Question No 04 A Chapter No 20

Question No 04 A Chapter No 20

04 A. From the following Trial Balance extracted from the books of A, prepare Trading and Profit & Loss Account for the year ending 31st March, 2019 and a Balance Sheet as at that date:-

 Dr.Cr.
Furniture640 
Loose Tools6,250 
Buildings7,500 
Capital Account 12,500
Bad-debts125 
Provision for Bad-debts 200
Sundry Debtors and Creditors3,8002,500
Stock on 1st April, 20183,460 
Purchases and Sales5,47515,450
Bank Overdraft 2,850
Sales Return and Purchases Return200125
Stationery450 
Interest Account118 
Commission 375
Cash in hand650 
Taxes and Insurance1,250 
General Expenses782 
Salaries3,300 
 34,00034,000

The following adjustments are to be made:
i Stock in hand on 31st March, 2019 was 3,250.
ii Depreciate Building at 5% and Furniture at 10%. Loose Tools are revalued at 5,000 at the end of the year.
iii Salaries 300 and taxes 120 are outstanding.
iv Insurance amounting to 100 is prepaid.
v Write off a further 100 as Bad-Debts and provision for Doubtful Debts is to be made equal to 5% on Sundry Debtors. vi Half of the stationery was used by the proprietor for his personal purposes

The solution of Question No 04 A Chapter No 20: –

Trading Account
Particular
AmountParticular
Amount
To Opening Stock A/c 3,460By Sales15,450 
To Purchases A/c5,475 Less: return20015,250
Less: Return1255,350   
   By Closing Stock 3,250
      
To Gross Profit 9,690   
  18,500  18,500
Profit & Loss Account
Particular
AmountParticular
Amount
Depreciation on Furniture (WN)  By Gross Profit 9,690
Building375 By Commission Received 375
Furniture64    
Loose Tools1,2501,689   
To Salaries3,300    
Add: Outstanding3003,600   
Old Bad Debts125    
Add: New Bad Debts100    
Add: New Provision (WN2)185    
Less: Old Provision200210   
To Taxes & Insurance1,250    
Add: Outstanding Taxes1201,270   
To Stationery450    
Less: Drawings 1/2225225   
To Interest 118   
To General Expenses 782   
      
To Net Profit A/c 2,171   
  10,065  10,065
Balance Sheet
Liabilities
AmountAssets
Amount
Capital12,500 Building7,500 
Add: Net Profit2,171 Less: Depreciation3757,125
Less: Drawings 1/2 ofStationery22514,446Furniture640 
Creditors 2,500Less: Depreciation64576
Outstanding Salaries 300Loose tools6,250 
Outstanding Taxes 120Less: Depreciation1,2505,000
Bank Overdraft 2,850Debtors3,800 
   Less: Further Bad Debts100 
   Less: Provision for Bad Debts1853,515
   Cash in Hand 650
   Closing Stock 3,250
   Prepaid Insurance 100
  20,216  20,216

Working Note: –

Calculation of Depreciation

Depreciation on Buildings=5X7,500
100
 =Rs 375  
Depreciation on Furniture=10X640
100
 =Rs 64  

Depreciation on Patents = 6, 250 −5, 000 = 1, 250

Calculation of Provision for Doubtful Debts

Provision for Doubtful Debts = Sundry Debtors −Further Bad Debts × Rate 100

Provision for Doubtful Debts=5X3,800 – 100
100
 =Rs 185  

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 04 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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