Question No 03 Chapter No 18
Outstanding expenses
03. The following balances are extracted from the books of Chandigarh Medical stores for the year ending 31st March 2019:
| Particular | Amount | Particular | Amount |
| Cash | 6,000 | Sales | 30,000 |
| Opening stock | 9,000 | Office expenses | 4,000 |
| Legal charges | 800 | Bill payable | 7,000 |
| Purchases | 12,000 | Interest paid | 850 |
| Bank charges | 100 | Commission earned | 1,150 |
| Carriage | 500 | Salaries | 1,750 |
| Octroi | 400 | Rent | 1,500 |
| Insurance | 600 | Stationery | 680 |
| Lighting | 900 | Postage | 20 |
| Debtors | 8,800 | Publicity | 500 |
| Creditor | 6,100 | Discount allowed | 200 |
| Bad debts | 550 | General expenses | 100 |
| Capital | 14,000 | Furniture | 9,000 |
You are required to prepare Trading and Profit & Loss and balance sheet as on 31st March 2019 after considering the following adjustments:
- The closing stock was valued at Rs 9,500
- salaries outstanding are Rs 700
- Prepaid insurance is Rs 150
- Stationery bill outstanding is Rs 120
The solution of Question No 03 Chapter No 18:-
| Trading Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Opening Stock A/c | 9,000 | By Sale A/c | 30,000 | ||
| To Purchases A/c | 12,000 | ||||
| To carriage A/c | 500 | By Closing Stock | 9,500 | ||
| To Octroi A/c | 400 | ||||
| To Gross Profit A/c | 17,600 | ||||
| 39,500 | 39,500 | ||||
| Profit/Loss Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Bank Charges A/c | 100 | By Gross Profit A/c | 17,600 | ||
| To Insurance A/c | 600 | By Commission earned A/c | 1,150 | ||
| Less: prepaid Insurance | 150 | 450 | |||
| To Light A/c | 900 | ||||
| To Bad debts A/c | 550 | ||||
| To Office Expenses A/c | 4,000 | ||||
| To Interest paid A/c | 850 | ||||
| To Salaries A/c | 1,750 | ||||
| Add: outstanding salaries | 700 | 2,450 | |||
| To Rent A/c | 1,500 | ||||
| To Stationery A/c | 680 | ||||
| Add: outstanding Stationery | 120 | 800 | |||
| To Postage A/c | 20 | ||||
| To Publicity A/c | 500 | ||||
| To Discount allowed A/c | 200 | ||||
| To General Expenses A/c | 100 | ||||
| To Legal Charges A/c | 800 | ||||
| To Legal Charge A/c | 800 | ||||
| To Net Profit A/c | 5,530 | ||||
| 18,750 | 18,750 | ||||
| Balance Sheet | |||||
| Labilities |
Amount | Assets |
Amount | ||
| Capital A/c | 14,000 | Debtors | 7,000 | ||
| Add : Net Profit | 5,530 | 19,530 | Furniture | 3,000 | |
| Creditors | 6,100 | Closing Stock | |||
| Bills Payable | 7,000 | Cash | |||
| Outstanding Salaries | 700 | Prepaid Insurance | |||
| Outstanding Stationery | 120 | ||||
| 33,450 | 33,450 | ||||
Final Accounts: Meaning, Definition and Explanation
Profit and Loss Account: Meaning, Format & Examples
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Balance Sheet: Meaning, Format & Examples
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Also, Check out the solved question of all Chapters: –
Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution
Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Origin of Transactions
Chapter No. 4 – Vouchers and transactions
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Chapter No. 6 – Accounting for Goods and Services Tax(GST)
Chapter No. 9 – Other Subsidiary Books
Chapter No. 10 – Journal Proper
Chapter No. 11 – Trial Balance
Chapter No. 12 – Bank Reconciliation Statement
Chapter No. 14 – Provisions and Reserves
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Chapter No. 15 – Bills of Exchange
Chapter No. 16 – Rectification of Errors
Chapter No. 17 – Financial Statements – (Without Adjustments)