Question 1

Question No 01 Chapter No 14 - USHA Publication  11 Class

Sarbjit Singh · Accepted Answer

Question No 01 Chapter No 14
1. SS Limited earned a net profit of RS 12,00,000 during the years 2018-19. the company created general reserve Rs 2,00,000 and dividend equalization reserve Rs 3,50,000 out of profit Pass the necessary journal entry for the creation of reserves.
The solution of Question No 01 Chapter No 14: -
In the Books of SS Limited

Date
Particulars
L.F.
Debit
Credit

2019

Mar. 31
Profit/Loss A/c
Dr.
 
5,50,000

To General Reserves A/c
 
 
 
2,00,000

To

Question 2

Question No 02 Chapter No 14 - USHA Publication  11 Class

Sarbjit Singh · Accepted Answer

Question No 02 Chapter No 14
2. The paid up capital of the company id Rs 5,00,000. the profits earned during the current year were only Rs 40,000. for previous many years, company is declaring a uniform dividend @12% on capital and it is decided to continue the same practice this year also. The balance id Dividend Equalization reserve at the beginning of the year i.e. 1.4.2017 was Rs 1,60,000.Give entries to record the above and show necessary accounts.
The solution of Question No 02 Chapter No

Question 3

Question No 03 Chapter No 14 - USHA Publication  11 Class

Sarbjit Singh · Accepted Answer

Question No 03 Chapter No 14
Provision for Doubtful debit and for discount on Debtors
3. On 1stApril 2016 provision for doubtful debts account showed a credit balance of Rs 4,000. bad debts during the years 2016-17, 2017-18 and 2018-19 were Rs 2,600, Rs 1,300 and Rs 600 respectively. The debtors on 31st March 2017, 2018 and 2019 were Rs 40,000 , Rs 50,000 and Rs 18,000 respectively. Provision for doubtful debts is required to be maintained at 5% every yearsPrepare Provision for Doubtful Account

Question 4

Question No 04 Chapter No 14 - USHA Publication  11 Class

Sarbjit Singh · Accepted Answer

Question No 04 Chapter No 14
Provision for Doubtful debit and for discount on Debtors
4. On 1st April 2015 credit balance of provision for doubtful debts account was Rs 2,700. During the years 2015-16 bad debts amounted for doubtful debts account was Rs 2,100. on 31st March 2016 debtors were Rs 1,26,000 provision @5% is created for doubtful debts on this amount.In 2016-17 bad debts amounted to Rs 2,160. on 31st March 2017 debtors were Rs 75,000. provision 5% for doubtful debts is created on thi

Question 5

Question No 05 Chapter No 14 - USHA Publication  11 Class

Sarbjit Singh · Accepted Answer

Question No 05 Chapter No 14
Provision for Doubtful debit and for discount on Debtors
5. The following balance appeared inn the book of Mamta Banerjee on 1st April 2017:

Rs

Sundry Debtors
85,000

Provision for bad and doubtful debts
1,700

Provision for discount on debtors
1,666

On 31st March, 2018 debtors were Rs 1,25,000. during the year, bad debts amounted to Rs 1,500 and discount allowed Rs 166. you required to create 3% provision for doubtful debts and 2% discount on Debtors.Pr

Question 6

Question No 06 Chapter No 14 - USHA Publication  11 Class

Sarbjit Singh · Accepted Answer

Question No 06 Chapter No 14
Provision for Doubtful debit and for a discount on Debtors
6. The following figure is given

Rs

Provision for doubtful debts on 1st April 2017
2,000

Provision for discount on debtors on 1st April 2017
950

Bad debts are written off during 2017-18
1,300

Discount allowed during 2017-18
1,090

Debtors as on 31st March 2018
30,000

The provision for debts is to be maintained at 5% of the debtors and the provision for discount on debts at 2%. Given journal

Question 7

Question No 07 Chapter No 14 - USHA Publication  11 Class

Sarbjit Singh · Accepted Answer

Question No 07 Chapter No 14
Provision for Doubtful debit and for discount on Debtors
7. In a concern, where the current expenditure on repairs is comparatively low it is anticipated that expenditure in subsequent period will be considerable, you find that repair reserve is created and credited every year for Rs 90,000If the actual repair amounted to Rs 9,000, Rs 21,000 and Rs 33,000 in three years respectively what would be the revenue charges for three respective years.
The solution of Questi

Question 8

Question No 08 Chapter No 14 - USHA Publication  11 Class

Sarbjit Singh · Accepted Answer

Question No 08 Chapter No 14
Provision for Doubtful debit and for discount on Debtors
8. Bharat cotton Mills Ltd. Created a repairs and renewals provision on and from 31st march 2017 by charging Rs 2,000 each year to revenue. During the three years ended on 31st March 2019 the total expenses on repairs and renewals were: 2016-17 Rs 1,360; 2017-18 Rs 1,896 and 2018-19 Rs 2,016 respectively.You are required to show the ledger count for three years.
The solution of Question No 08 Chapter No 14: -

Question 9

Question No 09 Chapter No 14 - USHA Publication  11 Class

Sarbjit Singh · Accepted Answer

Question No 09 Chapter No 14
Sinking fund for Repayment of Loan
9. On 1srt April 2015 a company abstained a loan of Rs 60,000 from a finance company, which was repayable after three years. A sinking fund was created for the repayment of the loan and every year the amount provided was invested in an investment earning 5% p.a. Sinking Fund table shows that Re. 0.317200 invested each year at 5% will amount to Re. 1 after three years at compound interest. The investment was sold for Rs 39,000 at th

Question 10

Question No 10 Chapter No 14 - USHA Publication  11 Class

Sarbjit Singh · Accepted Answer

Question No 10 Chapter No 14
Sinking fund for Repayment of Fixed Assets
10. On 1st April 2015 a company obtained the lease of machinery for Rs 1,00,000. it was decided that a depreciation fund should be created for its renewal for four years. According to sinking fund table, the annual instalment of depreciation amounts to Rs 28,201.20 at 5% interest p.a.Prepare depreciation fund account for four years period.
The solution of Question No 10 Chapter No 14: -

Dr.
Provision for Doubtful Debts A

Question 11

Question No 11 Chapter No 14 - USHA Publication  11 Class

Sarbjit Singh · Accepted Answer

Question No 11 Chapter No 14
Provision for Taxation
11. The opening balance in provision for taxation account was Rs 3,00,000 on 1.4.2018. the business enterprise earned a net profit of Rs 12,00,000 during the year 2018-19.Prepare the necessary accounts for the year 2018-19 when rate of taxation was 30%
The solution of Question No 11 Chapter No 14: -

Dr.
Provision for Doubtful Debts A/c
Cr.

Dat
Particulars
J.F.
Amount
Date
Particulars
J.F.
Amount

01/04/18
By Balance b/d
 
3,00,00

USHA Publication +1 Elements of Book-Keeping Solutions Chapter No 14 - Provision And Reserves

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Table of Contents

Question No 01 Chapter No 14 - USHA Publication 11 Class

The solution of Question No 01 Chapter No 14: -

Question No 02 Chapter No 14 - USHA Publication 11 Class

Question No 03 Chapter No 14 - USHA Publication 11 Class

Question No 04 Chapter No 14 - USHA Publication 11 Class

Question No 05 Chapter No 14 - USHA Publication 11 Class

Question No 06 Chapter No 14 - USHA Publication 11 Class

Question No 07 Chapter No 14 - USHA Publication 11 Class

Question No 08 Chapter No 14 - USHA Publication 11 Class

Question No 09 Chapter No 14 - USHA Publication 11 Class

Question No 10 Chapter No 14 - USHA Publication 11 Class

Question No 11 Chapter No 14 - USHA Publication 11 Class

Sarbjit SinghB.Com and M.Com

Date	Particulars		Debit	Credit
2019
Mar. 31	Profit/Loss A/c	Dr.	5,50,000
	To General Reserves A/c			2,00,000
	To Dividend Equalisation Reserve A/c			3,50,000
	(Being the reserves created out of profit.)