Question No 12 Chapter No 18

Question No 12 Chapter No 18

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 balancesRsDebit balancesRs
Stock on 1-4-201512,000Interest paid on loan200
Purchases21,650Bills receivable1,800
Carriage inwards250Legal charges1,900
Carriage outwards600Plant & machinery25,000
Wages6,000Tools5,000
Motive power and heating and light1,600Credit balance 
Printing and stationery2,650Sales48,590
Sundry debtors21,100Reserve fund500
Furniture & fixtures2,000Loan account38,000
Investment4,000Discount received 580
Freehold premises7,340Sundry creditor2,430
Travelling expenses3,060Capital account42,710
Office expenses650  

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 Content covered in this article:

The solution of Question No 12 Chapter No 18:-

Trading Account
Particular
AmountParticular
Amount
To Opening Stock A/c 21,000By Sale A/c 48,590
To Purchases A/c 21,650   
To carriage inwards A/c 250By 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
AmountParticular
Amount
To Carriage Outwards A/c 600By Gross Profit A/c 16,090
To Printing and Stationery A/c2,660 By Discount received A/c 580
Less: stationery in hand2,160500   
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
AmountAssets
Amount
Capital A/c42,710 Furniture & Fixtures2,000 
Less : Net Loss9,82052,530Less: Depreciation1001,900
Loan 38,000Bill Receivable 1,800
Creditor 2,430Sundry Debtors 28,100
Outstanding salaries 500Stationery in hand 2,160
   Investment 4,000
   Closing stock 18,000
   Tools 5,000
   Plant & machinery25,000 
   Less: Depreciation2,50022,500
  93,460  93,460

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

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 

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)

Leave a Reply

About us

About us, we are here to improve your knowledge in all financial & Business related topics and to get better carrier opportunities. The author has about 10-year Experience in tuition Business. It is very difficult to teach a large number of students with a personal touch or in a classroom. 

Animation's Resource websites

All Icons and images used on my website were downloaded from the following website please go and download free:-

close