Question No 39 Chapter No 18 – USHA Publication 11 Class

Question No 39 Chapter No 18

Question No 39 Chapter No 18

Mutual indebtedness

39. From the following figures extracted from the books of Mr. Kissinger for the year ending 31stmarch 2019

Debit balances Rs Debit balances Rs
Rates & taxes 700 Advertising 10,716
Unexpired rates & taxes 70 Salaries 3,862
General expenses 1,766 Sale return 683
Purchases 33,437 Cash in hand  100
Carriage inwards 952 Insurance 326
Wages 9,675 Credit balance  
Depreciation on furniture 60 Kissinger’s capital 30,000
Furniture & fitting 1,140 General reserve 500
Opening stock 7,834 Loan (secured)6% 5,000
Machinery 4,820 Sales 61,725
Land & building 12,000 Creditor 10,733
Debtors 17,860 Bank overdraft 543
Drawings 2,500    

You are required to prepare a trading and profit & loss account fir the year ended 31st March 2019 and a balance sheet as at that date taking account the following matters:

  1. Closing stock was valued at RS 8,931
  2. Reserve for doubtful debts is required at 5% of sundry debtors
  3. Depreciation is to be provided on machinery 10% p.a.
  4. Wages were paid on the proprietor’s account Rs 375 and no entry was made
  5. Sale includes the sale of furniture on 31st Match 2019 for the Rs 700 the book value of furniture sold on the date was Rs 750
  6. Advertising is to be written off over three year

 

The solution of Question No 39 Chapter No 18:-

Trading A/c
Particular
Amount Particular
Amount
To Opening Stock A/c   7,834` By Sale A/c 61,725  
To Purchases A/c   33,437 Less: return 683  
To Wages A/c 9,675   Less: furniture sale 700 60,342
Less: personal payment 375 9,300 By Closing Stock A/c   8,931
To Power Expenses A/c   952      
To Gross Profit A/c
  17,750      
    69,273     69,273

 

Profit/Loss A/c
Particular
Amount Particular
Amount
To rates & taxes   700 By Gross Profit A/c   17,750
To General exp.   1,766      
To Dep. On furniture   60      
To Dep. On machinery   482      
To Advertisement 10,716        
Less:2/3 prepaid 7,144 3,572      
To salaries   3,862      
To Insurance   326      
To interest on loan   300      
To reserve for doubtful debts   893      
To loss on sale of furniture   50      
           
To Net profit A/c   5,739      
    17,750     17,750

 

Balance Sheet
Labilities
Amount Assets
Amount
Capital A/c 30,000   Debtors  17,860  
Add: Net Profit 5,739   Less: provision 893 16,967
Less: Drawing 2,500   Cash in hand   100
Less: personal wages 375 32,864 Closing stock   8,931
Creditor   10,733 Land & building   12,000
Bank overdraft   543 Machinery 4,820  
Loan   5,000 Less: depreciation 482  
General reserve   500 Furniture & fitting 1,140  
Outstanding interest on loan   300 Less: sale of furniture 750 340
      Prepaid advertising   7,144
      Unexpired rates & taxes   8,406
    49,950     49,950

 

Final Accounts: Definition and Explanation

 

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: –

 

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)

Leave a Reply