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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
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Question 48 Chapter No 16 – Class 11 Unimax
From the following balance of Mr. Madan Mohan prepare trading and profit and loss A/c for the year ending 31st December, 2020 and a balance sheet as on that date:
| Debit balance | ₹ | Credit balance | ₹ |
|---|---|---|---|
| Cash in hand | 10,000 | Sales | 1,80,500 |
| Opening stock | 40,800 | Purchases returns | 195 |
| Wages | 22,525 | Loan at 12% on 1.4.2020 | 20,000 |
| Purchases | 1,30,295 | Creditors | 30,305 |
| Returns inward | 2,400 | Discount | 530 |
| Repairs | 1,675 | Capital | 37,500 |
| Bad debts | 2,310 | ||
| Interest on loan | 600 | ||
| Salaries | 8,000 | ||
| Sales tax | 800 | ||
| Octroi | 500 | ||
| Insurance | 1,000 | ||
| Charity | 125 | ||
| Rent | 2,000 | ||
| Machinery | 16,000 | ||
| Debtors (including Ashok for dishonored bill of ₹ 800) | 30,000 |
Adjustments :
(1) Wages include ₹ 2,000 erection of new machinery on 1.1.2020.
(2) Stock on 31st December, 2020was ₹ 40,925
(3) Provide 5% depreciation on machinery
(4) Salaries unpaid ₹ 800
(5) Half the amount of Ashok’s bill is irrecoverable create a provision at 5% on the debtors
(6) Create a provision at 5% on the debtors
(7) Rent is prepaid up to 31st March,2021
(8) Insurance unexpired ₹ 300.
Trading and Profit & Loss A/c of MR. Madan Mohan
For the year ended 31st December,2020
| Particulars | Amount | Particulars | Amount | ||
|---|---|---|---|---|---|
| To Opening stock | 40,800 | By sales | 1,80,500 | ||
| To purchases | 1,30,295 | Less: Returns | 2,400 | 1,78,100 | |
| Less: Returns | 195 | 1,30,100 | By Closing stock | 40,925 | |
| To Wages | 22,525 | ||||
| Add: Machinery wages | 2,000 | 1,30,100 | |||
| To Octroi | 500 | ||||
| To Gross Profit (transferred to P & L A/c) |
27,100 | ||||
| 2,19,025 | 2,19,025 | ||||
| To Dep. On Machinery | 900 | By Gross Profit b/d | 27,100 | ||
| To Salaries | 8,000 | By Discount | 530 | ||
| Add: Outstanding salaries | 800 | 8,800 | |||
| To Bad debts | 2,310 | ||||
| Add: Further bad debts | 400 | ||||
| Add: New provision | 1,460 | 4,170 | |||
| To Repairs | 1,675 | ||||
| To Interest on loan | 600 | ||||
| Add: Outstanding interest | 1,200 | 1,800 | |||
| To Insurance | 1,000 | ||||
| Less: prepare insurance | 300 | 700 | |||
| To Charity | 125 | ||||
| To Rent | 2,000 | 8,375 | |||
| Less: Prepare rent | 500 | 1,500 | |||
| To Sales Tax | 800 | ||||
| To Net Profit | 7,160 | ||||
| (Transferred to capital) | |||||
| 27,630 | 27,630 | ||||
Balance Sheet of MR. Madan Mohan
As on 31st December 2020
| Liabilities | Amount | Assets | Amount | ||
|---|---|---|---|---|---|
| Creditors | 30,305 | Cash | 10,000 | ||
| Capital | 37,500 | Machinery | 16,000 | ||
| Add: Net profit | 7,160 | 44,660 | Add: Wages | 2,000 | |
| Loan | 20,000 | Less: Depreciation | 900 | ||
| Outstanding interest | 1,200 | Debtors | 30,000 | ||
| Outstanding Salaries | 800 | Less: bad debts | 400 | ||
| Less: Provision | 1,460 | 28,140 | |||
| Closing stock | 40,925 | ||||
| Prepaid insurance | 300 | ||||
| Prepaid rent | 500 | ||||
| 96,965 | 96,965 | ||||
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 48 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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