(2020)

Adjustments in Preparation of Financial Statements 19.17

Fixed Assets
Machinery 50,000
Add: Installation of Machinery 1,000
51,000
Less: Depreciation (WN 2) 4,575 46,425
Furniture and Fittings 30,000
Add: New Furniture 20,000
Assembly of Furniture 1,000
51,000
Less: Depreciation 4,575 46,425
Building 60,000
Less: Depreciation 3,000 57,000
4,81,370 4,81,370
Working Notes:
1. An event occurring after the date of Balance Sheet (i.e., fire broke out on 1st April, 2018) does not
affect the Balance Sheet prepared as at 31st March, 2018.
Ê 10 ˆ Ê 9 10 ˆ
2. Depreciation on: Machinery = ` 30,000 ¥ 100 ˜ ¯ + ` 21,000 ¥ 12 ¥ 100 ˜ ¯ = ` 3,000 + ` 1,575 = ` 4,575;
Á
Á
Ë
Ë
Ê 10 ˆ Ê 9 10 ˆ
Furniture = Á ` 30,000 ¥ ˜ + ` 21,000 ¥ ¥ ˜ = ` 3,000 + ` 1,575 = ` 4,575.
Á
Ë 100 ¯ Ë 12 100 ¯
3. Rent for 1 month is payable. Therefore, CGST and SGST @ 6% each is also provided.
4. CGST and SGST on Advance Rent will not be debited.
3. Adjustment of GST:
CGST (`) SGST (`)
Input GST 1,000 1,000
Add: GST on Outstanding Rent 60 60
GST on Purchase of Furniture 1,200 1,200
2,260 2,260
Less: Reversed on Drawings 300 300
Balance in Input GST 1,960 1,960
Unsolved Questions

1. The following is the Trial Balance of Amrit Raj as at 31st March, 2012:
Particulars Dr. (`) Cr. (`)
Capital .................................................................................................................................. ... 25,000
Building .................................................................................................................................. 30,000 ...
Furniture .................................................................................................................................. 2,640 ...
Scooter .................................................................................................................................. 4,000 ...
Sales Return and Purchases Return ............................................................................................ 2,300 1,600
Opening Stock .............................................................................................................................. 8,000 ...
Purchases and Sales .................................................................................................................... 33,800 56,040
Bad Debts .................................................................................................................................. 300 ...
Carriage Inwards .......................................................................................................................... 700 ...
General Expenses ........................................................................................................................ 1,200 ...
Bad Debts Provision ..................................................................................................................... ... 700
Bank Loan .................................................................................................................................. ... 5,000
Interest on Bank Loan .................................................................................................................. 300 ...
Commission .................................................................................................................................. ... 900
Insurance and Taxes .................................................................................................................... 2,000 ...
Scooter Expenses ........................................................................................................................ 2,600 ...
Salaries .................................................................................................................................. 4,400 ...
Cash in Hand ................................................................................................................................ 2,000 ...
Debtors and Creditors .................................................................................................................. 3,000 8,000
Total 97,240 97,240