Question No 23 Chapter No 17 - USHA Publication 11 Class

Question No 23 Chapter No 17

Table of Contents

The solution of Question No 23 Chapter No 17:-

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

Trading and Profit & Loss Account and Balance Sheet

23. With the help of the following balance of Johan Smith prepares Trading and Profit & Loss Account and Balance Sheet. The closing stock o 31st March 2019 was valued at Rs 7,860.

Debit Balance	Rs	Debit Balance	Rs
Opening stock	4,600	Audit fees	111
Sale return	860	Insurance	380
Purchases	24,230	Cash in hand	38
Freight	1,860	Deposited with Mr. Parker	3,000
Rent & Taxes	570	Drawing	1,000
Salaries and Wages	930	Credit Balance
Interest	90	Capital	10,809
Postage and Telegram	1,460	Purchases retune	580
Cash at bank	820	Sales	28,960
Investment	500	Sundry creditor	1,320
Furniture & Fixtures	180	Bank Overdraft	2,000
Discount	734	Commission	369
Office expenses	300

The solution of Question No 23 Chapter No 17:-

Trading A/c
Particular		Amount	Particular		Amount
To Opening Stock A/c		4,600	By Sale A/c	28,960
To Purchases A/c	24,320		Less: return	860	28,100
Less: Return	580	23,650	By Closing Stock		7,860
To Freight A/c		1,860
To Gross Profit A/c		5,850
		35,960			35,960

Profit/Loss A/c
Particular	Amount	Particular	Amount
To Rent & Taxes A/c	570	By Gross Profit A/c	5,850
To Salaries A/c	930	By Income from investment A/c	25
To Interest A/c	90	By Commission A/c	369
To Postage and Telephone A/c	1,460
To Discount allowed A/c	734
To Office Exp. A/c	300
To Audit fees A/c	111
To Insurance A/c	380
To Net profit A/c	1,669
	6,244		6,244

Balance Sheet
Labilities		Amount	Assets	Amount
Capital A/c	10,809		Cash in hand	38
Add: Net Profit	1,669		Cash at bank	820
Less: Drawing	1,000	11,478	S. Debtors	2,400
S. Creditor		1,320	Investment	500
Bank Overdraft		2,000	Furniture & Fixtures	180
			Deposit with Mr Parker	3,000
			Closing Stock	7,860
		14,798		14,798