Question No 07 Chapter No 18
Expenses & Income Expenses
07. The following trial balance is extracted from the books of Amritsar Steel store for the year ending 31st March 2019
| Particular | Amount | Amount |
| Opening stock | 40,000 | – |
| Purchases & Sales | 1,75,000 | 4,00,000 |
| Return | 10,000 | 15,000 |
| Drawing & Capital | 42,500 | 1,25,000 |
| Furniture | 75,00 | – |
| Interest | 1,000 | 4,000 |
| Commission | 2,000 | 12,000 |
| Discount | 3,500 | 2,500 |
| Salaries | 8,000 | – |
| Insurance | 2,000 | – |
| Wages | 1,500 | – |
| Building | 1,00,000 | – |
| Postage | 5,000 | – |
| Octroi duty | 4,500 | – |
| Bills Receivable & Payable | 25,000 | 7,000 |
| Debtors & Creditor | 48,000 | 10,000 |
| Advertisement | 10,500 | – |
| Cash | 22,000 | – |
| 5,75,500 | 5,75,500 |
You are required to prepare Trading and profit & loss account for the year ending 13st March 2019 after considering the following adjustment
- Closing stock on 31.3.20189 was valued at Rs 62,500
- Depreciate furniture To 10% p.a and building To 5%p.a.
- Insurance prepaid is Rs 500
- Commission received in advance Rs 2,000
- Interest Rs 250 has been earned but not yet received
- Salaries outstanding Rs 2,500 and Wages due Rs 400
The solution of Question No 07 Chapter No 18:-
| Trading Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Opening Stock A/c | 40,000 | By Sale A/c | 4,00,000 | ||
| To Purchases A/c | 1,75,000 | Less: Return | 10,000 | 3,90,000 | |
| Less: Return | 15,000 | 1,60,000 | By Closing Stock | 62,500 | |
| To Octroi Duty A/c | 4,500 | ||||
| To Wages A/c | 1,500 | ||||
| Add: outstanding Wages | 400 | 1,900 | |||
| To Gross Profit A/c | 2,46,100 | ||||
| 4,52,500 | 4,52,500 | ||||
| Profit/Loss Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Interest A/c | 3,200 | By Gross Profit A/c | 2,46,100 | ||
| To Discount A/c | 3,500 | By Interest A/c | 4,000 | ||
| To Salary A/c | 8,000 | Add: Accrued Interest | 250 | 4,250 | |
| Add: outstanding Salary | 2,500 | 10,500 | By Discount A/c | 2,500 | |
| To Insurance A/c | 2,000 | By Commission A/c | 12,000 | ||
| Less; Prepaid insurance | 500 | 1,500 | Less: Received in advance | 2,000 | 10,000 |
| To Postage A/c | 5,000 | ||||
| To Advertisement A/c | 10,500 | ||||
| To Dep. On furniture A/c | 7,500 | ||||
| To dep. On Building A/c | 5,000 | ||||
| To Commission A/c | 2,000 | ||||
| To Net Profit A/c | 27,300 | ||||
| 262850 | 262850 | ||||
| Balance Sheet | |||||
| Labilities |
Amount | Assets |
Amount | ||
| Capital A/c | 1,25,000 | Furniture | 75,000 | ||
| Add: Net Profit | 2,16,350 | Less: Depreciation | 7,500 | 67,500 | |
| Less: Drawing | 42,500 | 2,98,850 | Building | 1,00,000 | |
| Bills Payable | 7,000 | Less: Depreciation | 5,000 | 95,000 | |
| Creditor | 10,000 | Bill receivable | 25,000 | ||
| Outstanding Wages | 400 | Debtors | 48,000 | ||
| Outstanding Salaries | 2,500 | Cash | 22,000 | ||
| Commission received in advance | 2,000 | Closing Stock | 62,500 | ||
| Repaid Insurance | 500 | ||||
| Accrued Interest | 250 | ||||
| 3,20,750 | 3,20,750 | ||||
Final Accounts: Definition and Explanation
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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. 2 – Theory Base of Accounting
Chapter No. 3 – Origin of Transactions
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Chapter No. 4 – Vouchers and transactions
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
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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)