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Question 19 Chapter No 17 – Class 11 Unimax
Jiya keeps in complete records. During the year 2019-20 he kept a cash book of which the following is an analysis:
Receipts: Received from Debtors ₹ 60,000; Cash sales ₹ 30,000; Additional capital introduced ₹ 60,000; Interest on investments ₹ 4,000.
Payments: Paid to Creditors ₹ 40,000; Salaries ₹ 10,000; Rent ₹ 7,000; General expenses ₹ 6,000; Wages ₹ 20,000; Drawings ₹ 9,000; Cash purchases ₹ 15,000.
His other Assets and Liabilities:
| 31-3-2019 | 31-3-2020 | |
| Debtors | 10,000 | 12,000 |
| Creditors | 10,000 | 5,000 |
| Stock | 22,000 | 30,000 |
| Machinery | 90,000 | 90,000 |
| Furniture | 12,000 | 12,000 |
| Cash in hand | 9,000 | |
| Investments | 30,000 | 30,000 |
Adjustments:
(1) Provide 5% on debtors for doubtful debts.
(2) Outstanding salary ₹ 750.
From the above information, prepare the Trading & Profit and Loss A/c for the year ended 31st March, 2020 and Balance Sheet as at that date.
The solution of Question 19 Chapter No 17 – Class 11 Unimax
Cash book
| Receipts | Amount | Payments | Amount |
| To Balance b/d (1-4-2019) | 9,000 | By Payments to Creditors | 40,000 |
| To Receipts from debtors | 60,000 | By Salaries | 10,000 |
| To Cash sales | 30,000 | By Rent | 7,000 |
| To Additional capital | 60,000 | By General expenses | 6,000 |
| To Interest on Investments | 4,000 | By Wages | 20,000 |
| By Drawings | 9,000 | ||
| By Cash Purchases | 15,000 | ||
| By Balance c/d (balance figure on 31-3-2020) | 56,000 | ||
| 1,63,000 | 1,63,000 |
Total Debtors A/c
| Particulars | Amount | Particulars | Amount |
| To Balance b/d (1-4-2019) | 10,000 | By cash received from debtors | 60,000 |
| To Credit sales (Balance figure) | 62,000 | By Balance c/d (31-3-2020) | 12,000 |
| 72,000 | 72,000 |
Total Creditors A/c
| Particulars | Amount | Particulars | Amount |
| To Cash paid to creditors | 40,000 | By Balance b/d (1-4-2019) | 10,000 |
| To Balance c/d (31-3-2020) | 5,0000 | To Creditors purchases (Balance figure) | 35,000 |
| 45,000 | 45,000 |
Opening Balance Sheet
As at 1st April 2019
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| Liabilities | Amount | Assets | Amount |
| Creditors | 10,000 | Cash in hand | 9,000 |
| Capital (Balance figure) | 1,63,000 | Debtors | 10,000 |
| Stock | 22,000 | ||
| Investments | 30,000 | ||
| Furniture | 12,000 | ||
| Machinery | 90,000 | ||
| 1,73,000 | 1,73,000 |
Trading and Profit and Loss A/c
For the year ending 31st March, 2020
| Particulars | Amount | Particulars | Amount | ||
| To Opening stock | 22,000 | By Sales: | |||
| To Purchases: | Cash sales | 30,000 | |||
| Cash purchases | 15,000 | Credit sales | 62,000 | 92,000 | |
| Credit purchases | 35,000 | 50,000 | By Closing stock | 30,000 | |
| To Wages | 20,000 | ||||
| To Gross Profit c/d | 30,000 | ||||
| 1,22,000 | 1,22,000 | ||||
| To Salaries | 10,000 | By Gross Profit B/d | 30,000 | ||
| Add: Outstanding | 750 | 10,750 | By Interest on Investments | 4,000 | |
| To Rent | 7,000 | ||||
| To General expenses | 6,000 | ||||
| To Provision for doubtful debts | 600 | ||||
| To Net profit | 9,650 | ||||
| 34,000 | 34,000 | ||||
Balance Sheet
As at 31st March, 2020
| Liabilities | Amount | Assets | Amount | ||
| Creditors | 5,000 | Cash in hand | 56,000 | ||
| Outstanding salary | 750 | Debtors | 12,000 | ||
| Capital | 1,63,000 | Less: provision for doubtful debts | 600 | 11,400 | |
| Add: Additional capital | 60,000 | Stock | 30,000 | ||
| Add: Net Profit | 9,650 | Investments | 30,000 | ||
| Less: Drawing | 9,000 | 2,23,650 | Furniture | 12,000 | |
| Machinery | 90,000 | ||||
| 2,29,400 | 2,29,400 | ||||
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