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Page No 19.64:
Question 1:
Following are the balances extracted from the books of Manish on 31st March, 2019:
|
₹
|
₹
|
||
| Capital |
1,90,000
|
Cash at Bank |
26,000
|
| Drawing |
7,000
|
Salaries |
8,000
|
| Plant and Machinery |
1,20,000
|
Repairs |
1,900
|
| Delivery Vehicle |
26,000
|
Stock on 1st April, 2018 |
16,000
|
| Sundry Debtors |
36,000
|
Rent |
4,500
|
| Sundry Creditors |
26,000
|
Manufacturing Expenses |
1,500
|
| Purchases |
20,000
|
Bills Payable |
23,500
|
| Sales |
42,000
|
Bad Debts |
5,000
|
| Wages |
8,000
|
Carriage |
1,600
|
Prepare Trading and Profit and Loss Account and Balance Sheet as at 31st March, 2019 after following adjustments are made:
(i) Closing Stock was ₹ 16,000.
(ii) Depreciate Plant and Machinery @ 10% and Delivery Vehicle @ 15%.
(iii) Unpaid Rent amounted to ₹ 500.
Answer:
|
Trading Account for the year ended March 31, 2019 |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||
|
Opening stock |
16,000 |
Sales |
42,000 |
||
|
Purchases |
20,000 |
Closing Stock |
16,000 |
||
|
Wages |
8,000 |
|
|
||
|
Manufacturing Expenses |
1,500 |
|
|
||
|
Carriage |
1,600 |
|
|
||
|
Gross Profit (Balance Figure) |
10,900 |
|
|
||
|
|
58,000 |
|
58,000 |
||
|
|
|
|
|
||
|
Profit and Loss Account for the year ended March 31, 2019 |
||||||
|
Dr. |
|
Cr. |
||||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|||
|
Salaries |
8,000 |
Gross Profit |
10,900 |
|||
|
Repairs |
1,900 |
Net Loss (Balancing Figure) |
24,900 |
|||
|
Rent |
4,500 |
|
|
|
||
|
Add: Unpaid Rent |
500 |
5,000 |
|
|
||
|
Bad Debts |
5,000 |
|
|
|||
|
Depreciation on: |
|
|
|
|||
|
Plant and machinery |
12,000 |
|
|
|
||
|
Delivery Vehicle |
3,900 |
15,900 |
|
|
||
|
|
|
|
|
|||
|
|
35,800 |
|
35,800 |
|||
|
|
|
|
|
|||
|
Balance Sheet as on March 31, 2019 |
|||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Capital |
1,90,000 |
|
Fixed Assets |
|
|
|
Less: Drawings |
(7,000) |
|
Plant and Machinery |
1,20,000 |
|
|
Less: Net Loss |
(24,900) |
|
Less:10% Deprecation |
(12,000) |
1,08,000 |
|
|
1,58,100 |
Delivery Vehicle |
26,000 |
|
|
|
|
|
Less:15% Depreciation |
(3,900) |
22,100 |
|
|
Current Liabilities |
|
|
|
||
|
Sundry Creditors |
26,000 |
Current Assets |
|
||
|
Bills Payable |
23,500 |
Closing Stock |
16,000 |
||
|
Unpaid Rent |
500 |
Sundry Debtors |
36,000 |
||
|
|
|
Cash at Bank |
26,000 |
||
|
|
2,08,100 |
|
2,08,100 |
||
|
|
|
|
|
||
Page No 19.65:
Question 2:
Prepare Trading and Profit and Loss Account and Balance Sheet from the following balances, relating to the year ended 31st March, 2019:
|
₹
|
₹
|
||
| Capital |
1,00,000
|
Wages |
50,000
|
| Creditors |
12,000
|
Bank |
10,000
|
| Returns Outward |
5,000
|
Repairs |
500
|
| Sales |
1,64,000
|
Stock on 1st April, 2018 |
20,000
|
| Bills Payable |
5,000
|
Rent |
4,000
|
| Plant and Machinery |
40,000
|
Manufacturing Expenses |
8,000
|
| Sundry Debtors |
24,000
|
Trade Expenses |
7,000
|
| Drawings |
10,000
|
Bad Debts |
2,000
|
| Purchases |
1,05,000
|
Carriage |
1,500
|
| Returns Inward |
3,000
|
Fuel and Power |
1,000
|
Additional Information:
(i) Closing Stock was valued at ₹ 14,500.
(ii) Depreciate Plant and Machinery by ₹ 4,000.
(iii) Write off Bad Debts ₹ 5,000.
(iv) ₹ 400 is due for repairs.
Answer:
|
Trading Account for the year ended March 31, 2019 |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||||
|
Opening stock |
20,000 |
Sales |
1,64,000 |
|
|||
|
Purchases |
1,05,000 |
|
Less: Return Inwards |
(3,000) |
1,61,000 |
||
|
Less: Return out words |
(5,000) |
1,00,000 |
Closing Stock |
14,500 |
|||
|
Wages |
50,000 |
Gross Loss (Balancing Figure) |
5,000 |
||||
|
Manufacturing Expenses |
8,000 |
|
|
||||
|
Carriage |
1,500 |
|
|
||||
|
Fuel and Power |
1,000 |
|
|
||||
|
|
1,80,500 |
|
1,80,500 |
||||
|
|
|
|
|
||||
|
Profit and Loss Account for the year ended March 31, 2019 |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||||
|
Gross Loss |
5,000 |
|
|
||||
|
Repairs |
500 |
|
|
|
|||
|
Add: outstanding |
400 |
900 |
|
|
|||
|
Rent |
4,000 |
|
|
||||
|
Miscellaneous Expenses |
7,000 |
|
|
||||
|
Bad Debts |
2,000 |
|
Net Loss (Balancing Figure) |
27,900 |
|||
|
Add: Additional bad debts |
5,000 |
7,000 |
|
|
|||
|
Depreciation on Plant and Machinery |
4,000 |
|
|
||||
|
|
27,900 |
|
27,900 |
||||
|
|
|
|
|
||||
|
Balance Sheet as on March 31, 2019 |
|||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Capital |
1,00,000 |
|
Fixed Assets |
|
|
|
Less: Drawings |
(10,000) |
|
Plant and Machinery |
40,000 |
|
|
Less: Net Loss |
(27,900) |
62,100 |
Less: Depreciation |
(4,000) |
36,000 |
|
Current Liabilities |
|
Current Assets |
|
||
|
Creditors |
12,000 |
Closing Stock |
14,500 |
||
|
Bills Payable |
5,000 |
Sundry Debtors |
24,000 |
|
|
|
Outstanding Repairs |
400 |
Less: Further Bad Debts |
(5,000) |
19,000 |
|
|
|
|
Bank |
10,000 |
||
|
|
79,500 |
|
79,500 |
||
|
|
|
|
|
||
Page No 19.65:
Question 3:
Following Trial Balance has been extracted from the books of Prasad on 31st March, 2019:
|
Particulars
|
Dr. (₹)
|
Particulars
|
Cr. (₹)
|
| Machinery |
4,00,000
|
Capital |
9,00,000
|
| Cash at Bank |
1,00,000
|
Sales |
16,00,000
|
| Cash in Hand |
50,000
|
Sundry Creditors |
4,50,000
|
| Wages |
1,00,000
|
Interest Received |
30,000
|
| Purchases |
8,00,000
|
||
| Stock on 1st April, 2018 |
6,00,000
|
||
| Sundry Debtors |
4,40,000
|
||
| Bills Receivable |
2,90,000
|
||
| Rent |
45,000
|
||
| Commission |
25,000
|
||
| General Expenses |
80,000
|
||
| Salaries |
50,000
|
||
|
29,80,000
|
29,80,000
|
||
Additional Information:
(i) Outstanding salaries were ₹ 45,000.
(ii) Depreciate Machinery at 10%.
(iii) Wages outstanding were ₹ 5,000.
(iv) Rent prepaid ₹ 10,000.
(v) Provide for interest on capital @ 5% per annum.
(vi) Stock on 31st March, 2019 ₹ 8,00,000.
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as at that date.
Answer:
|
Financial Statement of M/s. Ram Prasad & Sons |
||||
|
Trading Account for the year ended March 31, 2019 |
||||
|
Dr. |
|
|
Cr. |
|
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
|
Opening Stock |
6,00,000 |
Sales |
16,00,000 |
|
|
Purchases |
8,00,000 |
Closing Stock |
8,00,000 |
|
|
Wages |
1,00,000 |
|
|
|
|
Add: Outstanding Wages |
5,000 |
1,05,000 |
|
|
|
Gross Profit (Balancing Figure) |
8,95,000 |
|
|
|
|
|
|
|
|
|
|
|
24,00,000 |
|
24,00,000 |
|
|
|
|
|
|
|
|
Profit and Loss Account for the year ended March 31, 2019 |
||||||
|
Dr. |
|
Cr. |
||||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|||
|
Rent |
45,000 |
|
Gross Profit |
8,95,000 |
||
|
Less: Prepaid Rent |
(10,000) |
35,000 |
Interest Received |
30,000 |
||
|
Commission |
25,000 |
|
|
|||
|
General Expenses |
80,000 |
|
|
|||
|
Salaries |
50,000 |
|
|
|
||
|
Add: Outstanding Salaries |
45,000 |
95,000 |
|
|
||
|
Depreciation on Machinery |
40,000 |
|
|
|||
|
Net Profit (Balancing Figure) |
6,50,000 |
|
|
|||
|
|
9,25,000 |
|
9,25,000 |
|||
|
|
|
|
|
|||
|
Balance Sheet as on March 31, 2019 |
|||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Capital |
9,00,000 |
|
Fixed Assets |
|
|
|
Add: Net Profit |
6,50,000 |
15,50,000 |
Machinery |
4,00,000 |
|
|
Current Liabilities |
|
Less: 10% Depreciation |
(40,000) |
3,60,000 |
|
|
Sundry Creditors |
4,50,000 |
Current Assets |
|
||
|
Outstanding Salary |
45,000 |
Closing Stock |
8,00,000 |
||
|
Outstanding Wages |
5,000 |
Sundry Debtors |
4,40,000 |
||
|
|
|
Bills Receivable |
2,90,000 |
||
|
|
|
Prepaid Rent |
10,000 |
||
|
|
|
Cash at Bank |
1,00,000 |
||
|
|
|
Cash in Hand |
50,000 |
||
|
|
20,50,000 |
|
20,50,000 |
||
|
|
|
|
|
||
Page No 19.66:
Question 4:
From the following Trial Balance of Shradha as on 31st March, 2019, prepare Trading and Profit and Loss Account and Balance Sheet:
| Heads of Accounts |
Debit Balances
(₹) |
Credit Balances
(₹) |
|
| Capital |
…
|
80,000
|
|
| Drawings |
18,000
|
…
|
|
| Sales |
…
|
1,55,000
|
|
| Purchases |
82,600
|
…
|
|
| Stock (1st April, 2018) |
42,000
|
…
|
|
| Returns Outward |
…
|
1,600
|
|
| Carriage Inwards |
1,200
|
…
|
|
| Wages |
4,000
|
…
|
|
| Power |
6,000
|
…
|
|
| Machinery |
50,000
|
…
|
|
| Furniture |
14,000
|
…
|
|
| Rent |
22,000
|
…
|
|
| Salary |
15,000
|
…
|
|
| Insurance |
3,600
|
…
|
|
| 8% Bank Loan |
…
|
25,000
|
|
| Debtors |
20,600
|
…
|
|
| Creditors |
…
|
18,900
|
|
| Cash in Hand |
1,500
|
…
|
|
| Total |
2,80,500
|
2,80,500
|
|
Adjustments:
(i) Closing Stock ₹ 64,000.
(ii) Wages outstanding ₹ 2,400.
(iii) Bad Debts ₹ 600.
(iv) Provision for Doubtful Debts to be 5%.
(v) Rent is paid for 11 months.
(vi) Insurance premium is paid per annum, ended 31st May, 2019.
(vii) Loan from the bank was taken on 1st October, 2018.
(viii) Provide Depreciation on machinery @ 10% and on Furniture @ 5%.
Answer:
|
Financial statement of M/s. Shradha & Sons |
||||||
|
Trading Account for the year ended March 31, 2019 |
||||||
|
Dr. |
|
Cr. |
||||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|||
|
Opening Stock |
42,000 |
Sales |
1,55,000 |
|||
|
Purchases |
82,600 |
|
|
|
||
|
Less: Return Outwards |
(1,600) |
81,000 |
|
|
||
|
Carriages Inwards |
1,200 |
Closing Stock |
64,000 |
|||
|
Wages |
4,000 |
|
|
|
||
|
Add: Outstanding Wages |
2,400 |
6,400 |
|
|
||
|
Power |
6,000 |
|
|
|||
|
Gross Profit (Balancing Figure) |
82,400 |
|
|
|||
|
|
2,19,000 |
|
2,19,000 |
|||
|
|
|
|
|
|||
| *** | ||||||
|
Profit and Loss Account for the year ended March 31, 2019 |
||||
|
Dr. |
|
|
Cr. |
|
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
|
Rent |
22,000 |
|
Gross Profit |
82,400 |
|
Add: Outstanding for One month (22,000/11) |
2,000 |
24,000 |
|
|
|
Salary |
15,000 |
|
|
|
|
Insurance |
3,600 |
|
|
|
|
Less: Prepaid 2 month(3,600 × 2/12) |
(600) |
3,000 |
|
|
|
Outstanding Interest on Bank Loan (25,000 × 8% × 6/12) |
1,000 |
|
|
|
|
Bad Debts |
600 |
|
|
|
|
Add: Provision for Doubtful Debts |
1,000 |
1,600 |
|
|
|
Depreciation on: |
|
|
|
|
|
Machinery |
5,000 |
|
|
|
|
Furniture |
700 |
5,700 |
|
|
|
Net Profit (Balancing Figure) |
32,100 |
|
|
|
|
|
82,400 |
|
82,400 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2019 |
|||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Capital |
80,000 |
|
Fixed Assets |
|
|
|
Add: Net Profit |
32,100 |
|
Machinery |
50,000 |
|
|
Less: Drawings |
(18,000) |
94,100 |
Less: 10% Depreciation |
(500) |
45,000 |
|
8% Bank Loan |
25,000 |
|
Furniture |
14,000 |
|
|
Add: Outstanding Interest |
1,000 |
26,000 |
Less: 5% Deprecation |
(700) |
13,300 |
|
Current Liabilities |
|
Current Assets |
|
||
|
Creditors |
18,900 |
Closing Stock |
64,000 |
||
|
Wages Outstanding |
2,400 |
Debtors |
20,600 |
|
|
|
Rent Outstanding |
2,000 |
Less: Bad Debts |
(600) |
|
|
|
|
|
Less: 5% Provision for doubtful Debts |
(1,000) |
19,000 |
|
|
|
|
Prepaid Insurance |
600 |
||
|
|
|
Cash in hand |
1,500 |
||
|
|
1,43,400 |
|
1,43,400 |
||
|
|
|
|
|
||
Page No 19.66:
Question 5:
Trial Balance of a business as at 31st March, 2019 is given below:
|
|
|
|
|||
| Particulars | Dr. (₹) |
Particulars | Cr. (₹) |
||
| Stock on 1st April, 2018 | 25,000 | Sales | 2,27,800 | ||
| Furniture | 8,000 | Commission | 500 | ||
| Plant and Machinery | 1,50,000 | Returns Outward | 1,000 | ||
| Debtors | 30,000 | Creditors | 40,000 | ||
| Wages | 12,000 | Capital | 1,50,000 | ||
| Salaries | 20,000 | ||||
| Bad Debts | 1,000 | ||||
| Purchases | 1,20,000 | ||||
| Electricity Charges | 1,200 | ||||
| Telephone Charges | 2,400 | ||||
| General Expenses | 3,000 | ||||
| Postage Expenses | 1,800 | ||||
| Returns Inward | 900 | ||||
| Insurance Premium | 1,500 | ||||
| Cash in Hand | 2,500 | ||||
| Cash at Bank | 40,000 | ||||
| 4,19,300 | 4,19,300 | ||||
| | |||||
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as at that date after taking into account the following adjustments:
(i) Closing Stock was valued at ₹ 7,000.
(ii) Outstanding liabilities for wages were ₹ 600 and salaries ₹ 1,400.
(iii) Depreciation is to be provided @ 5% p.a. on fixed assets.
(iv) Included in Plant and Machinery is a machine purchased for ₹ 10,000 on 1st October, 2018.
(v) Insurance premium paid in advance ₹ 200.
Answer:
|
Trading Account
for the year ended March 31, 2018
|
|||||
| Dr. |
Cr.
|
||||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
||
| Opening Stock |
25,000
|
Sales |
2,27,800
|
|
|
| Purchases |
1,20,000
|
|
Less: Returns |
900
|
2,26,900
|
| Less: Returns |
1,000
|
1,19,000
|
Closing Stock |
7,000
|
|
| Wages |
12,000
|
|
|
||
| Add: Outstanding Wages |
600
|
12,600
|
|
||
| Gross Profit |
77,300
|
|
|||
|
2,33,900
|
2,33,900
|
||||
|
Profit & Loss Account
for the year ended March 31, 2018
|
|||||
| Dr. |
Cr.
|
||||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
||
| Bad Debts |
1,000
|
Gross Profit |
77,300
|
||
| Insurance Premium |
1,500
|
|
Commission |
500
|
|
| Less: Prepaid |
200
|
1,300
|
|
||
| Salaries |
20,000
|
|
|
||
| Add: Outstanding Salaries |
1,400
|
21,400
|
|
||
| Electricity Charges |
1,200
|
|
|||
| General Expenses |
3,000
|
|
|||
| Postage Expenses |
1,800
|
|
|||
| Telephone Charges |
2,400
|
|
|||
| Depreciation on: |
|
|
|||
| Furniture |
400
|
|
|
||
| Plant & Machinery |
7,250
|
7,650
|
|
||
| Net Profit |
38,050
|
|
|||
|
77,800
|
77,800
|
||||
|
Balance Sheet
as on March 31, 2018
|
|||||
| Dr. |
Cr.
|
||||
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
||
| Creditors |
40,000
|
Furniture |
8,000
|
|
|
| Outstanding Wages |
600
|
Less: Depreciation |
400
|
7,600
|
|
| Outstanding Salaries |
1,400
|
Plant & Machinery |
1,50,000
|
|
|
| Capital |
1,50,000
|
|
Less: Depreciation |
7,250
|
1,42,750
|
| Add: Net Profit |
38,050
|
1,88,050
|
Cash at Bank |
40,000
|
|
|
|
Cash in Hand |
2,500
|
|||
|
|
Closing Stock |
7,000
|
|||
|
|
Debtors |
30,000
|
|||
|
|
Prepaid Insurance |
200
|
|||
|
2,30,050
|
2,30,050
|
||||
Page No 19.67:
Question 6:
Following are the balances extracted from the books of Narain on 31st March, 2019:
| Particulars | Amount (₹) |
Particulars |
Amount
(₹)
|
||
| Narain's Capital | 3,00,000 | Sales | 15,00,000 | ||
| Narain's Drawings | 50,000 | Sales Return | 20,000 | ||
| Furniture and Fittings | 26,000 | Discounts (Dr.) | 16,000 | ||
| Bank Overdraft | 42,000 | Discounts (Cr.) | 20,000 | ||
| Creditors | 1,38,000 | Insurance | 20,000 | ||
| Business Premises | 2,00,000 | General Expenses | 40,000 | ||
| Stock on 1st April, 2018 | 2,20,000 | Salaries | 90,000 | ||
| Debtors | 1,80,000 | Commission (Dr.) | 22,000 | ||
| Rent from Tenants | 10,000 | Carriage on Purchases | 18,000 | ||
| Purchases | 11,00,000 | Bad Debts Written off | 8,000 | ||
Additional Information:
(i) Closing Stock as on 31st March, 2019 was ₹ 2,00,600, whereas its Net Realisable Value (Market Value) was ₹ 2,05,000.
(ii) Depreciate: Business Premises by ₹ 3,000 and Furniture and Fittings by ₹ 2,500.
(iii) Make a provision of 5% on debtors for doubtful debts.
(iv) Carry forward ₹ 2,000 for unexpired insurance.
(v) Outstanding salary was ₹ 15,000.
Prepare Trading and Profit and Loss Account for the year and Balance Sheet as at that date.
Answer:
|
Trading Account
for the year ended March 31, 2019
|
||||
| Dr. |
Cr.
|
|||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
| Opening Stock |
2,20,000
|
Sales |
15,00,000
|
|
| Purchases |
11,00,000
|
Less: Returns |
20,000
|
14,80,000
|
| Carriage on Purchases |
18,000
|
Closing Stock |
2,00,600
|
|
| Gross Profit |
3,42,600
|
|
||
|
16,80,600
|
16,80,600
|
|||
|
Profit & Loss Account
for the year ended March 31, 2019
|
|||||
| Dr. |
Cr.
|
||||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
||
| Commission |
22,000
|
Gross Profit |
3,42,600
|
||
| Insurance Premium |
20,000
|
|
Discount |
20,000
|
|
| Less: Prepaid |
2,000
|
18,000
|
Rent from Tenants |
10,000
|
|
| Salaries |
90,000
|
|
|
||
| Add: Outstanding Salaries |
15,000
|
1,05,000
|
|
||
| Bad Debts Written Off |
8,000
|
|
|||
| Provision for Doubtful Debts |
9,000
|
|
|||
| Discount |
16,000
|
|
|||
| General Expenses |
40,000
|
|
|||
| Depreciation on: |
|
|
|||
| Furniture |
2,500
|
|
|
||
| Business Premises |
3,000
|
5,500
|
|
||
| Net Profit |
1,49,100
|
|
|||
|
3,72,600
|
3,72,600
|
||||
|
Balance Sheet
as on March 31, 2019
|
|||||
| Dr. |
Cr.
|
||||
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
||
| Bank Overdraft |
42,000
|
Furniture & Fittings |
26,000
|
|
|
| Creditors |
1,38,000
|
Less: Depreciation |
2,500
|
23,500
|
|
| Outstanding Salaries |
15,000
|
Business Premises |
2,00,000
|
|
|
| Capital |
3,00,000
|
|
Less: Depreciation |
3,000
|
1,97,000
|
| Less: Drawings |
50,000
|
|
Debtors |
1,80,000
|
|
| Add: Net Profit |
1,49,100
|
3,99,100
|
Less: Provision |
9,000
|
1,71,000
|
|
|
Closing Stock |
2,00,600
|
|||
|
|
Prepaid Insurance |
2,000
|
|||
|
5,94,100
|
5,94,100
|
||||
Page No 19.68:
Question 7:
Following balances are taken from the books of Niranjan. Prepare Trading and Profit and Loss Account and Balance Sheet for the year ended 31st March, 2019:
|
Particulars
|
₹
|
Particulars
|
₹
|
| Capital |
12,00,000
|
Drawings |
2,10,000
|
| Opening Stock |
4,50,000
|
Plant and Machinery |
2,40,000
|
| Furniture |
15,000
|
Purchases |
29,50,000
|
| Sales |
43,50,000
|
Insurances |
15,000
|
| Purchases Return |
40,000
|
Sales Return |
70,000
|
| Rent |
50,000
|
Trade Expenses |
20,000
|
| Salaries |
2,40,000
|
Wages |
4,00,000
|
| Bad Debts |
10,000
|
6% Investments |
5,00,000
|
| Sundry Debtors |
4,00,000
|
Sundry Creditors |
1,90,000
|
| Bills Payable |
8,000
|
Cash |
1,22,000
|
| Advertisement Expenses |
60,000
|
Miscellaneous Income |
12,000
|
| Patents |
48,000
|
Adjustments:
(i) Closing Stock ₹ 7,50,000.
(ii) Depreciate Machinery by 10% and Furniture by 20%.
(iii) Wages ₹ 50,000 and salaries ₹ 20,000 are outstanding.
(iv) Write off ₹ 50,000 as further Bad Debts and create 5% Provision for Doubtful Debts. Also, create a reserve for discount on Debtors @ 2%.
(v) Investments were made on 1st July, 2018 and no interest has been received so far.
Answer:
|
Financial statements of Mr. Niranjan |
|||||
|
Trading Account for the year ended March 31, 2019 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||
|
Opening Stock |
4,50,000 |
Sales |
43,50,000 |
|
|
|
Purchases |
29,50,000 |
|
Less: Sales Return |
(70,000) |
42,80,000 |
|
Less: Purchases Return |
(40,000) |
29,10,000 |
Closing Stock |
7,50,000 |
|
|
Wages |
4,00,000 |
|
|
|
|
|
Add: Outstanding wages |
50,000 |
4,50,000 |
|
|
|
|
Gross Profit (Balancing Figure) |
12,20,000 |
|
|
||
|
|
|
|
|
||
|
|
50,30,000 |
|
50,30,000 |
||
|
|
|
|
|
||
|
Profit and Loss Account for the year ended March 31, 2019 |
||||||
|
Dr. |
|
Cr. |
||||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|||
|
Rent |
50,000 |
Gross Profit |
12,20,000 |
|||
|
Salaries |
2,40,000 |
|
|
|
||
|
Add: Outstanding Salaries |
20,000 |
2,60,000 |
|
|
||
|
Bad Debts |
10,000 |
|
Interest Accrued on Investment |
|
||
|
Add: Further Bad Debts |
50,000 |
|
(5,00,000 × 6% × 9/12) |
22,500 |
||
|
Add: Provision for Doubtful Debts |
17,500 |
77,500 |
Miscellaneous Receipts |
12,000 |
||
|
Advertisement expenses |
60,000 |
|
|
|||
|
Provision for discount on debtors |
6,650 |
|
|
|||
|
Insurances |
15,000 |
|
|
|||
|
Trade Expenses |
20,000 |
|
|
|||
|
Depreciation on: |
|
|
|
|||
|
Machinery |
24,000 |
|
|
|
||
|
Furniture |
3000 |
27,000 |
|
|
||
|
Net Profit (Balancing Figure) |
7,38,350 |
|
|
|||
|
|
12,54,500 |
|
12,54,500 |
|||
|
|
|
|
|
|||
|
Balance Sheet as on March 31, 2019 |
|||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Capital |
12,00,000 |
|
Fixed Assets |
|
|
|
Less: Drawings |
(2,10,000) |
|
Patents |
48,000 |
|
|
Add: Net Profit |
7,38,350 |
17,28,350 |
Plant and Machinery |
2,40,000 |
|
|
Current Liabilities |
|
Less: 10% Depreciation |
(24,000) |
2,16,000 |
|
|
Sundry Creditors |
1,90,000 |
Furniture |
15,000 |
|
|
|
Wages Outstanding |
50,000 |
Less: 20% Depreciation |
(3,000) |
12,000 |
|
|
Salaries Outstanding |
20,000 |
6% Investment |
5,00,000 |
|
|
|
Bills Payable |
8000 |
Add: Accrued Interest |
22,500 |
5,22,500 |
|
|
|
|
Current Assets |
|
||
|
|
|
Closing Stock |
7,50,000 |
||
|
|
|
Debtors |
4,00,000 |
|
|
|
|
|
Less: Further Bad Debts |
(50,000) |
|
|
|
|
|
Less: Provision for Doubtful Debts |
(17,500) |
|
|
|
|
|
|
3,32,500 |
|
|
|
|
|
Less: Provision for Discount |
(6,650) |
3,25,850 |
|
|
|
|
Cash |
1,22,000 |
||
|
|
19,96,350 |
|
19,96,350 |
||
|
|
|
|
|
||
Page No 19.68:
Question 8:
From the following Trial Balance of Mahesh, prepare his Final Accounts for the year ended 31st March, 2019:
|
|
|||
|
Heads of Accounts
|
Debit Balances
(₹)
|
Credit Balances
(₹)
|
|
| Purchases |
2,50,000
|
…
|
|
| Sales |
…
|
5,00,000
|
|
| Returns Inward |
12,000
|
...
|
|
| Returns Outward |
…
|
10,000
|
|
| Carriage |
8,000
|
…
|
|
| Wages |
60,000
|
…
|
|
| Miscellaneous Expenses |
2,000
|
…
|
|
| Insurance |
1,200
|
…
|
|
| Repairs |
8,000
|
…
|
|
| Debtors |
1,15,000
|
…
|
|
| Creditors |
…
|
1,00,000
|
|
| Printing and Stationery |
6,000
|
…
|
|
| Advertisement |
15,000
|
…
|
|
| Bills Receivable |
4,000
|
…
|
|
| Bills Payable |
…
|
2,000
|
|
| Opening Stock |
30,000
|
…
|
|
| Cash in Hand |
12,000
|
…
|
|
| Interest on Bank Loan |
2,800
|
…
|
|
| Machinery |
2,80,000
|
…
|
|
| Furniture |
34,000
|
…
|
|
| Drawings |
20,000
|
…
|
|
| Commission |
…
|
1,000
|
|
| 12% Bank Loan |
…
|
30,000
|
|
| Capital |
…
|
2,40,000
|
|
| Rent Received |
…
|
5,000
|
|
| Cash at Bank |
28,000
|
…
|
|
| Total |
8,88,000
|
8,88,000
|
|
Additional Information:
(i) Closing Stock on 31st March, 2019 was ₹ 21,000.
(ii) Rent of ₹ 1,200 has been received in advance.
(iii) Outstanding liability for Miscellaneous expenses ₹ 12,000.
(iv) Commission earned during the year but not received was ₹ 2,100.
(v) Goods costing ₹ 2,000 were taken by the proprietor for his personal use but entry was not passed in the books of account.
Answer:
|
Financial Statement of Mahesh |
|||||
|
Trading Account for the year ended March 31, 2019 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||
|
Opening stock |
30,000 |
|
|
|
|
| Purchases 2,50,000 | Sales |
5,00,000 |
|||
|
Less: Drawings |
(2,000) |
|
Less: Return Inwards |
(12,000) |
4,88,000 |
|
Less: Return Outwards |
(10,000) |
2,38,000 |
Closing Stock |
21,000 |
|
|
Carriage |
8,000 |
|
|
||
|
Wages |
60,000 |
|
|
||
|
Gross Profit (Balancing Figure) |
1,73,000 |
|
|
||
|
|
|
|
|
||
|
|
5,09,000 |
|
5,09,000 |
||
|
|
|
|
|
||
|
Profit and Loss Account for the year ended March 31, 2019 |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||||
|
Miscellaneous expenses |
2,000 |
|
Gross Profit |
1,73,000 |
|||
|
Add: Outstanding Miscellaneous Expenses |
12,000 |
14,000 |
Commission |
1,000 |
|
||
|
Insurance |
1,200 |
Add: Accrued Commission |
2,100 |
3,100 |
|||
|
Repairs |
8,000 |
Rent Received |
5,000 |
|
|||
|
Advertisement |
15,000 |
Less: Advance Rent |
1,200 |
3,800 |
|||
|
Interest on Bank Loan |
2,800 |
|
|
|
|||
|
Add: Interest Outstanding |
800 |
3,600 |
|
|
|||
|
Printing and Stationary |
6,000 |
|
|
||||
|
Net Profit (Balancing Figure) |
1,32,100 |
|
|
||||
|
|
|
|
|
||||
|
|
1,79,900 |
|
1,79,900 |
||||
|
|
|
|
|
||||
|
Balance Sheet as on March 31, 2019 |
||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
|
Capital |
2,40,000 |
|
Fixed Assets |
|
|
Less: Drawings |
(22,000) |
|
Machinery |
2,80,000 |
|
Add: Net Profit |
1,32,100 |
3,50,100 |
Furniture |
34,000 |
|
10% Loan from Bank |
30,000 |
|
Current Assets |
|
|
Add: Outstanding Interest |
800 |
30,800 |
Closing Stock |
21,000 |
|
Current Liabilities |
|
Debtors |
1,15,000 |
|
|
Creditors |
1,00,000 |
Bills Receivable |
4,000 |
|
|
Bills Payable |
2,000 |
Cash at Bank |
28,000 |
|
|
Advance Rent |
1,200 |
Cash in Hand |
12,000 |
|
|
Outstanding Trade Expenses |
12,000 |
Commission Accrued |
2,100 |
|
|
|
4,96,100 |
|
4,96,100 |
|
|
|
|
|
|
|
Working Notes:
Calculation of Outstanding Interest on Loan
|
Interest on loan (30,000 × 12%) |
3,600 |
|
Less: Interest Paid |
(2,800) |
|
Interest Outstanding on Loan |
800 |
Page No 19.69:
Question 9:
Following balances were extracted from the books of Vijay on 31st March, 2019:
|
Particulars
|
₹
|
Particulars
|
₹
|
| Capital |
2,45,000
|
Loan |
78,800
|
| Drawings |
20,000
|
Sales |
6,53,600
|
| General Expenses |
47,400
|
Purchases |
4,70,000
|
| Building |
1,10,000
|
Motor Car |
20,000
|
| Machinery |
93,400
|
Provision for Doubtful Debts |
9,000
|
| Stock on 1st April, 2018 |
1,62,000
|
Commission (Cr.) |
13,200
|
| Insurance |
13,150
|
Car Expenses |
18,000
|
| Wages |
72,000
|
Bills Payable |
38,500
|
| Debtors |
62,800
|
Cash |
800
|
| Creditors |
25,000
|
Bank Overdraft |
33,000
|
| Bad Debts |
5,500
|
Charity |
1,050
|
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as at that date after giving effect to the following adjustments:
(a) Stock as on 31st March, 2019 was valued at ₹ 2,30,000.
(b) Write off further ₹ 1,800 as Bad Debts and maintain the Provision for Doubtful Debts at 5%.
(c) Depreciate Machinery at 10%.
(d) Provide ₹ 7,000 as outstanding interest on loan.
Answer:
|
Financial Statement of Vijay Kumar |
|||
|
Trading Account for the year ended March 31, 2019 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Opening Stock |
1,62,000 |
Sales |
6,53,600 |
|
Purchases |
4,70,000 |
Closing Stock |
2,30,000 |
|
Wages |
72,000 |
|
|
|
Gross Profit (Balancing Figure) |
1,79,600 |
|
|
|
|
8,83,600 |
|
8,83,600 |
|
|
|
|
|
|
Profit and Loss Account for the year ended March 31, 2019 |
||||||
|
Dr. |
|
Cr. |
||||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|||
|
Taxes and Insurance |
13,150 |
Gross Profit |
1,79,600 |
|||
|
Bad Debts |
5,500 |
|
Commission |
13,200 |
||
|
Add: Further Bad Debts |
1,800 |
|
|
|
||
|
Add: Provision for Doubtful Debts |
3,050 |
|
|
|
||
|
|
10,350 |
|
|
|
||
|
Less: Exiting Provision |
9,000 |
1,350 |
|
|
||
|
Car Expenses |
18,000 |
|
|
|||
|
Charity |
1,050 |
|
|
|||
|
Depreciation on Machinery |
9,340 |
|
|
|||
|
Outstanding Interest on Loan |
7,000 |
|
|
|||
|
General Expenses |
47,400 |
|
|
|||
|
Net Profit (Balancing Figure) |
95,510 |
|
|
|||
|
|
1,92,800 |
|
1,92,800 |
|||
|
|
|
|
|
|||
|
Balance Sheet as on March 31, 2019 |
|||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Capital |
2,45,000 |
|
Fixed Assets |
|
|
|
Add: Net Profit |
95,510 |
|
Building |
1,10,000 |
|
|
Less: Drawings |
(20,000) |
3,20,510 |
Machinery |
93,400 |
|
|
Loan |
78,800 |
|
Less:10% Depreciation |
9,340 |
84,060 |
|
Add: Outstanding Interest |
7,000 |
85,800 |
Motor Car |
20,000 |
|
|
Current Liabilities |
|
Current Assets |
|
||
|
Creditors |
25,000 |
Closing Stock |
2,30,000 |
||
|
Bills Payable |
38,500 |
Debtors |
62,800 |
|
|
|
Bank Overdraft |
33,000 |
Less: Bad Debts |
(1,800) |
|
|
|
|
|
Less: 5% Provision for Doubtful Debts |
(3,050) |
57,950 |
|
|
|
|
Cash |
800 |
||
|
|
5,02,810 |
|
5,02,810 |
||
|
|
|
|
|
||
Page No 19.70:
Question 10:
From the following Trial Balance and other information, prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as at that date:
|
Particulars
|
Dr.
(₹)
|
Cr.
(₹)
|
|
| Sundry Debtors |
3,20,000
|
…
|
|
| Stock on 1st April, 2018 |
2,20,000
|
…
|
|
| Cash in Hand |
350
|
…
|
|
| Cash at Bank |
15,450
|
…
|
|
| Plant and Machinery |
1,75,000
|
…
|
|
| Sundry Creditors |
…
|
1,06,500
|
|
| General Expenses |
10,750
|
…
|
|
| Sales |
…
|
13,45,000
|
|
| Salaries |
22,250
|
…
|
|
| Carriage Outwards |
4,000
|
…
|
|
| Rent |
9,000
|
…
|
|
| Bills Payable |
…
|
75,000
|
|
| Purchases |
11,88,700
|
…
|
|
| Discounts |
11,000
|
…
|
|
| Premises |
3,45,000
|
…
|
|
| Capital on 1st April, 2018 |
…
|
7,95,000
|
|
| Total |
23,21,500
|
23,21,500
|
|
Stock on 31st March, 2019 was ₹ 1,24,500. Rent was unpaid to the extent of ₹ 850 and ₹ 1,500 were outstanding for General Expenses; ₹ 4,000 are to be written off as bad debts out of the above debtors; and 5% is to be provided for doubtful debts. Depreciate Plant and Machinery by 10% and Premises by 2%.
Manager is entitled to a commission of 5% on net profit after charging his commission.
Answer:
|
Financial Statement Trading Account for the year ended March 31, 2019 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Opening Stock |
2,20,000 |
Sales |
13,45,000 |
|
Purchases |
11,88,700 |
Closing Stock |
1,24,500 |
|
Gross Profit (Balancing Figure) |
60,800 |
|
|
|
|
14,69,500 |
|
14,69,500 |
|
|
|
|
|
|
Profit and Loss Account for the year ended March 31, 2019 |
||||||
|
Dr. |
|
|
|
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|||
|
Rent |
9,000 |
|
Gross Profit |
60,800 |
||
|
Add: Outstanding Rent |
850 |
9,850 |
Net Loss (Balancing Figure) |
42,750 |
||
|
General Expenses |
10,750 |
|
|
|
||
|
Add: Outstanding General Expenses |
1,500 |
12,250 |
|
|
||
|
Bad Debts |
4,000 |
|
|
|
||
|
Add: Provision for Debts |
15,800 |
19,800 |
|
|
||
|
Depreciation on |
|
|
|
|||
|
Plant and Machinery |
17,500 |
|
|
|
||
|
Business Premises |
6,900 |
24,400 |
|
|
||
|
Salaries |
22,250 |
|
|
|||
|
Carriage Outwards |
4,000 |
|
|
|||
|
Discount |
11,000 |
|
|
|||
|
|
1,03,550 |
|
1,03,550 |
|||
|
|
|
|
|
|||
|
Balance Sheet as on March 31, 2019 |
|||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Capital |
7,95,000 |
|
Fixed Assets |
|
|
|
Less: Net Loss |
(42,750) |
7,52,250 |
Plant and Machinery |
1,75,000 |
|
|
Current Liabilities |
|
Less: 10% Depreciation |
(17,500) |
1,57,500 |
|
|
Sundry Creditors |
1,06,500 |
Premises |
3,45,000 |
|
|
|
Bills Payable |
75,000 |
Less: 2% Depreciation |
(6,900) |
3,38,100 |
|
|
Rent Outstanding |
850 |
Current Assets |
|
||
|
General Expenses Outstanding |
1,500 |
Closing Stock |
1,24,500 |
||
|
|
|
Sundry Debtors |
3,20,000 |
|
|
|
|
|
Less: Bad Debts |
(4,000) |
|
|
|
|
|
|
3,16,000 |
|
|
|
|
|
Less: 5% Provision for Doubtful Debts |
(15,80) |
3,00,200 |
|
|
|
|
Cash at Bank |
15,450 |
||
|
|
|
Cash in Hand |
350 |
||
|
|
9,36,100 |
|
9,36,100 |
||
|
|
|
|
|
||
Note: In the question, Manager Commission is given as 5% on Net Profit after charging commission. But, during the year the firm had a Net Loss of Rs 42,750, therefore, manager commission is not payable.
Page No 19.71:
Question 11:
From the following Trial Balance of Shubho, prepare final accounts for the year ended 31st March, 2019 and Balance Sheet as at that date:
|
|
|
||
| Particulars | Dr. Balances (₹) |
Cr. Balances (₹) |
|
| Land and Building | 50,000 | ||
| Purchases (Adjusted) | 2,10,000 | ||
| Stock (31st March, 2019) | 45,000 | ||
| Returns Inward | 1,500 | ||
| Returns Outward | 2,500 | ||
| 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 | 3,85,000 | ||
| Capital Account | 1,15,000 | ||
| Chatterji's Loan A/c (taken on 1st Oct., 2018 @ 18% p.a. | 25,000 | ||
| Insurance | 1,500 | ||
| Commission | 1,500 | ||
| Plant and Machinery | 50,000 | ||
| Furniture and Fixtures | 20,000 | ||
| Bills Receivable | 20,000 | ||
| Sundry Debtors | 40,000 | ||
| Sundry Creditors | 25,000 | ||
| Cash at Bank | 16,000 | ||
| Office Equipments | 12,000 | ||
| Bills Payable | 12,350 | ||
| Expenses Payable | 3,300 | ||
| Total | 5,70,850 | 5,70,850 | |
| | |||
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, 2019
|
|||||
| Dr. |
Cr.
|
||||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
||
| Purchases (Adjusted) |
2,10,000
|
|
Sales |
3,85,000
|
|
| Less: Returns |
2,500
|
2,07,500
|
Less: Returns |
1,500
|
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, 2019
|
|||||
| 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, 2019
|
|||||
| Dr. |
Cr.
|
||||
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
||
| Bills Payable |
12,350
|
Furniture & Fixtures |
20,000
|
|
|
| Creditors |
25,000
|
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
|
1,56,685
|
Less: Provision |
800
|
39,200
|
| 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
|
|
|
|
Bills Receivable |
20,000
|
|||
|
|
Closing Stock |
45,000
|
|||
|
|
Cash at Bank |
16,000
|
|||
|
|
Prepaid Insurance |
250
|
|||
|
2,39,050
|
2,39,050
|
||||
Page No 19.72:
Question 12:
Following is the Trial Balance as on 31st March, 2019. Prepare Trading and Profit and Loss Account and Balance Sheet:
| Particulars | Dr. (₹) |
Cr. (₹) |
|
| Stock on 1st April, 2018 | 8,000 | ||
| Sales | 2,20,000 | ||
| Purchases | 1,26,000 | ||
| Productive Wages | 56,500 | ||
| Salaries | 16,000 | ||
| Stores Consumed | 6,050 | ||
| Carriage | 3,050 | ||
| Rent | 5,200 | ||
| Insurance | 1,320 | ||
| Machinery | 52,000 | ||
| Building | 67,000 | ||
| Capital Less Drawings | 1,45,600 | ||
| Sundry Debtors | 44,000 | ||
| Sundry Creditors | 20,000 | ||
| Secured Loan | 16,000 | ||
| Furniture | 3,350 | ||
| General Expenses | 2,600 | ||
| Cash in Hand | 1,930 | ||
| Bad Debts | 1,020 | ||
| Bank | 6,580 | ||
| Input CGST | 3,000 | ||
| Input SGST | 3,000 | ||
| Output CGST | 2,500 | ||
| Output SGST | 2,500 | ||
| Total | 4,06,600 | 4,06,600 | |
| | |||
You are to make adjustments in respect of the following:
(a) Depreciate Machinery at 10% p.a.
(b) Make a provision @ 5% for Doubtful Debts.
(c) Provide discount on debtors @ %.
(d) Rent includes Rent deposit of ₹ 400.
(e) Insurance Prepaid ₹ 120.
Answer:
|
Trading Account
for the year ended March 31, 2019
|
|||
| Dr. |
Cr.
|
||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
| Opening Stock |
8,000
|
Sales |
2,20,000
|
| Purchases |
1,26,000
|
Closing Stock |
20,600
|
| Carriage |
3,050
|
|
|
| Productive Wages |
56,500
|
|
|
| Stores Consumed |
6,050
|
|
|
| Gross Profit |
41,000
|
|
|
|
2,40,600
|
|
2,40,600
|
|
|
Profit & Loss Account
for the year ended March 31, 2019
|
||||||
| Dr. |
Cr.
|
|||||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|||
| Salaries |
16,000
|
Gross Profit |
41,000
|
|||
| Insurance Premium |
1,320
|
|
|
|||
| Less: Prepaid |
120
|
1,200
|
|
|||
| Depreciation on Machinery |
5,200
|
|
||||
| Rent |
5,200
|
|
|
|||
| Less: Deposit |
400
|
4,800
|
|
|||
| Bad Debts |
1,020
|
|
|
|||
| Add: Provision for Doubtful Debts |
2,200
|
|
|
|||
| Add: Provision for Discount |
1,045
|
4,265
|
|
|||
| General Expenses |
2,600
|
|
||||
| Net Profit |
6,935
|
|
||||
|
1,32,200
|
|
1,32,200
|
||||
|
|
|
|
||||
|
Balance Sheet
as on March 31, 2019
|
|||||
| Dr. |
Cr.
|
||||
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
||
| Creditors |
20,000
|
Bank |
6,580
|
||
| Secured Loan |
16,000
|
Building |
67,000
|
||
| Capital |
1,45,600
|
|
Closing Stock |
20,600
|
|
| Add: Net Profit |
6,935
|
1,52,535
|
Cash in Hand |
1,930
|
|
|
|
|
Debtors |
44,000
|
|
|
|
|
|
Less: Provision for DD |
2,200
|
|
|
|
|
|
Less: Provision for Discount |
1,045
|
40,755
|
|
|
|
|
Machinery |
52,000
|
|
|
|
|
|
Less: Depreciation |
5,200
|
46,800
|
|
|
|
Furniture |
3,350
|
|||
|
|
Prepaid Insurance |
120
|
|||
|
|
Rent Deposit |
400
|
|||
|
|
Input CGST |
500
|
|||
|
|
Input SGST |
500
|
|||
|
1,88,535
|
|
1,88,535
|
|||
Page No 19.73:
Question 13:
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as at that date from the following Trial Balance:
|
Particulars
|
Dr.
(₹)
|
Cr.
(₹)
|
|
| Capital |
…
|
1,00,000
|
|
| Cash |
15,000
|
…
|
|
| Bank Loan |
…
|
20,000
|
|
| Purchases |
1,20,000
|
…
|
|
| Sales |
…
|
1,50,000
|
|
| Sales Return |
10,000
|
…
|
|
| Purchases Return | … | 20,000 | |
| Establishment Expenses |
22,000
|
…
|
|
| Taxes and Insurance |
5,000
|
...
|
|
| Bad Debts |
5,000
|
…
|
|
| Provision for Doubtful Debts |
…
|
7,000
|
|
| Debtors |
50,000
|
…
|
|
| Creditors |
…
|
20,000
|
|
| Commission |
…
|
5,000
|
|
| Deposits |
40,000
|
…
|
|
| Opening Stock |
30,000
|
…
|
|
| Drawings |
14,000
|
…
|
|
| Furniture |
6,000
|
…
|
|
| Bills Receivable |
32,000
|
…
|
|
| Bills Payable |
…
|
25,000
|
|
| Input CGST |
10,000
|
... | |
| Input SGST |
10,000
|
…
|
|
| Output CGST |
…
|
8,000
|
|
| Output SGST | … | 8,000 | |
| Output IGST |
…
|
6,000
|
|
| Total |
3,69,000
|
3,69,000
|
|
Adjustments:
(i) Taxes ₹ 3,000 are outstanding but Insurance ₹ 500 is prepaid.
(ii) Commission ₹ 1,000 received in advance for the next year.
(iii) Interest ₹ 2,100 is to be received on Deposits and Interest on Bank Loan ₹ 3,000 is to be paid.
(iv) Provision for Doubtful Debts to be maintained at ₹ 10,000.
(v) Depreciate Furniture by 10%.
(vi) Stock on 31st March, 2019 is ₹ 45,000.
(vii) A fire occurred on 1st April, 2019 destroying goods costing ₹ 10,000. These goods were purchased paying CGST and SGST @ 6% each.
Answer:
|
Financial Statements Trading Account for the year ended March 31, 2019 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||
|
Opening Stock |
30,000 |
Sales |
1,50,000 |
|
|
|
Purchases |
1,20,000 |
|
Less: Return |
(10,000) |
1,40,000 |
|
Less: Return |
(20,000) |
1,00,000 |
Closing Stock |
45,000 |
|
|
Gross Profit (Balancing Figure) |
55,000 |
|
|
||
|
|
1,85,000 |
|
1,85,000 |
||
|
|
|
|
|
||
|
Profit and Loss Account for the year ended March 31, 2019 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||
|
Taxes and Insurance |
5,000 |
|
Gross Profit |
55,000 |
|
|
Add: Outstanding Taxes |
3,000 |
|
Commission |
5,000 |
|
|
Less: Prepaid Insurance |
(500) |
7,500 |
Less: Advance Commission |
(1,000) |
4,000 |
|
|
Interest Accrued on Investment |
2,100 |
|||
|
Bad Debts |
5,000 |
|
|
|
|
|
Add: Bad Debts Reserve |
10,000 |
|
|
|
|
|
Less: Existing Reserve |
(10,000) |
5,000 |
|
|
|
|
Depreciation on Furniture |
600 |
|
|
||
|
Outstanding Interest on Loan |
3,000 |
|
|
||
|
Establishment Charges |
25,000 |
|
|
||
|
Net Profit (Balancing Figure) |
20,000 |
|
|
||
|
|
61,100 |
|
61,100 |
||
|
|
|
|
|
||
|
Balance Sheet as on March 31, 2019 |
|||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Capital |
1,00,000 |
|
Investments (Deposits) |
40,000 |
|
|
Less: Drawings |
(14,000) |
|
Add: Accrued Interest |
2,100 |
42,100 |
|
Add: Net Profit |
20,000 |
1,06,000 |
Furniture |
6,000 |
|
|
Bank Loan |
20,000 |
|
Less: 10% Depreciation |
(600) |
5,400 |
|
Add: Interest Outstanding |
3,000 |
23,000 |
Sundry Debtors |
50,000 |
|
|
Sundry Creditors |
20,000 |
Less: Provision for Doubtful Debts |
(10,000) |
40,000 |
|
|
Advance Commission |
1,000 |
Bills Receivable |
32,000 |
||
|
Taxes Outstanding |
3,000 |
Cash in Hand |
15,000 |
||
|
|
|
|
|
||
|
|
1,80,000 |
|
1,80,000 |
||
|
|
|
|
|
||
Working Notes:
(1) Loss of stock by fire has ocurred on 1st April, 2019. Hence, it will not affect the Balance Sheet dated 31st March, 2019.
(2)GST Set off
First:CGST Payable/(Receivable)=Output CGST-Input CGST=8,000-10,000=(2,000)
Second:SGST Payable/(Receivable)=Output SGST-Input SGST=8,000-10,000=(2,000)
Third:IGST Payable/(Receivable)=Output IGST-Input CGST-Input SGST=6,000-2,000-2,000=2,000
Final:GST Payable=Output IGST=2,000
Page No 19.74:
Question 14:
From the following Trial Balance of Ramesh, prepare Trading, Profit and Loss Account for the year ending 31st March, 2019 and a Balance Sheet as on that date:
|
|
|
||
| Heads of Accounts | Dr. (₹) |
Cr. (₹) |
|
| Drawings | 15,000 | ||
| Capital | 3,50,000 | ||
| Plant and Machinery | 2,05,000 | ||
| Debtors | 50,000 | ||
| Creditors | 28,000 | ||
| Returns Inward | 8,000 | ||
| Returns Outward | 7,000 | ||
| Discount Allowed | 7,000 | ||
| Discount Received | 6,000 | ||
| Commission | 15,000 | ||
| Interest on Bank Loan | 12,000 | ||
| Furniture | 55,000 | ||
| Provision for Doubtful Debts | 13,000 | ||
| Wages | 50,000 | ||
| Salaries | 45,000 | ||
| Advertisement | 15,000 | ||
| Rent and Taxes | 13,000 | ||
| Purchases | 2,60,000 | ||
| Sales | 4,00,000 | ||
| Stock on 1st April, 2018 | 70,000 | ||
| Carriage | 5,000 | ||
| Land and Building | 98,000 | ||
| Cash in Hand | 8,000 | ||
| Cash at Bank | 20,000 | ||
| 10% Bank Loan as on 1st April, 2018 | 1,50,000 | ||
| Input CGST | 9,000 | ||
| Input SGST | 9,000 | ||
| Output IGST | 15,000 | ||
| Total | 9,69,000 | 9,69,000 | |
| | |||
Adjustments:
(i) Cost of stock on 31st March, 2019 was ₹ 37,000. However, its market value was ₹ 35,000.
(ii) Wages outstanding were ₹ 6,000 and salaries outstanding were ₹ 5,000 on 31st March, 2019.
(iii) Depreciate Land and Building @ 2%, Plant and Machinery @ 10% p.a. and Furniture @ 15% p.a.
(iv) Purchase includes purchase of machinery for ₹ 10,000 on 1st October, 2018.
(v) Debtors include bad debts of ₹ 2,000. Maintain a provision for doubtful debts @ 10% on Debtors.
Answer:
|
Trading Account
for the year ended March 31, 2019
|
||||||
| Dr. |
Cr.
|
|||||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|||
| Opening Stock |
70,000
|
Sales |
4,00,000
|
|
||
| Purchases |
2,60,000
|
|
Less: Returns |
8,000
|
3,92,000
|
|
| Less: Machinery |
10,000
|
|
Closing Stock |
35,000
|
||
| Less: Returns |
7,000
|
2,43,000
|
|
|||
| Carriage |
5,000
|
|
||||
| Wages |
50,000
|
|
|
|||
| Add: Outstanding |
6,000
|
56,000
|
|
|||
| Gross Profit |
53,000
|
|
||||
|
4,27,000
|
|
4,27,000
|
||||
|
Profit & Loss Account
for the year ended March 31, 2019
|
|||||||
| Dr. |
Cr.
|
||||||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
||||
| Interest on Bank Loan |
12,000
|
|
Gross Profit | 53,000 | |||
| Add: Outstanding |
3,000
|
15,000
|
Discount Received |
6,000
|
|||
| Salaries |
45,000
|
|
Old Provision for DD |
13,000
|
|
||
| Add: Outstanding |
5,000
|
50,000
|
Less: Provision for DD |
4,800
|
8,200
|
||
| Advertisement |
15,000
|
Net Loss |
81,500
|
||||
| Commission |
15,000
|
|
|||||
| Discount Allowed |
7,000
|
|
|||||
| Further Bad Debts |
2,000
|
|
|||||
| Rent and Taxes |
13,000
|
|
|||||
| Depreciation on: |
|
|
|||||
| Land & Building |
2,450
|
|
|
||||
| Plant & Machinery |
21,000
|
|
|
||||
| Furniture |
8,250
|
31,700
|
|
||||
|
1,48,700
|
|
1,48,700
|
|||||
|
Balance Sheet
as on March 31, 2019
|
|||||
| Dr. |
Cr.
|
||||
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
||
| Creditors |
28,000
|
Plant &Machinery |
2,05,000
|
|
|
| Wages Outstanding |
6,000
|
Add: Purchases |
10,000
|
|
|
| Capital |
3,50,000
|
|
Less: Depreciation |
21,000
|
1,94,000
|
| Less: Drawings |
15,000
|
|
Furniture |
55,000
|
|
| Less: Net Loss |
81,500
|
2,53,500
|
Less: Depreciation |
8,250
|
46,750
|
| Outstanding Salaries |
5,000
|
Debtors |
50,000
|
|
|
| Bank Loan |
1,50,000
|
|
Less: FBD |
2,000
|
|
| Add: Outstanding Interest |
3,000
|
1,53,000
|
Less: Provision |
4,800
|
43,200
|
|
|
Closing Stock |
35,000
|
|||
|
|
|
Cash at Bank |
20,000
|
||
|
|
Land &Building |
98,000
|
|
||
|
|
Less: Depreciation |
2,450
|
95,550
|
||
|
|
Input SGST |
3,000
|
|||
|
|
Cash in Hand |
8,000
|
|||
|
4,45,500
|
|
4,45,500
|
|||
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