Question.

6
(a)
On 1st July, 2018 G drew a bill for Rs. 80,000 for 3 months on H for mutual accommodation.
He accepted the bill of exchange. G had purchased goods worth Rs. 81,000 from J on the
same date. G endorsed H's acceptance to J in full settlement.
On 1st September, 2018 J purchased goods worth Rs. 90,000 from H. /endorsed the bill of
exchange received from G to H and paid Rs. 9,000 in full settlement of the amount due to H.
On 1st October, 2018 H purchased goods worth Rs. 1,00,000 from G. He paid the amount due
to G by cheque.
Give the necessary Journal Entries in the books of H. (10 Marks)
(b)
The Profit and Loss Account of Hanuman showed a net profit of Rs. 60,000, after considering
the closing stock of Rs. 37,500 on 31st March, 2018. Subsequently the following information
was obtained from scrutiny of the books:
i. Purchases for the year included Rs. 1,500 paid for new electric fittings for the shop.
ii. Hanuman gave away goods valued at Rs. 4,000 as free samples for which no entry was
made in the books of accounts.
iii. Invoices for goods amounting to Rs. 25,000 have been entered on 27th March, 2018, but
the goods were not included in stock.
iv. In March, 2018 goods of Rs. 20,000 sold and delivered were taken in the Sales for April,
2018.
v. Goods costing Rs. 7,500 were sent on sale or return in March, 2018 at a margin of Profit
of 33-1/3% on cost. Though approval was given in April, 2018 these were taken as sales
for March, 2018.
Calculate the value of stock on 31st March, 2018 and the adjusted Net Profit for the year ended
on that date. (10 Marks)