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Page No 23.43:
Question 1:
Atul does not keep proper records of his business. He gives you the following information:
| (₹) | |||
| Opening Capital | 2,00,000 | ||
| Closing Capital | 2,50,000 | ||
| Drawings made during the year | 60,000 | ||
| Capital added during the year | 75,000 | ||
Calculate profit or loss for the year.
Answer:
|
Statement of Profit or Loss
for the year ended ….
|
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | 2,50,000 | |
| Add: Drawings made during the year | 60,000 | |
| Less: Additional capital introduced during the year | 75,000 | |
| Adjusted capital at the end of the year | 2,35,000 | |
| Less: Capital in the beginning of the year | 2,00,000 | |
| Profit made during the year | 35,000 | |
Page No 23.43:
Question 2:
Mr. Joshi started a business with a capital of ₹ 5,00,000. At the end of the year his position was:
| (₹) | |||
| Cash in hand | 15,000 | ||
| Cash at bank | 70,000 | ||
| Sundry Debtors | 1,20,000 | ||
| Stock | 2,40,000 | ||
| Furniture | 75,000 | ||
| Machinery | 2,00,000 | ||
Sundry creditors at this date totalled ₹ 80,000. During the year he introduced a further capital of ₹ 1,50,000 and withdrew for household expenses ₹ 90,000.
You are required to calculate profit or loss during the year.
Answer:
|
Statement of Affairs
as on March …
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Sundry Creditors | 80,000 | Cash in Hand | 15,000 |
| Capital (Balancing Figure) | 6,40,000 | Cash at Bank | 70,000 |
| Sundry Debtors | 1,20,000 | ||
| Stock | 2,40,000 | ||
| Furniture | 75,000 | ||
| Machinery | 2,00,000 | ||
| 7,20,000 | 7,20,000 | ||
|
Statement of Profit or Loss
for the year ended ….
|
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | 6,40,000 | |
| Add: Drawings made during the year | 90,000 | |
| Less: Additional capital introduced during the year | 1,50,000 | |
| Adjusted capital at the end of the year | 5,80,000 | |
| Less: Capital in the beginning of the year | 5,00,000 | |
| Profit made during the year | 80,000 | |
Page No 23.44:
Question 3:
Mr. Vasudev does not keep proper records of his business. He provided following information. You are required to prepare a statement showing the profit or loss for the year.
| (₹) | |||
| Owner's Equity at the beginning of the year | 15,00,000 | ||
| Bills Receivable | 60,000 | ||
| Cash in hand | 80,000 | ||
| Furniture | 9,00,000 | ||
| Building | 10,00,000 | ||
| Creditors | 6,00,000 | ||
| Stock in trade | 2,00,000 | ||
| Further capital introduced | 3,20,000 | ||
| Drawings made during the period | 80,000 | ||
Answer:
|
Statement of Affairs
as on March …
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Creditors | 6,00,000 | Cash in Hand | 80,000 |
| Capital (Balancing Figure) | 16,40,000 | Furniture | 9,00,000 |
| Stock in trade | 2,00,000 | ||
| Building | 10,00,000 | ||
| Bills Receivable | 60,000 | ||
| 22,40,000 | 22,40,000 | ||
|
Statement of Profit or Loss
for the year ended ….
|
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | 16,40,000 | |
| Add: Drawings made during the year | 80,000 | |
| Less: Additional capital introduced during the year | 3,20,000 | |
| Adjusted capital at the end of the year | 14,00,000 | |
| Less: Capital in the beginning of the year | 15,00,000 | |
| Loss incurred during the year | 1,00,000 | |
Page No 23.44:
Question 4:
Tulsi started business on 1st April, 2016 with a capital of ₹ 4,50,000. On 31st March, 2017 her position was as under:
| (₹) | |||
| Cash | 99,000 | ||
| Bills Receivable | 75,000 | ||
| Stock | 48,000 | ||
| Land and Building | 1,80,000 | ||
| Furniture | 50,000 | ||
She owed ₹ 45,000 to her friend Parvati on that date. She withdrew ₹ 8,000 per month for household purposes. Ascertain her profit or loss for the year ended 31st March, 2017.
Answer:
|
Statement of Affairs
as on March 31, 2017
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Loan from Friend | 45,000 | Cash | 99,000 |
| Capital (Balancing Figure) | 4,07,000 | Bills Receivable | 75,000 |
| Stock | 48,000 | ||
| Land and Building | 1,80,000 | ||
| Furniture | 50,000 | ||
| 4,52,000 | 4,52,000 | ||
|
Statement of Profit or Loss
for the year ended March 31, 2017
|
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | 4,07,000 | |
| Add: Drawings made during the year (8,000 × 12) | 96,000 | |
| Less: Additional capital introduced during the year | - | |
| Adjusted capital at the end of the year | 5,03,000 | |
| Less: Capital in the beginning of the year | 4,50,000 | |
| Profit made during the year | 53,000 | |
Page No 23.44:
Question 5(A):
From the following information, calculate capital at the beginning :
| ₹ | |
| Capital at the end of the year | 24,00,000 |
| Drawing Made during the year : ₹ 10,000 per month | |
| Fresh Capital introduced during the year | 4,00,000 |
| Profit of the current year | 6,60,000 |
Answer:
|
Statement of Profit or Loss
for the year ended December 31, 2005
|
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | 24,00,000 | |
|
Add: Drawings made during the year (10,000 × 12)
|
1,20,000 | |
|
Less: Additional capital introduced during the year
|
4,00,000 | |
| Adjusted capital at the end of the year | 21,20,000 | |
|
Less: Capital in the beginning of the year (Balancing Figure)
|
14,60,000 | |
| Profit made during the year | 6,60,000 | |
Page No 23.44:
Question 5(B):
Calculate Closing Capital:
Opening Capital ₹ 90,000; Profit for the year ₹ 25,000; Drawings ₹ 17,000. During the year proprietor sold ornaments of his wife for ₹ 40,000 and invested the same in business.
Answer:
Page No 23.45:
Question 6:
Suchitra started a business on 1st April, 2013 with a Capital of ₹ 50,00,000. On 31st March, 2014 her total Assets were ₹ 60,00,000 and Creditors were 3,00,000. She withdrew during the year for her personal expenses ₹ 10,000 per month upto 30th June, 2013 and thereafter ₹ 15,000 per month upto 31st March, 2014. During the year she sold her personal investments of ₹ 80,000 at 5% loss and introduced that amount in the business.
You are required to prepare a Statement of Profit or Loss for the year ending 31st March, 2014.
Answer:
|
Statement of Profit or Loss
for the year ended March 31, 2014
|
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year (60,00,000 – 3,00,000) | 57,00,000 | |
|
Add: Drawings made during the year (10,000 × 3 + 15,000 × 9)
|
1,65,000 | |
|
Less: Additional capital introduced during the year (WN)
|
76,000 | |
| Adjusted capital at the end of the year | 57,89,000 | |
|
Less: Capital in the beginning of the year
|
50,00,000 | |
| Profit made during the year | 7,89,000 | |
Working Note: Calculation of additional capital introduced during the year
Page No 23.45:
Question 7:
Following incomplete information is available from records maintained by Mr. X:
| 1-4-2016 | 31-3-2017 | |
| ₹ | ₹ | |
| Cash | 1,000 | 1,500 |
| Bank | 8,000 | 10,000 |
| Debtors | 10,000 | 12,000 |
| Stock | 7,000 | 6,000 |
| Machinery | 20,000 | 20,000 |
| Creditors | 11,000 | 10,000 |
| Bank Loan | 12,000 | 12,000 |
Answer:
|
Statement of Affairs
as on April 01, 2016
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Creditors | 11,000 | Cash | 1,000 |
| Bank Loan | 12,000 | Bank | 8,000 |
| Capital (Balancing Figure) | 23,000 | Debtors | 10,000 |
| Stock | 7,000 | ||
| Machinery | 20,000 | ||
| 46,000 | 46,000 | ||
|
Statement of Affairs
as on March 31, 2017
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Creditors | 10,000 | Cash | 1,500 |
| Bank Loan | 12,000 | Bank | 10,000 |
| Capital (Balancing Figure) | 27,500 | Debtors | 12,000 |
| Stock | 6,000 | ||
| Machinery | 20,000 | ||
| 49,500 | 49,500 | ||
|
Statement of Profit or Loss
for the year ended March 31, 2017
|
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | 27,500 | |
| Add: Drawings made during the year (1,250 × 12) | 15,000 | |
| Less: Additional capital introduced during the year (WN) | 10,500 | |
| Adjusted capital at the end of the year | 32,000 | |
| Less: Capital in the beginning of the year | 23,000 | |
| Profit made during the year | 9,000 | |
Working Note: Calculation of additional capital introduced during the year
Page No 23.45:
Question 8:
Raghuveer keeps incomplete records. His position was as follows:
| 31st March, 2016 (₹) |
31st March, 2017 (₹) |
|||
| Cash in Hand | 2,000 | 3,000 | ||
| Cash at Bank | 30,000 | 20,000 | ||
| Stock-in-Trade | 2,00,000 | 1,90,000 | ||
| Sundry Debtors | 85,000 | 1,40,000 | ||
| Plant & Machinery | 1,50,000 | 2,70,000 | ||
| Fixtures and Fittings | 18,000 | 15,000 | ||
| Sundry Creditors | 2,20,000 | 2,90,000 | ||
During the year, Raghuveer introduced ₹ 50,000 as further capital in the business and withdrew ₹ 7,500 per month. From the above information, show Profit or Loss for the year ended 31st March, 2017.
Answer:
|
Statement of Affairs
as on March 31, 2016
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Sundry Creditors | 2,20,000 | Cash in Hand | 2,000 |
| Capital (Balancing Figure) | 2,65,000 | Cash at Bank | 30,000 |
| Stock-in-Trade | 2,00,000 | ||
| Sundry Debtors | 85,000 | ||
| Plant & Machinery | 1,50,000 | ||
| Fixtures & Fittings | 18,000 | ||
| 4,85,000 | 4,85,000 | ||
|
Statement of Affairs
as on March 31, 2017
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Sundry Creditors | 2,90,000 | Cash in Hand | 3,000 |
| Capital (Balancing Figure) | 3,48,000 | Cash at Bank | 20,000 |
| Stock-in-Trade | 1,90,000 | ||
| Sundry Debtors | 1,40,000 | ||
| Plant & Machinery | 2,70,000 | ||
| Fixtures & Fittings | 15,000 | ||
| 6,38,000 | 6,38,000 | ||
|
Statement of Profit or Loss
for the year ended March 31, 2017
|
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | 3,48,000 | |
| Add: Drawings made during the year (7,500 × 12) | 90,000 | |
| Less: Additional capital introduced during the year | 50,000 | |
| Adjusted capital at the end of the year | 3,88,000 | |
| Less: Capital in the beginning of the year | 2,65,000 | |
| Profit made during the year | 1,23,000 | |
Page No 23.45:
Question 9:
On 1st April 2014, Mr, Ghosh started business with a capital of ₹ 5,00,000. He kept his books on single entry basis. Soon after he purchased furniture for ₹ 40,000 and purchased goods for ₹ 3,00,000. During the year he borrowed ₹ 1,00,000 from his brother and introduced further capital of his own amounting to ₹ 80,000.
On 31st March, 2015, there were sundry debtors amounting to ₹ 2,20,000 and creditors amounted to ₹ 1,40,000. Stock was valued at ₹ 4,50,000. Cash in hand ₹ 15,400 and Bank Overdraft ₹ 40,000
During the year Mr. Ghosh withdrew ₹ 2,000 per week for his family expenses. You are informed that included in sundry debtors is an irrecoverable amount of ₹ 5,000. He also took goods from the business for his personal use amounting to ₹ 4,000.
You are required to calculate his profit or loss during the year.
Answer:
|
Statement of Affairs
as on March …
|
||||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) | |
| Loan from Brother | 1,00,000 | Cash in Hand | 15,400 | |
| Creditors | 1,40,000 | Furniture | 40,000 | |
| Bank Overdraft | 40,000 | Sundry Debtors | 2,20,000 | |
| Capital (Balancing Figure) | 4,40,400 |
Less: Bad Debts
|
5,000 | 2,15,000 |
| Stock | 4,50,000 | |||
| 7,20,400 | 7,20,400 | |||
| Statement of Profit or Loss for the year ended March 31, 2015 |
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | 4,40,400 | |
|
Add: Drawings made during the year (2,000 × 52) + (4,000)
|
1,08,000 | |
|
Less: Additional capital introduced during the year
|
80,000 | |
| Adjusted capital at the end of the year | 4,68,400 | |
|
Less: Capital in the beginning of the year
|
5,00,000 | |
| Loss incurred during the year | 31,600 | |
Page No 23.46:
Question 10:
The Capital of Sh. Madhusudan on 1st April, 2016 was ₹ 5,00,000 and on 31st March, 2017 was ₹ 4,80,000. He has informed you that he withdrew from the business ₹ 8,000 per month for his private use. He paid ₹ 20,000 for his income-tax and the installment of the loan of his personal house at the rate of ₹ 15,000 per month from the business. He had also sold his shares of Reliance Company costing ₹ 1,00,000 at a profit of 20% and invested half of this amount in the business. Calculate the profit or loss of the business.
Answer:
|
Statement of Profit or Loss
for the year ended March 31, 2017
|
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | 4,80,000 | |
| Add: Drawings made during the year (WN1) | 2,96,000 | |
| Less: Additional capital introduced during the year (WN2) | 60,000 | |
| Adjusted capital at the end of the year | 7,16,000 | |
| Less: Capital in the beginning of the year | 5,00,000 | |
| Profit made during the year | 2,16,000 | |
Working Note:
WN 1: Calculation of Drawings
WN 2: Calculation of additional capital
Page No 23.46:
Question 11:
Charu do not keep proper books of accounts. Prepare the statement of profit or loss for the year ending 31-3-2017 from the following information:
| 1-4-2016 | 31-3-2017 | |||
| ₹ | ₹ | |||
| Cash in hand | 10,000 | 36,000 | ||
| Debtors | 20,000 | 80,000 | ||
| Creditors | 10,000 | 46,000 | ||
| Bills Receivable | 20,000 | 24,000 | ||
| Bills Payable | 4,000 | 42,000 | ||
| Car | – | 80,000 | ||
| Stock | 40,000 | 30,000 | ||
| Furniture | 8,000 | 48,000 | ||
| Investment | 40,000 | 50,000 | ||
| Bank balance | 1,00,000 | 90,000 | ||
The following adjustments are to be made:
(a) Proprietor withdrew cash ₹ 5,000 per month for private use.
(b) Depreciation @ 5% on Car and @ 10% on furniture.
(c) Outstanding Rent ₹ 6,000.
(d) Fresh Capital introduced during the year ₹ 30,000.
Answer:
|
Statement of Affairs
as on March 31, 2016
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Creditors | 10,000 | Cash in Hand | 10,000 |
| Bills Payable | 4,000 | Cash at Bank | 1,00,000 |
| Capital (Balancing Figure) | 2,24,000 | Stock | 40,000 |
| Debtors | 20,000 | ||
| Bills Receivable | 20,000 | ||
| Furniture | 8,000 | ||
| Investment | 40,000 | ||
| 2,38,000 | 2,38,000 | ||
|
Statement of Affairs
as on March 31, 2017
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Creditors | 46,000 | Cash in Hand | 36,000 |
| Bills Payable | 42,000 | Cash at Bank | 90,000 |
| Capital (Balancing Figure) | 3,50,000 | Stock | 30,000 |
| Debtors | 80,000 | ||
| Bills Receivable | 24,000 | ||
| Furniture | 48,000 | ||
| Investment | 50,000 | ||
| Car | 80,000 | ||
| 4,38,000 | 4,38,000 | ||
|
Statement of Profit or Loss
for the year ended March 31, 2017
|
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | 3,50,000 | |
| Add: Drawings made during the year (5,000 12) | 60,000 | |
| Less: Additional capital introduced during the year | 30,000 | |
| Adjusted capital at the end of the year | 3,80,000 | |
| Less: Capital in the beginning of the year | 2,24,000 | |
| Profit Before Adjustment | 1,56,000 | |
| Less: Depreciation on Car | 4,000 | |
| Less: Depreciation on Furniture | 4,800 | |
| Less: Outstanding Rent | 6,000 | |
| Profit made during the year | 1,41,200 | |
|
Final Statement of Affairs
as on March 31, 2017
|
|||||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
| Opening Capital | 2,24,000 | Cash in Hand | 36,000 | ||
|
Add: Net Profit
|
1,41,200 | Cash at Bank | 90,000 | ||
|
Add: Fresh Capital
|
30,000 | Stock | 30,000 | ||
|
Less: Drawings
|
60,000 | 3,35,200 | Debtors | 80,000 | |
| Creditors | 46,000 | Bills Receivable | 24,000 | ||
| Bills Payable | 42,000 | Investment | 50,000 | ||
| Outstanding Rent | 6,000 | Furniture | 48,000 | ||
|
Less: Depreciation
|
4,800 | 43,200 | |||
| Car | 80,000 | ||||
|
Less: Depreciation
|
4,000 | 76,000 | |||
| 4,29,200 | 4,29,200 | ||||
Page No 23.47:
Question 12:
Ashok keeps incomplete records. The position of his business on 1st April, 2016 was as follows:
Cash in Hand ₹ 2,200; Cash at Bank ₹ 5,400; Stock ₹ 25,100; Sundry Debtors ₹ 18,700; Furniture ₹ 6,000; Sundry Creditors ₹ 13,500.
His position on 31st March, 2017 was as follows:
Cash in Hand ₹ 1,500; Cash at Bank ₹ 8,400; B/R ₹ 3,300; Stock ₹ 26,000; Sundry Debtors ₹ 24,600; Furniture ₹ 8,000; Sundry Creditors ₹ 14,200.
During the year he had withdrawn from the business ₹ 18,000, of which ₹ 9,200 were spent in purchasing a Typewriter for the business.
(a) Depreciate furniture and typewriter by 10%.
(b) Write off ₹ 600 as Bad-Debts.
(c) Make a provision of 5% on Debtors for doubtful debts.
Calculate the profit or loss of his business for the year ended 31st March, 2017 and prepare a final statement of affairs, after the above adjustments.
Answer:
|
Statement of Affairs
as on March 31, 2016
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Sundry Creditors | 13,500 | Cash in Hand | 2,200 |
| Capital (Balancing Figure) | 43,900 | Cash at Bank | 5,400 |
| Stock | 25,100 | ||
| Sundry Debtors | 18,700 | ||
| Furniture | 6,000 | ||
| 57,400 | 57,400 | ||
|
Statement of Affairs
as on March 31, 2017
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Sundry Creditors | 14,200 | Cash in Hand | 1,500 |
| Capital (Balancing Figure) | 66,800 | Cash at Bank | 8,400 |
| Stock | 26,000 | ||
| Sundry Debtors | 24,600 | ||
| Bills Receivable | 3,300 | ||
| Furniture | 8,000 | ||
| Typewriter | 9,200 | ||
| 81,000 | 81,000 | ||
|
Statement of Profit or Loss
for the year ended March 31, 2017
|
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | 66,800 | |
| Add: Drawings made during the year (18,000 – 9,200) | 8,800 | |
| Less: Additional capital introduced during the year | ||
| Adjusted capital at the end of the year | 75,600 | |
| Less: Capital in the beginning of the year | 43,900 | |
| Profit Before Adjustment | 31,700 | |
| Less: Depreciation on Furniture | 800 | |
| Less: Depreciation on Typewriter | 920 | |
| Less: Bad Debts | 600 | |
| Less: Provision for Doubtful Debts | 1,200 | |
| Profit made during the year | 28,180 | |
|
Final Statement of Affairs
as on March 31, 2017
|
|||||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
| Creditors | 14,200 | Cash in Hand | 1,500 | ||
| Opening Capital | 43,900 | Cash at Bank | 8,400 | ||
|
Add: Net Profit
|
28,180 | Stock | 26,000 | ||
|
Less: Drawings
|
8,800 | 63,280 | Bills Receivable | 3,300 | |
| Sundry Debtors | 24,600 | ||||
|
Less: Bad Debts
|
600 | ||||
|
Less: Provision for Bad Debts
|
1,200 | 22,800 | |||
| Furniture | 8,000 | ||||
|
Less: Depreciation
|
800 | 7,200 | |||
| Typewriter | 9,200 | ||||
|
Less: Depreciation
|
920 | 8,280 | |||
| 77,480 | 77,480 | ||||
Page No 23.47:
Question 13:
From the details given below find out the Credit Sales and Total Sales :
| ₹ | |
| Opening Debtors | 60,000 |
| Closing Debtors | 75,000 |
| Discount allowed | 4,400 |
| Sales Return | 12,000 |
| Bad-Debts | 5,600 |
| Provision for Bad-Debts | 3,800 |
| B/R received from Debtors | 16,000 |
| B/R dishonoured | 4,000 |
| B/R discounted | 10,000 |
| Discounted bills dishonoured | 3,000 |
| Cash Sales | 1,05,000 |
| Cash received from Debtors (including ₹ 6,000 against a debt previously written off) | 3,08,000 |
| Cheques received from Debtors | 32,000 |
Answer:
|
Debtors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
60,000 |
Cash A/c |
3,02,000 |
|
Bill Receivable A/c |
4,000 |
Sales Return A/c |
12,000 |
|
Bank A/c |
3,000 |
Bad-Debts A/c |
5,600 |
|
Sales A/c (Credit) |
3,80,000 |
Bill Receivable A/c |
16,000 |
|
|
|
Discount Allowed |
4,400 |
|
|
|
Bank A/c |
32,000 |
|
|
|
Balance c/d |
75,000 |
|
|
4,47,000 |
|
4,47,000 |
|
|
|
|
|
Total Sales = Cash Sales + Credit Sales
Total Sales = 1,05,000 + 3,80,000 = 4,85,000
Page No 23.47:
Question 14:
Find out the Credit Purchases from the details given below:
| ₹ | |
| Balance of Creditors on 1st April 2018 | 32,000 |
| Balance of Creditors on 31st March, 2019 | 46,000 |
| Cash paid to Creditors | 2,20,000 |
| Cheques issued to Creditors | 60,000 |
| Purchases Returns | 10,000 |
| Discount received from Creditors | 6,600 |
| Cash Purchases | 1,15,000 |
| B/P accepted | 16,000 |
| B/P dishonoured | 2,000 |
| B/R endorsed to Creditors | 7,000 |
| Endorsed B/R dishonoured | 3,000 |
Answer:
|
Creditors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Cash A/c |
2,20,000 |
Balance b/d |
32,000 |
|
Discount Received A/c |
6,600 |
Bills Payable A/c |
2,000 |
|
Bills Payable A/c |
16,000 |
Bills Receivable A/c |
3,000 |
|
Purchases Return A/c |
10,000 |
Purchases A/c (Credit) |
3,28,600 |
|
Bills Receivable A/c |
7,000 |
|
|
|
Bank A/c |
60,000 |
|
|
|
Balance c/d |
46,000 |
|
|
|
|
3,65,600 |
|
3,56,600 |
|
|
|
|
|
Page No 23.48:
Question 15:
Anand Mohan has kept incomplete books. From the following particulars, prepare his Final Accounts for the year ending 31st March, 2019:
Receipts:- Received from Debtors ₹ 37,000; Fresh Capital brought in cash ₹ 20,000; Commission Received ₹ 2,800; Cash Sales ₹ 95,000.
Payments:- Paid to Creditors ₹ 35,000; Cash Purchases ₹ 26,500; Ornaments for his wife ₹ 22,000; Wages ₹ 18,800; Rent ₹ 8,400; Salary ₹ 12,000.
His Other Assets and Liabilities:-
| 31st March, 2018 | 31st March, 2019 | |
| ₹ | ₹ | |
| Debtors | 15,600 | 18,000 |
| Creditors | 15,400 | 13,000 |
| Machinery | 36,000 | 36,000 |
| Stock | 28,000 | 21,200 |
| Cash | 5,000 | – |
Adjustments :-
(1) Unpaid wages ₹ 1,500.
(2) Provide for Doubtful Debts at 5% on Debtors.
Answer:
|
Trading Account for the year ended March 31, 2012 |
||||
|
Dr. |
|
|
Cr. |
|
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
|
Opening Stock |
28,000 |
Sales (Cash + Credit) |
1,34,400 |
|
|
Purchases (Cash + Credit) |
59,100 |
Closing Stock |
21,200 |
|
|
Wages |
18,800 |
|
|
|
|
Add: Outstanding |
1,500 |
20,300 |
|
|
|
Gross Profit |
48,200 |
|
|
|
|
|
1,55,600 |
|
1,55,600 |
|
|
|
|
|
|
|
|
Profit & Loss Account for the year ended March 31, 2012 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Salary |
12,000 |
Gross Profit |
48,200 |
|
Rent |
8,400 |
Commission |
2,800 |
|
Bad Debts |
900 |
|
|
|
Net Profit |
29,700 |
|
|
|
|
51,000 |
|
51,000 |
|
|
|
|
|
|
Balance Sheet as on March 31, 2012 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Capital |
69,200 |
|
Cash in Hand |
37,100 |
|
|
Add: Additional Capital |
20,000 |
|
Closing Stock |
21,200 |
|
|
Less: Drawings |
22,000 |
|
Debtors |
18,000 |
|
|
Add: Net Profit |
29,700 |
96,900 |
Less: Bad Debts |
900 |
17,100 |
|
Creditors |
13,000 |
Machinery |
36,000 |
||
|
Unpaid Wages |
1,500 |
|
|
||
|
|
1,11,400 |
|
1,11,400 |
||
|
|
|
|
|
||
|
Balance Sheet as on March 31, 2011 |
|||
|
Dr. |
|
|
Cr. |
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Creditors |
15,400 |
Debtors |
15,600 |
|
Capital (Balancing figure) |
69,200 |
Machinery |
36,000 |
|
|
|
Stock |
28,000 |
|
|
|
Cash |
5,000 |
|
|
|
|
|
|
|
84,600 |
|
84,600 |
|
|
|
|
|
|
Cash Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
5,000 |
Creditors A/c |
35,000 |
|
Capital A/c |
20,000 |
Drawings A/c |
22,000 |
|
Debtors A/c |
37,000 |
Purchases A/c |
26,500 |
|
Sales A/c |
95,000 |
Wages A/c |
18,800 |
|
Commission A/c |
2,800 |
Salaries A/c |
12,000 |
|
|
|
Rent A/c |
8,400 |
|
|
|
Balance c/d |
37,100 |
|
|
1,59,800 |
|
1,59,800 |
|
|
|
|
|
|
Debtors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
15,600 |
Cash A/c |
37,000 |
|
Sales A/c |
39,400 |
Balance c/d |
18,000 |
|
|
|
|
|
|
|
55,000 |
|
55,000 |
|
|
|
|
|
|
Creditors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Cash A/c |
35,000 |
Balance b/d |
15,400 |
|
Balance c/d |
13,000 |
Purchases A/c |
32,600 |
|
|
|
|
|
|
|
48,000 |
|
48,000 |
|
|
|
|
|
Page No 23.48:
Question 16:
Mukesh Khanna has not kept proper books. However, he gives you the following information relating to the year 2018-19:
| (₹) | (₹) | ||
| To Balance b/d | 8,100 | By Payment to Creditors | 56,200 |
| To Received from Debtors | 75,000 | By Carriage | 1,270 |
| To Cash Sales | 52,000 | By Salaries | 24,000 |
| To Sales of Old Newspapers | 420 | By Rent | 16,000 |
| To Loan from Mrs. Khanna @ 15% p.a. on 1st July, 2018 |
8,000 | By Purchases of Cycle for his son | 1,500 |
| By Furniture Purchased | 12,000 | ||
| By Balance c/d | 32,550 | ||
| 1,43,520 | 1,43,520 | ||
The following balances existed on 1st April, 2018 - Debtors ₹ 24,200; Furniture ₹ 18,000; Stock ₹ 30,000; Creditors ₹ 18,000.
The following balances existed on 31st March, 2019 - Debtors ₹ 20,800; Furniture ₹ 30,000; Stock ₹ 35,950; Creditors ₹ 34,600.
Adjustments:-
(1) Depreciate Furniture by 10%.
(2) Provide upto-date interest on Mrs. Khanna's Loan.
Prepare Trading and Profit and Loss A/c for the year ending 31st March, 2019 and a Balance Sheet as at that date.
Answer:
|
Trading Account for the year ended March 31, 2019 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Opening Stock |
30,000 |
Sales (Cash + Credit) |
1,23,600 |
|
Purchases (Credit) |
72,800 |
Closing Stock |
35,950 |
|
Carriage |
1,270 |
|
|
|
Gross Profit |
55,480 |
|
|
|
|
1,59,550 |
|
1,59,550 |
|
|
|
|
|
|
Profit & Loss Account for the year ended March 31, 2019 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Salary |
24,000 |
Gross Profit |
55,480 |
|
Rent |
16,000 |
Sale of Old Newspapers |
420 |
|
Depreciation on Furniture |
3,000 |
|
|
|
Outstanding Interest on Loan (for 9 months) |
900 |
|
|
|
Net Profit |
12,000 |
|
|
|
|
55̮,900 |
|
55,900 |
|
|
|
|
|
|
Balance Sheet as on March 31, 2019 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Capital |
62,300 |
|
Cash in Hand |
32,550 |
|
|
Less: Drawings |
1,500 |
|
Closing Stock |
35,950 |
|
|
Add: Net Profit |
12,000 |
72,800 |
Furniture |
18,000 |
|
|
Creditors |
34,600 |
Add: Additions |
12,000 |
|
|
|
Unpaid Interest on Loan |
900 |
Less: Depreciation |
3,000 |
27,000 |
|
|
Loan from Mrs Khanna |
8,000 |
Debtors |
20,800 |
||
|
|
|
|
|
||
|
|
1,16,300 |
|
1,16,300 |
||
|
|
|
|
|
||
|
Balance Sheet as on March 31, 2018 |
|||
|
Dr. |
|
|
Cr. |
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Creditors |
18,000 |
Debtors |
24,200 |
|
Capital (Balancing figure) |
62,300 |
Furniture |
18,000 |
|
|
|
Stock |
30,000 |
|
|
|
Cash |
8,100 |
|
|
|
|
|
|
|
80,300 |
|
80,300 |
|
|
|
|
|
|
Debtors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
24,200 |
Cash A/c |
75,000 |
|
Sales A/c |
71,600 |
Balance c/d |
20,800 |
|
|
|
|
|
|
|
95,800 |
|
95,800 |
|
|
|
|
|
|
Creditors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Cash A/c |
56,200 |
Balance b/d |
18,000 |
|
Balance c/d |
34,600 |
Purchases A/c |
72,800 |
|
|
|
|
|
|
|
90,800 |
|
90,800 |
|
|
|
|
|
Page No 23.49:
Question 17:
Mr. Asif Ali, a retail trader, who keeps Incomplete Records gives you the following information for the year 2018-19:
| (₹) | (₹) | ||
| Received from Debtors | 38,000 | Bank Overdraft on 1-4-2018 | 2,500 |
| Cash Sales | 26,500 | Paid to Creditors | 31,200 |
| Miscellaneous Income | 300 | Carriage inwards | 800 |
| Salaries | 12,400 | ||
| Advertisement | 700 | ||
| Cash Purchases | 16,000 | ||
| Balance at Bank on 31-3-2019 | 1,200 | ||
| 64,800 | 64,800 | ||
The Assets and Liabilities were as follows:
| 31st March 2018 | 31st March 2019 | |
| ₹ | ₹ | |
| Stock | 15,000 | 12,000 |
| Fixed Assets | 25,000 | 25,000 |
| Sundry Debtors | 12,000 | ? |
| Sundry Creditors | 8,600 | ? |
Other Informations:
(1) Credit Sales during the year were ₹ 35,100.
(2) Sales returns ₹ 800.
(3) Credit Purchases during the year were ₹ 30,000.
(4) Discount allowed to Debtors ₹ 300.
(5) Discount received from Creditors ₹ 130.
Adjustments:-
(1) Make a provision for doubtful debts @ 5% on Debtors.
(2) Also make a provision for discount @ 2% on Debtors.
Prepare his Trading, P & L A/c and a Balance Sheet as at 31st March, 2019.
Answer:
|
Trading Account for the year ended March 31, 2019 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Opening Stock |
15,000 |
Sales (Cash + Credit – Returns) |
60,800 |
|
Purchases (Credit) |
46,000 |
Closing Stock |
12,000 |
|
Carriage |
800 |
|
|
|
Gross Profit |
11,000 |
|
|
|
|
72,800 |
|
72,800 |
|
|
|
|
|
|
Profit & Loss Account for the year ended March 31, 2019 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Salary |
12,400 |
Gross Profit |
11,000 |
|
Advertisement |
700 |
Miscellaneous Income |
300 |
|
Provision for Doubtful Debts |
400 |
Discount Received |
130 |
|
Provision for Discount on Debtors |
152 |
Net Loss |
2,522 |
|
Discount Allowed |
300 |
|
|
|
|
13,952 |
|
13,952 |
|
|
|
|
|
|
Balance Sheet as on March 31, 2019 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Capital |
40,900 |
|
Cash at Bank |
1,200 |
|
|
Less: Net Loss |
2,522 |
38,378 |
Debtors |
8,000 |
|
|
Creditors |
7,270 |
Less: Provision for DD |
400 |
|
|
|
|
|
Less: Provision for Discount |
152 |
7,448 |
|
|
|
|
Fixed Assets |
25,000 |
||
|
|
|
Closing Stock |
12,000 |
||
|
|
45,648 |
|
45,648 |
||
|
|
|
|
|
||
|
Balance Sheet as on March 31, 2018 |
|||
|
Dr. |
|
|
Cr. |
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Creditors |
8,600 |
Debtors |
12,000 |
|
Bank Overdraft |
2,500 |
Fixed Assets |
25,000 |
|
Capital (Balancing figure) |
40,900 |
Stock |
15,000 |
|
|
|
|
|
|
|
|
|
|
|
|
52,000 |
|
52,000 |
|
|
|
|
|
|
Debtors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
12,000 |
Cash A/c |
38,000 |
|
Sales A/c |
35,100 |
Sales Return A/c |
800 |
|
|
|
Discount Allowed A/c |
300 |
|
|
|
Balance c/d |
8,000 |
|
|
|
|
|
|
|
47,100 |
|
47,100 |
|
|
|
|
|
|
Creditors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Discount Received A/c |
130 |
Balance b/d |
8,600 |
|
Cash A/c |
31,200 |
Purchases A/c |
30,000 |
|
Balance c/d |
7,270 |
|
|
|
|
|
|
|
|
|
38,600 |
|
38,600 |
|
|
|
|
|
Page No 23.50:
Question 18:
Lalit Mohan keeps incomplete records. From the following information provided by him, prepare a Trading and Profit & Loss Account for the year ended 31st March, 2015 and a Balance Sheet as at that date:
| 31st March, 2014 | 31st March, 2015 | |
| ₹ | ₹ | |
| Sundry Debtors | 15,000 | 24,400 |
| Stock | 32,000 | 55,000 |
| Cash | 8,400 | 21,700 |
| Sundry Creditors | 22,000 | ? |
| Prepaid Expenses | Nil | 3,600 |
| Unpaid Expenses | 1,500 | 2,200 |
| Furniture | 20,000 | 32,000 |
Summary of cash transactions during the year:
| ₹ | |
| Receipts from Debtors | 2,00,000 |
| Payment to Creditors | 1,64,000 |
| Carriage Inwards | 3,300 |
| Payment for Life Insurance Premium | 15,000 |
| Sundry Expenses | 40,000 |
| Furniture purchased for cash | 12,000 |
You are informed that there were considerable amount of cash sales during the year. Credit purchases during the year amounted to ₹ 1,80,000. Provide 5% for doubtful debts on debtors.
Answer:
|
Trading Account for the year ended March 31, 2015 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Opening Stock |
32,000 |
Sales (Cash + Credit) |
2,57,000 |
|
Purchases (Credit) |
1,80,000 |
Closing Stock |
55,000 |
|
Carriage |
3,300 |
|
|
|
Gross Profit |
96,700 |
|
|
|
|
3,12,000 |
|
3,12,000 |
|
|
|
|
|
|
Profit & Loss Account for the year ended March 31, 2015 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Sundry Expenses |
40,000 |
Gross Profit |
96,700 |
|
Provision for Doubtful Debts |
1,220 |
Prepaid Expenses |
3,600 |
|
Unpaid Expenses (2,200 – 1,500) |
700 |
|
|
|
Net Profit |
58,380 |
|
|
|
|
1,00,300 |
|
1,00,300 |
|
|
|
|
|
|
Balance Sheet as on March 31, 2015 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Capital |
51,900 |
|
Cash in Hand |
21,700 |
|
|
Less: Drawings |
15,000 |
|
Debtors |
24,400 |
|
|
Add: Net Profit |
58,380 |
95,280 |
Less: Provision for DD |
1,220 |
23,180 |
|
Creditors |
38,000 |
Prepaid Expenses |
3,600 |
||
|
Unpaid Expenses |
2,200 |
Closing Stock |
55,000 |
||
|
|
|
Furniture |
32,000 |
||
|
|
1,35,480 |
|
1,35,480 |
||
|
|
|
|
|
||
Working Notes:
|
Balance Sheet as on March 31, 2014 |
|||
|
Dr. |
|
|
Cr. |
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Creditors |
22,000 |
Debtors |
15,000 |
|
Unpaid Expenses |
1,500 |
Stock |
32,000 |
|
Capital (Balancing figure) |
51,900 |
Cash |
8,400 |
|
|
|
Furniture |
20,000 |
|
|
|
|
|
|
|
75,400 |
|
75,400 |
|
|
|
|
|
|
Cash Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
8,400 |
Creditors A/c |
1,64,000 |
|
Debtors A/c |
2,00,000 |
Carriage A/c |
3,300 |
|
Sales A/c (Balancing Figure) |
47,600 |
Drawings A/c (Life Insurance Premium) |
15,000 |
|
|
|
Sundry Expenses A/c |
40,000 |
|
|
|
Furniture A/c |
12,000 |
|
|
|
Balance c/d |
21,700 |
|
|
|
|
|
|
|
2,56,000 |
|
2,56,000 |
|
|
|
|
|
|
Debtors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
15,000 |
Cash A/c |
2,00,000 |
|
Sales A/c |
2,09,400 |
Balance c/d |
24,400 |
|
|
|
|
|
|
|
2,24,400 |
|
2,24,400 |
|
|
|
|
|
|
Creditors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Cash A/c |
1,64,000 |
Balance b/d |
22,000 |
|
Balance c/d |
38,000 |
Purchases A/c |
1,80,000 |
|
|
|
|
|
|
|
2,02,000 |
|
2,02,000 |
|
|
|
|
|
Page No 23.50:
Question 19:
Vardhman commenced business on 1st April, 2018, with a capital of ₹ 50,000. He immediately purchased furniture of ₹ 20,000. During the year he received from his uncle a gift of ₹ 3,000 and he borrowed from his father a sum of ₹ 5,000. He had withdrawn ₹ 600 per month for his household expenses. He had no Bank account and all dealings were in cash. He did not maintain any books but following information is given :
| ₹ | |
| Sales (including cash sales ₹ 30,000) | 1,00,000 |
| Purchases (including cash purchases ₹ 10,000) | 75,000 |
| Carriage inwards | 700 |
| Wages | 300 |
| Discount allowed to debtors | 800 |
| Salaries | 6,200 |
| Bad-Debts written off | 1,500 |
| Trade expenses | 1,200 |
| Advertisements | 2,200 |
He used goods worth ₹ 1,300 for personal purposes and paid ₹ 500 to his son for examination and college fees.
On 31st March, 2019, his Debtors were worth ₹ 21,000 and Creditors ₹ 15,000. Stock in trade was valued at ₹ 10,000. Furniture to be depreciated by 10% p.a.
Prepare Trading and Profit and Loss Account for the year ended on 31st March, 2019, and Balance Sheet as at 31st March, 2019.
Answer:
|
Trading Account
for the year ended March 31, 2019
|
|||
|
Dr.
|
|
|
Cr.
|
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
Purchases (Cash + Credit – Drawings)
|
73,700
|
Sales (Cash + Credit)
|
1,00,000
|
|
Carriage Inwards
|
700
|
Closing Stock
|
10,000
|
|
Wages
|
300
|
|
|
|
Gross Profit
|
35,300
|
|
|
|
|
|
|
|
|
|
1,10,000
|
|
1,10,000
|
|
|
|
|
|
|
Profit & Loss Account
for the year ended March 31, 2019
|
|||
|
Dr.
|
|
|
Cr.
|
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
Discount Allowed
|
800
|
Gross Profit
|
35,300
|
|
Salaries
|
6,200
|
|
|
|
Bad Debts
|
1,500
|
|
|
|
Trade Expenses
|
1,200
|
|
|
|
Advertisement
|
2,200
|
|
|
|
Depreciation on Furniture
|
2,000
|
|
|
|
Net Profit
|
21,400
|
|
|
|
|
35,300
|
|
35,300
|
|
|
|
|
|
|
Balance Sheet
as on March 31, 2019
|
||||
|
Dr.
|
|
|
Cr.
|
|
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
|
|
Capital
|
50,000
|
|
Cash in Hand
|
36,400
|
|
Gift from Uncle
|
3,000
|
|
Debtors
|
21,000
|
|
Less: Drawings
(12 × 600 + 1,300 + 500)
|
9,000
|
|
Closing Stock
|
10,000
|
|
Add: Net Profit
|
21,400
|
65,400
|
Furniture (Less Depreciation)
|
18,000
|
|
Creditors
|
15,000
|
|
|
|
|
Loan from Father
|
5,000
|
|
|
|
|
|
|
|
|
|
|
|
85,400
|
|
85,400
|
|
|
|
|
|
|
|
Working Notes:
|
Debtors Account
|
|||
|
Dr.
|
|
|
Cr.
|
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
Sales A/c
|
70,000
|
Discount Allowed A/c
|
800
|
|
|
|
Bad Debts A/c
|
1,500
|
|
|
|
Cash A/c
|
46,700
|
|
|
|
Balance c/d
|
21,000
|
|
|
2,24,400
|
|
2,24,400
|
|
|
|
|
|
|
Creditors Account
|
|||
|
Dr.
|
|
|
Cr.
|
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
Cash A/c
|
50,000
|
Purchases A/c
|
65,000
|
|
Balance c/d
|
15,000
|
|
|
|
|
|
|
|
|
|
65,000
|
|
65,000
|
|
|
|
|
|
|
Cash Account
|
|||
|
Dr.
|
|
|
Cr.
|
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
Capital A/c
|
50,000
|
Furniture A/c
|
20,000
|
|
Gift from Uncle
|
3,000
|
Drawings A/c (12×600+500)
|
7,700
|
|
Loan from Father A/c
|
5,000
|
Purchases A/c
|
10,000
|
|
Sales A/c
|
30,000
|
Carriage Inwards A/c
|
700
|
|
Debtors A/c
|
46,700
|
Wages A/c
|
300
|
|
|
|
Salaries A/c
|
6,200
|
|
|
|
Trade Expenses A/c
|
1,200
|
|
|
|
Advertisement A/c
|
2,200
|
|
|
|
Creditors A/c
|
50,000
|
|
|
|
Balance c/d
|
36,400
|
|
|
1,34,700
|
|
1,34,700
|
|
|
|
|
|
Page No 23.51:
Question 20:
Calculate the value of Closing Stock from the following particulars:
| ₹ | ₹ | ||
| Purchases | 93,000 | Wages | 20,000 |
| Sales | 1,20,000 | Carriage Outwards | 3,200 |
| Opening Stock | 16,000 | Rate of Gross Profit on Cost | 25% |
Answer:
Rate of Gross Profit (on cost) = 25%
Rate of Gross Profit (on sales) = 20%
Gross Profit = 20% of 1,20,000 = 24,000
Gross Profit = Net Sales – Cost of Goods Sold
24,000 = 1,20,000 – Cost of Goods Sold
Cost of Goods Sold = 1,20,000 – 24,000 = Rs 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 = 16,000 + 93,000 + 20,000 – 96,000 = Rs 33,000
Page No 23.51:
Question 21:
Calculate the value of Opening Stock from the following:
| ₹ | |
| Sales | 2,05,000 |
| Sales Returns | 5,000 |
| Purchases | 1,24,000 |
| Purchases Returns | 4,000 |
| Carriage Inwards | 8,000 |
| Closing Stock | 36,000 |
| Rate of Gross Profit on Sales | 40% |
Answer:
Rate of Gross Profit (on sales) = 40%
Gross Profit = 40% of (2,05,000 – 5,000) = 80,000
Gross Profit = Net Sales – Cost of Goods Sold
80,000 = 2,00,000 – Cost of Goods Sold
Cost of Goods Sold = 2,00,000 – 80,000 = ₹ 1,20,000
Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses – Closing Stock
1,20,000 = Opening Stock + (1,24,000 – 4,000) + 8,000 – 36,000
Opening Stock = 1,20,000 – 1,20,000 – 8,000 + 36,000 = ₹ 28,000
Page No 23.52:
Question 22:
Chakravarti does not maintain proper books of accounts. Following information is obtained from his books for the year ended 31st March, 2018:
Cash Transactions:
| ₹ | ₹ | ||
| Received from Debtors | 72,000 | Staff Salary | 4,500 |
| Paid to Creditors | 56,000 | Wages | 15,000 |
| Drawings | 5,000 | Office Expenses | 2,000 |
| Received from Cash Sales | 30,000 | Rent | 3,500 |
| Life Insurance Premium | 800 | Cash in hand on 31-3-2018 | 16,700 |
Assets and Liabilities:
| 1-4-2017 | 31-3-2018 | |
| ₹ | ₹ | |
| Debtors | 24,000 | 56,000 |
| Creditors | 30,000 | 40,000 |
| Outstanding Salaries | 500 | 450 |
| Outstanding Wages | 1,000 | 1,200 |
The Stock on 31st March, 2018 was valued at ₹ 20,000 but Chakravarti has no record of the Stock on 1st April, 2017. However, he informs you that he sells his goods at cost plus 25%.
Prepare his Cash Book, Trading and P & L A/c for the year ended 31st March, 2018 and a Balance Sheet as at that date.
Answer:
|
Trading Account for the year ended March 31, 2018 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Opening Stock |
46,000 |
Sales (Cash + Credit) |
1,34,000 |
|
Purchases (Credit) |
66,000 |
Closing Stock |
20,000 |
|
Wages |
15,000 |
|
|
|
Outstanding Wages |
200 |
|
|
|
Gross Profit |
26,800 |
|
|
|
|
1,54,000 |
|
1,54,000 |
|
|
|
|
|
|
Profit & Loss Account for the year ended March 31, 2018 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Staff Salaries |
4,500 |
Gross Profit |
26,800 |
|
Office Expenses |
2,000 |
Outstanding Salary |
50 |
|
Rent |
3,500 |
|
|
|
Net Profit |
16,850 |
|
|
|
|
26,850 |
|
26,850 |
|
|
|
|
|
|
Balance Sheet as on March 31, 2018 |
||||
|
Dr. |
|
|
Cr. |
|
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
|
Capital |
40,000 |
|
Cash in Hand |
16,700 |
|
Less: Drawings |
5,800 |
|
Debtors |
56,000 |
|
Add: Net Profit |
16,850 |
51,050 |
Closing Stock |
20,000 |
|
Creditors |
40,000 |
|
|
|
|
Outstanding Salary |
450 |
|
|
|
|
Outstanding Wages |
1,200 |
|
|
|
|
|
92,700 |
|
92,700 |
|
|
|
|
|
|
|
Working Notes:
|
Balance Sheet as on March 31, 2017 |
|||
|
Dr. |
|
|
Cr. |
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Creditors |
30,000 |
Debtors |
24,000 |
|
Outstanding Salaries |
500 |
Stock |
46,000 |
|
Outstanding Wages |
1,000 |
Cash |
1,500 |
|
Capital (Balancing figure) |
40,000 |
|
|
|
|
|
|
|
|
|
71,500 |
|
71,500 |
|
|
|
|
|
|
Cash Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d (Balancing Figure) |
1,500 |
Creditors A/c |
56,000 |
|
Debtors A/c |
72,000 |
Drawings A/c |
5,000 |
|
Sales A/c |
30,000 |
Drawings A/c (Life Insurance Premium) |
800 |
|
|
|
Staff Salary |
4,500 |
|
|
|
Wages |
15,000 |
|
|
|
Office Expenses |
2,000 |
|
|
|
Rent |
3,500 |
|
|
|
Balance c/d |
16,700 |
|
|
1,03,500 |
|
1,03,500 |
|
|
|
|
|
|
Debtors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
24,000 |
Cash A/c |
72,000 |
|
Sales A/c |
1,04,000 |
Balance c/d |
56,000 |
|
|
|
|
|
|
|
1,28,000 |
|
1,28,000 |
|
|
|
|
|
|
Creditors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Cash A/c |
56,000 |
Balance b/d |
30,000 |
|
Balance c/d |
40,000 |
Purchases A/c |
66,000 |
|
|
|
|
|
|
|
96,000 |
|
96,000 |
|
|
|
|
|
Rate of Gross Profit (on cost) = 25%
Rate of Gross Profit (on sales) = 20%
Gross Profit = 20% of (30,000 + 1,04,000) = 26,800
Gross Profit = Net Sales – Cost of Goods Sold
26,800 = 1,34,000 – Cost of Goods Sold
Cost of Goods Sold = 1,34,000 – 26,800 = ₹ 1,07,200
Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses – Closing Stock
1,07,200 = Opening Stock + 66,000 + (15,000 + 200) – 20,000
Opening Stock = 1,07,200 – 66,000 – 15,200 + 20,000 = ₹ 46,000
Page No 23.52:
Question 23:
Mr. Gopal Das has only a Bank Pass Book and does not keep any other books of accounts. From the following information prepare his Final Accounts for the year ended 31st March, 2015.
An analysis of the Pass Book shows:-
Total amount received from Debtors and deposited with the Bank ₹ 2,20,000; Payment to Creditors ₹ 1,82,000; Salaries ₹ 6,000; Rent paid ₹ 4,800; Advertisement ₹ 2,000; Printing ₹ 800; Personal Expenses ₹ 4,000; Payment for Furniture ₹ 12,000; Balance at Bank on 31st March, 2015, ₹ 21,000.
Other Assets and Liabilities were as follows:
| 1-4-2014 | 31-3-2015 | |
| ₹ | ₹ | |
| Sundry Debtors | 30,000 | 42,000 |
| Sundry Creditors | 20,000 | 15,000 |
| Stock | 34,000 | ? |
| Salary Outstanding | 400 | 500 |
Mr. Gopal Das takes 20% profit on sales.
Answer:
|
Trading Account for the year ended March 31, 2015 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Opening Stock |
34,000 |
Sales (Credit) |
2,32,000 |
|
Purchases (Credit) |
1,77,000 |
Closing Stock |
25,400 |
|
Gross Profit |
46,400 |
|
|
|
|
2,57,400 |
|
2,57,400 |
|
|
|
|
|
|
Profit & Loss Account for the year ended March 31, 2015 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Salaries |
6,000 |
Gross Profit |
46,400 |
|
Outstanding Salary |
100 |
|
|
|
Rent |
4,800 |
|
|
|
Advertisement |
2,000 |
|
|
|
Printing |
800 |
|
|
|
Net Profit |
32,700 |
|
|
|
|
46,400 |
|
46,400 |
|
|
|
|
|
|
Balance Sheet as on March 31, 2015 |
||||
|
Dr. |
|
|
Cr. |
|
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
|
Capital |
56,200 |
|
Debtors |
42,000 |
|
Less: Drawings |
4,000 |
|
Stock |
25,400 |
|
Add: Net Profit |
32,700 |
84,900 |
Bank |
21,000 |
|
Creditors |
15,000 |
Furniture |
12,000 |
|
|
Outstanding Salary |
500 |
|
|
|
|
|
|
|
|
|
|
|
1,00,400 |
|
1,00,400 |
|
|
|
|
|
|
|
Working Notes:
|
Balance Sheet as on March 31, 2014 |
|||
|
Dr. |
|
|
Cr. |
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Creditors |
20,000 |
Debtors |
30,000 |
|
Outstanding Salaries |
400 |
Stock |
34,000 |
|
Capital |
56,200 |
Bank |
12,600 |
|
|
|
|
|
|
|
76,600 |
|
76,600 |
|
|
|
|
|
|
Bank Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
12,600 |
Creditors A/c |
1,82,000 |
|
Debtors A/c |
2,20,000 |
Salary A/c |
6,000 |
|
|
|
Rent A/c |
4,800 |
|
|
|
Advertisement A/c |
2,000 |
|
|
|
Printing A/c |
800 |
|
|
|
Drawings A/c |
4,000 |
|
|
|
Furniture A/c |
12,000 |
|
|
|
Balance c/d |
21,000 |
|
|
2,32,600 |
|
2,32,600 |
|
|
|
|
|
|
Debtors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
30,000 |
Bank A/c |
2,20,000 |
|
Sales A/c |
2,32,000 |
Balance c/d |
42,000 |
|
|
|
|
|
|
|
2,62,000 |
|
2,62,000 |
|
|
|
|
|
|
Creditors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Bank A/c |
1,82,000 |
Balance b/d |
20,000 |
|
Balance c/d |
15,000 |
Purchases A/c |
1,77,000 |
|
|
|
|
|
|
|
1,97,000 |
|
1,97,000 |
|
|
|
|
|
Rate of Gross Profit (on sales) = 20%
Gross Profit = 20% of 2,32,000 = 46,400
Gross Profit = Net Sales – Cost of Goods Sold
46,400 = 2,32,000 – Cost of Goods Sold
Cost of Goods Sold = 2,32,000 – 46,400 = ₹ 1,85,600
Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses – Closing Stock
1,85,600 = 34,000 + 1,77,000 – Closing Stock
Closing Stock = 34,000 + 1,77,000 – 1,85,600 = ₹ 25,400
Page No 23.53:
Question 24:
Ravi, who keeps his books on Single Entry System, had his capital on 31st March, 2016 ₹ 20,000 and on 1st April, 2015 was ₹ 16,700. He further informs that during the year, he withdrew for his personal expenses ₹ 9,400. He also sold his personal investment of ₹ 10,000 at 15% premium and brought that money into the business.
Prepare a statement of Profit or Loss.
Answer:
|
Statement of Profit/Loss |
|
|
Particulars |
Amount (₹) |
|
Closing Capital |
20,000 |
|
Less: Opening Capital |
(16,700) |
|
Less: Additional Capital |
(11,500) |
|
Add: Drawings |
9,400 |
|
Profit for the Year |
1,200 |
Page No 23.53:
Question 25:
Mohan commenced business on 1st April, 2012 with a capital of ₹ 50,000. On 1st January, 2013, he introduced ₹ 25,000 into business of which ₹ 10,000 was borrowed from Ram. His position on 31st March, 2013 was as under:
Assets: Cash in hand ₹ 4,000; Bank (Cr.) ₹ 6,500; Debtors ₹ 24,000; B/R ₹ 18,600.
Stock ₹ 25,400; Furniture ₹ 15,000; Prepaid expenses ₹ 1,000.
Liabilities : Creditors ₹ 13,500; B/P ₹ 4,800; Ram's Loan ₹ 10,000; Outstanding expenses ₹ 700.
Actual drawings were not known but his living expenses are ₹ 1,000 p.m. Depreciate furniture by 10%. Interest on loan is due @ 12% p.a.
Ascertain his profit or loss for the year 2012-13 & prepare final statement of affairs.
Answer:
|
Statement of Affairs
as on March 31, 2013
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Bank Overdraft | 6,500 | Bills Receivable | 18,600 |
| Creditors | 13,500 | Cash in Hand | 4,000 |
| Bills Payable | 4,800 | Stock | 25,400 |
| Ram’s Loan | 10,000 | Debtors | 24,000 |
| Outstanding Expenses | 700 | Furniture | 15,000 |
| Capital (Balancing Figure) | 52,500 | Prepaid Expenses | 1,000 |
| 88,000 | 88,000 | ||
|
Statement of Profit or Loss
for the year ended March 31, 2013
|
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | 52,500 | |
| Add: Drawings made during the year | 12,000 | |
| Less: Additional capital introduced during the year (25,000 – 10,000) | 15,000 | |
| Adjusted capital at the end of the year | 49,500 | |
| Less: Capital in the beginning of the year | 50,000 | |
| Loss Before Adjustment | (500) | |
| Less: Depreciation on Furniture | 1,500 | |
| Less: Outstanding interest on Loan | 300 | |
| Loss for the year | (2,300) | |
|
Final Statement of Affairs
as on March 31, 2013
|
|||||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
| Creditors | 13,500 | Cash in Hand | 4,000 | ||
| Opening Capital | 50,000 | Debtors | 24,000 | ||
|
Add: Additional Capital
|
15,000 | Bills Receivable | 18,600 | ||
|
Less: Net Loss
|
2,300 | Stock | 25,400 | ||
|
Less: Drawings
|
12,000 | 50,700 | Furniture | 15,000 | |
| Loan from Ram | 10,000 |
Less: Depreciation
|
1,500 | 13,500 | |
| Bank Overdraft | 6,500 | Prepaid Expenses | 1,000 | ||
| Bills Payable | 4,800 | ||||
| Outstanding Expenses | 700 | ||||
| Outstanding Interest on Loan | 300 | ||||
| 86,500 | 86,500 | ||||
Page No 23.53:
Question 26:
On April 1st, 2016, X started a business with ₹ 40,000 as his capital. On March 31st, 2017, 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 2016-17 X drew ₹ 24,000. On 1st October 2016, he introduced further capital amounting to ₹ 30,000. You are required to ascertain profit or loss made by him during the year 2016-17.
Adjustments:
(a) Plant is to be depreciated at 10%.
(b) A Provision of 5% is to be made against debtors.
Answer:
|
Statement of Affairs
as on March 31, 2017
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Bills Payable | 10,000 | Bank | 10,000 |
| Creditors | 30,000 | Plant | 68,000 |
| Capital (Balancing Figure) | 1,40,000 | Stock | 40,000 |
| Debtors | 50,000 | ||
| Furniture | 12,000 | ||
| 1,80,000 | 1,80,000 | ||
|
Statement of Profit or Loss
for the year ended March 31, 2017
|
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | 1,40,000 | |
| Add: Drawings made during the year | 24,000 | |
| Less: Additional capital introduced during the year | 30,000 | |
| Adjusted capital at the end of the year | 1,34,000 | |
| Less: Capital in the beginning of the year | 40,000 | |
| Profit Before Adjustment | 94,000 | |
| Less: Depreciation on Plant | 6,800 | |
| Less: Provision for Doubtful Debts | 2,500 | |
| Profit made during the year | 84,700 | |
|
Final Statement of Affairs
as on March 31, 2017
|
||||||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) | |||
| Creditors | 30,000 | Bank | 10,000 | |||
| Opening Capital | 40,000 | Furniture | 12,000 | |||
|
Add: Additional Capital
|
30,000 | Stock | 40,000 | |||
|
Add: Net Profit
|
84,700 | Debtors | 50,000 | |||
|
Less: Drawings
|
24,000 | 1,30,700 |
Less: Provision for Bad Debts
|
2,500 | 47,500 | |
| Bills Payable | 10,000 | Plant | 68,000 | |||
|
Less: Depreciation
|
6,800 | 61,200 | ||||
| 1,70,700 | 1,70,700 | |||||
Page No 23.54:
Question 27:
From the following information relating to the business of Mr. X who keeps books by single entry ascertain the profit or loss for the year ended 31st March, 2017:
| 1-4-2016 | 31-3-2017 | |||
| ₹ | ₹ | |||
| Machinery | 16,000 | 16,000 | ||
| Furniture | 4,000 | 4,000 | ||
| Stock | 14,000 | 10,000 | ||
| Sundry Debtors | 8,000 | 9,000 | ||
| Bank Balance | 400 | 3,600 | ||
| Sundry Creditors | 10,000 | 7,000 | ||
Mr. X withdrew ₹ 4,100 during the year to meet his household expenses. He introduced ₹ 600 as fresh capital. Machinery and furniture to be depreciated by 10% and 5% per annum respectively.
Answer:
|
Statement of Affairs
as on April 01, 2016
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Creditors | 10,000 | Cash at Bank | 400 |
| Capital (Balancing Figure) | 32,400 | Machinery | 16,000 |
| Stock | 14,000 | ||
| Debtors | 8,000 | ||
| Furniture | 4,000 | ||
| 42,400 | 42,400 | ||
|
Statement of Affairs
as on March 31, 2017
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Creditors | 7,000 | Cash at Bank | 3,600 |
| Capital (Balancing Figure) | 35,600 | Machinery | 16,000 |
| Stock | 10,000 | ||
| Debtors | 9,000 | ||
| Furniture | 4,000 | ||
| 42,600 | 42,600 | ||
|
Statement of Profit or Loss
for the year ended March 31, 2017
|
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | 35,600 | |
| Add: Drawings made during the year | 4,100 | |
| Less: Additional capital introduced during the year | 600 | |
| Adjusted capital at the end of the year | 39,100 | |
| Less: Capital in the beginning of the year | 32,400 | |
| Profit Before Adjustment | 6,700 | |
| Less: Depreciation on Machinery | 1,600 | |
| Less: Depreciation on Furniture | 200 | |
| Profit made during the year | 4,900 | |
Page No 23.54:
Question 28:
Mr. A does not keep proper records of his business. Following information is available from records kept by him:
| 1-4-2016 | 31-3-2017 | |||
| ₹ | ₹ | |||
| Cash | 20,000 | 18,000 | ||
| Bank | 30,000 | 33,000 | ||
| Debtors | 17,000 | 25,000 | ||
| Stock | 40,000 | 60,000 | ||
| Fixed Assets | 29,000 | 29,000 | ||
| Creditors | 52,000 | 32,000 | ||
| Loan | 10,000 | 25,000 | ||
Mr. A withdrew from the business ₹ 3,000 per month upto 30th September 2016 and thereafter ₹ 4,000 per month as drawings. ₹ 50,000 realised by the proprietor as maturity value of National Saving Certificates was invested in the business.
Prepare a statement showing net profit (or net loss) for the year.
Answer:
|
Statement of Affairs as on April 01, 2016 |
|||
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|
Creditors |
52,000 |
Cash in Hand |
20,000 |
|
Loan |
10,000 |
Cash at Bank |
30,000 |
|
Capital |
74,000 |
Debtors |
17,000 |
|
(Balancing Figure) |
|
Stock |
40,000 |
|
|
|
Fixed Assets |
29,000 |
|
|
1,36,000 |
|
1,36,000 |
|
|
|
|
|
|
Statement of Affairs as on March 31, 2017 |
|||
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|
Creditors |
32,000 |
Cash in Hand |
18,000 |
|
Loan |
25,000 |
Cash at Bank |
33,000 |
|
Capital |
1,08,000 |
Debtors |
25,000 |
|
(Balancing Figure) |
|
Stock |
60,000 |
|
|
|
Fixed Assets |
29,000 |
|
|
1,65,000 |
|
1,65,000 |
|
|
|
|
|
|
Statement of Profit or Loss for the year ended March 31, 2017 |
||
|
Particulars |
Amount (Rs) |
|
|
Capital at the end of the year |
1,08,000 |
|
|
|
Add: Drawings made during the year (3,000 × 6 + 4,000 × 6) |
42,000 |
|
|
Less: Additional capital introduced during the year |
50,000 |
|
Adjusted capital at the end of the year |
1,00,000 |
|
|
|
Less: Capital in the beginning of the year |
74,000 |
|
Profit made during the year |
26,000 |
|
|
|
||
Page No 23.54:
Question 29:
Mr. White does not keep his books properly. Following information is available from his books.
| 1-4-2015 | 31-3-2016 | |||
| ₹ | ₹ | |||
| Sundry Creditors | 45,000 | 93,000 | ||
| Loan from wife | 66,000 | 57,000 | ||
| S. Debtors | 22,500 | – | ||
| Land & Building | 89,600 | 90,000 | ||
| Cash in hand | 7,500 | 8,700 | ||
| Bank overdraft | 25,000 | – | ||
| Furniture | 1,300 | 1,300 | ||
| Stock | 34,000 | 25,000 | ||
During the year Mr. White sold his private car for ₹ 50,000 and invested this amount into the business. He withdrew from the business ₹ 1,500 per month upto 31st October, 2015 and thereafter ₹ 4,500 per month as drawings. You are required to prepare a statement of profit or loss and a statement of affairs as at March 31, 2016.
Answer:
|
Statement of Affairs
as on April 01, 2015
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Loan from Wife | 66,000 | Cash in Hand | 7,500 |
| Creditors | 45,000 | Furniture | 1,300 |
| Bank Overdraft | 25,000 | Stock | 34,000 |
| Capital (Balancing Figure) | 18,900 | Debtors | 22,500 |
| Land & Building | 89,600 | ||
| 1,54,900 | 1,54,900 | ||
|
Statement of Affairs
as on March 31, 2016
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Creditors | 93,000 | Cash in Hand | 8,700 |
| Loan from Wife | 57,000 | Furniture | 1,300 |
| Stock | 25,000 | ||
| Land & Building | 90,000 | ||
| Capital Overdrawn (Balancing Figure) | 25,000 | ||
| 1,50,000 | 1,50,000 | ||
|
Statement of Profit or Loss
for the year ended March 31, 2016
|
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | (25,000) | |
|
Add: Drawings made during the year (1,500 × 7 + 4,500 × 5)
|
33,000 | |
|
Less: Additional capital introduced during the year
|
50,000 | |
| Adjusted capital at the end of the year | (42,000) | |
|
Less: Capital in the beginning of the year
|
(18,900) | |
| Loss incurred during the year | (60,900) | |
Page No 23.56:
Question 30:
X who keeps incomplete records, gives you the following information:
| 1st April, 2016 | 31st March, 2017 | |||
| ₹ | ₹ | |||
| Stock in hand | 18,700 | 20,400 | ||
| Debtors | 12,000 | 14,000 | ||
| Creditors | 9,000 | 1,500 | ||
| Bills Receivable | 4,000 | 5,000 | ||
| Bills Payable | 1,000 | 200 | ||
| Furniture | 600 | 600 | ||
| Building | 12,000 | 12,000 | ||
| Bank Balance | 4,350 | 3,350 | ||
| (Overdraft) | ||||
You are also given the following information:
(i) A provision of ₹ 1,450 is required for bad and doubtful debts.
(ii) Depreciation @ 5% is to be written off on Building and furniture.
(iii) Wages outstanding ₹ 3,000; salaries outstanding ₹ 1,200.
(iv) Insurance has been prepaid to the extent of ₹ 250.
(v) Legal Expenses outstanding ₹ 700.
(vi) Drawings of Mr. X during the year were ₹ 7,520.
Prepare a statement of Profit as on 31st March, 2017, and a final statement of affairs as at that date.
Answer:
|
Statement of Affairs
as on March 31, 2016
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Bills Payable | 1,000 | Cash at Bank | 4,350 |
| Creditors | 9,000 | Stock | 18,700 |
| Capital (Balancing Figure) | 41,650 | Debtors | 12,000 |
| Bills Receivable | 4,000 | ||
| Furniture | 600 | ||
| Building | 12,000 | ||
| 51,650 | 51,650 | ||
|
Statement of Affairs
as on March 31, 2017
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Bills Payable | 200 | Stock | 20,400 |
| Creditors | 1,500 | Debtors | 14,000 |
| Bank Overdraft | 3,350 | Bills Receivable | 5,000 |
| Capital (Balancing Figure) | 46,950 | Furniture | 600 |
| Building | 12,000 | ||
| 52,000 | 52,000 | ||
|
Statement of Profit or Loss
for the year ended March 31, 2017
|
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | 46,950 | |
| Add: Drawings made during the year | 7,520 | |
| Less: Additional capital introduced during the year | ||
| Adjusted capital at the end of the year | 54,470 | |
| Less: Capital in the beginning of the year | 41,650 | |
| Profit Before Adjustment | 12,820 | |
| Less: Depreciation on Furniture | 30 | |
| Less: Depreciation on Building | 600 | |
| Less: Provision for Doubtful Debts | 1,450 | |
| Less: Outstanding Wages | 3,000 | |
| Less: Outstanding Salaries | 1,200 | |
| Less: Outstanding Legal Expenses | 00 | |
| Add: Prepaid Insurance | 250 | |
| Profit made during the year | 6,090 | |
|
Final Statement of Affairs
as on March 31, 2017
|
|||||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
| Creditors | 1,500 | Prepaid Insurance | 250 | ||
| Opening Capital | 41,650 | Bills Receivable | 5,000 | ||
|
Add: Net Profit
|
6,090 | Stock | 20,400 | ||
|
Less: Drawings
|
7,520 | 40,220 | Furniture | 600 | |
| Outstanding Wages | 3,000 |
Less: Depreciation
|
30 | 570 | |
| Outstanding Salaries | 1,200 | Debtors | 14,000 | ||
| Bills Payable | 200 |
Less: Provision for Bad Debts
|
1,450 | 12,550 | |
| Bank Overdraft | 3,350 | Building | 12,000 | ||
| Outstanding Legal Expenses | 700 |
Less: Depreciation
|
600 | 11,400 | |
| 50,170 | 50,170 | ||||
Page No 23.56:
Question 31:
The following information is available from Sachin, who maintains books of accounts on single entry system:
| 1st April, 2016 (₹) |
31st March, 2017 (₹) |
|||
| Cash and Bank | 20,000 | 21,000 | ||
| Sundry Debtors | 17,000 | 25,000 | ||
| Stock | 40,000 | 60,000 | ||
| Furniture | 29,000 | 29,000 | ||
| Sundry Creditors | 32,000 | 22,000 | ||
| 10% Loan from Mrs. Sachin | 30,000 | 30,000 | ||
Sachin withdrew ₹ 5,000 from the business every month for meeting his household expenses. During the year, he sold investments held by him privately for ₹ 35,000 and invested the amount in his business.
At the end of the year 2016-17, it was found that full year's interest on loan from Mrs. Sachin had not been paid. Depreciation @ 10% per annum was to be provided on furniture for the full year. Shop assistant was to be given a share of 5% on the profits ascertained before charging such share.
Calculate profit earned during the year ended 31st March, 2017 by Sachin.
Answer:
|
Statement of Affairs
as on April 01, 2016
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| 10% Loan from Mrs. Sachin | 30,000 | Cash and Bank | 20,000 |
| Creditors | 32,000 | Debtors | 17,000 |
| Capital (Balancing Figure) | 44,000 | Stock | 40,000 |
| Furniture | 29,000 | ||
| 1,06,000 | 1,06,000 | ||
|
Statement of Affairs
as on March 31, 2017
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| 10% Loan from Mrs. Sachin | 30,000 | Cash at Bank | 21,000 |
| Creditors | 22,000 | Debtors | 25,000 |
| Capital (Balancing Figure) | 83,000 | Stock | 60,000 |
| Furniture | 29,000 | ||
| 1,35,000 | 1,35,000 | ||
|
Statement of Profit or Loss
for the year ended March 31, 2017
|
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | 83,000 | |
| Add: Drawings made during the year (5,000 × 12) | 60,000 | |
| Less: Additional capital introduced during the year | 35,000 | |
| Adjusted capital at the end of the year | 1,08,000 | |
| Less: Capital in the beginning of the year | 44,000 | |
| Profit Before Adjustment | 64,000 | |
| Less: Depreciation on Furniture | 2,900 | |
| Less: Outstanding Interest on Loan | 3,000 | |
| 58,100 | ||
| Less: Shop Assistant’s Share (58,100 × 5/100) | 2,905 | |
| Profit made during the year | 55,195 | |
|
as on March 31,2017 |
||||||
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|||
|
Opening Capital |
44,000 |
|
Cash at Bank |
21,000 |
||
|
Add: Net Profit |
55,195 |
|
Debtors |
25,000 |
||
|
Add: Additional Capital Introduced |
35,000 |
|
Stock |
60,000 |
||
|
Less: Drawings |
60,000 |
74,195 |
Furniture |
29,000 |
|
|
|
Creditors |
22,000 |
Less: Depreciation |
2,900 |
26,100 |
||
|
Shop’s Assistant Share |
2,905 |
|
|
|||
|
10% Loan from Sachin |
30,000 |
|
|
|
||
|
Add: Outstanding Interest |
3,000 |
33,000 |
|
|
||
|
|
1,32,100 |
|
1,32,100 |
|||
|
|
|
|
|
|||
Page No 23.57:
Question 32:
A retail Trader has not kept proper books of accounts. Ascertain his profit or loss for the year ending 31st March, 2017, and prepare a final statement of affairs from the following information:
| 1st April, 2016 | 31st March, 2017 | |||
| ₹ | ₹ | |||
| Cash Balance | 3,500 | 4,100 | ||
| Bank Balance | Dr. 6,000 | Cr. 15,000 | ||
| Stock | 22,000 | 36,400 | ||
| Sundry Debtors | 18,800 | 34,500 | ||
| Sundry Creditors | 12,100 | 8,000 | ||
| Loan from X | – | 10,000 | ||
| Bills Receivable | 4,000 | – | ||
| Fixed Assets | 40,000 | 60,000 | ||
He withdrew from the business ₹ 1,500 per month for his personal use and ₹ 8,000 for giving a personal loan to his brother. He also used a house for his personal purposes, the rent of which at the rate of ₹ 900 per month and electricity charges at an average rate of ₹ 250 per month were paid from the business account.
He had received a lottery prize of ₹ 25,000, out of which he invested half the amount in business.
He has not paid two months' salary to his clerk @ ₹ 1,200 per month, but insurance premium @ ₹ 600 per annum was paid on 1st October, 2016 to run for one year.
Loan from X was taken on 1st July, 2016 on which interest was unpaid @ 18% p.a.
Fixed assets are to be depreciated @ 10% p.a.
Answer:
|
Statement of Affairs
as on April 01, 2016
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Creditors | 12,100 | Cash at Bank | 6,000 |
| Capital (Balancing Figure) | 82,200 | Stock | 22,000 |
| Debtors | 18,800 | ||
| Bills Receivable | 4,000 | ||
| Fixed Assets | 40,000 | ||
| Cash in Hand | 3,500 | ||
| 94,300 | 94,300 | ||
|
Statement of Affairs
as on March 31, 2017
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Loan from X | 10,000 | Stock | 36,400 |
| Creditors | 8,000 | Debtors | 34,500 |
| Bank Overdraft | 15,000 | Cash | 4,100 |
| Capital (Balancing Figure) | 1,02,000 | Fixed Assets | 60,000 |
| 1,35,000 | 1,35,000 | ||
|
Statement of Profit or Loss
for the year ended March 31, 2017
|
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | 1,02,000 | |
| Add: Drawings made during the year (WN) | 39,800 | |
| Less: Additional capital introduced during the year | 12,500 | |
| Adjusted capital at the end of the year | 1,29,300 | |
| Less: Capital in the beginning of the year | 82,200 | |
| Profit Before Adjustment | 47,100 | |
| Less: Depreciation on Fixed Assets | 6,000 | |
| Less: Outstanding Interest on Loan | 1,350 | |
| Less: Outstanding Salary | 2,400 | |
| Add: Prepaid Insurance | 300 | |
| Profit made during the year | 37,650 | |
|
Final Statement of Affairs
as on March 31, 2017
|
|||||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
| Creditors | 8,000 | Cash | 4,100 | ||
| Opening Capital | 82,200 | Stock | 36,400 | ||
|
Add: Additional Capital
|
12,500 | Debtors | 34,500 | ||
|
Add: Net Profit
|
37,650 | Prepaid Insurance | 300 | ||
|
Less: Drawings
|
39,800 | 92,550 | Fixed Assets | 60,000 | |
| Outstanding Salary | 2,400 |
Less: Depreciation
|
6,000 | 54,000 | |
| Loan from X | 10,000 | ||||
| Bank Overdraft | 15,000 | ||||
| Outstanding Interest on Loan | 1,350 | ||||
| 1,29,300 | 1,29,300 | ||||
Working Note: Calculation of Amount of Drawings
Page No 23.57:
Question 33:
Gopal keeps incomplete records. On 1st April, 2016, his position was as follows:
| Liabilities | (₹) | Assets | (₹) |
| Bank Overdraft | 7,500 | Cash | 6,400 |
| Sundry Creditors | 15,000 | Stock | 52,000 |
| Capital | 1,64,500 | Sundry Debtors | 28,000 |
| Fixed Assets | 1,00,000 | ||
| Prepaid Expenses | 600 | ||
| 1,87,000 | 1,87,000 | ||
His position on 31st March, 2017 was as follows:
Cash in hand ₹ 3,000; Cash at Bank ₹ 5,000; Stock ₹ 44,000; Debtors ₹ 21,000; Fixed Assets ₹ 80,000; Creditors ₹ 22,000.
You are informed that Gopal has taken stocks worth ₹ 4,500 for his private use and that he has been regularly transferring ₹ 2,000 per month from his business banking account by way of drawings. Out of his drawings he spent ₹ 15,000 for purchasing a Scooter for the business on 1st October, 2016.
You are requested to find out his profit or loss and to prepare the Statement of Affairs after considering the following :
1. Depreciate Fixed Assets and Scooter by 10% p.a.
2. Write off Bad-Debts ₹ 1,000 and provide 5% for doubtful debts on Sundry Debtors.
3. Commission earned but not received by him was ₹ 2,500.
Answer:
|
Statement of Affairs
as on March 31, 2017
|
|||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Creditors | 22,000 | Cash at Bank | 5,000 |
| Capital (Balancing Figure) | 1,46,000 | Cash in Hand | 3,000 |
| Stock | 44,000 | ||
| Debtors | 21,000 | ||
| Fixed Assets | 80,000 | ||
| Scooter | 15,000 | ||
| 1,68,000 | 1,68,000 | ||
|
Statement of Profit or Loss
for the year ended March 31, 2017
|
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | 1,46,000 | |
| Add: Drawings made during the year (24,000 + 4,500 - 15,000) | 13,500 | |
| Less: Additional capital introduced during the year | ||
| Adjusted capital at the end of the year | 1,59,500 | |
| Less: Capital in the beginning of the year | 1,64,500 | |
| Loss Before Adjustment | (5,000) | |
| Less: Depreciation on Fixed Assets | 8,000 | |
| Less: Depreciation on Scooter | 750 | |
| Less: Bad Debts | 1,000 | |
| Less: Provision for Doubtful Debts | 1,000 | |
| Add: Accrued Commission | 2,500 | |
| Loss incurred during the year | (13,250) | |
|
Final Statement of Affairs
as on March 31, 2017
|
|||||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) | ||
| Creditors | 22,000 | Cash in Hand | 3,000 | ||
| Opening Capital | 1,64,500 | Cash at Bank | 5,000 | ||
|
Less: Net Loss
|
13,250 | Stock | 44,000 | ||
|
Less: Drawings
|
13,500 | 1,37,750 | Debtors | 21,000 | |
|
Less: Bad Debts
|
1,000 | ||||
|
Less: Provision for Bad Debts
|
1,000 | 19,000 | |||
| Fixed Assets | 80,000 | ||||
|
Less: Depreciation
|
8,000 | 72,000 | |||
| Scooter | 15,000 | ||||
|
Less: Depreciation
|
750 | 14,250 | |||
| Accrued Commission | 2,500 | ||||
| 1,59,750 | 1,59,750 | ||||
Page No 23.58:
Question 34:
A retail trader did not keep his books on the double entry system. Following balances were obtained from his books:
| 1st April 2013 | 31st March 2014 | |
| ₹ | ₹ | |
| Sundry Debtors | 32,000 | 38,800 |
| Sundry Creditors | 20,300 | 24,600 |
| Cash | 6,000 | – |
| Stock | 22,000 | 28,000 |
| Office Equipments | 8,000 | 8,000 |
| Machinery | 30,000 | 40,000 |
Following further details of the transactions for the year ended 31st March, 2014 are available from his incomplete records:
| ₹ | |
| Sales (including Cash Sales ₹ 62,000) | 1,20,000 |
| Purchases (including Cash Purchases ₹ 25,000) | 72,000 |
| Salaries | 16,500 |
| Drawings | 8,500 |
| Rent, Taxes & Insurance | 7,100 |
| Bad-Debts written off | 2,400 |
1. ₹ 1,500 are outstanding for salaries.
2. Insurance was unexpired to the extent of ₹ 800.
3. Goods worth ₹ 2,000 were used by the proprietor for personal use.
Answer:
|
Trading Account for the year ended March 31, 2014 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Opening Stock |
22,000 |
Sales (Cash + Credit) |
1,20,000 |
|
Purchases (Cash + Credit - Drawings) |
70,000 |
Closing Stock |
28,000 |
|
Gross Profit |
56,000 |
|
|
|
|
1,48,000 |
|
1,48,000 |
|
|
|
|
|
|
Profit & Loss Account for the year ended March 31, 2014 |
||||
|
Dr. |
|
|
Cr. |
|
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
|
Salaries |
16,500 |
|
Gross Profit |
56,000 |
|
Add: Outstanding |
1,500 |
18,000 |
|
|
|
Rent, Rates & Insurance |
7,100 |
|
|
|
|
Less: Prepaid |
800 |
6,300 |
|
|
|
Bad Debts |
2,400 |
|
|
|
|
Net Profit |
29,300 |
|
|
|
|
|
56,000 |
|
56,000 |
|
|
|
|
|
||
|
Balance Sheet as on March 31, 2014 |
||||
|
Dr. |
|
|
Cr. |
|
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
|
Capital |
77,700 |
|
Debtors |
38,800 |
|
Less: Drawings |
10,500 |
|
Cash |
7,000 |
|
Add: Net Profit |
29,300 |
96,500 |
Stock |
28,000 |
|
Closing Creditors |
24,600 |
Office Equipment |
8,000 |
|
|
Outstanding Salary |
1,500 |
Machinery |
40,000 |
|
|
|
|
Unexpired Insurance |
800 |
|
|
|
1,22,600 |
|
1,22,600 |
|
|
|
|
|
|
|
Working Notes:
|
Balance Sheet as on March 31, 2013 |
|||
|
Dr. |
|
|
Cr. |
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Creditors |
20,300 |
Debtors |
32,000 |
|
Capital (Balancing figure) |
77,700 |
Cash |
6,000 |
|
|
|
Stock |
22,000 |
|
|
|
Office Equipments |
8,000 |
|
|
|
Machinery |
30,000 |
|
|
|
|
|
|
|
98,000 |
|
98,000 |
|
|
|
|
|
|
Cash Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
6,000 |
Creditors A/c |
42,700 |
|
Debtors A/c |
48,800 |
Purchases A/c |
25,000 |
|
Sales A/c |
62,000 |
Salary A/c |
16,500 |
|
|
|
Drawings |
8,500 |
|
|
|
Rent, Rates & Insurance |
7,100 |
|
|
|
Machinery A/c |
10,000 |
|
|
|
Balance c/d |
7,000 |
|
|
1,16,800 |
|
1,16,800 |
|
|
|
|
|
|
Debtors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
32,000 |
Cash A/c |
48,800 |
|
Sales A/c |
58,000 |
Bad-Debts A/c |
2,400 |
|
|
|
Balance c/d |
38,800 |
|
|
90,000 |
|
90,000 |
|
|
|
|
|
|
Creditors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Cash A/c |
42,700 |
Balance b/d |
20,300 |
|
Balance c/d |
24,600 |
Purchases A/c |
47,000 |
|
|
|
|
|
|
|
67,300 |
|
67,300 |
|
|
|
|
|
Page No 23.59:
Question 35:
Mr. Manoj keeps incomplete records. During the year 2014-15 the analysis of his cash book was as under:-
| (₹) | (₹) | |||||
| Receipts from Debtors | 6,20,200 | Bank Overdraft (1-4-2014) | 16,500 | |||
| Cash Sales | 2,08,000 | Salaries | 22,000 | |||
| Additional Capital introduced | 50,000 | Rent | 11,000 | |||
| Miscellaneous receipts | 1,800 | Payment to Creditors | 5,20,000 | |||
| Bank Overdraft (31-3-2015) | 2,500 | Furniture purchased (1-10-2014) | 75,000 | |||
| Cash Purchases | 2,10,000 | |||||
| General Expenses | 8,000 | |||||
| Drawings | 20,000 | |||||
| 8,82,500 | 8,82,500 | |||||
| Assets and Liabilities as on: | 1st April, 2014 ₹ |
31st March, 2015 ₹ |
| Sundry Debtors | 62,000 | ? |
| Sundry Creditors | 46,000 | 30,000 |
| Stock | 58,000 | 72,000 |
| Furniture | 25,000 | ? |
Other Informations:
(i) Credit sales during the year were ₹ 7,00,000
(ii) Sales Returns were ₹ 10,000
(iii) Discount allowed to debtors ₹ 8,400
(iv) Discount received from creditors ₹ 6,000
(v) Bad-debts written off during the year ₹ 11,400
Adjustments:
(i) Write off further bad-debts ₹ 2,000.
(ii) Provide 5% for doubtful debts and 2% for discount on debtors and creditors.
(iii) Charge 10% p.a. depreciation on furniture.
(iv) One month salaries and one month rent was outstanding.
Prepare Trading and Profit & Loss Account for the year ended 31st March, 2015 and a Balance Sheet as at that date.
Answer:
|
Trading Account for the year ended March 31, 2015 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Opening Stock |
58,000 |
Sales (Cash + Credit – Returns) |
8,98,000 |
|
Purchases (Cash + Credit) |
7,20,000 |
Closing Stock |
72,000 |
|
Gross Profit |
1,92,000 |
|
|
|
|
9,70,000 |
|
9,70,000 |
|
|
|
|
|
|
Profit & Loss Account for the year ended March 31, 2015 |
||||
|
Dr. |
|
|
Cr. |
|
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
|
Salaries |
22,000 |
|
Gross Profit |
1,92,000 |
|
Add: Outstanding |
2,000 |
24,000 |
Provision for Discount on Creditors |
600 |
|
Rent |
11,000 |
|
Miscellaneous Receipts |
1,800 |
|
Add: Outstanding |
1,000 |
12,000 |
Discount Received |
6,000 |
|
General Expenses |
8,000 |
|
|
|
|
Bad Debts (2,000 + 11,400) |
13,400 |
|
|
|
|
Add: Provision for Doubtful Debts |
5,500 |
18,900 |
|
|
|
Provision for Discount on Debtors |
2,090 |
|
|
|
|
Discount Allowed |
8,400 |
|
|
|
|
Depreciation on Furniture (2,500 + 3,750) |
6,250 |
|
|
|
|
Net Profit |
1,20,760 |
|
|
|
|
|
2,00,400 |
|
2,00,400 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2015 |
||||
|
Dr. |
|
|
Cr. |
|
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
|
Capital (82,500 + 50,000) |
1,32,500 |
|
Debtors (1,12,000 – 2,000 –5,500 – 2,090) |
1,02,410 |
|
Less: Drawings |
20,000 |
|
Stock |
72,000 |
|
Add: Net Profit |
1,20,760 |
2,33,260 |
Furniture (25,000 + 75,000 – 6,250) |
93,750 |
|
Closing Creditors (30,000 – 600) |
29,400 |
|
|
|
|
Outstanding Salary |
2,000 |
|
|
|
|
Outstanding Rent |
1,000 |
|
|
|
|
Bank Overdraft |
2,500 |
|
|
|
|
|
|
|
|
|
|
|
2,68,160 |
|
2,68,160 |
|
|
|
|
|
|
|
Working Notes:
|
Balance Sheet as on March 31, 2014 |
|||
|
Dr. |
|
|
Cr. |
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Creditors |
46,000 |
Debtors |
62,000 |
|
Loan |
16,500 |
Stock |
58,000 |
|
Capital (Balancing figure) |
82,500 |
Furniture |
25,000 |
|
|
1,45,000 |
|
1,45,000 |
|
|
|
|
|
|
Debtors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
62,000 |
Cash A/c |
6,20,200 |
|
Sales A/c |
7,00,000 |
Sales Return A/c |
10,000 |
|
|
|
Discount Allowed A/c |
8,400 |
|
|
|
Bad Debts A/c |
11,400 |
|
|
|
Balance c/d |
1,12,000 |
|
|
7,62,000 |
|
7,62,000 |
|
|
|
|
|
|
Creditors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Cash A/c |
5,20,000 |
Balance b/d |
46,000 |
|
Discount Received A/c |
6,000 |
Purchases A/c |
5,10,000 |
|
Balance c/d |
30,000 |
|
|
|
|
5,56,000 |
|
5,56,000 |
|
|
|
|
|
Page No 23.60:
Question 36:
Sh. Param Bhushan does not maintain proper books of accounts. From the following, prepare his trading and profit & loss account for the year ended 31st March, 2015, together with balance sheet as at that date:
| Liabilities | (₹) | Assets | (₹) | |||
| Sundry Creditors | 80,000 | Cash | 22,000 | |||
| Outstanding Salaries | 4,000 | Sundry Debtors | 1,50,000 | |||
| Capital | 8,08,000 | Stock | 1,20,000 | |||
| Plant and Machinery | 2,00,000 | |||||
| Freehold Premises | 4,00,000 | |||||
| 8,92,000 | 8,92,000 | |||||
Cash book analysis shows the following:
| ₹ | |
| Payment to Creditors | 4,00,000 |
| Staff Salaries | 76,000 |
| Rent Paid | 17,300 |
| General Expenses (including insurance premium of ₹ 2,400 paid on 1st January 2015 to run for one year) |
8,700 |
| Personal Withdrawals | 12,000 |
| Received from Debtors | 5,50,000 |
| Cash Sales | 1,10,000 |
| Purchase of Computers (on 1st January, 2015) | 40,000 |
| Purchase of Furniture (on 1st January, 2015) | 60,000 |
The following further information is available:
Closing Stock ₹ 1,35,000; Closing Debtors ₹ 1,92,000; Closing Creditors ₹ 72,000; Outstanding Salaries at the end ₹ 6,000; General Expenses include ₹ 5,000 for house rent of Sh. Param Bhushan and Cash Sale include ₹ 30,000 for sale of his personal jewellery.
Create a provision of for doubtful debts and depreciate plant and machinery by 10% p.a. and computers and furniture by 20% p.a. Also provide 5% for group incentive commission to staff on net profit after charging such commission.
Answer:
|
Trading Account for the year ended March 31, 2015 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Opening Stock |
1,20,000 |
Sales (Cash + Credit) |
6,72,000 |
|
Purchases (Credit) |
3,92,000 |
Closing Stock |
1,35,000 |
|
Gross Profit |
2,95,000 |
|
|
|
|
8,07,000 |
|
8,07,000 |
|
|
|
|
|
|
Profit & Loss Account for the year ended March 31, 2015 |
||||
|
Dr. |
|
|
Cr. |
|
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
|
Staff Salaries |
76,000 |
Gross Profit |
2,95,000 |
|
|
Rent Paid |
17,300 |
|
|
|
|
General Expenses |
1,300 |
|
|
|
|
Insurance Premium |
600 |
|
|
|
|
Outstanding Salaries (6,000 – 2,000) |
2,000 |
|
|
|
|
Provision for Doubtful Debts |
4,800 |
|
|
|
|
Depreciation on |
|
|
|
|
|
Plant & Machinery |
20,000 |
|
|
|
|
Computer |
2,000 |
|
|
|
|
Furniture |
3,000 |
25,000 |
|
|
|
Staff Commission |
8,000 |
|
|
|
|
Net Profit |
1,60,000 |
|
|
|
|
|
2,95,000 |
|
2,95,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2015 |
||||
|
Dr. |
|
|
Cr. |
|
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
|
Capital (8,08,000 + 30,000) |
8,38,000 |
|
Cash |
68,000 |
|
Less: Drawings |
17,000 |
|
Debtors (1,92,000 – 4,800) |
1,87,200 |
|
Add: Net Profit |
1,60,000 |
9,81,000 |
Stock |
1,35,000 |
|
Closing Creditors |
72,000 |
Plant &Machinery (2,00,000 – 20,000) |
1,80,000 |
|
|
Outstanding Salary |
6,000 |
Computer (40,000 – 2,000) |
38,000 |
|
|
Staff Commission Payable |
8,000 |
Furniture (60,000 – 3,000) |
57,000 |
|
|
|
|
Freehold Premises |
4,00,000 |
|
|
|
|
Prepaid Insurance Premium |
1,800 |
|
|
|
10,67,000 |
|
10,67,000 |
|
|
|
|
|
|
|
Working Notes:
|
Cash Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
22,000 |
Creditors A/c |
4,00,000 |
|
Debtors A/c |
5,50,000 |
Staff Salaries |
76,000 |
|
Sales A/c |
80,000 |
Rent |
17,300 |
|
Capital A/c |
30,000 |
General Expenses |
3,700 |
|
|
|
Drawings (12,000 + 5,000) |
17,000 |
|
|
|
Computer |
40,000 |
|
|
|
Furniture |
60,000 |
|
|
|
Balance c/d |
68,000 |
|
|
|
|
|
|
|
6,82,000 |
|
6,82,000 |
|
|
|
|
|
|
Debtors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Balance b/d |
1,50,000 |
Cash A/c |
5,50,000 |
|
Sales A/c |
5,92,000 |
Balance c/d |
1,92,000 |
|
|
|
|
|
|
|
7,42,000 |
|
7,42,000 |
|
|
|
|
|
|
Creditors Account |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
Cash A/c |
4,00,000 |
Balance b/d |
80,000 |
|
Balance c/d |
72,000 |
Purchases A/c |
3,92,000 |
|
|
|
|
|
|
|
4,72,000 |
|
4,72,000 |
|
|
|
|
|
Page No 23.61:
Question 37:
Sonam keeps his books on single entry and provides you with the following information:
| 31-12-2017 | 31-12-2018 | |
| ₹ | ₹ | |
| Furniture and Fitting | 50,000 | 60,000 |
| Stock | 30,000 | 10,000 |
| Sundry Debtors | 60,000 | 70,000 |
| Sundry Creditors | 20,000 | NIL |
| Prepaid Expenses | NIL | 2,000 |
| Outstanding Expenses | 6,000 | 10,000 |
| Cash in hand | 11,000 | 3,000 |
| Receipts and Payments in 2018: | ||
| Receipts from Debtors | 2,10,000 | |
| Paid to Creditors | 1,00,000 | |
| Cartage | 20,000 | |
| Drawings | 1,20,000 | |
| Sundry Expenses | 1,60,000 | |
| Furniture Purchased for Cash | 10,000 |
Prepare Trading and Profit & Loss Account for the year ended 31 December, 2018 after providing for bad debts at 10%.
There was a considerable amount of Cash Sales.
Answer:
|
Trading Account
for the year ended 31 December, 2018
|
|||
|
Dr.
|
|
|
Cr.
|
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
Opening Stock
|
30,000
|
Sales (Cash + Credit)
|
4,12,000
|
|
Purchases (Credit)
|
80,000
|
Closing Stock
|
10,000
|
|
Cartage
|
20,000
|
|
|
|
Gross Profit
|
2,92,000
|
|
|
|
|
4,13,000
|
|
4,13,000
|
|
|
|
|
|
|
Profit & Loss Account
for the year ended 31 December, 2018
|
|||
|
Dr.
|
|
|
Cr.
|
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
Sundry Expenses
|
1,60,000
|
Gross Profit
|
2,92,000
|
|
Provision for Bad Debts
|
7,000
|
Prepaid Expenses
|
2,000
|
|
Outstanding Expenses
|
4,000
|
|
|
|
Net Profit
|
1,23,000
|
|
|
|
|
2,94,000
|
|
2,94,000
|
|
|
|
|
|
|
Balance Sheet
as on 31 December, 2018
|
||||
|
Dr.
|
|
|
Cr.
|
|
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
|
|
Capital
|
1,25,000
|
|
Furniture & Fittings
|
60,000
|
|
Less: Drawings
|
1,20,000
|
|
Stock
|
10,000
|
|
Add: Net Profit
|
1,23,000
|
1,28,000
|
Debtors (70,000 – 7,000)
|
63,000
|
|
Outstanding Expenses
|
10,000
|
Prepaid Expenses
|
2,000
|
|
|
|
|
Cash in hand
|
3,000
|
|
|
|
|
|
|
|
|
|
1,38,000
|
|
1,38,000
|
|
|
|
|
|
|
|
|
Balance Sheet
as on 31 December, 2017
|
|||
|
Dr.
|
|
|
Cr.
|
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
|
Creditors
|
20,000
|
Furniture & Fittings
|
50,000
|
|
Outstanding Expenses
|
6,000
|
Stock
|
30,000
|
|
Capital (Balancing figure)
|
1,25,000
|
Debtors
|
60,000
|
|
|
|
Cash in hand
|
11,000
|
|
|
|
|
|
|
|
1,51,000
|
|
1,51,000
|
|
|
|
|
|
|
Cash Account
|
|||
|
Dr.
|
|
|
Cr.
|
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
Balance b/d
|
11,000
|
Creditors A/c
|
1,00,000
|
|
Debtors A/c
|
2,10,000
|
Cartage A/c
|
20,000
|
|
Sales A/c (Balancing Figure)
|
1,92,000
|
Drawings A/c
|
1,20,000
|
|
|
|
Sundry Expenses A/c
|
1,60,000
|
|
|
|
Furniture A/c
|
10,000
|
|
|
|
Balance c/d
|
3,000
|
|
|
4,13,000
|
|
4,13,000
|
|
|
|
|
|
|
Debtors Account
|
|||
|
Dr.
|
|
|
Cr.
|
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
Balance b/d
|
60,000
|
Cash A/c
|
2,10,000
|
|
Sales A/c
|
2,20,000
|
Balance c/d
|
70,000
|
|
|
|
|
|
|
|
2,80,000
|
|
2,80,000
|
|
|
|
|
|
|
Creditors Account
|
|||
|
Dr.
|
|
|
Cr.
|
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
Cash A/c
|
1,00,000
|
Balance b/d
|
20,000
|
|
|
|
Purchases A/c
|
80,000
|
|
|
|
|
|
|
|
1,00,000
|
|
1,00,000
|
|
|
|
|
|
Page No 23.61:
Question 38:
Ascertain the value of Closing Stock from the following:
| ₹ | |
| Stock in the beginning | 18,000 |
| Purchases | 69,000 |
| Sales | 1,02,000 |
| Sales Return | 2,000 |
| Freight | 10,000 |
Answer:
Rate of Gross Profit (on cost) = 25%
Rate of Gross Profit (on sales) = 20%
Gross Profit = 20% of 1,00,000 = 20,000
Gross Profit = Net Sales – Cost of Goods Sold
20,000 = 1,00,000 – Cost of Goods Sold
Cost of Goods Sold = 1,00,000 – 20,000 = ₹ 80,000
Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses – Closing Stock
80,000 = 18,000 + 69,000 + 10,000 – Closing Stock
Closing Stock = 18,000 + 69,000 + 10,000 – 80,000 = ₹ 17,000
Page No 23.61:
Question 39:
From the following particulars, ascertain the value of Opening Stock:-
| ₹ | ₹ | ||
| Purchases | 60,000 | Wages | 3,000 |
| Sales | 1,05,000 | Carriage Outwards | 1,200 |
| Closing Stock | 20,000 | Rate of Gross Profit on cost of goods sold | 50% |
Answer:
Rate of Gross Profit (on cost) = 50%
Rate of Gross Profit (on sales) = 33.33%
Gross Profit = 33.33% of (1,05,000) = 35,000
Gross Profit = Net Sales – Cost of Goods Sold
35,000 = 1,05,000 – Cost of Goods Sold
Cost of Goods Sold = 1,05,000 – 35,000 = ₹ 70,000
Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses – Closing Stock
70,000 = Opening Stock + 60,000 + 3,000 – 20,000
Opening Stock = 70,000 – 60,000 – 3,000 + 20,000 = ₹ 27,000
Page No 23.62:
Question 40:
Mr. Bhardwaj has kept incomplete records. He submits to you the following information:
| (₹) | (₹) | |||||
| Sundry Creditors | 18,000 | Cash at Bank | 7,600 | |||
| Capital | 82,000 | Sundry Debtors | 42,400 | |||
| Stock | 20,000 | |||||
| Machinery | 30,000 | |||||
| 1,00,000 | 1,00,000 | |||||
Bhardwaj banks all receipts and makes all payments only by means of cheques. Following is the analysis of his bank transactions:
| ₹ | |
| Receipt from Debtors | 96,400 |
| Payment to Creditors | 62,500 |
| Payment of Freight & Carriage | 2,000 |
| Payment of Office Expenses | 10,800 |
| Drawings | 12,200 |
Sundry Debtors on 31st March, 2015 were ₹ 36,000 and Sundry Creditors were ₹ 25,000. No information is available regarding stock-in-trade on 31st March, 2015, but it is ascertained that Mr. Bhardwaj takes 20% profit on Sales. Prepare Bhardwaj's Bank A/c, Trading and Profit & Loss A/c and a Balance Sheet as at 31st March, 2015.
Answer:
|
Trading Account
for the year ended December 31, 2007
|
|||
|
Dr.
|
|
|
Cr.
|
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
Opening Stock
|
20,000
|
Sales (Credit)
|
90,000
|
|
Purchases (Credit)
|
69,500
|
Closing Stock
|
19,500
|
|
Freight & Carriage
|
2,000
|
|
|
|
Gross Profit
|
18,000
|
|
|
|
|
1,09,500
|
|
1,09,500
|
|
|
|
|
|
|
Profit & Loss Account
for the year ended December 31, 2007
|
|||
|
Dr.
|
|
|
Cr.
|
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
Office Expenses
|
10,800
|
Gross Profit
|
18,000
|
|
Net Profit
|
7,200
|
|
|
|
|
|
|
|
|
|
18,000
|
|
18,000
|
|
|
|
|
|
|
Balance Sheet
as on December 31, 2007
|
||||
|
Dr.
|
|
|
Cr.
|
|
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
|
|
Capital
|
82,000
|
|
Cash at Bank
|
16,500
|
|
Less: Drawings
|
12,200
|
|
Debtors
|
36,000
|
|
Add: Net Profit
|
7,200
|
77,000
|
Stock
|
19,500
|
|
Closing Creditors
|
25,000
|
Machinery
|
30,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,02,000
|
|
1,02,000
|
|
|
|
|
|
|
|
|
Bank Account
|
|||
|
Dr.
|
|
|
Cr.
|
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
Balance b/d
|
7,600
|
Creditors A/c
|
62,500
|
|
Debtors A/c
|
96,400
|
Freight & Carriage A/c
|
2,000
|
|
|
|
Office Expenses A/c
|
10,800
|
|
|
|
Drawings A/c
|
12,200
|
|
|
|
Balance c/d
(Balancing Figure) |
16,500
|
|
|
1,04,000
|
|
1,04,000
|
|
|
|
|
|
|
Debtors Account
|
|||
|
Dr.
|
|
|
Cr.
|
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
Balance b/d
|
42,400
|
Bank A/c
|
96,400
|
|
Sales A/c
|
90,000
|
Balance c/d
|
36,000
|
|
|
|
|
|
|
|
1,32,400
|
|
1,32,400
|
|
|
|
|
|
|
Creditors Account
|
|||
|
Dr.
|
|
|
Cr.
|
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
Bank A/c
|
62,500
|
Balance b/d
|
18,000
|
|
Balance c/d
|
25,000
|
Purchases A/c
|
69,500
|
|
|
|
|
|
|
|
87,500
|
|
87,500
|
|
|
|
|
|
Page No 23.62:
Question 41:
From the following records kept on single entry basis, prepare final accounts assuming that ratio of gross profit to sales is 25%:
| 1-1-2018 | 31-12-2018 | |
| ₹ | ₹ | |
| Cash at Bank | 1,400 | 1,800 |
| Debtors | ? | 2,400 |
| Stock | ? | 1,700 |
| Fixed Assets | 10,000 | 10,000 |
| Creditors | 1,600 | ? |
| Loan | 1,000 | 800 |
Transactions during the year 2018:
| ₹ | |
| Collections from debtors | 9,300 |
| Cash Sales | 1,000 |
| Credit Sales | 9,000 |
| Payment to Creditors | 6,100 |
| Cash Purchase | 1,600 |
| Credit Purchase | 6,400 |
| Drawings | 1,000 |
| Business Expenses | 1,000 |
| Discount Received | 200 |
| Discount Allowed | 100 |
Answer:
|
Trading Account
for the year ended December 31, 2018
|
|||
|
Dr.
|
|
|
Cr.
|
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
Opening Stock
|
1,200
|
Sales (Cash + Credit)
|
10,000
|
|
Purchases (Cash + Credit)
|
8,000
|
Closing Stock
|
1,700
|
|
Gross Profit
|
2,500
|
|
|
|
|
11,700
|
|
11,700
|
|
|
|
|
|
|
Profit & Loss Account
for the year ended December 31, 2018
|
|||
|
Dr.
|
|
|
Cr.
|
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
Business Expenses
|
1,000
|
Gross Profit
|
2,500
|
|
Discount Allowed
|
100
|
Discount Received
|
200
|
|
Net Profit
|
1,600
|
|
|
|
|
|
|
|
|
|
2,700
|
|
2,700
|
|
|
|
|
|
|
Balance Sheet
as on December 31, 2018
|
||||
|
Dr.
|
|
|
Cr.
|
|
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
|
|
Capital
|
12,800
|
|
Cash at Bank
|
1,800
|
|
Less: Drawings
|
1,000
|
|
Debtors
|
2,400
|
|
Add: Net Profit
|
1,600
|
13,400
|
Stock
|
1,700
|
|
Closing Creditors
|
1,700
|
Fixed Assets
|
10,000
|
|
|
Loan
|
800
|
|
|
|
|
|
|
|
|
|
|
|
15,900
|
|
15,900
|
|
|
|
|
|
|
|
|
Balance Sheet
as on January 01, 2018
|
|||
|
Dr.
|
|
|
Cr.
|
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount
(₹)
|
|
Creditors
|
1,600
|
Cash at Bank
|
1,400
|
|
Loan
|
1,000
|
Debtors
|
2,800
|
|
Capital (Balancing figure)
|
12,800
|
Stock
|
1,200
|
|
|
|
Fixed Assets
|
10,000
|
|
|
|
|
|
|
|
15,400
|
|
15,400
|
|
|
|
|
|
|
Debtors Account
|
|||
|
Dr.
|
|
|
Cr.
|
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
Balance b/d
|
2,800
|
Cash A/c
|
9,300
|
|
Sales A/c
|
9,000
|
Discount Allowed A/c
|
100
|
|
|
|
Balance c/d
|
2,400
|
|
|
11,800
|
|
11,800
|
|
|
|
|
|
|
Creditors Account
|
|||
|
Dr.
|
|
|
Cr.
|
|
Particulars
|
Amount
(₹)
|
Particulars
|
Amount
(₹)
|
|
Cash A/c
|
6,100
|
Balance b/d
|
1,600
|
|
Discount Received A/c
|
200
|
Purchases A/c
|
6,400
|
|
Balance c/d
|
1,700
|
|
|
|
|
8,000
|
|
8,000
|
|
|
|
|
|
Gross Profit = 25% of (1,000 + 9,000) = 2,500
Gross Profit = Net Sales – Cost of Goods Sold
2,500 = 10,000 – Cost of Goods Sold
Cost of Goods Sold = 10,000 – 2,500 = ₹ 7,500
Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses – Closing Stock
7,500 = Opening Stock + (1,600 +6,400) + 0 – 1,700
Opening Stock = 7,500 – 8,000 + 1,700 = ₹ 1,200
View NCERT Solutions for all chapters of Class 13