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 balances Rs Credit balances Rs
Closing stock 25,000 Capital 50,000
Book dets 20,000 Creditor 10,000
Plant & machinery 10,000 Reserve 10,000
Unproductive wages 6,000 Sales 1,50,000
Salaries 2,000 Wages outstanding 1,000
Land & Building 30,000    
Travelling Expenses 2,500    
Cost of goods sold 95,000    
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
Particular
Amount Particular
Amount
To Cost of goods sold A/c   95,000 By Sale A/c   1,50,000
           
           
To Gross Profit A/c   55,000      
    1,50,000     1,50,000

 

Profit/Loss A/c
Particular
Amount Particular
Amount
To Wages A/c   6,000 By 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
Labilities
Amount Assets
Amount
Capital A/c 50,000   Book debts 20,000  
Add: Net Profit 25,500 75,500 Less: Provision for doubtful debts 2,000 18,000
Sundry Creditor   10,000 Cash in hand   30,500
Outstanding wages   1,000 Closing stock   25,000
Opening balance 10,000   Land & building   30,000
Addition during the year 15,000 35,000 Plant & machinery 10,000 4,680
Provision for employee’s bonus   1,000 Less: depreciation 1,000 9,000
    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 R 11; 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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