Question No 09 A Chapter No 20 – D.K Goal 11 Class

Question No 09 A Chapter No 20

09 A. From the following balances, prepare Trading, Profit and Loss A/c and a Balance Sheet as at 31st March 2018:-

Particulars		Particulars
Stock 1stApril2017	20,000	Goodwill	16,000
Purchases	2,92,000	Furniture and Fittings	58,000
Fuel and Power	34,000	Repair Charges	2,900
Capital	1,60,000	Bank	18,000
Sales	5,90,000	Salaries	1,10,000
Rent	10,000	General Expenses	18,000
Returns Inwards	16,000	Debtors	2,30,000
Cash Discount allowed	15,000	Creditors	1,35,000
Cash Discount received	19,000	Output CGST	5,000
Drawings	58,100	Output SGST	5,000
		Input CGST	8,000
		Input SGST	8,000

Take the following adjustments into account:
a General expenses include 5,000 chargeable to Furniture purchased on 1st October 2017.
b Create a provision of 5% on debtors for Bad and Doubtful Debts after treating 30,000 as a Bad-debt.
c Depreciation on Furniture and Fittings for the year is to be at the rate of 10% per annum.
d Closing Stock was 40,000, but there was a loss by fire on 20th March to the extent of 8,000. Insurance Company admitted the claim in full.
e I Goods costing 2,500 were used by the proprietor.
II Goods costing 1,500 were distributed as free samples.
Goods were purchased paying CGST and SGST @ 6% each.

The solution of Question No 09 A Chapter No 20: –

Trading Account
Particular		Amount	Particular		Amount
To Opening Stock A/c		20,000	By Sales	5,90,000
To Purchases A/c	2,92,000		Less: return	16,000	5,74,000
Less: Goods Destroyed by Fire	8,000
Less: Drawings	2,500
Less: Advertisement	1,500	2,80,000	By Closing Stock		40,000
To Fuel and Power		34,000
To Gross Profit A/c		2,80,000
		6,14,000			6,14,000

Profit & Loss Account
Particular		Amount	Particular		Amount
To Depreciation on Furniture (WN1)		6,050	Gross Profit		2,80,000
To Rent		10,000	By Discount Received		19,000
To General Expenses	18,000
Less: Furniture	5,000	13,000
To Further Bad Debts	30,000
Add: New Provision (WN3)	10,000	40,000
To Discount Allowed		15,000
To Repair Charges		2,900
To Advertisement Free Samples		1,680
To Salaries		1,10,000
To Net Profit A/c		1,00,370
		2,99,000			2,99,000

Balance Sheet
Liabilities		Amount	Assets		Amount
Capital	1,60,000		Goodwill		16,000
Add: Net Profit	1,00,370		Closing Stock		40,000
Less: Drawings	60,900	1,99,470	Insurance company8,000 +12		8,960
Creditors		1,35,000	Input CGST8, 000 −240 −480	7,280
			Less: Output CGST	5,000	2,280
			Input SGST8, 000 −240 −480	7,280
			Less: Output SGST	5,000	2,280
			Cash at Bank		18,000
			Furniture & Fittings	58,000
			Add: Additions	5,000
			Less: Depreciation	6,050	6,050
			Debtors	2,30,000
			Less: Bad Debts	30,000
			Less: Provision for Bad Debts	10,000	1,90,000
		3,34,470			3,34,470

Working Note: –

Calculation of Depreciation

Furniture of Rs 5,000 was purchased on Oct 01, 2013	=	10	X	58,000
		100
	=	Rs 5,800

Furniture of Rs 5,000 was purchased on Oct 01, 2013	=	10	X	6	X	5,000
		100		12
	=	Rs 250
Total Depreciation for furniture is	=	5,800 + 250	=	6,050

Calculation of Outstanding Rent

Amount of Rent Outstanding	=	2	X	10,000
		10
	=	Rs 2,000

Calculation of Provision for Doubtful Debts

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

Provision for Doubtful Debts	=	5	X	(2,30,000 – 30,000)
		100
	=	Rs 10,000

 

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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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