Question No 23 Chapter No 18
23.From the following balances, prepare Trading and Profit and Loss Account and the Balance Sheet:
| Debit Balances: | Debit Balances | ||
| Machinery | 2,00,000 | Opening Stock | 2,00,000 |
| Building | 1,50,000 | Rent | 45,000 |
| Debtors | 2,70,000 | Sundry Expenses | 20,000 |
| Drawings | 90,000 | Carriage | 15,000 |
| Purchases | 9,50,000 | Credit Balances: | |
| Wages | 5,00,000 | Capital | 10,00,000 |
| Bed Debts | 10,000 | Creditors | 1,40,000 |
| Bank | 1,50,000 | Sales | 14,50,000 |
| Commission | 10,000 |
Closing Stock was of 70,000 but its net realizable value was estimated at 60,000.
The solution of Question No 23 Chapter No 18:-
Financial Statement of M/s. Mangal & Sons
| Trading Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Opening Stock | 2,00,000 | By Sales | 14,50,000 | ||
| To Purchases | 9,50,000 | ||||
| To Carriage | 15,00 | By Closing Stock | 60,000 | ||
| To Wages | 5,00,000 | ||||
| By Gross Loss | 1,55,000 | ||||
| 16,65,000 | 16,65,000 | ||||
| Profit and Loss Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Gross Loss | 1,55,000 | By Commission | 10,000 | ||
| To Bad Debts | 10,000 | ||||
| To Rent | 45,000 | ||||
| To Sundry Expenses | 20,000 | ||||
| By Net Loss | 2,20,000 | ||||
| 2,30,000 | 2,30,000 | ||||
| Balance Sheet |
|||||
| Particular |
Amount | Particular |
Amount | ||
| Capital | 10,00,000 | Building | 1,50,000 | ||
| Less: Net Loss | 2,20,000 | Machinery | 2,00,000 | ||
| Less: Drawings | 90,000 | 6,90,000 | Closing Stock | 60,000 | |
| Creditors | 1,40,000 | Debtors | 2,70,000 | ||
| Bills Payable | 3,150 | Bank | 1,50,000 | ||
| 8,30,000 | 8,30,000 | ||||
Note: Closing Stock is recorded at cost price or market price which is lower
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Final Accounts: Meaning, 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 previous Chapters: –
-
- Chapter No. 1 – Introduction to Accounting
- Chapter No. 2 – Basic Accounting Terms
- Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
- Chapter No. 4 – Bases of Accounting
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book
- Chapter No. 11 – Special Purpose Books II – Other Books
- Chapter No. 12 – Bank Reconciliation Statement
- Chapter No. 13 – Trial Balance
- Chapter No. 14 – Depreciation
- Chapter No. 15 – Provisions and Reserves
- Chapter No. 16 – Accounting for Bills of Exchange
- Chapter No. 17 – Rectification of Errors
- Chapter No. 18 – Financial Statements of Sole Proprietorship
- Chapter No. 19 – Adjustments in preparation of Financial Statements
- Chapter No. 20 – Accounts from incomplete Records – Single Entry System
- Chapter No. 21 – Computers in Accounting
- Chapter No. 22 – Accounting Software – Tally
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book
Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication
T.S. Grewal’s Double Entry Book Keeping
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