Advertisement
Question No 38 Chapter No 18
Advertisement
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:
- Stock on 31st March 2018 was valued at Rs 23,500
- Write off furniture Rs 160 as bad debts and maintain the provision for bad debts at 5% on debtors
- Depreciation machinery at 10% and scooter at12%
- Provide Rs 750 for outstanding interest on loan and overdraft
- Manager is given 10% commission on net profit before charging such commission
Advertisement-X
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
Advertisement-X
Profit and Loss Account: Meaning, Format & Examples
Balance Sheet: Meaning, Format & Examples
Thanks, Please Like and share with your friends
Comment if you have any question.
Also, Check out the solved question of all Chapters: –
Advertisement-X
Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution
Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Origin of Transactions
Chapter No. 4 – Vouchers and transactions
Advertisement-X
Advertisement-Y
Chapter No. 6 – Accounting for Goods and Services Tax(GST)
Chapter No. 9 – Other Subsidiary Books
Chapter No. 10 – Journal Proper
Chapter No. 11 – Trial Balance
Advertisement-X
Chapter No. 12 – Bank Reconciliation Statement
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)
Advertisement-X