Question No 44 Chapter No 18

Question No 44 Chapter No 18

Goods are withdrawn for business and personal use

44.Trail balance of Shikhar Dhawan as of 31st March 2018 was as follows:

Ledger AccountsDr. Ledger AccountsCr
Debtors64,000Creditor25,000
Stock(1.4.2017)19,000Capital1,20,000
Bank balance10,000Sales3,15,000
Purchases2,00,000Purchases Return11,000
Salaries23,000Output IGST5,000
Wages12,000Output CGST7,000
Sales return18,000Output SGST7,000
Bad debts9,000Rent receivable24,000
Building1,00,000Provision for bad debts6,000
Input IGST12,000  
Input CGST9,000  
Input SGST9,000  
Furniture30,000  
Stationery1,500  
Legal expenses3,500  
 5,20,000 5,20,000

Prepare Trading  and Profit & loss account for the year ending 31st March 2018 and balance sheet as at that date after considering the following adjustments:
(i)Stock on 31st March 2018 stood at Rs 90,000
(ii)Bad debts are further written off Rs 4,000and create provision for bad debts @5% on debtors
(iii)Goods sold for Rs 20,000 plus 6% CGST and 6% SGST to Rohit Sharma on 27th March 2018 were delivered and adjusted from stock but omitted to record in the sales book
(iv)Goods costing Rs 16,000 were distributed gifts among staff admitted from the books (goods were originally purchased at 6% CGST and SGST )
(v)Deprecate building5% p.a and furniture 10% p.a.
(vi)Rent due but received Rs 10,000(subject to 9% CGST and 9% SGST)

 

The solution of Question No 44 Chapter No 18:-

Trading A/c
Particular
AmountParticular
Amount
To Opening stock A/c 19,000By Sale A/c3,15,000 
To Purchases A/c2,00,000 Less: return18,000 
Less: Return11,000 Add: omitted sale20,0003,17,000
Less: distributed to staff16,0001,73,000By Closing Stock A/c 90,000
To wages A/c 12,000   
To Gross Profit A/c 2,03,000   
  4,07,000  4,07,000

 

Profit/Loss A/c
Particular
AmountParticular
Amount
To salaries 23,000By Gross Profit A/c 2,03,000
To legal exp. 3,500By Rent Received A/c24,000 
To Dep. On building 5,000Add: Rent accrued10,00034,000
To Dep. On furniture 3,000   
To bad debts w/off9,000    
Add: further bad debts4,000    
Add: new provision4,120    
Less; old provision6,00011,120   
To Gift to Staff 17,920   
To Stationery 1,500   
To Net profit A/c 1,71,960   
  2,37,000  2,37,000

 

Balance Sheet
Labilities
AmountAssets
Amount
Capital A/c1,20,000 Debtors 64,000 
Add: Net Profit1,71,9602,91,960Add: Omitted Sale22,400 
Creditor 25,000Less: further bad debts4,000 
Output CGST 1,060Less: new provision4,12078,280
Output SGST 1,060Closing Stock 90,000
   Bank 10,000
   Building1,00,000 
   Less: depreciation5,00095,000
   Furniture30,000 
   Less: depreciation3,00027,000
   Accrued Rent 11,800
   Input IGST 7,000
      
  3,19,080  3,19,080

Working Note:-
Calculation of GST

Output CGST on 31st March 2018=7,000
Add: CGST on Rent Accrued=900
Add: CGST on sale to Rohit=1,200
 =9,100
   
Output SGST on 31st March 2018=7,000
Add: SGST on Rent Accrued=900
Add: SGST on sale to Rohit=1,200
 =9,100
   
Input CGST on 31st March 2018=9,000
Less: CGST on Gift to Staff=(960)
  8,040
   
Input SGST on 31st March 2018=9,000
Less: SGST on Gift to Staff=(960)
 =8,040
   
Output CGST=9,100
Less: Input CGST=8,040
CGST payable=1,060
   
Output SGST=9,100
Less: Input SGST=8,040
SGST payable=1,060
   
Output IGST=5,000
Less: Input IGST=12,000
IGST Recoverable=7,000

Journal Entry of Accrued Rent

Accrued Rent A/cDr.11,800 
To Rent A/c  10,000
To Output CGST A/c  1,800
To Output SGST A/c  1,800
(Being rent Accrued but not received)   

 

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 all Chapters: –

 

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

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

Chapter No. 14 – Provisions and Reserves 

Chapter No. 15 – Bills of Exchange

Chapter No. 16 – Rectification of Errors 

Chapter No. 17 – Financial Statements – (Without Adjustments)

Chapter No. 18 – Financial Statements – (With Adjustments)

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