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Goods withdrawn for business and personal use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 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

 

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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