Question No 31 Chapter No 18
Goods are withdrawn for business and personal use
31. The trial balance given is extracted from the books of a merchant on 31st March 2018
| Debit balances | Rs | Debit balances | Rs |
| Furniture & fitting | 6,400 | Bad debts | 1,250 |
| Motor vehicles | 62,500 | Sundry debtors | 38,000 |
| Building | 75,000 | Stock 1st April 2017 | 34,600 |
| Purchases | 55,750 | Credit Balance | |
| Return inwards | 2,000 | Capital | 1,25,000 |
| Advertising | 4,500 | Provision for bad bets | 2,000 |
| Interest | 1,180 | Sundry creditor | 25,000 |
| Cash in hand | 6,500 | Sales | 1,54,500 |
| Taxes & insurance | 12,500 | Bank Overdraft | 28,500 |
| General charges | 7,820 | Return outwards | 1,250 |
| Salaries | 32,000 | Commission | 3,750 |
Stock in hand on 31st March 2018 was Rs 32,500; depreciation building @5% furniture and fitting @7.5% and motor vehicle @20%; Rs 850 is due for interest on bank overdraft; salaries Rs 3,000 and taxes Rs 1,200 are outstanding; insurance amounting to Rs 1,000 is prepaid; the provision for bad debts is to be made equal to 5% of the debtors.
Prepare the trading and profit & loss account for the year 2017-18 and the balances sheet on 31st March 2018
The solution of Question No 31 Chapter No 18:-
| Trading A/c |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Opening Stock A/c | 34,600 | By Sale A/c | 1,54,500 | ||
| To Purchases A/c | 55,750 | Less: Return | 2,000 | 1,52,500 | |
| Less: return | 1,250 | 54,500 | By Closing Stock | 32,500 | |
| To Gross Profit A/c | 95,900 | ||||
| 1,85,000 | 1,85,000 | ||||
| Profit/Loss A/c |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Advertisement A/c | 5,000 | By Gross Profit A/c | 95,900 | ||
| To Interest paid A/c | 1,180 | By Commission A/c | 3,750 | ||
| Add: outstanding salaries | 850 | 2,030 | |||
| To General charges | 7,820 | ||||
| To Provision for doubtful debts A/c | |||||
| Bad debts | 1,250 | ||||
| Add: provision required | 1,900 | ||||
| Less: Old provision | 2000 | 1,150 | |||
| To Taxes & insurance | 12,500 | ||||
| Add: outstanding Taxes | 1,200 | ||||
| Less: prepaid insurance | 1,000 | 12,700 | |||
| To Salaries A/c | 32,000 | ||||
| Add: Outstanding | 3,000 | 35,000 | |||
| To Dep. On Building | 3,750 | ||||
| To Dep. On Furniture& fitting | 480 | ||||
| To Dep. On Motor vehicles | 12,500 | ||||
| To Net profit A/c | 19,720 | ||||
| 99,650 | 99,650 | ||||
| Balance Sheet | |||||
| Labilities |
Amount | Assets |
Amount | ||
| Capital A/c | 1,25,000 | Debtors | 38,000 | ||
| Add: Net Profit | 19,720 | 1,44,720 | Less: Provision for doubtful debts | 1,900 | 36,100 |
| Sundry Creditor | 25,000 | Cash in hand | 6,500 | ||
| Bank Overdraft | 28,500 | Closing Stock | 32,500 | ||
| Outstanding Interest | 850 | Prepaid insurance | 1,000 | ||
| Outstanding Salaries | 3,000 | Furniture& fitting | 6,400 | ||
| Outstanding Taxes | 1,200 | Less: depreciation | 480 | 5,920 | |
| Building | 75,000 | ||||
| Less: depreciation | 3,750 | 71,250 | |||
| Motor Vehicles | 62,500 | ||||
| Less: depreciation | 12,500 | 50,000 | |||
| 2,03,270 | 2,03,270 | ||||
Final Accounts: Meaning, Definition and Explanation
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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. 2 – Theory Base of Accounting
Chapter No. 3 – Origin of Transactions
Chapter No. 4 – Vouchers and transactions
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Chapter No. 6 – Accounting for Goods and Services Tax(GST)
Chapter No. 9 – Other Subsidiary Books
Chapter No. 10 – Journal Proper
Chapter No. 11 – Trial Balance
Chapter No. 12 – Bank Reconciliation Statement
Chapter No. 14 – Provisions and Reserves
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Chapter No. 15 – Bills of Exchange
Chapter No. 16 – Rectification of Errors
Chapter No. 17 – Financial Statements – (Without Adjustments)