Following Trial Balance is extracted from the books of Raman as at 31st March, 2019: The following adjustments are to be made : (i) Stock in Hand on 31st March, 2019 at cost was Rs 3,50,000,whereas its Net Realisable value (Market Value) was Rs 3,25,000. (ii) Depreciate Building @5% Furniture and Fittings @10% and Motor Vehicles @20%. (iii) Rs 8,500 is due for interest on Bank Loan. (iv) Salaries Rs 30,000 and Taxes Rs 11,000are outstanding . (v) Insurance amounting to Rs 10,000 is prepaid. CGST and SGST is paid @6% each. (vi) One- third of the commission received is in respect of work to be done next year IGST is charged @12%. (vii) Write off further Rs 10,000 as Bad Debts and Provision for Doubtful is to be made equal to 5% on Sundry Debtors. Prepare Trading and Profit and Loss account for the year ended 31st March, 2019 and Balance Sheet as at that date.

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

1.	Following Trial Balance is extracted from the books of Raman as at 31st March, 2019: The following adjustments are to be made : (i) Stock in Hand on 31st March, 2019 at cost was Rs 3,50,000,whereas its Net Realisable value (Market Value) was Rs 3,25,000. (ii) Depreciate Building @5% Furniture and Fittings @10% and Motor Vehicles @20%. (iii) Rs 8,500 is due for interest on Bank Loan. (iv) Salaries Rs 30,000 and Taxes Rs 11,000are outstanding . (v) Insurance amounting to Rs 10,000 is prepaid. CGST and SGST is paid @6% each. (vi) One- third of the commission received is in respect of work to be done next year IGST is charged @12%. (vii) Write off further Rs 10,000 as Bad Debts and Provision for Doubtful is to be made equal to 5% on Sundry Debtors. Prepare Trading and Profit and Loss account for the year ended 31st March, 2019 and Balance Sheet as at that date.
Answer» <html><body><p></p>Solution :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_C19_S01_013_S01.png" width="80%"/> <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/TSG_ACC_XI_C19_S01_013_S02.png" width="80%"/> <br/> Notes : <br/> 1. Closing Stock will be <a href="https://interviewquestions.tuteehub.com/tag/taken-659096" style="font-weight:bold;" target="_blank" title="Click to know more about TAKEN">TAKEN</a> at Rs 3,25,000, it being <a href="https://interviewquestions.tuteehub.com/tag/lower-1080637" style="font-weight:bold;" target="_blank" title="Click to know more about LOWER">LOWER</a> than its cost following the Prudence concept. <br/> 2. GST <a href="https://interviewquestions.tuteehub.com/tag/paid-1145567" style="font-weight:bold;" target="_blank" title="Click to know more about PAID">PAID</a> (Input GST) on <a href="https://interviewquestions.tuteehub.com/tag/prepaid-2227976" style="font-weight:bold;" target="_blank" title="Click to know more about PREPAID">PREPAID</a> Insurance is not to <a href="https://interviewquestions.tuteehub.com/tag/adjusted-7661905" style="font-weight:bold;" target="_blank" title="Click to know more about ADJUSTED">ADJUSTED</a>. GST Charged (Output GST on Commission Received in Advance is not to be adjusted.</body></html>

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