Question No 10 Chapter No 18
Expenses & Income Expenses
10. A book keeper has submitted to you the following trial balance wherein the totals of debit and credit balance are not equal.
| Ledger Account | Debit Balance | Credit Balance |
| Capital | – | 76,700 |
| Cash in hand | – | 300 |
| Purchases | 89,900 | – |
| Sales | – | 1,10,600 |
| Cash in bank | 8,850 | – |
| Fixtures and fittings | 2,250 | – |
| Freehold premises | 15,000 | – |
| Lighting and heating | 650 | – |
| Bills receivable | – | 8,250 |
| Return inwards | – | 300 |
| Salaries | 10,750 | – |
| Creditor | – | 18,900 |
| Debtors | 57,000 | – |
| Stock on April 1,2019 | 30,000 | – |
| Printing | 2,250 | – |
| Bills payable | 18,750 | – |
| Rates taxes and insurance | 1,900 | – |
| Discount received | 4,450 | – |
| Discount allowed | 2,000 | |
| 2,41,750 | 2,17,050 |
You are required to
- Redraft the trial balance correctly
- Prepare trading and profit and loss account and a balance sheet after taking into account the following adjustments:
- Stock on hand on 31st March 2020 was valued at Rs 18,000
- Depreciation on fixtures and fittings by Rs 250
- Rs 350 was due and unpaid in respect of salaries
- Rates and insurance had been paid in advance to extent of Rs 400
- The opening stock has been at Rs 40% below cost
The solution of Question No 10 Chapter No 18:-
| Trail Balance A/c | |||
| Particulars |
J.F. | Debit | Credit |
| Capital | 76,700 | ||
| Cash in hand | 300 | ||
| Purchases | 89,900 | ||
| Sales | 1,10,600 | ||
| Cash at bank | 8,850 | ||
| Fixtures and fittings | 2,250 | ||
| Freehold premises | 15,000 | ||
| Lighting and Heating | 650 | ||
| Bill receivable | 8,250 | ||
| Return inwards | 300 | ||
| Salaries | 10,750 | ||
| Creditor | 18,900 | ||
| Debtors | 57,000 | ||
| Stock on 1-4-2019 | 30,000 | ||
| Printing | 2,250 | ||
| Bills payables | 18,750 | ||
| Rates, taxes and insurance | 1,900 | ||
| Discount received | 4,450 | ||
| Discount allowed | 2,000 | ||
| 2,29,400 | 2,29,400 | ||
| Trading Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Opening Stock A/c | 30,000 | By Sale A/c | 1,10,600 | ||
| Add: Undervaluation | 20,000 | 50,000 | Less: Return | 300 | 1,10,300 |
| (30000*40/100-40) | |||||
| To Purchases A/c | 89,900 | By Closing Stock | 18,000 | ||
| Less: Undervaluation of Stock | 20,000 | 69,900 | |||
| To Gross Profit A/c | 8,400 | ||||
| 1,28,300 | 1,28,300 | ||||
|
Profit/Loss Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Light & Heating A/c | 650 | By Gross Profit A/c | 8,400 | ||
| To Salaries A/c | 10,750 | By Discount received A/c | 4,450 | ||
| Add: outstanding Salaries | 350 | 11,100 | |||
| To Printing | 2,250 | ||||
| To Rates, taxes & Insurance A/c | 1,900 | ||||
| Less: prepaid | 400 | 1,500 | |||
| To Discount allowed A/c | 650 | ||||
| To Dep. On fixtures & fitting A/c | 250 | ||||
| By Net Loss A/c | 4,900 | ||||
| 17,750 | 17,750 | ||||
|
Balance Sheet |
|||||
| Labilities |
Amount | Assets |
Amount | ||
| Capital A/c | 76,700 | Fixtures & Fittings | 2,250 | ||
| Less : Net Loss | 4,900 | 71,800 | Less: Depreciation | 250 | 2,000 |
| Bills Payable | 18,750 | Freehold premises | 15,000 | ||
| Creditor | 18,900 | Bills receivable | 8,250 | ||
| Outstanding salaries | 350 | Debtors | 57,000 | ||
| Cash in hand | 300 | ||||
| Cash at bank | 8,850 | ||||
| Closing stock | 18,000 | ||||
| Prepaid Rates | 400 | ||||
| 84,500 | 84,500 | ||||
Final Accounts: Meaning, Definition and Explanation
Profit and Loss Account: Meaning, Format & Examples
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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
Chapter No. 3 – Origin of Transactions
Chapter No. 4 – Vouchers and transactions
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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
Chapter No. 14 – Provisions and Reserves
Chapter No. 15 – Bills of Exchange
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Chapter No. 16 – Rectification of Errors
Chapter No. 17 – Financial Statements – (Without Adjustments)