Page 207 - ISCDEBK-XI

20.40 Double Entry Book Keeping—ISC XI

3. Input IGST shall be first adjusted against Output IGST. Thereafter, balance in Input CGST ` 15,000 shall be adjusted
against Output IGST and balance in Input SGST shall be adjusted against Output IGST leaving a balance of
` 5,000.
Illustration 19.
Following Trial Balance was extracted from the books of Mohan on 31st March, 2022:

Particulars Debit Credit
Balances Balances
` `
Capital ............................................................................................................................................ ... 3,00,000
Drawings ............................................................................................................................................ 50,000 ...
Debtors ............................................................................................................................................ 2,00,000 ...
Creditors ............................................................................................................................................ ... 1,00,000
Loan ............................................................................................................................................ ... 95,000
Interest on Loan ............................................................................................................................................ 3,000 ...
Cash ............................................................................................................................................ 20,000 ...
Provision for Doubtful Debts .................................................................................................................................... ... 7,000
Stock on 1st April, 2021 ............................................................................................................................................ 68,000 ...
Motor Vehicles ............................................................................................................................................ 1,00,000 ...
Bank ............................................................................................................................................ 35,000 ...
Land and Building ............................................................................................................................................ 1,20,000 ...
Bad Debts ............................................................................................................................................ 5,000 ...
Purchases ............................................................................................................................................ 6,60,000 ...
Sales ............................................................................................................................................ ... 11,00,000
Purchases Return ............................................................................................................................................ ... 15,000
Sales Return ............................................................................................................................................ 80,000 ...
Carriage Outwards ............................................................................................................................................ 25,000 ...
Carriage Inwards ............................................................................................................................................ 30,000 ...
Salaries ............................................................................................................................................ 90,000 ...
Rent and Insurance ............................................................................................................................................ 30,000 ...
Advertising ............................................................................................................................................ 35,000 ...
Discount Received ............................................................................................................................................ ... 5,000
General Expenses ............................................................................................................................................ 34,000 ...
Bills Receivable ............................................................................................................................................ 60,000 ...
Bills Payable ............................................................................................................................................ ... 20,000
Rent Received ............................................................................................................................................ ... 3,000
Total 16,45,000 16,45,000

Prepare Trading and Profit & Loss Account for the year ended 31st March, 2022 and
Balance Sheet as at that date after taking into account the following:
(a) Stock as on 31st March, 2022 was valued at ` 70,000.
(b) All debtors are considered good for recovery.
(c) Depreciate Motor Vehicles by 20%.