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
Purchases 210,750
Discount allowed  1,300
Wages 6,500
Salaries 2,000
Sales 35,000
Travelling expenses 400
Commission 425
Carriage outwards 275
Administration expenses 105
Trade expenses 600
Interest 250
Building 5,000
Furniture 200
Debtors 4,250
Capital 13,000
Cash  7,045
Creditor 2,100
  50,100 50,100

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
Amount Particular
Amount
To Purchases A/c   21,750 By Sale A/c   35,000
To Wages A/c 6,500        
Add: outstanding wages 475 6,975 By 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
Amount Particular
Amount
To discount allowed A/c   1,300 By 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
Amount Assets
Amount
Capital A/c 13,000   Debtors 4,250  
Add: Net Profit 5,495 18,495 Less: provision for doubtful debts 425 3,825
Creditor   2,100 Closing Stock   6,000
Outstanding Wages   475 Cash   7,045
      Furniture   200
      Building 5,000  
      Less: depreciation 1,000 4,000
    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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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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