Question No 07 Chapter No 18

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

ParticularAmountAmount
Opening stock40,000
Purchases & Sales1,75,0004,00,000
Return10,00015,000
Drawing & Capital42,5001,25,000
Furniture75,00
Interest1,0004,000
Commission 2,00012,000
Discount3,5002,500
Salaries8,000
Insurance2,000
Wages1,500
Building1,00,000
Postage5,000
Octroi duty4,500
Bills Receivable & Payable 25,0007,000
Debtors & Creditor48,00010,000
Advertisement10,500
Cash 22,000
 5,75,5005,75,500

 

You are required to prepare Trading and profit & loss account for the year ending 13st March 2019 after considering the following adjustment

  1. Closing stock on 31.3.20189 was valued at Rs 62,500
  2. Depreciate furniture To 10% p.a and building To 5%p.a.
  3. Insurance prepaid is Rs 500
  4. Commission received in advance Rs 2,000
  5. Interest Rs 250 has been earned but not yet received
  6. Salaries outstanding Rs 2,500 and Wages due Rs 400

 

The solution of Question No 07 Chapter No 18:-

Trading Account
Particular
AmountParticular
Amount
To Opening Stock A/c 40,000By Sale A/c4,00,000 
To Purchases A/c1,75,000 Less: Return10,0003,90,000
Less: Return15,0001,60,000By Closing Stock 62,500
To Octroi Duty A/c 4,500   
To Wages A/c1,500    
Add: outstanding Wages4001,900   
To Gross Profit A/c 2,46,100   
  4,52,500  4,52,500

 

Profit/Loss Account
Particular
AmountParticular
Amount
To Interest A/c 3,200By Gross Profit A/c 2,46,100
To Discount A/c 3,500By Interest A/c4,000 
To Salary A/c8,000 Add: Accrued Interest2504,250
Add: outstanding Salary2,50010,500By Discount A/c 2,500
To Insurance A/c2,000 By Commission A/c12,000 
Less; Prepaid insurance5001,500Less: Received in advance2,00010,000
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   
  33,400  33,400

 

Balance Sheet
Labilities
AmountAssets
Amount
Capital A/c1,25,000 Furniture75,000 
Add: Net Profit2,16,350 Less: Depreciation7,50067,500
Less: Drawing42,5002,98,850Building1,00,000 
Bills Payable 7,000Less: Depreciation5,00095,000
Creditor 10,000Bill receivable 25,000
Outstanding Wages 400Debtors 48,000
Outstanding Salaries 2,500Cash 22,000
Commission received in advance 2,000Closing Stock 62,500
   Repaid Insurance 500
   Accrued Interest 250
  3,20,750  3,20,750

 

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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