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Question No 07 Chapter No 18 - USHA Publication 11 Class

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Question No 07 Chapter No 18

Expenses & Income Expenses

07. The following trial balance is extracted from the books of Amritsar Steel store for the year ending 31st March 2019

Particular	Amount	Amount
Opening stock	40,000	-
Purchases & Sales	1,75,000	4,00,000
Return	10,000	15,000
Drawing & Capital	42,500	1,25,000
Furniture	75,00	-
Interest	1,000	4,000
Commission	2,000	12,000
Discount	3,500	2,500
Salaries	8,000	-
Insurance	2,000	-
Wages	1,500	-
Building	1,00,000	-
Postage	5,000	-
Octroi duty	4,500	-
Bills Receivable & Payable	25,000	7,000
Debtors & Creditor	48,000	10,000
Advertisement	10,500	-
Cash	22,000	-
	5,75,500	5,75,500

You are required to prepare Trading and profit & loss account for the year ending 13st March 2019 after considering the following adjustment

Closing stock on 31.3.20189 was valued at Rs 62,500
Depreciate furniture To 10% p.a and building To 5%p.a.
Insurance prepaid is Rs 500
Commission received in advance Rs 2,000
Interest Rs 250 has been earned but not yet received
Salaries outstanding Rs 2,500 and Wages due Rs 400

The solution of Question No 07 Chapter No 18:-

Trading Account

Particular		Amount	Particular		Amount
To Opening Stock A/c		40,000	By Sale A/c	4,00,000
To Purchases A/c	1,75,000		Less: Return	10,000	3,90,000
Less: Return	15,000	1,60,000	By Closing Stock		62,500
To Octroi Duty A/c		4,500
To Wages A/c	1,500
Add: outstanding Wages	400	1,900
To Gross Profit A/c		2,46,100
		4,52,500			4,52,500

Profit/Loss Account

Particular		Amount	Particular		Amount
To Interest A/c		3,200	By Gross Profit A/c		2,46,100
To Discount A/c		3,500	By Interest A/c	4,000
To Salary A/c	8,000		Add: Accrued Interest	250	4,250
Add: outstanding Salary	2,500	10,500	By Discount A/c		2,500
To Insurance A/c	2,000		By Commission A/c	12,000
Less; Prepaid insurance	500	1,500	Less: Received in advance	2,000	10,000
To Postage A/c		5,000
To Advertisement A/c		10,500
To Dep. On furniture A/c		7,500
To dep. On Building A/c		5,000
To Commission A/c		2,000
To Net Profit A/c		27,300
		262850			262850

Balance Sheet

Labilities		Amount	Assets		Amount
Capital A/c	1,25,000		Furniture	75,000
Add: Net Profit	2,16,350		Less: Depreciation	7,500	67,500
Less: Drawing	42,500	2,98,850	Building	1,00,000
Bills Payable		7,000	Less: Depreciation	5,000	95,000
Creditor		10,000	Bill receivable		25,000
Outstanding Wages		400	Debtors		48,000
Outstanding Salaries		2,500	Cash		22,000
Commission received in advance		2,000	Closing Stock		62,500
			Repaid Insurance		500
			Accrued Interest		250
		3,20,750			3,20,750