Question 11:
From the following Trial Balance of Shubho, prepare final accounts for the year ended 31st March, 2024 and Balance Sheet as at that date:
|
Particulars |
Dr. Balances |
Cr. Balances |
|
|
Land
and Building |
50,000 |
|
|
|
Purchases
(Adjusted) |
2,07,500 |
|
|
|
Stock
(31st March, 2024) |
45,000 |
|
|
|
Wages |
45,300 |
|
|
|
Salaries |
39,000 |
|
|
|
Office
Expenses |
15,400 |
|
|
|
Carriage
Inwards |
1,200 |
|
|
|
Carriage
Outwards |
2,000 |
|
|
|
Discount
allowed |
750 |
|
|
|
Discount
received |
|
1,200 |
|
|
Bad
Debts |
1,200 |
|
|
|
Sales |
|
3,83,500 |
|
|
Capital
Account |
|
1,15,000 |
|
|
Chatterji's Loan A/c (taken
on 1st Oct., 2023 @ 18% p.a. |
|
25,000 |
|
|
Insurance |
1,500 |
|
|
|
Commission |
|
1,500 |
|
|
Plant
and Machinery |
50,000 |
|
|
|
Furniture
and Fixtures |
20,000 |
|
|
|
Drawings |
20,000 |
|
|
|
Sundry
Debtors |
40,000 |
|
|
|
Sundry
Creditors |
|
37,350 |
|
|
Cash
at Bank |
16,000 |
|
|
|
Office
Equipments |
12,000 |
|
|
|
Expenses
Payable |
|
3,300 |
|
|
Total |
5,66,850 |
5,66,850 |
|
|
|
|
|
The following adjustments be taken care of:
(i) Depreciate Land and Building @ 6%, Plant and
Machinery @ 10%, Office equipments @ 20% and Furniture and Fixtures @ 15%.
(ii) Calculate Provision for Doubtful Debts at 2% on Sundry Debtors.
(iii) Insurance premium includes ` 250 Insurance Premium paid in advance.
(iv) Provide salary to Shubho ` 15,000 p.a.
(v) Outstanding Salaries ` 11,500.
(vi) 10% of the final profit is to be transferred to General Reserve.
Answer:
|
Trading Account for the year ended March
31, 2024 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Particulars |
(`) |
Particulars |
(`) |
||
|
Purchases
(Adjusted) |
2,07,500 |
Sales |
3,83,500 |
||
|
Carriage
Inwards |
1,200 |
|
|
||
|
Wages |
45,300 |
|
|
||
|
Gross
Profit |
1,29,500 |
|
|
||
|
|
3,83,500 |
|
3,83,500 |
||
|
|
|
|
|
||
|
Profit & Loss Account for the year ended March
31, 2024 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Particulars |
Amount (`) |
Particulars |
Amount (`) |
||
|
Carriage
Outwards |
2,000 |
Gross
Profit |
1,29,500 |
||
|
Salaries |
39,000 |
|
Commission |
1,500 |
|
|
Add: Outstanding |
11,500 |
|
Discount |
1,200 |
|
|
Add: Payable to Proprietor |
15,000 |
65,500 |
|
|
|
|
Insurance
Premium |
1,500 |
|
|
|
|
|
Less: Prepaid |
250 |
1,250 |
|
|
|
|
Discount |
750 |
|
|
||
|
Office
Expenses |
15,400 |
|
|
||
|
Outstanding
Interest on Loan |
2,250 |
|
|
||
|
Bad
Debts |
1,200 |
|
|
|
|
|
Add: Provision for Doubtful Debts |
800 |
2,000 |
|
|
|
|
Depreciation
on: |
|
|
|
||
|
Furniture
& Fixtures |
3,000 |
|
|
|
|
|
Land
& Building |
3,000 |
|
|
|
|
|
Office
Equipment |
2,400 |
|
|
|
|
|
Plant
& Machinery |
5,000 |
13,400 |
|
|
|
|
General
Reserve |
2,965 |
|
|
||
|
Net
Profit |
26,685 |
|
|
||
|
|
1,32,200 |
|
1,32,200 |
||
|
|
|
|
|
||
|
Balance Sheet as on March 31, 2024 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Liabilities |
Amount (`) |
Assets |
Amount (`) |
||
|
Furniture
& Fixtures |
20,000 |
|
|||
|
Creditors |
37,350 |
Less: Depreciation |
3,000 |
17,000 |
|
|
Expenses
Payable |
3,300 |
Land
& Building |
50,000 |
|
|
|
Capital |
1,15,000 |
|
Less: Depreciation |
3,000 |
47,000 |
|
Add: Salary Payable |
15,000 |
|
Debtors |
40,000 |
|
|
Add: Net Profit |
26,685 |
Less: Provision |
800 |
39,200 |
|
|
1,56,685 |
|||||
|
Less:
Drawings |
(20,000) |
1,36,685 |
|||
|
Chatterji’s Loan |
25,000 |
|
Plant
& Machinery |
50,000 |
|
|
Add: Outstanding Interest |
2,250 |
27,250 |
Less: Depreciation |
5,000 |
45,000 |
|
General
Reserve |
2,965 |
Office
Equipment |
12,000 |
|
|
|
Outstanding
Salaries |
11,500 |
Less: Depreciation |
2,400 |
9,600 |
|
|
|
|
||||
|
|
|
Closing
Stock |
45,000 |
||
|
|
|
Cash
at Bank |
16,000 |
||
|
|
|
Prepaid
Insurance |
250 |
||
|
|
2,19,050 |
|
2,19,050 |
||
|
|
|
|
|
||
Question 12: Prepare Trading
and Profit & Loss Account for the year ending on 31at March, 2024 and
Balance Sheet ax on thnt date from the following
balances of Trial Balance
Particulars
|
(`)
|
Particulars
|
(`)
|
Debit
Balances
|
|
Advance for Machinery
|
7000
|
Drawings
|
10.000
|
Discount
|
1.000
|
Machinery
|
50,000
|
Wages and Salaries
|
5,000
|
Stock
|
25,000
|
Cash in Hand
|
6.000
|
Purchases
|
90,000
|
Cash at Bank
|
32,000
|
Returns Inward
|
2,000
|
Credit
Balances
|
|
Furnture
|
10,000
|
Capital
|
1,00,000
|
Carriage
|
2,000
|
Returns Outward
|
1,000
|
Rent Rates and Taxes
|
5,000
|
Provision for Doubtful Debts
|
2.000
|
Printing and Stationery
|
1,000
|
Creditors
|
37,700
|
Office Expernses
|
1,200
|
Sales
|
1,28,000
|
Bad Debts
|
1,500
|
General Reserve
|
20,000
|
Sundry Debtors
|
40,000
|
|
|
Adjustments:
(i) Value of stock on 31st March, 2024, 40,000.
(ii) Provision
for Doubtful Debts is to be maintained at 5% on Sundry Debtors.
(iii) Charge
depreciation on both Furniture and Machinery @ 10% p.a,
(iv) Machinery costing 20,000 was purchased on
1st January, 2024.
(u) Allow
interest on capital @ 5% p.a.
(vi) A fire occurred on 20th March,
2024 and stock of the value of 7,000 was destroyed.
It was fully
insured and the insurance company admitted the claim in full.
(vii) 10% of
net profit to be carried to General Reserve.
Answer:
|
Trading Account for the year ended March
31, 2024 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Particulars |
(`) |
Particulars |
(`) |
||
|
To
Opening Stock |
25,000
|
||||
|
Purchases
|
90,000 |
Sales
|
1,28,000
|
||
Returns
Outward
|
(1,000)
|
Returns Inward
|
(2,000)
|
1,26,000 |
|
Loss by fire
|
(7,000)
|
82,000
|
|||
Carriage
|
2,000
|
Closing
Stock |
40,000 |
||
Wages and Salaries
|
5,000
|
|
|||
|
Gross
Profit |
52,000 |
|
|||
|
|
1,66,000 |
|
1,66,000 |
||
|
|
|
|
|
||
|
Profit & Loss Account for the year ended March
31, 2024 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Particulars |
Amount (`) |
Particulars |
Amount (`) |
||
Rent Rates and Taxes
|
5,000
|
Gross
Profit |
52,000 |
||
Printing and Stationery
|
1,000
|
Prov. for Doubtful Debts
|
2.000
|
||
Office Expenses
|
1,200
|
|
|||
Discount
|
1.000
|
|
|||
|
Interest
on Capital |
5,000 |
|
|||
Bad Debts
|
1,500
|
|
|||
|
Add:
|
2,000 |
3,500 |
|
||
|
Depreciation
|
|
||||
|
Furniture |
1,000 |
|
|||
|
Machinery |
3,500 |
4,500 |
|
||
|
General
Reserve |
3,280 |
|
|||
|
Net
Profit |
29,520 |
|
|||
|
54,000 |
54,000 |
||||
|
|
|
|
|
||
|
Balance Sheet as on March 31, 2024 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Liabilities |
Amount (`) |
Assets |
Amount (`) |
||
Furniture
|
10,000
|
||||
Creditors
|
37,700
|
Less: Depreciation |
1,000 |
9,000 |
|
Capital
|
1,00,000
|
||||
|
Add: Interest on Capital |
5,000 |
Debtors |
40,000 |
||
|
Add: Net Profit |
29,520 |
Less: Provision |
2,000 |
38,000 |
|
|
1,34,520 |
Cash in Hand
|
6.000
|
|||
|
Less:
Drawings |
(10.000)
|
1,24,520 |
Cash at Bank
|
32,000
|
|
General Reserve
|
20,000
|
Machinery |
50,000 |
||
|
Add: Additional |
3,280 |
23,280 |
Less: Depreciation |
3,500 |
46,500 |
|
Insurance
company |
7,000 |
||||
|
|
Closing
Stock |
40,000 |
|||
|
|
Advance for Machinery
|
7,000
|
|||
|
|
1,85,500 |
1,85,500 |
|||
|
|
|
|
|
||
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Ts Grewal Solution 2024-2025
Class 11th