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Goods withdrawn for business and personal use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 balancesRsLedger balancesRs
Cash in hand960Drawings15,000
Cash at bank26,320Claim received against goods3,200
Land & building49,000Wages45,600
Plant & machinery30,000Salaries9,000
Furniture and fixture3,500Bad debts provision4,200
Loose tools3,000Sales returns3,750
Bill receivable2,600Bank charges430
Purchases adjusted76,500Fuel and water1,550
Bad debts750Rent and taxes1,490
Loan to Raj @10% p.a.10,000Discount (Dr.)300
Interest from Raj500Miscellaneous expenses3,250
Carriage inward2,100Sundry debtors77,800
Capital 1,95,600Sundry creditors27,200
Sales1,96,000Stock on 31st March, 201861,200
Carriage outward1,400Fire insurance1,200

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
To Purchases A/c 76,500By Sale A/c1,96,000 
To wages A/c45,600 Less: return3,7501,92,250
Less: wages paid for installation50045,100   
To fuel & power A/c 1,550By 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
To Carriage outwards 1,400By Gross Profit A/c 70,200
To fire insurance1,200 By Rent A/c500 
Less: prepaid2001,000Add: Interest accrued5001,000
To Rates & taxes1,490    
Less: Paid in advice500990   
To provision for doubtful debts     
Add: bad debts750    
Add: further bad debts800    
Add: new provision3,850    
Less: old provision4,2001,200   
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
Capital A/c1,95,600 Debtors 77,800 
Add: Net Profit45,442 Less: bad debts800 
Less: Drawing15,0002,26,042Less: provision3,850 
Creditor 27,200Less: provision for discount1,46371,687
Outstanding trade exp. 300Cash at bank 960
   Cash at bank 26,320
   Furniture & fitting3,500 
   Less: depreciation3503,150
   Loose tools3,000 
   Less: depreciation1,8001,200
   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 & machinery30,000 
   Add: wages for installation500 
   Less: depreciation3,05027,450
   Land & building49,000 
   Less: depreciation1,22547,775
  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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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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