Request a call back

# Class 11-commerce T S GREWAL Solutions Accountancy Chapter 18 - Financial Statements of Sole Proprietorship

## Financial Statements of Sole Proprietorship Exercise 18.62

### Solution PQ 1

 Expenditure Reason (i) (ii) (iii)(iv)(v) Used in business for a number of years

### Solution PQ 2

 Expenditure Reason (i) (ii) (iii)(iv)(v) Part of normal operating cost

### Solution PQ 3

 Gross Profit = Sales + Closing Stock - (Opening Stock + Goods Purchased + Freight and Packing) = 1,90,000 + 30,000 - (25,000 +1,40,000 + 10,000) = 2,20,000 - 1,75,000 = Rs.45,000

Note:6,000) is not a Direct Expense. Thus, it not considered while computing the amount of Gross Profit.

### Solution PQ 4

Calculation of amount of Closing Stock

Closing Stock =Rs.15,000

### Solution PQ 5

 Trading Account Dr. Cr. Particulars Rs. Particulars Rs. To Opening Stock 23,000 By Sales 25,400 To Purchases 29,000 Less : Sales Return (500) 24,900 Less :Purchases Return (2,400) 26,600 By Closing Stock 47,700 To Carriage Inwards 100 To Gross Profit c/d (Bal. Fig.) 22,900 72,600 72,600

Note: Depreciation is not a Direct Expense. Thus, it not shown in the Trading Account.

 Journal Date Particulars L.F. Dr. Rs. Cr. Rs. Trading A/c Dr. 52,600 --------To Opening Stock A/c 23,000 --------To Purchases A/c 29,000 --------To Carriage Inwards A/c 100 --------To Sales Return A/c 500 (Being transfer of balances to debit side of trading account) Sales A/c Dr. 25,400 Purchases Return A/c Dr. 2,400 --------To Trading A/c 27,800 (Being transfer of balances to credit side of trading account) Closing Stock A/c Dr. 47,700 --------To Trading A/c 47,700 (Being recording of closing stock) Trading A/c Dr. 22,900 --------To Profit and Loss A/c 22,900 (Being transfer of gross Profit to the Profit and Loss account)

## Financial Statements of Sole Proprietorship Exercise 18.63

### Solution PQ 6

 Trading Account Dr. Cr. Particulars Rs. Particulars Rs. To Opening Stock 2,00,000 By Sales 14,07,000 To Purchases 8,50,000 By Closing Stock 1,80,000 To Carriage on Purchases 23,000 To Gross Profit c/d (Balancing Fig.) 5,14,000 15,87,000 15,87,000

Note: Carriage on Sales and Office Rent are not a Direct Expense. Thus, it is not considered while computing the amount of Gross Profit.

### Solution PQ 7

 Trading Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Opening Stock 40,000 By Sales 3,80,000 To Purchases 4,00,000 Less: Return Inwards (20,000) 3,60,000 Less: Return Outwards (80,000) 3,20,000 By Closing Stock 1,20,000 To Carriage Inwards 20,000 To Wages and Salaries 50,000 To Gross Profit c/d (Bal. Fig.) 50,000 4,80,000 4,80,000

Note: According to the Principle of Conservatism, closing stock is valued at Cost or Market Price, whichever is less. Hence, closing stock is valued at Market Price (i.e., Rs.1,20,000)

### Solution PQ 8

 Trading Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Purchases (Adjusted) 6,60,000 By Sales 7,44,000 To Freight and Carriage Inwards 3,600 To Wages 6,000 To Gross Profit c/d (Bal. Fig.) 74,400 7,44,000 7,44,000

Note :

1. Freight and Carriage Outwards are not a Direct Expense. Thus, it is not recorded in the trading Account.
2. Adjusted Purchases = Opening Stock + Net Purchases - Closing Stock

Therefore, Closing Stock (Rs.50,400) is not considered while preparing Trading Account.

### Solution PQ 9

 Trading Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Opening Stock By Sales 7,00,000 Raw Materials 80,000 Less: Return Inwards (6,000) 6,94,000 Finished Goods 1,40,000 2,20,000 By Closing Stock To Purchases 3,60,000 Raw Materials 70,000 Less: Return Outwards (10,000) 3,50,000 Work-in-progress 20,000 To Freight Inwards 20,000 Finished Goods 1,10,000 2,00,000 To Wages 1,30,000 To Factory Expenses 90,000 To Gross Profit c/d (Bal. Fig.) 84,000 8,94,000 8,94,000

Note :

Freight Outwards are not a Direct Expense. Thus, it is not recorded in the Trading Account.

### Solution PQ 10

 Trading Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Purchases (Adjusted) 5,50,000 By Sales 6,25,000 To Freight and Carriage Inwards 3,000 To Wages 7,000 To Gross Profit c/d (Bal. Fig.) 65,000 6,25,000 6,25,000

Note :

1. Freight and Carriage Outwards are not a Direct Expense. Thus, it is not recorded in the Trading Account.
2. Adjusted Purchases = Opening Stock + Net Purchases - Closing Stock

Therefore, Closing Stock (Rs.50,000) is not considered while preparing Trading Account.

## Financial Statements of Sole Proprietorship Exercise 18.64

### Solution PQ 11

Calculation of Operating Profit

Operating Profit = Net Profit - Rent Received - Gain of sales of Machine + Interest on Loan + Donation

= 1,00,000 - 10,000 - 15,000 + 20,000 + 2,000 = Rs.97,000

Operating Profit = Rs.97,000

### Solution PQ 12

 Profit and Loss Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Salaries and Wages 30,000 By Gross Profit b/d (6,50,000 × 45%) 2,92,500 To Commission Paid 2,000 By Rent Received 17,000 To Postage and Telegram 1,500 By Interest on Investments 15,000 To Insurance 3,000 To Interest Paid 4,000 To Carriage Outwards 5,000 To Advertising 10,000 To Discount allowed 18,000 To Bad debts 9,000 To Brokerage Paid 950 To Net Profit c/d (Bal. Fig.) 2,41,050 3,24,500 3,24,500

### Solution PQ 13

 Profit and Loss Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Rent 5,000 By Gross Profit b/d 1,20,000 To Salary 35,000 By Interest Received 8,000 To Commission Paid 19,000 By Discount Received 6,000 To Interest on Loan 5,000 To Advertisement 8,000 To Printing and Stationery 4,000 To Legal Charges 10,000 To Bad Debts 2,000 To Loss by Fire 6,000 To Depreciation 4,000 To Net Profit c/d (Bal. Fig.) 36,000 1,34,000 1,34,000

### Solution PQ 14

 Balance Sheet as on March 31, 2019 Liabilities Rs. Assets Rs. Capital 4,00,000 Plant 1,00,000 Less: Drawings (44,000) Furniture 37,000 Add: Net Profit 16,600 3,72,600 Closing Stock 1,48,000 General Reserve 10,000 Debtors 64,000 Creditors 42,000 Cash at Bank 72,000 Cash in Hand 3,600 4,24,600 4,24,600

## Financial Statements of Sole Proprietorship Exercise 18.65

### Solution PQ 15

 (I) Balance sheet in Order of permanence Balance Sheet as on March 31, 2019 Liabilities Rs. Assets Rs. Capital 1,80,000 Goodwill 20,000 Less: Drawings (30,000) Land and Building 60,000 Add: Net Profit 92,600 2,42,600 Plant and Machinery 40,000 Sundry Creditors 63,000 Furniture 16,000 Bills Payable 10,700 Investment 20,000 Liabilities for Expenses 1,200 Closing Stock 80,000 Sundry Debtors 50,000 Less: Provision for Doubtful Debts (2,500) 47,500 Bills Receivable 13,000 Bank 20,000 Cash in Hand 1,000 3,17,500 3,17,500

 (II) Balance Sheet in Order of Liquidity Balance Sheet as on March 31, 2019 Liabilities Rs. Assets Rs. Liabilities for Expenses 1,200 Cash in Hand 1,000 Bills Payable 10,700 Bank 20,000 Sundry Creditors 63,000 Bills Receivable 13,000 Capital 1,80,000 Sundry Debtors 50,000 Less: Drawings (30,000) Less: Provision for Doubtful Debts (2,500) 47,500 Add: Net Profit 92,600 2,42,600 Closing Stock 80,000 Investment 20,000 Furniture 16,000 Plant and Machinery 40,000 Land and Building 60,000 Goodwill 20,000 3,17,500 3,17,500

### Solution PQ 16

i. Calculation of Fixed Asset

Fixed Assets =Land + Plant + Furniture + Goodwill

= 20,000 + 32,000 + 8,000 + 20,000 =Rs.80,000

ii. Calculation of Current Assets

Current Assets =Stock + Debtors + Prepaid Expenses

= 48,000 + 36,000 + 400 =Rs.84,400

iii. Calculation of Current Liabilities

Current Liabilities =Creditors + Expenses Accrued + Bank Overdraft + Interest on Loan

= 42,000 + 3,200 +4,800 + 1,000  = Rs.51,000

iv. Calculation of Working Capital

Working Capital = Current Assets - Current Liabilities

= 84,400 - 51,000 = Rs.33,400

### Solution PQ 17

 Financial Statements of Jagat Shah Trading Account For the year ended 31st March 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Opening Stock 1,00,000 By Sales 8,20,000 To Purchases 4,00,000 Less : Sales Return (10,000) 8,10,000 Less : Purchases Return (5,000) 3,95,000 By Closing Stock 2,00,000 To Wages 1,00,000 To Carriage Inwards 5,000 To Gross Profit c/d (Balancing Fig.) 4,10,000 10,10,000 10,10,000

 Profit and Loss Account For the year ended 31st March 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Salaries 60,000 By Gross Profit b/d 4,10,000 To General Expenses 20,000 To Rent 50,000 To Carriage outwards 20,000 To Advertising 20,000 To Net Profit c/d (Balancing Fig.) 2,40,000 4,10,000 4,10,000

 Balance sheet as on 31st March 2019 Liabilities Rs. Assets Rs. Capital 3,60,000 Fixed Assets Less : Drawings (40,000) Machinery 70,000 Add : Net Profit 2,40,000 5,60,000 Current Assets Current Liabilities Closing Stock 2,00,000 Creditors 50,000 Debtors 3,00,000 Cash 40,000 6,10,000 6,10,000

## Financial Statements of Sole Proprietorship Exercise 18.66

### Solution PQ 18

 Trading Account Dr. Cr. Particulars Rs. Particulars Rs. To Opening Stock 2,00,000 By Sales 14,50,000 To Purchases 9,50,000 By Closing Stock 30,000 To Wages 5,00,000 By Gross Loss c/d (Balancing Fig.) 1,85,000 To Carriage 15,000 16,65,000 16,65,000

 Profit and Loss Account Dr. Cr. Particulars Rs. Particulars Rs. To Gross Loss b/d 1,85,000 To Rent 45,000 By Net Loss c/d (Balancing Fig.) 2,50,000 To Sundry Expenses 20,000 2,50,000 2,50,000

 Balance Sheet Liabilities Rs. Assets Rs. Capital 10,00,000 Fixed Assets Less : Drawings (90,000) Machinery 3,50,000 Less :Net Loss (2,50,000) 6,60,000 Current Assets Current Liabilities Closing Stock 30,000 Creditors 1,40,000 Debtors 2,70,000 Bank 1,50,000 8,00,000 8,00,000

### Solution PQ 19

 Financial Statement of Dass Trading Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Stock 1,76,000 To Purchase 6,83,000 By Sales 9,20,000 Less : Return Outwards (22,000) 6,61,000 Less: Return Inwards (13,000) 9,07,000 To Carriage Inwards 24,000 By Closing Stock 2,40,000 To Gross Profit c/d (Balancing Fig.) 2,86,000 11,47,000 11,47,000

 Profit and Loss Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Rent, Rates and Taxes 22,000 By Gross Profit b/d 2,86,000 To Discount 37,500 To Printing 7,200 To Insurance 5,000 To Travelling Expenses 14,000 To Postage and telegram 6,200 To Miscellaneous Expenses 9,000 To Bad Debts 4,000 To Net Profit c/d (Balancing Fig.) 1,81,100 2,86,000 2,86,000

 Balance Sheet as on March 31, 2019 Liabilities Rs. Assets Rs. Capital 5,25,000 Fixed Assets Less : Drawings (19,100) Business Premises 3,90,000 Add : Net Profit 1,81,100 6,87,000 Office Furniture 15,000 Loan from Sahil 50,000 Current Assets Current Liabilities Closing Stock 2,40,000 Creditors 1,28,000 Debtors 2,20,000 8,65,000 8,65,000

### Solution PQ 20

 Financial Statement of Anand Trading Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Opening Stock 99,450 By Sales 7,81,820 To Purchases 6,20,920 By Closing Stock 1,43,000 To Wages 43,000 To Gross Profit c/d (Balancing Fig.) 1,61,450 9,24,820 9,24,820

 Profit and Loss Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Salaries 40,000 By Gross Profit b/d 1,61,450 To Discount 10,000 By Bad Debts Recovered 1,750 To Postage 2,730 To Selling Expenses 1,750 To Bad Debts 2,870 To Interest 12,950 To Insurance 4,170 To Net Profit c/d (Balancing Fig.) 88,730 1,63,200 1,63,200

 Balance Sheet As on March 31, 2019 Liabilities Rs. Assets Rs. Capital 3,60,000 Fixed Assets Add :Net Profit 88,730 4,48,730 Building 2,37,800 Loan 1,20,000 Machinery 1,00,000 Current Liabilities Fixtures and fittings 1,61,550 Creditors 87,200 Current Assets Bills payable 25,270 Closing Stock 1,43,000 Debtors 38,850 6,81,200 6,81,200

## Financial Statements of Sole Proprietorship Exercise 18.67

### Solution PQ 21

 Financial Statements of M/s Raja and Sons Trading Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Opening Stock 29,500 By Sales 1,47,200 To Purchases 84,170 Less : Sales Return (4,700) 1,42,500 Less : Purchases Return (3,900) 80,270 By Closing Stock 36,200 To Carriage 2,200 To Wages 45,000 To Gross Profit c/d (Balancing Fig.) 21,730 1,78,700 1,78,700

 Profit and Loss Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Salary 5,400 By Gross Profit b/d 21,730 To Insurance 2,500 By Rent Received 3,150 To Trade Expenses 4,900 To Net Profit c/d (Balancing Fig.) 12,080 24,880 24,880

 Balance Sheet as on March 31, 2019 Liabilities Rs. Assets Rs. Capital 58,900 Fixed Assets Add : Net Profit 12,080 Machinery 12,000 Less : Drawings (2,100) 68,880 Current Assets Current Liabilities Closing Stock 36,200 Creditors 4,200 Debtors 38,080 Bank Overdraft 9,700 Cash 400 Bills Payable 3,900 86,680 86,680

### Solution PQ 22

 Financial Statements of M/s Mangal and Sons Trading Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Opening Stock 12,500 By Sales 70,000 To Purchases 37,500 Less : Return Inwards (1,300) 68,700 Less : Return Outwards (500) 37,000 By Closing Stock 15,000 To Carriage 1,450 To Gross Profit c/d (Balancing Fig.) 32,750 83,700 83,700

 Profit and Loss Account for the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Salary 3,850 By Gross Profit b/d 32,750 To Insurance 200 To Commission 750 To Interest 900 To Printing 250 To Rent and Taxes 1,300 To Net Profit c/d (Balancing Fig.) 25,500 32,750 32,750

 Balance Sheet as on March 31, 2019 Liabilities Rs. Assets Rs. Capital 7,100 Fixed Assets Add : Net Profit 25,500 32,600 Furniture 1,000 Current Liabilities Current Assets Creditors 20,000 Closing Stock 15,000 Bills Payable 3,150 Debtors 32,500 Bills Receivable 2,000 Bank 5,250 55,750 55,750

### Solution PQ 23

 Trading Account Dr. Cr. Particulars Rs. Particulars Rs. To Opening Stock 2,00000 By Sales 14,50,000 To Purchases 9,50,000 By Closing Stock 60,000 To Wages 5,00000 By Gross Loss c/d (Balancing Fig.) 1,55,000 To Carriage 15,000 16,65,000 16,65,000

 Profit and Loss Account Dr. Cr. Particulars Rs. Particulars Rs. To Gross Loss b/d 1,55,000 By Commission 10,000 To Rent 45,000 By Net Loss c/d (Balancing Fig.) 2,20,000 To Bad Debts 10,000 To Sundry Expenses 20,000 2,30,000 2,30,000

 Balance Sheet Liabilities Rs. Assets Rs. Capital 10,00,000 Fixed Assets Less : Net Loss (2,20,000) Machinery 2,00,000 Less : Drawings (90,000) 6,90,000 Building 1,50,000 Current Liabilities Current Assets Creditors 1,40,000 Closing Stock 60,000 Debtors 2,70,000 Bank 1,50,000 8,30,000 8,30,000

Note:  According to the Principle of Conservatism, closing stock is valued as whichever is less. Hence, closing stock is valued at (i.e., Rs.60,000)

### Solution PQ 24

 Financial Statements of Hari and Co. Trading Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Opening Stock 1,65,000 By Sales 6,35,000 To Purchases 4,68,500 Less: Return Inwards (4,500) 6,30,500 Less : Return outwards (1,100) 4,67,400 By Closing Stock 1,82,100 To Wages 25,000 To Carriage Inwards 8,500 To Gross Profit c/d (Balancing Fig.) 1,46,700 8,12,600 8,12,600

 Profit and Loss Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To General Expenses 8,000 By Gross Profit b/d 1,46,700 To Rent Paid 37,100 By interest on Investments 1,000 To Electricity Charges 1,900 To Salaries 11,100 To Discount Allowed 3,000 To Net Profit c/d (Balancing Fig.) 86,600 1,47,700 1,47,700

 Balance Sheet as on March 31, 2019 Liabilities Rs. Assets Rs. Capital 3,50,000 Fixed Assets Add : Net Profit 86,600 Building 1,87,500 Less : Drawings (6,500) 4,30,100 Machinery 92,500 Current Liabilities Investment 35,000 Sundry Creditors 1,00,000 Current Assets Bills Payable 50,000 Closing Stock 1,82,100 Debtors 35,000 Cash at bank 30,000 Cash in Hand 18,000 5,80,100 5,80,100

## Financial Statements of Sole Proprietorship Exercise 18.68

### Solution PQ 25

 Trading Account for the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Opening Stock 20,000 By Sales 1,64,000 To Purchases 1,05,000 Less : Return Inwards (4,000) 1,60,000 Less : Return Outwards (5,000) 1,00,000 By Closing Stock 14,500 To Wages 50,000 By Gross Loss c/d (Balancing Fig.) 5,000 To Manufacturing Expenses 8,000 To Carriage 1,500 1,79,500 1,79,500

 Profit and Loss Account for the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Gross Loss b/d 5,000 By Net Loss c/d (Balancing Fig.) 18,500 To Repairs 500 To Rent 4,000 To Trade Expenses 7,000 To Bad debts 2,000 18,500 18,500

 Balance Sheet as on March 31, 2019 Liabilities Rs. Assets Rs. Capital 1,00,000 Fixed Assets Less : Life Insurance Premium (12,000) Plant and Machinery 40,000 Less : Net Loss (18,500) 69,500 Current Assets Current Liabilities Closing Stock 14,500 Sundry Creditors 12,000 Sundry Debtors 24,000 Bills Payable 7,000 Bank 10,000 88,500 88,500

### Solution PQ 26

 Financial Statement of Chatter Sen Trading Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Opening Stock 40,000 By Sales 1,27,000 To Purchases 58,000 Less : Sales Return (1,000) 1,26,000 Less : Purchases Return (1,275) 56,725 By Closing Stock 35,000 To Wages 10,000 To Freight Inwards 750 To Gross Profit c/d (Balancing Fig.) 53,525 1,61,000 1,61,000

 Profit and Loss Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Discount Allowed 350 By Gross Profit b/d 53,525 To Bank Charges 75 By Discount Received 800 To Salaries 6,800 To Freight Outwards 1,200 To Rent Rates and Taxes 2,000 To Advertisement 2,000 To Net Profit c/d (Balancing Fig.) 41,900 54,325 54,325

 Balance Sheet as on March 31, 2019 Liabilities Rs. Assets Rs. Capital 1,10,000 Fixed Assets Add : Net Profit 41,900 1,51,900 Plant and Machinery 90,000 Current Assets Sundry Creditors 20,000 Closing Stock 35,000 Loan 5,000 Sundry Debtors 45,000 Cash at Bank 6,900 1,76,900 1,76,900

### Solution PQ 27

 Trading Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Opening Stock 34,600 By Sales 1,54,500 To Purchases 55,750 Less : Sales Return (2,000) 1,52,500 Less : Purchases Return (1,250) 54,500 By Closing Stock 32,500 To Gross Profit c/d (Balancing Fig.) 95,900 1,85,000 1,85,000

 Profit and Loss Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Taxes and Insurance 12,500 By Gross Profit b/d 95,900 To General Charges 7,820 By Commission 1,750 To Salaries 33,000 To Bad debts 1,250 To Advertising 4,500 To Interest 1,180 To Net Profit c/d (Balancing Fig.) 37,400 97,650 97,650

 Balance Sheet as on March 31, 2019 Liabilities Rs. Assets Rs. Capital 1,28,900 Fixed Assets Add : Net Profit 37,400 1,66,300 Building 75,900 Current Liabilities Furniture and Fittings 6,400 Sundry Creditors 25,000 Motor Vehicle 62,500 Bank Overdraft 28,500 Current Assets Bills Payable 2,000 Closing Stock 32,500 Sundry Debtors 38,000 Cash in Hand 6,500 2,21,800 2,21,800

## Financial Statements of Sole Proprietorship Exercise 18.69

### Solution PQ 28

 Trading Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Opening Stock 1,62,000 By Sales 6,53,600 To Purchases 4,70,000 By Closing Stock 2,35,000 To Power 22,400 To Wages 72,000 To Gross Profit c/d (Balancing Fig.) 1,62,200 8,88,600 8,88,600

 Profit and Loss Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To General Expenses 25,000 By Gross Profit b/d 1,62,200 To Insurance 13,150 By Commission 13,200 To Car Expenses 18,000 To Charity 1,050 To Bad Debts 5,500 To Net Profit c/d (Balancing Fig.) 1,12,700 1,75,400 1,75,400

 Balance Sheet as on March 31, 2019 Liabilities Rs. Assets Rs. Capital 2,45,000 Building 1,10,000 Add : Net Profit 1,12,700 Machinery 93,400 Less: Life Insurance Premium (5,000) Motor Car 20,000 Less: Drawing (15,000) 3,37,700 Closing Stock 2,35,000 Reserve Fund 9,000 Debtors 62,800 Loan 78,800 Cash 800 Bank Overdraft 33,000 Creditors 25,000 Bills Payable 38,500 5,22,000 5,22,000

Setting-off GST:

15,000 + 15,000 = NIL

### Solution PQ 29

 Trading Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Purchases 56,500 By Sales 1,00,700 To Wages 26,000 By Closing Stock 88,500 To Gross Profit c/d (Balancing Fig.) 1,06,700 1,89,200 1,89,200

 Profit and Loss Account For the year ended March 31, 2019 Dr. Cr. Particulars Rs. Particulars Rs. To Salaries and Wages 41,600 By Gross Profit b/d 1,06,700 To Net Profit c/d (Balancing Fig.) 65,100 1,06,700 1,06,700

 Balance Sheet as on March 31, 2019 Liabilities Rs. Assets Rs. Capital 2,23,100 Building 1,60,000 Add : Net Profit 65,100 Machinery 16,000 Less: Income Tax (2,000) Closing Stock 88,500 Less: Drawing (500) 2,85,700 Debtors 38,700 Creditors 12,500 Output CGST 2,500 Output SGST 2,500 3,03,200 3,03,200

Setting-off GST:

 GST Input Output Total (Input - Output) CGST 10,000 12,500 (2,500) SGST 10,000 12,500 (2,500)