In the Books of Mr. Dilip
Trading Account for the year ended 31st March, 2024
Particulars Amount Particulars Amount
To Opening Inventory
To Purchases 12,90,000
Less: Returns (36,000)
To Freight Inwards
To Gross profit
3,30,000
12,54,000
1,20,000
16,86,000
By Sales 29,10,000
Less: Returns (60,000)
By Closing Inventory
28,50,000
5,40,000
33,90,000 33,90,000
Profit and Loss Account for the year ended 31st March, 2024
Particulars Amount Particulars Amount
To Depreciation
To Salaries
To Administration expenses
To Discount allowed
To Bad debts
To Net profit
1,57,500
6,30,000
4,50,000
57,000
15,000
4,03,500
By Gross profit
By Discount received
16,86,000
27,000
17,13,000 17,13,000
Balance Sheet as at 31st March, 2024
Liabilities Amount Assets Amount
Capital 19,50,000
Add: Net profit 4,03,500
Trade payables
Output IGST
23,53,500
5,70,000
6,000
Furniture 10,50,000
Less: Dep. (1,57,500)
Closing Inventory
Trade receivables
Investment in Govt
Securities
Cash in Hand and Cash at
Bank
8,92,500
5,40,000
6,30,000
3,00,000
5,67,000
Total 29,29,500 Total 29,29,500
Working Note:
Summary of Output and Input GST liability (as per trial balance)
OUTPUT GST INPUT GST
CGST 24,000 30,000
SGST 24,000 30,000
IGST 18,000
Output liability
(Tax head)
Tax Payable Paid through ITC Tax Liability
IGST CGST SGST
CGST 24,000 24,000
SGST 24,000 24,000
IGST 18,000 6,000 6,000 6,000
In the above solution, it is assumed that balance IGST liability of ₹ 6,000 (after utilising
CGST and SGST) is not paid off in cash.
Alternatively, it can also be assumed that the balance liability of ₹ 6,000 is paid off in cash.
Accordingly, Output IGST liability of ₹ 6,000 shall not appear under liability side of the
balance sheet and amount of cash at bank is reported as 5,61,000.