Page 170 - DEBK-XI(2020)

19.22 Double Entry Book Keeping—CBSE XI

5. Following is the Trial Balance of Mr. Prem Prakash on 31st March, 2020:

Particulars Dr. (`) Cr. (`)
Plant and Machinery ............................................................................................................... 5,50,000 ...
Fixtures and Fittings ............................................................................................................... 17,200 ...
Prem Prakash’s Capital ............................................................................................................... ... 9,32,300
Factory Fuel and Power ............................................................................................................... 5,420 ...
Office Salaries ............................................................................................................... 37,450 ...
Sales ............................................................................................................... ... 12,61,770
Creditors ............................................................................................................... ... 2,26,800
Purchases Return ............................................................................................................... ... 34,720
Bills Payable ............................................................................................................... ... 64,220
Factory Lighting ............................................................................................................... 3,920 ...
Travelling Expenses ............................................................................................................... 9,250 ...
Carriage on Sales ............................................................................................................... 9,600 ...
Cash at Bank ............................................................................................................... 22,450 ...
Cash in Hand ............................................................................................................... 680 ...
Sundry Debtors ............................................................................................................... 4,78,000 ...
Purchases ............................................................................................................... 8,32,900 ...
Wages ............................................................................................................... 99,150 ...
Rent and Taxes ............................................................................................................... 17,650 ...
Office Expenses ............................................................................................................... 27,780 ...
Carriage Inwards ............................................................................................................... 8,970 ...
Discount ............................................................................................................... 4,220 ...
Drawings ............................................................................................................... 68,200 ...
Stock on 1st April, 2019 ............................................................................................................... 2,17,250 ...
Manufacturing Expenses ............................................................................................................... 26,800 ...
Sales Return ............................................................................................................... 74,220 ...
Insurance ............................................................................................................... 5,700 ...
Input IGST ............................................................................................................... 15,000 ...
Output CGST ............................................................................................................... ... 6,000
Output SGST ............................................................................................................... ... 6,000
Total 25,31,810 25,31,810

Taking into account the following adjustments, prepare Trading and Profit and Loss Account and
Balance Sheet as at 31st March, 2020:

(a) Depreciation: 5% on Plant and Machinery and 10% on Fixtures and Fittings.
(b) Create Provision for Doubtful Debts @ 2½% on Sundry Debtors.
(c) Rent Outstanding for March, 2020 ` 1,500 plus CGST and SGST @ 6% each.
(d) Insurance unexpired on 31st March, 2020 ` 700.
(e) Outstanding Wages and Salaries were ` 8,000 and ` 3,500 respectively.

(f) Stock on 31st March, 2020 was ` 1,65,800.
[Gross Profit—` 1,85,660; Net Profit—` 28,540; Balance Sheet Total—` 11,96,840.]
[Hint: Input IGST will have a balance of ` 3,180.]