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

 Dr.Cr.
Capital 30,000
Drawings5,000 
Debtors and Creditor20,00010,000
Bank Loan 9,500
Interest on Loan300 
Cash2,000 
Provision for Bad-Debts 700
Stock 1-4-2016 6,800 
Motor Vehicles10,000 
Bank3,500 
Land and Buildings12,000 
Bad-Debts 500 
Purchases and Sales66,0001,10,000
Returns8,0001,500
Carriage Outward2,500 
Carriage Inward3,000 
Salaries9,000 
Rent and Insurance3,000 
Advertising3,500 
Discount 500
General Expenses3,400 
B/R and B/P6,0002,000
Rent received 300
 1,64,5001,64,500

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
Particular
AmountParticular
Amount
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
Particular
AmountParticular
Amount
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
Liabilities
AmountAssets
Amount
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
100
 =Rs 300  
Depreciation on Motor Vehicles=20X10,000
100
 =Rs 2,000  

Calculation of Provision for Doubtful Debts

Provision for Doubtful Debts=5X20,000
100
 =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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