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Question No 26 Chapter No 16 – Unimax Class 11
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Following are the Extracts from the Trail Balance of a firm:
Trial Balance as at 31.3.2020
| Particulars | Debit | Credit | |
| Sundry creditors | 1,20,000 | ||
| Discount received | 4,000 | ||
| Reserve for discount on creditors | 7,600 | ||
Adjustment information:
((1) Additional discount received from creditors after closing the account ₹ 4,600.
(2) Create a reserve for discount on creditors @ 5%.
You are required to pass the necessary journal entries. Prepare reserve for discount on creditors A/c and show how the various items would appear in the final accounts.
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The solution of Question No 26 Chapter No 16 – UNIMAX Class 11
Journal | |||||||
| Date | Particulars | Debit | Credit | ||||
| 31.3.2020 | Sundry creditors A/c | Dr. | 4,600 | ||||
| To Discount A/c | 4,600 | ||||||
| (Being additional discount received from sundry creditors) | |||||||
| 31.3.2020 | Discount A/c | Dr. | 8,600 | ||||
| To Reserve for discount on creditor A/c | 8,600 | ||||||
| (Being transfer of discount received account of its provision account) | |||||||
| 31.3.2020 | Reserve for Discount on creditors A/c | Dr. | 7,000 | ||||
| To Profit & Loss A/c | 7,000 | ||||||
| (Being created to Profit & Loss A/c for maintain a reserve for discount @ 5% on creditors) | |||||||
| Reserve for discount on creditors A/c | ||||
| Particulars | Amount | Particulars | Amount | |
| To balance b/d | 7,600 | By Discount | 8,600 | |
| To P&L A/c | 7,000z | By Discount (5% 1,20,000) | 6,000 | |
| 14,600 | 14,600 | |||
| Profit & Loss A/c For the year ended 31st March,2020 | |||||
| Particulars | Amount | Particulars | Amount | ||
| By Discount | 4,000 | ||||
| Add: Add. Discount | 4,600 | ||||
| 8,600 | |||||
| Add: New Discount | 6,000 | ||||
| 14,600 | |||||
| Less: Old Discount | 7,600 | 7,000 | |||
| Balance Sheet As at 31st March, 2020 | |||||
| Liabilities | Amount | Assets | Amount | ||
| Sundry creditors | 1,20,000 | ||||
| Less: Reserve for discount on creditors | 6,000 | 1,14,000 | |||
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Final Accounts: Meaning, Definition and Explanation
Profit and Loss Account: Meaning, Format & Examples
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Balance Sheet: Meaning, Format & Examples
Also, Check out the solved question of all Chapters: –
Advanced Accountancy – Unimax Class 11 – 2021 – Solution.
Part-I
- Chapter No. 1 – Introduction of Accounting
- Chapter No. 2 – Theory Base of Accounting
- Chapter No. 3 – Vouchers and Transactions
- Chapter No. 4 – Journal
- Chapter No. 5 – Goods and Services Tax (GST): An Introduction
- Chapter No. 6 – Ledger
- Chapter No. 7 – Special Purpose Book – Cash Book
- Chapter No. 8 – Other Subsidiary Books
- Chapter No. 9 – Trial Balance
- Chapter No. 10 – Rectification of Errors
- Chapter No. 11 – Depreciation
- Chapter No. 12 – Provision and Reserves
- Chapter No. 13 – Bank Reconciliation Statement
- Chapter No. 14 – Bills of Exchange
Students may choose only one part from the Part II and Part III
Part-II
- Chapter No. 15 – Financial Statements (Without Adjustments)
- Chapter No. 16 – Financial Statements (With Adjustments)
- Chapter No. 17 – Accounts from Incomplete Records – Single Entry System
Part-III
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- Chapter No. 18 – Introduction to Computers and Accounting information System
- Chapter No. 19 – Computerised Accounting
- Chapter No. 20 – Accounting Software: Tally
- Chapter No. 21 – Data Base System
- Chapter No. 22 – Concept of Entity and Relationship
Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution
Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Origin of Transactions
Chapter No. 4 – Vouchers and transactions
Chapter No. 6 – Accounting for Goods and Services Tax(GST)
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Chapter No. 9 – Other Subsidiary Books
Chapter No. 10 – Journal Proper
Chapter No. 11 – Trial Balance
Chapter No. 12 – Bank Reconciliation Statement
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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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