Question No 41 Chapter No 18 – USHA Publication 11 Class

Question No 41 Chapter No 18

Question No 41 Chapter No 18

Goods withdrawn for business and personal use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 balancesRsLedger balancesRs
Trade expenses800Purchases during the year82,000
Freight & duty2,000Stock on 1st April 201815,000
Carriage outwards500Plant and machinery (on 1-4-18)20,000
Sundry debtors20,600Plant and machinery5,000
  (additions on 1-10-18) 
Furniture & fixture5,000Drawings6,000
Returns inwards2,000Capital80,000
Printing & stationery400Reserve for doubtful debts800
Rent ,rates & taxes4,600Rent for premises sublet1,600
Sundry creditors10,000Insurance charges700
Sales1,20,000Salaries and wages700
Returns outwards1,000Cash in hand6,200
Postage & telegrams800Cash at bank20,500

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
AmountParticular
Amount
To Opening Stock A/c 15,000By Sale A/c1,20,000 
To Purchases A/c82,000 Less: return2,0001,18,000
Less: return1,00081,000   
To fright & duty A/c 2,000By Closing Stock A/c 14,000
To Gross Profit A/c 39,000   
  1,37,000  1,37,000

 

Profit/Loss A/c
Particular
AmountParticular
Amount
To Trade expenses 800By Gross Profit A/c 39,000
To carriage outwards 500By Rent A/c 1,600
To printing & stationery 400   
To Rent ,rates & taxes 4,600   
To Bad debts w/off during the year600    
Add: new provision1,000    
Less: old provision800800   
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: unexpired100600   
To manager’s commission 550   
To Net profit A/c 5,500   
  40,600  40,600

 

Balance Sheet
Labilities
AmountAssets
Amount
Capital A/c80,000 Debtors 20,600 
Add: Net Profit5,500 Less: bad debts600 
Less: Drawing6,00079,500Less: provision1,00019,000
Creditor 10,000Cash in hand 6,200
Manager commission due 550Cash at bank 20,500
   Closing stock 14,000
   Furniture & fitting5,000 
   Less: depreciation2504,750
   Machinery25,000 
   Less: depreciation4,50020,500
   Insurance claim 5,000
   Unexpired insurance 100
  90,050  90,050

 

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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