Page 160 - debkxi

19.20 Double Entry Book Keeping—CBSE XI

Sundry Debtors .............................................................................................................................. 46,500 ...
Sundry Creditors .............................................................................................................................. ... 44,000
Cash in Hand .............................................................................................................................. 52,000 ...
Cash at Bank .............................................................................................................................. 3,000 ...
Input CGST .............................................................................................................................. 8,000 ...
Input SGST .............................................................................................................................. 8,000 ...
Output CGST .............................................................................................................................. ... 7,000
Output SGST .............................................................................................................................. ... 7,000
Output IGST .............................................................................................................................. ... 3,500

Total 7,82,500 7,82,500
Adjustments:
(i) Stock on 31st March, 2024 was valued at ` 55,000.
(ii) A new machinery was installed during the year purchased for ` 22,000 but
it was not recorded in the books as no payment was made for it. Wages
` 1,500 paid for its installation have been debited to Wages Account.

(iii) Depreciate Plant and Machinery by 20% and Freehold property by 15%. Depreciation
is not to be charged on the machinery purchased during the year.

(iv) Loose tools were valued at ` 12,000 on 31st March, 2024.
(v) Write off ` 500 as Further Bad Debts.
(vi) Maintain Provision of 10% on Sundry Debtors for Doubtful Debts.

(vii) The Manager is entitled to a commission of 10% on the net profits after charging such
commission.
[Ans.: Gross Profit—` 2,40,500; Net Profit—` 1,32,864; Balance Sheet Total—` 4,05,650.]
[Hint: Manager’s Commission = 10/110 × ` 1,46,150 = ` 13,286.]

4. Following is the Trial Balance of K on 31st March, 2024:
Particulars Dr. Balances Cr. Balances
` `
Capital ................................................................................................................ ... 8,00,000
Drawings ................................................................................................................ 60,000 ...
Opening Stock ................................................................................................................ 75,000 ...
Purchases ................................................................................................................ 15,95,000 ...
Freight on Purchases ................................................................................................................ 25,000 ...
Wages (11 months up to 28th Feb., 2024) ...................................................................................................... 66,000 ...
Sales ................................................................................................................ ... 23,10,000
Salaries ................................................................................................................ 1,40,000 ...
Postages and Telephones ................................................................................................................ 12,000 ...
Printing and Stationery ................................................................................................................ 18,000 ...