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19.16                                                  Double Entry Book Keeping—CBSE XI

                     Solution:                 TRADING AND PROFIT & LOSS ACCOUNT
                     Dr.                         for the year ended 31st March, 2024                  Cr.
                     Particulars                         `      Particulars                        `
                     To  Adjusted Purchases   6,60,000          By  Sales                         7,20,000
                        Less:  Drawings         5,000  6,55,000
                     To  Gross Profit c/d               65,000
                                                       7,20,000                                   7,20,000
                     To  Rent                   11,000          By  Gross Profit b/d               65,000
                        Add:  Outstanding        1,000   12,000   By  Rent Received        6,500
                     To  Selling and Distribution Expenses      36,075      Less:  Advance Rent   500   6,000
                     To  Interest (Paid)                 3,750   By  Interest (Received)            4,500
                     To  Miscellaneous Expenses   19,200        By  Discount Received      1,000
                        Less:  Assembly of Furniture  1,000         Add:  Further Discount   2,000   3,000
                            Installation of Machinery  1,000  2,000   17,200   By  Net Loss transferred to Capital A/c       28,875
                     To  Bad Debts               3,000
                        Add:  Further Bad Debts    6,000
                            Prov. for Doubtful Debts (New) 20,000
                                                29,000
                        Less:  Prov. for Doubtful Debts (Old)  10,000   19,000
                     To  Discount Allowed        2,000
                        Add:  Further Discount    4,000
                            Provision for Discount (New)   3,600
                                                 9,600
                        Less:  Provision for Discount (Old)   2,400   7,200
                     To  Depreciation on: Machinery (WN 2)   4,575
                                  Furniture      4,575
                                  Building       3,000  12,150
                                                       1,07,375                                   1,07,375

                                                        BALANCE SHEET
                                                      as at 31st March, 2024
                     Liabilities                         `      Assets                             `
                     Current Liabilities                        Current Assets
                     Creditors                1,46,400          Debtors                 2,10,000
                     Less:  Further Discount      2,000   1,44,400   Less:  Further Bad Debts   6,000
                     Outstanding Rent                    1,000                          2,04,000
                     Advance Rent                         500   Less:  Further Discount   4,000
                     Vendor for Furniture               20,000                          2,00,000
                     Outstanding Office Expenses         3,200   Less:  Provision for Doubtful Debts   20,000
                     Loan from Bank                     50,000                          1,80,000
                     Capital                                    Less:  Provision for Discount on Debtors  3,600   1,76,400
                     Opening Balance          3,08,000          Cash in Hand                       60,000
                     Less:  Net Loss   28,875                   Closing Stock                      40,000
                         Drawings     17,775                    Prepaid Expenses                    1,200
                         Income Tax    1,000   47,650   2,60,350   Investments                     50,000
                                                                Input CGST                          1,000
                                                                Input SGST                          1,000
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