Question no 35 Chapter No 16 - Unimax Class 11

Question No 35 Chapter No 16 – Unimax Class 11

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The solution of Question No 35 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 Trial Balance expected from the books of Sharma and sons, prepare Trading and profit & loss account for the year ended 31st December, 2019 and Balance Sheet as on that date:

Particulars	Debit	Credit
Purchases and sales	251,000	50,500
Debtors and creditors	10,000	4,000
Drawings	5,500
Sales returns and purchases returns	300	250
Discount	760
Insurance	300
Cash	2,800
Stock 1.1.2019	1,400
Bad debts	500
Bad debts reserve		1,540
Wages	2,800
Carriage	600
Machinery	22,000
Furniture	4,000
Salaries	3,000
Bank charges	500
B/R and B/P	5,500	5,000
Trade expenses	1,330
Capital account		29,000
Building	4,000
Total	90,290	90,290

Adjustments:
(1) Depreciation building @ 5% and Machinery @ 10%.
(2) Trade expenses of ₹ 220 and wages ₹ 200 have not yet been paid.
(3) Allow interest on capital 2 10% p.a.
(4) Make provision for doubtful debts at 12%
(5) Stock on 31st December 2019 ₹ 10,000.
(6) Prepaid insurance premium in ₹ 50.

The solution of Question No 35 Chapter No 16 – UNIMAX Class 11

Trading and Profit & Loss A/c of Sharma & Sons For the year ended 31st March, 2020
Particulars		Amount		Particulars		Amount
To Opening stock			1,400	By sales	50,500
To purchases	25,000			Less: Returns	300	50,200
Less: Returns	250		24,750	By Closing stock
To Wages	2,800
Add: O/S wages	200		3,000
Carriage			600
To Gross Profit			30,450
(transferred to P & L A/c)
			60,200			60,200
To Discount			760	By Gross Profit b/d		30,450
To insurance	300
Less: Prepaid insurance	50		250
To Bad debts	500
Add: New reserve for bad debts 1,200	1,200
Less: old reserve for bad debts	1,540		160
To Salaries			3,000
To Bank charges			500
To Trade expenses	1330
Add: O/S expenses	220		1,550
To Dep. Building			200
To Dep. Machinery			2,200
To Interest on capital			2,900
To Net Profit			18,930
(Transferred to capital)
			30,450			30,450

Balance Sheet of KNHD
As on 31st Dec., 2020

Liabilities		Amount	Assets		Amount
Capital	29,000		Debtors	10,000
Add: Net Profit	18,930		Less: New reserve	1,200	8,800
Less: Drawings	5,500		Cash		2,800
Add: IOC	2,900	45,330	Bills receivable		5,500
Creditors		4,000	Machinery	22,000
Bills Payable		5,000	Less: Dep	2,200	19,800
Outstanding trade Exp.		220	Furniture		4,000
Outstanding wages		200	Building	4,000
			Less: Dep.	200	3,800
			Closing stock		10,000
			Prepaid insurance		50
		54,750			54,750