Question no 42 Chapter No 16 - Unimax Class 11

Question No 42 Chapter No 16 – Unimax Class 11

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The solution of Question No 42 Chapter No 16 – UNIMAX Class 11

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

The following Trial Balance is extracted from the books of Nikesh as at 31st March,2020:

Trial balance

Debit balance	₹	Credit balance	₹
Stock on 1.4.2019	50,000	Capital	3,20,000
Furniture	16,000	Creditors	80,000
Building	1,60,000	Purchases returns	2,000
Debtors	60,000	Commission	6,000
Drawings	20,000	Sale	4,55,600
Plant and Machinery	1,40,000	Bad debts recovered	1,400
Wages	24,000	Output CGST	5,000
Salaries	40,000	Output SGST	5,000
Bad debts	2,000
Purchases	2,40,000
Electricity charges	2,4000
Telephone charges	4,800
General expenses	6,000
Postage expenses	3,600
Salaries returns	1,800
Insurance premium	3,000
Cash in hand	6,400
Cash at bank	80,000
Input CSGT	7,500
Input SGST	7,500
	8,75,000		8,75,000

Prepare Trading and Profit and Loss Account for the year ended 31st March,2020 and Balance Sheet as at that the after taking into account the following adjustments:
(1) Stock on 31st March 2020 ₹ 14,000.
(2) Plant and Machinery include a machine purchased for ₹ 20,000 on 1.10.2019.
(3) Outstanding liabilities for wages ₹ 1,200 and salaries ₹ 2,800. These are not subject to GST.
(4) Depreciation @ 5% p.a. is to be provided on all fixed assts.
(5) Write off bad debts ₹ 1,500.
(6) Insurance premium paid in advance ₹ 400.
(7) Accrued commission ₹ 500. CGST and SGST is levied @ 6% each.

The solution of Question No 42 Chapter No 16 – UNIMAX Class 11

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

Particulars		Amount	Particulars		Amount
To Opening stock		50,0,00	By sales	4,55,600
To purchases	2,40,000		Less: Returns	1,800	4,53,800
Less: Returns	2,000	2,38,000	By Closing stock		14,000
Wages	24,000
Add: O/s Wages	1,200	25,200
To Gross Profit		1,5,600
(transferred to P & L A/c)
		4,67,800			4,67,800
To Salaries	40,000		By Gross Profit b/d		1,54,600
Add: Outstanding Salaries	2,800	42,800	By Commission	6,000
To Bad debts	2,000		Add: Accrued Commission	500	6,500
Add: Further bad debts	1,500	3,500	By bad debs Recovered		1,400
To Electricity charges		2,400
To Telephone charges		4,800
To General expenses		6,000
To Postage expenses		3,600
To Insurance premium	3,000
Less: Prepaid insurance	400	2,600
To Dep. Machinery & Plant	6,500
To Dep. On Furniture	800
To Dep. On Building	8,000	15,300
To Net Profit (Transferred to capital)		81,500
		1,62,500			1,62,500

Balance Sheet of Nikesh
AS 0n 31st March, 2020

Liabilities		Amount	Assets		Amount
Current Liabilities			Current Assets
Creditors		80,000	Cash in hand		6,400
Wages outstanding		1,200	Cash at bank		80,000
Salaries outstanding		40,000	Insurance prepaid		400
Capital			Accrued Commission		560
Opening Balance	3,20,000		Debtors	60,000
Add: Net Profit	81,500		Less: Bad debts	1,500	58,500
	4,01,500		Closing stock		14,00
Less: Drawings	20,000	3,81,500	Input CGST (7,500-5,000-30*)		2,470
			Input SGST (7,500-5,000-30*)		2,470
			Fixed Assets
			Plant and Machinery	1,40,000
			Less: Depreciation	6,500	1,33,500
			Furniture	16,000
			Less: Depreciation	800	15,200
			Building	1,60,000
			Less: Depreciation	8,000	1,52,000
		4,65,500			4,65,500

Output CSGT on accrued commission= 6% of ₹ 500= ₹ 30;
Out put SGST on accrued commission= 6% of ₹ 500= ₹ 30.
Note: Input CGST and SGST is set off against output CGST. Similarly, input SGST is set off against output SGST.

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