Question No 31 Chapter No 18 – USHA Publication 11 Class

Question No 31 Chapter No 18

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Goods are withdrawn for business and personal use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 balancesRsDebit balancesRs
Furniture & fitting6,400Bad debts1,250
Motor vehicles62,500Sundry debtors38,000
Building75,000Stock 1st April 201734,600
Purchases55,750Credit balance 
Return inwards2,000Capital1,25,000
Advertising4,500Provision for bad bets2,000
Interest1,180Sundry creditor25,000
Cash in hand 6,500Sales1,54,500
Taxes & insurance12,500Bank overdraft28,500
General charges7,820Return outwards1,250

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 balances sheet on 31st March 2018

The solution of Question No 31 Chapter No 18:-


Trading A/c
To Opening Stock A/c 34,600By Sale A/c1,54,500 
To Purchases A/c55,750 Less: Return2,0001,52,500
Less: return1,25054,500By Closing Stock 32,500
To Gross Profit A/c 95,900   
  1,85,000  1,85,000


Profit/Loss A/c
To Advertisement A/c 5,000By Gross Profit A/c 95,900
To Interest paid A/c1,180 By Commission A/c 3,750
Add: outstanding salaries8502,030   
To General charges 7,820   
To Provision for doubtful debts A/c     
Bad debts1,250    
Add: further bad debts1,900    
Add: provision required2,000    
Less: Old provision8001,150   
To Taxes & insurance12,500    
Add: outstanding Taxes1,200    
Less: prepaid insurance1,00012,700   
To Salaries A/c32,000    
Add: outstanding3,00035,000   
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
Capital A/c1,25,000 Debtors38,000 
Add: Net Profit19,7201,44,720Less: Provision for doubtful debts1,90036,100
Sundry Creditor 25,000Cash in hand 6,500
Bank overdraft 28,500Closing Stock 32,500
Outstanding Interest 850Prepaid insurance 1,000
Outstanding Salaries 3,000Furniture& fitting6,400 
Outstanding Taxes 1,200Less: depreciation4805,920
   Less: depreciation3,75071,250
   Motor Vehicles62,500 
   Less: depreciation12,50050,000
  2,03,270  2,03,270



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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