Question No 42 Chapter No 18 – USHA Publication 11 Class

Question No 42 Chapter No 18
Q-42 - CH-18 - USHA +1 Book 2020 - Solution

Question No 42 Chapter No 18

Goods withdrawn for business and personal use

42. The following balances are extracted from the books of Saurab :

Ledger balances Rs Ledger balances Rs
Cash in hand 960 Drawings 15,000
Cash at bank 26,320 Claim received against goods 3,200
Land & building 49,000 Wages 45,600
Plant & machinery 30,000 Salaries 9,000
Furniture and fixture 3,500 Bad debts provision 4,200
Loose tools 3,000 Sales returns 3,750
Bill receivable 2,600 Bank charges 430
Purchases adjusted 76,500 Fuel and water 1,550
Bad debts 750 Rent and taxes 1,490
Loan to Raj @10% p.a. 10,000 Discount (Dr.) 300
Interest from Raj 500 Miscellaneous expenses 3,250
Carriage inward 2,100 Sundry debtors 77,800
Capital  1,95,600 Sundry creditors 27,200
Sales 1,96,000 Stock on 31st March, 2018 61,200
Carriage outward 1,400 Fire insurance 1,200

Adjustments:
Prepare the balance sheet and trading and profit and loss account as on and for the year ended 31st March 2018, after giving effect to the following adjustments
(a) Depreciation to be charged on land and building @ 2.5%, on plant and machinery at 10% and furniture and fixture at 10%.
(b) Provision for doubtful debts to be made at 5% and for a discount at 2%.
(c) The unexpired amounts to be carried forward are fire insurance 200 and rates and taxes 500. (d) Loose tools were valued at 1,200 on 31st March 2018.
(e) Of the sundry debtors 800 are bad and should be written/off.
(f) Trade expenses 300 have not yet been paid and wages include 500 spent on installation of machinery purchased

 

The solution of Question No 42 Chapter No 18:-

Trading A/c
Particular
Amount Particular
Amount
To Purchases A/c   76,500 By Sale A/c 1,96,000  
To wages A/c 45,600   Less: return 3,750 1,92,250
Less: wages paid for installation 500 45,100      
To fuel & power A/c   1,550 By Closing Stock A/c   3,200
To carriage inwards A/c   2,100      
To Gross Profit A/c   70,200      
    1,95,450     1,95,450

 

Profit/Loss A/c
Particular
Amount Particular
Amount
To Carriage outwards   1,400 By Gross Profit A/c   70,200
To fire insurance 1,200   By Rent A/c 500  
Less: prepaid 200 1,000 Add: Interest accrued 500 1,000
To Rates & taxes 1,490        
Less: Paid in advice 500 990      
To provision for doubtful debts          
Add: bad debts 750        
Add: further bad debts 800        
Add: new provision 3,850        
Less: old provision 4,200 1,200      
To discount   300      
To provision for discount on debtors   1,463      
To Salaries   9,000      
To bank charges   430      
To miscellaneous Exp.   3,250      
To trade exp.   300      
To Dep. On land & building   1,225      
To Dep. On plant & machinery   3,050      
To Dep. Furniture & fixture   350      
To Dep. Loose tools   1,800      
To Net profit A/c   45,442      
    71,200     71,200

 

Balance Sheet
Labilities
Amount Assets
Amount
Capital A/c 1,95,600   Debtors  77,800  
Add: Net Profit 45,442   Less: bad debts 800  
Less: Drawing 15,000 2,26,042 Less: provision 3,850  
Creditor   27,200 Less: provision for discount 1,463 71,687
Outstanding trade exp.   300 Cash at bank   960
      Cash at bank   26,320
      Furniture & fitting 3,500  
      Less: depreciation 350 3,150
      Loose tools 3,000  
      Less: depreciation 1,800 1,200
      Closing Stock   61,200
      Bills receivable   2,600
      Loan to Raj   10,000
      Interest outstanding   500
      Fire insurance prepaid   200
      Rates & taxes prepaid   500
      Plant & machinery 30,000  
      Add: wages for installation 500  
      Less: depreciation 3,050 27,450
      Land & building 49,000  
      Less: depreciation 1,225 47,775
           
    2,53,542     2,53,542

 

Final Accounts: Meaning, Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

Balance Sheet: Meaning, Format & Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

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)

error: Content is protected !!