Question no 48 Chapter No 16 - Unimax Class 11

Question No 48 Chapter No 16 – Unimax Class 11

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The solution of Question No 48 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 balance of Mr. Madan Mohan prepare trading and profit and loss A/c for the year ending 31st December, 2020 and a balance sheet as on that date:

Debit balance	₹	Credit balance	₹
Cash in hand	10,000	Sales	1,80,500
Opening stock	40,800	Purchases returns	195
Wages	22,525	Loan at 12% on 1.4.2020	20,000
Purchases	1,30,295	Creditors	30,305
Returns inward	2,400	Discount	530
Repairs	1,675	Capital	37,500
Bad debts	2,310
Interest on loan	600
Salaries	8,000
Sales tax	800
Octroi	500
Insurance	1,000
Charity	125
Rent	2,000
Machinery	16,000
Debtors (including Ashok for dishonored bill of ₹ 800)	30,000

Adjustments :
(1) Wages include ₹ 2,000 erection of new machinery on 1.1.2020.
(2) Stock on 31st December, 2020was ₹ 40,925
(3) Provide 5% depreciation on machinery
(4) Salaries unpaid ₹ 800
(5) Half the amount of Ashok’s bill is irrecoverable create a provision at 5% on the debtors
(6) Create a provision at 5% on the debtors
(7) Rent is prepaid up to 31st March,2021
(8) Insurance unexpired ₹ 300.

The solution of Question No 48 Chapter No 16 – UNIMAX Class 11

Trading and Profit & Loss A/c of MR. Madan Mohan
For the year ended 31st December,2020

Particulars		Amount	Particulars		Amount
To Opening stock		40,800	By sales	1,80,500
To purchases	1,30,295		Less: Returns	2,400	1,78,100
Less: Returns	195	1,30,100	By Closing stock		40,925
To Wages	22,525
Add: Machinery wages	2,000	1,30,100
To Octroi		500
To Gross Profit (transferred to P & L A/c)		27,100
		2,19,025			2,19,025
To Dep. On Machinery		900	By Gross Profit b/d		27,100
To Salaries	8,000		By Discount		530
Add: Outstanding salaries	800	8,800
To Bad debts	2,310
Add: Further bad debts	400
Add: New provision	1,460	4,170
To Repairs		1,675
To Interest on loan	600
Add: Outstanding interest	1,200	1,800
To Insurance	1,000
Less: prepare insurance	300	700
To Charity		125
To Rent	2,000	8,375
Less: Prepare rent	500	1,500
To Sales Tax		800
To Net Profit		7,160
(Transferred to capital)
		27,630			27,630

Balance Sheet of MR. Madan Mohan
As on 31st December 2020

Liabilities		Amount	Assets		Amount
Creditors		30,305	Cash		10,000
Capital	37,500		Machinery	16,000
Add: Net profit	7,160	44,660	Add: Wages	2,000
Loan		20,000	Less: Depreciation	900
Outstanding interest		1,200	Debtors	30,000
Outstanding Salaries		800	Less: bad debts	400
			Less: Provision	1,46	28,140
			Closing stock		40,925
			Prepaid insurance		300
			Prepaid rent		500
		96,965			96,965