Question No 03 A Chapter No 20
03 A .On 31st March, 2018 the following Trial Balance was extracted from the books of Mohan
| Dr. | Cr. | |
| Capital | 30,000 | |
| Drawings | 5,000 | |
| Debtors and Creditor | 20,000 | 10,000 |
| Bank Loan | 9,500 | |
| Interest on Loan | 300 | |
| Cash | 2,000 | |
| Provision for Bad-Debts | 700 | |
| Stock 1-4-2016 | 6,800 | |
| Motor Vehicles | 10,000 | |
| Bank | 3,500 | |
| Land and Buildings | 12,000 | |
| Bad-Debts | 500 | |
| Purchases and Sales | 66,000 | 1,10,000 |
| Returns | 8,000 | 1,500 |
| Carriage Outward | 2,500 | |
| Carriage Inward | 3,000 | |
| Salaries | 9,000 | |
| Rent and Insurance | 3,000 | |
| Advertising | 3,500 | |
| Discount | 500 | |
| General Expenses | 3,400 | |
| B/R and B/P | 6,000 | 2,000 |
| Rent received | 300 | |
| 1,64,500 | 1,64,500 |
Prepare Trading and Profit & Loss Account for the year ended 31st March, 2017 and Balance Sheet as at that date after taking into account the following:-
a Private purchases amounting to 4,000 have been debited to Purchases Account.
b Depreciate Land and Buildings at 2 1 2 % and Motor Vehicles at 20%.
c Salaries outstanding 200.
d Prepaid Insurance 200.
e Provision for Doubtful Debts is to be maintained at 5% on Debtors.
f Stock on 31st March, 2017 was valued at 7,000.
The solution of Question No 03 A Chapter No 20: –
| Trading Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Opening Stock A/c | 6,800 | By Sales | 1,10,000 | ||
| To Purchases A/c | 66,000 | Less: return | 8,000 | 1,02,000 | |
| Less: Return | 1,500 | ||||
| Less: Drawings | 4,000 | 60,500 | By Closing Stock | 7,000 | |
| To Carriage Inward | 3,000 | ||||
| To Gross Profit | 38,700 | ||||
| 1,09,000 | 1,09,000 | ||||
| Profit & Loss Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| Depreciation: (WN) | By Gross Profit | 38,700 | |||
| Land & Building | 300 | By Discount received | 500 | ||
| Motor Vehicle | 2,000 | 2,300 | By Rent Received | 300 | |
| To Salary | 9,000 | ||||
| Add: Outstanding | 200 | 9,200 | |||
| Rent & Insurance | 3,000 | ||||
| Less: Pre-paid | 200 | 2,800 | |||
| To Old Bad Debts | 500 | ||||
| Add: New Bad Debts | – | ||||
| Add: New Provision (WN2) | 1,000 | ||||
| Less: Old Provision | 700 | 800 | |||
| To Interest on Bank Loan | 300 | ||||
| To Interest on Bank Loan | 2,500 | ||||
| To Carriage Outward | 3,500 | ||||
| To Advertisement | 3,400 | ||||
| To Net Profit A/c | 14,700 | ||||
| 39,500 | 39,500 | ||||
| Balance Sheet |
|||||
| Liabilities |
Amount | Assets |
Amount | ||
| Capital | 30,000 | Land & Buildings | 12,000 | ||
| Add: Net Profit | 14,700 | Less: Depreciation | 300 | 11,700 | |
| Less: Drawings 5, 000 +4, 000 | 9,000 | 35,700 | Motor Vehicles | 10,000 | |
| Creditors | 10,000 | Less: Depreciation | 2,000 | 8,000 | |
| Outstanding Salaries | 200 | Closing Stock | 7,000 | ||
| Bank Loan | 9,500 | Prepaid Insurance | 200 | ||
| Bills Payable | 2,000 | Debtors | 20,000 | ||
| Less: Provision for Bad Debts | 1,000 | 19,000 | |||
| Bills Receivables | 6,000 | ||||
| Cash at Bank | 3,500 | ||||
| Cash in Hand | 2,000 | ||||
| 57,400 | 57,400 | ||||
Working Note: –
Calculation of Depreciation
| Depreciation on Land & Building | = | 2.5 | X | 12,000 |
| 100 | ||||
| = | Rs 300 |
| Depreciation on Motor Vehicles | = | 20 | X | 10,000 |
| 100 | ||||
| = | Rs 2,000 |
Calculation of Provision for Doubtful Debts
| Provision for Doubtful Debts | = | 5 | X | 20,000 |
| 100 | ||||
| = | Rs 1,000 |
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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)
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