Question No 28 Chapter No 18

Question No 28 Chapter No 18

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 & bank4,00025,000
Purchases & sale70,00090,000
Capital account30,000
Debtors & creditor30,00021,000
Bad dets reserve2,000
Petty cash & stamps in hand200
Carriage inwards800
Sundry trade expenses6,000
Interest charged by the bank500
An insurance premium paid for the year up to 30.920191,000
Telephone charges500
Commission 2,000

Also, consider the following:

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

The solution of Question No 28 Chapter No 18:-


Trading A/c
To Purchases A/c 10,000By Sale A/c90,000 
To Wages A/c7,0000 Less: Return3,00087,000
Add: outstanding wages4,00066,000By 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
To Salaries A/c 11,000By Gross Profit A/c 25,200
To Telephone A/c 500By commission A/c2,000 
By Insurance A/c1,000 Less: received in advance1,0001,000
Less: prepaid500500   
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 debts1,000    
Add: new provision1,450    
Less: old Provision2,000450   
To Net profit A/c 2,850   
  26,200  26,200


Balance Sheet
Capital A/c30,000 Debtors30,000 
Add: Net Profit2,85032,850Less: provision for doubtful debts1,000 
Creditor 21,000Less: Provision for doubtful debts1,45027,550
Bank overdraft 25,000Cash in hand 4,000
Commission received in advance 1,000Insurance prepaid 500
   Furniture & fittings7,000 
   Less: depreciation1,4005,600
   Petty cash & stamps in hand 200
   Less: depreciation3,00027,000
   Closing Stock 15,000
  79,850  79,850



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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