Accountancy Dk Goel 2019 for Class 11 Commerce Accountancy Chapter 14 - Financial Statements

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Page No 21.38:

Question 1:

Prepare a Trading Account from the following particulars for the year ended 31st March 2017:-

Particulars	(₹)	Particulars	(₹)
Opening Stock	2,50,000	Purchases Returns	22,000
Purchases	7,00,000	Sales Return	36,000
Sales	18,00,000	Gas, Fuel and Power	75,000
Wages	2,06,000	Dock Charges	8,000
Carriage Inward	34,000	Factory Lighting	96,000
Carriage Outward	20,000	Office Lighting	5,000
Manufacturing Expenses	2,48,000

Closing Stock is valued at ₹ 6,00,000.

Answer:

Trading Account for the year ended March 31,2017
Dr.						Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Opening Stock		2,50,000	Sales	18,00,000
Purchases	7,00,000		Less: Sales Returns	36,000	17,64,000
Less: Purchases Returns	22,000	6,78,000	Closing Stock		6,00,000
Carriage Inward		34,000
Wages		2,06,000
Custom Duty		15,000
Gas, Fuel & Power		60,000
Dock Charges		8,000
Manufacturing Expenses		2,48,000
Factory Lighting		96,000
Gross Profit (Balancing Figure)		7,69,000
		23,64,000			23,64,000

Page No 21.38:

Question 2(A):

From the following information, prepare the Trading Account for the year ended 31st March, 2017:
Adjusted Purchases ₹ 15,00,000; Sales ₹ 21,40,000; Returns Inwards ₹ 40,000; Freight and Packing ₹ 15,000; Packing Expenses on Sales ₹ 20,000; Depreciation ₹ 36,000; Factory Expenses ₹ 60,000; Closing Stock ₹ 1,20,000.

Answer:

Trading Account for the year ended March 31, 2017
Dr.					Cr.
Particulars	Amount (Rs)	Particulars		Amount (Rs)
Adjusted Purchases	15,00,000	Sales	21,40,000
Freight & Packing	15,000	Less: Return Inwards	40,000	21,00,000
Factory Expenses	60,000
Gross Profit (Balancing Figure)	5,25,000
	21,00,000			21,00,000

Note: Closing Stock will not be shown on the Credit side of Trading Account since it has already been adjusted while calculating adjusted purchases.

Adjusted Purchases = Opening Stock + Net Purchases – Closing Stock

Page No 21.38:

Question 2(B):

Calculate Gross Profit from the following information:

	₹
Closing Stock	70,000
Wages	40,000
Salary	30,000
Sales	6,88,000
Adjusted Purchase	5,50,000

Answer:

Financial Statement of….
Trading Account for the year ended …
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Adjusted Purchase	5,50,000	Sales	6,88,000
Wages	40,000
Gross Profit (Balancing Figure)	98,000
	6,88,000		6,88,000

Note:

As adjusted purchases is given, it means opening and closing stock are already adjusted. So, these two stocks will not be considered while calculating Gross Profit.

Page No 21.39:

Question 3(A):

Calculate cost of goods sold from the following:

	₹		₹
Opening Stock	40,000	Wages & Salaries	10,000
Net Purchases	50,000	Rent Paid	15,000
Net Sales	1,90,000	Closing Stock	15,000

Answer:

Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses – Closing Stock

Cost of Goods Sold = 40,000 + 50,000 + 10,000 – 15,000 = ₹ 85,000

Page No 21.39:

Question 3(B):

Ascertain cost of Goods Sold and Gross Profit from the following:

	₹
Opening Stock	32,000
Purchases	2,80,000
Direct Expenses	20,000
Indirect Expenses	45,000
Closing Stock	50,000
Sales	4,00,000
Sales Returns	8,000

Answer:

Page No 21.39:

Question 4:

Calculate Gross Profit on the basis of the following information:

	₹
Purchases	6,80,000
Return Outwards	30,000
Carriage Inwards	20,000
Carriage Outwards	15,000
Wages	50,000

3/4 of the goods are sold for ₹ 6,00,000.

Answer:

Page No 21.39:

Question 5(A):

Calculate Closing Stock and Cost of Goods Sold:
Opening Stock ₹ 5,000; Sales ₹ 16,000; Carriage Inwards ₹ 1,000; Sales Returns ₹ 1,000; Gross Profit ₹ 6,000; Purchase ₹ 10,000; Purchase Returns ₹ 900.

Answer:

Page No 21.39:

Question 5(B):

Calculate Closing Stock from the following:

Particulars	(₹)	Particulars	(₹)
Opening Stock	38,000	Sales	3,60,000
Purchases	3,40,000	Return Inwards	5,000
Return Outwards	4,000	Gross Loss	20,000
Freight Inwards	26,000

Answer:

Page No 21.40:

Question 6(a):

Calculate gross profit and cost of goods sold from the following information:
Net Sales ₹ 8,00,000
Gross Profit is 40% on Sales

Answer:

Page No 21.40:

Question 6(b):

Calculate gross profit and cost of goods sold from the following information:

Net Sales	₹ 12,000
Gross Profit	$33 \frac{1}{3} %$ on Sales

Answer:

Page No 21.40:

Question 7:

Calculate the gross profit and cost of goods sold from the following information:
Net Sales ₹ 9,00,000
Gross Profit is 20% on cost.

Answer:

Page No 21.40:

Question 8:

Ascertain the value of closing stock from the following:

	₹
Opening Stock	1,20,000
Purchases during the year	9,30,000
Sales during the year	15,60,000
Rate of Gross Profit	40% on Sales

Answer:

Page No 21.40:

Question 9:

Calculate closing stock from the following details:

	₹
Opening Stock	4,80,000
Purchase	13,60,000
Sales	19,50,000

G.P. is 30% on Cost.

Answer:

$\begin{array}{l} Gross Profit = 30% on Cost \\ Let the Cost of Goods sold be ' x' \\ Gross Profit = \frac{30}{100} x \\ Cost of Good Sold = Sales - Gross Profit \\ x = 19,50,000 - \frac{30}{100} x \\ x + \frac{30}{100} x = 19,50,000 \\ \frac{100 x + 30 x}{100} = 19, 50, 000 \\ x = \frac{19, 50, 000 \times 100}{130} = Rs 15, 00, 000 \\ Cost of Good Sold = Opening Stock + Net Purchases + Direct Expenses - Closing Stock \\ 15,00,000 = 4,80,000 + 13,60, 0 00 + 0 - Closing Stock \\ Closing Stock = 18,40,000 - 15,00,000 \\ = Rs 3,40,000 \end{array}$

Page No 21.40:

Question 10:

Calculate Net Sales and G.P. from the following:

Cost of Goods Sold	₹ 4,50,000
G.P.	25% on Sales

Answer:

$\begin{array}{l} Gross Profit = 25% on Sales or \frac{1}{4} on Sales \\ \frac{1}{4} on Sales = \frac{1}{3} r d on Cost \\ Gross Profit = \frac{1}{3} \times 4,50,000 \\ = Rs 1,50,000 \\ Cost of Good Sold = Sales - Gross Profit \\ 4,50,000 = Sales - 1,50,000 \\ Sales = Rs 6,00,000 \end{array}$

Page No 21.40:

Question 11:

Prepare Profit and Loss Account for the year ended 31st March, 2017 from the following particulars:-


Particulars	(₹)	Particulars	(₹)
General expenses	12,000	Gross profit	7,69,000
Charity	3,000	Carriage Outwards	20,000
Office Lighting	5,000	Office Expenses	16,000
Law Charges	5,800	Fire Insurance Premium	18,000
Advertisement	14,200	Telephone Expenses	13,500
Bank charges	1,200	Establishment expenses	2,500
Commission	7,000	Miscellaneous Expenses	7,100
Rent, Rates and Taxes	30,000	Discount Received	6,200
Interest on investments	12,000	Traveller's salary	60,000
Sundry Receipts	6,000	Repair	4,300
Indirect expenses	2,100	Commission Cr.	2,000
Printing and Stationery	1,500

Answer:

Profit and Loss Account for the year ended March 31, 2017
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
General Expenses	12,000	Gross Profit	7,69,000
Charity	3,000	Interest on Investments	12,000
Office Lighting	5,000	Sundry Receipts	6,000
Law Charges	5,800	Discount Received	6,200
Advertisement	14,200	Commission Received	2,000
Bank Charges	1,200
Commission	7,000
Rent, Rates and Taxes	30,000
Indirect Expenses	2,100
Printing & Stationery	1,500
Carriage Outwards	20,000
Office Expenses	16,000
Fire Insurance Premium	18,000
Telephone Expenses	13,500
Establishment Expenses	2,500
Miscellaneous Expenses	7,100
Traveler’s Salary	60,000
Repair	4,300
Net Profit	5,72,000
	7,95,200		7,95,200

Page No 21.41:

Question 12:

Calculate the amount of gross profit, operating profit and net profit on the basis of the following balances extracted from the books of M/s Rajiv & Sons for the year ended March 31, 2017.

	₹
Opening Stock	50,000
Net Sales	11,00,000
Net Purchases	6,00,000
Direct Expenses	60,000
Administration Expenses	45,000
Selling and Distribution Expenses	65,000
Loss due to Fire	20,000
Closing Stock	70,000

Answer:

Financial Statement of M/s Rajiv & Sons
Trading Account for the year ended March 31, 2017
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Opening Stock	50,000	Net Sales	11,00,000
Net Purchases	6,00,000	Closing Stock	70,000
Direct Expenses	60,000
Gross Profit (Balancing Figure)	4,60,000
	11,70,000		11,70,000

Profit and Loss Account for the year ended March 31, 2017
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Administration Expenses	45,000	Gross Profit	4,60,000
Selling & Distribution Expenses	65,000
Loss by Fire	20,000
Net Profit	3,30,000
	4,60,000		4,60,000

Working Notes:

\begin{array}{l} Operating Profit = Net Profit - Non-Operating Income + Non-Operating Expenses \\ = 3,30,000 - 0 + 20,000 \\ = Rs 3,50,000 \end{array}

Loss by Fire is a non-operating expense, thus, added to the net profit to arrive at operating profit.

Page No 21.41:

Question 13:

Calculate operating profit from the following:

	₹
Net Profit	5,00,000
Dividend Received	6,000
Loss on sale of Furniture	12,000
Loss by Fire	50,000
Salaries	1,20,000
Interest on Loan from Bank	10,000
Rent Received	24,000
Donation	5,100

Answer:

$\begin{array}{l} Operating Profit = Net Profit - Non-Operating Income + Non-Operating Expenses \\ Non-Operating Income = Dividend Received + Rent Received \\ = 6,000 + 24,000 \\ = 30,000 \\ Non-Operating Expenses = Loss on Sale of Furniture + Loss by Fire + Interest on Loan + Donation \\ = 12,000 + 50,000 + 10,000 + 5,100 \\ = Rs 77,100 \\ ∴ Operating Profit = 5,00,000 - 30,000 + 77,100 \\ = Rs 5,47,100 \end{array}$

Note: Salary being an operating expense was already taken into account while determining net profit, thus, it will be ignored now.

Page No 21.41:

Question 14:

A merchant has earned a Net Profit of ₹ 57,200 for the year ended 31st March, 2017. Other balances in his Ledger are as under:-

Dr. Balances	(₹)	Cr. Balances	(₹)
Cash at Bank	4,800	Bills Payable	3,200
Cash in Hand	1,200	Creditors	61,300
Furniture and Fixtures	7,500	Loan	50,000
Debtors	80,100	Capital	3,32,300
Closing Stock	70,000
Motor Car	40,000
Building	1,50,000
Plant and Machinery	1,20,000
Bills Receivable	4,400
Investments	20,000
Drawings	6,000

Prepare his Balance Sheet as at 31st March, 2017.

Answer:

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Capital	3,32,300		Fixed Assets
Add: Net Profit	57,200		Furniture & Fixtures	7,500
Less: Drawings	6,000	3,83,500	Motor Car	40,000
Loan		50,000	Building	1,50,000
			Plant & Machinery	1,20,000
Current Liabilities			Current Assets
Creditors		61,300	Closing Stock	70,000
Bills Payable		3,200	Debtors	80,100
			Bills Receivable	4,400
			Investments	20,000
			Cash at Bank	4,800
			Cash in Hand	1,200
		4,98,000		4,98,000

Page No 21.42:

Question 15:

The Trial Balance shows the following balances as at 31st March, 2017:-


Dr. Balances	(₹)	Cr. Balances	(₹)
Purchases	60,000	Capital	1,13,075
Sales Returns	1,500	Sales	1,27,000
Plant and Machinery	90,000	Purchases Returns	1,275
Opening Stock	40,000	Discount Received	800
Discount Allowed	350	Sundry Creditors	20,000
Bank Charges	100	Bills Payable	5,000
Sundry Debtors	45,000
Salaries	7,000
Wages	10,000
Freight : In	1,000
Freight : Out	1,200
Rent, Rates and Taxes	2,000
Advertisements	2,000
Cash at Bank	7,000
	2,67,150		2,67,150

Closing Stock was valued at ₹ 35,000. Prepare Trading and Profit and Loss Account for the year ended 31st March, 2017 and Balance Sheet as at that date.

Answer:

Trading Account for the year ended March 31, 2017
Dr.						Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Opening Stock		40,000	Sales	1,27,000
Purchases	60,000		Less: Sales Returns	1,500	1,25,500
Less: Purchases Returns	1,275	58,725	Closing Stock		35,000
Wages		10,000
Freight inwards		1,000
Gross Profit (Balancing Figure)		50,775
		1,60,500			1,60,500

Profit and Loss Account for the year ended March 31, 2017
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Discount Allowed	350	Gross Profit	50,775
Bank Charges	100	Discount Received	800
Salaries	7,000
Freight Outwards	1,200
Rent, Rates and Taxes	2,000
Advertisement	2,000
Net Profit	38,925
	51,575		51,575

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Capital	1,13,075		Fixed Assets
Add: Net Profit	38,925	1,52,000	Plant & Machinery	90,000

Current Liabilities			Current Assets
Sundry Creditors		20,000	Sundry Debtors	45,000
Bills Payable		5,000	Cash at Bank	7,000
			Closing Stock	35,000
		1,77,000		1,77,000

Page No 21.42:

Question 16:

Following is the Trial Balance of Sh. Damodar Parshad as at 31st March, 2016:-


Dr. Balances	(₹)	Cr. Balances	(₹)
Stock 1-4-2015	10,000	Discount Received	750
Purchases	58,000	Return Outwards	2,600
Wages	4,700	Sales	98,650
Returns Inwards	3,520	B/P	3,000
Carriage on Purchases	2,360	Sundry Creditors	5,600
Carriage on Sales	710	Creditors for Rent	500
Office Salaries	4,800	Capital	40,000
Rent and Taxes	2,400	Loan from X	10,000
Cash	1,100	Commission	1,200
Bank Balance	7,820
Bad-debts	600
Discount allowed	640
Land and Building	20,000
Scooter	6,600
Scooter Repairs	850
B/R	3,500
Commission	1,800
Sundry Debtors	25,400
Interest on X's Loan	1,500
Drawings	6,000
	1,62,300		1,62,300

Prepare a Trading and Profit and Loss Account for the year ended on 31-3-2016 and the Balance Sheet as at that date. The Stock on 31st March, 2016 was ₹ 22,000.

Answer:

Financial Statements of Sh. Damodar Parshad
Trading Account for the year ended March 31, 2016
Dr.						Cr.
Particulars		Amount (₹)	Particulars		Amount (₹)
Opening Stock		10,000	Sales	98,650
Purchases	58,000		Less: Return Inwards	3,520	95,130
Less: Return Outwards	2,600	55,400	Closing Stock		22,000
Wages		4,700
Carriage on Purchase		2,360
Gross Profit (Balancing Figure)		44,670
		1,17,130			1,17,130

Profit and Loss Account for the year ended March 31, 2016
Dr.				Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Carriage on sales	710	Gross Profit	44,670
Office Salaries	4,800	Discount Received	750
Rent & Taxes	2,400	Commission	1,200
Bad Debts	600
Discount Allowed	640
Scooter Repairs	850
Commission	1,800
Interest on X’s Loan	1,500
Net Profit	33,320
	46,620		46,620

Balance Sheet as on March 31, 2016
Liabilities		Amount (₹)	Assets	Amount (₹)
Capital	40,000		Fixed Assets
Add: Net Profit	33,320		Land & Building	20,000
Less: Drawings	6,000	67,320	Scooter	6,600
Loan from X		10,000
Current Liabilities			Current Assets
Creditors		5,600	Closing Stock	22,000
Bills Payable		3,000	Debtors	25,400
Creditors for Rent		500	Bills Receivable	3,500
			Cash at bank	7,820
			Cash in hand	1,100
		86,420		86,420

Page No 21.43:

Question 17:

From the following balances extracted from the books of Sh. Badri Vishal on 31st March, 2017, prepare a Trading Account, P & L A/c and a Balance Sheet. Closing Stock valued on that date was ₹ 15,000.

	Dr. (₹)	Cr. (₹)
Capital		1,28,200
Household Expenses	10,000
Sales		1,80,000
Return inwards	4,000
Return outwards		6,000
Purchases	1,50,000
Cash at Shop	1,600
Bank Overdraft		15,000
Interest on Overdraft	1,500
Creditors		17,800
Stock at the Commencement	18,000
Freight	8,500
Rent and Taxes	7,000
Debtors	32,600
Commission	3,000	2,200
Freehold property	30,000
Sundry expenses	3,900
Salaries and wages	20,000
Life Insurance Premium	1,800
Insurance Premium	1,600
Motor Vehicle	39,800
Typewriter	8,000
Interest		800
Carriage inwards	2,000
Carriage outwards	800
Power	2,200
Audit Fee	1,700
Lighting	2,000
	3,50,000	3,50,000

Answer:

Financial Statements of Sh. Badri Vishal
Trading Account for the year ended March 31, 2017
Dr.						Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Opening Stock		18,000	Sales	1,80,000
Purchases	1,50,000		Less: Return Inwards	4,000	1,76,000
Less: Return Outwards	6,000	1,44,000	Closing Stock		15,000
Freight		8,500
Carriage Inwards		2,000
Power		2,200
Gross Profit (Balancing Figure)		16,300
		1,91,000			1,91,000

Profit and Loss Account for the year ended March 31, 2017
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Interest on Overdraft	1,500	Gross Profit	16,300
Rent & Taxes	7,000	Commission Received	2,200
Commission	3,000	Interest Received	800
Sundry Expenses	3,900	Net Loss (Balancing Figure)	22,200
Salaries & Wages	20,000
Insurance Premium	1,600
Carriage Outwards	800
Audit Fees	1,700
Lighting	2,000
	41,500		41,500

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Capital	1,28,200		Fixed Assets
Less: Net Loss	22,200		Freehold Property	30,000
Less: Drawings*	11,800	94,200	Motor Vehicle	39,800
			Typewriter	8,000
Current Liabilities			Current Assets
Creditors		17,800	Closing Stock	15,000
Bank Overdraft		15,000	Debtors	32,600
			Cash in hand	1,600
		1,27,000		1,27,000

*Drawings = Household Expenses + Life Insurance Premium = 10,000 + 1,800 = Rs 11,800

Page No 21.44:

Question 18:

From the following balances of the Ledger of Sh. Akhileshwar Singh, prepare Trading and Profit & Loss Account and Balance Sheet :-


	Dr. ₹	Cr. ₹
Stock on 1-4-2016	30,000
Stock on 31-3-2017	46,200
Purchases and Sales	2,30,000	3,45,800
Returns	12,500	15,200
Commission on Purchases	1,200
Freight and Carriage	26,000
Wages and Salary	10,800
Fire Insurance Premium	820
Business Premises	40,000
Sundry Debtors	26,100
Sundry Creditors		26,700
Goodwill	8,000
Patents	8,400
Coal, Gas and Power	12,100
Printing and Stationery	2,100
Postage	710
Travelling Expenses	4,250
Drawings	7,200
Depreciation	1,000
General Expenses	8,350
Capital		89,760
Investments	8,000
Interest on Investments		800
Cash in Hand	2,570
Banker's Account		5,200
Commission	4,600	4,400
Loan on Mortgage		30,000
Interest on Loan	3,000
B/P		2,280
B/R	4,540
Income Tax	3,000
Horses and Carts	20,300
Discount on Purchases		1,600
	5,21,740	5,21,740

Answer:

Financial Statement of Sh. Akhilesh Singh
Trading Account for the year ended March 31,2017
Dr.						Cr.
Particulars		Amount (₹)	Particulars		Amount (₹)
Opening Stock		30,000	Sales	3,45,800
Purchases	2,30,000		Less: Sales Return	12,500	3,33,300
Less: Purchases Return	15,200	2,14,800
Freight and Carriage		26,000
Commission on Purchases		1,200
Wages & Salaries		10,800
Coal, Gas and Power		12,100
Gross Profit (Balancing Figure)		38,400
		3,33,300			3,33,300

Profit and Loss Account for the year ended March. 31, 2017
Dr.				Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Fire Insurance Premium	820	Gross Profit	38,400
Printing & Stationery	2,100	Interest on Investments	800
Postage & Telegram	710	Commission Received	4,400
Travelling Expenses	4,250	Discount Received	1,600
Depreciation	1,000
General Expenses	8,350
Commission	4,600
Interest on Loan	3,000
Net Profit	20,370
	45,200		45,200

Balance Sheet as on March 31, 2017
Liabilities		Amount (₹)	Assets	Amount (₹)
Capital	89,760		Fixed Assets
Add: Net Profit	20,370		Goodwill	8,000
Less: Income tax	3,000		Business Premises	40,000
Less: Drawings	7,200	99,930	Patents	8,400
Loan on Mortgage		30,000	Horses and Carts	20,300

Current Liabilities			Current Assets
Creditors		26,700	Closing Stock	46,200
Banker’s Account		5,200	Debtors	26,100
Bills Payable		2,280	Cash in Hand	2,570
			Bills Receivable	4,540
			Investment	8,000

		1,64,110		1,64,110

Page No 21.45:

Question 19:

From the following balances prepare Final Accounts as at 31st March 2017:-

Particulars	(₹)	Particulars	(₹)
Stock 1-4-2016	23,500	Freight In	1,100
Purchases	46,800	Freight Out	3,000
Sales	1,30,000	Rent (Factory 1/3, Office 2/3)	7,500
Productive Expenses	27,000	Legal Expenses	800
Unproductive Expenses	5,800	Miscellaneous Receipts	500
Trade Expenses	1,200	Sundry Debtors	30,000
Returns In	6,600	Sundry Creditors	16,100
Returns Out	2,800	Donation	600
Loose Tools	7,200	Bad-Debts	4,750
Trade Marks	5,000	Bad-Debts Recovered	4,000
Discount Cr.	2,100	Bank Charges	2,800
Salaries	9,600	Loan on Mortgage	20,000
Fixed Deposit with Punjab National Bank	10,000	Interest on Loan	2,400
Cash in Hand	1,300
Motor Vehicles	50,000
Leasehold Land	60,000
Capital	1,37,450
Life Insurance Premium	6,000

Value of Closing Stock was ₹ 36,500 on 31st March, 2017.

Answer:

Trading Account for the year ended March 31, 2017
Dr.						Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Opening Stock		23,500	Sales	1,30,000
Purchases	46,800		Less: Return Inwards	6,600	1,23,400
Less: Return Outwards	2,800	44,000	Closing Stock		36,500
Freight Inwards		1,100
Productive Expenses		27,000
Rent (1/3 of 7,500)		2,500
Gross Profit (Balancing Figure)		61,800
		1,59,900			1,59,900

Profit and Loss Account for the year ended March 31, 2017
Dr.				Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Freight Outwards	3,000	Gross Profit	61,800
Unproductive Wages	5,800	Discount Received	2,100
Trade Expenses	1,200	Misc. Receipts	500
Salaries	9,600	Bad Debts Recovered	4,000
Rent (2/3 of 7,500)	5,000
Legal Expenses	800
Donation	600
Bad Debts	4,750
Bank Charges	2,800
Interest on Loan	2,400
Net Profit	32,450
	68,400		68,400

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets	Amount (Rs)
Capital	1,37,450		Fixed Assets
Add: Net Profit	32,450		Trade Marks	5,000
Less: Drawings (Life Insurance Premium)	6,000	1,63,900	Fixed Deposit with PNB	10,000
Loan on Mortgage		20,000	Motor Vehicles	50,000
			Leasehold Land	60,000
Current Liabilities			Current Assets
Sundry Creditors		16,100	Closing Stock	36,500
			Sundry Debtors	30,000
			Cash in Hand	1,300
			Loose Tools	7,200
		2,00,000		2,00,000

Page No 21.46:

Question 20:

Arrange assets in the order of permanence:
Sundry Debtors, Stock, Investment, Land and Building, Cash in Hand, Motor Vehicle, Cash at Bank, Goodwill, Plant and Machinery, Furniture, Loose Tools, Marketable Securities.

Answer:

Assets in the order of Permanence:

1. Goodwill
2. Land and Building
3. Plant and Machinery
4. Motor Vehicle
5. Loose Tools
6. Furniture
7. Investment (Long-term)
8. Stock
9. Sundry Debtors
10. Marketable Securities (Short-term)
11. Cash at Bank
12. Cash in Hand

View NCERT Solutions for all chapters of Class 13