Question No 15 Chapter No 20 – D.K Goal 11 Class

Question No 15 Chapter No 20 D.K Goal 11 Class

15. From the following Trial Balance of Mr. Alok, prepare Trailing and Profit & Loss Account for the Year ending 31st March, 2019, and a Balance Sheet as at that date:

Dr. Balances		Cr. Balances
Drawings	5,275	Capital	59,700
Bills Receivable	4,750	Loan, at 8%   p.a. (on 1-4-2018)	10,000
Machinery	14,400	Commission Received	2,820
Debtors (including X for dishonoured Bill of Z 1,000)	30,000	Creditors	29,815
Wages	20,485	Sales	1,78,215
Returns Inward	2,390
Purchases	1,28,295
Rent	2,810
Stock	44,840
Salaries	5,500
Travelling Expenses	945
Insurance	200
Cash	9,750
Repairs	1, 685
Interest on Loan	500
Discount Allowed	2,435
Bad Debts	1,810
Furniture	4,480
	2,80,550		2,80,550

The following adjustments are to be made:
(1) Stock in the shop on 31st March, 2019 was 264,480
(ii) Half the amount of X’s Bill is irrecoverable.
(3) Create a provision of 5% on other debtors.
(iv) Wages include 2600 for erection of new machinery.
(v) Depreciate Machinery by 5% and Furniture by 10%.
(v) Commission includes Z300 being Commission received in advance
[Ans. G.P. 47,285; N.P. ₹ 30,472 B/S Total 1,25,312]

The Solution of Question No 15 Chapter No 20 D.K Goal 11 Class:

Trading Account
Particular		Amount	Particular		Amount
To opening stock		1,28,295	By Sale A/c	1,78,215
To Purchases A/c		44,840	Less:- Returns A/c	2,390	1,75,825
To wages A/c		19,885	By closing stock A/c		64,480
To Gross Profit A/c		47,285
		2,40,305			2,40,305

Profit & Loss Account
Particular		Amount	Particular		Amount
To Rent A/c		2,810	By Gross profit b/d		47,285
To salaries A/c		5,500	By Commission received	2,820
To Traveling expenses A/c		945	Less Received in advance	300	2,520
To Insurance A/c		200
To Interest on loan A/c	500
Add: Outstanding	300	800
To Discount allowed A/c		2,435
To Depreciation on
-Machinery A/c	750
-Furniture A/c	448	1,198
To provision for debtors		1,450
To Bad debts A/c		2,310
To Repairs A/c		1,685
To Net Profit A/c		30,472
		49,805			49,805

Balance sheet for the year ending 31st March,2019
Liabilities		Amount	Assets		Amount
Capital	59,700		Machinery A/c		14,250
Add: Net profit	30,472		Furniture A/c		4,032
	90,172		Stock A/c		64,480
Less: Drawings A/c	5,275	84,897	Debtors A/c		26,050
			Bill receivable A/c		4,750
Loan at 8% p.a A/c		10,000	Cash in hand		9,750
outstanding interest on loan A/c		300
Creditors A/c		29,815
Advance commission received		300
		1,25,312			1,25,312

Working Notes: –

WN.1 Calculation of book value of machinery

Machinery value after depreciation book value of machinery	14,400
Add: Erection value after depreciation book vale of machinery	600
Less: Depreciation book value of machinery	15,000
	750	14,250

WN.2 Calculation of Debtors book value

Debtors book value	30,000
Less: Provision for debtor	1,450
Less: Bad debts (30,000 -1,000 discount) *5%	500	28,050

WN.3 Calculation of Wages Debited to Profit/loss account

Wages Debited to Profit/loss account	20,485
Less: Wages for erection of new machinery	600
		19,885

WN.4 Calculation of Book value of furniture

Book value of furniture	4480
Less: Depreciation @10%	448
		4,032

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.