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Page No 19.60:

Answer:

Trading Account

for the year ended March 31, 2018

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, 2018

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, 2018

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 19.61:

Answer:

Trading Account

for the year ended March 31, 2018

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, 2018

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, 2018

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 19.61:

Answer:

Financial Statement of M/s. Ram Prasad & Sons

Trading Account

for the year ended March 31, 2018

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, 2018

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, 2018

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 19.62:

Answer:

Financial statement of M/s. Shradha & Sons

Trading Account

for the year ended March 31, 2018

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, 2018

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, 2018

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 19.62:

Question 5:

​Trial Balance of a business as at 31st March, 2018 is given below:

   

 

 

 

Particulars Dr.
(₹)
Particulars Cr.
(₹)
Stock on 1st April, 2017 25,000 Sales 2,27,800
Furniture 8,000 Commission 500
Plant and Machinery 1,50,000 Returns Outward 1,000
Debtors 30.000 Creditors 40,000
Wages 12,000 Capital 1,50,000
Salaries 20,000    
Bad Debts 1,000    
Purchases 1,20,000    
Electricity Charges 1,200    
Telephone Charges 2,400    
General Expenses 3,000    
Postage Expenses 1,800    
Returns Inward 900    
Insurance Premium 1,500    
Cash in Hand 2,500    
Cash at Bank 40,000    
  4,19,300   4,19,300
     
           

Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date after taking into account the following adjustments:
(i) Closing Stock was valued at ₹7,000.
(ii) Outstanding liabilities for wages were ₹600 and salaries ₹1,400.
(iii) Depreciation is to be provided @ 5% p.a. on all fixed assets.
(iv) Included in Plant and Machinery is a machine purchased for ₹10,000 on 1st October, 2017.
(v) Insurance premium paid in advance ₹200.

[Gross Profit-₹77,300; Net Profit-₹38,050; Balance Sheet Total-₹2,30,050.]

 

Answer:

Trading Account
for the year ended March 31, 2018
Dr.    
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Opening Stock
25,000
Sales
2,27,800
 
Purchases
1,20,000
 
  Less: Returns
900
2,26,900
  Less: Returns
1,000
1,19,000
Closing Stock
7,000
Wages
12,000
 
 
 
  Add: Outstanding Wages
600
12,600
 
 
Gross Profit
77,300
 
 
 
2,33,900
 
2,33,900
       
 
Profit & Loss Account
for the year ended March 31, 2018
Dr.    
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Bad Debts
1,000
Gross Profit
77,300
Insurance Premium
1,500
 
Commission
500
  Less: Prepaid
200
1,300
 
 
Salaries
20,000
 
 
 
  Add: Outstanding Salaries
1,400
21,400
 
 
Electricity Charges
1,200
 
 
General Expenses
3,000
 
 
Postage Expenses
1,800
 
 
Telephone Charges
2,400
 
 
Depreciation on:
 
 
 
Furniture
400
 
 
 
Plant & Machinery
7,250
7,650
 
 
Net Profit
38,050
 
 
 
77,800
 
77,800
       
 
Balance Sheet
as on March 31, 2018
Dr.    
Cr.
Liabilities
Amount
(₹)
Assets
Amount
(₹)
Creditors
40,000
Furniture
8,000
 
Outstanding Wages
600
  Less: Depreciation
400
7,600
Outstanding Salaries
1,400
Plant & Machinery
1,50,000
 
Capital
1,50,000
 
  Less: Depreciation
7,250
1,42,750
  Add: Net Profit
38,050
1,88,050
Cash at Bank
40,000
 
 
Cash in Hand
2,500
 
 
Closing Stock
7,000
 
 
Debtors
30,000
 
 
Prepaid Insurance
200
 
2,30,050
 
2,30,050
       



Page No 19.63:

Question 6:

​Following are the balances extracted from the books of Narain Lal on 31st March, 2018:​

   

 

 

 

Particulars Amount
(₹)

Particulars 

Amount

(₹)

Narain Lal's Capital 3,00,000 Sales 15,00,000
Narain Lal's Drawings 50,000 Sales Return 20,000
Furniture and Fittings 26,000 Discount (Dr.) 16,000
Bank Overdraft 42,000 Discounts (Cr.) 20,000
Creditors 1,38,000 Insurance 20,000
Business Premises 2,00,000 General Expenses 40,000
Stock on 1st April, 2017 2,20,000 Salaries 90,000
Debtors 1,80,000 Commission (Dr.) 22,000
Rent from Tenants 10,000 Carriage on Purchases 18,000
Purchases 11,00,000

Bad Debts Written off

8,000

           

Additional Information:
(i) Closing Stock as on 31st March, 2018 was ₹2,00,600.
(ii) Depreciate: Business Premises by ₹3,000 and Furniture and Fittings by ₹2,500.
(iii) Make a provision of 5% on debtors for doubtful debts.
(iv) Carry forward ₹2,000 for unexpired insurance.
(v) Outstanding salary was ₹15,000.

Prepare Trading and Profit and Loss Account for the year and Balance Sheet as at that date.

[Gross Profit-₹3,42,600; Net Profit-₹1,49,100; Balance Sheet Total-₹5,94,100.]

[Hint: ₹2,000 out of Insurance Expenses are prepaid Insurance.]

Answer:

Trading Account
for the year ended March 31, 2018
Dr.    
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Opening Stock
2,20,000
Sales
15,00,000
 
Purchases
11,00,000
  Less: Returns
20,000
14,80,000
Carriage on Purchases
18,000
Closing Stock
2,00,600
Gross Profit
3,42,600
 
 
 
16,80,600
 
16,80,600
       
 
Profit & Loss Account
for the year ended March 31, 2018
Dr.    
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Commission
22,000
Gross Profit
3,42,600
Insurance Premium
20,000
 
Discount
20,000
  Less: Prepaid
2,000
18,000
Rent from Tenants
10,000
Salaries
90,000
 
 
 
  Add: Outstanding Salaries
15,000
1,05,000
 
 
Bad Debts Written Off
8,000
 
 
Provision for Doubtful Debts
9,000
 
 
Discount
16,000
 
 
General Expenses
40,000
 
 
Depreciation on:
 
 
 
  Furniture
2,500
 
 
 
  Business Premises
3,000
5,500
 
 
Net Profit
1,49,100
 
 
 
3,72,600
 
3,72,600
       
 
Balance Sheet
as on March 31, 2018
Dr.    
Cr.
Liabilities
Amount
(₹)
Assets
Amount
(₹)
Bank Overdraft
42,000
Furniture & Fittings
26,000
 
Creditors
1,38,000
  Less: Depreciation
2,500
23,500
Outstanding Salaries
15,000
Business Premises
2,00,000
 
Capital
3,00,000
 
  Less: Depreciation
3,000
1,97,000
  Less: Drawings
50,000
 
Debtors
1,80,000
 
  Add: Net Profit
1,49,100
3,99,100
  Less: Provision
9,000
1,71,000
 
 
Closing Stock
2,00,600
 
 
Prepaid Insurance
2,000
 
5,94,100
 
5,94,100
       



Page No 19.64:

Answer:

Financial statements of Mr. Niranjan

Trading Account

for the year ended March 31, 2018

Dr.

 

 

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

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, 2018

Dr.

 

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

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

5,000

 

(50,000 × 6% × 9/12)

2,250

Add: Provision for Doubtful Debts

1,750


7,750

Miscellaneous Receipts

1,200

Advertisement expenses

6,000

 

 

Provision for discount on debtors

665

 

 

Insurances

1,500

 

 

Trade Expenses

2,000

 

 

Depreciation on:

 

 

 

Machinery

2,400

 

 

 

Furniture

300

2,700

 

 

Net Profit (Balancing Figure)

73,835

 

 

 

1,25,450

 

1,25,450

 

 

 

 

 

Balance Sheet

as on March 31, 2018

Liabilities

Amount

(₹)

Assets

Amount

(₹)

Capital

1,20,000

 

Fixed Assets

 

Less: Drawings

(21,000)

 

Patents

4,800

Add: Net Profit

73,835

1,72,835

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

 

Bills Payable

800

Add: Accrued Interest

2,250

52,250

 

 

Current Assets

 

 

 

Closing Stock

75,000

 

 

Debtors

40,000

 

 

 

Less: Further Bad Debts

(5,000)

 

 

 

Less: Provision for Doubtful Debts

(1,750)

 

 

 

 

33,250

 

 

 

Less: Provision for Discount

(665)

32,585

 

 

Cash

12,200

 

1,99,635

 

1,99,635

 

 

 

 

Page No 19.64:

Answer:

Financial Statement of Shri O.P. Yadav

Trading Account

for the year ended March 31, 2018

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, 2018

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, 2018

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, 2018

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, 2018

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, 2018

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 19.66:

Answer:

Financial Statements of Shri Sunder Lal

Trading Account

for the year ended March 31, 2018

Dr.

 

 

 

 

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

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, 2018

Dr.

 

 

 

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

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
Computer (60,000×10100×912)

5,120
4,500


52,900

 

 

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)

1,86,200

 

 

 

7,88,100

 

7,88,100

 

 

 

 

 

Balance Sheet

as on March 31, 2018

Liabilities

Amount

(₹)

Assets

Amount

(₹)

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

1,86,200

30,60,200

Furniture

1,02,400

 

 

 

Less: 5% Depreciation

(5,120)

97,280

 

 

Land and Building

6,51,600

 

 

Computer                                                      60,000
Less:10% Depreciation for 9 months           (4,500)


55,500

 

 

Prepaid Insurance

3,600

 

 

Closing Stock

12,74,100

 

37,51,700

 

37,51,700

 

 

 

 


Note:Net Profit as per computation should be ₹1,86,200 but as per Text Book it is ₹1,82,600.



Page No 19.67:

Answer:

Financial Statement of Sanjiv Sondhi

Trading Account

for the year ended March 31, 2018

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, 2018

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, 2018

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, 2018

Dr.

 

 

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

Opening Stock

1,14,600

Sales

14,98,400

 

Purchase

8,22,100

 

Less: Sales Return

(18,200)

14,80,200

Less: Purchases Return

(42,400)

7,79,700

Closing Stock

1,49,200

Wages

85,600

 

 

 

  Less: Machinery A/c           (10,000)      

Add: Outstanding Wages

5,700

81,300

 

 

Carriage Inwards

23,100

 

 

Light and Water

79,500

 

 

Gross Profit (Balance Figure)

5,51,200

 

 

 

16,29,400

 

16,29,400

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2018

Dr.

 

 

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

Depreciation on:

 

Gross Profit

5,51,200

Leasehold Premises

12,500

 

Discount

1,800

Plant and Machinery

25,000

37,500

 

 

Bad Debts

10,000

 

 

 

Add: Further Bad Debts

5,000

 

 

 

Add: Provision for Doubtful Debts

50,000

 

 

 

 

65,000

 

 

 

Less: Existing Provision

(42,400)

22,600

 

 

Rent, Rates and Insurance

69,400

 

 

 

Less: Prepaid Insurance

(6,800)

62,600

 

 

Salaries

1,61,500

 

 

Office Expenses

95,200

 

 

Carriage Outwards

32,400

 

 

Net Profit (Balancing Figure)

1,41,200

 

 

 

5,53,000

 

5,53,000

 

 

 

 

 

Balance Sheet

as on March 31, 2018

Liabilities

Amount

(₹)

Assets

Amount

(₹)

Capital

90,0000

 

Fixed Assets

 

Less: Drawings

(7,0000)

 

Leasehold Premises

2,50,000

 

Add: Net Profit

14,1200

9,71,200

Less: 5% Depreciation

(12,500)

2,37,500

Current Liabilities

 

Plant and Machinery

2,50,000

 

Sundry Creditors

1,69,800

Less: 10% Depreciation

(25,000)

2,25,000

Wages Outstanding

5,700

Office Furniture

35,000

 

 

Current Assets

 

 

 

Closing Stock

1,49,200

 

 

Sundry Debtors

38,970

 

 

 

Less: Bad Debts

500

 

 

 

Less: Provision for Doubtful Debts

5,000

3,34,700

 

 

Bills Receivable

12,400

 

 

Cash at Bank

1,24,000

 

 

Cash in Hand

22,100

 

 

Prepaid Insurance

6,800

 

11,46,700

 

11,46,700

 

 

 

 

             
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, 2018

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, 2018

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, 2018

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, 2018

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, 2018

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, 2018

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:

Question 15:

​Following is the Trial Balance of Mr. Bharat on 31st March, 2018.

   

 

 

Particulars Dr.
(₹)
Cr.
(₹)
Capital   40,000
Plant and Machinery 50,000  
Office Furniture and Fittings 2,600  
Stock on 1st April, 2017 48,000  
Accrued Commission 12,000  
Sundry Debtors 45,700  
Cash in Hand 400  
Cash at Bank 6,500  
Wages 1,50,000  
Salaries 14,000  
Purchases 2,13,500  
Sales   4,80,000
Bills Receivable 7,200  
Bills Payable   5,600
Sundry Creditors   52,000
Returns Inward 9,300  
Provision for Doubtful Debts   2,500
Drawings 7,000  
Returns Outward   5,500
Rent 6,000  
Factory Lighting and Heating 800  
Insurance 6,300  
General Expenses 1,000  
Bad Debts 2,500  
Discount 6,500 3,700
Total 5,89,300 5,89,300
   
       

 

Following adjustments are to be made:
(a) Stock on 31st March, 2018 ₹52,000.
(b) Three months' factory lighting and heating due but not paid ₹300.
(c) 5% depreciation to be written off on furniture.
(d) Write off further Bad Debts ₹700.
(e) Provision for Doubtful Debts to be increased to ₹3,000 and Provision of Discount on Debtors @ 2% to be made.
(f) During the year, machinery was purchased for ₹20,000 but it was debtied to the Purchases Account.

You are required to prepare Trading Account, Profit and Loss Account and Balance Sheet.
[Gross Profit-₹1,35,600; Net Profit-₹1,00,830; Balance Sheet Total-₹1,91,730.]

Answer:

Trading Account
for the year ended March 31, 2018
Dr.    
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Opening Stock
48,000
Sales
4,80,000
 
Purchases
2,13,500
 
  Less: Returns
9,300
4,70,700
  Less: Machinery
20,000
 
Closing Stock
52,000
  Less: Returns
5,500
1,88,000
 
 
Factory Lighting & Heating
800
 
 
 
  Add: Outstanding
300
1,100
 
 
Wages
1,50,000
 
 
Gross Profit
1,35,600
 
 
 
5,22,700
 
5,22,700
       
 
Profit & Loss Account
for the year ended March 31, 2018
Dr.    
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Depreciation on Furniture
130
Gross Profit
1,35,600
Discount
6,500
Discount
3,700
General Expenses
1,000
 
 
Insurance Premium
6,300
 
 
Rent
6,000
 
 
Bad Debts
2,500
 
 
 
  Add: Further Bad Debts
700
 
 
 
  Add: Provision for Doubtful Debts
500
 
 
 
  Add: Provision for Discount on Debtors
840
4540
 
 
Salaries
14,000
 
 
Net Profit
1,00,830
 
 
 
1,39,300
 
1,39,300
       
 
Balance Sheet
as on March 31, 2018
Dr.    
Cr.
Liabilities
Amount
(₹)
Assets
Amount
(₹)
Bills Payable
5,600
Furniture & Fixtures
2,600
 
Creditors
52,000
  Less: Depreciation
130
2,470
Factory, Lighting & Heating O/s
300
Debtors
45,700
 
Capital
40,000
 
  Less: Further Bad Debts
700
 
  Less: Drawings
7,000
 
  Less: Provision for DD
3,000
 
  Add: Net Profit
1,00,830
1,33,830
  Less: Provision for Discount
840
41,160
 
 
Plant & Machinery
50,000
 
 
 
  Add: Machinery
20,000
70,000
 
 
Accrued Commission
12,000
 
 
Bills Receivable
7,200
 
 
Closing Stock
52,000
 
 
Cash in Hand
400
 
 
Cash at Bank
6,500
 
1,91,730
 
1,91,730
 
 
   



Page No 19.70:

Answer:

Trading Account

for the year ended March 31, 2018

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, 2018

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, 2018

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