Question no 31 Chapter No 16 - Unimax Class 11

Question No 31 Chapter No 16 – Unimax Class 11

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The solution of Question No 31 Chapter No 16 – UNIMAX Class 11

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

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

From the following ledger accounts of Mr. Rakesh Roshan prepare a trading and profit & loss account and a balance sheet as on 31st Dec.2019 after making the necessary adjustment:

Ledger A/c	₹	Ledger A/c	₹
Trade expenses	800	Purchases	82,000
Fright duty	2,000	Stock 1.1.2019	15,000
Carriage outwards	500	Plant	20,000
Sundry debtors	20,600	Plant (additional on 1.7.2019)	5,000
Furniture & Fixture	5,000	Drawings	6,000
Returns inward	2,000	Capital	80,000
Printing and stationery	400	Reserve for doubtful debts	800
Rent, Rates & Taxes	4,600	Rent for Premises sub-let	1,600
Sundry creditors	10,000	Insurance	700
Sales	1,20,000	Salaries & Wages	21,300
Returns outwards	1,000	Cash in hand	6,200
Postage & Telegrams	800	Cash in bank	20,500

The items for adjustment are:
(1) Stock on 31.12.2019 was ₹ 20,000.
(2) Write off ₹ 1,600 as bad debts.
(3) The reserve for doubtful debts to be maintained at 10% of sundry debtors.
(4) Provision depreciation- furniture and fixtures at 5% p.a. and on Plant and Machinery 20% p.a.
(5) Insurance is to be carriage forward to the extent of ₹ 100.
(6) A fire occurred on 5th dec.,2019 in the go down and stock of the value of ₹ 5,000 was destroyed. It was insured and insurance company admitted the full claim.

The solution of Question No 31 Chapter No 16 – UNIMAX Class 11

Trading and Profit & Loss A/c Rakesh Roshan For the year ended 31st Dec., 2019
Particulars		Amount	Particulars		Amount
To Opening stock		15,000	By sales	1,20,000
To purchases	82,000		Less: Returns inwards	2,000	1,18000
Less: Returns outwards	1,000	81,000	By Loss by fire		5,000
To Freight & Duty		2,000	By Closing stock		20,000
To Gross Profit		45,000
(transferred to P & L A/c)
		1,43,000			1,43,000
To Trade expenses		800	By Gross Profit b/d		45,000
To Carriage outward		500	By Rent for premises		1,600
To Printing & stationery		400
To Rent, Rates & Taxes		4,600
To Postage & Telegrams		800
To Insurance	700
Less: Prepare	100	600
To Salaries & Wages		21,300
To Bad debts	1,600
Add: New Provision	1,900
Less: Old Provision	800	2,700
To Depreciation on furniture		250
To Dep. On Plant & Machinery		4,500
To Net Profit
(Transferred to capital)		10,150
		46,600			46,600

Balance Sheet of Mr. Rakesh As on 31st Dec., 2020
Liabilities		Amount	Assets		Amount
Capital	80,000		Sundry debtors	20,600
Add: Net Profit	10,150		Less: bad debts	1,600
Less: Drawings	6,000	84,150	Less: Provision	1,900	17,100
Sundry creditors		10,000	Furniture & Fixtures	5,000
			Less: Deprecation	250	4,750
			Plant	20,000
			Add: Additional	5,000
			Less; Depreciation	4,500	20,500
			Cash		6,200
			Bank		20,500
			Closing stock		20,000
			Prepaid insurance		100
			Insurance claim		5,000
		94,150			94,150