Following Trial Balance is extracted from the books of Nikesh as at 31st March, 2019: Prepare Tradingand Profit and Loss Account for the year ended 31st March, 2019 and balance sheet as at that date after taking into account the following adjustments : (i)Stock on 31st March, 2019 was valued at cost at rs 14,000. Its Net Realisable value (Market Value) was 15,000. (ii) Plant and Machinery includes a machine purchasedfor 20,000 on 1st October, 2018. (iii) Outstanding liabilities for Wages rs 1,200 and Salaries rs 2,800. These are not subject to GST. (iv) Depreciation @ 5% p.a. on Written Down value is to be provided on fixed assests. (v) Write off bad debts rs 1,500. (vi) Insurance premium paid in advance rs 400. (vii) Accrued commission rs 500. CGST and SGST is levied @ 6% each.

Following Trial Balance is extracted from the books of Nikesh as at 31

1.	Following Trial Balance is extracted from the books of Nikesh as at 31st March, 2019: Prepare Tradingand Profit and Loss Account for the year ended 31st March, 2019 and balance sheet as at that date after taking into account the following adjustments : (i)Stock on 31st March, 2019 was valued at cost at rs 14,000. Its Net Realisable value (Market Value) was 15,000. (ii) Plant and Machinery includes a machine purchasedfor 20,000 on 1st October, 2018. (iii) Outstanding liabilities for Wages rs 1,200 and Salaries rs 2,800. These are not subject to GST. (iv) Depreciation @ 5% p.a. on Written Down value is to be provided on fixed assests. (v) Write off bad debts rs 1,500. (vi) Insurance premium paid in advance rs 400. (vii) Accrued commission rs 500. CGST and SGST is levied @ 6% each.
Answer» <html><body><p></p>Solution :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_C19_S01_005_S01.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_C19_S01_005_S02.png" width="80%"/><br/> ``Closing stock is valued at rs 14,000 being than its Net <a href="https://interviewquestions.tuteehub.com/tag/realisable-7708686" style="font-weight:bold;" target="_blank" title="Click to know more about REALISABLE">REALISABLE</a> Value (Market value) following the <a href="https://interviewquestions.tuteehub.com/tag/prudence-1171261" style="font-weight:bold;" target="_blank" title="Click to know more about PRUDENCE">PRUDENCE</a> <a href="https://interviewquestions.tuteehub.com/tag/concept-928138" style="font-weight:bold;" target="_blank" title="Click to know more about CONCEPT">CONCEPT</a>. <br/> ``Depreciation on <a href="https://interviewquestions.tuteehub.com/tag/plant-1155789" style="font-weight:bold;" target="_blank" title="Click to know more about PLANT">PLANT</a> and Mechinery `@5%` p.a.: <br/> On rs 1,20,000 `(rs 1,20,000xx5//100)` <br/> On rs 20,000(for six months i.e., rs `20,000xx5//100xx6//12`) `{:("Rs"),(<a href="https://interviewquestions.tuteehub.com/tag/6-327005" style="font-weight:bold;" target="_blank" title="Click to know more about 6">6</a>","000),(" "500),(ululbar(" 6,500")):}` <br/><img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_C19_S01_005_S03.png" width="80%"/></body></html>

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