Question No 07 Chapter No 20 – D K Goal 11 Class

Question No 07 Chapter No 20 – D K Goal

07. From the following balances, prepare Final Accounts of Mr. Bal Gopal :-

Particulars		Particulars
Life Insurance Premium self	500	Capital	40,000
Stock 1 −4 −2017	7,500	Plant and Machinery	12,500
Returns Inward	1,000	Purchases	36,000
Furniture	4,600	Sundry Debtors	10,500
Freehold Property	10,000	Coal, Gas and Water	1,000
Carriage Inwards	400	Carriage outwards	100
Advertising	200	Sales	60,000
Sundry Creditors	4,850	Discount Dr.	400
Returns outwards	500	Rent for Premises Sublet	500
Commission Cr.	600	Trade Expenses	8,650
Lighting	250	Stationery	2,000
Loan from bank	5,000	Interest Charged by Bank	450
Wages & Salaries	7,500	Cash	2,900
		Input IGST	5,000

Adjustments :-
i Stock on 31st March, 2018 was 10,000 and stationery unused at the end was 400.
ii Rent of Premises Sublet received in advance 100.
iii Provision for Doubtful Debts is to be created @ 10% on Debtors.
iv Provision for discount on Debtors is to be created @ 2%.
v Stock of the Value of 4,000 was destroyed by fire on 25th March, 2018. Stock was purchased paying IGST @ 12%. A Claim of 3,000 has been admitted by Insurance Co. vi Bank Loan has been taken at 12% p.a. interest

The solution of Question No 07 Chapter No 20 – D K Goal: –

Trading Account
Particular		Amount	Particular		Amount
To Opening Stock A/c		7,500	By Sales	60,000
To Purchases A/c	36,000		Less: return	1,000	59,000
Less: Return	500
Less: Goods Destroyed by Fire	4,000	31,500
To Carriage Inward		3,000	By Closing Stock		10,000
To Wages & Salaries		7,500
To Coal, Gas and Water		1,000
To Gross Profit A/c		21,100
		69,000			69,000

Profit & Loss Account
Particular		Amount	Particular		Amount
Discount Allowed		400	Gross Profit		21,100
To Stationery	2,000		By Rent for premises	500
Less: Closing Stock	400	1,600	Less: Rent received in advance	100	400
To Interest	450		By Commission received		600
Add: Outstanding Interest (WN1)	150	600
Provision for Doubtful Debts (WN2		1,050
Provision for Discount on Debtors		189
Loss by Fire* (WN4)	4,480
Less: Ins. Claim admitted	3,000	1,480
To Advertisement		200
To Trade Expenses		8,650
To Carriage Outwards		100
To Lighting		250
To Net Profit A/c		7,581
		22,100			22,100

Balance Sheet
Liabilities		Amount	Assets		Amount
Capital	40,000		Furniture		4,600
Add: Net Profit	7,581		Freehold Property		10,000
Less: Drawings	500	47,081	Plant and Machinery		12,500
Creditors		4,850	Closing Stock		10,000
Bank Loan		5,000	Insurance Company		3,000
Outstanding Interest on Bank		150	Stock of Stationery		400
Rent received in advance		100	Debtors	10,500
			Less: Further Bad Debts	1,050
			Less: Provision for Discount	189	9,261
			Cash in Hand		2,900
			Input IGST (5,000−480)		4,520
		57,181			57,181

Working Note: –

Calculation of Outstanding Interest on Bank Loan

Interest on Bank Loan	=	12	X	5,000
		100
	=	Rs 600
Interest charged by Bank = 450 ∴ Outstanding Interest = Rs150 (600 −450)

Calculation of Provision for Doubtful Debts

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

Provision for Doubtful Debts	=	10	X	10,500
		100
	=	Rs 1,050

Calculation of Provision for Discount on Debtors

Provision for Discounton Debtors = (Debtors −Further Bad Debts −Provision for Doubtful Debts)× Rate 100

Salary for 1 month	=	2	X	(10,500 – 1,050)
		100
	=	Rs 189

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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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