Question No 14 Chapter No 18 - USHA Publication 11 Class

Question No 14 Chapter No 18

Table of Contents

The solution of Question No 14 Chapter No 18:-

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

Opening stock Valuation

14.Th following trail balances has been extracted from the books of Shamsher Singh on 31st March 2018

Debit balances	Rs	Credit balances	Rs
Machinery	40,000	Capital	90,000
Cash in hand	10,000	Sales	1,60,000
Cash at bank	5,000	Sundry Creditor	45,000
Wages	10,000	Interest received	3,000
Purchases	80,000
Stock 1-4-2017	60,000
Sundry Debtors	44,000
Bills receivable	29,000
Rent	4,500
Commission	2,500
General expenses	8,000
Salaries	5,000
	2,98,000		2,98,000

Provide for interest on capital at 5% p.a. Depreciation at 10% ; wages outstanding amount to Rs 500; rent prepaid amounts to Rs 1,000; stock on 31-3-2018 Rs 80,000.
Prepare Trading and Profit & Loss account for the year ending 31st March 2018 and balance sheet as 31st March 2018

The solution of Question No 14 Chapter No 18:-

Trading Account
Particular		Amount	Particular	Amount
To Opening Stock A/c		60,000	By Sale A/c	1,60,000
To Purchases A/c		80,000
To Wages A/c	10,000		By Closing Stock	80,000
Add: outstanding wages	500	10,500
To Gross Profit A/c		89,500
		2,40,000		2,40,000

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Profit/Loss Account
Particular		Amount	Particular	Amount
To Commission A/c		2,500	By Gross Profit A/c	89500
To Rent A/c	4,500		By Intrest received A/c	3000
Less: rent prepaid	500	3,500
To general exp.		8,000
To Salaries A/c		5,000
To Interest on capital		4,500
To Dep. On machinery		4,000
To Net Profit A/c		65,000
		92,500		92,500

Balance Sheet
Labilities		Amount	Assets		Amount
Capital A/c	90,000		Machinery	40,000
Add: interest on capital	4,500		Less: Depreciation	4,000	36,000
Add: net Profit	65,000	1,59,500	Cash at bank		10,000
Sundry Creditor		45,000	Cash in hand		5,000
Wages Due		500	Sundry Debtors		44,000
			Bills Receivable		29,000
			Closing Stock		80,000
			Rent prepaid		1,000
		2,05,000			2,05,000