Question No 02 Chapter No 20
02. From the following Trial Balance prepare Trading and Profit & Loss Account for the year ended 31st March, 2019 and Balance Sheet as at that date:-
| Dr. | Cr. | |
| Stock 1st April, 2018 | 22,300 | |
| Purchases and Purchases Return | 2,30,000 | 5,200 |
| Freehold Premises | 1,00,000 | |
| Incidental Trade Exp. | 11,200 | |
| Insurance | 1,850 | |
| Audit Fees | 800 | |
| Commission Received | 2,700 | |
| Interest | 1,400 | |
| Debtors and Creditors | 32,400 | 24,830 |
| Wages | 30,200 | |
| Salaries | 15,200 | |
| Capital | 1,50,000 | |
| Drawings | 12,000 | |
| Income-Tax | 3,600 | |
| Investments | 8,000 | |
| Discount allowed & received | 7,500 | 4,200 |
| Sales Return & Sales | 6,400 | 3,17,400 |
| B/R | 5,200 | |
| Office Furniture | 9,000 | |
| Rent | 2,600 | |
| Cash in hand | 5,080 | |
| Bank Balance | 7,600 | |
| 5,08,330 | 5,08,330 |
Adjustments:- 1. Stock at 31st March 2019 is 70,000.
2. Write off 5% Depreciation on Freehold Premises and 20% on office furniture.
3. Commission earned but not received 500.
4. Interest earned but not received 600.
5. 200 for rent have been received in advance.
6. Charge interest on Capital @ 6% and 500 on Drawings.
The solution of Question No 02 Chapter No 20: –
| Trading Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Opening Stock A/c | 22,300 | By Sales | 3,17,400 | ||
| To Purchases A/c | 2,30,000 | Less: return | 6,400 | 3,11,000 | |
| Less: Return | 5,200 | 2,24,800 | |||
| To Wages | 30,200 | By Closing Stock | 70,000 | ||
| To Gross Profit | 1,03,700 | ||||
| 3,81,000 | 3,81,000 | ||||
| Profit & Loss Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| Depreciation: (WN) | By Gross Profit | 1,03,700 | |||
| Freehold Premises | 5,000 | By Interest on Drawings | 500 | ||
| Furniture | 1,800 | 6,800 | By Commission | 5,000 | |
| To Interest on Capital (WN2) | 9,000 | Add: Accrued | 1,800 | 3,200 | |
| To Incidental Trade Expenses | 11,200 | By Rent | 2,600 | ||
| To Insurance | 1,850 | Less: Rent received in advance | 200 | 2,400 | |
| To Audit Fees | 800 | By Interest | 1,400 | ||
| To Salaries | 15,200 | Add: Accrued | 600 | 2,000 | |
| To Discount Allowed | 7,500 | By Discount Received | 4,200 | ||
| To Net Profit A/c | 63,650 | ||||
| 1,16,000 | 1,16,000 | ||||
| Balance Sheet |
|||||
| Liabilities |
Amount | Assets |
Amount | ||
| Capital | 1,50,000 | Freehold Premises | 1,00,000 | ||
| Add: Net Profit | 9,000 | Less: Depreciation | 5,000 | 95,000 | |
| Add: Net Profit | 63,650 | Office Furniture | 9,000 | ||
| Less: Drawings | 12,000 | Less: Depreciation | 1,800 | 7,200 | |
| Less: Interest on Drawings | 500 | Investments | 8,000 | ||
| Less: Income Tax | 3,600 | 2,06,550 | Closing Stock | 70,000 | |
| Creditors | 24,830 | Accrued Interest | 600 | ||
| Rent received in advance | 200 | Accrued Commission | 500 | ||
| Debtors | 32,400 | ||||
| Bills Receivable | 5,200 | ||||
| Cash at Bank | 7,600 | ||||
| Cash in Hand | 5,080 | ||||
| 2,31,580 | 2,31,580 | ||||
Working Note: –
Calculation of Depreciation
| Depreciation on Freehold Premises | = | 5 | X | 1,00,000 |
| 100 | ||||
| = | Rs 5,000 |
| Depreciation on Office Furniture | = | 20 | X | 90,000 |
| 100 | ||||
| = | Rs 1,800 |
Calculation Interest on Capita
| Interest on Capita | = | 6 | X | 1,50,000 |
| 100 | ||||
| = | Rs 9,000 |
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Also, Check out the solved question of all Chapters: –
D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution
- Chapter 1 Evolution of Accounting & Basic Accounting Terms
- Chapter 2 Accounting Equations
- Chapter 3 Meaning and Objectives of Accounting
- Chapter 4 Double Entry System
- Chapter 5 Books of Original Entry – Journal
- Chapter 6 Accounting for Goods and Service Tax (GST) (Coming soon)
- Chapter 7 Books of Original Entry – Cash Book (Coming soon)
- Chapter 8 Books of Original Entry – Special Purpose Subsidiary Books (Coming soon)
- Chapter 9 Ledger (Coming soon)
- Chapter 10 Trial Balance and Errors (Coming soon)
- Chapter 11 Bank Reconciliation Statement (Coming soon)
- Chapter 12 Depreciation (Coming soon)
- Chapter 13 Bills of Exchange (Coming soon)
- Chapter 14 Generally Accepted Accounting Principles(GAAP)
- Chapter 15 Bases of Accounting
- Chapter 16 Accounting Standards and International Financial Reporting Standard(IFRS) (Coming soon)
- Chapter 17 Capital and Revenue
- Chapter 18 Provisions and Reserves
- Chapter 19 Final Accounts (Coming soon)
- Chapter 20 Final Accounts – With Adjustments (Coming soon)
- Chapter 21 Errors and their Rectification (Coming soon)
- Chapter 22 Accounts from Incomplete Records – Single Entry System (Coming soon)
- Chapter 23 Accounts of Not-for-Profit Organisations (Coming soon)
- Chapter 24 Computerised Accounting System (Coming soon)
- Chapter 25 Introduction to Accounting Information System (Coming soon)
Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.
