Page 168 - DEBK-XI(2020)

19.20 Double Entry Book Keeping—CBSE XI

Sundry Debtors ....................................................................................................... 46,500 ...
Sundry Creditors ....................................................................................................... ... 34,000
Cash in Hand ....................................................................................................... 2,000 ...
Cash at Bank ....................................................................................................... 3,000 ...
Bills Receivable ....................................................................................................... 50,000 ...
Bills Payable ....................................................................................................... ... 10,000
Input CGST ....................................................................................................... 8,000 ...
Input SGST ....................................................................................................... 8,000 ...
Output CGST ....................................................................................................... ... 7,000
Output SGST ....................................................................................................... ... 7,000
Output IGST ....................................................................................................... ... 3,500
Total 7,82,500 7,82,500
Adjustments:
(i) Stock on 31st March, 2020 was valued at ` 55,000.
(ii) A new machinery was installed during the year purchased for ` 22,000 plus IGST
@ 18% but it was not recorded in the books as no payment was made for it. Wages
` 1,500 paid for its installation have been debited to Wages Account.
(iii) Depreciate Plant and Machinery by 20% and Freehold property by 15%. Depreciation
is not to be charged on the machinery purchased during the year.

(iv) Loose tools were valued at ` 12,000 on 31st March, 2020.
(v) Write off ` 500 as Further Bad Debts.
(vi) Maintain Provision of 10% on Sundry Debtors for Doubtful Debts.
(vii) The Manager is entitled to a commission of 10% on the net profits after charging such
commission.
[Gross Profit—` 2,40,500; Net Profit—` 1,32,864; Balance Sheet Total—` 4,06,110.]

[Hint: Manager’s Commission = 10/110 × ` 1,46,150 = ` 13,286.]
4. Following is the Trial Balance of K on 31st March, 2020:
Particulars Dr. Balances Cr. Balances
` `
Capital ........................................................................................... ... 8,00,000
Drawings ........................................................................................... 60,000 ...
Opening Stock ........................................................................................... 75,000 ...
Purchases ........................................................................................... 15,95,000 ...
Freight on Purchases ........................................................................................... 25,000 ...
Wages (11 months up to 28th Feb., 2020) ................................................................................... 66,000 ...
Sales ........................................................................................... ... 23,10,000
Salaries ........................................................................................... 1,40,000 ...
Postages and Telephones ........................................................................................... 12,000 ...
Printing and Stationery ........................................................................................... 18,000 ...