Question 41 Chapter No 16 – Class 11 Unimax 

Question 41 Chapter No 16 – Class 11 Unimax 

From the following Trial Balance of Mr. A prepare Trading and Profit & Loss Account for the year ended 31st March, 2020 and a balance sheet as on that date

Trial balance

Debit balance	₹	Credit balance	₹
Drawings	5,275	Capital	59,700
Bills Receivable	4,750	Loan at 8% on 1.4.2019	10,000
Machinery	14,400	Commission received	2,820
Debtors (including X for dishonored bills of ₹ 1,000)	30,000	Creditors	29,815
Wages	20,485	Sale	1,78,215
Returns inwards	2,390
Purchases	1,28,295
Rent	2,810
Stock 1.4.2019	44,840
Salaries	5,500
Travelling expenses	945
Insurance	200
Cash	9,750
Repairs	1,685
Interest on loan	500
Discount allowed	2,435
Bad debts	1,810
Furniture	4,480
	2,80,550		2,80,550

The following adjustment are to be made:
(1) Stock in the shop on 31st March 2020 was ₹ 64,480.
(2) Half the amount of X ‘s bill is irrecoverable.
(3) Create a provision of 5% on the debtors.
(4) Wages include ₹ 600 for erection of new machinery.
(5) Depreciation machinery by 5% and furniture by 10%.
(6) Commission include ₹ 300 being commission received in advance.

The solution of Question 41 Chapter No 16 – Class 11 Unimax 

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

Particulars		Amount	Particulars		Amount
To Opening stock		44,840	By sales	1,78,215
To purchases		1,28,295	Less: Returns	2,390	1,75,825
To Wages	20,485		By Closing stock		64,480
Less: Machinery wages	600	19,885
To Gross Profit		47,285
(transferred to P & L A/c)
		2,40,305			2,40,305
To Rent		2,180	By Gross Profit b/d		47,285
To Salaries		5,500	By Commission received	2,820
To Travelling expenses		945	Less: Advance commission	300	2,520
To Insurance		200
To Repairs		1,685
To Interest on loan	500
Add: O/s interest	300	800
To Discount allowed		2,435
To Bad debts	1,810
Add: Provision on debtors	1,950	3,760
To Dep. Machinery		750
To Dep. On Furniture		448
To Net Profit (Transferred to capital)		30,472
		49,805			49,805

                                                             Balance Sheet of Mr. A
                                                             AS 0n  31st March, 2020

Liabilities		Amount	Assets		Amount
Capital	59,700		Bills Receivable		4,750
Add: Net Profit	30,472		Machinery	14,400
Less: Drawings	5,275	84,897	Add: Wages	600
Loan		10,000	Less: Depreciation	750	14,250
Creditors		29,815	Cash		9,750
Advance commission		300	Furniture	4,480
Outstanding interest		300	Less: Depreciation	448	4,032
			Closing stock		64,480
			Debtors	30,000
			Less: further bad debts	500
			Less: New reserve	1,450	28,050
		1,25,312			1,25,312