Question no 40 Chapter No 16 - Unimax Class 11

Question No 40 Chapter No 16 – Unimax Class 11

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The solution of Question No 40 Chapter No 16 – UNIMAX Class 11

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

From the following balance extracted from then books of Seth Damodaran Swarup, prepare a Trading and Profit and Loss Account for the year ended 31st March, 2020, and a Balance Sheet as on that date:

Balance	₹	Balance	₹
Capital A/c	2,90,000	Discount (Cr.)	780
Drawings A/c	14,500	Reserve for bad debts	2,500
Office salaries	19,860	Insurance and Taxes	4,930
Plant and Machinery	1,28,400	Furniture	2,000
Purchases	2,92,620	Repairs	6,980
Purchases returns	4,290	Manufacturing expenses	4,710
Sales	5,72,140	Bad debts	2,190
Sales returns	3,210	Sundry debtors	62,840
Loan A/c (Cr.)	85,000	Sundry creditors	37,210
Wages	1,03,140	Cash in hand	13,270
Building	1,47,480	Cash at bank	32,230
Interest (Dr.)	4,250	Bills receivable	17,860
Stock 1.4.2019	1,01,220	Coal and Power	17,760
General charges	10,670	Charity	2,500
Advertising	4,300

The following adjustments have to be made before closing the accounts:
(a) Stock in hand on 31st March, 2020 was ₹ 1,06,700.
(b) Depreciation on Plant and machinery and furniture at 10% and on the buildings at 5% to be written off.
(c) Reserve for bad debts to be increased to ₹ 4,000.
(d) Wages and salaries remained unpaid to the extent of ₹ 3,000 and 4,000 respectively.
(e) Interest on loan at 6% has been paid only for 8 months.

The solution of Question No 40 Chapter No 16 – UNIMAX Class 11

Trading and Profit & Loss A/c For the year ended 31st March, 2020
Particulars		Amount	Particulars		Amount
To Opening stock		1,01,220	By sales	5,72,140
To purchases	2,92,620		Less: Returns	3,210	5,68,930
Less: Return	4,290	2,88,330	By Closing stock		1,06,700
To Wages	1,03,140
Add: O/S wages	3,000	1,06,140
To Manuf. Expenses		4,710
To Coal & Power		12,760
To Gross Profit		1,62,470
(transferred to P & L A/c)
		6,75,630			6,75,630
To Salaries	19,860		By Gross Profit b/d		1,62,470
Add: Outstanding salaries	4,000	23,860	By Discount		780
Interest	4,250
Add: O/S interest	1,700	5,950
To General charges		10,670
To Advertisement		4,300
To insurance & Taxes		4,930
To Repairs		6,980
To Charity		2,500
To Bad debts	2,190
Add: New Reserve for bad debts	4,000
To Bad debts	2,500	3,690
To Dep. Machinery & Plant		12,840
To Dep. On Furniture		200
To Dep. On Building		7,374
To Net Profit		79,956
(Transferred to capital)
		1,63,250			1,63,250

Balance Sheet
As on 31st March,2020

Liabilities		Amount	Assets		Amount
Capital	2,90,000		Plant & Machinery	1,2,400
Add: Net Profit	79,956		Less: Depreciation	12,840
	3,55,456	3,55,456	Building	1,47,480
Less: Drawings	14,500		Less: Depreciation	7,374
Loan		85,000	Furniture	2,000
Sundry creditors		37,210	Less: Dep	200
Outstanding Wages		3,000	Sundry debtors	62,840
Outstanding Salaries		4,000	Less: Reserve for bad debts	4,000	58,840
Outstanding interest		17,00	Cash in hand		13,270
			Cash at bank		32,230
			Bill receivable		17,860
			Closing stock		1,06,700
		4,86,366			4,86,366