Question No 42 Chapter No 18
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Video Tag:Goods withdrawn for business and personal use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
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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. 2 – Theory Base of Accounting
Chapter No. 3 – Origin of Transactions
Chapter No. 4 – Vouchers and transactions
Chapter No. 6 – Accounting for Goods and Services Tax(GST)
Chapter No. 9 – Other Subsidiary Books
Chapter No. 10 – Journal Proper
Chapter No. 11 – Trial Balance
Chapter No. 12 – Bank Reconciliation Statement
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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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