Question No 01 Chapter No 20

Question No 01 Chapter No 20

01.The following are the balances extracted from the books of Raghunath Ji as on 31st March, 2019. From these balances, prepare his Trading and Profit & Loss Account and Balance Sheet as at that date

 Dr.Cr.
Opening Stock12,000 
Purchases40,000 
Sales 86,000
Discount 400
Sales Return6,000 
Buildings50,000 
Debtors16,000 
Salaries2,400 
Office Expenses1,200 
Wages10,000 
Purchase Return 4,000
Interest 800
Travelling Expenses400 
Fire Insurance Premium800 
Machinery20,000 
Carriage on Purchases700 
Commission400 
Cash in hand2,300 
Rent and Taxes1,800 
Capital 62,000
Creditors 10,800
 1,64,0001,64,000

Adjustments:-
1. Closing Stock was valued at 16,000.
2. Wages 2,000 and salaries 1,200 are outstanding.
3. Rent for two months at the rate of 500 per month is outstanding.
4. Depreciate Buildings by 5% and machinery by 10%.
5. Prepaid Insurance 200.

The solution of Question No 01 Chapter No 20: –

Trading Account
Particular
AmountParticular
Amount
To Opening Stock A/c 12,000By Sales86,000 
To Purchases A/c40,000 Less: return6,00080,000
Less: Return4,00036,000   
To Carriage 700By Closing Stock 16,000
To Wages10,000    
Add: Outstanding2,00012,000   
      
To Gross Profit 35,300   
  96,000  96,000
Profit & Loss Account
Particular
AmountParticular
Amount
Depreciation: (WN)  By Gross Profit 35,300
Machinery2,000 By Discount 400
Building2,5004,500By Interest 800
To Salaries2,400    
Add: Outstanding1,2003,600   
To Insurance800    
Less: Prepaid200600   
To Rent & Taxes1,800    
Add: Outstanding1,0002,800   
To Office Expenses 1,200   
To Travelling Expenses 400   
To Commission 400   
To Net Profit A/c 23,000   
  36,500  36,500
Balance Sheet
Liabilities
AmountAssets
Amount
Capital62,000 Machinery20,000 
Add: Net Profit23,00085,000Less: Depreciation2,00018,000
Creditors 10,800Building50,000 
Outstanding Wages 2,000Less: Depreciation2,50047,500
Outstanding Salaries 1,200Closing Stock 16,000
Outstanding Rent 1,000Prepaid Insurance 200
   Debtors 16,000
   Cash in Hand 2,300
  1,00,000  1,00,000

Working Note: –

Calculation of Depreciation

Depreciation on Building=5X50,000
100
 =Rs 2,500  
Depreciation on Machinery=10X20,000
100
 =Rs 2,000  

Trading Account: Meaning, Format and Examples

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

D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.

ISC Accounts 11 20 Image min 197x300 - Question No 01 Chapter No 20 - D.K Goal 11 Class
D K Goel accountancy +1 – ISC_Accounts_11_20_ImageQuestion No 42 Chapter No 11 – D.K Goal 11 Class

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