Question No 28 Chapter No 18 - T.S. Grewal 11 Class

Question No 28 Chapter No 18

28. The following balances were extracted from the books of Harish Chandra on 31st March, 2018:


Drawings	15,000	Capital	2,45,000
Life Insurance	5,000	Loan	78,800
Premium General Expenses	25,000	Sales	6,53,600
Building	1,10,000	Purchases	4,70,000
Machinery	93,400	Motor Car	20,000
Stock on 1st April, 2017	1,62,000	Reserve Fund Cr.	9,000
Power	22,400	Commission Cr	13,200
Insurance	13,150	Car Expenses	18,000
Wages	72,000	Bills Payable	38,500
Debtors	62,800	Cash	800
Creditors	25,000	Bank Overdraft	33,000
Input CGST A/c	15,000	Charity	1,050
Input SGST A/c	15,000	Bad Debts	5,500
Output IGST A/c	30,000

Stock on 31st March, 2018 was valued at 2,35,000. Prepare final accounts for the year ended 31st March, 2018.

The solution of Question No 28 Chapter No 18:-

Trading Account
Particular	Amount	Particular	Amount
To Opening Stock	1,62,000	By Sales	6,53,600
To Purchases	4,70,000	By Closing Stock	2,35,000
To Power	22,400
To Wages	72,000
To Gross Profit	1,62,200
	8,88,600		8,88,600

Profit and Loss Account
Particular	Amount	Particular	Amount
To General Expenses	25,000	By Gross Profit	1,62,200
To Taxes and Insurance	13,150	By Commission	13,200
To Bad Debts	5,500
To Car Expenses	18,000
To Charity	1,050
To Net Profit	1,12,700
	1,75,400		1,75,400

Balance Sheet
Particular		Amount	Particular	Amount
Capital	2,45,000		Building	1,10,000
Add: Net Profit	1,12,700		Machinery	93,400
Less: Life Insurance Premium	5, 000		Motor Car	20,000
Less: Drawings	15, 000	3,37,700	Closing Stock	2,35,000
Reserve Fund		9,000	Sundry Debtor	62,800
Loan		78,800	Cash	800
Bank Overdraft		33,000
Bills Payable		38,500
Creditors		25,000
		5,22,000		5,22,000

Working Note:

Output IGST-Input CGST-Input SGST= 30,000-15,000-15,000=Nil
GST Payable/Receivable=Nil
Hence, Computation of GST won’t affect the 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