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Page No 20.38:
Question 1:
Following information of an accounting year is given:
Opening Capital ₹ 60,000; Drawings ₹ 5,000; Capital added during the year ₹ 10,000 and Closing Capital ₹ 90,000. Calculate the Profit or Loss for the year.
Answer:
|
Statement of Profit or Loss |
|
|
Particulars |
Amount (Rs) |
|
Capital at the end |
90,000 |
|
Add: Drawings |
5,000 |
|
|
95,000 |
|
Less: Additional Capital Introduced |
(10,000) |
|
Adjusted Capital at the end |
85,000 |
|
Less: Capital in the beginning |
60,000 |
|
Net Profit for the year |
25,000 |
|
|
|
Page No 20.38:
Question 2:
Mayank does not keep proper records of his business, he gives you the following information:
| ₹ | |
| Opening Capital | 1,00,000 |
| Closing Capital | 1,25,000 |
| Drawings during the year | 30,000 |
| Capital added during the year | 37,500 |
Calculate the profit or loss for the year.
Answer:
|
Statement of Profit or Loss |
|
|
Particulars |
Amount (Rs) |
|
Capital at the end |
1,25,000 |
|
Add: Drawings |
30,000 |
|
|
1,55,000 |
|
Less: Additional Capital Introduce |
(37,500) |
|
Adjusted Capital at the end |
1,17,500 |
|
Less: Capital in the beginning |
1,00,000 |
|
Net Profit for the year |
17,500 |
|
|
|
Page No 20.39:
Question 3:
Capital of Ganesh Gupta in the beginning of the year was ₹ 70,000. During the year his business earned a profit of ₹ 20,000, he withdrew ₹ 7,000 for his personal use. He sold ornaments of his wife for ₹ 20,000, and invested that amount into the business. Find out his Capital at the end of the year.
Answer:
|
Capital at the end |
= |
Opening Capital + Additional Capital + Profit − Drawings |
|
= |
70,000 + 20,000 + 20,000 − 7,000 = Rs 1,03,000 |
Page No 20.39:
Question 4:
Vikas maintains his books of account on Single Entry System. He provides following information from his books. Find out additional capital introduced in the business during the year 2018–19.
Opening Capital − ₹ 1,30,000 Drawings during the year ₹ 50,000
Closing Capital − ₹ 2,00,000 Profit made during the year ₹ 1,00,000
Answer:
| Additional Capital | = | Capital at the End + Drawings − (Capital in the Beginning + Profit) |
| = | 2,00,000 + 50,000 − (1,30,000 + 1,00,000) | |
| = | 2,50,000 − 2,30,000 = Rs 20,000 |
Page No 20.39:
Question 5:
Mohan maintains books on Single Entry System. He gives you the following information:
| ₹ | |
| Capital on 1st April, 2018 | 15,200 |
| Capital on 31st March, 2019 | 16,900 |
| Drawings made during the year | 4,800 |
| Capital introduced on 1st August, 2018 | 2,000 |
You are required to calculate the Profit or Loss made by Mohan.
Answer:
|
Statement of Profit or Loss |
|
|
Particulars |
Amount (₹) |
|
Capital as on March 31, 2019 |
16,900 |
|
Add: Drawings |
4,800 |
|
|
21,700 |
|
Less: Addition Capital Introduced |
(2,000) |
|
Adjusted Capital as on March 31, 2019 |
19,700 |
|
Less: Capital as on April 01, 2018 |
(15,200) |
|
Profit made during the year 2018-19 |
4,500 |
|
|
|
Page No 20.39:
Question 6:
Mahesh who keeps his books on Single Entry System sells goods at Cost plus 50%. On 1st April, 2018 his Capital was ₹ 4,00,000 and on 31st March, 2019 it was ₹ 3,50,000. He had withdrawn ₹ 20,000 per month besides goods of the sale value of ₹ 60,000. How much did he earn in 2018-19?
Answer:
|
Statement of Profit/Loss
|
|
|
Particulars
|
Amount
(₹) |
| Closing Capital as on 31st March, 2019 |
3,50,000
|
| Less: Opening Capital as on 1st April, 2018 |
(4,00,000)
|
| Add: Drawings (WN1) |
2,80,000
|
|
Profit for the Year
|
2,30,000
|
Working Notes:
1)
Page No 20.39:
Question 7:
Krishan started his business on 1st April, 2018 with a Capital of ₹ 1,00,000. On 31st March, 2019, his assets were:
| ₹ | |
| Cash | 3,200 |
| Stock | 34,800 |
| Debtors | 31,000 |
| Plant | 85,000 |
He owed ₹ 12,000 to sundry creditors and ₹ 10,000 to his brother on that date. He withdrew ₹ 2,000 per month for his personal expenses. Ascertain his profit.
Answer:
|
Statement of Affairs as on March 31, 2019 |
|||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Sundry Creditors |
12,000 |
Cash |
3,200 |
|
Brother’s Loan |
10,000 |
Stock |
34,800 |
|
Capital (Balancing Figure) |
1,32,000 |
Debtors |
31,000 |
|
|
|
Plant |
85,000 |
|
|
|
|
|
|
|
1,54,000 |
|
1,54,000 |
|
|
|
|
|
|
Statement of Profit or Loss for the year end March 31, 2019 |
|
|
Particulars |
Amount (₹) |
|
Capital as on March 31, 2019 |
1,32,000 |
|
Add: Drawings (Rs 2,000 × 12) |
24,000 |
|
|
1,56,000 |
|
Less: Capital as on April 01, 2018 |
(1,00,000) |
|
Profit made during the year 2018-2019 |
56,000 |
|
|
|
Page No 20.39:
Question 8:
Ram Prashad keeps his books on Single Entry System and from them and the particulars supplied, the following figures were gathered together on 31st March, 2019:
Book Debts ₹ 10,000; Cash in Hand ₹ 510; Stock-in-Trade (estimated) ₹ 6,000; Furniture and Fittings ₹ 1,200; Trade Creditors ₹ 4,000; Bank Overdraft ₹ 1,000; Ram Prashad stated that he started business on 1st April, 2018 with cash ₹ 6000 paid into bank but stocks valued at ₹ 4,000. During the year he estimated his drawings to be ₹ 2,400. You are required to prepare the statement, showing the profit for the year, after writing off 10% for Depreciation on Furniture and Fittings.
Answer:
|
Books of Ram Prashad Statement of Affairs as on March 31, 2019 |
||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
|
Trade Creditors |
4,000 |
Book Debts |
10,000 |
|
|
Bank Overdraft |
1,000 |
Cash in Hand |
510 |
|
|
Capital (Balancing Figure) |
12,590 |
Stock |
6,000 |
|
|
|
|
Furniture and Fittings |
1,200 |
|
|
|
|
Less: 10% Depreciation |
120 |
1,080 |
|
|
|
|
|
|
|
|
17,590 |
|
17,590 |
|
|
|
|
|
|
|
|
Statement of Affairs as on April 01, 2018 |
|||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Capital (Balancing Figure) |
10,000 |
Bank |
6,000 |
|
|
|
Stock |
4,000 |
|
|
|
|
|
|
|
10,000 |
|
10,000 |
|
|
|
|
|
|
Statement of Profit or Loss for the year and March 31, 2019 |
|
|
Particulars |
Amount (₹) |
|
Capital as on March 31, 2019 |
12,590 |
|
Add: Drawings |
2,400 |
|
|
14,990 |
|
Less: Capital as on April 01, 2018 |
(10,000) |
|
Profit made during the year 2018-19 |
4,990 |
|
|
|
Page No 20.40:
Question 9:
Shruti maintains her books of account from Incomplete Records. Her books provide the following information:
|
|
1st April, 2015 (₹) |
31st March, 2016
(₹) |
|
| Cash |
1,200
|
1,600
|
|
| Bills Receivable |
…
|
2,400
|
|
| Debtors |
16,800
|
27,200
|
|
| Stock |
22,400
|
24,400
|
|
| Investments |
…
|
8,000
|
|
| Furniture |
7,500
|
8,000
|
|
| Creditors |
14,900
|
11,600
|
|
She withdrew ₹ 500 per month for personal expenses. She sold her Investments of ₹ 16,000 at 5% premium and introduced the amount into business.
You are required to prepare a Statement of Profit or Loss for the year ending 31st March, 2016.
Answer:
|
Statement of Profit/Loss
|
|
|
Particulars
|
Amount
(₹)
|
| Closing Capital |
60,000
|
| Less: Opening Capital |
(33,000)
|
| Less: Additional Capital |
(16,800)
|
| Add: Drawings |
6,000
|
| Profit for the Year |
16,200
|
Working Notes:
|
Opening Statement of Affairs
as on April 01, 2015
|
|||
| Dr. |
Cr.
|
||
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
| Creditors |
14,900
|
Cash |
1,200
|
| Capital (Bal. Fig.) |
33,000
|
Debtors |
16,800
|
|
|
Stock |
22,400
|
|
|
|
Furniture |
7,500
|
|
|
|
|
||
|
|
|
||
|
47,900
|
47,900
|
||
|
Closing Statement of Affairs
|
|||
| Dr. |
Cr.
|
||
|
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
| Creditors |
11,600
|
Cash |
1,600
|
| Capital (Bal. Fig.) |
60,000
|
Bills Receivable |
2,400
|
|
|
Debtors |
27,200
|
|
|
|
Stock |
24,400
|
|
|
|
Investments |
8,000
|
|
|
|
Furniture |
8,000
|
|
|
71,600
|
71,600
|
||
Page No 20.40:
Question 10:
Hari maintains his books of account on Single Entry System. His books provide the following information:
| 1st April, 2018 (₹) |
31st March, 2019
(₹) |
||
| Furniture |
2,000
|
2,000
|
|
| Stock |
28,000
|
30,500
|
|
| Sundry Debtors |
21,000
|
34,000
|
|
| Cash |
1,500
|
2,000
|
|
| Sundry Creditors |
17,500
|
19,000
|
|
| Bills Receivable |
...
|
3,000
|
|
| Loan | ... | 5,000 | |
| Investments |
...
|
10,000
|
|
His drawings during the year were ₹ 5,000 Depreciate furniture by 10% and provide a reserve for Bad and Doubtful Debts at 10% on Sundry Debtors.
Prepare the statement showing the profits for the year.
Answer:
|
Statements of Affairs as on April 01, 2018 |
|||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Sundry Creditors |
17,500 |
Furniture |
2,000 |
|
Capital (Balancing Figure) |
35,000 |
Stock |
28,000 |
|
|
|
Sundry Debtors |
21,000 |
|
|
|
Cash |
1,500 |
|
|
|
|
|
|
|
52,500 |
|
52,500 |
|
|
|
|
|
|
Statement of Affairs as on March 31, 2019 |
||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
|
Sundry Creditors |
19,000 |
Furniture |
2,000 |
|
|
Loan |
5,000 |
Less: 10% Depreciation |
(200) |
1,800 |
|
Capital (Balancing Figure) |
53,900 |
Stock |
30,500 |
|
|
|
|
Sundry Debtors |
34,000 |
|
|
|
|
Less: 10% Reserve for Doubtful Debts |
(3,400) |
30,600 |
|
|
|
Cash |
2,000 |
|
|
|
|
Bills Receivables |
3,000 |
|
|
|
|
Investments |
10,000 |
|
|
|
|
|
|
|
|
|
77,900 |
|
77,900 |
|
|
|
|
|
|
|
|
Statement of Profit or Loss for the year ended March 31, 2019 |
|
|
Particulars |
Amount (₹) |
|
Capital as on March 31, 2019 |
53,900 |
|
Add: Drawings |
5,000 |
|
|
58,900 |
|
Less: Capital as on April 01, 2018 |
(35,000) |
|
Profit made during the year 2018-19 |
23,900 |
|
|
|
Page No 20.40:
Question 11:
A commenced business on 1st April, 2018 with a capital of ₹ 10,000. He immediately bought Furniture and Fixtures for ₹ 2,000. On 1st October, 2018, he borrowed ₹ 5,000 from his wife @ 9% p.a. (interest not yet paid) and introduced a further capital of his own amounting to ₹ 1,500. A drew @ ₹ 300 per month at the end of each month for household expenses. On 31st March, 2019 his position was as follows:
Cash in Hand ₹ 2,800; Sundry Debtors ₹ 4,800; Stock ₹ 6,800; Bills Receivable ₹ 1,600; Sundry Creditors ₹ 500 and owing for Rent ₹ 150. Furniture and Fixtures to be depreciated by 10%.
Ascertain the profit or loss made by A during 2018–19.
Answer:
|
Statement of Affairs as on March 31, 2019 |
|||||
|
Liabilities |
Amount ₹ |
Assets |
Amount ₹ |
||
|
Wife’s Loan |
5,000 |
|
Furniture and Fixture |
2,000 |
|
|
Add: Outstanding Interest |
|
Less: 10% Depreciation |
(200) |
1,800 |
|
|
(5,000 × 9% × 6/12) |
225 |
5,225 |
Cash in Hand |
2,800 |
|
|
Sundry Creditors |
500 |
Sundry Debtors |
4,800 |
||
|
Rent Outstanding |
150 |
Stock |
6,800 |
||
|
Capital (Balancing Figure) |
11,925 |
Bills Receivable |
1,600 |
||
|
|
|
|
|
||
|
|
17,800 |
|
17,800 |
||
|
|
|
|
|
||
|
Statement of Profit or Loss for the year ended March 31, 2019 |
|
|
Particulars |
Amount ₹ |
|
Capital as on March 31, 2019 |
11,925 |
|
Add: Drawings (Rs 1,200 × 3) |
3,600 |
|
|
15,525 |
|
Less: Additional Capital Introduced |
(1,500) |
|
Adjusted Capital as on March 31, 2019 |
14,025 |
|
Less: Capital as on April 01, 2018 |
(10,000) |
|
Profit made during the year 2018-19 |
4,025 |
|
|
|
Page No 20.40:
Question 12:
Kuldeep, a general merchant, keeps his accounts on Single Entry System. He wants to know the results of his business on 31st March, 2019 and for that following information is available:
| 1st April, 2018 (₹) |
31st March, 2019
(₹) |
||
| Cash in Hand |
1,50,000
|
1,75,000 | |
| Bank Balance |
7,50,000
|
8,00,000
|
|
| Furniture |
1,00,000
|
1,00,000
|
|
| Stock |
5,00,000
|
6,50,000
|
|
| Creditors |
3,50,000
|
4,00,000
|
|
| Debtors |
2,50,000
|
3,00,000
|
|
During the year, he had withdrawn ₹ 5,00,000 for his personal use and invested ₹ 2,50,000 as additional capital. Calculate his profits on 31st March, 2019 and prepare the Statement of Affairs as on that date.
Answer:
|
Statement of Affairs as on April 01, 2018 |
|||
|
Liabilities |
Amount ₹ |
Assets |
Amount ₹ |
|
Creditors |
3,50,000 |
Cash in Hand |
1,50,000 |
|
Capital (Balancing Figure) |
14,00,000 |
Bank Balance |
7,50,000 |
|
|
|
Furniture |
1,00,000 |
|
|
|
Stock |
5,00,000 |
|
|
|
Debtors |
2,50,000 |
|
|
17,50,000 |
|
17,50,000 |
|
|
|
|
|
|
Statement of Affairs as on March 31, 2019 |
|||
|
Liabilities |
Amount ₹ |
Assets |
Amount ₹ |
|
Creditors |
4,00,000 |
Cash in Hand |
1,75,000 |
|
Capital (Balancing Figure) |
16,25,000 |
Bank Balance |
8,00,000 |
|
|
|
Furniture |
1,00,000 |
|
|
|
Stock |
6,50,000 |
|
|
|
Debtors |
3,00,000 |
|
|
20,25,000 |
|
20,25,000 |
|
|
|
|
|
|
Statement of Profit or Loss for the year ended March 31, 2019 |
|
|
Particulars |
Amount ₹ |
|
Capital as on March 31, 2019 |
16,25,000 |
|
Add: Drawings |
5,00,000 |
|
|
21,25,000 |
|
Less: Additional Capital Introduced |
(2,50,000) |
|
Adjusted Capital as on March 31, 2019 |
18,75,000 |
|
Less: Capital as on April 01, 2018 |
(14,00,000) |
|
Profit made during the year 2018-19 |
4,75,000 |
|
|
|
Page No 20.41:
Question 13:
Following information is supplied to you by a shopkeeper:
| 1st April, 2018 (₹) |
31st March, 2019
(₹) |
||
| Cash |
6,000
|
7,000 | |
| Sundry Debtors |
68,000
|
64,000
|
|
| Stock |
59,000
|
87,000
|
|
| Furniture |
15,000
|
13,500
|
|
| Sundry Creditors |
20,000
|
18,000
|
|
| Bills Payable |
15,000
|
11,000
|
|
During the year, he withdrew ₹ 2,500 per month for domestic purposes. He also borrowed from a friend at 9% a sum of ₹ 20,000 on 1st October, 2018. He has not yet paid the interest. A provision of 5% on debtors for doubtful debts is to be made.
Ascertain the profit or loss made by him during the period.
Answer:
|
Statement of Affairs as on April 01, 2018 |
|||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Sundry Creditors |
20,000 |
Cash |
6,000 |
|
Bills Payable |
15,000 |
Sundry Debtors |
68,000 |
|
|
|
Stock |
59,000 |
|
Capital (Balancing Figure) |
1,13,000 |
Furniture |
15,000 |
|
|
|
|
|
|
|
1,48,000 |
|
1,48,000 |
|
|
|
|
|
|
Statement of Affairs as on March 31, 2019 |
|||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Sundry Creditors |
18,000 |
Cash |
7,000 |
||
|
Bills Payable |
11,000 |
Stock |
87,000 |
||
|
9% Loan from Friend |
20,000 |
|
Furniture |
13,500 |
|
|
Add: Interest Outstanding (2,000 × 9% × 6/12) |
900 |
20,900 |
|
|
|
|
Capital (Balancing Figure) |
1,18,400 |
|
|
||
|
|
|
Sundry Debtors |
64,000 |
|
|
|
|
|
Less: 5% Provision for Doubtful Debts |
(3,200) |
60,800 |
|
|
|
|
|
|
||
|
|
1,68,300 |
|
1,68,300 |
||
|
|
|
|
|
||
|
Statement of Profit or Loss for the year ended March 31, 2019 |
|
|
Particulars |
Amount (₹) |
|
Capital as on March 31, 2019 |
1,18,400 |
|
Add: Drawings (Rs 250 × 12) |
30,000 |
|
|
1,48,400 |
|
Less: Capital as on April 01, 2018 |
(1,13,000) |
|
Profit made during the year 2018-19 |
35,400 |
|
|
|
Page No 20.41:
Question 14:
Vikas is keeping his accounts according to Single Entry System. His capital on 31st December, 2015 was ₹ 2,50,000 and his capital on 31st December, 2016 was ₹ 4,25,000. He further informs you that during the year he gave a loan of ₹ 30,000 to his brother on private account and withdrew ₹ 1,000 per month for personal purposes. He used a flat for his personal purpose, the rent of which @ ₹ 1,800 per month and electricity charges at an average of 10% of rent per month were paid from the business account. During the year he sold his 7% Government Bonds of ₹ 50,000 at 1% premium and brought that money into the business.
Prepare a Statement of Profit or Loss for the year ended 31st December, 2016.
Answer:
|
Statement of Profit/Loss
|
|
|
Particulars
|
Amount
(₹)
|
| Closing Capital |
4,25,000
|
| Less: Opening Capital |
(2,50,000)
|
| Less: Additional Capital |
(50,500)
|
| Add: Drawings |
65,760
|
| Profit for the Year |
1,90,260
|
Note: Drawings include loan to brother, withdrawals in cash, rent and electricity charges.
Page No 20.41:
Question 15:
Manu started business with a capital of ₹ 4,00,000 on 1st October, 2005. He borrowed from his friend a sum of ₹ 1,00,000. He brought further ₹ 75,000 as capital on 31st March, 2006, his position was:
Cash: ₹ 30,000; Stock: ₹ 4,70,000; Debtors: ₹ 3,50,000 and Creditors: ₹ 3,00,000.
He withdrew ₹ 8,000 per month during this period. Calculate profit on loss for the period.
Answer:
|
Statement of Affairs for the year ending March 31, 2006 |
|||
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Creditors |
3,00,000 |
Cash |
30,000 |
|
Loan from Friend |
1,00,000 |
Stock |
4,70,000 |
|
|
|
Debtors |
3,50,000 |
|
Capital |
4,50,000 |
|
|
|
(Balancing Figure) |
|
|
|
|
|
8,50,000 |
|
8,50,000 |
|
|
|
|
|
|
Statement of Profit and Loss for the year ending March 31, 2006 |
|
|
Particulars |
Amount Rs |
|
Capital as on March 31, 2006 |
4,50,000 |
|
Add: Drawings (8,000 × 6) |
48,000 |
|
|
4,98,000 |
|
Less: Additional Capital Introduced |
(75,000) |
|
Adjusted Capital as on March 31, 2006 |
4,23,000 |
|
Less: Capital as on Oct.01, 2005 |
(4,00,000) |
|
Profit made during the year 2005-06 |
23,000 |
|
|
|
Page No 20.41:
Question 16:
From the following information relating to the business of Abhay who keeps books on Single Entry System, ascertain the profit or loss for the year 2018–19:
| 1st April, 2018 (₹) |
31st March, 2019
(₹) |
||
| Machinery |
8,000
|
8,000 | |
| Furniture |
2,000
|
2,000
|
|
| Stock |
7,000
|
5,000
|
|
| Sundry Debtors |
4,000
|
4,500
|
|
| Bank Balance |
200 (Cr.)
|
1,800 (Dr.)
|
|
| Sundry Creditors |
5,000
|
3,500
|
|
Abhay withdrew ₹ 4,100 during the year to meet his household expenses. He introduced ₹ 300 as fresh capital on 15th January, 2019. Machinery and Furniture are to be depreciated at 10% and 5% p.a. respectively.
Answer:
|
Statement of Affairs as on April 01, 2018 |
|||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Bank Overdraft |
200 |
Machinery |
8,000 |
|
Sundry Creditors |
5,000 |
Furniture |
2,000 |
|
Capital (Balancing Figure) |
15,800 |
Stock |
7,000 |
|
|
|
Sundry Debtors |
4,000 |
|
|
|
|
|
|
|
21,000 |
|
21,000 |
|
|
|
|
|
|
Statement of Affairs as on March 31, 2019 |
||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
|
Sundry Creditors |
3,500 |
Machinery |
8,000 |
|
|
Capital (Balancing Figure) |
16,900 |
Less: 10% Depreciation |
(800) |
7,200 |
|
|
|
Furniture |
2,000 |
|
|
|
|
Less: 5% Depreciation |
(100) |
1,900 |
|
|
|
Stock |
5,000 |
|
|
|
|
Sundry Debtors |
4,500 |
|
|
|
|
Bank Balance |
1,800 |
|
|
|
|
|
|
|
|
|
20,400 |
|
20,400 |
|
|
|
|
|
|
|
|
Statement of Profit or Loss for the year ended March 31, 2019 |
|
|
Particulars |
Amount (₹) |
|
Capital as on March 31, 2019 |
16,900 |
|
Add: Drawings |
4,100 |
|
|
21,000 |
|
Less: Additional Capital Introduced |
(300) |
|
Adjusted Capital as on March 31, 2019 |
20,700 |
|
Less: Capital as on April 01, 2018 |
(15,800) |
|
Profit made during the year 2018-19 |
4,900 |
|
|
|
Page No 20.42:
Question 17:
Aditya a retailer, has not maintained proper books of account but it has been possible to obtain the following details:
|
|
Last Year (₹) |
This Year
(₹) |
|
| Trade Creditors |
6,270
|
5,890 | |
| Loan from Naresh |
5,000
|
5,000
|
|
| Stock |
12,350
|
11,980
|
|
| Cash in Hand |
570
|
650
|
|
| Shop Fittings |
7,250
|
7,800
|
|
| Trade Debtors | 5,280 | 4,560 | |
| Bank Balance |
3,990
|
4,130
|
|
Calculate the net profit for this year and draft the Statement of Affairs at the end of the year after noting that:
(a) Shop Fittings are to be depreciated by ₹ 780.
(b) Aditya has drawn ₹ 100 per week for his own use.
(c) Included in the Trade Debtors is an irrecoverable balance of ₹ 270.
(d) Interest at 5% p.a. is due on the loan from Naresh but has not been paid for the year.
Answer:
|
In the books of Aditya (Previous Year) |
|||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Trade Creditors |
6,270 |
Stock |
12,350 |
|
Loan from Naresh |
5,000 |
Cash in Hand |
570 |
|
Capital (Balancing Figure) |
18,170 |
Shop Fittings |
7,250 |
|
|
|
Trade Debtors |
5,280 |
|
|
|
Bank Balance |
3,990 |
|
|
29,440 |
|
29,440 |
|
|
|
|
|
|
Statement of Affairs (Current Year) |
|||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Trade Creditors |
5,890 |
Stock |
11,980 |
||
|
Loan from Naresh |
5,000 |
|
Cash in Hand |
650 |
|
|
Add: Outstanding Interest |
|
|
|
||
|
(5,000 × 5%) |
250 |
5,250 |
Shop Fittings |
7,800 |
|
|
Capital (Balancing Figure) |
16,930 |
Less: Depreciation |
(780) |
7,020 |
|
|
|
|
Trade Debtors |
4,560 |
|
|
|
|
|
Less: Bad Debts |
(270) |
4,290 |
|
|
|
|
Bank Balance |
4,130 |
||
|
|
|
|
|
||
|
|
28,070 |
|
28,070 |
||
|
|
|
|
|
||
|
Statement of Profit or Loss (Current Year) |
|
|
Particulars |
Amount (Rs) |
|
Capital of the Current Year |
16,930 |
|
Add: Drawings (Rs 100 × 52) |
5,200 |
|
|
22,130 |
|
Less: Capital of the Previous Year |
(18,170) |
|
Profit made during the Current Year |
3,960 |
|
|
|
Page No 20.42:
Question 18:
On 1st April, 2018, X started a business with ₹ 40,000 as his capital. On 31st March, 2019, his position was as follows:
|
|
(₹) |
|
| Creditors | 30,000 | |
| Bills Payable |
10,000
|
|
| Bank |
10,000
|
|
| Debtors |
50,000
|
|
| Stock |
40,000
|
|
| Plant | 68,000 | |
| Furniture |
12,000
|
|
During the year 2018–19, X drew ₹ 24,000. On 1st October, 2018, he introduced further capital amounting to ₹ 30,000. You are required to ascertain profit or loss made by him during the year 2018–19.
Adjustments:
(a) Plant is to be depreciated at 10%.
(b) A provision of 5% is to be made against debtors.
Also prepare the Statement of Affairs as on 31st March, 2019.
Answer:
|
Statement of Affairs for the year ended March 31, 2019 |
||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
|
Creditors |
30,000 |
Bank |
10,000 |
|
|
Bills Payable |
10,000 |
Debtors |
50,000 |
|
|
Capital (Balancing Figure) |
1,30,700 |
Less: 5% Provision for Doubtful Debts |
(2,500) |
47,500 |
|
|
|
Stock |
40,000 |
|
|
|
|
Plant |
68,000 |
|
|
|
|
Less: 10% Depreciation |
(6,800) |
61,200 |
|
|
|
Furniture |
12,000 |
|
|
|
|
|
|
|
|
|
1,70,700 |
|
1,70,700 |
|
|
|
|
|
|
|
|
Statement of Profit or Loss for the year ended March 31, 2019 |
|
|
Particulars |
Amount (₹) |
|
Capital as on March 31, 2019 |
1,30,700 |
|
Add: Drawings |
24,000 |
|
|
1,54,700 |
|
Less: Additional Capital Introduced |
(30,000) |
|
Adjusted Capital as on March 31, 2019 |
1,24,700 |
|
Less: Capital as on April 01, 2018 |
(40,000) |
|
Profit made during the year 2018-19 |
84,700 |
|
|
|
Page No 20.42:
Question 19:
Chaman maintains his books according to Single Entry System. Following figures were available from the books for the six months ended 31st December 2018:
|
|
1st July, 2018 |
31st December, 2018 |
|
Plant and Machinery |
1,50,000 |
1,40,000 |
|
Debtors |
65,000 |
60,000 |
|
Cash and Bank balances |
25,000 |
31,000 |
|
Stock |
40,000 |
45,000 |
|
Creditors |
9,000 |
10,000 |
Adjustments:
(a) He had withdrawn ₹ 200 in the beginning of every month for household purposes.
(b) Depreciation on Plant and Machinery @ 10% p.a.
(c) Further Bad Debts ₹ 5,000 and Provision for Doubtful Debts to be created @ 2%.
(d) During the period, salaries have been prepaid by ₹ 500 while wages outstanding were ₹ 1,000.
(e) Interest on drawings to be reckoned @ 6% p.a.
You are required to prepare the Statement of Profit or Loss for the half year ended 31st December, 2018, followed by Revised Statement of Affairs as on that date.
Answer:
|
Statement of Affairs as on July 01,2018 |
|||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Creditors |
9,000 |
Cash and Bank balances |
25,000 |
|
Capital (Balancing Figure) |
2,71,000 |
Debtors |
65,000 |
|
|
|
Stock |
40,000 |
|
|
|
Plant and Machinery |
1,50,000 |
|
|
|
|
|
|
|
2,80,000 |
|
2,80,000 |
|
|
|
|
|
|
Statement of Affairs as on December 31,2018 |
|||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Creditors |
10,000 |
Cash and Bank balances |
31,000 |
|
Outstanding Wages |
1,000 |
Debtors |
60,000 |
|
Capital (Balancing Figure) |
2,65,500 |
Stock |
45,000 |
|
|
|
Prepaid Salary |
500 |
|
|
|
Plant and Machinery |
1,40,000 |
|
|
2,76,500 |
|
2,76,500 |
|
|
|
|
|
|
Statement of Profit or Loss for the half year ended December 31,2018 |
||
|
Particulars |
Amount (₹) |
|
|
Capital at the end of the year |
2,65,500 |
|
|
|
Add: Drawings made during the year |
1,200 |
|
Adjusted capital at the end of the year |
2,66,700 |
|
|
|
Less: Capital in the beginning of the year |
2,71,000 |
|
Gross Loss (Profit before Adjustment) |
4,300 |
|
|
Less: Interest on Drawings |
21 |
|
|
Add: Depreciation on Plant and Machinery |
7,000 |
|
|
Bad Debts |
5,000 |
|
|
Provision for Doubtful Debts |
1,100 |
|
|
Net Loss (Profit After Adjustment) |
17,379 |
|
|
|
||
|
Statement of Affairs (After adjustments) as on December 31, 2018 |
|||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Creditors |
10,000 |
Cash and Bank balances |
31,000 |
||
|
Outstanding Wages |
1,000 |
Debtors |
60,000 |
|
|
|
Capital |
2,71,000 |
|
Less: Bad Debts |
5,000 |
|
|
Less: Net Loss |
17,379 |
|
|
55,000 |
|
|
Less: Drawings |
1,200 |
|
Less: Provision for D.D. |
1,100 |
53,900 |
|
Less: Interest on Drawings |
21 |
2,52,400 |
Plant and Machinery |
1,40,000 |
|
|
|
|
Less: Depreciation |
7,000 |
1,33,000 |
|
|
|
|
Stock |
45,000 |
||
|
|
|
Prepaid Salary |
500 |
||
|
|
2,63,400 |
|
2,63,400 |
||
|
|
|
|
|
||
Working Notes:
WN1: Depreciation on plant and machinery would be charged for six months only i.e., Rs 7,000
WN2: Amount of Provision for Doubtful Debts would be Rs 1,100
WN3:
Calculation of Amount of Interest on Drawings:
|
Date |
Amount |
Months |
Product |
|
Jul. 01 |
200 |
6 |
1,200 |
|
Aug. 01 |
200 |
5 |
1,000 |
|
Sep. 01 |
200 |
4 |
800 |
|
Oct. 01 |
200 |
3 |
600 |
|
Nov. 01 |
200 |
2 |
400 |
|
Dec. 01 |
200 |
1 |
200 |
|
Total |
|
|
4,200 |
Interest on Drawings
Page No 20.43:
Question 20:
A firm sells goods at a Gross profit of 25% of sales. On 1st April, 2018 the Stock was ₹ 40,000; Purchases were ₹ 1,10,000 and the Stock on 31st March, 2019 was ₹ 30,000. What was the value of Sales?
Answer:
Cost of Goods Sold = Net Sales – Gross Profit
Cost of Goods Sold = Opening Stock + Purchases – Closing Stock
Cost of Goods Sold = 40,000 + 1,10,000 – 30,000 = ₹ 1,20,000
Gross Profit = 25% of Sales or 33.33% of COGS
Gross Profit = ₹ 40,000
Net Sales = Cost of Goods Sold + Gross Profit
Net Sales = 1,20,000 + 40,000 = ₹ 1,60,000
Page No 20.43:
Question 21:
A firm sells goods at Cost plus 25%. Sales to credit customers (3/4 of total) was ₹ 1,80,000. His Opening and Closing Stocks were ₹ 20,000 and ₹ 15,000 respectively. Find out the value of Purchases.
Answer:
Credit Sales = ₹ 1,80,000 (3/4 of Total Sales)
Total Sales = ₹ 2,40,000
Gross Profit = 25% of Cost or 20% of Sales
Gross Profit = ₹ 48,000
Cost of Goods Sold = Net Sales – Gross Profit
Cost of Goods Sold = 2,40,000 – 48,000 = ₹ 1,92,000
Cost of Goods Sold = Opening Stock + Purchases – Closing Stock
1,92,000 = 20,000 + Purchases – 15,000
Purchases = ₹ 1,87,000
Page No 20.43:
Question 22:
Calculate Stock in the beginning:
| ₹ | |
| Sales | 80,000 |
| Purchases | 60,000 |
| Stock at the end | 8,000 |
| Loss on Cost | 1/6 |
Answer:
Let cost be Rs 100
Loss = ₹ 16.67 (1/6 of 100)
Sale = ₹ 83.33 (100 – 16.67)
% Loss on Sale = 20% (16.67/83.33)
Loss on Sale = ₹ 16,000 (20% of 80,000)
Cost of Goods Sold = Net Sales + Loss on Sale
Cost of Goods Sold = 80,000 + 16,000 = ₹ 96,000
Cost of Goods Sold = Opening Stock + Purchases – Closing Stock
96,000 = Opening Stock + 60,000 – 8,000
Opening Stock = ₹ 44,000
Page No 20.43:
Question 23:
Calculate the Stock at the end:
| ₹ | |
| Stock in the beginning | 20,000 |
| Cash Sales | 60,000 |
| Credit Sales | 40,000 |
| Purchases | 70,000 |
| Rate of Gross Profit on Cost | 1/3 |
Answer:
Rate of Gross Profit on Cost = 1/3
Rate of Gross Profit on Sale = 1/4
Total Sales = Cash Sales + Credit Sales
Total Sales = 60,000 + 40,000 = 1,00,000
Gross Profit = ₹ 25,000 (1/4 of 1,00,000)
Cost of Goods Sold = Net Sales – Gross Profit
Cost of Goods Sold = 1,00,000 – 25,000 = ₹ 75,000
Cost of Goods Sold = Opening Stock + Purchases – Closing Stock
75,000 = 20,000 + 70,000 – Closing Stock
Closing Stock = ₹ 15,000
Page No 20.44:
Question 24:
Calculate the value of Closing Stock from the following information:
| ₹ | |
| Purchases | 93,000 |
| Wages | 20,000 |
| Sales | 1,20,000 |
| Carriage Outwards | 3,200 |
| Opening Stock | 16,000 |
| Rate of Gross Profit 25% on Cost. |
Answer:
Rate of Gross Profit on Cost = 1/4
Rate of Gross Profit on Sale = 1/5
Gross Profit = ₹ 24,000 (1/5 of 1,20,000)
Cost of Goods Sold = Net Sales – Gross Profit
Cost of Goods Sold = 1,20,000 – 24,000 = ₹ 96,000
Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses – Closing Stock
96,000 = 16,000 + 93,000 + 20,000 – Closing Stock
Closing Stock = ₹ 33,000
Page No 20.44:
Question 25:
Calculate Purchases:
| ₹ | |
| Cost of Goods Sold | 65,000 |
| Stock in the beginning | 4,000 |
| Closing Stock | 5,000 |
Answer:
Cost of Goods Sold = Opening Stock + Purchases – Closing Stock
65,000 = 4,000 + Purchases – 5,000
Purchases = ₹ 66,000
Page No 20.44:
Question 26:
Calculate Sales:
| Cost of goods sold | ₹ 2,00,000 |
| Rate of Gross Profit 20% on Sales |
Answer:
Rate of Gross Profit on Sale = 1/5
Rate of Gross Profit on Cost = 1/4
Gross Profit = ₹ 50,000 (1/4 of 2,00,000)
Sales = Cost of Goods Sold + Gross Profit
Sales = 2,00,000 + 50,000 = ₹ 2,50,000
Page No 20.44:
Question 27:
Debtors in the beginning of the year were ₹ 30,000, Sales on credit during the year were ₹ 75,000, Cash received from the Debtors during the year was ₹ 35,000, Returns Inward (regarding credit sales) were ₹ 5,000 and Bills Receivable drawn during the year were ₹ 25,000. Find the balance of Debtors at th end of the year, assuming that there were Bad Debts during the year of ₹ 2,000.
Answer:
|
Debtors Account
|
|||
| Dr. |
Cr.
|
||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
| Balance b/d |
30,000
|
Cash A/c |
35,000
|
| Sales A/c |
75,000
|
Sales Return A/c |
5,000
|
|
|
Bill Receivable A/c |
25,000
|
|
|
|
Bad-Debts A/c |
2,000
|
|
|
|
Balance c/d |
38,000
|
|
|
|
|
||
|
1,05,000
|
1,05,000
|
||
Page No 20.44:
Question 28:
Creditors on 1st April, 2018 were ₹ 15,000, Purchases on credit were ₹ 30,000, Cash paid to Creditors during 2018-19 was ₹ 20,000, Returns Outward (regarding credit purchases) were ₹ 1,000 and Bills Payable accepted during the year were ₹ 10,000. Find the balance of Creditors on 31st March, 2019.
Answer:
|
Creditors Account
|
|||
| Dr. |
Cr.
|
||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
| Cash A/c |
20,000
|
Balance b/d |
15,000
|
| Purchases Return A/c |
1,000
|
Purchases A/c |
30,000
|
| Bills Payable A/c |
10,000
|
|
|
| Balance c/d |
14,000
|
|
|
|
|
|
||
|
45,000
|
45,000
|
||
Page No 20.44:
Question 29:
Following information is given of an accounting year:
Opening Creditors ₹ 15,000; Cash paid to creditors ₹ 15,000; Returns Outward ₹ 1,000 and Closing creditors ₹ 12,000.
Calculate Credit Purchases during the year.
Answer:
|
Creditors Account
|
|||
| Dr. |
Cr.
|
||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
| Cash A/c |
15,000
|
Balance b/d |
15,000
|
| Purchases Return A/c |
1,000
|
Purchases A/c |
13,000
|
| Balance c/d |
12,000
|
|
|
|
|
|
||
|
28,000
|
28,000
|
||
Page No 20.44:
Question 30:
From the following information supplied by Rohit, who keeps his books on Single Entry System, you are required to calculate Total Purchases:
| ₹ | |
| Opening balance of Bills Payable | 5,000 |
| Opening balance of Creditors | 6,000 |
| Closing balance of Bills Payable | 7,000 |
| Closing balance of Creditors | 4,000 |
| Cash paid to Creditors during the year | 30,200 |
| Bills Payable discharged during the year | 8,900 |
| Returns Outward | 1,200 |
| Cash Purchases | 25,800 |
Answer:
|
Creditors Account
|
|||
| Dr. |
Cr.
|
||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
| Cash A/c |
30,200
|
Balance b/d |
6,000
|
| Purchases Return A/c |
1,200
|
Purchases A/c |
40,300
|
| Bills Payable A/c |
10,900
|
|
|
| Balance c/d |
4,000
|
|
|
|
|
|
||
|
46,300
|
46,300
|
||
Total Purchases = Cash Purchases + Credit Purchases
Total Purchases = 25,800 + 40,300 = ₹ 66,100
Page No 20.44:
Question 31:
Cash sales of a business in a year were ₹ 85,000, the Cost of Goods Sold (including direct expenses) was ₹ 97,000 and Gross Profit as shown by the Trading Account for the year was ₹ 1,29,000. Calculate Credit Sales during the year.
Answer:
Gross Profit = Net Sales – Cost of Goods Sold
1,29,000 = Net Sales – 97,000
Net Sales = ₹ 2,26,000
Credit Sales = Total Net Sales – Cash Sales
Credit Sales = 2,26,000 – 85,000 = ₹ 1,41,000
Page No 20.45:
Question 32:
From the following information, calculate Total Sales made during the period:
| ₹ | |
| Debtors as on 1st April, 2018 | 20,400 |
| Cash received from debtors during the year (as per Cash Book) | 60,800 |
| Returns Inward | 5,400 |
| Bad Debts | 2,400 |
| Debtors as on 31st March, 2019 | 27,600 |
| Cash Sales (as per Cash Book) | 56,800 |
Answer:
|
Debtors Account
|
|||
| Dr. |
Cr.
|
||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
| Balance b/d |
20,400
|
Cash A/c |
60,800
|
| Sales A/c |
75,800
|
Sales Return A/c |
5,400
|
|
|
Bad-Debts A/c |
2,400
|
|
|
|
Balance c/d |
27,600
|
|
|
|
|
||
|
96,200
|
96,200
|
||
Total Sales = Cash Sales + Credit Sales
Total Sales = 56,800 + 75,800 = ₹ 1,32,600
Page No 20.45:
Question 33:
Calculate Total Sales from the following information:
| ₹ | |
| Bills Receivables as on 1st April, 2018 | 7,800 |
| Debtors as on 1st April, 2018 | 30,800 |
| Cash received on maturity of Bills Receivable during the year | 20,900 |
| Cash received from Debtors | 70,000 |
| Bad Debts written off | 4,800 |
| Returns Inward | 8,700 |
| Bills Receivable dishonoured | 1,800 |
| Bills Receivable on 31st March, 2019 | 6,000 |
| Debtors as on 31st March, 2019 | 25,500 |
| Cash Sales during the year | 15,900 |
Answer:
|
Debtors Account
|
|||
| Dr. |
Cr.
|
||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
| Balance b/d |
30,800
|
Cash A/c |
70,000
|
| Bill Receivable A/c |
1,800
|
Sales Return A/c |
8,700
|
| Sales A/c |
97,300
|
Bad-Debts A/c |
4,800
|
|
|
Bill Receivable A/c |
20,900
|
|
|
|
Balance c/d |
25,500
|
|
|
|
|
||
|
1,09,000
|
1,09,000
|
||
Total Sales = Cash Sales + Credit Sales
Total Sales = 15,900 + 97,300 = ₹ 1,13,200
Page No 20.45:
Question 34:
From the following information, ascertain the opening balance of Sundry Debtors and the closing balance of Sundry Creditors:
| ₹ | |
| Sundry Creditors as on 31st March, 2018 | 20,600 |
| Sundry Debtors as on 31st March, 2019 | 37,400 |
| Stock as on 31st March, 2018 | 26,000 |
| Stock as on 31st March, 2019 | 24,000 |
| Purchases | 1,10,000 |
| Discount allowed by creditors | 800 |
| Discount allowed to customers | 1,100 |
| Cash paid to sundry creditors | 95,000 |
| Bills Payable issued by them | 14,000 |
| Bills Receivable received from customers | 16,500 |
| Cash received from customers | 1,30,000 |
| Bills receivable dishonoured | 1,900 |
Answer:
|
Debtors Account
|
|||
| Dr. |
Cr.
|
||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
| Balance b/d |
43,100
|
Cash A/c |
1,30,000
|
| Bill Receivable A/c |
1,900
|
Discount Allowed A/c |
1,100
|
| Sales A/c |
1,40,000
|
Bill Receivable A/c |
16,500
|
|
|
Balance c/d |
37,400
|
|
|
|
|
||
|
|
|
||
|
1,85,000
|
1,85,000
|
||
Cost of Goods Sold = Opening Stock + Purchases – Closing Stock
Cost of Goods Sold = 26,000 + 1,10,000 – 24,000 = 1,12,000
Sales = Cost of Goods Sold + Gross Profit
Sales = 1,12,000 + 48,000 = ₹ 1,60,000
Credit Sales = 1,60,000 – 20,000 = ₹ 1,40,000
|
Creditors Account
|
|||
| Dr. |
Cr.
|
||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
| Cash A/c |
95,000
|
Balance b/d |
20,600
|
| Discount Received A/c |
800
|
Purchases A/c |
1,10,000
|
| Bills Payable A/c |
14,000
|
|
|
| Balance c/d |
20,800
|
|
|
|
|
|
||
|
1,30,600
|
1,30,600
|
||
Page No 20.45:
Question 35:
Roshan, whose accounts are maintained by Single Entry System, acquired a retail business on 1st April, 2018. He had ₹ 40,000 of his own and he borrowed ₹ 20,000 from his wife. He paid ₹ 15,000 for Goodwill, ₹ 5,000 for Furniture and ₹ 35,000 for Stock.
Total cash received by him during the financial year from the Debtors was ₹ 2,30,000. His payments were:
| ₹ | |
| Purchases | 1,56,000 |
| Salary and Wages | 21,400 |
| Trade Expenses | 7,200 |
| For business premises | 5,920 |
| For private house | 2,960 |
| Payments made for domestic purposes and drawings | 26,400 |
At the end of the year, the Stock was ₹ 37,500. He owed ₹ 13,500 to Creditors for goods and his customers owed to him ₹ 15,000. Provide 5% for Depreciation on Furniture, Interest at 5% on wife's Loan and ₹ 1,000 for Doubtful Debts.
Prepare the Cash Account, the Profit and Loss Account for the year ended 31st March, 2019 and the Balance Sheet at the close of the year.
Answer:
|
Trading Account for the year ended 31st March, 2019
|
||||||
| Dr. |
|
Cr.
|
||||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|||
| Opening Stock |
35,000
|
Sales |
2,45,000
|
|||
| Purchases: Cash |
1,56,000
|
Closing Stock |
37,500
|
|||
| Credit |
13,500
|
1,69,500
|
||||
| Gross Profit c/d |
78,000
|
|||||
|
2,82,500
|
2,82,500
|
|||||
|
|
|
|||||
|
Profit and Loss Account
for the year ended March 31, 2019
|
|||||
| Dr. |
|
Cr.
|
|||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
||
| Salary and Wages |
21,400
|
Gross Profit b/d |
78,000
|
||
| Trade Expenses |
7,200
|
||||
| Rent for Business Premises |
5,920
|
||||
| Provision for Doubtful Debts |
1,000
|
|
|||
| Depreciation on Furniture |
250
|
||||
| Interest on wife’s loan |
1,000
|
||||
| Net Profit t/d to Capital |
41,230
|
||||
|
78,000
|
78,000
|
||||
|
|
|
||||
|
Balance Sheet
as on March 31, 2019
|
||||||
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
|||
| Creditors |
13,500
|
Cash Balance |
15,120
|
|||
| Wife’s Loan from Wife |
20,000
|
Stock |
37,500
|
|||
| Add: O/s Interest |
1,000
|
21,000
|
Furniture |
5,000
|
|
|
| Capital |
40,000
|
Less: Depreciation |
250
|
4,750
|
||
| Less: Drawings |
29,360
|
Debtors |
15,000
|
|
||
|
10,640
|
Less: Provision for Doubtful Debts |
1,000
|
14,000
|
|||
| Add: Net Profit |
41,230
|
51,870
|
Goodwill |
15,000
|
||
|
|
86,370
|
|
86,370
|
|||
|
|
||||||
|
Cash Account
|
|||
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
| Capital |
40,000
|
Goodwill |
15,000
|
| Wife’s Loan |
20,000
|
Furniture |
5,000
|
| Debtors |
2,30,000
|
Stock |
35,000
|
| Purchases |
1,56,000
|
||
|
|
Salary and Wages |
21,400
|
|
| Trade Expenses |
7,200
|
||
|
|
|
Rent for Business Premises |
5,920
|
| Drawings( 2,960+26,400) |
29,360
|
||
| Balance c/d |
15,120
|
||
|
|
2,90,000
|
2,90,000
|
|
|
|
|
|
|
Working Notes
| Dr. |
Creditors Account
|
Cr.
|
|||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
||
|
|
|
||||
| Balance c/d | 13,500 | Purchases-Credit (B/F) | 13,500 | ||
|
13,500
|
13,500
|
||||
|
|
|
||||
| Dr. |
Debtors Account
|
Cr.
|
|||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
||
| Sales A/c (B/F) |
2,45,000
|
Cash |
2,30,000
|
||
|
|
Balance c/d |
15,000
|
|||
|
2,45,000
|
2,45,000
|
||||
|
|
|
||||
Page No 20.46:
Question 36:
Vijay commenced business as food grains merchant on 1st April, 2018 with a capital of ₹ 4,00,000. On the same day, he purchased furniture for ₹ 80,000. From the following particulars obtained from his books which do not conform to Double Entry principles, you are required to prepare the Trading and Profit and Loss Account for the year ended 31st March, 2019 and the Balance Sheet as on that date:
| ₹ | |
| Sales (including Cash Sales ₹ 2,00,000) | 5,00,000 |
| Purchases (including Cash Purchases ₹ 1,20,000 | 4,00,000 |
| Vijay's Drawings (in Cash) | 40,000 |
| Salaries to Staff | 48,000 |
| Bad Debts written off | 4,000 |
| Trade Expenses paid | 16,000 |
Answer:
|
Trading Account
for the year ended March 31, 2019
|
||||
| Dr. |
Cr.
|
|||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
| Purchases |
4,00,000
|
|
Sales |
5,00,000
|
| Less: Drawings |
12,000
|
3,88,000
|
Closing Stock |
1,60,000
|
| Gross Profit |
2,72,000
|
|
||
|
6,60,000
|
6,60,000
|
|||
|
Profit & Loss Account
for the year ended March 31, 2019
|
|||
| Dr. |
Cr.
|
||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
| Salary |
48,000
|
Gross Profit |
2,72,000
|
| Trade Expenses |
16,000
|
|
|
| Bad Debts |
4,000
|
|
|
| Net Profit |
2,04,000
|
|
|
|
2,72,000
|
2,72,000
|
||
|
Balance Sheet
as on March 31, 2019
|
|||||
| Dr. |
Cr.
|
||||
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
||
| Capital |
4,00,000
|
|
Cash in Hand |
2,56,000
|
|
| Less: Drawings |
52,000
|
|
Debtors |
1,40,000
|
|
| Add: Net Profit |
2,04,000
|
5,52,000
|
Less: Bad Debts |
4,000
|
1,36,000
|
| Creditors |
80,000
|
Furniture |
80,000
|
||
|
|
Closing Stock |
1,60,000
|
|||
|
6,32,000
|
6,32,000
|
||||
|
Cash Account
|
|||
| Dr. |
Cr.
|
||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
| Capital A/c |
4,00,000
|
Creditors A/c |
2,00,000
|
| Debtors A/c |
1,60,000
|
Drawings A/c |
40,000
|
| Sales A/c |
2,00,000
|
Furniture A/c |
80,000
|
|
|
Purchases A/c |
1,20,000
|
|
|
|
Salaries A/c |
48,000
|
|
|
|
Trade Expenses A/c |
16,000
|
|
|
|
Balance c/d |
2,56,000
|
|
|
7,60,000
|
7,60,000
|
||
|
Debtors Account
|
|||
| Dr. |
Cr.
|
||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
| Sales A/c |
3,00,000
|
Cash A/c |
1,60,000
|
|
|
Balance c/d |
1,40,000
|
|
|
|
|
||
|
3,00,000
|
3,00,000
|
||
|
Creditors Account
|
|||
| Dr. |
Cr.
|
||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
| Cash A/c |
2,00,000
|
Purchases A/c |
2,80,000
|
| Balance c/d |
80,000
|
|
|
|
|
|
||
|
2,80,000
|
2,80,000
|
||
Page No 20.46:
Question 37:
Following information is obtained from the books of Vinay, who maintained his books of account under Single Entry System:
| 1. Receipts for the year ended 31st March, 2019: | ₹ |
| From Debtors | 88,125 |
| Cash Sales | 20,625 |
| Paid by Vinay | 12,500 |
| 1,21,250 | |
| 2. Payments during the year: | |
| New plant bought | 3,125 |
| Drawings | 7,500 |
| Salaries | 5,625 |
| Wages | 33,625 |
| Interest paid | 375 |
| Rent paid | 6,625 |
| Light and power | 2,375 |
| Sundry Expenses | 10,625 |
| Sundry Creditors | 38,125 |
| 1,08,000 | |
Vinay banks all receipts and makes payments by means of cheque.
| 3. | |||
| Assets and Liabilities | As at 31st March, 2018
(₹)
|
As at 31st March, 2019
(₹)
|
|
| Sundry Creditors | 12,625 | 12,000 | |
| Sundry Debtors | 18,750 | 30,625 | |
| Bank | 3,125 | ? | |
| Stock | 31,250 | 15,625 | |
| Plant | 37,500 | 36,575 | |
From the above information, prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as on that date.
Answer:
|
Trading Account
for the year ended March 31, 2019
|
|||
| Dr. |
Cr.
|
||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
| Opening Stock |
31,250
|
Sales (1,00,000 + 20,625) |
1,20,625
|
| Purchases |
37,500
|
Closing Stock |
15,625
|
| Light & Power |
2,375
|
|
|
| Wages |
33,625
|
|
|
| Gross Profit |
31,500
|
|
|
|
1,36,250
|
1,36,250
|
||
|
Profit & Loss Account
for the year ended March 31, 2019
|
|||
| Dr. |
Cr.
|
||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
| Depreciation on Plant |
4,050
|
Gross Profit |
31,500
|
| Interest |
375
|
|
|
| Rent |
6,625
|
|
|
| Salary |
5,625
|
|
|
| Sundry Expenses |
10,625
|
|
|
| Net Profit |
4,200
|
|
|
|
31,500
|
31,500
|
||
|
Balance Sheet
as on March 31, 2019
|
||||
| Dr. |
Cr.
|
|||
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
|
| Capital |
78,000
|
|
Bank |
16,375
|
| Less: Drawings |
7,500
|
|
Closing Stock |
15,625
|
| Add: Additional Capital |
12,500
|
|
Debtors |
30,625
|
| Add: Net Profit |
4,200
|
87,200
|
Plant |
36,575
|
| Creditors |
12,000
|
|
||
|
|
|
|||
|
99,200
|
99,200
|
|||
|
Balance Sheet
as on April 01, 2018
|
|||
| Dr. |
Cr.
|
||
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
| Creditors |
12,625
|
Bank |
37,500
|
| Capital (bal. fig.) |
78,000
|
Closing Stock |
18,750
|
|
|
Debtors |
3,125
|
|
|
|
Plant |
31,250
|
|
|
90,625
|
90,625
|
||
|
Bank Account
|
|||
| Dr. |
Cr.
|
||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
| Balance b/d |
3,125
|
Creditors A/c |
38,125
|
| Capital A/c |
12,500
|
Drawings A/c |
7,500
|
| Debtors A/c |
88,125
|
Interest A/c |
375
|
| Sales A/c |
20,625
|
Light & Power A/c |
2,375
|
|
|
Plant A/c |
3,125
|
|
|
|
Rent A/c |
6,625
|
|
|
|
Salaries A/c |
5,625
|
|
|
|
Sundry Expenses A/c |
10,625
|
|
|
|
Wages A/c |
33,625
|
|
|
|
Balance c/d |
16,375
|
|
|
1,24,375
|
1,24,375
|
||
|
Debtors Account
|
|||
| Dr. |
Cr.
|
||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
| Balance b/d |
18,750
|
Cash A/c |
88,125
|
| Sales A/c (bal.fig.) |
1,00,000
|
Balance c/d |
30,625
|
|
|
|
||
|
1,18,750
|
1,18,750
|
||
|
Creditors Account
|
|||
| Dr. |
Cr.
|
||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
| Cash A/c |
38,125
|
Balance b/d |
12,625
|
| Balance c/d |
12,000
|
Purchases A/c (bal.fig.) |
37,500
|
|
|
|
||
|
50,125
|
50,125
|
||
Page No 20.47:
Question 38:
Surya does not keep a systematic record of his transactions. He is able to give you the following information regarding his assets and liabilities:
|
31st March 2018
(₹)
|
31st March, 2019
(₹) |
|
| Creditors for goods | 21,000 | 19,000 |
| Creditors for expenses | 1,500 | 1,800 |
| Bills Payable | 8,700 | 11,500 |
| Sundry Debtors | 35,000 | 34,000 |
| Stock (At cost) | 28,000 | 25,000 |
| Furniture and Fittings | 10,000 | 12,000 |
| Cash | 5,100 |
Following additional information is also available for the year ended 31st March, 2019:
| ₹ | |
| Bills Payable Issued | 20,800 |
| Cash Sales | 15,000 |
| Payment to Sundry Creditors | 31,000 |
| Expenses paid | 6,600 |
| Drawings | 8,000 |
Bad Debts during the year were ₹ 900. As regards sale, Surya tells you that he always sells goods at Cost plus 25%. Furniture and Fittings are to be depreciated at 10% of the value in the beginning of the year.
Prepare Surya's Trading and Profit and Loss Account for the year ended 31st March, 2019 and his Balance Sheet on that date.
Answer:
|
Trading Account
for the year ended 31st March, 2019 |
||||||
| Dr. |
|
Cr.
|
||||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|||
| Opening Stock |
28,000
|
Sales: Cash |
15,000
|
|||
| Purchases |
49,800
|
Credit |
51,000
|
66,000
|
||
| Gross Profit c/d |
13,200
|
Closing Stock |
25,000
|
|||
|
91,000
|
91,000
|
|||||
|
|
|
|||||
|
Profit and Loss Account
for the year ended March 31, 2019
|
||||||
| Dr. |
|
Cr.
|
||||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|||
| Bad Debts |
900
|
Gross Profit b/d |
13,200
|
|||
| Expenses |
6,600
|
|||||
| Add: Closing Creditors for Expenses |
1,800
|
|||||
|
8,400
|
|
|||||
| Less: Opening Creditors for Expenses | 1,500 |
6,900
|
||||
| Depreciation on Furniture and Fittings |
1,000
|
|||||
| Net Profit t/d to Capital |
4,400
|
|||||
|
13,200
|
13,200
|
|||||
|
|
|
|||||
|
Balance Sheet
as on March 31, 2019
|
||||
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
|
| Creditors for Goods |
19,000
|
Cash Balance |
4,600
|
|
| Creditors for Expenses |
1,800
|
Stock |
25,000
|
|
| Bills Payable |
11,500
|
Debtors |
34,000
|
|
| Capital | 46,900 | Furniture and Fittings |
12,000
|
|
| Less: Drawings | 8,000 | |||
|
38,900
|
||||
| Add: Net Profit |
4,400
|
43,300
|
||
|
|
||||
|
75,600
|
|
75,600
|
||
|
|
||||
|
Balance Sheet
as on March 31, 2018
|
|||
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
| Creditors for Goods |
21,000
|
Cash Balance |
5,100
|
| Creditors for Expenses |
1,500
|
Stock |
28,000
|
| Bills Payable |
8,700
|
Debtors |
35,000
|
| Capital ( Balancing Figure) |
46,900
|
Furniture and Fittings |
10,000
|
|
|
78,100
|
|
78,100
|
|
|
|||
|
Cash Account
|
|||
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
| Balance b/d |
5,100
|
Expenses |
6,600
|
| Sales |
15,000
|
Sundry Creditors |
31,000
|
| Debtors |
51,100
|
Furniture and Fittings |
3,000
|
| Bills Payable |
18,000
|
||
|
|
Drawings |
8,000
|
|
| Balance c/d |
4,600
|
||
|
|
71,200
|
71,200
|
|
|
|
|
|
|
| Dr. |
Creditors for Goods Account
|
Cr.
|
|||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
||
| Bills Payable |
20,800
|
Balance b/d |
21,000
|
||
| Cash |
31,000
|
Purchases-Credit (B/F) |
49,800
|
||
| Balance c/d |
19,000
|
|
|||
|
70,800
|
70,800
|
||||
|
|
|
||||
| Dr. |
Debtors Account
|
Cr.
|
|||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
||
| Balance b/d |
35,000
|
Bad Debts |
900
|
||
| Sales-Credit |
51,000
|
Cash (Balancing Figure) |
51,100
|
||
|
|
Balance c/d |
34,000
|
|||
|
86,000
|
86,000
|
||||
|
|
|||||
| Dr. |
Bills Payable Account
|
Cr.
|
|||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
||
| Cash (Balancing Figure) |
18,000
|
Balance b/d |
8,700
|
||
| Balance b/d |
11,500
|
Creditors for goods |
20,800
|
||
|
29,500
|
29,500
|
||||
|
|
|||||
| Dr. |
Furniture and Fittings Account
|
Cr.
|
|||
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
||
| Balance b/d |
10,000
|
Depreciation |
1,000
|
||
| Cash-Purchases (B/F) |
3,000
|
Balance c/d |
12,000
|
||
|
13,000
|
13,000
|
||||
|
|
|
||||
Computation of Cost of Goods Sold and Credit Sales
COGS = Opening. Stock + Purchases – closing. Stock = 28,000 + 49,800 – 25,000 = 52,800
Gross Profit = 52,800 × 25/100= 13,200
Total Sales = COGS + Gross Profit = 52,800 + 13,200 = 66,000 Credit Sales = Total Sales – Cash Sales
= 66,000 – 15,000 = 51,000
Note: It has been assumed that a Drawings in cash of Amount ₹ 8,000 has been made by Surya during the year.
View NCERT Solutions for all chapters of Class 13