Page 140 - DEBK11

Financial Statements of Sole Proprietorship ... 18.7

Solution:

Dr. TRADING AND PROFIT & LOSS ACCOUNT OF HARI for the year ended 31st March, 2025 Cr.
Particulars ` Particulars `
To Opening Stock 96,000 By Sales less Returns 2,49,000
To Purchases less Returns 1,18,500 By Closing Stock 35,000
To Wages and Salaries 32,000
To Commission on Purchases 2,000
To Freight 3,000
To Gross Profit c/d 32,500
2,84,000 2,84,000
To Trade Expenses 200 By Gross Profit b/d 32,500
To Rent 2,000 By Discount on Purchases 4,000
To Bad Debts 5,000
To Repairs to Plant 1,600
To Net Profit transferred to Capital A/c 27,700
36,500 36,500

BALANCE SHEET OF HARI
as at 31st March, 2025
Liabilities ` Assets `

Capital: Plant 20,000
Opening Balance 50,000 Stock at the end 35,000
Add: Net Profit 27,700 Debtors 46,000
77,700 Cash in Hand and at Bank 2,000
Less: Income Tax 5,500
Drawings 6,500 12,000 65,700
Loan 9,000
Creditors 28,300
1,03,000 1,03,000

Note: Setting-off GST:
IGST (`) CGST (`) SGST (`)
Input GST 5,000 15,000 15,000
Less: Output GST (15,000) (10,000) (10,000)
Balance (10,000) 5,000 5,000
Less: Set-off against Output IGST 10,000 (5,000) (5,000)
Balance ... ... ...