Question No 14 Chapter No 20 – D.K Goal 11 Class

Question No 14 Chapter No 20 D.K Goal 11 Class

14. On 31st March,2018 the following Trial Balance was extracted from the books of Sh. Ghanshyam Das:

	Debit	credit
Capital Account		2,00,000
Debtors and Creditors	40,000	25,000
Loan on Mortgage		30,000
Interest on Loan	2,250
Discount		1,800
Stock on 1st Aprile,2017	20,000
Motor Vehicle	50,000
Cash at Bank	4,450
Investments	16,000
Wages	18,000
Land and Building	2,80,000
Bad Debts	1,500
Purchases and sale	2,50,000	4,80,000
Purchases and sale Returns	12,000	10,000
Carriage Outward	8,000
Carriage Inward	6,500
Salaries	7,200
Outstanding Salaries		600
Rates, Taxes and Insurance	15,000
Advertising	5,000
General Expenses	6,400
Bills Receivable and Payable	7,500
Prepaid Insurance	3,000
	7,52,800	7,52,800

Prepare Trading and Profit& Loss Account for the year ended 31^st March,2018 and Balance Sheet as at that date, after making adjustments for following matters:

1.Depreciate Land and Building at 2.5 % and Motor Vehicles at 20%.

2.Interst on Loan at 15% p.a. is unpaid for six months.

3.Ghanshyam Das withdrew Rs.2,000n for his private use. This amount was included in general expenses.

4.Interest on Investment is receivable for full year @10%.

5.Provide on Manager’s Commission at 10% on net profit after charging such commission.

6.Stock in hand on 31^st March,2018 was valued at Rs.25,000 (Realisable Value Rs.22,000).

[Ans. G.P.₹.2,05,500 ; N.P.₹1,33,000; B/S  Total ₹ 4,07,550.]       

The Solution of Question No 14 Chapter No 20 D.K Goal 11 Class:

Trading Account
Particular		Amount	Particular		Amount
To opening stock		20,000	By sale A/c	4,80,000
To Purchases A/c	2,40,000		Less:- Returns A/c	12,000	4,68,000
Less:-Returns A/c	10,000	2,40,000
To wages A/c		18,000	By closing stock A/c		22,000
To carriage inward		6,500
To Gross Profit A/c		2,05,500
		4,90,000			4,90,000

Profit & Loss Account
Particular		Amount	Particular		Amount
To Carriage outward A/c		8,000	By Gross Profit		2,05,500
To Interest on LoanA/c	2,250		By discount A/c		1,800
Add: outstanding interest on loan	2,250	4,500	By Interest on investment A/c		1,600
To Deprecation on
Motor Vehicle	10,000
Land and Building	7,000	17,000
To Bad debts A/c		1,500
To Salaries A/c		7,200
To Rates ,Taxes & insurance A/c		15,000
To Advertising A/c		5,000
To General expenses	6,400
Less: Drawings A/c	2,000	4,400
To Manager commission A/c wn1		13,300
To Net Profit A/c		1,33,000
		2,08,900			2,08,900

Balance sheet as on 31st March ,2018 Advertisement
Liabilities		Amount	Assets		Amount
Capital	2,00,000		Motor vehicle	50,000
Add: Net profit	1,33,000		Less-Depreciation A/c	10,000	40,000
	3,33,000
Less: Drawings A/c	2,000	3,31,000	Land &Building A/c	2,80,000
			Less-Depreciation A/c	7,000	2,73,000
Loan on Mortgage A/c		30,000
outstanding interest on loan A/c		2,250	Investments	16,000
Creditors A/c		25,000	Add- Accrued Interest	1,600	17,600
Outstanding salaries A/c		600	Debtors		40,000
Bills payable		5,400	Cash at Bank A/c		4,450
			Bills Receivable		7,500
			Prepaid Insurance		3,000
			Stock		22,000
		4,07,550			4,07,550

Working Note: –

WN.1 Calculation of Manager’s commission

Net profit before manager’s commission		1,46,300
Manager’s commission	1,46,300*10/110	13,300

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.