Advertisement

Question No 29 Chapter No 18 – USHA Publication 11 Class

Question No 29 Chapter No 18
Q-29 - CH-18 - USHA +1 Book 2020 - Solution

Advertisement

Question No 29 Chapter No 18

Advertisement

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:-

Advertisement-X

 

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: return25024,750By Closing Stock 10,000
To Wages A/c2,800    
Add: outstanding wages2003,000   
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: Meaning, Definition and Explanation

Advertisement-X

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

Advertisement-X

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

Advertisement-X

Advertisement-Y

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

Advertisement-X

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 

Advertisement-X

Chapter No. 17 – Financial Statements – (Without Adjustments)

Chapter No. 18 – Financial Statements – (With Adjustments)

Advertisement

Advertisement

error: Content is protected !!