Question No 29 Chapter No 18 – USHA Publication 11 Class

Question No 29 Chapter No 18

Question No 29 Chapter No 18

Bad debts and provision

29.From the following trial balance extracted from the books of Sharma & Sons, prepare trading and profit & loss account of the year ended 31st March 2018 and a balance sheet as on date.

Ledger balances(Dr.)Rs(Cr.)Rs
Purchase & Sale25,00050,500
Debtors & Creditor10,0004,000
Drawings5,500
Sales return & purchases return300250
Discount760
Insurance premium300
Cash 2,800
Stock(1st April 2017)1,400
Bad debts500
Bad debts reserve1,540
Wages2,800
Carriage600
Machinery22,000
Furniture4,000
Salaries3,000
Bank charges500
Bill receivable & bills payable5,5005,000
Trade expenses1,330
Capital account29,000
Building4,000
 90,29090,290

Adjustments:

  1. Depreciation building @5% and Machinery@10%
  2. Trade expenses of Rs 220 and wages of Rs 200 have not yet been paid
  3. Allow interest on capital at 10% p.a.
  4. Make provision for doubtful debts at 12%
  5. Stock on 31st March 2018 was Rs 10,000
  6. Prepaid insurance premium is Rs 50.

The solution of Question No 29 Chapter No 18:-

 

Trading A/c
Particular
AmountParticular
Amount
To Opening Stock A/c 1,400By Sale A/c50,500 
To Purchases A/c25,000 Less: Return30050,200
Less: return25024,250By Closing Stock 10,000
To Wages A/c2,800    
Add: outstanding wages2002,600   
To Carriage A/c 600   
To Gross Profit A/c 30,450   
  60,200  60,200

 

Profit/Loss A/c
Particular
AmountParticular
Amount
To Discount A/c 760By Gross Profit A/c 30,450
By Insurance A/c300    
Less: prepaid50250   
By Trade Exp. A/c1,330    
Add: outstanding2201,550   
To Dep. On building 160   
To Dep. On Machinery 200   
To Provision for doubtful debts     
Bad debts500    
Add: new provision1,200    
Less: old Provision1,540160   
To Interest on capital 2,000   
To Salaries 3,000   
To Bank changes 500   
To Net profit A/c
 18,930   
  30,450  30,450

 

Balance Sheet
Labilities
AmountAssets
Amount
Capital A/c29,000 Debtors10,000 
Add: Net Profit18,930 Less: Provision for doubtful debts1,2008,800
Add: Interest on capital2,900 Cash in hand 2,800
Less: Drawing5,50045,330Bill Receivable 5,500
Creditor 4,000Machinery22,000 
Bill payable 5,000Less: depreciation2,20019,800
Outstanding Trade exp. 220Prepaid Insurance 50
Outstanding Wages 200Furniture 4,000
   Building4,000 
   Less: depreciation2003,800
   Closing Stock 10,000
  54,750  54,750

 

 

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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