Question No 29 Chapter No 18 - T.S. Grewal 11 Class

Question No 29 Chapter No 18

29 From the following Trial Balance and additional information of Mr. Gaurav, a proprietor, prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date:

Particular	Dr. Balance	Cr. Balance
Building	1,60,000	…
Wages	26,000
Machinery	16,000
Salaries and Wages	41,600
Debtors	38,700
Capital		2,23,100
Purchases	56,500
Sales		1,00,700
Creditors		12,500
Income Tax	2,000
Drawings	500
Input CGST A/c	10,000
Input SGST A/c	10,000
Output CGST A/c		12,500
Output SGST A/c		12,500
Total	3,61,300	3,61,300

Closing Stock at cost 1,00,000 but its market value is 88,500

The solution of Question No 29 Chapter No 18:-

 

Trading Account

Particular		Amount	Particular		Amount
To Purchases		56,500	By Sales		1,00,700
To Wages		26,000	By Closing Stock		88,500
To Gross Profit		1,06,700
		1,89,200			1,89,200

 

Profit and Loss Account

Particular		Amount	Particular		Amount
To Salaries and Wages		41,600	By Gross Profit		1,06,700
To Net Profit		65,100
		1,06,700			1,06,700

 

Balance Sheet

Particular		Amount	Particular		Amount
Capital	2,23,100		Building		1,60,000
Add: Net Profit	65,100		Machinery		16,000
Less: Drawings	500		Closing Stock		88,500
Less: Income Tax	2, 000	2,85,700	Sundry Debtor		38,700
Creditors		12,500
GST Payable		5,000
		3,03,200			3,03,200

Working Notes:

1 GST Set off First: Output CGST-Input CGST= 12,500-10,000=2,500
Second: Output SGST-Input SGST= 12,500-10,000=2,500
GST Payable=Output CGST+Output SGST=2,500+2,500=5,000
2 Closing Stock has been taken at its Market Price i. e. Rs88, 500
and not on its Cost. This is because, as per the Principle of Conservatism, Closing Stock is taken at Cost or Market Price whichever is less.

https://tutorstips.com/final-accounts/

https://tutorstips.com/profit-and-loss-account/

 

https://tutorstips.com/balance-sheet/

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Also, Check out the solved question of previous Chapters: -

• • Chapter No. 1 – Introduction to Accounting
  • Chapter No. 2 – Basic Accounting Terms
  • Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
  • Chapter No. 4 – Bases of Accounting
  • Chapter No. 5 – Accounting Equation
  • Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
  • Goods and Services Tax(GST)
  • Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
  • Chapter No. 8 – Journal
  • Chapter No. 9 – Ledger
  • Chapter No. 10 – Special Purpose Books I – Cash Book
  • Chapter No. 11 – Special Purpose Books II – Other Books
  • Chapter No. 12 – Bank Reconciliation Statement
  • Chapter No. 13 – Trial Balance
  • Chapter No. 14 – Depreciation
  • Chapter No. 15 – Provisions and Reserves
  • Chapter No. 16 – Accounting for Bills of Exchange
  • Chapter No. 17 – Rectification of Errors
  • Chapter No. 18 – Financial Statements of Sole Proprietorship
  • Chapter No. 19 – Adjustments in preparation of Financial Statements
  • Chapter No. 20 – Accounts from incomplete Records – Single Entry System
  • Chapter No. 21 – Computers in Accounting
  • Chapter No. 22 – Accounting Software – Tally
  • Chapter No. 5 - Accounting Equation
  • Chapter No. 6 - Accounting Procedures - Rules of Debit and Credit
  • Goods and Services Tax(GST)
  • Chapter No. 8 - Journal
  • Chapter No. 9 - Ledger
  • Chapter No. 10 – Special Purpose Books I – Cash Book

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