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Question 45 Chapter No 16 – Class 11 Unimax
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 45 Chapter No 16 – Class 11 Unimax
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. |
End of Solution
Check Out the Solution of all questions for this chapter:
The solutions to all questions of Chapter 16 – Financial Statements (With Adjustments) Unimax – Class 11 are shown as follows, click on the image of the question to get the solution.
Question 2 Chapter No 16 – Class 11 Unimax
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Question 14 Chapter No 16 – Class 11 Unimax
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Question 26 Chapter No 16 – Class 11 Unimax
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Question 39 Chapter No 16 – Class 11 Unimax
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Question 51 Chapter No 16 – Class 11 Unimax
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1. Comprehensive Solutions for All Chapters of Advanced Accountancy I Class 11 by Unimax
UnimaxSolutions.in offers a comprehensive solution for students studying Advanced Accountancy I Part 1 in Class 11. With their meticulously curated study material, students can access comprehensive solutions to all the questions included within each chapter. By selecting the chapter name from the study material, students can easily navigate through the topics and find detailed explanations and step-by-step solutions to the problems presented in that section. Whether it’s understanding complex accounting concepts, mastering calculation techniques, or analyzing financial statements, Unimax provides a valuable resource to aid students in their learning journey. With these comprehensive solutions at their disposal, students can enhance their understanding, clarify doubts, and improve their problem-solving skills in Advanced Accountancy, ensuring they are well-prepared for their Class 11 examinations.
- Chapter No. 1 – Introduction of Accounting
- Chapter No. 2 – Theory Base of Accounting
- Chapter No. 3 – Vouchers and Transactions
- Chapter No. 4 – Journal
- Chapter No. 5 – Goods and Services Tax (GST): An Introduction
- Chapter No. 6 – Ledger
- Chapter No. 7 – Special Purpose Book – Cash Book
- Chapter No. 8 – Other Subsidiary Books
- Chapter No. 9 – Trial Balance
- Chapter No. 10 – Rectification of Errors
- Chapter No. 11 – Depreciation
- Chapter No. 12 – Provision and Reserves
- Chapter No. 13 – Bank Reconciliation Statement
- Chapter No. 14 – Bills of Exchange
- Chapter No. 15 – Financial Statements (Without Adjustments)
- Chapter No. 16 – Financial Statements (With Adjustments)
- Chapter No. 17 – Accounts from Incomplete Records – Single Entry System
2. Punjab School Education Board (PSEB) Solutions of Usha Publication.
If you’re a student enrolled in the Punjab School Education Board Class 11, it’s essential to explore a wide range of books to cover the syllabus thoroughly. While the prescribed textbooks are undoubtedly valuable, supplementing your studies with additional resources can enhance your understanding and knowledge. Consider checking out other books that align with the curriculum, offering different perspectives and insights on the subjects you’re studying. These supplementary materials can provide you with alternative explanations, practice questions, and examples that may aid in clarifying complex concepts. Moreover, exploring diverse sources can expose you to a variety of writing styles and viewpoints, fostering a broader understanding of the subjects. So, seize the opportunity to expand your learning by delving into other books that can complement your studies and contribute to your academic growth.
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