Page 197 - ISCDEBK-XI

20.30 Double Entry Book Keeping—ISC XI

Solution: TRADING AND PROFIT & LOSS ACCOUNT
Dr. for the year ended 31st March, 2022 Cr.
Liabilities ` Assets `
To Opening Stock 10,000 By Sales 1,90,000
To Purchases 95,000 Less: Goods Sent on Approval 5,000 1,85,000
Add: Customs Duty 16,000 1,11,000 By Closing Stock 40,000
To Wages 28,000 Add: Stock with Customers
Less: For Machine 5,000 23,000 at cost (` 5,000 × 100/125) 4,000 44,000
To Carriage Inwards 6,000
To Gross Profit c/d 79,000
2,29,000 2,29,000
To Salaries 16,000 By Gross Profit b/d 79,000
To Rent 15,000 By Interest on Investments 2,000
Less: Prepaid 2,000 13,000 Add: Accrued Interest 1,000 3,000
To Bad Debts 6,000 By Provision for Doubtful Debts 2,000
To Fire Insurance Premium 4,000 Less: New Provision for
To Advertisement 30,000 Doubtful Debts 950 1,050
To Sundry Expenses 11,000 By Net Loss transferred to Capital A/c 2,450
To Depreciation on Machinery
[10/100 (` 50,000 + ` 5,000)] 5,500
85,500 85,500

BALANCE SHEET
as at 31st March, 2022
Liabilities ` Assets `
Capital 1,57,000 Land and Building 80,000
Less: Drawings 5,000 Plant and Machinery 50,000
1,52,000 Add: Installation Cost 5,000
Less: Net Loss 2,450 1,49,550 55,000
Bank Overdraft 20,000 Less: Depreciation 5,500 49,500
Bills Payable 21,000 Furniture 20,000
Creditors 40,000 15% Investments 20,000
Less: Common Debts 6,000 34,000 Prepaid rates and taxes 2,000
General Reserve 25,000 Bills Receivable 15,000
Less: Dishonoured 5,000 10,000
Accrued Interest 1,000
Debtors 25,000
Less: Sale on approval 5,000
Common Debts 6,000
Add: Bill Receivable Dishonoured 5,000
19,000
Less: Provision for Doubtful
Debts 950 18,050
Closing Stock ` (40,000 + 4,000) 44,000
Cash in Hand 5,000
2,49,550 2,49,550