Question No 04 A Chapter No 20 – D.K Goal 11 Class

Question No 04 A Chapter No 20

04 A. From the following Trial Balance extracted from the books of A, prepare Trading and Profit & Loss Account for the year ending 31st March, 2019 and a Balance Sheet as at that date:-

	Dr.	Cr.
Furniture	640
Loose Tools	6,250
Buildings	7,500
Capital Account		12,500
Bad-debts	125
Provision for Bad-debts		200
Sundry Debtors and Creditors	3,800	2,500
Stock on 1st April, 2018	3,460
Purchases and Sales	5,475	15,450
Bank Overdraft		2,850
Sales Return and Purchases Return	200	125
Stationery	450
Interest Account	118
Commission		375
Cash in hand	650
Taxes and Insurance	1,250
General Expenses	782
Salaries	3,300
	34,000	34,000

The following adjustments are to be made:
i Stock in hand on 31st March, 2019 was 3,250.
ii Depreciate Building at 5% and Furniture at 10%. Loose Tools are revalued at 5,000 at the end of the year.
iii Salaries 300 and taxes 120 are outstanding.
iv Insurance amounting to 100 is prepaid.
v Write off a further 100 as Bad-Debts and provision for Doubtful Debts is to be made equal to 5% on Sundry Debtors. vi Half of the stationery was used by the proprietor for his personal purposes

The solution of Question No 04 A Chapter No 20: –

Trading Account
Particular		Amount	Particular		Amount
To Opening Stock A/c		3,460	By Sales	15,450
To Purchases A/c	5,475		Less: return	200	15,250
Less: Return	125	5,350
			By Closing Stock		3,250
To Gross Profit		9,690
		18,500			18,500

Profit & Loss Account
Particular		Amount	Particular		Amount
Depreciation on Furniture (WN)			By Gross Profit		9,690
Building	375		By Commission Received		375
Furniture	64
Loose Tools	1,250	1,689
To Salaries	3,300
Add: Outstanding	300	3,600
Old Bad Debts	125
Add: New Bad Debts	100
Add: New Provision (WN2)	185
Less: Old Provision	200	210
To Taxes & Insurance	1,250
Add: Outstanding Taxes	120	1,270
To Stationery	450
Less: Drawings 1/2	225	225
To Interest		118
To General Expenses		782
To Net Profit A/c		2,171
		10,065			10,065

Balance Sheet
Liabilities		Amount	Assets		Amount
Capital	12,500		Building	7,500
Add: Net Profit	2,171		Less: Depreciation	375	7,125
Less: Drawings 1/2 ofStationery	225	14,446	Furniture	640
Creditors		2,500	Less: Depreciation	64	576
Outstanding Salaries		300	Loose tools	6,250
Outstanding Taxes		120	Less: Depreciation	1,250	5,000
Bank Overdraft		2,850	Debtors	3,800
			Less: Further Bad Debts	100
			Less: Provision for Bad Debts	185	3,515
			Cash in Hand		650
			Closing Stock		3,250
			Prepaid Insurance		100
		20,216			20,216

Working Note: –

Calculation of Depreciation

Depreciation on Buildings	=	5	X	7,500
		100
	=	Rs 375

Depreciation on Furniture	=	10	X	640
		100
	=	Rs 64

Depreciation on Patents = 6, 250 −5, 000 = 1, 250

Calculation of Provision for Doubtful Debts

Provision for Doubtful Debts = Sundry Debtors −Further Bad Debts × Rate 100

Provision for Doubtful Debts	=	5	X	3,800 – 100
		100
	=	Rs 185

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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)

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