Page 209 - ISCDEBK-XI

20.42 Double Entry Book Keeping—ISC XI

Unsolved Questions

1. Following Trial Balance as on 31st March, 2022 is extracted from the books of Mohan:
Heads of Accounts Dr. (`) Cr. (`)

Mohan’s Capital A/c ............................................................................................................................................... ... 3,00,000
Mohan’s Drawings ................................................................................................................................................... 12,500 ...
Furniture ..................................................................................................................................................................... 50,000 ...
Plant and Machinery .............................................................................................................................................. 70,000 ...
Stock on 1st April, 2021 ......................................................................................................................................... 45,000 ...
Bills Receivable ......................................................................................................................................................... 10,000 ...
Bills Payable ............................................................................................................................................................... ... 15,000
Sundry Debtors ........................................................................................................................................................ 1,40,000 ...
Sundry Creditors ...................................................................................................................................................... ... 1,60,000
Purchases ................................................................................................................................................................... 2,00,000 ...
Sales ............................................................................................................................................................................. ... 3,75,000
Carriage Inwards ...................................................................................................................................................... 2,500 ...
Carriage Outwards .................................................................................................................................................. 1,250 ...
Freight ......................................................................................................................................................................... 3,000 ...
Manufacturing Wages ........................................................................................................................................... 55,000 ...
Fuel and Power ......................................................................................................................................................... 2,000 ...
Factory Expenses ..................................................................................................................................................... 13,500 ...
Salaries ........................................................................................................................................................................ 45,000 ...
Rent .............................................................................................................................................................................. 15,000 ...
Prepaid Rent .............................................................................................................................................................. 6,000 ...
Outstanding Salaries .............................................................................................................................................. ... 5,000
Discount ...................................................................................................................................................................... 1,000 2,000
Printing and Stationery ......................................................................................................................................... 1,500 ...
General Expenses .................................................................................................................................................... 4,500 ...
Cash in Hand ............................................................................................................................................................. 10,750 ...
Cash at Bank .............................................................................................................................................................. 1,68,500 ...
Provision for Doubtful Debts .............................................................................................................................. ... 2,000
Provision for Discount on Debtors .................................................................................................................... ... 1,000
Bad Debts ................................................................................................................................................................... 3,000 ...
Total 8,60,000 8,60,000

Additional Information:
Errors:
(a) Purchases include sales return of ` 5,000 and sales include purchases return of ` 4,000.
(b) Goods withdrawn by the proprietor for own consumption ` 2,000 were included in purchases.
(c) Wages paid for installation of plant and machinery amounting to ` 2,000 were included in Wages Account.
(d) Samples distributed for publicity costing ` 2,500, but not recorded in the books.
(e) An advance of ` 5,000 to a supplier was wrongly included in the list of Sundry Debtors.
(f) A dishonoured bill receivable for ` 2,000 returned by the Bank with whom it had been discounted, had
been credited to Bank Account and debited to Bills Receivable Account.
Adjustments:
(i) Charge depreciation on plant and machinery @ 15% and on furniture @ 10%.
(ii) Create provision for doubtful debts @ 5% and provision for discount on debtors at 2%.
(iii) Closing stock is valued at ` 80,000.
Prepare Trading and Profit & Loss Account for the year ended 31st March, 2022.