Question No 30 Chapter No 18 - USHA Publication 11 Class

Question No 30 Chapter No 18

Table of Contents

The solution of Question No 30 Chapter No 18:-

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

Goods are withdrawn for business and personal use

30.The following balance is taken from the books of D. Goswami:

Ledger balances	Rs	Ledger balances	Rs
Capital	1,20,000	Drawings	21,000
Stock (1.4.2018)	45,000	Plant & machinery	24,000
Furniture	1,500	Purchases	2,95,000
Sales	4,35,000	Insurance	1,500
Purchases return	4,000	Sale return	7,000
Rent	5000	Trade expenses	2,000
Salaries	24,000	Wages	40,000
Bad debts	1,000	6% investments (1.7.2018)	50,000
Sundry debtors	40,000	Sundry creditor	19,000
Bad debts reserve	800	Cash	12,200
Establishment	6,000	Miscellaneous receipt	1,200
Patents	4,800

After making the following adjustment, prepare trading account and profit & loss account for the ear ended 31st march 2019 and a balance sheet as on that date.

Stock on 31st March 2019 was RS 75,000
Depreciation machinery by 10% & furniture by 20%
Wages RS 5,000 and salaries Rs 1,200 are outstanding
Write off Rs 500 as bad debts and create a reserve on bad and doubtful debts at 5% and reserve for a discount on debtors at 2%
Investment is made on 1.7.2018 and no interest has been received so far.

The solution of Question No 30 Chapter No 18:-

Trading A/c
Particular		Amount	Particular		Amount
To Opening Stock A/c		45,000	By Sale A/c	4,35,000
To Purchases A/c	2,95,000		Less: Return	7,000	4,28,000
Less: return	4,000	2,91,000	By Closing Stock		75,000
To Wages A/c	40,000
Add: outstanding wages	5,000	45,000
To Gross Profit A/c		1,22,000
		5,03,000			5,03,000

Profit/Loss A/c
Particular		Amount	Particular	Amount
To Rent A/c		5,000	By Gross Profit A/c	1,22,000
To Salaries A/c	24,000		By Interest on investment A/c	2,250
Add: outstanding salaries	1,200	25,200	By miscellaneous receipt A/c	1,200
To Establishment		6,000
To Provision for doubtful debts A/c
Bad debts	1,000
Add: further bad debts	500
Add: provision required	1,975
Less: Old provision	800	2,675
To Trade exp.		2,000
To Dep. On machinery		2,400
To Dep. On Furniture		300
To Provision for discount on dents		750.50
To Insurance		1,500
To Net profit A/c		78,624.50
		1,25,450		1,25,450

Balance Sheet
Labilities		Amount	Assets		Amount
Capital A/c	1,20,000		Debtors	40,000
Add: Net Profit	78,624.50		Less: Provision for doubtful debts	500
less: Drawing	21,000	1,78,624.50	Less: provision for doubtful debts	1,975
Sundry Creditor		19,000	Less: provision for discount	750.50	39,774.50
Outstanding salaries		1,200	Cash		12,200
Outstanding Wages		5,000	Closing Stock		75,000
			Investment		50,000
			Accrued interest		2,250
			Furniture	1,500
			Less: depreciation	300	1,200
			Machinery	24,000
			Less: depreciation	2,400	21,600
			Patents		4,800
		2,03,824.50			2,03,824.50