Question No 26 Chapter No 18 – USHA Publication 11 Class

Question No 26 Chapter No 18

Question No 26 Chapter No 18

Bad debts and provision

26. From the following trial balance of Alka & sons, prepare the trading and Profit & loss account for the year ending on 31st March 2019 and the balance sheet as of that date:

Ledger balances(Dr.)Rs(Cr.)Rs
Purchases210,750
Discount allowed 1,300
Wages6,500
Salaries2,000
Sales35,000
Travelling expenses400
Commission425
Carriage outwards275
Administration expenses105
Trade expenses600
Interest250
Building5,000
Furniture200
Debtors4,250
Capital13,000
Cash 7,045
Creditor2,100
 50,10050,100

Stock on 31st March 2019 was Rs 6,000. depreciation building by 20%. Create a provision for bad debts at 10% on debtors, outstanding wages Rs 475

The solution of Question No 26 Chapter No 18:-

 

Trading A/c
Particular
AmountParticular
Amount
To Purchases A/c 21,750By Sale A/c 35,000
To Wages A/c6,500    
Add: outstanding wages4756,975By Closing Stock 6,000
To Carriage Inwards A/c 275   
To Gross Profit A/c 12,000   
  41,000  41,000

 

Profit/Loss A/c
Particular
AmountParticular
Amount
To discount allowed A/c 1,300By Gross Profit A/c 12,000
To Salaries A/c 2,000   
To Travelling Exp. 400   
To commission 425   
To Administrative Exp. 105   
To Trade Exp. 600   
To Interest 250   
To Dep. On building 1,000   
To Provision for doubtful debts 425   
To Net profit A/c 5,495   
  12,000  12,000

 

Balance Sheet
Labilities
AmountAssets
Amount
Capital A/c13,000 Debtors4,250 
Add: Net Profit5,49518,495Less: provision for doubtful debts4253,825
Creditor 2,100Closing Stock 6,000
Outstanding Wages 475Cash 7,045
   Furniture 200
   Building5,000 
   Less: depreciation1,0004,000
  21,070  21,070

 

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

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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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