Question No 40 Chapter No 18 – USHA Publication 11 Class

Question No 40 Chapter No 18

Question No 40 Chapter No 18

Mutual indebtedness

40. The following trial balance was extracted from the books of Ram Pratap as of 31st March 2018

Debit balancesRsDebit balancesRs
Drawings account7,000Cash at bank12,400
Purchases82,210Cash in hand 2,210
Sale return1,820Office furniture3,500
Stock on April 1, 201711m460Traveller’s salaries9,870
Salaries6,280Bad debts1,000
Wages8,560Carriage outwards3,240
Leasehold premises25,000Credit balance 
Rent rates & Insurance6,940Capital account90,000
Carriage inwards2,310Purchases return4,240
Office expenses9,520Sales1,49,840
Plant & machinery24,000Bad debts provision on April 1, 20174,240
Light & water7,950Discount180
Bills receivable1,240Sundry creditor16,980
Sundry debtors38,970  

You are required to prepare a trading ad Profit & loss account for the year ending 31st March 2018 and a balance sheet as on that date after taking into account the following

  1. Depreciation is to be written off as follows: leasehold premises 5% plant & machinery 10%
  2. Write off further Rs 500 as bad debts and make the provision for doubtful debts equal to Rs 5,000
  3. The value of stock on 31st March 2018 was Rs 14,920
  4. Three days wages(amounting to Rs 570) have become due but not paid
  5. Unexpired premium amounting to Rs 680 is to be carried due not paid


The solution of Question No 40 Chapter No 18:-

Trading A/c
To Opening Stock A/c 11,460By Sale A/c1,49,840 
To Purchases A/c82,210 Less: return1,8201,48,020
Less: return4,24077,970   
To Wages A/c8,560 By Closing Stock A/c 14,920
Add: outstanding570952   
To carriage inwards A/c 2,310   
To Light & power A/c 7,950   
To Gross Profit A/c 54,120   
  1,62,940  1,62,940


Profit/Loss A/c
To Salaries 6,280By Gross Profit A/c 54,120
To rent, rates & insurance.6,940 By Discount A/c 180
Less: unexpired insurance6806,260   
To office expenses 9,520   
To Bad debts w/off during the year1,000    
Add: w/off now500    
Add: new provision1,000    
Less: old provision5002,260   
To office expenses 9,520   
To traveller salaries 9,870   
To carriage outwards 3,240   
To dep. On leasehold premises 1,250   
To dep. On plant & machinery 2,400   
To Net profit A/c 13,220   
  54,300  54,300


Balance Sheet
Capital A/c90,000 Debtors 38,970 
Add: Net Profit13,220 Less: bad debts500 
Less: Drawing7,00096,220Less: provision5,00033,470
Creditor 16,980Cash in hand 2,120
Outstanding wages 570Cash at bank 12,400
   Bill receivable 1,240
   Plant & machinery24,000 
   Less: depreciation2,40021,600
   Leasehold premises25,000 
   Less: depreciation1,25023,750
   Closing stock 14,920
   Office furniture 3,500
   Unexpired premium 680
  1,13,770  1,13,770


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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