Question no 50 Chapter No 16 - Unimax Class 11

Question No 50 Chapter No 16 – Unimax Class 11

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The solution of Question No 50 Chapter No 16 – UNIMAX Class 11

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

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

Following are balance are the Trial balance on 31st March, 2020.

Particulars	₹	Particulars	₹
Stock on commencement	22,810	Interest on securities	3,200
Purchases	77,100	Land and building	5,00,000
Sales	1,87,400	Securities	3,00,000
Wages	63,000	Cash in hand	12,800
carriage inward	450	Bank overdraft	1,70,000
Freight on purchases	350	Discount allowed	750
Salaries	4,000	Discount received	210
Insurance charges	1,400	Bills payable	2,000
Duty on import of goods	2,100	Loan (Cr)	15,500
Repairs on machinery	700	Bills receivable	3,500
With drawls (for personal use)	2,800	Capital A/c	6,83,800
Customer’s A/c	7900	Supplier A/c	20,000
Postage	250	X’S Loan A/c	9,300
Trade expense	500	Plant & Machinery	91,000

Prepare Trading and Profit & Loss A/c for the year ended 31st March 2020 and Balance Sheet as that after taking into account the following adjustments.
(1) Closing stock was valued at ₹ 29,500.
(2) Depreciation to be provide on land and building @ 5% p.a. and on Plant and Machinery @ 10%.
(3) Write off ₹ 1,000 as bad debts
(4) Insurance was prepaid ₹ 350.
(5) Create provision for doubtful debts @ 5% on debtors.
(6) Wages include ₹ 2,400 for installation of a new machinery.
(7) Wages include ₹ 2,400 for installation of a new machinery.
(8) Plant & Machinery includes a machinery costing ₹ 48,000 which was purchases on 1st January 2020.

The solution of Question No 50 Chapter No 16 – UNIMAX Class 11

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

Particulars		Amount	Particulars	Amount
To Opening stock		22,810	By sales	1,87,400
To purchases		77,100	By Closing stock	29,500
Less: Returns
To Wages	63,000
Less: Installation wages	2,4000	60,600
To carriage inwards		450
To freight on purchases		350
To Duty on import		2,100
To Gross Profit (transferred to P & L A/c)		53,490
		2,16,900		2,16,900
To Salaries		4,000	By Gross Profit b/d	53,490
To Insurance charges	1,400		By Discount received	210
Less: prepaid	350	1,050	By interest on securities	3,200
To Repair		700
To Postage		250
To Trade expenses		500
To Discount allowed		750
To Dep. On Land & Building		25,000
To Dep. on Plant & Machinery		5,560
To Bad debts	1,000
Add: New Provision	345	4,345
To Net Profit (Transferred to capital)		17,745
		56,900		56,900

Balance Sheet
AS 0n 31st March, 2020

Liabilities		Amount	Assets		Amount
Capital	6,83,800		Land and Building	5,00,000
Add: Net profit	17,745		Less: Depreciation	25,000	4,75,000
Less: Drawings	2,800	6,98,745	Securities		3,00,000
Bank overdraft		1,70,000	Cash		12,800
Bills payable		2,000	Bills receivable		3,500
Loan		15,500	Closing stock		29,500
Supplier		20,000	Plant & Machinery	91,000
X’S Loan		9,300	Add: Installation	2,400
			Less: Depreciation	5,560
			Prepaid insurance		350
			Customer’s	7,900
			Less: bad debts	1,000
			Less: Provision	345	6,555
		9,15,545			9,15,545