Question 18 Chapter 15 – Class 11 Unimax

Question 18 Chapter 15 – Class 11 Unimax

The Trial Balance shows the following balance as at 31.3.2020.

	₹		₹
Purchases	60,000	Capital account	1,13,075
Sales returns	2,000	Sales	1,27,500
Plant and machinery	90,000	Purchases return	1,275
Opening stock	40,000	Discount received	800
Discount allowed	350	Sundry creditors	25,000
Bank charges	100	Rent, Rates and Taxes	2,000
Sundry debtors	45,000	Advertisements	2,000
Salaries	7,000	Cash at bank	7,000
Wages	10,000
Freight inward	1,200
Freight outward	1,200

Closing stock was valued at ₹ 35,000
Required: prepare Trading and Profit & Loss account for the year ended 31.3.2020 and balance sheet as on that date.

The solution of Question 18 Chapter 15 – Class 11 Unimax

Trading A/c, Profit & Loss A/c for the year ended 31st March, 2020

Particular		Amount	Particular		Amount
To Purchases	60,000		By Sales	1,27,500
Less Returns	1,275	58,725	Less return	2,000	1,25,500
To Opening stock		40,000	By Closing stock		35,000
To Wages		10,000
To Freight outward		1,000
To Gross profit c/d (and transferred to profit & loss A/c)		50,775
		1,60,500			1,60,500
To Discount allowed		350	By Gross Profit b/d		50,775
To Bank charges		100	By Discount received		800
To Salaries		7,000
To Freight inward		1,000
To Rent, Rates and Taxes		2,000
To Advertisements		2,000
To Net profit c/d		38,925
(and transferred to capital A/c)
		51,575			51,575

Balance sheet as on31st March, 2020

Liabilities		Amount	Assets		Amount
Capital	1,13,075		Plant & Machinery		90,000
Add net profit	38,925	1,52,000	Sundry debtors		45,000
Sundry creditors		25,000	Cash at bank		7,000
			Closing stock		35,000
total		1,77,000			1,77,000