Question no 21 Chapter No 17 - Unimax Class 11

Question No 21 Chapter No 17 – Unimax Class 11

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The solution of Question No 21 Chapter No 17 – UNIMAX Class 11

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

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

Mandeep maintain incomplete records. An analysis of his cash book for the year ended 31st March,2020 is as follows:

	₹
Cash Receipts:
From sundry debtors	60,000
From cash sales	50,000
From Sharma, as additional capital 1st Oct.,2019	15,000
Total cash receipts	1,25,000
Cash Payments:
Cash purchases	30,000
Paid to creditors	25,000
Productive expenses	9,000
Salary paid	2,000
Sundry expenses	3,000
New furniture purchases	14,000
Private payments	5,000
Total cash payments	88,000

	31-3-2019	31-3-2020
Assets and Liabilities
Sundry Debtors	20,000
Sundry creditors	9,000
Cash	12,000
Stock	30,000	30,000
Furniture	9,000	15,000

Other information:

(1) Credit sales during the year were ₹ 60,000.
(2) Sales returns ₹ 4,000.
(3) Creditors purchases during the year were ₹ 35,000.
(4) Discount allowed to debtors ₹ 1,000.
(5) Discount received from creditors ₹ 300.
(6) Bad debts written off during the year were ₹ 2,000.

Adjustments:

(1) Write off further bad debts ₹ 2,000.
(2) Provide 10% from doubtful debt and 3% for discount on debtors.
(3) Allow interest on capital @ 15% p.a.
Prepare Trading and Profit and Loss A/c for the year ended 31st March, 2020 and Balance Sheet as at that date.

The solution of Question No 21 Chapter No 17 – UNIMAX Class 11

Total Debtors A/c

Particulars	Amount	Particulars	Amount
To Balance b/d (1-4-2019)	20,000	By cash received from debtors	60,000
To Credit sales	60,000	By Sales returns	4,000
		By Discount allowed	1,000
		By Bad debts	2,000
		By Balance c/d (Balance figure)	13,000
	80,000		80,000

Note: Only the amount of ‘Bad debts’ is recorded in total debtors account. The amount of ‘Further bad debts’ shown in adjustments is not recorded in it.

Total Creditors A/c

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Particulars	Amount	Particulars	Amount
To Cash paid to creditors	25,000	By Balance b/d (1-4-2019)	9,000
To Discount received	300	To Creditors purchase	35,000
To Balance c/d (31-3-2020) (Balance figure)	18,700
	44,000		44,000

Opening Balance Sheet
As at 1st April 2019

Liabilities	Amount	Assets	Amount
Sundry creditors	9,000	Cash in hand	12,000
Capital (Balance figure)	62,000	Sundry debtors	20,000
		Stock	30,000
		Furniture	9,000
	71,000		71,000

Trading and Profit and Loss A/c
For the year ending 31st March, 2020

Particulars		Amount	Particulars		Amount
To Opening stock		30,000	By Sales:
To Purchases:		5,50,000	Cash sales	50,000
Cash purchases	30,000		Credit sales	60,000
Credit purchases	35,000	65,000	Less: Sales returns	4,000	1,06,000
To Productive expenses		9,000	By Closing stock		30,000
To Gross Profit c/d		32,000
		1,36,000			1,36,000
To Salary		2,000	By Gross Profit B/d		32,000
To Sundry expenses		3,000	By Discount received		300
To Dep. on Furniture (14,000+9,000-15,000)		8,000
To Discount allowed		1,000
To Bad debts	2,000
Add: Further bad debt	2,000
Add: New provision	1,100	5,100
To Provision for discount		297
To Interest on capital
15% on 62,000	9,300
15% on 15,000 for 6 months	1,125	10,425
To Net profit		2,478
		32,300			32,300

Balance Sheet
As at 31st March, 2020

Liabilities		Amount	Assets		Amount
Sundry Creditors		18,700	Cash in hand
Capital	62,000		Opening balance	12,000
Add: Additional capital	15,000		Add: Total receipts	1,25,000
Add: Interest on capital	10,425		Less: Total payments	88,000	49,000
Add: Net Profit	2,478		Sundry debtors:	13,000
Less: Drawings	5,000	84,904	Less: Further bad debts	2,000
			Less: New provision for doubtful debts @ 10% on 11,000	1,100
			Less: Provision for discount @ 3% on 9,000	297	9,603
			Closing stock		30,000
			Furniture		15,000
		1,03,603			1,03,603