Question No 23 Chapter No 17

Question No 23 Chapter No 17

Trading and Profit & Loss Account and Balance Sheet

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

Debtor AccountRsDebtor AccountRs
Opening stock4,600Audit fees111
Sale return860Insurance380
Purchases24,230Cash in hand 38
Freight1,860Deposited with Mr. Parker3,000
Rent & Taxes570Drawing1,000
Salaries and Wages930Credit Balance  
Interest90Capital10,809
Postage and Telegram1,460Purchases retune580
Cash at bank820Sales28,960
Investment500Sundry creditor 1,320
Furniture & Fixtures180Bank overdraft2,000
Discount734Commission369
Office expenses300  

 

The Content covered in this article:

The solution of Question No 23 Chapter No 17:-

 

Trading A/c
Particular
AmountParticular
Amount
To Opening Stock A/c 4,600By Sale A/c28,960 
To Purchases A/c24,320 Less: return86028,100
Less: Return58023,650By 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
AmountParticular
Amount
To Rent & Taxes A/c 570By Gross Profit A/c 5,850
To Salaries A/c 930By Income form investment A/c 25
To Interest A/c 90By 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   
  6,224  6,224

 

Balance Sheet
Labilities
AmountAssets
Amount
Capital A/c10,809 Cash in hand 38
Add: Net Profit1,669 Cash at bank 820
Less: Drawing1,00011,478S. Debtors 2,400
S. Creditor 1,320Investment 500
Bank overdraft 2,000Furniture & Fixtures 180
   Deposit with Mr Parker 3,000
   Closing Stock 7,860
  14,798  14,798

 

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of all Chapters: –

 

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

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

Chapter No. 14 – Provisions and Reserves 

Chapter No. 15 – Bills of Exchange

Chapter No. 16 – Rectification of Errors 

Chapter No. 17 – Financial Statements – (Without Adjustments)

Chapter No. 18 – Financial Statements – (With Adjustments)

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