Question No 13 Chapter No 18 - USHA Publication 11 Class

Question No 13 Chapter No 18

Table of Contents

The solution of Question No 13 Chapter No 18:-

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

Opening stock Valuation

13.From the following trial balance extracted from the book of Shivam, prepare a trading account and profit & loss account for the year ending 31st march 2019 and balance sheet as of that date

Ledger Account	(Dr. Rs)	(Cr. Rs)
capital;	–	2,00,000
Drawing	17,000	–
Plant & machinery	1,20,000	–
Horses and carts	26,000	–
Debtors	36,000	–
Creditor	–	26,000
Purchases and sales	20,000	42,000
Wages	8,000	–
Cash in hand	26,000	–
Salaries	8,000	–
Repair	1,900	–
Opening stock	16,000	–
Rent	4,500	–
-manufacturing expenses	1,500
Bills payables	–	23,500
Bad debts	5,000	–
Carriage	1,600
	2,91,500	2,91,500

The following adjustments are to be made:

Closing stock Rs 16,000
Depreciation plant & machinery 10%; horses and carts 15%
Allow interest on capital at 5% p.a
1,500 is due for wages
Paid rent Rs 500 in advance

The solution of Question No 13 Chapter No 18:-

Trading Account
Particular		Amount	Particular	Amount
To Opening Stock A/c		16,000	By Sale A/c	42,000
To Purchases A/c		20,000
To Wages A/c	8,000		By Closing Stock	16,000
Add: outstanding wages	1,500	9,500
To Manufacturing Exp. A/c		1,500
To Carriage A/c		1,600
To Gross Profit A/c		9,400
		58,000		58,000

Profit/Loss Account
Particular		Amount	Particular	Amount
To Salaries A/c		8,000	By Gross Profit A/c	9,400
To Rent A/c	4,500
Less: rent prepaid	500	4,000
To Repair		200
To Bad debt A/c		9,500
To Dep. On plant & machinery		400
To Dep. On Horses & Carts		650
			By Net Loss A/c	35,400
		44,800		44,800

Balance Sheet
Labilities		Amount	Assets		Amount
Capital A/c	2,00,000		Horses & Carts	26,000
Add: interest on capital	10,000		Less: Depreciation	3,900	22,100
Less: net Loss	35,400		Debtors		36,000
Less: Drawing	17,000	1,57,600	Closing Stock		16,000
Creditor		26,000	Cash at bank		26,000
Bills payables		23,500	Rent prepaid		500
Wages due		1,500	Plant & machinery	1,20,000
			Less: Depreciation	12,000	1,08,000
		2,08,600			2,08,600