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

Question No 29 Chapter No 18

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: Definition and Explanation

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

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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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T.S. Grewals Double Entry Book Keeping - Question No 29 Chapter No 18 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

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