# Question No 09 Chapter No 14 – USHA Publication 11 Class

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

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## 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)