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

12% Loan10,000
Debtors & Creditor15,00016,000
Purchases & Sale25,00048,000
Cash in hand 2,000
Interest on loan 1,200
Packing expenses on purchases2,500
Bank overdraft6,000
Production Tax900 
Establishment charges2,900
Bills payables 1,000

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
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
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
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

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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. 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)

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