Question No 38 Chapter No 18

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 balancesRsLedger balancesRs
Capital24,500Bad debts550
Drawings2,000Loan (Cr.)7,880
General expenses2,500Sales65,360
Building11,000Purchases47,000
Machinery9,340Scooter2,000
Opening stock16,200Bad debts provision900
Power2,240Commission(Cr.)1,320
Taxes & insurance1,315Scooter expenses1,800
Wages7,200Bills payable3,850
Debtors6,280Cash 80
Creditor2,500Bank overdraft3,300
Charity105  

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
AmountParticular
Amount
To Opening Stock A/c 16,200By Sale A/c 66,360
To Purchases A/c 47,000By 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
AmountParticular
Amount
To General Exp. A/c 2,500By Gross Profit A/c 16,220
To Taxes & insurance 1,315By Commission A/c 1,320
To Charity 105   
To Bad debts 1,000   
written off during the year550    
Add: written off now106    
Add: new provision306    
Less: old provision900116   
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
AmountAssets
Amount
Capital A/c24,500 Debtors 6,280 
Add: Net Profit8,802 Less: bad debts w/off160 
Less: Drawing2,00031,302Less: provision3065,814
Creditor 2,500Cash in hand 80
loan 7,880Closing stock 23,500
Bill payable 3,850Building 11,000
Outstanding interest 750scooter2,000 
Manager’s comm. Due 978Less: depreciation2401,760
   Machinery9,340 
   Less: depreciation9348,406
  50,560  50,560

 

Final Accounts: Definition and Explanation

 

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

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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