Question No 08 Chapter No 18

Question No 08 Chapter No 18

Expenses & Income Expenses

08. Prepare Trading and Profit & Loss Account and Balance sheet from the following balances, related to the year ending 31st march 2018

ParticularAmountParticularAmount
Capital1,00,000Wages50,000
Creditor12,000Bank10,000
Return outwards5,000Repair500
Sales1,64,000Stock(1-4-2017)20,000
Bills payable5,000Rent4,000
Plant & machinery40,000Manufacturing expenses8,000
Sundry Debtors24,000Trade Expenses7,000
Drawing10,000Bad debts2,000
Purchases1,05,000Carriage1,500
Return inwards3,000Fuel & power1,000

Adjustments:

  1. The closing stock was valued at Rs 14,500
  2. Depreciate on plant & machinery Rs 4,000
  3. Commission due but not paid Rs 5,000
  4. A sum of Rs 400 is due for repair

The Content covered in this article:

 

The solution of Question No 08 Chapter No 18:-

Trading Account
Particular
AmountParticular
Amount
To Opening Stock A/c 20,000By Sale A/c1,64,000 
To Purchases A/c1,05,000 Less: Return3,0001,61,000
Less: Return5,0001,00,000By Closing Stock 14,500
To Wages A/c 50,000   
To Carriage A/c 1,500   
To Fuel and power A/c 1,000   
To Manufacturing Exp. A/c 8,000   
   By Gross Loss A/c 5,000
  1,80,500  1,80,500

 

Profit/Loss Account
Particular
AmountParticular
Amount
To Gross Loss A/c 5,000   
To Rent A/c 4,000   
To Repair A/c500    
Add: outstanding Repair400900   
To Trade Expenses A/c 7,000   
To Bad debts A/c 2,000   
To Dep. On Machinery A/c 4,000   
To Outstanding Commission A/c 5,000   
   By Net Loss A/c 27,900
  27,900  27,900

 

Balance Sheet
Labilities
AmountAssets
Amount
Capital A/c1,00,000 Plant & machinery40,000 
Less : Net Loss27,900 Less: Depreciation4,00036,000
Less: Drawing10,00062,100Debtors 24,000
Bills Payable 5,000Bank 10,000
Creditor 12,000Closing Stock 14,500
Outstanding Commission 5,000   
Outstanding repair 400   
  84,500  84,500

 

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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