Question No 06 Chapter No 18

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

ParticularAmountAmount
Capital40,000
12% Loan10,000
Debtors & Creditor15,00016,000
Purchases & Sale25,00048,000
Return2,0001,000
Wages3,000
Cash in hand 2,000
Interest on loan 1,200
Furniture12,000
Packing expenses on purchases2,500
Drawing10,000
Machinery30,000
Commission5,000
Discount3,200300
Bank overdraft6,000
Production Tax900 
Establishment charges2,900
Bills payables 1,000
 1,18,5001,18,500

You are required to prepare Trading and Profit & Loss and balance sheet as on 31st March 2019 after considering the following adjustments:

  1. Closing stock was valued at Rs 11,000
  2. Wages not yet paid amounted Rs 500
  3. Commission earned but not received is Rs 800

The Content covered in this article:

 

The solution of Question No 06 Chapter No 18:-

Trading Account
Particular
AmountParticular
Amount
To Purchases A/c25,000 By Sale A/c48,000 
Less: Return1,00024,000Less: Return2,00046,000
To Wages A/c3,000 By Closing Stock 11,000
Add: outstanding Wages5003,500   
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
AmountParticular
Amount
To Discount A/c 3,200By Gross Profit A/c 26,100
To establishment charges A/c 2,900By Commission A/c5,000 
   Add: Accrued Commission8005,800
   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
AmountAssets
Amount
Capital A/c40,000 Debtors 15,000
Add: Net Profit27,300 Furniture 12,000
Less: Drawing10,00057,300Machine 30,000
Bills Payable 1,000Closing Stock 11,000
Creditor 16,000Accrued Commission 800
Outstanding Wages 50012% Laon 10,000
Bank Overdraft 6,000Cash in hand 2,000
  80,800  80,800

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

Also, Check out the solved question of all Chapters: –

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

Chapter No. 14 – Provisions and Reserves 

Chapter No. 15 – Bills of Exchange

Chapter No. 16 – Rectification of Errors 

Chapter No. 17 – Financial Statements – (Without Adjustments)

Chapter No. 18 – Financial Statements – (With Adjustments)

Leave a Reply

About us

About us, we are here to improve your knowledge in all financial & Business related topics and to get better carrier opportunities. The author has about 10-year Experience in tuition Business. It is very difficult to teach a large number of students with a personal touch or in a classroom. 

Animation's Resource websites

All Icons and images used on my website were downloaded from the following website please go and download free:-

close