Question no 22 Chapter No 16 - Unimax Class 11

Question No 22 Chapter No 16 – Unimax Class 11

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The solution of Question No 22 Chapter No 16 – UNIMAX Class 11

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

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

Prepare Trading and Profit & Loss Account of UDHAM Singh for 2019 and his balance sheet on 31sts December 2019 after making necessary adjustments.

Debit balance	₹	Credit balance	₹
Opening stock 1.1.2019	10,000	Bank overdraft	25,000
Cash in hand	4,000
Purchases	70,000	Sales	90,000
Returns inwards	3,000	Capital	30,000
Building	30,000	Sundry creditors	21,000
Furniture and fittings	7,000	Bad debts reserve	2,000
Sundry debtors	30,000	Commission	2,000
Petty cash and stamps in hand	200
Carriage inwards	800
Salaries	11,000
Sundry Trade expenses	6,000
Interest charged by bank	500
Insurance paid for a year up to 30.6.2020	1,000
Telephone charges	500
	1,74,000		1,74,000

Also consider the following::

(1) Stock of goods 31.12.2019 ₹ 15,000.
(2) Building and Furniture are to be depreciation 2 10% and 20% respectively.
(3) Bad debts ₹ 1,000 are to be written off reserve of 5% is to be kept on remaining debtors.
(4) Commission received in advance ₹ 1,000.

The solution of Question No 22 Chapter No 16 – UNIMAX Class 11

Trading and Profit & Loss A/c of UDHAM Singh For the year ended 31st Dec., 2019
Particulars		Amount	Particulars		Amount
To Opening stock		10,000	By sales	90,000
To purchases	70,000		Less: Returns inwards	3,000	87,000
Less: Returns outwards	4,000		closing stock		15,000
To Carriage Inwards		800
To Gross Profit (transferred to P & L A/c)		25,200
		1,02,000			1,02,000
To Salaries		11,000	By Gross Profit b/d		25,200
To Sundry Trade expenses		6,000	By Commission	2,000
To interest		500	Less: Advance commission	1,000	1,000
To Insurance	1,000
Less: Prepaid insurance	500	500
To Telephone charge		500
To Bad debts	1000
Add; New Reserve for bad debts	1,450
Less: Old bad debts reserve	2,000	450
To Depreciation on Building		3,000
To Depreciation on Furniture		1,400
To Net Profit (Transferred to capital)		2,850
		26,200			26,200

Balance Sheet OF UDHAM SINGH as on 31st Dec 2019
Liabilities		Amount	Assets		Amount
Capital	30,000		Cash in hand		4,000
Add: Net Profit	2,850	32,850	Building	30,000
Sundry creditors		21,000	Less: Depreciation	3,000
Advance commission		1,000	Furniture Fitting	7,000
Bank Overdraft		25,000	Less: Depreciation	1,400
			Sundry debtors	30,000
			Less: Bad debts	1,000
				29,000
			Less: New reserve for bad debts	1,450	27,550
			Petty cash and stamps in hand		200
			Prepaid insurance		500
			Closing stock		15,000
		79,850			79,850