Question No 09 Chapter No 14 – USHA Publication 11 Class

Question No 09 Chapter No 14

Question No 09 Chapter No 14

Sinking fund for Repayment of Loan

9. On 1srt April 2015 a company abstained a loan of Rs 60,000 from a finance company, which was repayable after three years. A sinking fund was created for the repayment of the loan and every year the amount provided was invested in an investment earning 5% p.a. Sinking Fund table shows that Re. 0.317200 invested each year at 5% will amount to Re. 1 after three years at compound interest. The investment was sold for Rs 39,000 at the and of third year and loan being repaid.
Given necessary accounts in the books of the company

The solution of Question No 09 Chapter No 14: –

Dr. Provision for Doubtful Debts A/c Cr.
Dat Particulars
J.F. Amount Date Particulars
J.F. Amount
        31/03/15 By Balance b/d   19,032
31/03/15 By Balance C/d   19,032        
      19,032       19,032
31/03/18 To Bad debts A/c   1,896 01/04/15 By Balance b/d   19,032
        31/03/16 By Interest A/c(19,032 x 5%)   952
        31/03/16 By Profit/Loss A/c   19,032
31/03/16 By Balance C/d   39,016        
      39,016       39,016
31/03/16 To Bad debts A/c   2,016 01/04/16 By Balance b/d   39,016
        31/03/17 By Interest A/c(39,016 x 5%)   1,951
31/03/17 By Balance C/d   59,999 31/03/17 By Profit/Loss A/c   19,032
      59,999       59,999

 

Dr. Provision for Doubtful Debts A/c Cr.
Dat Particulars
J.F. Amount Date Particulars
J.F. Amount
31/03/15 To Bank A/c   19,032        
        31/03/16 By Balance c/d   19,032
      19,032       19,032
01/04/16 To Balance b/d   19,032        
31/03/17 To Bank A/c   19,032        
        31/03/17 By Balance c/d   39,016
      39,016       39,016
31/03/17 To Bad debts A/c   39,016 31/03/18 By Bank A/c   39,000
        31/03/18 By Sinking fund A/c   16
      39,016       39,016

 


Thanks, Please Like and share with your friends  

Comment if you have any question.

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

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

 

 

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.