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Page No 18.65:

Answer:

Trading Account

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening stock

1,600

Sales

4,200

Purchases

2,000

Closing Stock

1,600

Wages

800

 

 

Manufacturing Expenses

150

 

 

Carriage

160

 

 

Gross Profit (Balance Figure)

1,090

 

 

 

5,800

 

5,800

 

 

 

 

           

 

Profit and Loss Account

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Salaries

800

Gross Profit

1,090

Repairs

190

Net Loss (Balancing Figure)

2,490

Rent

450

 

 

 

Add: Unpaid Rent

50

500

 

 

Bad Debts

500

 

 

Depreciation on:

 

 

 

Plant and machinery

1,200

 

 

 

Delivery Vehicle

390

1,590

 

 

 

 

 

 

 

3,580

 

3,580

 

 

 

 

             

 

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

19,000

 

Fixed Assets

 

Less: Drawings

(700)

 

Plant and Machinery

12,000

 

Less: Net Loss

(2,490)

 

Less:10% Deprecation

(1,200)

10,800

 

15,810

Delivery Vehicle

2,600

 

 

 

Less:15% Depreciation

(390)

2,210

Current Liabilities

 

 

 

Sundry Creditors

2,600

Current Assets

 

Bills Payable

2,350

Closing Stock

1,600

Unpaid Rent

50

Sundry Debtors

3,600

 

 

Cash at Bank

2,600

 

20,810

 

20,810

 

 

 

 

 

Page No 18.65:

Answer:

Trading Account

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening stock

2,000

Sales

16,400

 

Purchases

10,500

 

Less: Return Inwards

(300)

16,100

Less: Return out words

(500)

10,000

Closing Stock

1,450

Wages

5,000

Gross Loss (Balancing Figure)

500

Manufacturing Expenses

800

 

 

Carriage

150

 

 

Fuel and Power

100

 

 

 

18,050

 

18,050

 

 

 

 

               

 

Profit and Loss Account

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Gross Loss

500

 

 

Repairs

50

 

 

 

Add: outstanding

40

90

 

 

Rent

400

 

 

Trade Expenses

700

 

 

Bad Debts

200

 

Net Loss (Balancing Figure)

2,790

Add: Additional bad debts

500

700

 

 

Depreciation on Plant and Machinery

400

 

 

 

2,790

 

2,790

 

 

 

 

               

 

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

10,000

 

Fixed Assets

 

Less: Drawings

(1,000)

 

Plant and Machinery

4,000

 

Less: Net Loss

(2,790)

6,210

Less: Depreciation

(400)

3,600

Current Liabilities

 

Current Assets

 

Creditors

1,200

Closing Stock

1,450

Bills Payable

500

Sundry Debtors

2,400

 

Outstanding Repairs

40

Less: Further Bad Debts

(500)

1,900

 

 

Bank

1,000

 

7,950

 

7,950

 

 

 

 

 



Page No 18.66:

Answer:

Financial Statement of Dev Morarji

Trading Account

for the year ended March 31, 2016

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Owning Stock

21,000

Sales

48,590

Purchases

21,650

Closing Stock

18,000

Carriage Inwards

250

 

 

Wages

6,000

 

 

Motive Power, Health and Lighting

1,600

 

 

Gross Profit (Balancing Figure)

16,090

 

 

 

66,590

 

66,590

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Carriage Outwards

600

Gross profit

16,090

Printing and Stationery

2,660

 

 

Travelling Expenses

400

Discount Received

580

Office Expenses

650

 

 

Interest Paid on Loan

200

 

 

Legal Charges

1,900

 

 

Consumption of Tools (5,000 – 4,500)

500

 

 

Depreciating on:

 

 

 

Furniture and Fixtures

100

 

 

 

Plant and Machinery

2,500

2,600

 

 

Net Profit (Balancing Figure)

7,160

 

 

 

 

 

 

 

16,670

 

16,670

 

 

 

 

 

Balance Sheet

as on March 31, 2016

Particulars

Amount

(Rs)

Assets

Amount

(Rs)

Capital

42,710

 

Fixed Assets

 

Add: Net Profit

7,160

49,870

Furniture and Fixtures

2,000

 

Reserve

500

Less: 5% Depreciation

(100)

1,900

Loan

38,000

Plant and Machinery

25,000

 

 

 

Less 10% Deprecation

(2,500)

22,500

 

 

Tools                                           5,000

 

      Less: Consumed                       (500)  4,500
Current Liabilities   Freehold Premises 10,000

Sundry Creditors

2,430

Investments

4,000

 

 

Current Assets

 

 

 

Closing Stock

18,000

 

 

Sundry Debtors

28,100

 

 

Bills Receivable

1,800

 

90,800

 

90,800

 

 

 

 

Page No 18.66:

Answer:

Financial Statement of M/s. Ram Prasad & Sons

Trading Account

for the year ended March 31, 2016

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

6,000

Sales

16,000

Purchases

8,000

Closing Stock

8,000

Wages

1,000

 

 

 

Add: Outstanding Wages

50

1,050

 

 

Gross Profit (Balancing Figure)

8,950

 

 

 

 

 

 

 

24,000

 

24,000

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Rent

450

 

Gross Profit

8,950

Less: Prepaid Rent

(100)

350

Interest Received

300

Commission

250

 

 

General Expenses

800

 

 

Salaries

500

 

 

 

Add: Outstanding Salaries

450

950

 

 

Depreciation on Machinery

400

 

 

Net Profit (Balancing Figure)

6,500

 

 

 

9,250

 

9,250

 

 

 

 

             

 

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

9,000

 

Fixed Assets

 

Add: Net Profit

6,500

15,500

Machinery

4,000

 

Current Liabilities

 

Less: 10% Deprecation

(400)

3,600

Sundry Creditors

4,500

Current Assets

 

Outstanding Salary

450

Closing Stock

8,000

Outstanding Wages

50

Sundry Debtors

4,400

 

 

Bills Receivable

2,900

 

 

Prepaid Rent

100

 

 

Cash at Bank

1,000

 

 

Cash in Hand

500

 

20,500

 

20,500

 

 

 

 



Page No 18.67:

Answer:

Financial statement of M/s. Shradha & Sons

Trading Account

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

42,000

Sales

1,55,000

Purchases

82,600

 

 

 

Less: Return Outwards

(1,600)

81,000

 

 

Carriages Inwards

1,200

Closing Stock

64,000

Wages

4,000

 

 

 

Add: Outstanding Wages

2,400

6,400

 

 

Power

6,000

 

 

Gross Profit (Balancing Figure)

82,400

 

 

 

2,19,000

 

2,19,000

 

 

 

 

             

 

Profit and Loss Account

for the year ended March 31, 2016

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Rent

22,000

 

Gross Profit

82,400

Add: Outstanding for One month (22,000/11)

2,000

24,000

 

 

Salary

15,000

 

 

Insurance

3,600

 

 

 

Less: Prepaid 2 month(3,600 × 2/12)

(600)

3,000

 

 

Outstanding Interest on Bank Loan

(25,000 × 8% × 6/12)

1,000

 

 

Bad Debts

600

 

 

 

Add: Provision for Doubtful Debts

1,000

1,600

 

 

Depreciation on:

 

 

 

Machinery

5,000

 

 

 

Furniture

700

5,700

 

 

Net Profit (Balancing Figure)

32,100

 

 

 

82,400

 

82,400

 

 

 

 

 

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

80,000

 

Fixed Assets

 

Add: Net Profit

32,100

 

Machinery

50,000

 

Less: Drawings

(18,000)

94,100

Less: 10% Depreciation

(500)

45,000

8% Bank Loan

25,000

 

Furniture

14,000

 

Add: Outstanding Interest

1,000

26,000

Less: 5% Deprecation

(700)

13,300

Current Liabilities

 

Current Assets

 

Creditors

18,900

Closing Stock

64,000

Wages Outstanding

2,400

Debtors

20,600

 

Rent Outstanding

2,000

Less: Bad Debts

(600)

 

 

 

Less: 5% Provision for doubtful Debts

(1,000)

19,000

 

 

Prepaid Insurance

600

 

 

Cash in hand

1,500

 

1,43,400

 

1,43,400

 

 

 

 

 

Page No 18.67:

Answer:

Financial statements of Mr. Niranjan

Trading Account

for the year ended March 31, 2016

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

45,000

Sales

4,35,000

 

Purchases

2,95,000

 

Less: Sales Return

(7,000)

4,28,000

Less: Purchases Return

(4,000)

2,91,000

Closing Stock

75,000

Wages

40,000

 

 

 

Add: Outstanding wages

5,000

45,000

 

 

Gross Profit (Balancing Figure)

1,22,000

 

 

 

 

 

 

 

5,03,000

 

5,03,000

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Rent

5,000

Gross Profit

1,22,000

Salaries

24,000

 

 

 

Add: Outstanding Salaries

2,000

26,000

 

 

Bad Debts

1,000

 

Interest Accrued on Investment

 

Add: Further Bad Debts

500

 

(50,000 × 6% × 9/12)

2,250

Add: Provision for Doubtful Debts

1,975

 

Miscellaneous Receipts

1,200

Less: Bad Debts Reserve

(800)

2,675

 

 

Advertisement expenses

6,000

 

 

Provision for discount on debtors

751

 

 

Insurance

1,500

 

 

Trade expenses

2,000

 

 

Depreciation on:

 

 

 

Machinery

2,400

 

 

 

Furniture

300

2,700

 

 

Net Profit (Balancing Figure)

78,824

 

 

 

1,25,450

 

1,25,450

 

 

 

 

             

 

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

1,20,000

 

Fixed Assets

 

Less: Drawings

(21,000)

 

Patents

4,800

Add: Net Profit

78,824

1,77,824

Plant and Machinery

24,000

 

Current Liabilities

 

Less: 10% Depreciation

(2,400)

21,600

Sundry Creditors

19,000

Furniture

1,500

 

Wages Outstanding

5,000

Less: 20% Depreciation

(300)

1,200

Salaries Outstanding

2,000

6% Investment

50,000

 

 

 

Add: Accrued Interest

2,250

52,250

 

 

Current Assets

 

 

 

Closing Stock

75,000

 

 

Debtors

40,000

 

 

 

Less: Further Bad Debts

(500)

 

 

 

Less: Provision for Doubtful Debts

(1,975)

 

 

 

 

37,525

 

 

 

Less: Provision for Discount

(751)

36,774

 

 

Cash

12,200

 

2,03,824

 

2,03,824

 

 

 

 



Page No 18.68:

Answer:

Financial Statement of Shri O.P. Yadav

Trading Account

for the year ended March 31, 2016

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening stock

30,000

Sales

5,00,000

 

Purchases

2,50,000

 

Less: Return Inwards

(12,000)

4,88,000

Less: Return Outwards

(10,000)

2,40,000

Closing Stock

21,000

Carriage

8,000

 

 

Wages

60,000

 

 

Gross Profit (Balancing Figure)

1,71,000

 

 

 

 

 

 

 

5,09,000

 

5,09,000

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Trade expenses

2,000

 

Gross Profit

1,71,000

Add: Outstanding Trade Expenses

12,000

14,000

Commission

1,000

 

Insurance

1,200

Add: Accrued Commission

2,100

3,100

Repairs

8,000

Rent Received

5,000

 

Advertisement

15,000

Less: Advance Rent

1,200

3,800

Interest on Bank Loan

2,800

 

 

 

Add: Interest Outstanding

800

3,600

 

 

Printing and Stationary

6,000

 

 

Net Profit (Balancing Figure)

1,30,100

 

 

 

 

 

 

 

1,77,900

 

1,77,900

 

 

 

 

 

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

2,40,000

 

Fixed Assets

 

Less: Drawings

(20,000)

 

Machinery

2,80,000

Add: Net Profit

1,30,100

3,50,100

Furniture

34,000

10% Loan from Bank

30,000

 

Current Assets

 

Add: Outstanding Interest

800

30,800

Closing Stock

21,000

Current Liabilities

 

Debtors

1,15,000

Creditors

1,00,000

Bills Receivable

4,000

Bills Payable

2,000

Cash at Bank

28,000

Advance Rent

1,200

Cash in Hand

12,000

Outstanding Trade Expenses

12,000

Commission Accrued

2,100

 

4,96,100

 

4,96,100

 

 

 

 

 

Working Notes:

Calculation of Outstanding Interest on Loan

Interest on loan (30,000 × 12%)

3,600

Less: Interest Paid

(2,800)

Interest Outstanding on Loan

800

 



Page No 18.69:

Answer:

Financial Statement of Vijay Kumar

Trading Account

for the year ended March 31, 2016

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

16,200

Sales

65,360

Purchases

47,000

Closing Stock

23,000

Wages

7,200

 

 

Gross Profit (Balancing Figure)

17,960

 

 

 

88,360

 

88,360

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Taxes and Insurance

1,315

Gross Profit

17,960

Bad Debts

550

 

Commission

1,320

Add: Further Bad Debts

180

 

 

 

Add: Provision for Doubtful Debts

305

 

 

 

 

1,035

 

 

 

Less: Exiting Provision

900

135

 

 

Car Expenses

1,800

 

 

Charity

105

 

 

Depreciation on Machinery

934

 

 

Outstanding Interest on Loan

700

 

 

General Expenses

4,740

 

 

Net Profit (Balancing Figure)

9,551

 

 

 

19,280

 

19,280

 

 

 

 

             

 

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital            

24,500

 

Fixed Assets

 

Add: Net Profit        

9,551

 

Building

11,000

Less: Drawings

(2,000)

32,051

Machinery

9,340

 

Loan

7,880

 

Less:10% Depreciation

934

8,406

Add: Outstanding Interest

700

8,580

Motor Car

2,000

Current Liabilities

 

Current Assets

 

Creditors

2,500

Closing Stock

23,000

Bills Payable

3,850

Debtors

6,280

 

Bank Overdraft

3,300

Less: Bad Debts

(180)

 

 

 

Less: 5% Provision for Doubtful Debts

(305)

5,795

 

 

Cash

80

 

50,281

 

50,281

 

 

 

 

Page No 18.69:

Answer:

Financial Statement Mohan

Trading Account

for the year ended March 31, 2016

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Openings Stock

6,800

Sales

1,10,000

 

 

 

Less: Returns

(8,000)

1,02,000

Purchases

66,000

 

 

 

Less: Returns

(1,500)

64,500

Closing Stock

7,000

Carriage Inwards

3,000

 

 

Gross Profit (Balancing Figure)

34,700

 

 

 

 

 

 

 

1,09,000

 

1,09,000

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Salaries

9,000

 

Gross Profit

34,700

Add: Outstanding

200

9,200

Discount

500

Rent and Insurance

3,000

 

Rent Received

300

Less: Prepaid Insurance

(200)

2,800

 

 

Depreciation on:

 

 

 

Land and Building

300

 

 

 

Motor Vehicles

2,000

2,300

 

 

Bad Debts

500

 

 

 

Add: Provisions for Doubtful Debts

1,000

 

 

 

Less: Exiting Provision

(700)

800

 

 

Interest on Loan

300

 

 

Carriage Outwards

2,500

 

 

Advertisement

3,500

 

 

General Expenses

3,400

 

 

Net Profit (Balancing Figure)

10,700

 

 

 

35,500

 

35,500

 

 

 

 

           

 

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

30,000

 

 

 

Less: Drawings

(5,000)

 

Land and Building

12,000

 

Add: Net Profit

10,700

35,700

Less: 2.5% Deprecation

(300)

11,700

Loan

9,500

Motor Vehicles

10,000

 

Creditors

10,000

Less: 20% Deprecation

(2,000)

8,000

Bills Payable

2,000

Closing Stock

7,000

Salaries Outstanding

200

Debtors

20,000

 

 

 

Less: 5% Provision for Doubtful Debts

(1,000)

19,000

 

 

Bills Receivable

6,000

 

 

Bank

3,500

 

 

Cash

2,000

 

 

Prepaid Insurance

200

 

57,400

 

57,400

 

 

 

 



Page No 18.70:

Answer:

Financial Statements of MMN

Trading Account

for the year ended March 31, 2016

Dr.

 

 

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

26,420

Sales

91,230

 

Purchases

42,160

 

Less: Returns

1,760

89,470

Less: Returns

(8,460)

33,700

Closing Stock

29,390

Wages

21,470

 

 

Carriage Inwards

4,370

 

 

Coal, Gas and Water 720    

Gross Profit (Balancing Figure)

32,180

 

 

 

1,18,860

 

1,18,860

 

 

 

 

 

 

Profit and Loss Account 

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Salaries

4,670

Gross Profit

32,180

Bank Charges

140

Provision for Doubtful Debts

 

Rates and Taxes

840

 

Old Provision

2,470

 

Less: Unexpired

240

600

New Provision

(1,890)

580

Trade Expenses

1,990

Apprentice Premium

500

 

Fire Insurance

490

 

Less: Unexpired

400

100

Less: Unexpired

125

365

Discount

120

Depreciation on

 

 

 

Land and Building

625

 

 

 

Plant and Machinery

1,427

 

 

 

Furniture and Fixtures

125

2,177

 

 

Net Profit

23,038

 

 

 

32,980

 

32,980

 

 

 

 

                 

 

Balance Sheet 

as on March 31, 2016

Liabilities 

Amount

(Rs)

Assets

Amount

(Rs)

Capital

90,000

 

Land and Building

25,000

 

Less: Drawings

6,480

 

Less: Depreciation

625

24,375

Add: Net Profit

23,038

1,06,558

Plant and Machinery

14,270

 

Unexpired Apprentice Premium

400

Less: Depreciation

1,427

12,843

Sundry Creditors

12,170

Furniture and Fixtures

1,250

 

 

 

Less: Depreciation

125

1,125

 

 

Unexpired Rent and Rates

240

 

 

Unexpired Fire Insurance

125

 

 

Closing Stock

29,390

 

 

Bills Receivable

1,270

 

 

Cash at Bank

13,000

 

 

Cash in Hand

850

 

 

Sundry Debtors

37,800

 

 

 

Less: Provision

1,890

35,910

 

1,19,128

 

1,19,128

 

 

 

 

 



Page No 18.71:

Answer:

Financial Statements of Shri Sunder Lal

Trading Account

for the year ended March 31, 2016

Dr.

 

 

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

1,20,450

Sales

5,63,010

 

Purchases

3,98,160

 

Less: Returns

3,750

5,59,260

Less: Returns

(2,910)

 

Closing Stock

1,27,410

Less: Computer

(6,000)

3,89,250

 

 

Wages

93,770

 

 

Carriage Inwards

10,360

 

 

Gross Profit (Balancing Figure)

72,840

 

 

 

6,86,670

 

6,86,670

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2016

Dr.

 

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Office Salaries

12,840

Gross Profit

72,840

General Expenses

15,360

Discount Received

5,970

Bank Charges

210

 

 

Discount Allowed

7,920

 

 

Depreciation on:

 

 

 

Plant and Machinery

4,328

 

 

 

Furniture

512

4,840

 

 

Rent and Rates

7,260

 

 

Bad Debts

2,760

 

 

 

Add: Provision for Doubtful Debts

15,000

 

 

 

Less: Existing Provision

(9,300)

8,460

 

 

Insurance

1,410

 

 

 

Less: Prepaid Insurance (720 × 6/12)

(360)

1,050

 

 

Outstanding Interest on Loan

1,800

 

 

Net Profit (Balancing Figure)

19,070

 

 

 

78,810

 

78,810

 

 

 

 

 

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Sundry Creditors

37,350

Cash in Hand and Bank

7,740

6% Loan

30,000

 

Bills Receivable

3,720

Add: Outstanding interest

1,800

31,800

Sundry Debtors

1,31,550

 

(3,000 × 6% for 12 months)

 

Less: Provision of Doubtful Debts

(15,000)

1,16,550

Capital

3,00,000

 

Plant and Machinery

43,280

 

Less: Drawings

(12,600)

 

Less: 10% Depreciation

(4,328)

38,952

Add: Net Profit

19,070

3,06,470

Furniture

10,240

 

 

 

Less: 5% Depreciation

(512)

9,728

 

 

Land and Building

65,160

 

 

Computer

6,000

 

 

Prepaid Insurance

360

 

 

Closing Stock

1,27,410

 

3,75,620

 

3,75,620

 

 

 

 



Page No 18.72:

Answer:

Financial Statement of Sanjiv Sondhi

Trading Account

for the year ended March 31, 2016

Dr.

 

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Purchase

11,60,000

Sales

16,00,000

 

Carriage Inwards

20,000

Less: Return Inwards

(40,000)

15,60,000

Wages

80,000

Closing Stock

2,60,000

Gross Profit (Balancing Figure)

5,60,000

 

 

 

18,20,000

 

18,20,000

 

 

 

 

           

 

Profit and Loss Account

for the year ended March 31, 2016

Dr.

 

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Depreciation on Plant and Fixture

8,000

Gross Profit

5,60,000

Salaries

1,00,000

 

Accrued Interest on Investment

7,500

Add: Outstanding

35,000

1,35,000

 

 

Printing and Stationery

8,000

 

 

Advertisement

12,000

 

 

Trade Charges

6,000

 

 

Rent and Taxes

14,000

 

 

Bad Debts

5,000

 

 

 

Add: Provision for Doubtful Debts

12,250

17,250

 

 

Discount

5,000

 

 

Net Profit (Balancing Figure)

3,62,250

 

 

 

5,67,500

 

5,67,500

 

 

 

 

           

 

Balance Sheet

as on the year ended March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

4,00,000

 

Plant and Fixtures

80,000

 

Less: Drawings

(45,000)

 

Less: 10% Depreciation

(8,000)

72,000

Add: Net Profit

3,62,250

7,17,250

Investment

1,50,000

 

Sundry Creditors

1,20,000

Add: Accrued Interest

7,500

1,57,500

Bills Payable

90,000

Closing Stock

2,60,000

Salaries Outstanding

35,000

Sundry Debtors

2,50,000

 

 

 

Less: Bad Debts

(5,000)

 

 

 

 

2,45,000

 

 

 

Less: 5% Provision for Doubtful Debts

(12,250)

2,32,750

 

 

Bills Receivable

50,000

 

 

Cash at Bank

1,60,000

 

 

Cash in Hand

30,000

 

9,62,250

 

9,62,250

 

 

 

 

 

Page No 18.72:

Answer:

Financial Statement of Ram

Trading Account

for the year ended March 31, 2016

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

11,460

Sales

1,49,840

 

Purchase

82,210

 

Less: Sales Return

(1,820)

1,48,020

Less: Purchases Return

(4,240)

77,970

Closing Stock

14,920

Wages

8,560

 

 

 

Add: Outstanding Wages

570

9,130

 

 

Carriage Inwards

2,310

 

 

Light and Water

7,950

 

 

Gross Profit (Balance Figure)

54,120

 

 

 

1,62,940

 

1,62,940

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2016

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Depreciation on:

 

Gross Profit

54,120

Leasehold Premises

1,250

 

Discount

180

Plant and Machinery

2,400

3,650

 

 

Bad Debts

1,000

 

 

 

Add: Further Bad Debts

500

 

 

 

Add: Provision for Doubtful Debts

5,000

 

 

 

 

6,500

 

 

 

Less: Existing Provision

(4,240)

2,260

 

 

Rent, Rates and Insurance

6,940

 

 

 

Less: Prepaid Insurance

(680)

6,260

 

 

Salaries

6,280

 

 

Office Expenses

9,520

 

 

Traveller’s Salaries

9,870

 

 

Carriage Outwards

3,240

 

 

Net Profit (Balancing Figure)

13,220

 

 

 

54,300

 

54,300

 

 

 

 

 

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

90,000

 

Fixed Assets

 

Less: Drawings

(7,000)

 

Leasehold Premises

25,000

 

Add: Net Profit

13,220

96,220

Less: 5% Depreciation

(1,250)

23,750

Current Liabilities

 

Plant and Machinery

24,000

 

Sundry Creditors

16,980

Less: 10% Depreciation

(2,400)

21,600

Wages Outstanding

570

Office Furniture

3,500

 

 

Current Assets

 

 

 

Closing Stock

14,920

 

 

Sundry Debtors

38,970

 

 

 

Less: Bad Debts

500

 

 

 

Less: Provision for Doubtful Debts

5,000

33,470

 

 

Bills Receivable

1,240

 

 

Cash at Bank

12,400

 

 

Cash in Hand

2,210

 

 

Prepaid Insurance

680

 

1,13,770

 

1,13,770

 

 

 

 

             



Page No 18.73:

Answer:

Financial Statements of M/s Arjun and Sons

Trading Account

for the year ended March 31, 2016

Dr.

 

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

42,000

Sales

1,55,000

Purchases

82,600

 

Closing Stock

64,000

Less: Return Outwards

(1,600)

81,000

 

 

Carriage Inwards

1,200

 

 

Wages

4,000

 

 

 

Add: Outstanding

2,400

6,400

 

 

Power

6,000

 

 

Gross Profit (Balancing Figure)

82,400

 

 

 

2,19,000

 

2,19,000

 

 

 

 

           

 

Profit and Loss Account

for the year ended March 31, 2016

Dr.

 

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Depreciation on Machinery

5,000

Gross Profit

82,400

Rent

22,000

 

 

 

Add: Outstanding Rent

2,000

24,000

 

 

Salary

15,000

 

 

Insurance

3,600

 

 

Interest on Bank Loan (for 6 Months)

1,000

 

 

Bad Debts

600

 

 

 

Add: Provision for Doubtful Debts

1,000

1,600

 

 

Manger’s Commission

2,927

 

 

Net Profit (Balancing Figure)

29,273

 

 

 

82,400

 

82,400

 

 

 

 

           

 

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

80,000

 

Fixed Assets

 

Less: Drawings

(19,000)

 

Machinery

50,000

 

Add: Net Profit

29,273

91,273

Less: 10% Depreciation

(5,000)

45,000

8% Bank Loan

25,000

 

Furniture

14,000

Add: Interest Outstanding

1,000

26,000

Current Assets

 

Current Liabilities

 

Closing Stock

64,000

Creditors

18,900

Debtors

20,600

 

Wages Outstanding

2,400

Less: Bad Debts

(600)

 

Rent Outstanding

2,000

 

20,000

 

Manger’s Commission Payable

2,927

Less: 5% Provision for Doubtful Debts

(1,000)

19,000

 

 

Cash in Hand

1,500

 

1,43,500

 

1,43,500

 

 

 

 

Working Notes:

WN1 Calculation of Interest on Loan

Bank Loan = Rs 25,000

Interest on Loan (from Oct. 01 to Mar. 31) =

WN2 Calculation of Manager’s Commission



Page No 18.74:

Answer:

Financial Statement

Trading Account

for the year ended March 31, 2016

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

22,000

Sales

1,34,500

Purchases

1,18,870

Closing Stock

12,450

Gross Profit (Balancing Figure)

6,080

 

 

 

1,46,950

 

1,46,950

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2016

Dr.

 

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Rent

900

 

Gross Profit

6,080

Add: Outstanding Rent

85

985

Net Loss (Balancing Figure)

4,275

Trade Expenses

1,075

 

 

 

Add: Outstanding Trade Expenses

150

1,225

 

 

Bad Debts

400

 

 

 

Add: Provision for Debts

1,580

1,980

 

 

Depreciation on

 

 

 

Plant and Machinery

1,750

 

 

 

Business Premises

690

2,440

 

 

Salaries

2,225

 

 

Carriage Outwards

400

 

 

Discount

1,100

 

 

 

10,355

 

10,355

 

 

 

 

             

 

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

79,500

 

Fixed Assets

 

Less: Net Loss

(4,275)

75,225

Plant and Machinery

17,500

 

Current Liabilities

 

Less: 10% Depreciation

(1,750)

15,750

Sundry Creditors

10,650

Premises

34,500

 

Bills Payable

7,500

Less: 2% Depreciation

(690)

33,810

Rent Outstanding

85

Current Assets

 

Trade Expenses Outstanding

150

Closing Stock

12,450

 

 

Sundry Debtors

32,000

 

 

 

Less: Bad Debts

(400)

 

 

 

 

31,600

 

 

 

Less: 5% Provision for Doubtful Debts

(1,580)

30,020

 

 

Cash at Bank

1,545

 

 

Cash in Hand

35

 

93,610

 

93,610

 

 

 

 

Note: In the question, Manager Commission is given as 5% on Net Profit after charging commission. But, during the year the firm had a Net Loss of Rs 4,275, therefore, manager commission is not payable.

Page No 18.74:

Answer:

Trading Account

for the year ended March 31, 2016

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

8,400

Sales

4,79,760

 

Purchases

3,00,000

 

Less: Sales Return

(1,800)

4,77,960

Less: Purchases Return

(12,200)

2,87,800

Closing Stock

15,270

Wages

2,800

 

 

Carriage Inwards

890

 

 

Gross Profit (Balancing Figure)

1,93,340

 

 

 

4,93,230

 

4,93,230

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2016

Dr.

 

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Carriage Outwards

300

Gross Profit

1,93,340

Telephone Charges

3,290

 

 

Salaries

12,000

 

 

 

Add: Outstanding

12,000

24,000

 

 

Insurance and Taxes

31,200

 

 

Printing and Stationery

 

 

 

Expenses

1,350

 

 

 

Add: Outstanding

58,650

60,000

 

 

Depreciation on

 

 

 

Plant and Machinery

12,300

 

 

 

Motor Vehicles

17,600

29,900

 

 

Net Profit (Balancing Figure)

44,650

 

 

 

1,93,340

 

1,93,340

 

 

 

 

           

 

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

5,90,000

 

Fixed Assets

 

Less: Drawings

(3,500)

 

Plant and Machinery

1,23,000

 

Add: Net Profit

44,650

6,31,150

Less: 10% Depreciation

(12,300)

1,10,700

Bank Loan

33,700

Motor Vehicles

1,76,000

 

Current Liabilities

 

Less: 10% Depreciation

(17,600)

1,58,400

Creditors

11,870

Building

3,80,000

Outstanding Printing and Stationery

58,650

Current Assets

 

Outstanding Salaries

12,000

Sundry Debtors

80,000

 

 

Closing Stock

15,270

 

 

Cash in Hand

3,000

 

7,47,370

 

7,47,370

 

 

 

 



Page No 18.75:

Answer:

Financial Statements for Mr. G. Vishwanath

Trading Account

for the year ended March 31, 2016

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

8,100

Sales

5,21,870

 

Purchases

2,74,685

 

Less: Return Inwards

(2,300)

5,19,570

Less: Return Outwards

(2,100)

2,72,585

Closing Stock

15,600

Wages

54,755

 

 

 

Add: General Expenses

2,000

56,755

 

 

Gross Profit (Balancing Figure)

1,97,730

 

 

 

5,35,170

 

5,35,170

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Rent

6,700

Gross Profit

1,97,730

Salaries

35,000

 

 

Carriage Outwards

3,100

 

 

Interest on Loan

10,000

 

 

 

Add: Interest Outstanding

10,000

20,000

 

 

Electricity Charges

4,200