18. Prepare Trading and Profit & Loss Account for the year ended 31st March, 2024 and Balance Sheet as at that date from the following Trial Balance:

Heads of Accounts L.F. Dr. (₹) Cr. (₹)
Capital 1,00,000
Cash 15,000
Bank Loan 20,000
Purchases 1,20,000
Sales 150,000
Sales Return 10,000
Purchases Return 20,000
Salary Expenses 22,000
Insurance 5,000
Bad Debts 5,000
Provision for Doubtful Debts 7,000
Debtors 82,000
Creditors 45,000
Commission 5,000
Deposits 40,000
Opening Stock 30,000
Drawings 14,000
Furniture 6,000
Input CGST 10,000
Input SGST 10,000
Output CGST 8,000
Output SGST 8,000
Output IGST 6,000
Total 3,69,000 3,69,000

Adjustments:

(i) Salaries of ₹3,000 are outstanding but Insurance 500 is prepaid.

(ii) Commission ₹1,000 received in advance for the next year.

(iii) Interest ₹2,100 is to be received on Deposits and Interest on Bank Loan ₹3,000 is to be paid.

(iv) Provision for Doubtful Debts to be maintained at ₹10,000.

(v) Depreciate Furniture by 10%.

(vi) Closing Stock (at cost) as on 31st March, 2024 was ₹45,000 and its Net Realisable

Value (Market Value) was ₹50,000.

(vii) A fire occurred on 1st April, 2024 destroying goods costing ₹10,000. The Stock was fully insured (Ignore GST).

  T.S.Grewal/2024 Edition/Practical Problems/Q-18

For full question, please refer to the text book T.S.Grewal’s Double Entry Book Keeping-Financial Accounting, Textbook for CBSE Class XI published by Sultan Chand & Sons Pvt. Ltd.

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