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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 23.43:

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:


Closing Capital + Drawings - Additional Capital - Opening Capital = ProfitsClosing Capital = Opening Capital+ Additional Capital + Profits - DrawingsClosing Capital =  90,000 + 40,000 + 25,000 - 17,000 Closing Capital = Rs 1,38,000

Page No 23.44:

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

Value of Investments  = 80,000 Loss =  80,000 × 5% =   4,000_Sale Value of Investments = Rs 76,000(Aditional Capital) 

Page No 23.44:

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
During the year Mr. X introduced in the business the amount realised on sale of ₹ 10,000 investments at the premium of 5%. Personal expenses of Mr. X paid from business account amounted to ₹ 1,250 per month. Prepare a statement to calculate Profit (or Loss) during the year.

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

Value of Investments  = 10,000 Premium                   =   500 (10,000 × 5%)Sale Value of Investments = Rs 10,500(Aditional Capital) 



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 23.45:

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

Cash Withdrawn                    =    96,000 (8,000 × 12)Payment of Income tax          =    20,000Instalment of Personal Loan  = 1,80,000 (15,000 × 12)                                           Rs  2,96,000

WN 2: Calculation of additional capital

Value of Shares = 1,00,000 Add: Profit       =    20,000Sale Value        = Rs 1,20,000Aditional Capital = Rs 60,000 (1,20,0002) 



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 23.46:

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 2006 32,000
Balance of Creditors on 31st March, 2007 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 23.47:

Question 15:

Anand Mohan has kept incomplete books. From the following particulars, prepare his Final Accounts for the year ending 31st March, 2012 :
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, 2011
(₹)
31st March, 2012
(₹)
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

 

 

 

 

 
Working Notes:

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 2011-12:

Summary of his Cash Book
  (₹)   (₹)
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, 2011
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, 2011 - Debtors ₹ 24,200; Furniture ₹ 18,000; Stock ₹ 30,000; Creditors ₹ 18,000.
The following balances existed on 31st March, 2012 - 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, 2012 and a Balance Sheet as at that date.

Answer:

Trading Account

for the year ended March 31, 2012

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, 2012

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, 2012

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

 

 

 

 

 
Working Notes:

Balance Sheet

as on March 31, 2011

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 23.48:

Question 17:

Mr. Asif Ali, a retail trader, who keeps Incomplete Records gives you the following information for the year 2011-12:

Summary of Cash Transactions
  (₹)   (₹)
Received from Debtors 38,000 Bank Overdraft on 1-4-2011 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 31-3-2012 1,200
       
  64,800 64,800
   

The Assets and Liabilities were as follows:
  31st March 2011
31st March 2012
Stock 15,000 12,000
Fixed Assets 25,000 25,000
Sundry Debtors 12,000 ?
  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, 2012.

Answer:

Trading Account

for the year ended March 31, 2012

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, 2012

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, 2012

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

 

 

 

 

 

Working Notes:

Balance Sheet

as on March 31, 2011

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 23.49:

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, 2008, 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, 2009, 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, 2009, and Balance Sheet as at 31st March, 2009.

Answer:

Trading Account
for the year ended March 31, 2009
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, 2009
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, 2009
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 23.51:

Question 22:

Chakravarti does not maintain proper books of accounts. Following information is obtained from his books for the year ended 31st March, 2008:
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 31-3-2008 16,700
       

Assets and Liabilities:
  1-4-2007
31-3-2008
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, 2008 was valued at ₹ 20,000 but Chakravarti has no record of the Stock on 1st April, 2007. 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, 2008 and a Balance Sheet as at that date.

Answer:

Trading Account

for the year ended March 31, 2008

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, 2008

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, 2008

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, 2007

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
(Balancing figure)

56,200

Bank

12,600

 

 

 

 

 

76,600

 

76,600

 

 

 

 

 

Bank Account

Dr.

 

 

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

Balance b/d
(Balancing Figure)

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