Question No 26 Chapter No 18
26. Trial Balance of Chatter Sen on 31st March, 2018 revealed the following balances:
| Debit Balances: | Debit Balances | ||
| Plant and Machinery | 90,000 | Rent | 2,000 |
| Purchases | 58,000 | Advertisement | 2,000 |
| Sales Return | 1,000 | Cash at Bank | 6,900 |
| Opening Stock | 40,000 | Credit Balances: | |
| Discount Allowed | 350 | Capital A/c | 1,10,000 |
| Bank Charge | 75 | Sales | 1,27,000 |
| Sundry Debtors | 45,000 | Purchases Return | 1,275 |
| Salaries | 6,800 | Discount Received | 800 |
| Wages | 10,000 | Loan | 5,000 |
| Freight In | 750 | Sundry Creditors | 20,000 |
| Freight Out | 1,200 |
Stock on 31st March, 2018 was valued at 35,000. Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at the date.
The solution of Question No 26 Chapter No 18:-
| Trading Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Opening Stock | 40,000 | By Sales | 1,27,000 | ||
| To Purchases | 58,000 | Less: Sales Return | 1, 000 | 1,26,000 | |
| Less: Purchases Return | 1, 275 | 56,725 | By Closing Stock | 35,000 | |
| To Wages | 10,000 | ||||
| To Freight Inwards | 750 | ||||
| To Gross Profit | 53,525 | ||||
| 1,61,000 | 1,61,000 | ||||
| Profit and Loss Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Discount Allowed | 350 | By Gross Profit | 53,525 | ||
| To Bank Charges | 75 | By Discount Received | 800 | ||
| To Salaries | 6,800 | ||||
| To Freight Outwards | 1,200 | ||||
| To Rent, Rates and Taxes | 2,000 | ||||
| To Advertisement | 2,000 | ||||
| To Net Profit | 41,900 | ||||
| 54,325 | 54,325 | ||||
| Balance Sheet |
|||||
| Particular |
Amount | Particular |
Amount | ||
| Capital | 1,10,00 | Plant and Machinery | 90,000 | ||
| Add: Net Profit | 41,900 | 1,51,900 | Closing Stock | 35,000 | |
| Sundry Creditors | 20,000 | Sundry Debtors | 45,000 | ||
| Loan | 5,000 | Bank | 6,900 | ||
| 1,76,900 | 1,76,900 | ||||
Final Accounts: Meaning, Definition and Explanation
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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
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