Question No 03 A Chapter No 20

Question No 03 A Chapter No 20

03 A .On 31st March, 2018 the following Trial Balance was extracted from the books of Mohan

Capital 30,000
Debtors and Creditor20,00010,000
Bank Loan 9,500
Interest on Loan300 
Provision for Bad-Debts 700
Stock 1-4-2016 6,800 
Motor Vehicles10,000 
Land and Buildings12,000 
Bad-Debts 500 
Purchases and Sales66,0001,10,000
Carriage Outward2,500 
Carriage Inward3,000 
Rent and Insurance3,000 
Discount 500
General Expenses3,400 
B/R and B/P6,0002,000
Rent received 300

Prepare Trading and Profit & Loss Account for the year ended 31st March, 2017 and Balance Sheet as at that date after taking into account the following:-
a Private purchases amounting to 4,000 have been debited to Purchases Account.
b Depreciate Land and Buildings at 2 1 2 % and Motor Vehicles at 20%.
c Salaries outstanding 200.
d Prepaid Insurance 200.
e Provision for Doubtful Debts is to be maintained at 5% on Debtors.
f Stock on 31st March, 2017 was valued at 7,000.

The solution of Question No 03 A Chapter No 20: –

Trading Account
To Opening Stock A/c 6,800By Sales1,10,000 
To Purchases A/c66,000 Less: return8,0001,02,000
Less: Return1,500    
Less: Drawings4,00060,500By Closing Stock 7,000
To Carriage Inward 3,000   
To Gross Profit 38,700   
  1,09,000  1,09,000
Profit & Loss Account
Depreciation: (WN)  By Gross Profit 38,700
Land & Building300 By Discount received 500
Motor Vehicle2,0002,300By Rent Received 300
To Salary9,000    
Add: Outstanding2009,200   
Rent & Insurance3,000    
Less: Pre-paid2002,800   
To Old Bad Debts500    
Add: New Bad Debts    
Add: New Provision (WN2)1,000    
Less: Old Provision700800   
To Interest on Bank Loan 300   
To Interest on Bank Loan 2,500   
To Carriage Outward 3,500   
To Advertisement 3,400   
To Net Profit A/c 14,700   
  39,500  39,500
Balance Sheet
Capital30,000 Land & Buildings12,000 
Add: Net Profit14,700 Less: Depreciation30011,700
Less: Drawings 5, 000 +4, 0009,00035,700Motor Vehicles10,000 
Creditors 10,000Less: Depreciation2,0008,000
Outstanding Salaries 200Closing Stock 7,000
Bank Loan 9,500Prepaid Insurance 200
Bills Payable 2,000Debtors20,000 
   Less: Provision for Bad Debts1,00019,000
   Bills Receivables 6,000
   Cash at Bank 3,500
   Cash in Hand 2,000
  57,400  57,400

Working Note: –

Calculation of Depreciation

Depreciation on Land & Building=2.5X12,000
 =Rs 300  
Depreciation on Motor Vehicles=20X10,000
 =Rs 2,000  

Calculation of Provision for Doubtful Debts

Provision for Doubtful Debts=5X20,000
 =Rs 1,000  

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 03 A 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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