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.

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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

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

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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

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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