Question no 45 Chapter No 16 - Unimax Class 11

Question No 45 Chapter No 16 – Unimax Class 11

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The solution of Question No 45 Chapter No 16 – UNIMAX Class 11

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

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

From the following Trial Balance of Swarna Singh as at 31st March, 2020, prepare Trading and profit and loss Account and balance sheet:

Debit balance	₹	Credit balance	₹
Opening stock	15,500	Capital	60,000
Land and building	35,000	Loan form Mrs. Swarna Singh @9% p.a.	30,000
Machinery	50,000	Sundry creditors	9,600
Furniture and Fixtures	5,000	Purchases returns	2,100
Purchases	1,06,000	Sales	2,07,300
Salaries	11,000	Discount	1,200
General expenses	2,500	Output IGST	10,000
Rent	3,000
Postage expenses	1,400
Stationery	1,300
Wages	26,000
Freight on Purchases	2,800
Carriages on sales	4,000
Repairs	4,500
Bad debts	600
Cash in hand	4,100
Cash in bank	6,400
Sales returns	5,100
Input IGT	2,000
Input CGST	2,000
Input SGST	2,000
	3,20,200		3,20,200

Following further information was given:
(1) Wages for March, 2020 amounting to ₹ 2,100 have not yet been paid.
(2) Included in general expenses in an insurance premium of ₹ 600 paid in advance for the next year.
(3) A provision for doubtful debts @ 5% on sundry debtors is necessary.
(4) Depreciation is to be charged as follows.
Land and building 2%, Machinery 10% and Furniture and fixtures 15%.
(5) Loan form Mrs. Swaran Singh was taken on 1st October,2019. Interest has not yet been paid.
(6) The value of stock at hand on 31st March, 2020 was ₹ 14,900.
(7) Manager is entitled to a commission of 10% of the net profit after charging such commission.

The solution of Question No 45 Chapter No 16 – UNIMAX Class 11

Trading and Profit & Loss A/c of Swarna Singh
For the year ended 31st March, 2020

Particulars		Amount	Particulars		Amount
To Opening stock		15,500	By sales	2,07,300
To purchases	1,06,000		Less: Returns	5,100	2,02,200
Less: Returns	2,100	1,03,900	By Closing stock		14,900
To Freight on Purchases		2,800
To Wages	26,000
Add: Outstanding wages	2,100	28,100
To Gross Profit (transferred to P & L A/c)		66,800
		2,17,100			2,17,100
To Salaries		11,000	By Gross Profit b/d		66,800
To Rent		3,000	By Discount		1,200
To Postage expenses		1,400
To Stationery		1,300
To Repairs		4,500
To Carriages on sales		4,000
To General expenses	2,500
Less: Prepaid insurance	600	1,900
To Interest on loan @ 9% p.a.		1,350
To Bad debts	600
Less: Provision for doubtful debts	1,500	2,100
To Depreciation on:
Land and building	700
Machinery	5,000
Furniture and Fixtures	750
To Commission to Manager (WN)		2,818
To Net Profit (Transferred to capital)		28,182
		68,000			68,000

Balance Sheet of Swarna Singh
AS 0n 31st March, 2020

Liabilities		Amount	Assets		Amount
Current Liabilities			Current Assets
Sundry Creditors		9,600	Cash in hand		4,100
Outstanding wages		2,100	Cash at bank		6,400
Output IGST		4,000	Sundry debtors	30,000
Manager’s commission payable (WN)		2,818	Less: Provision for doubtful debts	1,500	28,500
Mrs. Swarna Singh loan	30,000		Closing stock		14,900
Add: Interest on loan	1,350	31,350	Prepaid Insurance		600
Capital			Fixed assets
Opening balance	60,000		Furniture and Fixtures	5,000
Add: Net profit	28,182	88,182	Less: Depreciation	750	4,250
			Machinery	50,000
			Less: Depreciation	5,000	45,000
			Land and Building	35,000
			Less: Depreciation	700	34,300
		1,38,050			1,38,050

Working Note: profit before charging commission is ₹ 31,000. Commission payable @ 10% of net profit after charging such commission.

(I).Manager’s commission	= Net profit x % of commission 100+% of commission
	= 31,000 x10/110 = ₹ 2,818
(II).Interest on loan @ 9% p.a.	= 30,000 x9/100 x 6 /12 = ₹ 1,350.