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 balances Rs Debit balances Rs
Drawings account 7,000 Cash at bank 12,400
Purchases 82,210 Cash in hand  2,210
Sale return 1,820 Office furniture 3,500
Stock on April 1, 2017 11m460 Traveller’s salaries 9,870
Salaries 6,280 Bad debts 1,000
Wages 8,560 Carriage outwards 3,240
Leasehold premises 25,000 Credit balance  
Rent rates & Insurance 6,940 Capital account 90,000
Carriage inwards 2,310 Purchases return 4,240
Office expenses 9,520 Sales 1,49,840
Plant & machinery 24,000 Bad debts provision on April 1, 2017 4,240
Light & water 7,950 Discount 180
Bills receivable 1,240 Sundry creditor 16,980
Sundry debtors 38,970    

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
Particular
Amount Particular
Amount
To Opening Stock A/c   11,460 By Sale A/c 1,49,840  
To Purchases A/c 82,210   Less: return 1,820 1,48,020
Less: return 4,240 77,970      
To Wages A/c 8,560   By Closing Stock A/c   14,920
Add: outstanding 570 952      
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
Particular
Amount Particular
Amount
To Salaries   6,280 By Gross Profit A/c   54,120
To rent, rates & insurance. 6,940   By Discount A/c   180
Less: unexpired insurance 680 6,260      
To office expenses   9,520      
To Bad debts w/off during the year 1,000        
Add: w/off now 500        
Add: new provision 1,000        
Less: old provision 500 2,260      
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
Labilities
Amount Assets
Amount
Capital A/c 90,000   Debtors  38,970  
Add: Net Profit 13,220   Less: bad debts 500  
Less: Drawing 7,000 96,220 Less: provision 5,000 33,470
Creditor   16,980 Cash in hand   2,120
Outstanding wages   570 Cash at bank   12,400
      Bill receivable   1,240
      Plant & machinery 24,000  
      Less: depreciation 2,400 21,600
      Leasehold premises 25,000  
      Less: depreciation 1,250 23,750
      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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