Question No 30 Chapter No 18 – USHA Publication 11 Class

Question No 30 Chapter No 18

Question No 30 Chapter No 18

Goods are withdrawn for business and personal use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.

  1. Stock on 31st March 2019 was RS 75,000
  2. Depreciation machinery by 10% & furniture by 20%
  3. Wages RS 5,000 and salaries Rs 1,200 are outstanding
  4. 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%
  5. 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 35,000      
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

 

 

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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