Question no 29 Chapter No 16 - Unimax Class 11

Question No 29 Chapter No 16 – Unimax Class 11

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The solution of Question No 29 Chapter No 16 – UNIMAX Class 11

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

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

Prepare trading and profit and loss account of M/s Plastic ltd. from the following trial balance and a balance sheet as at March 31 ,2019:

Debit balance	Amount	Credit balance	Amount
Drawing	6,000	Creditors	16,802
Sundry debtors	38,200	Capital	60,000
Carriage outwards	2,808	Loan on mortgage	17,000
Establishment expenses	16,194	Bad debts provision	1,420
Interest on loan	400	Sales	2,22,486
Cash in hand	6,100	Purchases return	2,692
Stock	11,678	Discount	880
Motor car	18,000	Bills payable	5,428
Cash at bank	9,110	Rent received	500
Land and building	24,000
Bad debts	1,250
Purchases	1,34,916
Sales return	15,642
Advertisement	4,528
Carriage inward	7,858
Rated, Taxes, Insurance	7,782
General expenses	8,978
Bills receivable	13,764
	3,27,208		3,27,208

Adjustments:
(1) Depreciation on loan and building @ 5% and Motor Vehicle @ 15%.
(2) Interest on loan 5% taken on April, 01,2019.
(3) Goods costing ₹ 1,200 were sent to a customer on sales or return basis for ₹ 1,400 on March 30,2020 and has been recorded in the books as actual sales.
(4) Salaries amounting to ₹ 1,400 and rates amounting to ₹ 800 are due.
(5) The bad debts provision is to be brought up to 5% on sundry debtors.
(6) Closing stock was ₹ 13,700.
(7) Goods costing ₹ 1,000 were taken away by the proprietor for his personal us but no entry has been made in the books of account.
(8) Insurance prepaid ₹ 350.
(9) Provide the manager’s commission @ 5% on Net Profit before charging such commission.

The solution of Question No 29 Chapter No 16 – UNIMAX Class 11

Trading and Profit & Loss A/c of M/S Roni Plastic LTD. For the year ended 31st March, 2020
Particulars		Amount		Particulars		Amount
To Opening stock			11,678	By sales	2,22,486
To purchases	1,32,916			Less: Returns	15,642
Less: Returns	2,692			Less: Sales return basis	1,400	2,05,444
Less: Drawings	1,000		1,31,224	By Closing stock	13,700
To Carriage inward			7,858
To Gross Profit			16,220
(transferred to P & L A/c)			69,584	Basis	1,200	14,900
			2,20,344			2,20,344
To Dep. On land and building			1,200	By Gross Profit b/d		69,584
To Dep. On Motor vehicle			2,700	By Discount		880
To interest on loan	400			By Rent		500
Add: Outstanding interest	450		850
To Rates, Taxes, Insurance	7,782
Add: Outstanding rates	800
Less: Prepaid insurance	350		8,232
To Bad debts	1,250
Add: New Provision	1,840
Less: Old Provision	1,420		1,670
To Carriage outward			2,808
To Establishments expenses			16,194
To Advertisement			4,528
To General expenses			8,978
To Commission to Manager (22404*5/100)			1,120
To Net Profit
(Transferred to capital)			21,284
			70,964			70,964

Balance Sheet of Modern Traders As on 31st Dec., 2019
Liabilities	Amount		Assets		Amount
Capital	60,000		Sundry debtors	38,200
Add: Net Profit	21,284		Less: Sales on Return basis	1,400
Less: Drawings	7,000	74,284	Less: Provision	1,840	34,960
Creditors		16,802	Cash		6,100
Loan on Mortgage		17,000	Motor car	18,000
Bills payable		5,428	Less: Depreciation	2,700	15,300
Outstanding interest		450	Bank		9,110
Outstanding commission		800	Land & Building	24,000
To Manager		1,120	Less: Deprecation	1,200	22,800
Outstanding salary		1,400	Bills receivable		13,764
			Closing stock	13,700
			Add: stock on Returns basis	1,200	14,900
			prep air insurance		350
		1,17,284			1,17,284