Question No 19 Chapter No 18 - USHA Publication 11 Class

Question No 19 Chapter No 18

Table of Contents

The solution of Question No 19 Chapter No 18:-

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

Interest on Drawings

19. From the following trail balance of Kabul Singh prepare Trading and profit & Loss account for the year ended 31st march 2019 and balance sheet as on that date:

Debit balances	Rs	Credit balances	Rs
Building	70,000	Capital	92,000
Motor Trucks	12,000	Creditors	18,852
Furniture	1,640	Bills payables	6,930
Debtors	15,600	Sales	1,21,850
Opening stock	15,040	Interest	340
Cash in hand	988	Apprentice premium	1,320
Purchases	87,522	Purchases return	2,000
Carriage inwards	1,291
Carriage outwards	800
Cash at bank	14,534
Bills receivable	5,844
General expenses	6,085
Insurance	613
Bad debts	783
Audit fees	300
Travelling expenses	425
Discount	420
Sales return	485
Investments	8,922
	2,43,292		2,43,292

Adjustments:

Purchases include purchases of furniture Rs 2,600
Goods are withdrawn by the proprietor for personal sue Rs 5,500
Goods distributed as free samples Rs 1,800
Goods donated to orphanage Rs 1,400
Goods of the value of Rs 3,000were used in the construction of the building
Stock at the end of the year Rs 35,000

The solution of Question No 19 Chapter No 18:-

Trading Account
Particular		Amount	Particular		Amount
To Opening Stock A/c		15,040	By Sale A/c	1,21,850
To Purchases A/c	87,522			485	1,21,365
Less: furniture	2,600		By Closing Stock		35,000
Less: drawings	5,500
Less: Free samples	1,800
Less: Donation	1,400
Less: Building	3,000
Less: Return	2,000
Add: Additional Purchases	(8,000)	79,222
To Carriage Inwards A/c		1,921
To Gross Profit A/c		60,812
		1,56,365			1,56,365

Profit/Loss Account
Particular	Amount	Particular	Amount
To Carriage outwards A/c	800	By Gross Profit A/c	60,812
To General Exp. A/c	6,085	By Interest A/c	340
To Insurance	613	By apprentice premium A/c	1,320
To bad debts	783
To Audit fee A/c	300
To Travelling Exp.	425
To Discount	420
To Advertisement	1,800
To Donation	1,400
To Net Profit A/c	49,846
	62,472		62,472

Balance Sheet
Labilities		Amount	Assets		Amount
Capital A/c	92,000		Building	70,000
Add: net Profit	49,846		Add: Addition	3,000	73,000
Less: Drawing	5,500	1,36,346	Debtors		15,600
Creditor	18,852		Bills receivable		5,844
Additional purchases	8,000	26,852	Investment		8,922
Bills Payable		6,930	Furniture	1,640
			Add: Addition	2,600	4,240
			Closing Stock		35,000
			Cash in hand		988
			Cash at bank		14,534
		1,70,128			1,70,128