Question No 44 Chapter No 18 - USHA Publication 11 Class

Question No 44 Chapter No 18

Table of Contents

The solution of Question No 44 Chapter No 18:-

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

Goods are withdrawn for business and personal use

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

Ledger Accounts	Dr.	Ledger Accounts	Cr
Debtors	64,000	Creditor	25,000
Stock(1.4.2017)	19,000	Capital	1,20,000
Bank balance	10,000	Sales	3,15,000
Purchases	2,00,000	Purchases Return	11,000
Salaries	23,000	Output IGST	5,000
Wages	12,000	Output CGST	7,000
Sales return	18,000	Output SGST	7,000
Bad debts	9,000	Rent receivable	24,000
Building	1,00,000	Provision for bad debts	6,000
Input IGST	12,000
Input CGST	9,000
Input SGST	9,000
Furniture	30,000
Stationery	1,500
Legal expenses	3,500
	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		Amount	Particular		Amount
To Opening stock A/c		19,000	By Sale A/c	3,15,000
To Purchases A/c	2,00,000		Less: return	18,000
Less: Return	11,000		Add: omitted sale	20,000	3,17,000
Less: distributed to staff	16,000	1,73,000	By 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

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Profit/Loss A/c
Particular		Amount	Particular		Amount
To salaries		23,000	By Gross Profit A/c		2,03,000
To legal exp.		3,500	By Rent Received A/c	24,000
To Dep. On building		5,000	Add: Rent accrued	10,000	34,000
To Dep. On furniture		3,000
To bad debts w/off	9,000
Add: further bad debts	4,000
Add: new provision	4,120
Less; old provision	6,000	11,120
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		Amount	Assets		Amount
Capital A/c	1,20,000		Debtors	64,000
Add: Net Profit	1,71,960	2,91,960	Add: Omitted Sale	22,400
Creditor		25,000	Less: further bad debts	4,000
Output CGST		1,060	Less: new provision	4,120	78,280
Output SGST		1,060	Closing Stock		90,000
			Bank		10,000
			Building	1,00,000
			Less: depreciation	5,000	95,000
			Furniture	30,000
			Less: depreciation	3,000	27,000
			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