Double Entry Book Keeping Ts Grewal 2016 Solutions for Class 11 Commerce Accountancy Chapter 17 Financial Statements Of Sole Proprietorship are provided here with simple step-by-step explanations. These solutions for Financial Statements Of Sole Proprietorship are extremely popular among class 11 Commerce students for Accountancy Financial Statements Of Sole Proprietorship Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Double Entry Book Keeping Ts Grewal 2016 Book of class 11 Commerce Accountancy Chapter 17 are provided here for you for free. You will also love the ad-free experience on Meritnationâ€™s Double Entry Book Keeping Ts Grewal 2016 Solutions. All Double Entry Book Keeping Ts Grewal 2016 Solutions for class 11 Commerce Accountancy are prepared by experts and are 100% accurate.

#### Page No 17.51:

 Gross Profit = Sales + Closing Stock – (Opening Stock + Freight and Packing + Goods Purchased) = 1,90,000 + 30,000 – (25,000 + 10,000 + 1,40,000) = 2,20,000 – 1,75,000 = Rs 45,000

Alternatively,

 Trading Account for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 25,000 Sales 1,90,000 Purchases 1,40,000 Closing Stock 30,000 Freight and Packing 10,000 Gross Profit (Balancing Figure) 45,000 2,20,000 2,20,000

Note: Packing Expenses (Rs 6,000) on Sales is an Indirect Expense, therefore it is not considered to compute the amount of Gross Profit.

#### Page No 17.51:

 Closing Stock = Purchases + Carriage Inwards + Return Inwards + Gross Profit – (Sales + Return Outwards) = 12,300 + 400 + 500 + 8,000 – (20,000 + 1,000) = 21,200 – 21,000 = Rs 200

Alternatively,

 Trading Account Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Purchase 12,300 Sales 20,000 Less: Return Outwards (1,000) 11,300 Less: Return Inwards (500) 19,500 Carriage Inwards 400 Closing Stock (Balancing Figure) 200 Gross Profit 8,000 19,700 19,700

#### Page No 17.51:

 Trading Account Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 2,300 Sales 2,540 Purchases 2,900 Less: Sales Return (50) 2,490 Less: Purchases Return (240) 2,660 Closing Stock 4,770 Carriage Inwards 10 Gross Profit (Balancing Figure) 2,290 7,260 7,260

Note: Depreciation is an Indirect Expense, therefore it is not shown in the Trading Account.

#### Page No 17.51:

 Trading Account Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 20,000 Sales 1,40,700 Purchases 85,000 Closing Stock 18,000 Carriage on Purchases 2,300 Gross Profit (Balancing Figure) 51,400 1,58,700 1,58,700

Note: Carriage on Sales and Office Rent are the Indirect Expenses, therefore, these are not considered to compute the amount of Gross Profit.

#### Page No 17.51:

 Trading Account for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 40,000 Sales 3,80,000 Purchases 4,00,000 Less: Return Inwards (20,000) 3,60,000 Less: Return Outwards (80,000) 3,20,000 Closing Stock 1,20,000 Carriage Inwards 20,000 Wages and Salaries 50,000 Gross Profit (Balancing Figure) 50,000 4,80,000 4,80,000

Note: Closing Stock is taken at its Market Price (i.e. Rs 1,20,000) instead of its Cost (i.e. Rs 1,30,000). This is because, as per Principle of Conservatism, Closing stock is taken at Cost or Market Price whichever is less.

#### Page No 17.51:

 Trading Account for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Purchase (Adjusted) 6,60,000 Sales 7,44,000 Freight and Carriage Inwards 3,600 Wages 6,000 Gross Profit (Balancing Figure) 74,400 7,44,000 7,44,000

Notes:

1.        Freight and Carriage Outwards are indirect expenses, therefore it is not recorded in the Trading Account.

2.        Closing Stock (i.e. Rs 50,400) is not recorded in the Trading Account as it is already adjusted in the amount of Adjusted Purchases.

#### Page No 17.51:

 Profit and Loss Account for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Salaries and Wages 3,000 Gross Profit (65,000 × 45%) 29,250 Commission Paid 200 Rent Received 1,700 Postage and Telegram 150 Interest on Investments 1,500 Insurance 300 Interest Paid 400 Carriage Outwards 500 Advertising 1,000 Discount Allowed 1,800 Bad Debts 900 Brokerage Paid 95 Net Profit (Balancing Figure) 24,105 32,405 32,450

#### Page No 17.52:

 Profit and Loss Account for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Rent 5,000 Gross Profit 1,20,000 Salary 35,000 Interest Received 8,000 Commission Paid 19,000 Discount Received 6,000 Interest on Loan 5,000 Advertisement 8,000 Printing and Stationery 4,000 Legal Charges 10,000 Bad Debts 2,000 Loss by Fire 6,000 Depreciation 4,000 Net Profit (Balancing Figure) 36,000 1,34,000 1,34,000

#### Page No 17.52:

 Balance Sheet as on March 31, 2014 Liabilities Amount (Rs) Assets Amount (Rs) Capital 40,000 Plant 10,000 Less: Drawings (4,400) Furniture 3,700 Add: Net Profit 1,660 37,260 Closing Stock 14,800 General Reserve 1,000 Debtors 6,400 Creditors 4,200 Cash at Bank 7,200 Cash in Hand 360 42,460 42,460

#### Page No 17.52:

(I) Balance Sheet in Order of Permanence

 Balance Sheet as on March 31, 2014 Liabilities Amount (Rs) Assets Amount (Rs) Capital 1,80,000 Goodwill 20,000 Less: Drawings (30,000) Land and Building 60,000 Add: Net Profit 92,600 2,42,600 Plant and Machinery 40,000 Sundry Creditors 63,000 Furniture 16,000 Bills Payable 10,700 Investment 20,000 Liabilities for Expenses 1,200 Closing Stock 80,000 Sundry Debtors 50,000 Less: Provision for Doubtful Debts (2,500) 47,500 Bill Receivable 13,000 Bank 20,000 Cash in Hand 1,000 3,17,500 3,17,500

(II) Balance Sheet in Order of Liquidity

 Balance Sheet as on March 31, 2014 Liabilities Amount (Rs) Assets Amount (Rs) Liabilities for Expenses 1,200 Cash in Hand 1,000 Bills Payable 10,700 Bank 20,000 Sundry Creditors 63,000 Bills Receivable 13,000 Capital 1,80,000 Sundry Debtors 50,000 Less: Drawings (30,000) Less: Provision for Doubtful Debts (2,500) 47,500 Add: Net Profit 92,600 2,42,600 Closing Stock 80,000 Investment 20,000 Furniture 16,000 Plant and Machinery 40,000 Land and Building 60,000 Good will 20,000 3,17,500 3,17,500

#### Page No 17.52:

 Financial Statements of Jagat Shah Trading Account  for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 1,000 Sales 8,200 Purchases 4,000 Less: Sales Return (100) 8,100 Less: Purchases Return (50) 3,950 Closing Stock 2,000 Wages 1,000 Carriage Inwards 50 Gross Profit (Balancing Figure) 4,100 10,100 10,100

 Profit and Loss Account for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Salaries 600 Gross Profit 4,100 General Expenses 200 Rent 500 Carriage Outwards 200 Advertising 200 Net Profit (Balancing Figure) 2,400 4,100 4,100

 Balance Sheet as on March 31, 2014 Liabilities Amount (Rs) Assets Amount (Rs) Capital 3,600 Fixed Assets Less: Drawings (400) Machinery 700 Add: Net Profit 2,400 5,600 Current Assets Current Liabilities Closing Stock 2,000 Creditors 500 Debtors 3,000 Cash 400 6,100 6,100

#### Page No 17.53:

 Trading Account Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 2,000 Sales 14,500 Purchases 9,500 Closing Stock 300 Wages 5,000 Gross Loss (Balancing Figure) 1,850 Carriage 150 16,650 16,650

 Profit and Loss Account Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Gross Loss 1,850 Rent 450 Net Loss (Balancing Figure) 2,500 Sundry Expenses 200 2,500 2,500

 Balance Sheet Liabilities Amount (Rs) Assets Amount (Rs) Capital 10,000 Fixed Assets Less: Drawings (900) Machinery 3,500 Less: Net Loss (2,500) 6,600 Current Assets Current Liabilities Closing Stock 300 Creditors 1,400 Debtors 2,700 Bank 1,500 8,000 8,000

#### Page No 17.53:

 Financial Statement of Bhagwan Das Trading Account  for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Stock 17,600 Purchases 68,300 Sales 92,000 Less: Return Outwards (2,200) 66,100 Less: Return Inwards (1,300) 90,700 Carriage Inwards 2,400 Closing Stock 24,000 Gross Profit (Balancing Figure) 28,600 1,14,700 1,14,700

 Profit and Loss Account  for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Rent, Rates and Taxes 2,200 Gross Profit 28,600 Discount 3,750 Printing 720 Insurance 500 Travelling Expenses 1,400 Postage and Telegram 620 Miscellaneous Expenses 900 Bad Debts 400 Net Profit (Balancing Figure) 18,110 28,600 28,600

 Balance Sheet as on March 31, 2014 Liabilities Amount (Rs) Assets Amount (Rs) Capital 52,500 Fixed Assets Less: Drawings (1,910) Business Premises 39,000 Add: Net Profit 18,110 68,700 Office Furniture 1,500 Mata Din Loan 5,000 Current Assets Current Liabilities Closing Stock 24,000 Creditors 12,800 Debtors 22,000 86,500 86,500

#### Page No 17.53:

 Financial Statement of Anand Trading Account  for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 9,945 Sales 78,182 Purchases 62,092 Closing Stock 14,300 Wages 4,300 Gross Profit (Balancing Figure) 16,145 92,482 92,482

 Profit and Loss Account  for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Salaries 4,000 Gross Profit 16,145 Discount 1,000 Postage 273 Bad Debts 287 Interest 1,295 Insurance 417 Net Profit (Balancing Figure) 8,873 16,145 16,145

 Balance Sheet  as on March 31, 2014 Liabilities Amount (Rs) Assets Amount (Rs) Capita 36,000 Fixed Assets Add: Net Profit 8,873 44,873 Building 23,780 Loan 12,000 Machinery 10,000 Current Liabilities Fixtures and fittings 16,155 Creditors 8,720 Current Assets Bills Payable 2,527 Closing Stock 14,300 Debtors 3,885 68,120 68,120

#### Page No 17.53:

 Financial Statement of Messers Gupta and Sons Trading Account  for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 2,720 Sales 12,439 Purchases 10,492 Less: Return Inwards (1,000) 11,439 Less: Return Outwards (1,200) 9,292 Closing Stock 7,929 Carriage 400 Wages 1,510 Gross Profit (Balancing Figure) 5,446 19,368 19,368

 Profit and Loss Account  for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Insurance 119 Gross Profit 5,446 Postage 132 Commission 390 Salaries 1,400 Discount 627 Depreciation 600 Net Profit (Balancing Figure) 4,212 6,463 6,463

 Balance Sheet  as on March 31, 2014 Liabilities Amount (Rs) Assets Amount (Rs) Capital 18,000 Fixed Assets Add: Net Profit 4,212 22,212 Building 5,290 Machinery 6,710 Current Liabilities Current Assets Creditors 7,581 Closing Stock 7,929 Bills Payable 4,827 Debtors 8,100 Bills Receivable 3,291 Cash bank 1,900 Cash in Hand 1,400 34,620 34,620

#### Page No 17.54:

 Financial Statement of M/s. Raja & Sons Trading Account  for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 29,500 Sales 1,47,200 Purchases 84,170 Less: Sales Return (4,700) 1,42,500 Less: Purchases Return (3,900) 80,270 Closing Stock 36,200 Carriage 2,200 Wages 45,000 Gross Profit (Balancing Figure) 21,730 1,78,700 1,78,700

 Profit and Loss Account  for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Salary 5,400 Gross Profit 21,730 Insurance 2,500 Rent Received 3,150 Trade Expenses 4,900 Net profit (Balancing Figure) 12,080 24,880 24,880

 Balance Sheet  as on March 31, 2014 Liabilities Amount (Rs) Assets Amount (Rs) Capital 58,900 Fixed Assets Add: Net Profit 12,080 Machinery 12,000 Less: Drawings (2,100) 68,880 Current Liabilities Current Assets Creditors 4,200 Closing Stock 36,200 Bank Overdraft 9,700 Debtors 38,080 Bills Payable 3,900 Cash 400 86,680 86,680

#### Page No 17.54:

 Financial Statement of M/s. Mangal & Sons Trading Account  for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 12,500 Sales 70,000 Purchases 37,500 Less: Return Inwards (1,300) 68,700 Less: Return Outwards (500) 37,000 Closing Stock 15,000 Carriage 1,450 Gross Profit (Balancing Figure) 32,750 83,700 83,700

 Profit and Loss Account  for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Salary 3,850 Gross Profit 32,750 Insurance 200 Commission 750 Interest 900 Printing 250 Rent and Taxes 1,300 Net Profit (Balancing Figure) 25,500 32,750 32,750

 Balance Sheet  as on March 31, 2014 Liabilities Amount (Rs) Assets Amount (Rs) Capital 7,100 Fixed Assets Add: Net Profit 25,500 32,600 Furniture 1,000 Current Liabilities Current Assets Creditors 20,000 Closing Stock 15,000 Bills Payable 3,150 Debtors 32,500 Bills Receivable 2,000 Bank 5,250 55,750 55,750

#### Page No 17.54:

 Trading Account Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 20,000 Sales 1,45,000 Purchases 95,000 Closing Stock 6,000 Wages 50,000 Gross Loss (Balancing Figure) 15,500 Carriage 1,500 1,66,500 1,66,500

 Profit and Loss Account Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Gross Loss 15,500 Rent 4,500 Net Loss (Balancing Figure) 22,000 Sundry Expenses 2,000 22,000 22,000

 Balance Sheet Liabilities Amount (Rs) Assets Amount (Rs) Capital 1,00,000 Fixed Assets Less: Net Loss (22,000) Machinery 35,000 Less: Drawings (9,000) 69,000 Current Assets Current Liabilities Closing Stock 6,000 Creditors 14,000 Debtors 27,000 Bank 15,000 83,000 83,000

#### Page No 17.54:

 Financial Statement of Hari & Co. Trading Account  for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 1,65,000 Sales 6,35,000 Purchases 4,68,500 Less: Return Inwards (4,500) 6,30,500 Less: Return Outwards (1,100) 4,67,400 Closing Stock 1,82,100 Wages 25,000 Carriage Inwards 8,500 Gross Profit (Balancing Figure) 1,46,700 8,12,600 8,12,600

 Profit and Loss Account  for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) General Expenses 8,000 Rent Paid 37,100 Gross Profit 1,46,700 Electricity Charges 1,900 Salaries 11,100 Discount Allowed 2,000 Net Profit (Balancing Figure) 86,600 1,46,700 1,46,700

 Balance Sheet  as on March 31, 2014 Liabilities Amount (Rs) Assets Amount (Rs) Capital 3,50,000 Fixed Assets Add: Net Profit 86,600 Building 1,87,500 Less: Drawings (6,500) 4,30,100 Machinery 92,500 Current Liabilities Current Assets Sundry Creditors 1,00,000 Closing Stock 1,82,100 Bills Payable 50,000 Debtors 70,000 Cash at bank 30,000 Cash in Hand 18,000 5,80,100 5,80,100

#### Page No 17.55:

 Trading Account  for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 2,000 Sales 16,400 Purchases 10,500 Less: Return Inwards (400) 16,000 Less: Return Outwards (500) 10,000 Closing Stock 1,450 Wages 5,000 Gross Loss (Balancing Figure) 500 Manufacturing Expenses 800 Carriage 150 17,950 17,950

 Profit and Loss Account  for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Gross Loss 500 Repairs 50 Rent 400 Trade Expenses 700 Net Loss (Balancing Figure) 1,850 Bad Debts 200 1,850 1,850

 Balance Sheet  as on March 31, 2014 Liabilities Amount (Rs) Assets Amount (Rs) Capital 10,000 Fixed Assets Less: Drawings (1,200) Plant and Machinery 4,000 Less: Net Loss (1,850) 6,950 Current Assets Current Liabilities Closing Stock 1,450 Sundry Creditors 1,200 Sundry Debtors 2,400 Bills Payable 700 Bank 1,000 8,850 8,850

#### Page No 17.55:

 Financial Statement of Chatter Sen Trading Account  for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 40,000 Sales 1,27,000 Purchases 58,000 Less: Sales Return (1,000) 1,26,000 Less: Purchases Return (1,275) 56,725 Closing Stock 35,000 Wages 10,000 Freight Inwards 750 Gross Profit (Balancing Figure) 53,525 1,61,000 1,61,000

 Profit and Loss Account for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Discount Allowed 350 Gross Profit 53,525 Bank Charges 75 Discount Received 800 Salaries 6,800 Freight Outwards 1,200 Rent, Rates and Taxes 2,000 Advertisement 2,000 Net Profit (Balancing Figure) 41,900 54,325 54,325

 Balance Sheet  as on March 31, 2014 Liabilities Amount (Rs) Assets Amount (Rs) Capital 1,10,000 Fixed Assets Add: Net Profit 41,900 1,51,900 Plant and Machinery 90,000 Current Liabilities Current Assets Sundry Creditors 25,000 Closing Stock 35,000 Sundry Debtors 45,000 Cash at Bank 6,900 1,76,900 1,76,900

#### Page No 17.55:

 Trading Account  for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 3,460 Sales 15,450 Purchases 5,575 Less: Sales Return (200) 15,250 Less: Purchases Return (125) 5,450 Closing Stock 3,250 Gross Profit (Balancing Figure) 9,590 18,500 18,500

 Profit And Loss Account for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Taxes and Insurance 1,250 Gross Profit 9,590 General Charges 782 Commission 175 Salaries 3,300 Bad Debts 125 Advertising 450 Interest 118 Net Profit (Balancing Figure) 3,740 9,765 9,765

 Balance Sheet  as on March 31, 2014 Liabilities Amount (Rs) Assets Amount (Rs) Capital 12,890 Fixed Assets Add: Net Profit 3,740 16,630 Building 7,590 Current Liabilities Furniture and Fittings 640 Sundry Creditors 2,500 Motor Vehicles 6,250 Bank Overdraft 2,850 Current Assets Bills Payable 200 Closing Stock 3,250 Sundry Debtors 3,800 Cash in Hand 650 22,180 22,180

#### Page No 17.55:

 Financial Statement of John Smith Trading Account  for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 2,000 Sales 10,000 Purchases: Closing Stock 1,500 Paper 2,000 Boxes, Lables, etc. 500 2,500 Wages 5,000 Carriage 10 Gross Profit (Balancing Figure) 1,990 11,500 11,500

 Profit and Loss Account for the year ended March 31, 2014 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Rates and Taxes 40 Gross Profit 1,990 Insurance 150 Incidental Expenses 200 Net Profit (Balancing Figure) 1,600 1,990 1,990

 Balance Sheet  as on March 31, 2014 Liabilities Amount (Rs) Assets Amount (Rs) Capital 6,000 Fixed Assets Less: Drawings (1,000) Land and Building 2,000 Add: Net Profit 1,600 6,600 Machinery Plant 1,500 Loan on Mortgage 1,000 Current Assets Current Liabilities Closing Stock 1,500 Creditors 500 Debtors 1,500 Bills Receivable 300 Cash at Bank 1,250 Cash in Hand 50 8,100 8,100