Question No 37 Chapter No 18 – USHA Publication 11 Class

Question No 37 Chapter No 18

Question No 37 Chapter No 18

Mutual indebtedness

37. From the following figures taken from the books of Margret, prepare trading and profit & loss account for the year ending 31st March 2019 and balance sheet as of that date

Debit balancesRsCredit balancesRs
Closing stock25,000Capital50,000
Book dets20,000Creditor10,000
Plant & machinery10,000Reserve10,000
Unproductive wages6,000Sales1,50,000
Salaries2,000Wages outstanding1,000
Land & Building30,000  
Travelling Expenses2,500  
Cost of goods sold95,000  
Cash 30,500  
 2,21,000 2,21,000

It was decided to write off 10% plant & machinery and to reserve for bad and doubtful dents at 10%of sundry debtors; to place Rs 1,000 to bonus for staff ; to place Rs 15,000 for general reserve and to carry forward the balance.


The solution of Question No 37 Chapter No 18:-

Trading A/c
To Cost of goods sold A/c 95,000By Sale A/c 1,50,000
To Gross Profit A/c 55,000   
  1,50,000  1,50,000


Profit/Loss A/c
To Wages A/c 6,000By Gross Profit A/c 55,000
To Salaries 2,000   
To Trade expenses 2,500   
To Dep. On plant & machinery 1,000   
To Provision for doubtful debts 2,000   
To Staff bonus A/c 1,000   
To General reserve A/c 15,000   
To Net profit A/c 25,500   
  55,000  55,000

Note: Since cost of goods sold was calculated with reference to direct expenses, so all expenses now given have been debited in profit & loss account

Balance Sheet
Capital A/c50,000 Book debts20,000 
Add: Net Profit25,50075,500Less: Provision for doubtful debts2,00018,000
Sundry Creditor 10,000Cash in hand 30,500
Outstanding wages 1,000Closing stock 25,000
Opening balance10,000 Land & building 30,000
Addition during the year15,00035,000Plant & machinery10,0004,680
Provision for employee’s bonus 1,000Less: depreciation1,0009,000
  1,12,500  1,12,500


Final Accounts: Definition and Explanation


Profit and Loss Account: Meaning, Format & Examples


Balance Sheet: Meaning, Format & Examples

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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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