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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
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Question 45 Chapter No 16 – Class 11 Unimax
From the following Trial Balance of Swarna Singh as at 31st March, 2020, prepare Trading and profit and loss Account and balance sheet:
| Debit balance | ₹ | Credit balance | ₹ |
|---|---|---|---|
| Opening stock | 15,500 | Capital | 60,000 |
| Land and building | 35,000 | Loan form Mrs. Swarna Singh @9% p.a. | 30,000 |
| Machinery | 50,000 | Sundry creditors | 9,600 |
| Furniture and Fixtures | 5,000 | Purchases returns | 2,100 |
| Purchases | 1,06,000 | Sales | 2,07,300 |
| Salaries | 11,000 | Discount | 1,200 |
| General expenses | 2,500 | Output IGST | 10,000 |
| Rent | 3,000 | ||
| Postage expenses | 1,400 | ||
| Stationery | 1,300 | ||
| Wages | 26,000 | ||
| Freight on Purchases | 2,800 | ||
| Carriages on sales | 4,000 | ||
| Repairs | 4,500 | ||
| Bad debts | 600 | ||
| Cash in hand | 4,100 | ||
| Cash in bank | 6,400 | ||
| Sales returns | 5,100 | ||
| Input IGT | 2,000 | ||
| Input CGST | 2,000 | ||
| Input SGST | 2,000 | ||
| 3,20,200 | 3,20,200 |
Following further information was given:
(1) Wages for March, 2020 amounting to ₹ 2,100 have not yet been paid.
(2) Included in general expenses in an insurance premium of ₹ 600 paid in advance for the next year.
(3) A provision for doubtful debts @ 5% on sundry debtors is necessary.
(4) Depreciation is to be charged as follows.
Land and building 2%, Machinery 10% and Furniture and fixtures 15%.
(5) Loan form Mrs. Swaran Singh was taken on 1st October,2019. Interest has not yet been paid.
(6) The value of stock at hand on 31st March, 2020 was ₹ 14,900.
(7) Manager is entitled to a commission of 10% of the net profit after charging such commission.
Trading and Profit & Loss A/c of Swarna Singh
For the year ended 31st March, 2020
| Particulars | Amount | Particulars | Amount | ||
|---|---|---|---|---|---|
| To Opening stock | 15,500 | By sales | 2,07,300 | ||
| To purchases | 1,06,000 | Less: Returns | 5,100 | 2,02,200 | |
| Less: Returns | 2,100 | 1,03,900 | By Closing stock | 14,900 | |
| To Freight on Purchases | 2,800 | ||||
| To Wages | 26,000 | ||||
| Add: Outstanding wages | 2,100 | 28,100 | |||
| To Gross Profit (transferred to P & L A/c) |
66,800 | ||||
| 2,17,100 | 2,17,100 | ||||
| To Salaries | 11,000 | By Gross Profit b/d | 66,800 | ||
| To Rent | 3,000 | By Discount | 1,200 | ||
| To Postage expenses | 1,400 | ||||
| To Stationery | 1,300 | ||||
| To Repairs | 4,500 | ||||
| To Carriages on sales | 4,000 | ||||
| To General expenses | 2,500 | ||||
| Less: Prepaid insurance | 600 | 1,900 | |||
| To Interest on loan @ 9% p.a. | 1,350 | ||||
| To Bad debts | 600 | ||||
| Less: Provision for doubtful debts | 1,500 | 2,100 | |||
| To Depreciation on: | |||||
| Land and building | 700 | ||||
| Machinery | 5,000 | ||||
| Furniture and Fixtures | 750 | ||||
| To Commission to Manager (WN) | 2,818 | ||||
| To Net Profit (Transferred to capital) |
28,182 | ||||
| 68,000 | 68,000 | ||||
Balance Sheet of Swarna Singh
AS 0n 31st March, 2020
| Liabilities | Amount | Assets | Amount | ||
|---|---|---|---|---|---|
| Current Liabilities | Current Assets | ||||
| Sundry Creditors | 9,600 | Cash in hand | 4,100 | ||
| Outstanding wages | 2,100 | Cash at bank | 6,400 | ||
| Output IGST | 4,000 | Sundry debtors | 30,000 | ||
| Manager’s commission payable (WN) | 2,818 | Less: Provision for doubtful debts | 1,500 | 28,500 | |
| Mrs. Swarna Singh loan | 30,000 | Closing stock | 14,900 | ||
| Add: Interest on loan | 1,350 | 31,350 | Prepaid Insurance | 600 | |
| Capital | Fixed assets | ||||
| Opening balance | 60,000 | Furniture and Fixtures | 5,000 | ||
| Add: Net profit | 28,182 | 88,182 | Less: Depreciation | 750 | 4,250 |
| Machinery | 50,000 | ||||
| Less: Depreciation | 5,000 | 45,000 | |||
| Land and Building | 35,000 | ||||
| Less: Depreciation | 700 | 34,300 | |||
| 1,38,050 | 1,38,050 | ||||
Working Note: profit before charging commission is ₹ 31,000. Commission payable @ 10% of net profit after charging such commission.
| (I). Manager’s commission | = Net profit x % of commission 100+% of commission |
| = 31,000 x10/110 = ₹ 2,818 |
|
| (II). Interest on loan @ 9% p.a. | = 30,000 x9/100 x 6 /12 = ₹ 1,350. |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 45 Chapter No 16 – Class 11 Unimax", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 16 - Financial Statements (With Adjustments) - Unimax.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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