Question No 38 Chapter No 18 – USHA Publication 11 Class

Posted by By Shubham Sharma 6 Min Read September 19, 2021
Question No 38 Chapter No 18
Q-38 - CH-18 - USHA +1 Book 2020 - Solution

Question No 38 Chapter No 18

Mutual indebtedness

38.Te following balances were extracted from the books of Brijesh Chandra on 31st March 2018

Ledger balances Rs Ledger balances Rs
Capital 24,500 Bad debts 550
Drawings 2,000 Loan (Cr.) 7,880
General expenses 2,500 Sales 65,360
Building 11,000 Purchases 47,000
Machinery 9,340 Scooter 2,000
Opening stock 16,200 Bad debts provision 900
Power 2,240 Commission(Cr.) 1,320
Taxes & insurance 1,315 Scooter expenses 1,800
Wages 7,200 Bills payable 3,850
Debtors 6,280 Cash  80
Creditor 2,500 Bank overdraft 3,300
Charity 105    

Prepare final account for the year ended 31st march 2018 after giving effect to the following adjustments:

  1. Stock on 31st March 2018 was valued at Rs 23,500
  2. Write off furniture Rs 160 as bad debts and maintain the provision for bad debts at 5% on debtors
  3. Depreciation machinery at 10% and scooter at12%
  4. Provide Rs 750 for outstanding interest on loan and overdraft
  5. Manager is given 10% commission on net profit before charging such commission

 

The solution of Question No 38 Chapter No 18:-

Trading A/c
Particular
 Amount Particular
 Amount
To Opening Stock A/c   16,200 By Sale A/c   65,360
To Purchases A/c   47,000 By Closing Stock A/c   23,500
To Wages A/c   7,200      
To Power Expenses A/c   2,240      
To Gross Profit A/c   16,220      
    88,860     88,860

 

Profit/Loss A/c
Particular
 Amount Particular
 Amount
To General Exp. A/c   2,500 By Gross Profit A/c   16,220
To Taxes & insurance   1,315 By Commission A/c   1,320
To Charity   105      
To Bad debts   1,000      
written off during the year 550        
Add: written off now 106        
Add: new provision 306        
Less: old provision 900 116      
To Scooter Exp.   1,800      
To Dep. On machinery   934      
To Dep. On Scooter   240      
To Interest on loan and O/d   750      
To Manager’s commission   978      
           
To Net profit A/c   8,802      
    17,540     17,540

 

Balance Sheet
Labilities
 Amount Assets
 Amount
Capital A/c 24,500   Debtors  6,280  
Add: Net Profit 8,802   Less: bad debts w/off 160  
Less: Drawing 2,000 31,302 Less: provision 306 5,814
Creditor   2,500 Cash in hand   80
loan   7,880 Closing stock   23,500
Bill payable   3,850 Building   11,000
Outstanding interest   750 scooter 2,000  
Manager’s comm. Due   978 Less: depreciation 240 1,760
      Machinery 9,340  
      Less: depreciation 934 8,406
    50,560     50,560

 

Final Accounts: Meaning, Definition and Explanation

 

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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

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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

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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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