Question no 44 Chapter No 16 - Unimax Class 11

Question No 44 Chapter No 16 – Unimax Class 11

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The solution of Question No 44 Chapter No 16 – UNIMAX Class 11

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

The following balance were extracted form the books of Shri R. Lal on March 3, 2020.

Ledger A/v	₹	Ledger A/v	₹
Capital	1,00,000	Rent (Cr.)	2,100
Drawings	17,600	Railway freight on sales	16,940
Purchases	80,000	Carriage inwards	2,310
Sales	1,40,370	Office expenses	1,340
Purchases returns	2,820	Printing and stationery	660
Stock on April 1.4.2019	11,460	Postage and telegram	820
Bad debts	1,400	Sundry debtors	62,070
Bad debs reserve on 1.4.2019	3,240	Sundry creditors	18,920
Rates and Insurance	1,300	Cash at bank	12,400
Discount (Cr.)	190	Cash in hand	2,210
Bills receivable	1,240	Office furniture	3,500
Sales returns	4,240	Salaries and commission	9,870
Wages	6,280	Addition to Building	7,000
Buildings	25,000

Prepare trading and profit and loss account and a balance sheet as on March 31st ,2020 after keeping
in view the following adjustments:
(1) Depreciation old building by ₹ 625 and addition to buildings at 2% and office furniture at 5%.
(2) Write off further bad debts ₹ 570.
(3) Increase the bad debts reserve to 6% if debtors.
(4) On March 31,2020 ₹ 570 are outstanding for salary.
(5) Rent received ₹ 200 on March 31,2020.
(6) Interest on capital at 5% to be charged.
(7) Unexpired insurance ₹ 240.
(8) Stock was valued at ₹14,290 on March 31,2020.

The solution of Question No 44 Chapter No 16 – UNIMAX Class 11

Trading and Profit & Loss A/c of Shri R. Lal
For the year ended 31st March, 2020

Particulars		Amount	Particulars		Amount
To Opening stock		11,460	By sales	1,40,370
To purchases	80,000		Less: Returns	4,240	1,36,130
Less: Returns	2,820	77,180	By Closing stock		14,290
To Carriage inwards		2,310
To Wages		6,280
To Gross Profit
(transferred to P & L A/c)		53,190
		1,50,420			1,50,420
To bad debts	1,400		By Gross Profit b/d		53,190
Add: Further bad debts	570		By Rent	2,100
Add: New reserve	3,690		Add: Accrued rent	200	2,300
Less: Old reserve	3,240	2,420	By Discount		190
To Dep. On old building		625
To Dep. On addition building		140
To Dep. On office furniture		175
To Salaries and commission	9,870
Add: O/S Salary	570	1,0,440
To interest on capital		5,000
To Rates & insurance	1,300
Less: prepaid insurance	240	1,060
To Railway freight on sales		16,940
To Office expenses		1,340
To Printing and stationery		660
To Postage and telegram		820
To Net Profit (Transferred to capital)		16,060
		55,680			55,680

Balance Sheet of Shri R.LAL
AS 0n 31st March, 2020

Liabilities		Amount	Assets		Amount
Capital	1,00,000		Bills Receivable		1,240
Add: Net Profit	16,060		Sundry debtors	62,070
Add: Interest on capital	5,000		Less: further bad debts	570
Less: Drawings	17,600	1,03,460	Less: New reserve	3,690	57,810
Outstanding salary		570	Cash at bank		12,400
Sundry creditors		18,920	Cash in hand		2,210
			Office furniture	3,500
			Less: Depreciation	175	3,325
			Building	25,000
			Less: Depreciation	625	24,375
			Addition to Building	7,000
			Less: Depreciation	140	24,375
			Accrued Rent		200
			Prepaid insurance		240
			Closing stock		14,290
		1,22,950			1,22,950