Question No 32 Chapter No 18

Question No 32 Chapter No 18

Goods are withdrawn for business and personal use

32.From the following balances taken from the books of Mr. Fortunate, prepare trading account, profit & loss account and balance sheet as of 31st March 2019

Ledger balancesRsLedger balancesRs
Capital60,000Sales returns4,000
Drawings10,000Discount(Dr.)3,200
Bank overdraft8,400Discount(Cr.)4,000
Furniture and fitting5,200Taxes and insurance4,000
Business premises40,000General expenses8,000
Creditor26,600Salaries18,000
Stock 1st April 201844,000Commission (Dr.)4,400
Debtors36,000Carriage on purchase3,600
Rent from tenants2,000Reserve for doubtful debts1,000
Purchases 2,20,200Bad debts are written off1,600
Sales3,00,000  

 

Stock in hand on 31st March 2019 was estimated at RS 40,120. write off depreciation business Premises Rs 600 and furniture & fitting Rs 520. make a reserve of 5% on dents for doubtful debts. Allow interest on capital at 5% and carry forward Rs 1,400 for unexpired insurance

The solution of Question No 32 Chapter No 18:-

 

Trading A/c
Particular
AmountParticular
Amount
To Opening Stock A/c 44,000By Sale A/c3,00,000 
To Purchases A/c 2,20,000Less: Return4,6002,96,000
To carriage on purchases 3,600By Closing Stock 40,120
To Gross Profit A/c 68,350   
  3,36,120  3,36,120

 

Profit/Loss A/c
Particular
AmountParticular
Amount
To Discount A/c 3,200By Gross Profit A/c 62,250
To Taxes & insurance A/c4,000 By Rent received A/c 2,000
Less: unexpired insurance1,4002,600By Discount received A/c 4,000
To General Exp. 8,000   
To Salaries 18,000   
Bad debts     
Written off Bad debts1,600    
Add: New provision required1,800    
Less: Old provision1,0002,400   
To Interest on capital A/c 3,000   
To Dep. On Business premises 600   
To Dep. On Furniture & fitting 520   
To Net profit A/c 31,800   
  74,520  74,520

 

Balance Sheet
Labilities
AmountAssets
Amount
Capital A/c60,000 Debtors36,000 
Add: Net Profit31,800 Less: Provision for doubtful debts1,80034,200
Add: Interest on capital3,000 Closing Stock 40,120
Less: drawing10,00084,800Prepaid insurance 1,400
Sundry Creditor 26,600Furniture& fitting5,200 
Bank overdraft 8,400Less: depreciation5204,680
   Business Premises40,000 
   Less: depreciation60039,400
  1,19,800  1,19,800

 

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

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)

Leave a Reply

About us

About us, we are here to improve your knowledge in all financial & Business related topics and to get better carrier opportunities. The author has about 10-year Experience in tuition Business. It is very difficult to teach a large number of students with a personal touch or in a classroom. 

Animation's Resource websites

All Icons and images used on my website were downloaded from the following website please go and download free:-

close