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Question No 09 Chapter No 14 – USHA Publication 11 Class

Question No 09 Chapter No 14
Q-09 - CH-14 - USHA +1 Book 2020 - Solution

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Question No 09 Chapter No 14

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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.Sinking Fund AccountCr.
DatParticulars
J. F.AmountDateParticulars
J.F.Amount
    31/03/15By Profit/Loss A/c 19,032
31/03/15By Balance C/d 19,032    
   19,032   19,032
    01/04/15By Balance b/d 19,032
    31/03/16By Interest A/c (19,032 x 5%) 952
    31/03/16By Profit/Loss A/c 19,032
31/03/16By Balance C/d 39,016    
   39,016   39,016
31/03/16To Sinking Fund Investment A/c (Loss on Sale) 1601/04/16By Balance b/d 39,016
    31/03/17By Interest A/c (39,016 x 5%) 1,951
31/03/17By General Reserve 59,98331/03/17By Profit/Loss A/c 19,032
   59,999   59,999

 

Dr.Sinking Fund Investment AccountCr.
DatParticulars
J.F.AmountDateParticulars
J.F.Amount
31/03/15To Bank A/c 19,032    
    31/03/16By Balance c/d 19,032
   19,032   19,032
01/04/16To Balance b/d 19,032    
31/03/17To Bank A/c 19,032    
    31/03/17By Balance c/d 39,016
   39,016   39,016
31/03/17To Bad debts A/c 39,01631/03/18By Bank A/c 39,000
    31/03/18By Sinking fund A/c 16
   39,016   39,016

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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 

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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

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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 

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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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