Question No 41 Chapter No 18 - USHA Publication 11 Class

Question No 41 Chapter No 18

Table of Contents

The solution of Question No 41 Chapter No 18:-

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

Goods withdrawn for business and personal use

41. From the following ledger balances of Charan Singh, prepare a trading and profit and lcA account for the year ended 31st March. 2019 and a balance sheet as on that date. after making the necessary adjustments

Ledger balances	Rs	Ledger balances	Rs
Trade expenses	800	Purchases during the year	82,000
Freight & duty	2,000	Stock on 1st April 2018	15,000
Carriage outwards	500	Plant and machinery (on 1-4-18)	20,000
Sundry debtors	20,600	Plant and machinery	5,000
		(additions on 1-10-18)
Furniture & fixture	5,000	Drawings	6,000
Returns inwards	2,000	Capital	80,000
Printing & stationery	400	Reserve for doubtful debts	800
Rent ,rates & taxes	4,600	Rent for premises sublet	1,600
Sundry creditors	10,000	Insurance charges	700
Sales	1,20,000	Salaries and wages	700
Returns outwards	1,000	Cash in hand	6,200
Postage & telegrams	800	Cash at bank	20,500

The items for adjustments are :
(i)Stock on 31st March 2019 was 14,000.
(ii) Write off 600 as bad debts.
(iii) The provision for doubtful debts is to, be maintained at 5% of sundry debtors.
(iv) Provide for depreciation-furniture and fixtures at 5% p.a. and on plant & machinery at 20% p.a.
(v) Insurance prepaid was 100.
(vi) A fire occurred on 5th March 2019 in the godown and stock of the value of 5,000 was destroyed. It was insured and the insurance company admitted full claim.
(vii) Manager is given a 10% commission on net profit finally remaining.

The solution of Question No 41 Chapter No 18:-

Trading A/c
Particular		Amount	Particular		Amount
To Opening Stock A/c		15,000	By Sale A/c	1,20,000
To Purchases A/c	82,000		Less: return	2,000	1,18,000
Less: return	1,000	81,000
To fright & duty A/c		2,000	By Closing Stock A/c		14,000
To Gross Profit A/c		39,000
		1,37,000			1,37,000

Profit/Loss A/c
Particular		Amount	Particular	Amount
To Trade expenses		800	By Gross Profit A/c	39,000
To carriage outwards		500	By Rent A/c	1,600
To printing & stationery		400
To Rent ,rates & taxes		4,600
To Bad debts w/off during the year	600
Add: new provision	1,000
Less: old provision	800	800
To postage & telegrams		800
To salesmen wages		21,300
To dep. On furniture & fitting		250
To dep. On plant & machinery		4,500
To insurance paid.	700
Less: unexpired	100	600
To manager’s commission		550
To Net profit A/c		5,500
		40,600		40,600

Balance Sheet
Labilities		Amount	Assets		Amount
Capital A/c	80,000		Debtors	20,600
Add: Net Profit	5,500		Less: bad debts	600
Less: Drawing	6,000	79,500	Less: provision	1,000	19,000
Creditor		10,000	Cash in hand		6,200
Manager commission due		550	Cash at bank		20,500
			Closing stock		14,000
			Furniture & fitting	5,000
			Less: depreciation	250	4,750
			Machinery	25,000
			Less: depreciation	4,500	20,500
			Insurance claim		5,000
			Unexpired insurance		100
		90,050			90,050