Page 175 - ISCDEBK-XI

20.8 Double Entry Book Keeping—ISC XI

BALANCE SHEET OF SAURAB as at 31st March, 2022
Liabilities ` Assets `
Capital A/c: Fixed Assets:
Opening Balance 54,050 Furniture:
Add: Net Profit 7,015 Opening Balance 900
61,065 Add: Wrongly added in Purchases 1,000
Less: Drawings 5,000 56,065 1,900
Loans: Less: Depreciation 150 1,750
Loan from Dena Bank: Investments 2,500
Opening Balance 5,000 Current Assets:
Add: Further taken Closing Stock 39,300
on 31st March 5,000 10,000 Sundry Debtors 12,000
Interest Outstanding on Bank Loan 300 Less: Returns not entered 1,500
Current Liabilities: Adjusted in Creditors
Sundry Creditors 7,400 (Note) 1,000
Less: Adjusted in Debtors (Note) 1,000 6,400 9,500
Less: Provision for
Doubtful Debts 475 9,025
Interest Receivable 1,000
10% Deposits 15,000
Cash at Bank 4,000
Cash in Hand 190
72,765 72,765

Note: Sometimes, a person may be a debtor as well as creditor (in question Rumant is debtor as well as creditor) for
the business. When there is a self-balancing system, there will be two accounts of such a person, one in the
Debtor’s Ledger and another in the Creditor’s Ledger. In such a case, the account which has a smaller balance
is transferred to the account which has bigger balance by passing the following entry:
Sundry Creditors A/c ...Dr.
To Sundry Debtors A/c
While calculating the Provision for Doubtful Debts this should be taken into consideration.
Illustration 4.
Following is the Trial Balance of Hari as at 31st March, 2022:
Particulars Dr. (`) Cr. (`)
Hari’s Capital A/c .................................................................................................................................................................... ... 76,690
Stock on 1st April, 2021 ....................................................................................................................................................... 46,800 ...
Sales ........................................................................................................................................................................................... ... 3,89,600
Returns Inward ....................................................................................................................................................................... 8,600 ...
Purchases ................................................................................................................................................................................. 3,21,700 ...
Returns Outward ................................................................................................................................................................... ... 5,800
Carriage Inwards .................................................................................................................................................................... 19,600 ...
Rent and Taxes ........................................................................................................................................................................ 4,700 ...
Salaries and Wages ............................................................................................................................................................... 9,300 ...
Sundry Debtors ...................................................................................................................................................................... 24,000 ...
Sundry Creditors .................................................................................................................................................................... ... 14,800
Bank Loan @ 14% p.a. .......................................................................................................................................................... ... 20,000
Bank Interest .......................................................................................................................................................................... 1,100 ...
Printing and Stationery Expenses ................................................................................................................................... 14,400 ...
Bank Balance ........................................................................................................................................................................... 8,000 ...
Discount Earned .................................................................................................................................................................... ... 4,440
Furniture and Fittings .......................................................................................................................................................... 5,000 ...
Discount Allowed .................................................................................................................................................................. 1,800 ...
General Expenses .................................................................................................................................................................. 11,450 ...
Insurance .................................................................................................................................................................................. 1,300 ...
Postage and Telegrams Expenses .................................................................................................................................... 2,330 ...
Cash Balance ........................................................................................................................................................................... 380 ...
Travelling Expenses .............................................................................................................................................................. 870 ...
Drawings................................................................................................................................................................................... 30,000 ...
Total 5,11,330 5,11,330