# Question No 29 Chapter No 18 – T.S. Grewal 11 Class

Question No.29 - Chapter No.18- T.S. Grewal +1 Book 2019-Solution

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 25,000 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.

Final Accounts: Meaning, Definition and Explanation

Profit and Loss Account: Meaning, Format & Examples

Balance Sheet: Meaning, Format & Examples

Comment if you have any question.

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