Advertisement
Question 40 Chapter No 16 – Class 11 Unimax
From the following balance extracted from then books of Seth Damodaran Swarup, prepare a Trading and Profit and Loss Account for the year ended 31st March, 2020, and a Balance Sheet as on that date:
| Balance | ₹ | Balance | ₹ |
| Capital A/c | 2,90,000 | Discount (Cr.) | 780 |
| Drawings A/c | 14,500 | Reserve for bad debts | 2,500 |
| Office salaries | 19,860 | Insurance and Taxes | 4,930 |
| Plant and Machinery | 1,28,400 | Furniture | 2,000 |
| Purchases | 2,92,620 | Repairs | 6,980 |
| Purchases returns | 4,290 | Manufacturing expenses | 4,710 |
| Sales | 5,72,140 | Bad debts | 2,190 |
| Sales returns | 3,210 | Sundry debtors | 62,840 |
| Loan A/c (Cr.) | 85,000 | Sundry creditors | 37,210 |
| Wages | 1,03,140 | Cash in hand | 13,270 |
| Building | 1,47,480 | Cash at bank | 32,230 |
| Interest (Dr.) | 4,250 | Bills receivable | 17,860 |
| Stock 1.4.2019 | 1,01,220 | Coal and Power | 17,760 |
| General charges | 10,670 | Charity | 2,500 |
| Advertising | 4,300 |
The following adjustments have to be made before closing the accounts:
(a) Stock in hand on 31st March, 2020 was ₹ 1,06,700.
(b) Depreciation on Plant and machinery and furniture at 10% and on the buildings at 5% to be written off.
(c) Reserve for bad debts to be increased to ₹ 4,000.
(d) Wages and salaries remained unpaid to the extent of ₹ 3,000 and 4,000 respectively.
(e) Interest on loan at 6% has been paid only for 8 months.
The solution of Question 40 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 | 1,01,220 | By sales | 5,72,140 | ||
| To purchases | 2,92,620 | Less: Returns | 3,210 | 5,68,930 | |
| Less: Return | 4,290 | 2,88,330 | By Closing stock | 1,06,700 | |
| To Wages | 1,03,140 | ||||
| Add: O/S wages | 3,000 | 1,06,140 | |||
| To Manuf. Expenses | 4,710 | ||||
| To Coal & Power | 12,760 | ||||
| To Gross Profit | 1,62,470 | ||||
| (transferred to P & L A/c) | |||||
| 6,75,630 | 6,75,630 | ||||
| To Salaries | 19,860 | By Gross Profit b/d | 1,62,470 | ||
| Add: Outstanding salaries | 4,000 | 23,860 | By Discount | 780 | |
| Interest | 4,250 | ||||
| Add: O/S interest | 1,700 | 5,950 | |||
| To General charges | 10,670 | ||||
| To Advertisement | 4,300 | ||||
| To insurance & Taxes | 4,930 | ||||
| To Repairs | 6,980 | ||||
| To Charity | 2,500 | ||||
| To Bad debts | 2,190 | ||||
| Add: New Reserve for bad debts | 4,000 | ||||
| To Bad debts | 2,500 | 3,690 | |||
| To Dep. Machinery & Plant | 12,840 | ||||
| To Dep. On Furniture | 200 | ||||
| To Dep. On Building | 7,374 | ||||
| To Net Profit | 79,956 | ||||
| (Transferred to capital) | |||||
| 1,63,250 | 1,63,250 | ||||
Balance Sheet
As on 31st March,2020
| Liabilities | Amount | Assets | Amount | ||
| Capital | 2,90,000 | Plant & Machinery | 1,2,400 | ||
| Add: Net Profit | 79,956 | Less: Depreciation | 12,840 | ||
| 3,55,456 | 3,55,456 | Building | 1,47,480 | ||
| Less: Drawings | 14,500 | Less: Depreciation | 7,374 | ||
| Loan | 85,000 | Furniture | 2,000 | ||
| Sundry creditors | 37,210 | Less: Dep | 200 | ||
| Outstanding Wages | 3,000 | Sundry debtors | 62,840 | ||
| Outstanding Salaries | 4,000 | Less: Reserve for bad debts | 4,000 | 58,840 | |
| Outstanding interest | 17,00 | Cash in hand | 13,270 | ||
| Cash at bank | 32,230 | ||||
| Bill receivable | 17,860 | ||||
| Closing stock | 1,06,700 | ||||
| 4,86,366 | 4,86,366 | ||||
Advertisement