Question no 24 Chapter No 17 - Unimax Class 11

Question No 24 Chapter No 17 – Unimax Class 11

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The solution of Question No 24 Chapter No 17 – UNIMAX Class 11

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

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

A trader, who has not kept a complete set of books, asks you to prepare his final accounts for the year ended 31st March, 2020. You are, however, able to obtain the following information:
Summary of cash book
Balance of cash on 1st April,2019 ₹ 80,000; Taking (received from debtors) ₹ 5,00,000; Drawings ₹ 50,000; Payment to Creditors ₹ 4,00,000; Salaries ₹ 40,000; Rent ₹ 30,000; Electricity charges ₹ 8,000; Advertising ₹ 7,000; Printing and Stationery ₹ 1,000.
His other Assets and Liabilities

	31-3-2019	31-3-2020
Debtors	50,000	70,000
Creditors	30,000	50,000
Outstanding Rent	4,000	4,000
Outstanding Electricity charges	200	500
Outstanding Advertising		1,000

The stock on 31st March, 2020 was valued at ₹ 70,000 but the trade has no record or the stock on 31st March, 2019. He informs you, however, that he invariably sells his goods at cost plus 20%. Prepare his Trading & Profit and Loss A/c for the year ended 31st Mach, 2020 and his Balance sheet as at that date.

The solution of Question No 24 Chapter No 17 – UNIMAX Class 11

Cash book

Receipts	Amount	Payments	Amount
To Balance b/d (1-4-2019)	80,000	By Drawings	50,000
To Receipts from debtors	5,00,000	By Payments to Creditors	4,00,000
		By Salaries A/c	40,000
		By Rent A/c	30,000
		By Electricity charges A/c	8,000
		By Advertising A/c	7,000
		By Printing & Stationery A/c	1,000
		By Balance c/d (31-3-2020)	44,000
	5,80,000		5,80,000

Total Debtors A/c

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Particulars	Amount	Particulars	Amount
To Balance b/d (1-4-2019)	50,000	By cash received	5,00,000
To Received from debtors	5,20,000	By Balance c/d (31-3-2020)	70,000
	5,70,000		5,70,000

Total Creditors A/c

Particulars	Amount	Particulars	Amount
To Cash paid	4,00,000	By Balance b/d (1-4-2019)	30,000
To Balance c/d (31-3-2020)	50,000	To Creditors purchases (Balance figure)	4,20,000
	4,50,000		4,50,000

Opening Balance Sheet
As at 1st April 2019

Liabilities	Amount	Assets	Amount
Creditors	30,000	Cash in hand	80,000
Outstanding Rent	4,000	Debtors	50,000
Outstanding electricity charges	200	Stock	66,000
Capital (Balance figure)	1,61,800
	1,96,000		1,96,000

Trading and Profit and Loss A/c
For the year ending 31st March, 2020

Particulars		Amount	Particulars	Amount
To Opening stock		66,000	By Sales:	5,20,000
To Purchases:		4,20,000	By Closing stock	70,000
To Gross Profit on sales 5,20,000*20/100		1,04,000
		5,90,000		5,90,000
To Salaries		40,000	By Gross Profit B/d	1,04,000
To Rent	30,000
Less: Outstanding rent of last year	4,000
	26,000
Add: Outstanding rent of this year	4,000	30,000
To Electricity charges	8,000
Less: Electricity charges of last year	200
Add: Outstanding electricity charges of this year	500	8,300
To Advertising	7,000
Add: Outstanding advertising	1,000	8,000
To Printing & Stationery		1,000
To Net profit		16,700
		1,04,000		1,04,000

Balance Sheet
As at 31st March, 2020

Liabilities		Amount	Assets	Amount
Creditors		50,000	Cash in hand	44,000
Outstanding expenses			Debtors	70,000
Rent	4,000		Stock	70,000
Electricity charges	5,00
Advertising	1,000	5,500
Capital	1,61,800
Add: Net Profit	16,700
Less: Drawing	50,000	1,28,500
		1,84,000		1,84,000