Question No 12 Chapter No 18 - USHA Publication 11 Class

Question No 12 Chapter No 18

Table of Contents

The solution of Question No 12 Chapter No 18:-

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

Opening stock Valuation

12. D. Morarji’s books show the following balances. You are required to prepare his trading and profit & loss account and balances sheet from the following information:

Debit balances	Rs	Debit balances	Rs
Stock on 1-4-2015	12,000	Interest paid on loan	200
Purchases	21,650	Bills receivable	1,800
Carriage inwards	250	Legal charges	1,900
Carriage outwards	600	Plant & machinery	25,000
Wages	6,000	Tools	5,000
Motive power and heating and light	1,600	Credit balance
Printing and stationery	2,650	Sales	48,590
Sundry debtors	21,100	Reserve fund	500
Furniture & fixtures	2,000	Loan account	38,000
Investment	4,000	Discount received	580
Freehold premises	7,340	Sundry creditor	2,430
Travelling expenses	3,060	Capital account	42,710
Office expenses	650

Depreciation furniture and fixtures 5% plant & machinery 10% stationery in hand on 31st March 2016 was Rs 2,160 stock on 31st March 2016 was Rs 18,000

The solution of Question No 12 Chapter No 18:-

Trading Account
Particular	Amount	Particular	Amount
To Opening Stock A/c	21,000	By Sale A/c	48,590
To Purchases A/c	21,650
To carriage inwards A/c	250	By Closing Stock	18,000
To Wages A/c	6,000
To Motive power A/c	1,600
To Gross Profit A/c	61,090
	66,590		66,590

Profit/Loss Account
Particular		Amount	Particular	Amount
To Carriage Outwards A/c		600	By Gross Profit A/c	16,090
To Printing and Stationery A/c	2,660		By Discount received A/c	580
Less: stationery in hand	2,160	500
To interest on the loan		200
To Legal charges A/c		1,900
To Travelling Exp.		400
To office exp. A/c		650
To Dep. On furniture & fixtures		100
To Dep. On plant & machinery		2,500
To Net Profit A/c		9,820
		16,670		16,670

Balance Sheet
Labilities		Amount	Assets		Amount
Capital A/c	42,710		Furniture & Fixtures	2,000
Less : Net Loss	9,820	52,530	Less: Depreciation	100	1,900
Loan		38,000	Bill Receivable		1,800
Creditor		2,430	Sundry Debtors		28,100
Outstanding salaries		500	Stationery in hand		2,160
			Investment		4,000
			Closing stock		18,000
			Tools		5,000
			Plant & machinery	25,000
			Less: Depreciation	2,500	22,500
		93,460			93,460