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Page No 19.61:

Answer:

Trading Account

for the year ended March 31, 2017

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening stock

16,000

Sales

42,000

Purchases

20,000

Closing Stock

16,000

Wages

8,000

 

 

Manufacturing Expenses

1,500

 

 

Carriage

1,600

 

 

Gross Profit (Balance Figure)

10,900

 

 

 

58,000

 

58,000

 

 

 

 

           

 

Profit and Loss Account

for the year ended March 31, 2017

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Salaries

8,000

Gross Profit

10,900

Repairs

1,900

Net Loss (Balancing Figure)

24,900

Rent

4,500

 

 

 

Add: Unpaid Rent

500

5,000

 

 

Bad Debts

5,000

 

 

Depreciation on:

 

 

 

Plant and machinery

12,000

 

 

 

Delivery Vehicle

3,900

15,900

 

 

 

 

 

 

 

35,800

 

35,800

 

 

 

 

             

 

Balance Sheet

as on March 31, 2017

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

1,90,000

 

Fixed Assets

 

Less: Drawings

(7,000)

 

Plant and Machinery

1,20,000

 

Less: Net Loss

(24,900)

 

Less:10% Deprecation

(12,000)

1,08,000

 

1,58,100

Delivery Vehicle

26,000

 

 

 

Less:15% Depreciation

(3,900)

22,100

Current Liabilities

 

 

 

Sundry Creditors

26,000

Current Assets

 

Bills Payable

23,500

Closing Stock

16,000

Unpaid Rent

500

Sundry Debtors

36,000

 

 

Cash at Bank

26,000

 

2,08,100

 

2,08,100

 

 

 

 

 



Page No 19.62:

Answer:

Trading Account

for the year ended March 31, 2017

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening stock

20,000

Sales

1,64,000

 

Purchases

1,05,000

 

Less: Return Inwards

(3,000)

1,61,000

Less: Return out words

(5,000)

1,00,000

Closing Stock

14,500

Wages

50,000

Gross Loss (Balancing Figure)

5,000

Manufacturing Expenses

8,000

 

 

Carriage

1,500

 

 

Fuel and Power

1,000

 

 

 

1,80,500

 

1,80,500

 

 

 

 

               

 

Profit and Loss Account

for the year ended March 31, 2017

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Gross Loss

5,000

 

 

Repairs

500

 

 

 

Add: outstanding

400

900

 

 

Rent

4,000

 

 

Miscellaneous Expenses

7,000

 

 

Bad Debts

2,000

 

Net Loss (Balancing Figure)

27,900

Add: Additional bad debts

5,000

7,000

 

 

Depreciation on Plant and Machinery

4,000

 

 

 

27,900

 

27,900

 

 

 

 

               

 

Balance Sheet

as on March 31, 2017

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

1,00,000

 

Fixed Assets

 

Less: Drawings

(10,000)

 

Plant and Machinery

40,000

 

Less: Net Loss

(27,900)

62,100

Less: Depreciation

(4,000)

36,000

Current Liabilities

 

Current Assets

 

Creditors

12,000

Closing Stock

14,500

Bills Payable

5,000

Sundry Debtors

24,000

 

Outstanding Repairs

400

Less: Further Bad Debts

(5,000)

19,000

 

 

Bank

10,000

 

79,500

 

79,500

 

 

 

 

 

Page No 19.62:

Answer:

Financial Statement of M/s. Ram Prasad & Sons

Trading Account

for the year ended March 31, 2017

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

6,00,000

Sales

16,00,000

Purchases

8,00,000

Closing Stock

8,00,000

Wages

1,00,000

 

 

 

Add: Outstanding Wages

5,000

1,05,000

 

 

Gross Profit (Balancing Figure)

8,95,000

 

 

 

 

 

 

 

24,00,000

 

24,00,000

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2017

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Rent

45,000

 

Gross Profit

8,95,000

Less: Prepaid Rent

(10,000)

35,000

Interest Received

30,000

Commission

25,000

 

 

General Expenses

80,000

 

 

Salaries

50,000

 

 

 

Add: Outstanding Salaries

45,000

95,000

 

 

Depreciation on Machinery

40,000

 

 

Net Profit (Balancing Figure)

6,50,000

 

 

 

9,25,000

 

9,25,000

 

 

 

 

             

 

Balance Sheet

as on March 31, 2017

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

9,00,000

 

Fixed Assets

 

Add: Net Profit

6,50,000

15,50,000

Machinery

4,00,000

 

Current Liabilities

 

Less: 10% Depreciation

(40,000)

3,60,000

Sundry Creditors

4,50,000

Current Assets

 

Outstanding Salary

45,000

Closing Stock

8,00,000

Outstanding Wages

5,000

Sundry Debtors

4,40,000

 

 

Bills Receivable

2,90,000

 

 

Prepaid Rent

10,000

 

 

Cash at Bank

1,00,000

 

 

Cash in Hand

50,000

 

20,50,000

 

20,50,000

 

 

 

 



Page No 19.63:

Answer:

Financial statement of M/s. Shradha & Sons

Trading Account

for the year ended March 31, 2017

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, 2017

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, 2017

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 19.63:

Answer:

Financial statements of Mr. Niranjan

Trading Account

for the year ended March 31, 2017

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, 2017

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, 2017

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 19.64:

Answer:

Financial Statement of Shri O.P. Yadav

Trading Account

for the year ended March 31, 2017

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening stock

30,000

 

 

 

Purchases                                          2,50,000   Sales

5,00,000

 

   Less: Drawings

(2,000)

 

Less: Return Inwards

(12,000)

4,88,000

Less: Return Outwards

(10,000)

2,38,000

Closing Stock

21,000

Carriage

8,000

 

 

Wages

60,000

 

 

Gross Profit (Balancing Figure)

1,73,000

 

 

 

 

 

 

 

5,09,000

 

5,09,000

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2017

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Trade expenses

2,000

 

Gross Profit

1,73,000

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)

1,32,100

 

 

 

 

 

 

 

1,79,900

 

1,79,900

 

 

 

 

 

Balance Sheet

as on March 31, 2017

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

2,40,000

 

Fixed Assets

 

Less: Drawings

(22,000)

 

Machinery

2,80,000

Add: Net Profit

1,32,100

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 19.65:

Answer:

Financial Statement of Vijay Kumar

Trading Account

for the year ended March 31, 2017

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

1,62,000

Sales

6,53,600

Purchases

4,70,000

Closing Stock

2,30,000

Wages

72,000

 

 

Gross Profit (Balancing Figure)

1,79,600

 

 

 

8,83,600

 

8,83,600

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2017

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Taxes and Insurance

13,150

Gross Profit

1,79,600

Bad Debts

5,500

 

Commission

13,200

Add: Further Bad Debts

1,800

 

 

 

Add: Provision for Doubtful Debts

3,050

 

 

 

 

10,350

 

 

 

Less: Exiting Provision

9,000

1,350

 

 

Car Expenses

18,000

 

 

Charity

1,050

 

 

Depreciation on Machinery

9,340

 

 

Outstanding Interest on Loan

7,000

 

 

General Expenses

47,400

 

 

Net Profit (Balancing Figure)

95,510

 

 

 

1,92,800

 

1,92,800

 

 

 

 

             

 

Balance Sheet

as on March 31, 2017

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital            

2,45,000

 

Fixed Assets

 

Add: Net Profit        

95,510

 

Building

1,10,000

Less: Drawings

(20,000)

3,20,510

Machinery

93,400

 

Loan

78,800

 

Less:10% Depreciation

9,340

84,060

Add: Outstanding Interest

7,000

85,800

Motor Car

20,000

Current Liabilities

 

Current Assets

 

Creditors

25,000

Closing Stock

2,30,000

Bills Payable

38,500

Debtors

62,800

 

Bank Overdraft

33,000

Less: Bad Debts

(1,800)

 

 

 

Less: 5% Provision for Doubtful Debts

(3,050)

57,950

 

 

Cash

800

 

5,02,810

 

5,02,810

 

 

 

 

Page No 19.65:

Answer:

Financial Statement Mohan

Trading Account

for the year ended March 31, 2017

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Openings Stock

68,000

Sales

11,00,000

 

 

 

Less: Returns

(80,000)

10,20,000

Purchases

6,60,000

 

 

 

Less: Returns

(15,000)

6,45,000

Closing Stock

70,000

Carriage Inwards

30,000

 

 

Gross Profit (Balancing Figure)

3,47,000

 

 

 

 

 

 

 

10,90,000

 

10,90,000

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2017

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Salaries

90,000

 

Gross Profit

3,47,000

Add: Outstanding

2,000

92,000

Discount

5,000

Rent and Insurance

30,000

 

Rent Received

3,000

Less: Prepaid Insurance

(2,000)

28,000

 

 

Depreciation on:

 

 

 

Land and Building

3,000

 

 

 

Motor Vehicles

20,000

23,000

 

 

Bad Debts

5,000

 

 

 

Add: Provisions for Doubtful Debts

10,000

 

 

 

Less: Exiting Provision

(7,000)

8,000

 

 

Interest on Loan

3,000

 

 

Carriage Outwards

25,000

 

 

Advertisement

35,000

 

 

General Expenses

34,000

 

 

Net Profit (Balancing Figure)

1,07,000

 

 

 

3,55,000

 

3,55,000

 

 

 

 

           

 

Balance Sheet

as on March 31, 2017

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

3,00,000

 

Furniture

26,000

Less: Drawings

(50,000)

 

Land and Building

1,20,000

 

Add: Net Profit

1,07,000

3,57,000

Less: 2.5% Deprecation

(3,000)

1,17,000

Loan

95,000

Motor Vehicles

1,00,000

 

Creditors

1,26,000

Less: 20% Deprecation

(20,000)

80,000

Bills Payable

20,000

Closing Stock

70,000

Salaries Outstanding

2,000

Debtors

2,00,000

 

 

 

Less: 5% Provision for Doubtful Debts

(10,000)

1,90,000

 

 

Bills Receivable

60,000

 

 

Bank

35,000

 

 

Cash

20,000

 

 

Prepaid Insurance

2,000

 

6,00,000

 

6,00,000

 

 

 

 



Page No 19.66:

Answer:

Financial Statements of Shri Sunder Lal

Trading Account

for the year ended March 31, 2017

Dr.

 

 

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

12,04,500

Sales

56,30,100

 

Purchases

39,81,600

 

Less: Returns

37,500

55,92,600

Less: Returns

(29,100)

 

Closing Stock

12,74,100

Less: Computer

(60,000)

38,92,500

 

 

Wages

9,37,700

 

 

Carriage Inwards

1,03,600

 

 

Gross Profit (Balancing Figure)

7,28,400

 

 

 

68,66,700

 

68,66,700

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2017

Dr.

 

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Office Salaries

1,28,400

Gross Profit

7,28,400

General Expenses

1,53,600

Discount Received

59,700

Bank Charges

2,100

 

 

Discount Allowed

79,200

 

 

Depreciation on:

 

 

 

Plant and Machinery

43,280

 

 

 

Furniture

5,120

48,400

 

 

Rent and Rates

72,600

 

 

Bad Debts

27,600

 

 

 

Add: Provision for Doubtful Debts

1,50,000

 

 

 

Less: Existing Provision

(93,000)

84,600

 

 

Insurance

14,100

 

 

 

Less: Prepaid Insurance (7,200 × 6/12)

(3,600)

10,500

 

 

Outstanding Interest on Loan

18,000

 

 

Net Profit (Balancing Figure)

1,90,700

 

 

 

7,88,100

 

7,88,100

 

 

 

 

 

Balance Sheet

as on March 31, 2017

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Sundry Creditors

3,73,500

Cash in Hand and Bank

77,400

6% Loan

3,00,000

 

Bills Receivable

37,200

Add: Outstanding interest

18,000

3,18,000

Sundry Debtors

13,15,500

 

(3,00,000 × 6% for 12 months)

 

Less: Provision of Doubtful Debts

(1,50,000)

11,65,500

Capital

30,00,000

 

Plant and Machinery

4,32,800

 

Less: Drawings

(1,26,000)

 

Less: 10% Depreciation

(43,280)

3,89,520

Add: Net Profit

1,90,700

30,64,700

Furniture

1,02,400

 

 

 

Less: 5% Depreciation

(5,120)

97,280

 

 

Land and Building

6,51,600

 

 

Computer

60,000

 

 

Prepaid Insurance

3,600

 

 

Closing Stock

12,74,100

 

37,56,200

 

37,56,200

 

 

 

 



Page No 19.67:

Answer:

Financial Statement of Sanjiv Sondhi

Trading Account

for the year ended March 31, 2017

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, 2017

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, 2017

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 19.67:

Answer:

Financial Statement of Ram

Trading Account

for the year ended March 31, 2017

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

 

 

 

  Less: Machinery A/c           (1,000)      

Add: Outstanding Wages

570

8,130

 

 

Carriage Inwards

2,310

 

 

Light and Water

7,950

 

 

Gross Profit (Balance Figure)

55,120

 

 

 

1,62,940

 

1,62,940

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2017

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Depreciation on:

 

Gross Profit

55,120

Leasehold Premises

1,250

 

Discount

180

Plant and Machinery

2,500

3,750

 

 

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

16,150

 

 

Office Expenses

9,520

 

 

Carriage Outwards

3,240

 

 

Net Profit (Balancing Figure)

14,120

 

 

 

55,300

 

55,300

 

 

 

 

 

Balance Sheet

as on March 31, 2017

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

90,000

 

Fixed Assets

 

Less: Drawings

(7,000)

 

Leasehold Premises

25,000

 

Add: Net Profit

14,120

97,120

Less: 5% Depreciation

(1,250)

23,750

Current Liabilities

 

Plant and Machinery

25,000

 

Sundry Creditors

16,980

Less: 10% Depreciation

(2,500)

22,500

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

 

1,14,670

 

1,14,670

 

 

 

 

             
Note: Wages for installation of machinery reduces the value of wages and increase the value of machinery.



Page No 19.68:

Answer:

Financial Statements of M/s Arjun and Sons

Trading Account

for the year ended March 31, 2017

Dr.

 

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

4,20,000

Sales

15,50,000

Purchases

8,26,000

 

Closing Stock

6,40,000

Less: Return Outwards

(16,000)

8,10,000

 

 

Carriage Inwards

12,000

 

 

Wages

40,000

 

 

 

Add: Outstanding

24,000

64,000

 

 

Power

60,000

 

 

Gross Profit (Balancing Figure)

8,24,000

 

 

 

21,90,000

 

21,90,000

 

 

 

 

           

 

Profit and Loss Account

for the year ended March 31, 2017

Dr.

 

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Depreciation on Machinery

50,000

Gross Profit

8,24,000

Rent

2,20,000

 

 

 

Add: Outstanding Rent

20,000

2,40,000

 

 

Salary

1,50,000

 

 

Insurance

36,000

 

 

Interest on Bank Loan (for 6 Months)

10,000

 

 

Bad Debts

6,000

 

 

 

Add: Provision for Doubtful Debts

10,000

16,000

 

 

Manger’s Commission

29,273

 

 

Net Profit (Balancing Figure)

2,92,727

 

 

 

8,24,000

 

8,24,000

 

 

 

 

           

 

Balance Sheet

as on March 31, 2017

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

8,00,000

 

Fixed Assets

 

Less: Drawings

(1,90,000)

 

Machinery

5,00,000

 

Add: Net Profit

2,92,727

9,02,727

Less: 10% Depreciation

(50,000)

4,50,000

8% Bank Loan

2,50,000

 

Furniture

1,40,000

Add: Interest Outstanding

10,000

2,60,000

Current Assets

 

Current Liabilities

 

Closing Stock

6,40,000

Creditors

1,89,000

Debtors

2,06,000

 

Wages Outstanding

24,000

Less: Bad Debts

(6,000)

 

Rent Outstanding

20,000

 

2,00,000

 

Manger’s Commission Payable

29,273

Less: 5% Provision for Doubtful Debts

(10,000)

1,90,000

 

 

Cash in Hand

15,000

 

14,35,000

 

14,35,000

 

 

 

 

Working Notes:

WN1 Calculation of Interest on Loan

Bank Loan = Rs 2,50,000

Interest on Loan (from Oct. 01 to Mar. 31) = 2,50,000×8100×612=Rs 10,000

WN2 Calculation of Manager’s Commission
Manager's Commission=Profit before charging Commission×10100+RateProfit before charging Commission=8,24,000-5,02,000=3,22,000Manager's Commission = 3,22,000×10100+10=Rs 29,273



Page No 19.69:

Answer:

Financial Statement

Trading Account

for the year ended March 31, 2017

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

2,20,000

Sales

13,45,000

Purchases

11,88,700

Closing Stock

1,24,500

Gross Profit (Balancing Figure)

60,800

 

 

 

14,69,500

 

14,69,500

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2017

Dr.

 

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Rent

9,000

 

Gross Profit

60,800

Add: Outstanding Rent

850

9,850

Net Loss (Balancing Figure)

42,750

General Expenses

10,750

 

 

 

Add: Outstanding General Expenses

1,500

12,250

 

 

Bad Debts

4,000

 

 

 

Add: Provision for Debts

15,800

19,800

 

 

Depreciation on

 

 

 

Plant and Machinery

17,500

 

 

 

Business Premises

6,900

24,400

 

 

Salaries

22,250

 

 

Carriage Outwards

4,000

 

 

Discount

11,000

 

 

 

1,03,550

 

1,03,550

 

 

 

 

             

 

Balance Sheet

as on March 31, 2017

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

7,95,000

 

Fixed Assets

 

Less: Net Loss

(42,750)

7,52,250

Plant and Machinery

1,75,000

 

Current Liabilities

 

Less: 10% Depreciation

(17,500)

1,57,500

Sundry Creditors

1,06,500

Premises

3,45,000

 

Bills Payable

75,000

Less: 2% Depreciation

(6,900)

3,38,100

Rent Outstanding

850

Current Assets

 

General Expenses Outstanding

1,500

Closing Stock

1,24,500

 

 

Sundry Debtors

3,20,000

 

 

 

Less: Bad Debts

(4,000)

 

 

 

 

3,16,000

 

 

 

Less: 5% Provision for Doubtful Debts

(15,80)

3,00,200

 

 

Cash at Bank

15,450

 

 

Cash in Hand

350

 

9,36,100

 

9,36,100

 

 

 

 

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 42,750, therefore, manager commission is not payable.

Page No 19.69:

Answer:

Trading Account

for the year ended March 31, 2017

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, 2017

Dr.

 

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Carriage Outwards

300

Gross Profit

1,93,340

Telephone Charges

3,290

Profit on exchange of Machinery

10,000

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

13,300

 

 

 

Motor Vehicles

17,600

30,900

 

 

Net Profit (Balancing Figure)

53,650

 

 

 

2,03,340

 

2,03,340

 

 

 

 

           

 

Balance Sheet

as on March 31, 2017

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

5,90,000

 

Fixed Assets

 

Less: Drawings

(3,500)

 

Plant and Machinery

1,33,000

 

Add: Net Profit

53,650

6,31,150

Less: 10% Depreciation

(13,300)

1,19,700

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

 

7,56,370

 

7,56,370

 

 

 

 



Page No 19.70:

Answer:

Financial Statements for Mr. G. Vishwanath

Trading Account

for the year ended March 31, 2017

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, 2017

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

 

 

General Expenses

24,000

 

 

 

Less: Wages

(2,000)

22,000

 

 

Depreciation on

 

 

 

Motor Van

22,000

 

 

 

Plant and Machinery

16,000

 

 

 

Computer

7,400

45,400

 

 

Provision for Doubtful Debts

3,265

 

 

Net Profit (Balancing Figure)

58,065

 

 

 

1,97,730

 

1,97,730

 

 

 

 

 

Balance Sheet

as on March 31, 2017

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

2,10,000

 

Fixed Assets

 

Add: Net Profit

58,065

2,68,065

Plant and Machinery

1,60,000

 

Bank Loan

2,00,000

 

Less: 10% Depreciation

(16,000)

1,44,000

Add: Interest Outstanding

10,000

2,10,000

Motor Van

2,20,000

 

Current Liabilities

 

Less: 10% Depreciation

(22,000)

1,98,000

Creditors

27,500

Computer

37,000

 

 

 

Less: 20% Depreciation

(7,400)

29,600

 

 

Current Assets

 

 

 

Closing Stock

15,600

 

 

Debtors

65,300

 

 

 

Less: Provision for Doubtful Debts

(3,265)

62,035

 

 

Cash at Bank

50,000

 

 

Cash in Hand

6,330

 

5,05,565

 

5,05,565

 

 

 

 

Working Note:

Calculation of Interest Outstanding on Loan

Amount of Bank Loan = 2,00,000

Interest on Loan (2,00,000 × 10%)

 20,000

Less: Interest Paid

(10,000)

Interest Outstanding

 10,000



Page No 19.71:

Answer:

Financial Statements of Mr. Prem Prakash

Trading Account

for the year ended March 31, 2017

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

2,17,250

Sales

12,61,770

 

Purchases

8,32,900

 

Less: Sales Return

(74,220)

11,87,550

Less: Purchase Return

(31,720)

8,01,180

Closing Stock

1,65,800

Wages

99,150

 

 

 

Add: Outstanding Wages

8,000

1,07,150

 

 

Factory Fuel and Power

5,420

 

 

Factory Lighting

3,920

 

 

Carriage Inwards

8,970

 

 

Manufacturing Expenses

26,800

 

 

Gross Profit (Balancing Figure )

1,82,660

 

 

 

13,53,350

 

13,53,350

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2017

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Office Salaries

37,450

 

Gross Profit

1,82,660

Add: Outstanding Salaries

3,500

40,950

 

 

Travelling Expenses

9,250

 

 

Carriage on Sales

9,600

 

 

Provision for Doubtful Debts

11,950

 

 

Rent and Taxes

17,650

 

 

 

Add: Rent Outstanding

1,500

19,150

 

 

Office Expenses

27,780

 

 

Discount

4,220

 

 

Insurance

5,700

 

 

 

Less: Prepaid Insurance

(700)

5,000

 

 

Depreciation on

 

 

 

Plant and Machinery(Note)

23,000

 

 

 

Fixtures and Fittings

1,720

24,720

 

 

Net Profit (Balancing Figure)

30,040

 

 

 

1,82,660

 

1,82,660

 

 

 

 

 

Balance Sheet

as on March 31, 2017

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

9,52,300

 

Fixed Assets

 

Less: Drawings

(68,200)

 

Plant and Machinery

5,70,000

 

Add: Net Profit

30,040

9,14,140

Less: 5% Depreciation

(23,000)

5,47,000

Current Liabilities

 

Fixture and Fittings

17,200

 

Creditors

2,26,800

Less: 10% Depreciation

(1,720)

15,480

Bills Payable

64,220

Current Assets

 

Outstanding Wages

8,000

Closing Stock

1,65,800

Outstanding Salaries

3,500

Sundry Debtors

4,78,000

 

Rent Outstanding

1,500

Less: Provision for Doubtful Debts

(11,950)

4,66,050

 

 

Prepaid Insurance

700

 

 

Cash at Bank

22,450

 

 

Cash in Hand

680

 

12,18,160

 

12,18,160

 

 

 

 


Note: Depreciation on Plant & Machinery = 3,50,000×5100+2,20,000×5100×612=Rs 23,000



Page No 19.72:

Answer:

Financial Statements

Trading Account

for the year ended March 31, 2017

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

3,00,000

Sales

15,00,000

 

Purchases

12,00,000

 

Less: Returns

(1,00,000)

14,00,000

Less: Returns

(2,00,000)

10,00,000

Closing Stock

4,50,000

Gross Profit (Balancing Figure)

5,50,000

 

 

 

18,50,000

 

18,50,000

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2017

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Interest outstanding on Loan

30,000

Gross Profit

5,50,000

Establishment Expenses

2,20,000

Commission

50,000

 

Provision for Doubtful Debts

1,00,000

 

Less: Advance Commission

(10,000)

40,000

Add: Bad Debts

50,000

 

Accrued Interest on Deposits

21,000

Less: Existing Provision

(70,000)

80,000

 

 

Depreciation on Furniture

6,000

 

 

Taxes and Insurance

50,000

 

 

 

Less: Prepaid Insurance

(5,000)

 

 

 

Add: Outstanding Taxes

20,000

65,000

 

 

Salaries Outstanding

10,000

 

 

Net Profit (Balancing Figure)

2,00,000

 

 

 

6,11,000