Question 51 Chapter No 16 – Class 11 Unimax

Question 51 Chapter No 16 – Class 11 Unimax

From the following balance extracted from the books of M/s Hariharan Brother, you are require to prepare the trading and profit and loss A/c and a balance sheet as on December 31, 2020.

Debit balance	₹	Credit balance	₹
Opening stock	16,000	Capital	1,00,000
Purchases	40,000	Sales	1,60,000
Returns inward	3,000	Purchases returns	800
Carriage inwards	2,400	Apprenticeship premium	3,000
Carriage outwards	5,000	Bill Payable	5,000
Wages	6,600	Creditors	31,600
Salaries	11,000
Rent	2,200
Freight and Dock	4,800
Fire insurance premium	1,800
Bad debts	4,200
Discount	1,000
Printing and stationery	500
Rates and Taxes	700
Travelling expenses	400
Business premises	1,10,000
Furniture	5,000
Bills receivable	7,000
Debtors	40,000
Machinery	9,000
Loan	10,000
Investment	6,000
Cash in hand	500
Cash at bank	7,000
Proprietor’s with drawls	6,000
	3,00,400		3,00,400

Adjustments:
(1) Closing stock ₹ 14,000.
(2) Wages outstanding ₹ 600, Salaries outstanding ₹ 1,000, Rent outstanding ₹ 200.
(3) Fire insurance premium includes ₹ 1,200 paid in July 01,2020 to run for one year from July 1,2019 to June 30,2020.
(4) Apprenticeship premium is for three year paid in advance on January 1,2020.
(5) Stationery bill ₹ 60 remain unpaid.
(6) Depreciation on business premises @ 5% furniture @ 10% Machinery @ 10%.
(7) Interest on loan given accrued for one year.
(8) Interest on investment @ 5% for half year to December 31,2020 has accrued.
(9) Interest in capital to be allowed at 5% for one year.

The solution of Question 51 Chapter No 16 – Class 11 Unimax

                                                    Trading and Profit & Loss A/c of M/s Hariharan Brother
                                                            For the year ended 31st Dec, 2020

Particulars		Amount	Particulars		Amount
To Opening stock		16,000	By sales	1,60,000
To purchases	40,000		Less: Returns	3,000	1,57,000
Less: Returns	800	39,200	By Closing stock		14,000
To carriage inward		2,400
To Wages	6,600
Add: Outstanding wages	600	7,200
To freight and Dock		4,800
To Gross Profit (transferred to P & L A/c)		1,01,400
		1,71,000			1,71,000
To carriage outwards		5,000	By Gross Profit b/d		1,01,400
To Salaries	11,000		By Apprenticeship premium	3,000
Add: Outstanding	1,000	12,000	Less: Advance	2,000	1,000
To Rent	2,200	700	By interest on drawings		160
To Outstanding rent	200	2,400	By interest on investment accrued		150
To fire insurance	1,800	500	By interest on loan		700
Less: Prepaid insurance	600	1,200
To Bad debts		4,200
To Discount		1,000
To Printing and stationery	500
Add: Outstanding	60	560
To Rates and Taxes		700
To Travelling expenses		300
To Trade expenses		400
To Dep. on Business premises		5,500
To Dep. on Furniture		500
To Dep. on Machinery		900
To Interest on capital		5,000
To Net Profit (Transferred to capital)		63,750
		1,03,410			1,03,410

                                                             Balance Sheet of M/s Hariharan
                                                                 AS 0n  31st Dec, 2020

Liabilities		Amount	Assets		Amount
Capital	1,00,000		Business premises	1,10,000
Add: Net profit	63,750		Less: Depreciation	5,500
Add: interest on capital	5000		Furniture	5,000
Less: Drawing	6,000		Less: Depreciation	500
Less: Interest on drawings	160	1,62,590	Bills receivable
Bill Payable		5,000	Debtors
Creditors		31,600	Machinery	9,000
Outstanding Wages		600	Less: Depreciation	900	8,100
Outstanding Salaries		1,000	Loan		10,000
Outstanding Rent		200	Investment		6,000
Outstanding stationery		60	Cash in hand		500
Advance Apprenticeship premium		2,000	Cash at bank		7,000
			Prepaid insurance		600
			Accrued interest on loan		700
			Accrued interest on investment		150
			Closing stock		14,000
		2,03,050			2,03,050