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Question 22 Chapter No 16 – Class 11 Unimax

Question 22 Chapter No 16 – Class 11 Unimax

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Question 22 Chapter No 16 – Class 11 Unimax

Prepare Trading and Profit & Loss Account of UDHAM  Singh for 2019 and his balance sheet on 31sts December 2019 after making necessary adjustments.

Debit balance Credit balance
Opening stock 1.1.2019 10,000Bank overdraft 25,000
Cash in hand  4,000   
Purchases70,000Sales90,000
Returns inwards  3,000Capital30,000
Building30,000 Sundry creditors21,000
Furniture and fittings7,000Bad debts reserve2,000
Sundry debtors30,000Commission2,000
Petty cash and stamps in hand 200  
Carriage inwards800  
Salaries11,000  
Sundry Trade expenses 6,000  
Interest charged by bank 500  
Insurance paid for a year up to 30.6.2020 1,000  
Telephone charges 500   
 1,74,000   1,74,000

Also consider the following::

(1) Stock of goods 31.12.2019 ₹ 15,000.
(2) Building and Furniture are to be depreciation 2 10% and 20% respectively.
(3) Bad debts ₹ 1,000 are to be written off reserve of 5% is to be kept on remaining debtors.
(4) Commission received in advance ₹ 1,000.

The solution of Question 22 Chapter No 16 – Class 11 Unimax

Trading and Profit & Loss A/c of UDHAM  Singh
For the year ended 31st Dec., 2019

Particulars
AmountParticulars
Amount
To Opening stock 10,000By sales90,000 
To purchases70,000  Less: Returns inwards3,00087,000
Less: Returns outwards 4,000  closing stock  15,000
To Carriage Inwards 800   
To Gross Profit 
(transferred to P & L A/c)
 25,200   
  1,02,000  1,02,000
To Salaries 11,000By Gross Profit b/d 25,200
To Sundry Trade expenses 6,000By Commission2,000 
To interest 500Less: Advance commission1,0001,000
To Insurance1,000    
Less: Prepaid insurance500500   
To Telephone charge 500   
To Bad debts1000    
Add; New Reserve for bad debts1,450    
Less: Old bad debts reserve2,000450   
To Depreciation on Building 3,000   
To Depreciation on Furniture 1,400   
To Net Profit
(Transferred to capital) 
 2,850   
  26,200   26,200

Balance Sheet OF UDHAM SINGH
    as on 31st Dec 2019

Liabilities AmountAssetsAmount
Capital30,000 Cash in hand 4,000
Add: Net Profit2,85032,850Building30,000 
Sundry creditors 21,000Less: Depreciation3,000 
Advance commission 1,000Furniture Fitting7,000 
Bank Overdraft 25,000Less: Depreciation1,400 
    Sundry debtors 30,000 
   Less: Bad debts1,000 
    29,000 
   Less: New reserve for bad debts1,45027,550
   Petty cash and stamps in hand 200
   Prepaid insurance  500
   Closing stock 15,000
  79,850  79,850

 

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

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