Question No 02 Chapter No 20 – D.K Goal 11 Class

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.