Question No 03 B Chapter No 20

Question No 03 B Chapter No 20

03 B .Prepare Trading and Profit & Loss Account for the year ended 31st March, 2017 and Balance Sheet as at that date from the following Trial Balance

Capital 10,000
Bank Overdraft 2,000
Purchases and Sales12,00015,000
Establishment Expenses2,200 
Taxes and Insurance500 
Bad-debts and Bad-debt Provision500700
Debtors and Creditors5,0002,000
Commission  500
Opening Stock3,000 
Drawings 1,400 
Furniture 600 
B/R and B/P3,0002,500

1. Salaries 100 and taxes 200 are outstanding but insurance 50 is prepaid.
2. Commission 100 is received in advance for next year.
3. Interest 210 is to be received on Deposits and Interest on Bank overdraft 300 is to be paid.
4. Bad-debts provision is to be maintained at 1,000 on Debtors.
5. Depreciate furniture by 10%.
6. Stock on 31st March, 2017 was valued at 4,500.

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

Trading Account
To Opening Stock A/c 3,000By Sales15,000 
To Purchases A/c12,000 Less: return1,00014,000
Less: Return2,00010,000   
   By Closing Stock 4,500
To Gross Profit 5,500   
  18,500  18,500
Profit & Loss Account
Depreciation on Furniture (WN) 60By Gross Profit 5,500
To Establishment Charges 2,200By Accrued Interest on Deposits 210
To Outstanding Salaries 100By Commission received500 
To Taxes & Insurance500 Less: Comm. received in advance100400
Add: Outstanding Taxes200    
Less: Prepaid Insurance50650   
Old Bad Debts500    
Add: New Bad Debts    
Add: New Provision (WN2)1,000    
Less: Old Provision700800   
To Outstanding Interest on Bank Overdraft 300   
To Net Profit A/c 2,000   
  6,110  6,110
Balance Sheet
Capital10,000 Land & Buildings600 
Add: Net Profit2,000 Less: Depreciation60540
Less: Drawings1,40010,600Closing Stock 4,500
Creditors 2,000Prepaid Insurance 50
Outstanding Salaries 100Bills Receivables 3,000
Outstanding Taxes 200Cash in Hand 1,500
Bills Payable 2,500Debtors5,000 
Bank Overdraft 2,000Less: Provision for Bad Debts1,0004,000
Commission received in advance 100Deposits4,000 
Outstanding Interest on Bank Overdraft 300Add: Accrued Interest2104,210
  17,800  17,800

Working Note: –

Calculation of Depreciation

Depreciation on Furniture=10X60
 =Rs 60  

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 B 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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