Question No 06 Chapter No 18
Expenses & Income Expenses
06. Sri Jai Prakash has supplied to you the following trial balance as of 31st March 2018
| Particular | Amount | Amount |
| Capital | – | 40,000 |
| 12% Loan | 10,000 | – |
| Debtors & Creditor | 15,000 | 16,000 |
| Purchases & Sale | 25,000 | 48,000 |
| Return | 2,000 | 1,000 |
| Wages | 3,000 | – |
| Cash in hand | 2,000 | – |
| Interest on loan | – | 1,200 |
| Furniture | 12,000 | – |
| Packing expenses on purchases | 2,500 | – |
| Drawing | 10,000 | – |
| Machinery | 30,000 | – |
| Commission | – | 5,000 |
| Discount | 3,200 | 300 |
| Bank overdraft | – | 6,000 |
| Production Tax | 900 | |
| Establishment charges | 2,900 | – |
| Bills payables | 1,000 | |
| 1,18,500 | 1,18,500 |
You are required to prepare Trading and Profit & Loss and balance sheet as on 31st March 2019 after considering the following adjustments:
- Closing stock was valued at Rs 11,000
- Wages not yet paid amounted Rs 500
- Commission earned but not received is Rs 800
The solution of Question No 06 Chapter No 18:-
| Trading Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Purchases A/c | 25,000 | By Sale A/c | 48,000 | ||
| Less: Return | 1,000 | 24,000 | Less: Return | 2,000 | 46,000 |
| To Wages A/c | 3,000 | By Closing Stock | 11,000 | ||
| Add: outstanding Wages | 500 | 3,500 | |||
| To Production Tax A/c | 900 | ||||
| To Packing Expenses A/c | 2,500 | ||||
| To Gross Profit A/c | 26,100 | ||||
| 57,000 | 57,000 | ||||
| Profit/Loss Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Discount A/c | 3,200 | By Gross Profit A/c | 26,100 | ||
| To establishment charges A/c | 2,900 | By Commission A/c | 5,000 | ||
| Add: Accrued Commission | 800 | 5,800 | |||
| By Discount A/c | 300 | ||||
| By Interest on loan A/c | 1,200 | ||||
| To Net Profit A/c | 27,300 | ||||
| 33,400 | 33,400 | ||||
| Balance Sheet | |||||
| Labilities |
Amount | Assets |
Amount | ||
| Capital A/c | 40,000 | Debtors | 15,000 | ||
| Add: Net Profit | 27,300 | Furniture | 12,000 | ||
| Less: Drawing | 10,000 | 57,300 | Machine | 30,000 | |
| Bills Payable | 1,000 | Closing Stock | 11,000 | ||
| Creditor | 16,000 | Accrued Commission | 800 | ||
| Outstanding Wages | 500 | 12% Laon | 10,000 | ||
| Bank Overdraft | 6,000 | Cash in hand | 2,000 | ||
| 80,800 | 80,800 | ||||
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
Chapter No. 15 – Bills of Exchange
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Chapter No. 16 – Rectification of Errors
Chapter No. 17 – Financial Statements – (Without Adjustments)