Question no 46 Chapter No 16 - Unimax Class 11

Question No 46 Chapter No 16 – Unimax Class 11

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The solution of Question No 46 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 extracted from the books of M/s. Bhushan & Sons. Prepare a Trading and profit & Loss A/c for the year ended 30th September, 2019 and a Balance sheet as on that date:

Particulars	Debit	Credit
Bhushan’s Capital		90,000
Bhushan’ Drawings	6,480
Land & Building	25,000
Plant & Machinery	14,270
Furniture and Fixtures	1,250
Carriages inwards	4,370
Wages	21,470
Salaries	4,670
Provision for bad debts		2,470
Sales		91,230
Sales return	1,760
Bank Charges	140
Coal & Gas, water	720
Rate & Taxes	840
Discount		120
Purchases	42,160
Purchases return		8,460
Bills Receivable	1,270
Trade expenses	1,990
Sundry debtors	37,800
Sundry creditors		12,170
Stock 1.10.2018	26,420
Apprentice premium		500
Fire insurance	490	20,000
Cash in hand	850
Cash in bank	13,000
	2,04,950	2,04,950

Charge depreciation on Land & Building A/c at 21/2%, on Plant & Machinery A/c at 10% and on Furniture and Fixtures A/c, A/c 10%. Make a provision of 5% on the sundry debtors, for bad debts. Carry forward the following unexpired amounts.
Fire insurance ₹ 125.
Rates & Taxes ₹ 240.
Apprentice premium ₹ 400.
Charges 5% interest on capital and on Drawing ₹ 300, the valued of stock as on 30th September, 2019 was agreed at ₹ 39,390.

The solution of Question No 46 Chapter No 16 – UNIMAX Class 11

Trading and Profit & Loss A/c of M/s Bhushan & Sons.
For the year ended 31st September,2019

Particulars		Amount	Particulars		Amount
To Opening stock		26,420	By sales	91,230
To purchases	42,160		Less: Returns	1,760	89,470
Less: Returns	8,460	33,700	By Closing stock		29,390
To Carriages inwards		4,370
To Wages		21,470
To Coal & Gas, water		720
To Gross Profit (transferred to P & L A/c)		32,180
		1,18,860			1,18,860
To Salaries		4,670	By Gross Profit b/d		32,180
To Depreciation on:			By old Provision for bad debts	2,470
Plant & Machinery		1,427	Less: New provision	1,890	580
On bad & building		625	By Discount		120
Furniture and Fixtures		125	By Apprentice premium	500
To Fire insurance	490		Less: Pre received premium	400	100
Less: Prepaid insurance	125	365	By Interest on Drawing		300
To bank charges		140
To Rate & Taxes	840
Less: Prepaid Rate & Taxes	240	600
To Trade expenses		1,990
To Interest on capital		4,500
To Net Profit		18,838
(Transferred to capital)
		33,280			33,280

Balance Sheet of M/s Bhushan & Sons.
As on 31st September 2019

Liabilities		Amount	Assets		Amount
Capital	90,000		Land & Building	25,000
Add: Net profit	18,838		Less: Depreciation	625	24,375
Add: Interest on capital	4,500		Plant & Machinery	14,270
Less: Drawings	6,480		Less: Depreciation	1,427	12,843
Less: Interest on drawing	300	1,06,558	Furniture and Fixtures	1,250
Sundry creditors		12,170	Less: Depreciation	125	1,125
Advance apprentice		400	Bills receivable		1,270
			Sundry debtors	37,800
			Less: Provision	1,890	35,910
			Bank		13,000
			Cash		850
			Closing stock		29,390
			prepaid Rent & Taxes		240
			Prepaid insurance		125
		1,19,128			1,19,128