Question No 43 Chapter No 18 – USHA Publication 11 Class

Question No 43 Chapter No 18

Question No 43 Chapter No 18

Goods withdrawn for business and personal use

43. From the following trial balance of Sukhdev Singh, prepare trading and profit and loss account for the year ended 31st March, 2019 and a balance sheet as on that date.

Ledger Accounts Dr.  Cr
Plant and machinery 19,720  –
Manufacturing wages 34,965
Salaries 15,965
Fixtures and fittings 9,480
Carriage inwards 1,980
Carriage outwards 2,150
Freehold works 25,000
Manufacturing expenses 9,455
Insurance and taxes 4,175
Goodwill 30,000
General expenses 8,142
Factory fuel and power 1,276
Sundry debtors 78,140
Lighting factory 986
Stable expenses for distribution 2,473
Stock 1st April, 2018 34,170
Horses and carts 5,165
Purchases 97,165
Sales returns 3,170
Discount 928
Bad debts 1,485
Interest and bank charges 475
Cash at bank 7,540  –
Cash in hand 145
Abdul Rahman’s capital a/c 80,000
Sundry creditors 54,160
Bank loan 10,000
Purchases returns 1,140
Reserve for bad & doubtful debts 2,000
Sales 2,46,850
  3,94,150 3,94,150

Adjustments :
(i)Stock on 31st March, 2019 29,630.
(ii) Depreciation — plant and machinery @ 10%, fixtures and fitting @ 5%, horses and carts 1000.
(iii) Bring provision for bad and doubtful debts to 5%.
(iv) Unexpired insurance 300 and taxes 190.
(v) A commission of 1% on the gross profit to be provided for works manager.
(vi) A commission of 5% on net profit after charging the works manager’s commission to be credited to general manager.

 

The solution of Question No 43 Chapter No 18:-

Trading A/c
Particular
Amount Particular
Amount
To Opening stock A/c   34,170 By Sale A/c 2,46,850  
To Purchases A/c 97,165   Less: return 3,170 2,43,680
Less: Transfer to land and building 1,140 96,025      
To manufacturing wages A/c   34,965 By Closing Stock A/c   29,630
To carriage inwards A/c   1,980      
To manufacturing Exp. A/c   9,445      
To fuel & power A/c   1,276      
To lighting A/c   986      
To Gross Profit A/c   94,453      
    2,73,310     2,73,310

 

Profit/Loss A/c
Particular
Amount Particular
Amount
To salaries   15,965 By Gross Profit A/c   94,453
To Carriage outwards   2,150      
To General Exp.   8,142      
To Stable exp. For distribution   2,473      
To insurance & taxes 4,175        
Less: Prepaid 490 3,685      
To bad debts w/off 1,485        
Add: reserve for doubtful debts 3,907        
Less; old provision 2,000 3,392      
To discount   928      
To interest on bank loan   475      
To Dep. On plant & machinery   1,972      
To Dep. On fixtures & fitting   474      
To Dep. On Horses and carts   1,000      
To works manager commission   945      
To Gen. manager commission   2,643      
To Net profit A/c   20,509      
    94,453     94,453

 

Balance Sheet
Labilities
Amount Assets
Amount
Capital A/c 80,000   Debtors  78,140  
Add: Net Profit 50,209 1,30,209 Less: provision 3,907 74,233
Creditor   54,160 Cash at bank   145
Bank loan   10,000 Cash at bank   7,540
Outstanding commission work manager.   975 Fixtures & fittings 9,480  
Outstanding commission Gen. manager.   2,643 Less: depreciation 474 9,006
      Plant & machinery 19,720  
      Less: depreciation 1,972 17,748
      Horses & carts 5,165  
      Less: depreciation 1,000 4,165
      Freehold works   25,000
      Goodwill   30,000
      Prepaid insurance & taxes   490
      Closing stock   29,630
           
    2,53,542     2,53,542

 

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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