Question No 03 B Chapter No 20
03 B .Prepare Trading and Profit & Loss Account for the year ended 31st March, 2017 and Balance Sheet as at that date from the following Trial Balance
| Dr. | Cr. | |
| Capital | 10,000 | |
| Cash | 1,500 | |
| Bank Overdraft | 2,000 | |
| Purchases and Sales | 12,000 | 15,000 |
| Returns | 1,000 | 2,000 |
| Establishment Expenses | 2,200 | |
| Taxes and Insurance | 500 | |
| Bad-debts and Bad-debt Provision | 500 | 700 |
| Debtors and Creditors | 5,000 | 2,000 |
| Commission | 500 | |
| Deposits | 4,000 | |
| Opening Stock | 3,000 | |
| Drawings | 1,400 | |
| Furniture | 600 | |
| B/R and B/P | 3,000 | 2,500 |
| 34,700 | 34,700 |
Adjustments:-
1. Salaries 100 and taxes 200 are outstanding but insurance 50 is prepaid.
2. Commission 100 is received in advance for next year.
3. Interest 210 is to be received on Deposits and Interest on Bank overdraft 300 is to be paid.
4. Bad-debts provision is to be maintained at 1,000 on Debtors.
5. Depreciate furniture by 10%.
6. Stock on 31st March, 2017 was valued at 4,500.
The solution of Question No 03 B Chapter No 20: –
| Trading Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Opening Stock A/c | 3,000 | By Sales | 15,000 | ||
| To Purchases A/c | 12,000 | Less: return | 1,000 | 14,000 | |
| Less: Return | 2,000 | 10,000 | |||
| By Closing Stock | 4,500 | ||||
| To Gross Profit | 5,500 | ||||
| 18,500 | 18,500 | ||||
| Profit & Loss Account |
|||||
| Particular |
Amount | Particular |
Amount | ||
| Depreciation on Furniture (WN) | 60 | By Gross Profit | 5,500 | ||
| To Establishment Charges | 2,200 | By Accrued Interest on Deposits | 210 | ||
| To Outstanding Salaries | 100 | By Commission received | 500 | ||
| To Taxes & Insurance | 500 | Less: Comm. received in advance | 100 | 400 | |
| Add: Outstanding Taxes | 200 | ||||
| Less: Prepaid Insurance | 50 | 650 | |||
| Old Bad Debts | 500 | ||||
| Add: New Bad Debts | – | ||||
| Add: New Provision (WN2) | 1,000 | ||||
| Less: Old Provision | 700 | 800 | |||
| To Outstanding Interest on Bank Overdraft | 300 | ||||
| To Net Profit A/c | 2,000 | ||||
| 6,110 | 6,110 | ||||
| Balance Sheet |
|||||
| Liabilities |
Amount | Assets |
Amount | ||
| Capital | 10,000 | Land & Buildings | 600 | ||
| Add: Net Profit | 2,000 | Less: Depreciation | 60 | 540 | |
| Less: Drawings | 1,400 | 10,600 | Closing Stock | 4,500 | |
| Creditors | 2,000 | Prepaid Insurance | 50 | ||
| Outstanding Salaries | 100 | Bills Receivables | 3,000 | ||
| Outstanding Taxes | 200 | Cash in Hand | 1,500 | ||
| Bills Payable | 2,500 | Debtors | 5,000 | ||
| Bank Overdraft | 2,000 | Less: Provision for Bad Debts | 1,000 | 4,000 | |
| Commission received in advance | 100 | Deposits | 4,000 | ||
| Outstanding Interest on Bank Overdraft | 300 | Add: Accrued Interest | 210 | 4,210 | |
| 17,800 | 17,800 | ||||
Working Note: –
Calculation of Depreciation
| Depreciation on Furniture | = | 10 | X | 60 |
| 100 | ||||
| = | Rs 60 |
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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.
