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Goods are withdrawn for business and personal use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 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 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: further bad debts 1,900        
Add: provision required 2,000        
Less: Old provision 800 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: 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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