Following balances were extracted from the books of Modern Traders on 31st March, 2018:
Prepare Profit and Loss Account for the year ended 31st March, 2018 and the Balance Sheet as at that date giving effect to the following:
(a) Closing Stock was Rs. 1,50,000.
(b) Wages Outstanding were Rs. 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 Straight Line Method.
(e) Sundry Creditors include Rs. 10,000 due to Nayak who is also included in Sundry Debtors at Rs. 15,000.
(f) New furniture for Rs. 12,000 was purchased on 1st April, 2017. Old furniture valued at Rs. 2,000 was exchanged and balance was paid by cheque. Purchase of furniture was recorded at the net value of furniture, i.e., Rs. 10,000. The firm had purchased this furniture paying IGST @ 18%.
(g) A fire occurred on 27th March, 2018 destroying stock costing Rs 10,000, which were purchased paying CGST and SGST @ 9% each. Insurance company conveyed acceptance of claim of Rs. 7,500 on 10th April, 2018. Final accounts were prepared on 1st July, 2018.
