Question 54 Chapter No 16 – Class 11 Unimax

Question 54 Chapter No 16 – Class 11 Unimax

Trial Balance of Mr. Gopal Das as at 31st March, 2020 was as follows:

Particulars	Debit	Credit
Purchases	8,12,525
Sales		12,62,000
Provision for doubtful debtors		26,000
Sundry debtors	2,51,000
Sundry creditors		1,52,630
Bills payable		20,250
Opening stock	1,33,625
Wages	1,15,685
Salaries	27,875
Furniture	36,250
Postage	21,130
Power and fuel	6,750
General expenses	29,155
Bad debts	2,625
Loan to Ram @ 10% p.a. Dec.1.2019	15,000
Cash in hand and bank	50,000
General expenses outstanding		3,500
Drawing Account	22,260
Capital A/c		50,000
Outstanding Wages		10,000
Input CGST	5,000
Input SGST	5,000
Input IGST	8,000
Output CSGT		4,000
Output SGST		4,000
Output IGST		9,500
	15,41,880	15,41,880

Prepare Trading and Profit and profit loss Account for the year ended 31st March, 2020 and balance sheet as at that date after taking into consideration the following information:

(1) Stock on 31st March 2020 was ₹ 62,750.
(2) Depreciation on furniture is to be charged @ 10%.
(3) Sundry debtors include an item of ₹ 2,500 due from a customer who has become insolvent.
(4) The remaining debtors are not consideration to be doubtful of recovery.
(5) Goods costing ₹ 7,500 plus IGST @ 12% were destroyed by fire and insurance company admitted a claim for ₹ 8,000.
(6) Received goods from Rahul & Co. of ₹ 6,000 plus IGST @ 12% on 27th March, 2020 but the invoice purchases was not recoded in the purchases book.

The solution of Question 54 Chapter No 16 – Class 11 Unimax

                                                    Trading and Profit & Loss A/c of Gopal Das
                                                            For the year ended 31st March, 2020

Particulars		Amount	Particulars		Amount
To Opening stock		1,33,625	By sales		12,62,000
To purchases	8,12,525		By goods lost by fire		7,500
Add: Omitted Purchases(note1)	6,000	8,18,525	By Closing stock		62,750
To Wages		1,15,685
To Power and fuel		6,750
To Gross Profit (transferred to P & L A/c)		2,57,665
		13,32,250			13,32,250
To Loss of stock by fire (₹ 8,400-8,000)		400	By Gross Profit b/d		2,57,665
To Salaries		27,875	By Provision for doubtful debts (note 2)
To Postage		21,130	Existing provision	26,000
To General expenses		29,155	Less: Bad debts	2,625
To Dep. on Furniture		3,625	Less: Further bad debts	2,500	20,875
To Net Profit (Transferred to capital)		1,96,855	By Accrued interest on loan		500
		2,79,040			2,79,040

                                                             Balance Sheet of of Gopal Das
                                                                 AS 0n  31st March, 2020

Liabilities		Amount	Assets		Amount
Current liabilities			Current assets
Creditors	1,52,630		Insurance claim		8,000
Add: Omitted Purchases	6,720	1,59,350	Cash in hand and at bank		50,000
Bills Payable		20,250	Closing stock		62,750
Outstanding wages		10,000	Debtors	2,51,000
General expenses outstanding		3,500	Less: Further bad debts	2,500	2,48,500
Capital			Loan to Ram	15,000
Opening balance	50,000		Add: Accrued interest	500	15,500
Add: Net profit for the year	1,96,855	2,46,855	Input SGST		320
Less: Drawings	22,260	2,24,595	Fixed assets
			Furniture	36,250
			Less: Depreciation	3,625	32,625
		4,17,695			4,17,695

1. Following entry will be passed to record omitted purchases:

Purchases A/c	Dr.	₹6,000
Input IGST A/c	Dr.	₹720
To Supplier A/c		₹6,720

2. Since the remaining debtors are not doubtful of recovery, balance in provision for doubtful debts is written back (creditors) to profit & loss account.
3. Input CGST, Input SGST and Input IGST shall be first adjusted against output CGST, output SGST, output IGST respectively. Thereafter, balance in Input CGST (₹ 1,000) shall be adjusted against Output IGST and balance (₹680) in Output IGST shall be adjusted against Input SGST leaving a balance of ₹ 320 in Input SGST Account.