Advertisement
Question 37 Chapter No 16 – Class 11 Unimax
From the following ledger balance prepare Trading and Profit & Loss Account for the year ended 31st March, 2020, and a balance sheet as on date:
| Balance | ₹ | Balance | ₹ |
| Capital A/c | 99,400 | Cash | 10,530 |
| Drawings A/c | 10,550 | Repairs and Renewals | 3,370 |
| Bills receivable | 9,500 | Bank | 18,970 |
| Plants & Machinery | 28,800 | Interest and Discount (Dr.) | 5,870 |
| Sundry debtors (including Madan’s dishonored bill ₹ 1,000) | 62,000 | Bad debts | 3,620 |
| Loan A/c cr.at 6% | 20,000 | Sundry creditors | 69,630 |
| Wages (Manufacturing) | 40,970 | Fixtures and Fittings | 8,970 |
| Returns Inward | 2,780 | ||
| Purchases | 2,56,590 | ||
| Sales | 3,56,430 | ||
| Commission received | 5,640 | ||
| Rent and Taxes | 5,620 | ||
| Stock on 1.4.2019 | 69,680 | ||
| Salaries | 11,000 | ||
| Travelling expenses | 1,800 | ||
| Insurance (including ₹ 300p.a. paid up to30th sept.,2020 | 400 |
Stock in hand on 31st March, 2020 was₹ 1,28,960. Write off half of Madan’s dishonored bill. Depreciation Plant and Machinery by 5% and Fixtures and Fittings by 10%.
The solution of Question 37 Chapter No 16 – Class 11 Unimax
| Trading and Profit & Loss A/c For the year ended 31st March, 2020 | |||||
| Particulars | Amount | Particulars | Amount | ||
| To Opening stock | 69,680 | By sales | 3,56,430 | ||
| To purchases | 2,56,590 | Less: Returns | 2,780 | 3,53,650 | |
| To Wages | 1,15,370 | By Closing stock | 1,28,960 | ||
| To Gross Profit | 1,15,370 | ||||
| (transferred to P & L A/c) | |||||
| 4,82,610 | 4,82,610 | ||||
| To Repairs & Renewals | 3,370 | By Gross Profit b/d | 1,15,370 | ||
| To Interest & Discount | 6,870 | By Commission received | 5,640 | ||
| To Rent & Taxes | 5,620 | ||||
| To Salaries | 11,000 | ||||
| To Travelling exp. | 1,880 | ||||
| To Insurance | 400 | ||||
| Less: Prepaid insurance | 150 | 250 | |||
| To Dep. On plant& Machinery | 1,440 | ||||
| To Dep. Fitting & Fixtures | 897 | ||||
| To Bad debts | 3,620 | ||||
| Add: Further bad debts | 500 | 4,120 | |||
| To Net Profit (transferred to Capital A/c) | 86,563 | ||||
| 1,21,010 | 1,21,010 | ||||
Balance Sheet
As on 31st March,2020
| Liabilities | Amount | Assets | Amount | ||
| Capital | 99,400 | Bills receivable | 9,500 | ||
| Add: Net Profit | 89,563 | Plant & Machinery | 28,800 | ||
| Less: Drawings | 10,550 | 1,75,412 | Less: Depreciation | 1,440 | 27,360 |
| Loan | 20,000 | Sundry debtors | 62,000 | ||
| Sundry creditors | 69,630 | Less: Madan’s Bill | 500 | 61,500 | |
| Outstanding interest | Cash | 10,530 | |||
| Bank | 18,970 | ||||
| Fixtures & Fitting | 8,970 | ||||
| Less: Depreciation | 897 | 8,073 | |||
| Closing stock | 1,28,960 | ||||
| Prepaid insurance | 150 | ||||
| 2,65,043 | 2,65,043 | ||||
Note. It has been assumed that the items interest and discounts (Dr.) amounting to ₹ 5,870, include interest on loan of ₹ 20,000 @ 6% p.a. So, there is no outstanding amount of interest on loan.
Advertisement