Question No 09 Chapter No 18
Expenses & Income Expenses
09. Prepare a Trading Account and Profit & Loss Account and a balance Sheet from the following information :
| (Dr. Balance) | Amount | (Cr. Balance) | Amount |
| Stock on 1-4-2017 | 42,000 | Sales | 9,170 |
| Purchases | 68.25 | Loans | 60,000 |
| Carriage | 600 | Discount | 850 |
| Wages | 12,000 | Commission | 680 |
| Power | 1,800 | Sundry Creditor | 6,000 |
| Furniture & fixtures | 4,000 | Capital | 30,000 |
| Investments | 6,000 | Provision for Depreciation | 250 |
| Freehold premises | 15,000 | ||
| Travelling expenses | 900 | ||
| Debtors | 1,000 | ||
| Interest | 400 | ||
| Bill receivable | 1,800 | ||
| Tools | 7,000 | ||
| Plant & Machinery | 30,000 | ||
| Bad debts | 200 | ||
| Drawings | 3,000 |
The following adjustments are to be made:-
- Stock on hand on 31-3-2018 was Rs 7,860
- Depreciate on plant & machinery @10%
- Wages Rs 700 are outstanding
- Commission receivable was Rs 100
The solution of Question No 09 Chapter No 18:-
| Trading Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Opening Stock A/c | 42,000 | By Sale A/c | 96,170 | ||
| To Purchases A/c | 68,250 | ||||
| To Wages A/c | 12,000 | By Closing Stock | 7,860 | ||
| Add: outstanding wages | 700 | 12,700 | |||
| To Carriage A/c | 600 | ||||
| To Power A/c | 1,800 | ||||
| By Gross Loss A/c | 21,320 | ||||
| 1,25,350 | 1,25,350 | ||||
| Profit/Loss Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Gross Loss A/c | 21,320 | By Discount A/c | 850 | ||
| To Travelling Expenses A/c | 900 | By Commission A/c | 680 | ||
| To Interest A/c | 400 | Add: accrued commission | 100 | 780 | |
| To Dep. On Plant & machinery A/c | 3,000 | By Provision for Bad debts | 250 | ||
| Less: Bad debts | 200 | 50 | |||
| By Net Loss A/c | 23,940 | ||||
| 25,620 | 25,620 | ||||
| Balance Sheet | |||||
| Labilities |
Amount | Assets |
Amount | ||
| Capital A/c | 30,000 | Plant & machinery | 30,000 | ||
| Less: Net Loss | 23,940 | Less: Depreciation | 3,000 | 27,000 | |
| Less: Drawing | 3,000 | 3,060 | Investment | 6,000 | |
| Loan | 60,000 | Debtors | 1,000 | ||
| Creditor | 6,000 | Bills receivable | 1,800 | ||
| Outstanding wages | 700 | Closing Stock | 7,860 | ||
| Furniture & Fitting | 4,000 | ||||
| Freehold premises | 15,000 | ||||
| Tools | 7,000 | ||||
| 69,760 | 69,760 | ||||
Note: To calculate the correct answer as per book we have to assumed Provision for Depreciation as provision for doubtful debts
Final Accounts: Meaning, Definition and Explanation
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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. 2 – Theory Base of Accounting
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Chapter No. 3 – Origin of Transactions
Chapter No. 4 – Vouchers and transactions
Chapter No. 6 – Accounting for Goods and Services Tax(GST)
Chapter No. 9 – Other Subsidiary Books
Chapter No. 10 – Journal Proper
Chapter No. 11 – Trial Balance
Chapter No. 12 – Bank Reconciliation Statement
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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)