Question No 28 Chapter No 18 - USHA Publication 11 Class

Question No 28 Chapter No 18

Table of Contents

The solution of Question No 28 Chapter No 18:-

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

Bad debts and provision

28. Prepare trading and profit & loss account of Udham Singh for the year 2018-19 and his balance sheet on 31st March 2019 after making the necessary adjustments.

Ledger balances	(Dr.)Rs	(Cr.)Rs
Opening stock	10,000	–
Cash & bank	4,000	25,000
Purchases & sale	70,000	90,000
Return	3,000	4,000
Buildings	30,000	–
Capital account	–	30,000
Debtors & creditor	30,000	21,000
Bad dets reserve	–	2,000
Petty cash & stamps in hand	200	–
Carriage inwards	800	–
Salaries	11,000	–
Sundry trade expenses	6,000	–
Interest charged by the bank	500	–
An insurance premium paid for the year up to 30.92019	1,000	–
Telephone charges	500	–
Commission	–	2,000
	1,74,000	1,74,000

Also, consider the following:

The stock of goods on 31.320189 was Rs 15,000
Building and furniture & fitting are to be depreciated @ 10% and 20% respectively
Bad debts of Rs 1,000 are to be written off and a reserve of 5% id to kept on remaining debtors
The commission received in advance Rs 1,000

The solution of Question No 28 Chapter No 18:-

Trading A/c
Particular		Amount	Particular		Amount
To Purchases A/c		10,000	By Sale A/c	90,000
To Wages A/c	7,0000		Less: Return	3,000	87,000
Add: outstanding wages	4,000	66,000	By Closing Stock		15,000
To Carriage Inwards A/c		800
To Gross Profit A/c		25,200
		1,02,000			1,02,000

Profit/Loss A/c
Particular		Amount	Particular		Amount
To Salaries A/c		11,000	By Gross Profit A/c		25,200
To Telephone A/c		500	By commission A/c	2,000
By Insurance A/c	1,000		Less: received in advance	1,000	1,000
Less: prepaid	500	500
To Interest.		500
To Sundry Trade exp.		6,000
To Dep. On building		3,000
To Dep. On furniture & fittings		1,400
To Provision for doubtful debts
Bad debts	1,000
Add: new provision	1,450
Less: old Provision	2,000	450
To Net profit A/c		2,850
		26,200			26,200

Balance Sheet
Labilities		Amount	Assets		Amount
Capital A/c	30,000		Debtors	30,000
Add: Net Profit	2,850	32,850	Less: provision for doubtful debts	1,000
Creditor		21,000	Less: Provision for doubtful debts	1,450	27,550
Bank overdraft		25,000	Cash in hand		4,000
Commission received in advance		1,000	Insurance prepaid		500
			Furniture & fittings	7,000
			Less: depreciation	1,400	5,600
			Petty cash & stamps in hand		200
			Building	30,000
			Less: depreciation	3,000	27,000
			Closing Stock		15,000
		79,850			79,850