Question No 22 Chapter No 18 – USHA Publication 11 Class

Question No 22 Chapter No 18

Question No 22 Chapter No 18

Bad bets and Provision

22. On 1st April 2015 the provision for bad debts account showed a credit balance of Rs 3,600 During the year the bad debts amounted to Rs 2,800. the debtors on 31st March 2016 amounted to Rs 96,000 and a provision of 5% for doubtful debts was maintained. The bad debts during the year 2016-17 amount to Rs 5,400. on 31st March 2017, the debtors amounted to Rs 1,00,000and a5% provision for bad debts was required to keep. In 2017-18 the debts amounted to Rs 1,200 and the debtors at the end of the year amounted to Rs 40,000 on which a provision of 5% for bad debts was to be maintained.
Show the provision for bad debts account and also show how this item will appearing the profit and loss account and balance sheet in every three years.

 

The solution of Question No 22 Chapter No 18:-

 

  Provision for bad debts A/c
Date Particular
Amount Date Particular
Amount
2016       2015      
Mar. 31 To bad debts A/c   2,800 Apr. 1 By Balance b/d   3,600
Mar. 31 To Balance c/d   4,800 2016      
        Mar. 31 By P & L A/c   4,000
      7,600       7,600
2017       2016      
Mar. 31 To bad debts A/c   5,400 Apr. 1 By Balance b/d   4,800
Mar. 31 To Balance c/d   5,000 2017      
        Mar. 31 By P & L A/c   5,600
      10,500       10,500
2018       2017      
Mar. 31 To bad debts A/c   1,200 Apr. 1 By Balance b/d   5,000
Mar. 31 To Balance c/d   1,800        
Mar. 31 By P & L A/c
(5% of 40,000)
  2,000        
      5,000       5,000

 

Profit & loss A/c
Particulars
Amount Particulars
Amount
2015-16          
To Bad debts written off A/c 2,800        
Add: New provision for bad debts 4,800        
Less: Old provision for bad debts 3,600 4,000      
           
2016-17          
To Bad debts old provision A/c 5,400        
Add: New provision for bad debts 5,000        
Less: Old provision for bad debts 4,800 5,600      
           
2017-18          
To Bad debts old provision A/c 5,000        
less: bad debts written off 1,200        
Less: New provision for bad debts 2,000 1,800      
       

 

Profit & loss A/c
Labilities
Amount Assets
Amount
      2016    
      Debtors A/c 96,000  
      Less: Provision for bad debts @5% 4,800 91,200
           
      2017    
      Debtors A/c 1,00,000  
      Less: Provision for bad debts @5% 5,000 95,000
           
      2018    
      Debtors A/c 40,000  
      Less: Provision for bad debts @5% 2,000 38,000
           
           
           
       

 

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

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Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Question No 21 Chapter No 18 – USHA Publication 11 Class

Question No 21 Chapter No 18

Question No 21 Chapter No 18

Bad bets and Provision

21.The following balances have been extracted from the trial balances of Reeta Bakshi as on31st March 2018

Ledger Account (Dr. Rs) (Cr. Rs)
Sundry Debtors 40,000
Bad debts 3,500

Adjustments
Creates provision for doubtful debts @5% on sundry debtors
Give the adjusting entry and show how it will appear in final accounts.

 

The solution of Question No 21 Chapter No 18:-

Adjustment entries
Date Particulars
L.F. Debit Credit
  Profit & Loss A/c Dr.   2,000  
  To Provision for Bad debts A/c       2,000
  (Being new provision on debts created @5%.)      
         

 

Profit & loss Account
Particular
Amount Particular
Amount
To Bad debts A/c 3,500        
Add: New provision for bad debts 2,000 5,500      
       

 

Balance Sheet
Labilities
Amount Assets
Amount
      Debtors. A/c 40,000  
      Less: further bad debts 2,000 28,000
           
       

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Question No 20 Chapter No 18 – USHA Publication 11 Class

Question No 20 Chapter No 18

Question No 20 Chapter No 18

Bad bets and Provision

20. The following balances have been taken from the trial balance of Jagir Kaur as on 31st March 2018

Ledger Account (Dr. Rs) (Cr. Rs)
Sundry Debtors 26,000
Bad debts 3,500

Adjustments
Write off further bad debts Rs 2,000 give the adjusting entry and show how it will be treated in financial statements.

 

The solution of Question No 20 Chapter No 18:-

Adjustment entries
Date Particulars
L.F. Debit Credit
  Bad debts A/c Dr.   2,000  
  To Debtors A/c       2,000
  (Being bad debts written off.)      
         

 

Profit & loss Account
Particular
Amount Particular
Amount
To Bad debts A/c 3,500        
Add: further bad debts. 2,000 5,500      
       

 

Balance Sheet
Labilities
Amount Assets
Amount
      Debtors. A/c 26,000  
      Less: further bad debts 2,000 28,000
           
       

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Question No 19 Chapter No 18 – USHA Publication 11 Class

Question No 19 Chapter No 18

Question No 19 Chapter No 18

Interest on Drawings

19. From the following trail balance of Kabul Singh prepare Trading and profit & Loss account for the year ended 31st march 2019 and balance sheet as on that date:

Debit balances Rs Credit balances Rs
Building 70,000 Capital 92,000
Motor Trucks 12,000 Creditors 18,852
Furniture 1,640 Bills payables 6,930
Debtors 15,600 Sales 1,21,850
Opening stock 15,040 Interest  340
Cash in hand 988 Apprentice premium 1,320
Purchases 87,522 Purchases return 2,000
Carriage inwards 1,291    
Carriage outwards 800    
Cash at bank 14,534    
Bills receivable 5,844    
General expenses 6,085    
Insurance 613    
Bad debts 783    
Audit fees 300    
Travelling expenses 425    
Discount 420    
Sales return 485    
Investments 8,922    
  2,43,292   2,43,292

 

Adjustments:

  1. Purchases include purchases of furniture Rs 2,600
  2. Goods are withdrawn by the proprietor for personal sue Rs 5,500
  3. Goods distributed as free samples Rs 1,800
  4. Goods donated to orphanage Rs 1,400
  5. Goods of the value of Rs 3,000were used in the construction of the building
  6. Stock at the end of the year Rs 35,000

The solution of Question No 19 Chapter No 18:-

Trading Account
Particular
Amount Particular
Amount
To Opening Stock A/c   15,040 By Sale A/c 1,21,850  
To Purchases A/c 87,522     485 1,21,365
Less: furniture 2,600   By Closing Stock   35,000
Less: drawings 5,500        
Less: Free samples 1,800        
Less: Donation 1,400        
Less: Building 3,000        
Less: Return 2,000        
Add: Additional Purchases (8,000) 79,222      
To Carriage Inwards A/c   1,921      
To Gross Profit A/c   60,812      
    1,56,365     1,56,365

 

Profit/Loss Account
Particular
Amount Particular
Amount
To Carriage outwards A/c   800 By Gross Profit A/c   60,812
To General Exp. A/c   6,085 By Interest A/c   340
To Insurance   613 By apprentice premium A/c   1,320
To bad debts   783      
To Audit fee A/c   300      
To Travelling Exp.   425      
To Discount   420      
To Advertisement   1,800      
To Donation   1,400      
To Net Profit A/c   49,846      
    62,472     62,472

 

Balance Sheet
Labilities
Amount Assets
Amount
Capital A/c 92,000   Building 70,000  
Add: net Profit 49,846   Add: Addition 3,000 73,000
Less: Drawing 5,500 1,36,346 Debtors   15,600
Creditor 18,852   Bills receivable   5,844
Additional purchases 8,000 26,852 Investment   8,922
Bills Payable   6,930 Furniture 1,640  
      Add: Addition 2,600 4,240
      Closing Stock   35,000
      Cash in hand   988
      Cash at bank   14,534
    1,70,128     1,70,128

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Question No 18 Chapter No 18 – USHA Publication 11 Class

Question No 18 Chapter No 18

Question No 18 Chapter No 18

Withdrawal of goods for personal use

18. The following balances have been extracted from the trial balance of Rahul Dev As on 31st March 2018

Ledger Account (Dr. Rs) (Cr. Rs)
Purchases 66,000
Tools and Implements 34,000
Wages 18,000

Adjustments
Materials worth Rs 6,000 and wages Rs 4,000 were used in marking Tools and implements for the business. Show the adjustment entry and its treatment in the financial statement

 

The solution of Question No 18 Chapter No 18:-

Adjustment entries
Date Particulars
L.F. Debit Credit
  Tools and Implements A/c Dr.   10,000  
  To Purchases A/c       6,000
  To Wages A/c       4,000
  (Being material and wages used for tools and implement.)      
         

 

Trading Account
Particular
Amount Particular
Amount
To Purchases A/c 66,000        
Less: tools and Imp. 6,000 60,000      
To Wages A/c 18,000        
Less: tools and Imp. 4,000 14,000      
       

 

Balance Sheet
Labilities
Amount Assets
Amount
      Tools and Imp. A/c 34,000  
      Add: addition during year 10,000 44,000
           
       

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Question No 17 Chapter No 18 – USHA Publication 11 Class

Question No 17 Chapter No 18

Question No 17 Chapter No 18

Withdrawal of goods for personal use

17. The following balances have been taken from the trial balances of Jayant Singh as of 31st March 2019

Ledger Account (Dr. Rs) (Cr. Rs)
Purchases 40,000
Advertisement 10,000
Donation 6,000
Input CGST 5,500
Input SGST 5,500

Adjustments
Goods worth Rs 3,000 were distributed as free samples and worth Rs 2,000 were donated to poor people (CGST and SGST 14%)
Give adjustment entries and show their accounting treatment in the financial statement for the year 2018-19

 

The solution of Question No 17 Chapter No 18:-

Adjustment entries
Date Particulars
L.F. Debit Credit
  Advertisement A/c Dr.   3,840  
  Donation A/c Dr.   2,560  
  To Purchases A/c       5,000
  To Input CGST A/c       700
  To Input SGST A/c       700
  (Being goods distributed in advertisement and donated .)      
         

 

Trading Account
Particular
Amount Particular
Amount
To Purchases A/c 40,000        
Less: Donation 3,000        
Less: Advertisement 2,000 45,000      
       

 

Profit & Loss  Account
Particular
Amount Particular
Amount
To Donation A/c 6,000        
Add: Donation 2,000 8,000      
           
To Advertisement A/c 10,000        
Add: Advertisement 3,000 13,000      
       

 

Balance Sheet
Labilities
Amount Assets
Amount
      Input CGST   4,700
      Input SGST   4,700
           
       

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Question No 16 Chapter No 18 – USHA Publication 11 Class

Question No 16 Chapter No 18

Question No 16 Chapter No 18

Withdrawal of goods for personal use

16.The following balances have been taken from the trail balance of Miss Pooja as on 31st March 2016

Ledger Account (Dr. Rs) (Cr. Rs)
Purchases 65,000
Capital 50,000
Drawing 8,000

 

The solution of Question No 16 Chapter No 18:-

Adjustment entries
Date Particulars
L.F. Debit Credit
  Drawing A/c Dr.   4,000  
  To Purchases A/c       4,000
  (Being withdrawn for personal use.)      
         

 

Trading Account
Particular
Amount Particular
Amount
To Purchases A/c 65,000        
Less: Drawing 4,000 61,000      
       

 

Balance Sheet
Labilities
Amount Assets
Amount
Capital A/c 50,000        
Less: Drawing(8,000 + 4,000) 12,000 38,000      
           
       

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Question No 15 Chapter No 18 – USHA Publication 11 Class

Question No 15 Chapter No 18

Question No 15 Chapter No 18

Interest on Drawings

15. The following is the trial balance of M/s Kasturi Agencies as on 31st March 2019 prepare trading and profit & loss account for the yea ending 31st March 2019 and a balance sheet as on that date

Ledger Account (Dr. Rs) (Cr. Rs)
Capital 1,00,000
Building 15,000
Drawings 18,000
Furniture & fittings 7,500
Motor Van 25,000
Loan from Mr. A @12% interest  15,000
Interest paid on loan  900
Sales 1,00,000
Purchases 75,000
Opening Stock 25,000
Establishment expenses 15,000
Wages 2,000
Insurance 1,000
Commission  7,500
Sundry Debtors and Creditor 28,100 10,000
Bank balance 20,000  
  2,32,500 2,32,500

Adjustment:

  1. The value of the closing stock on 31st March 2019 was Rs 32,000
  2. Outstanding wages Rs 500
  3. Prepaid insurance Rs 300
  4. The commission received in advance Rs 800
  5. Paid rent Rs 500 in advance
  6. Depreciation building by 2.5%, furniture and fittings by 10% and motor van by 10%
  7. Charge interest on drawings Rs 500
  8. Balance of interest due on the loan is also to be provided for

The solution of Question No 15 Chapter No 18:-

Trading Account
Particular
Amount Particular
Amount
To Opening Stock A/c   25,000 By Sale A/c   1,00,000
To Purchases A/c   75,000      
To Wages A/c 2,000   By Closing Stock   32,000
Add: outstanding wages 500 2,500      
To Gross Profit A/c   29,500      
    1,32,000     1,32,000

 

Profit/Loss Account
Particular
Amount Particular
Amount
To Establishment Exp. A/c   15,000 By Gross Profit A/c   29,500
To Interest on loan A/c 900   By Commission A/c 7,500  
Add: Interest Due 900 1,800 Less: commission received in advance 800 6,700
To Interest on capital   10,000 By Interest on drawing A/c   500
To Insurance A/c 1,000        
Less: Prepaid insurance 300 700      
To Dep. On Building   375      
To Dep. On furniture & fitting   750      
To Dep. On Motor van   2,500      
To Net Profit A/c   5,575      
    36,700     36,700

 

Balance Sheet
Labilities
Amount Assets
Amount
Capital A/c 1,00,00   Building 15,000  
Add: Interest on capital 10,000   Less: Depreciation 375 14,625
Add: net Profit 5,575   Sundry debtors   28,100
Less: Drawing 18,000   Bank Balance   20,000
Less: interest on drawing 500 97,075 Closing Stock   32,000
Laon from Mr. A   15,000 Furniture & fitting 7,500  
Interest on loan due   900 Less: Depreciation 750 6,750
Sundry Creditor   10,000 Motor Van 25,000  
Wages due   500 Less: Depreciation 2,500 22,500
Commission received in advance   800 Prepaid insurance   300
    1,24,275     1,24,275

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Question No 14 Chapter No 18 – USHA Publication 11 Class

Question No 14 Chapter No 18

Question No 14 Chapter No 18

Opening stock Valuation

14.Th following trail balances has been extracted from the books of Shamsher Singh on 31st March 2018

Debit balances Rs Credit balances Rs
Machinery 40,000 Capital 90,000
Cash in hand 10,000 Sales 1,60,000
Cash at bank 5,000 Sundry Creditor 45,000
Wages 10,000 Interest received  3,000
Purchases 80,000    
Stock 1-4-2017 60,000    
Sundry Debtors 44,000    
Bills receivable 29,000    
Rent 4,500    
Commission  2,500    
General expenses 8,000    
Salaries 5,000    
  2,98,000   2,98,000

Provide for interest on capital at 5% p.a. Depreciation at 10% ; wages outstanding amount to Rs 500; rent prepaid amounts to Rs 1,000; stock on 31-3-2018 Rs 80,000.
Prepare Trading and Profit & Loss account for the year ending 31st  March 2018 and balance sheet as 31st March 2018

The solution of Question No 14 Chapter No 18:-

Trading Account
Particular
Amount Particular
Amount
To Opening Stock A/c   60,000 By Sale A/c   1,60,000
To Purchases A/c   80,000      
To Wages A/c 10,000   By Closing Stock   80,000
Add: outstanding wages 500 10,500      
To Gross Profit A/c   89,500      
    2,40,000     2,40,000

 

Profit/Loss Account
Particular
Amount Particular
Amount
To Commission A/c   2,500 By Gross Profit A/c   92,500
To Rent A/c 4,500        
Less: rent prepaid 500 3,500      
To general exp.   8,000      
To Salaries A/c   5,000      
To Interest on capital   4,500      
To Dep. On machinery   4,000      
To Net Profit A/c   65,000      
    92,500     92,500

 

Balance Sheet
Labilities
Amount Assets
Amount
Capital A/c 90,000   Machinery 40,000  
Add: interest on capital 4,500   Less: Depreciation 4,000 36,000
Add: net Profit 65,000 1,59,500 Cash at bank   10,000
Sundry Creditor   45,000 Cash in hand   5,000
Wages Due   500 Sundry Debtors   44,000
      Bills Receivable   29,000
      Closing Stock   80,000
      Rent prepaid   1,000
    2,05,000     2,05,000

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Question No 13 Chapter No 18 – USHA Publication 11 Class

Question No 13 Chapter No 18

Question No 13 Chapter No 18

Opening stock Valuation

13.From the following trial balance extracted from the book of Shivam, prepare a trading account and profit & loss account for the year ending 31st march 2019 and balance sheet as of that date

Ledger Account (Dr. Rs) (Cr. Rs)
capital; 2,00,000
Drawing 17,000
Plant & machinery 1,20,000
Horses and carts 26,000
Debtors 36,000
Creditor 26,000
Purchases and sales 20,000 42,000
Wages 8,000
Cash in hand  26,000
Salaries 8,000
Repair 1,900
Opening stock 16,000
Rent  4,500
-manufacturing expenses 1,500  
Bills payables 23,500
Bad debts 5,000
Carriage 1,600  
  2,91,500 2,91,500

The following adjustments are to be made:

  1. Closing stock Rs 16,000
  2. Depreciation plant & machinery 10%; horses and carts 15%
  3. Allow interest on capital at 5% p.a
  4. 1,500 is due for wages
  5. Paid rent Rs 500 in advance

The solution of Question No 13 Chapter No 18:-

Trading Account
Particular
Amount Particular
Amount
To Opening Stock A/c   16,000 By Sale A/c   42,000
To Purchases A/c   21,650      
To Wages A/c 8,000   By Closing Stock   16,000
Add: outstanding wages 1,500 9,500      
To Manufacturing Exp. A/c   1,500      
To Carriage A/c   1,600      
To Gross Profit A/c   9,400      
    58,000     58,000

 

Profit/Loss Account
Particular
Amount Particular
Amount
To Salaries A/c   8,000 By Gross Profit A/c   9,400
To Rent A/c 4,500        
Less: rent prepaid 500 4,000      
To Repair   200      
To Bad debt A/c   9,500      
To Dep. On plant & machinery   400      
To Dep. On Horses & Carts   650      
      By Net Loss A/c   35,400
    44,800     44,800

 

Balance Sheet
Labilities
Amount Assets
Amount
Capital A/c 2,00,000   Horses & Carts 26,000  
Add: interest on capital 10,000   Less: Depreciation 3,900 22,100
Less: net Loss 35,400   Debtors   36,000
Less: Drawing 17,000 1,57,600 Closing Stock   16,000
Creditor   26,000 Cash at bank   26,000
Bills payables   23,500 Rent prepaid   500
Wages due   1,500 Plant & machinery 1,20,000  
      Less: Depreciation 12,000 1,08,000
    2,08,600     2,08,600

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)