Question 6 Chapter No 16 – Class 11 Unimax

Question 6 Chapter No 16 – Class 11 Unimax

The following Trial Balance has been extracted from the books of M/s Ram Parsad & Sons on 31st December, 2019.

Debit balance	₹	Credit balance		₹
Machinery	4,000	Capital		9,000
Cash at bank	1,000	Sales		16,000
Cash in hand	500	Sundry creditors		4,500
Wages	1,000
Purchases	8,000
Stock on 1st Jan.2018	6,000
Sundry debtors	4,400
Bills receivable	2,900
Rent	450
Commission	250
General expenses	800
Salaries	500
	29,800			29,800

Wages outstanding amount to ₹ 5; rent prepaid amount to ₹ 100, stock on 31^st December, 2019 amount of ₹ 8,000.

Prepare trading and profit & loss account for the year ending 31^st December, 2019 and Balance sheet as on last date of the year.

The solution of Question 6 Chapter No 16 – Class 11 Unimax

TRADING AND PROFIT & LOSS M/SRAM PRASAD & SONS. FOR THE YEAR ENDED 31 st DEC.2019

Particulars		Amount	Particulars		Amount
To Opening stock		6,000	By sales		16,000
To purchase		8,000	By Closing stock		8,000
To Wages	1,000
Add: Outstanding wages	50	1,050
To Gross Profi (transferred to P & L A/c)		8,950
		24,000			24,000
To Rent	450		By Gross Profit b/d		8,950
Less: Prepaid rent	100	350	By Interest received		300
To Commission		250
To General expenses		800
To salaries		500
To Net Profit		7,350
(transferred to capital A/c)
		9,250			9,250

BALANCE SHEET of M/S Ram prasad & sons. As on 31st Dec.,2019

Liabilities		Amount	Assets		Amount
Capital	9,000		Machinery		4,000
Add: Net Profit	7,350	16,350	Cash at bank		1,000
Sundry creditors		4,500	Cash in hand		500
Outstanding wages		50	Sundry debtors		4,400
			Bill receivable		2,900
			Closing stock		8,000
			Prepaid rent		100
		20,900			20,900