Question No 24 Chapter No 17

Question No 24 Chapter No 17

Trading and Profit & Loss Account and Balance Sheet

24. Abraham Started a business on 1st April 2018. Stock on 31st March 2019 was Rs 15,000. from the following figures extracted from his book prepare Trading Account and Profit & Loss Account for the year ending 31st March 2019 and balance sheet as of that date

Ledger AccountDr. Balance Cr. Balance
Machinery & Plant12,000 
Freehold premises24,000 
Wages14,500 
Purchases60,000 
Cash in hand 500 
Salaries2,000 
Carriage800 
Rent700 
Insurance500 
Abraham’s Drawing3,200 
Sundry debtors2,800 
Motive power, heating & Lighting1,600 
Interest on loan 200 
Carriage outwards300 
Bills receivable1,900 
Sales 80,000
Sundry creditor 3,000
Bill payable 2,500
Bankers 2,500
Loan on mortgages 7,000
Abraham’s Capital 30,000
 1,25,0001,25,000

 

The Content covered in this article:

The solution of Question No 24 Chapter No 17:-

 

Trading A/c
Particular
AmountParticular
Amount
To Opening Stock A/c 60,000By Sale A/c 80,000
To Purchases A/c 14,500   
To carriage A/c 800By Closing Stock 15,000
To M.Power, lighting,heating A/c 1,600   
To Gross Profit A/c 18,100   
  95,000  95,000

 

Profit/Loss A/c
Particular
AmountParticular
Amount
To Salaries A/c 2,000By Gross Profit A/c 18,100
To Rent A/c 700   
To Insurance A/c 500   
To Interest on loan A/c 200   
To Carriage A/c 300   
To Net profit A/c 14,400   
  18,100  18,100

 

Balance Sheet
Labilities
AmountAssets
Amount
Capital A/c30,000 Cash in hand 500
Add: Net Profit14,400 S. Debtors 2,800
Less: Drawing3,20041,200Bill Receivable 1,900
S. Creditor 3,000Closing Stock 15,000
Bills Payable 2,500Machinery 12,000
Bankers 2,500Freehold premises 24,000
Laon on Mortgage 7,000   
  56,200  56,200

 

 

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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