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Goods withdrawn for business and personal use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 AccountsDr. Cr
Plant and machinery19,720 –
Manufacturing wages34,965
Salaries15,965
Fixtures and fittings9,480
Carriage inwards1,980
Carriage outwards2,150
Freehold works25,000
Manufacturing expenses9,455
Insurance and taxes4,175
Goodwill30,000
General expenses8,142
Factory fuel and power1,276
Sundry debtors78,140
Lighting factory986
Stable expenses for distribution2,473
Stock 1st April, 201834,170
Horses and carts5,165
Purchases97,165
Sales returns3,170
Discount928
Bad debts1,485
Interest and bank charges475
Cash at bank7,540 –
Cash in hand145
Abdul Rahman’s capital a/c80,000
Sundry creditors54,160
Bank loan10,000
Purchases returns1,140
Reserve for bad & doubtful debts2,000
Sales2,46,850
 3,94,1503,94,150

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
AmountParticular
Amount
To Opening stock A/c 34,170By Sale A/c2,46,850 
To Purchases A/c97,165 Less: return3,1702,43,680
Less: Transfer to land and building1,14096,025   
To manufacturing wages A/c 34,965By 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
AmountParticular
Amount
To salaries 15,965By 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 & taxes4,175    
Less: Prepaid4903,685   
To bad debts w/off1,485    
Add: reserve for doubtful debts3,907    
Less; old provision2,0003,392   
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
AmountAssets
Amount
Capital A/c80,000 Debtors 78,140 
Add: Net Profit50,2091,30,209Less: provision3,90774,233
Creditor 54,160Cash at bank 145
Bank loan 10,000Cash at bank 7,540
Outstanding commission work manager. 975Fixtures & fittings9,480 
Outstanding commission Gen. manager. 2,643Less: depreciation4749,006
   Plant & machinery19,720 
   Less: depreciation1,97217,748
   Horses & carts5,165 
   Less: depreciation1,0004,165
   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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