Page 205 - ISCDEBK-XI

20.38 Double Entry Book Keeping—ISC XI

Advanced Level Question

Illustration 18.
Following balances were extracted from the books of Modern Traders on 31st March, 2022:

Particulars ` Particulars `

Capital 8,50,000 Sales 12,00,000
Drawings 50,000 Postage and Courier 8,000
Plant and Machinery 4,00,000 Bad Debts 4,000
Accumulated Depreciation 90,000 Provision for Doubtful Debts 8,000
Stock on 1st April, 2021 1,50,000 Discount Received 4,000
Purchases 8,20,000 Rent Revenue 12,000
Sundry Debtors 2,06,000 Insurance 7,000
Furniture 50,000 Salaries 2,00,000
Freight Inwards 20,000 Wages 13,000
Carriage Outwards 5,000 Cash in Hand 62,000
Rent, Rates and Taxes 46,000 Cash at Bank 2,55,000
Printing and Stationery 8,000 General Reserve 50,000
Sundry Creditors 95,000 Input IGST 20,000
Input CGST 15,000 Output IGST 45,000
Input SGST 15,000
Prepare Profit & Loss Account for the year ended 31st March, 2022 and the Balance Sheet
as at that date giving effect to the following:
(a) Closing Stock valued at cost was ` 1,72,000 whereas its net realisable value (market
value) was ` 1,50,000.

(b) Wages Outstanding were ` 5,000.
(c) Provision for Doubtful Debts is to be maintained at 5% of Sundry Debtors.
(d) Depreciate Plant and Machinery by 10% and Furniture by 5% on Written Down
Value Method.

(e) Sundry Creditors include ` 10,000 due to Nayak who is also included in Sundry
Debtors at ` 15,000.
(f) New furniture for ` 12,000 was purchased on 1st April, 2021. Old furniture valued at
` 2,000 was exchanged and balance was paid by cheque. Purchase of furniture was
recorded at the net value of furniture, i.e., ` 10,000.
(g) A fire occurred on 27th March, 2022 destroying stock costing ` 10,000. Insurance
company conveyed acceptance of claim of ` 7,500 on 10th April, 2022. Final Accounts
were prepared on 1st July, 2022.