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Question 1:

Following information of an accounting year is given:
Opening Capital â‚¹ 60,000; Drawings â‚¹ 5,000; Capital added during the year â‚¹ 10,000 and Closing Capital â‚¹ 90,000. Calculate the Profit or Loss for the year.

 Statement of Profit or Loss Particulars Amount (Rs) Capital at the end 90,000 Add: Drawings 5,000 95,000 Less: Additional Capital Introduced (10,000) Adjusted Capital at the end 85,000 Less: Capital in the beginning 60,000 Net Profit for the year 25,000

Question 2:

Mayank does not keep proper records of his business, he gives you the following information:

 â‚¹ Opening Capital 1,00,000 Closing Capital 1,25,000 Drawings during the year 30,000 Capital added during the year 37,500

Calculate the profit or loss for the year.

 Statement of Profit or Loss Particulars Amount (Rs) Capital at the end 1,25,000 Add: Drawings 30,000 1,55,000 Less: Additional Capital Introduce (37,500) Adjusted Capital at the end 1,17,500 Less: Capital in the beginning 1,00,000 Net Profit for the year 17,500

Question 3:

Capital of Ganesh Gupta in the beginning of the year was â‚¹ 70,000. During the year his business earned a profit of â‚¹ 20,000, he withdrew â‚¹ 7,000 for his personal use. He sold ornaments of his wife for â‚¹ 20,000, and invested that amount into the business. Find out his Capital at the end of the year.

 Capital at the end = Opening Capital + Additional Capital + Profit − Drawings = 70,000 + 20,000 + 20,000 − 7,000 = Rs 1,03,000

Question 4:

Vikas maintains his books of account on Single Entry System. He provides following information from his books. Find out additional capital introduced in the business during the year 2018–19.
Opening Capital − â‚¹ 1,30,000         Drawings during the year â‚¹ 50,000
Closing Capital − â‚¹ 2,00,000          Profit made during the year â‚¹ 1,00,000

 Additional Capital = Capital at the End + Drawings − (Capital in the Beginning + Profit) = 2,00,000 + 50,000 − (1,30,000 + 1,00,000) = 2,50,000 − 2,30,000 = Rs 20,000

Question 5:

Mohan maintains books on Single Entry System. He gives you the following information:

 â‚¹ Capital on 1st April, 2018 15,200 Capital on 31st March, 2019 16,900 Drawings made during the year 4,800 Capital introduced on 1st August, 2018 2,000

You are required to calculate the Profit or Loss made by Mohan.

 Statement of Profit or Loss Particulars Amount (â‚¹) Capital as on March 31, 2019 16,900 Add: Drawings 4,800 21,700 Less: Addition Capital Introduced (2,000) Adjusted Capital as on March 31, 2019 19,700 Less: Capital as on April 01, 2018 (15,200) Profit made during the year 2018-19 4,500

Question 6:

Mahesh who keeps his books on Single Entry System sells goods at Cost plus 50%. On 1st April, 2018 his Capital was â‚¹ 4,00,000 and on 31st March, 2019 it was â‚¹ 3,50,000. He had withdrawn â‚¹ 20,000 per month besides goods of the sale value of â‚¹ 60,000. How much did he earn in 2018-19?

 Statement of Profit/Loss Particulars Amount (â‚¹) Closing Capital as on 31st March, 2019 3,50,000 Less: Opening Capital as on 1st April, 2018 (4,00,000) Add: Drawings (WN1) 2,80,000 Profit for the Year 2,30,000

Working Notes:

1)

Question 7:

Krishan started his business on 1st April, 2018 with a Capital of â‚¹ 1,00,000. On 31st March, 2019, his assets were:

 â‚¹ Cash 3,200 Stock 34,800 Debtors 31,000 Plant 85,000

He owed â‚¹ 12,000 to sundry creditors and â‚¹ 10,000 to his brother on that date. He withdrew â‚¹ 2,000 per month for his personal expenses. Ascertain his profit.

 Statement of Affairs as on March 31, 2019 Liabilities Amount (â‚¹) Assets Amount (â‚¹) Sundry Creditors 12,000 Cash 3,200 Brother’s Loan 10,000 Stock 34,800 Capital (Balancing Figure) 1,32,000 Debtors 31,000 Plant 85,000 1,54,000 1,54,000

 Statement of Profit or Loss for the year end March 31, 2019 Particulars Amount (â‚¹) Capital as on March 31, 2019 1,32,000 Add: Drawings (Rs 2,000 × 12) 24,000 1,56,000 Less: Capital as on April 01, 2018 (1,00,000) Profit made during the year 2018-2019 56,000

Question 8:

Ram Prashad keeps his books on Single Entry System and from them and the particulars supplied, the following figures were gathered together on 31st March, 2019:
Book Debts â‚¹ 10,000; Cash in Hand â‚¹ 510; Stock-in-Trade (estimated) â‚¹ 6,000; Furniture and Fittings â‚¹ 1,200; Trade Creditors â‚¹ 4,000; Bank Overdraft â‚¹ 1,000; Ram Prashad stated that he started business on 1st April, 2018 with cash â‚¹ 6000 paid into bank but stocks valued at â‚¹ 4,000. During the year he estimated his drawings to be â‚¹ 2,400. You are required to prepare the statement, showing the profit for the year, after writing off 10% for Depreciation on Furniture and Fittings.

 Books of Ram Prashad Statement of Affairs as on March 31, 2019 Liabilities Amount (â‚¹) Assets Amount (â‚¹) Trade Creditors 4,000 Book Debts 10,000 Bank Overdraft 1,000 Cash in Hand 510 Capital (Balancing Figure) 12,590 Stock 6,000 Furniture and Fittings 1,200 Less: 10% Depreciation 120 1,080 17,590 17,590

 Statement of Affairs as on April 01, 2018 Liabilities Amount (â‚¹) Assets Amount (â‚¹) Capital (Balancing Figure) 10,000 Bank 6,000 Stock 4,000 10,000 10,000

 Statement of Profit or Loss for the year and March 31, 2019 Particulars Amount (â‚¹) Capital as on March 31, 2019 12,590 Add: Drawings 2,400 14,990 Less: Capital as on April 01, 2018 (10,000) Profit made during the year 2018-19 4,990

Question 9:

Shruti maintains her books of account from Incomplete Records. Her books provide the following information:

 1st April, 2015 (â‚¹) 31st March, 2016 (â‚¹) Cash 1,200 1,600 Bills Receivable … 2,400 Debtors 16,800 27,200 Stock 22,400 24,400 Investments … 8,000 Furniture 7,500 8,000 Creditors 14,900 11,600

She withdrew â‚¹ 500 per month for personal expenses. She sold her Investments of â‚¹ 16,000 at 5% premium and introduced the amount into business.
You are required to prepare a Statement of Profit or Loss for the year ending 31st March, 2016.

 Statement of Profit/Loss Particulars Amount (â‚¹) Closing Capital 60,000 Less: Opening Capital (33,000) Less: Additional Capital (16,800) Add: Drawings 6,000 Profit for the Year 16,200

Working Notes:

 Opening Statement of Affairs as on April 01, 2015 Dr. Cr. Liabilities Amount (â‚¹) Assets Amount (â‚¹) Creditors 14,900 Cash 1,200 Capital (Bal. Fig.) 33,000 Debtors 16,800 Stock 22,400 Furniture 7,500 47,900 47,900

 Closing Statement of Affairs Dr. Cr. Liabilities Amount Rs Assets Amount Rs Creditors 11,600 Cash 1,600 Capital (Bal. Fig.) 60,000 Bills Receivable 2,400 Debtors 27,200 Stock 24,400 Investments 8,000 Furniture 8,000 71,600 71,600

Question 10:

Hari maintains his books of account on Single Entry System. His books provide the following information:

 1st April, 2018 (â‚¹) 31st March, 2019 (â‚¹) Furniture 2,000 2,000 Stock 28,000 30,500 Sundry Debtors 21,000 34,000 Cash 1,500 2,000 Sundry Creditors 17,500 19,000 Bills Receivable ... 3,000 Loan ... 5,000 Investments ... 10,000

His drawings during the year were â‚¹ 5,000 Depreciate furniture by 10% and provide a reserve for Bad and Doubtful Debts at 10% on Sundry Debtors.
Prepare the statement showing the profits for the year.

 Statements of Affairs as on April 01, 2018 Liabilities Amount (â‚¹) Assets Amount (â‚¹) Sundry Creditors 17,500 Furniture 2,000 Capital (Balancing Figure) 35,000 Stock 28,000 Sundry Debtors 21,000 Cash 1,500 52,500 52,500

 Statement of Affairs as on March 31, 2019 Liabilities Amount (â‚¹) Assets Amount (â‚¹) Sundry Creditors 19,000 Furniture 2,000 Loan 5,000 Less: 10% Depreciation (200) 1,800 Capital (Balancing Figure) 53,900 Stock 30,500 Sundry Debtors 34,000 Less: 10% Reserve for Doubtful Debts (3,400) 30,600 Cash 2,000 Bills Receivables 3,000 Investments 10,000 77,900 77,900

 Statement of Profit or Loss for the year ended March 31, 2019 Particulars Amount (â‚¹) Capital as on March 31, 2019 53,900 Add: Drawings 5,000 58,900 Less: Capital as on April 01, 2018 (35,000) Profit made during the year 2018-19 23,900

Question 11:

A commenced business on 1st April, 2018 with a capital of â‚¹ 10,000. He immediately bought Furniture and Fixtures for â‚¹ 2,000. On 1st October, 2018, he borrowed â‚¹ 5,000 from his wife @ 9% p.a. (interest not yet paid) and introduced a further capital of his own amounting to â‚¹ 1,500. A drew @ â‚¹ 300 per month at the end of each month for household expenses. On 31st March, 2019 his position was as follows:
Cash in Hand â‚¹ 2,800; Sundry Debtors â‚¹ 4,800; Stock â‚¹ 6,800; Bills Receivable â‚¹ 1,600; Sundry Creditors â‚¹ 500 and owing for Rent â‚¹ 150. Furniture and Fixtures to be depreciated by 10%.
Ascertain the profit or loss made by A during 2018–19.

 Statement of Affairs as on March 31, 2019 Liabilities Amount â‚¹ Assets Amount â‚¹ Wife’s Loan 5,000 Furniture and Fixture 2,000 Add: Outstanding Interest Less: 10% Depreciation (200) 1,800 (5,000 × 9% × 6/12) 225 5,225 Cash in Hand 2,800 Sundry Creditors 500 Sundry Debtors 4,800 Rent Outstanding 150 Stock 6,800 Capital (Balancing Figure) 11,925 Bills Receivable 1,600 17,800 17,800

 Statement of Profit or Loss for the year ended March 31, 2019 Particulars Amount â‚¹ Capital as on March 31, 2019 11,925 Add: Drawings (Rs 1,200 × 3) 3,600 15,525 Less: Additional Capital Introduced (1,500) Adjusted Capital as on March 31, 2019 14,025 Less: Capital as on April 01, 2018 (10,000) Profit made during the year 2018-19 4,025

Question 12:

Kuldeep, a general merchant, keeps his accounts on Single Entry System. He wants to know the results of his business on 31st March, 2019 and for that following information is available:

 1st April, 2018 (â‚¹) 31st March, 2019 (â‚¹) Cash in Hand 1,50,000 1,75,000 Bank Balance 7,50,000 8,00,000 Furniture 1,00,000 1,00,000 Stock 5,00,000 6,50,000 Creditors 3,50,000 4,00,000 Debtors 2,50,000 3,00,000

During the year, he had withdrawn â‚¹ 5,00,000 for his personal use and invested â‚¹ 2,50,000 as additional capital. Calculate his profits on 31st March, 2019 and prepare the Statement of Affairs as on that date.

 Statement of Affairs as on April 01, 2018 Liabilities Amount â‚¹ Assets Amount â‚¹ Creditors 3,50,000 Cash in Hand 1,50,000 Capital (Balancing Figure) 14,00,000 Bank Balance 7,50,000 Furniture 1,00,000 Stock 5,00,000 Debtors 2,50,000 17,50,000 17,50,000

 Statement of Affairs as on March 31, 2019 Liabilities Amount â‚¹ Assets Amount â‚¹ Creditors 4,00,000 Cash in Hand 1,75,000 Capital (Balancing Figure) 16,25,000 Bank Balance 8,00,000 Furniture 1,00,000 Stock 6,50,000 Debtors 3,00,000 20,25,000 20,25,000

 Statement of Profit or Loss for the year ended March 31, 2019 Particulars Amount â‚¹ Capital as on March 31, 2019 16,25,000 Add: Drawings 5,00,000 21,25,000 Less: Additional Capital Introduced (2,50,000) Adjusted Capital as on March 31, 2019 18,75,000 Less: Capital as on April 01, 2018 (14,00,000) Profit made during the year 2018-19 4,75,000

Question 13:

Following information is supplied to you by a shopkeeper:

 1st April, 2018 (â‚¹) 31st March, 2019 (â‚¹) Cash 6,000 7,000 Sundry Debtors 68,000 64,000 Stock 59,000 87,000 Furniture 15,000 13,500 Sundry Creditors 20,000 18,000 Bills Payable 15,000 11,000

During the year, he withdrew â‚¹ 2,500 per month for domestic purposes. He also borrowed from a friend at 9% a sum of â‚¹ 20,000 on 1st October, 2018. He has not yet paid the interest. A provision of 5% on debtors for doubtful debts is to be made.
Ascertain the profit or loss made by him during the period.

 Statement of Affairs as on April 01, 2018 Liabilities Amount (â‚¹) Assets Amount (â‚¹) Sundry Creditors 20,000 Cash 6,000 Bills Payable 15,000 Sundry Debtors 68,000 Stock 59,000 Capital (Balancing Figure) 1,13,000 Furniture 15,000 1,48,000 1,48,000

 Statement of Affairs as on March 31, 2019 Liabilities Amount (â‚¹) Assets Amount (â‚¹) Sundry Creditors 18,000 Cash 7,000 Bills Payable 11,000 Stock 87,000 9% Loan from Friend 20,000 Furniture 13,500 Add: Interest Outstanding (2,000 × 9% × 6/12) 900 20,900 Capital (Balancing Figure) 1,18,400 Sundry Debtors 64,000 Less: 5% Provision for Doubtful Debts (3,200) 60,800 1,68,300 1,68,300

 Statement of Profit or Loss for the year ended March 31, 2019 Particulars Amount (â‚¹) Capital as on March 31, 2019 1,18,400 Add: Drawings (Rs 250 × 12) 30,000 1,48,400 Less: Capital as on April 01, 2018 (1,13,000) Profit made during the year 2018-19 35,400

Question 14:

Vikas is keeping his accounts according to Single Entry System. His capital on 31st December, 2015 was â‚¹ 2,50,000 and his capital on 31st December, 2016 was â‚¹ 4,25,000. He further informs you that during the year he gave a loan of â‚¹ 30,000 to his brother on private account and withdrew â‚¹ 1,000 per month for personal purposes. He used a flat for his personal purpose, the rent of which @ â‚¹ 1,800 per month and electricity charges at an average of 10% of rent per month were paid from the business account. During the year he sold his 7% Government Bonds of â‚¹ 50,000 at 1% premium and brought that money into the business.
Prepare a Statement of Profit or Loss for the year ended 31st December, 2016.

 Statement of Profit/Loss Particulars Amount (â‚¹) Closing Capital 4,25,000 Less: Opening Capital (2,50,000) Less: Additional Capital (50,500) Add: Drawings 65,760 Profit for the Year 1,90,260

Note: Drawings include loan to brother, withdrawals in cash, rent and electricity charges.

Question 15:

Manu started business with a capital of â‚¹ 4,00,000 on 1st October, 2005. He borrowed from his friend a sum of â‚¹ 1,00,000. He brought further â‚¹ 75,000 as capital on 31st March, 2006, his position was:
Cash: â‚¹ 30,000; Stock: â‚¹ 4,70,000; Debtors: â‚¹ 3,50,000 and Creditors: â‚¹ 3,00,000.
He withdrew â‚¹ 8,000 per month during this period. Calculate profit on loss for the period.

 Statement of Affairs for the year ending March 31, 2006 Liabilities Amount Rs Assets Amount Rs Creditors 3,00,000 Cash 30,000 Loan from Friend 1,00,000 Stock 4,70,000 Debtors 3,50,000 Capital 4,50,000 (Balancing Figure) 8,50,000 8,50,000

 Statement of Profit and Loss for the year ending March 31, 2006 Particulars Amount Rs Capital as on March 31, 2006 4,50,000 Add: Drawings (8,000 × 6) 48,000 4,98,000 Less: Additional Capital Introduced (75,000) Adjusted Capital as on March 31, 2006 4,23,000 Less: Capital as on Oct.01, 2005 (4,00,000) Profit made during the year 2005-06 23,000

Question 16:

From the following information relating to the business of Abhay who keeps books on Single Entry System, ascertain the profit or loss for the year 2018–19:

 1st April, 2018 (â‚¹) 31st March, 2019 (â‚¹) Machinery 8,000 8,000 Furniture 2,000 2,000 Stock 7,000 5,000 Sundry Debtors 4,000 4,500 Bank Balance 200 (Cr.) 1,800 (Dr.) Sundry Creditors 5,000 3,500

Abhay withdrew â‚¹ 4,100 during the year to meet his household expenses. He introduced â‚¹ 300 as fresh capital on 15th January, 2019. Machinery and Furniture are to be depreciated at 10% and 5% p.a. respectively.

 Statement of Affairs as on April 01, 2018 Liabilities Amount (â‚¹) Assets Amount (â‚¹) Bank Overdraft 200 Machinery 8,000 Sundry Creditors 5,000 Furniture 2,000 Capital (Balancing Figure) 15,800 Stock 7,000 Sundry Debtors 4,000 21,000 21,000

 Statement of Affairs as on March 31, 2019 Liabilities Amount (â‚¹) Assets Amount (â‚¹) Sundry Creditors 3,500 Machinery 8,000 Capital (Balancing Figure) 16,900 Less: 10% Depreciation (800) 7,200 Furniture 2,000 Less: 5% Depreciation (100) 1,900 Stock 5,000 Sundry Debtors 4,500 Bank Balance 1,800 20,400 20,400

 Statement of Profit or Loss for the year ended March 31, 2019 Particulars Amount (â‚¹) Capital as on March 31, 2019 16,900 Add: Drawings 4,100 21,000 Less: Additional Capital Introduced (300) Adjusted Capital as on March 31, 2019 20,700 Less: Capital as on April 01, 2018 (15,800) Profit made during the year 2018-19 4,900

Question 17:

Aditya a retailer, has not maintained proper books of account but it has been possible to obtain the following details:

 Last Year (â‚¹) This Year (â‚¹) Trade Creditors 6,270 5,890 Loan from Naresh 5,000 5,000 Stock 12,350 11,980 Cash in Hand 570 650 Shop Fittings 7,250 7,800 Trade Debtors 5,280 4,560 Bank Balance 3,990 4,130

Calculate the net profit for this year and draft the Statement of Affairs at the end of the year after noting that:
(a) Shop Fittings are to be depreciated by â‚¹ 780.
(b) Aditya has drawn â‚¹ 100 per week for his own use.
(c) Included in the Trade Debtors is an irrecoverable balance of â‚¹ 270.
(d) Interest at 5% p.a. is due on the loan from Naresh but has not been paid for the year.

 In the books of Aditya Statement of Affairs (Previous Year) Liabilities Amount (â‚¹) Assets Amount (â‚¹) Trade Creditors 6,270 Stock 12,350 Loan from Naresh 5,000 Cash in Hand 570 Capital (Balancing Figure) 18,170 Shop Fittings 7,250 Trade Debtors 5,280 Bank Balance 3,990 29,440 29,440

 Statement of Affairs (Current Year) Liabilities Amount (â‚¹) Assets Amount (â‚¹) Trade Creditors 5,890 Stock 11,980 Loan from Naresh 5,000 Cash in Hand 650 Add: Outstanding Interest (5,000 × 5%) 250 5,250 Shop Fittings 7,800 Capital (Balancing Figure) 16,930 Less: Depreciation (780) 7,020 Trade Debtors 4,560 Less: Bad Debts (270) 4,290 Bank Balance 4,130 28,070 28,070

 Statement of Profit or Loss (Current Year) Particulars Amount (Rs) Capital of the Current Year 16,930 Add: Drawings (Rs 100 × 52) 5,200 22,130 Less: Capital of the Previous Year (18,170) Profit made during the Current Year 3,960

Question 18:

On 1st April, 2018, X started a business with â‚¹ 40,000 as his capital. On 31st March, 2019, his position was as follows:

 (â‚¹) Creditors 30,000 Bills Payable 10,000 Bank 10,000 Debtors 50,000 Stock 40,000 Plant 68,000 Furniture 12,000

During the year 2018–19, X drew â‚¹ 24,000. On 1st October, 2018, he introduced further capital amounting to â‚¹ 30,000. You are required to ascertain profit or loss made by him during the year 2018–19.
(a) Plant is to be depreciated at 10%.
(b) A provision of 5% is to be made against debtors.
Also prepare the Statement of Affairs as on 31st March, 2019.

 Statement of Affairs for the year ended March 31, 2019 Liabilities Amount (â‚¹) Assets Amount (â‚¹) Creditors 30,000 Bank 10,000 Bills Payable 10,000 Debtors 50,000 Capital (Balancing Figure) 1,30,700 Less: 5% Provision for Doubtful Debts (2,500) 47,500 Stock 40,000 Plant 68,000 Less: 10% Depreciation (6,800) 61,200 Furniture 12,000 1,70,700 1,70,700

 Statement of Profit or Loss for the year ended March 31, 2019 Particulars Amount (â‚¹) Capital as on March 31, 2019 1,30,700 Add: Drawings 24,000 1,54,700 Less: Additional Capital Introduced (30,000) Adjusted Capital as on March 31, 2019 1,24,700 Less: Capital as on April 01, 2018 (40,000) Profit made during the year 2018-19 84,700

Question 19:

Chaman maintains his books according to Single Entry System. Following figures were available from the books for the six months ended 31st December 2018:

 1st July, 2018 (â‚¹) 31st December, 2018 (â‚¹) Plant and Machinery 1,50,000 1,40,000 Debtors 65,000 60,000 Cash and Bank balances 25,000 31,000 Stock 40,000 45,000 Creditors 9,000 10,000

(a) He had withdrawn â‚¹ 200 in the beginning of every month for household purposes.

(b) Depreciation on Plant and Machinery @ 10% p.a.

(c) Further Bad Debts â‚¹ 5,000 and Provision for Doubtful Debts to be created @ 2%.

(d) During the period, salaries have been prepaid by â‚¹ 500 while wages outstanding were â‚¹ 1,000.

(e) Interest on drawings to be reckoned @ 6% p.a.

You are required to prepare the Statement of Profit or Loss for the half year ended 31st December, 2018, followed by Revised Statement of Affairs as on that date.

 Statement of Affairs as on July 01,2018 Liabilities Amount (â‚¹) Assets Amount (â‚¹) Creditors 9,000 Cash and Bank balances 25,000 Capital (Balancing Figure) 2,71,000 Debtors 65,000 Stock 40,000 Plant and Machinery 1,50,000 2,80,000 2,80,000

 Statement of Affairs as on December 31,2018 Liabilities Amount (â‚¹) Assets Amount (â‚¹) Creditors 10,000 Cash and Bank balances 31,000 Outstanding Wages 1,000 Debtors 60,000 Capital (Balancing Figure) 2,65,500 Stock 45,000 Prepaid Salary 500 Plant and Machinery 1,40,000 2,76,500 2,76,500

 Statement of Profit or Loss for the half year ended December 31,2018 Particulars Amount (â‚¹) Capital at the end of the year 2,65,500 Add: Drawings made during the year 1,200 Adjusted capital at the end of the year 2,66,700 Less: Capital in the beginning of the year 2,71,000 Gross Loss (Profit before Adjustment) 4,300 Less: Interest on Drawings 21 Add: Depreciation on Plant and Machinery 7,000 Bad Debts 5,000 Provision for Doubtful Debts 1,100 Net Loss (Profit After Adjustment) 17,379

 Statement of Affairs (After adjustments) as on December 31, 2018 Liabilities Amount (â‚¹) Assets Amount (â‚¹) Creditors 10,000 Cash and Bank balances 31,000 Outstanding Wages 1,000 Debtors 60,000 Capital 2,71,000 Less: Bad Debts 5,000 Less: Net Loss 17,379 55,000 Less: Drawings 1,200 Less: Provision for D.D. 1,100 53,900 Less: Interest on Drawings 21 2,52,400 Plant and Machinery 1,40,000 Less: Depreciation 7,000 1,33,000 Stock 45,000 Prepaid Salary 500 2,63,400 2,63,400

Working Notes:

WN1: Depreciation on plant and machinery would be charged for six months only i.e., Rs 7,000 $\left(\frac{1,40,000×10×6}{100×12}\right)$

WN2: Amount of Provision for Doubtful Debts would be Rs 1,100 $\left(\frac{2}{100}×\left(60,000-5,000\right)\right)$

WN3:

Calculation of Amount of Interest on Drawings:

 Date Amount Months Product Jul. 01 200 6 1,200 Aug. 01 200 5 1,000 Sep. 01 200 4 800 Oct. 01 200 3 600 Nov. 01 200 2 400 Dec. 01 200 1 200 Total 4,200

Interest on Drawings

Question 20:

A firm sells goods at a Gross profit of 25% of sales. On 1st April, 2018 the Stock was â‚¹ 40,000; Purchases were â‚¹ 1,10,000 and the Stock on 31st March, 2019 was â‚¹ 30,000. What was the value of Sales?

Cost of Goods Sold = Net Sales – Gross Profit
Cost of Goods Sold = Opening Stock + Purchases – Closing Stock
Cost of Goods Sold = 40,000 + 1,10,000 – 30,000 = â‚¹ 1,20,000
Gross Profit = 25% of Sales or 33.33% of COGS
Gross Profit = â‚¹ 40,000
Net Sales = Cost of Goods Sold + Gross Profit
Net Sales = 1,20,000 + 40,000 = â‚¹ 1,60,000

Question 21:

A firm sells goods at Cost plus 25%. Sales to credit customers (3/4 of total) was â‚¹ 1,80,000. His Opening and Closing Stocks were â‚¹ 20,000 and â‚¹ 15,000 respectively. Find out the value of Purchases.

Credit Sales = â‚¹ 1,80,000 (3/4 of Total Sales)
Total Sales = â‚¹ 2,40,000
Gross Profit = 25% of Cost or 20% of Sales
Gross Profit = â‚¹ 48,000
Cost of Goods Sold = Net Sales – Gross Profit
Cost of Goods Sold = 2,40,000 – 48,000 = â‚¹ 1,92,000
Cost of Goods Sold = Opening Stock + Purchases – Closing Stock
1,92,000 = 20,000 + Purchases – 15,000
Purchases = â‚¹ 1,87,000

Question 22:

Calculate Stock in the beginning:

 â‚¹ Sales 80,000 Purchases 60,000 Stock at the end 8,000 Loss on Cost 1/6

Let cost be Rs 100
Loss = â‚¹ 16.67 (1/6 of 100)
Sale = â‚¹ 83.33 (100 – 16.67)
% Loss on Sale = 20% (16.67/83.33)
Loss on Sale = â‚¹ 16,000 (20% of 80,000)
Cost of Goods Sold = Net Sales + Loss on Sale
Cost of Goods Sold = 80,000 + 16,000 = â‚¹ 96,000
Cost of Goods Sold = Opening Stock + Purchases – Closing Stock
96,000 = Opening Stock + 60,000 – 8,000
Opening Stock = â‚¹ 44,000

Question 23:

Calculate the Stock at the end:

 â‚¹ Stock in the beginning 20,000 Cash Sales 60,000 Credit Sales 40,000 Purchases 70,000 Rate of Gross Profit on Cost 1/3

Rate of Gross Profit on Cost = 1/3
Rate of Gross Profit on Sale = 1/4
Total Sales = Cash Sales + Credit Sales
Total Sales = 60,000 + 40,000 = 1,00,000
Gross Profit = â‚¹ 25,000 (1/4 of 1,00,000)
Cost of Goods Sold = Net Sales – Gross Profit
Cost of Goods Sold = 1,00,000 – 25,000 = â‚¹ 75,000
Cost of Goods Sold = Opening Stock + Purchases – Closing Stock
75,000 = 20,000 + 70,000 – Closing Stock
Closing Stock = â‚¹ 15,000

Question 24:

Calculate the value of Closing Stock from the following information:

 â‚¹ Purchases 93,000 Wages 20,000 Sales 1,20,000 Carriage Outwards 3,200 Opening Stock 16,000 Rate of Gross Profit 25% on Cost.

Rate of Gross Profit on Cost = 1/4
Rate of Gross Profit on Sale = 1/5
Gross Profit = â‚¹ 24,000 (1/5 of 1,20,000)
Cost of Goods Sold = Net Sales – Gross Profit
Cost of Goods Sold = 1,20,000 – 24,000 = â‚¹ 96,000
Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses – Closing Stock
96,000 = 16,000 + 93,000 + 20,000 – Closing Stock
Closing Stock = â‚¹ 33,000

Question 25:

Calculate Purchases:

 â‚¹ Cost of Goods Sold 65,000 Stock in the beginning 4,000 Closing Stock 5,000

Cost of Goods Sold = Opening Stock + Purchases – Closing Stock
65,000 = 4,000 + Purchases – 5,000
Purchases = â‚¹ 66,000

Question 26:

Calculate Sales:

 Cost of goods sold â‚¹ 2,00,000 Rate of Gross Profit 20% on Sales

Rate of Gross Profit on Sale = 1/5
Rate of Gross Profit on Cost = 1/4
Gross Profit = â‚¹ 50,000 (1/4 of 2,00,000)
Sales = Cost of Goods Sold + Gross Profit
Sales = 2,00,000 + 50,000 = â‚¹ 2,50,000

Question 27:

Debtors in the beginning of the year were â€‹â‚¹ 30,000, Sales on credit during the year were â‚¹ 75,000, Cash received from the Debtors during the year was â‚¹ 35,000, Returns Inward (regarding credit sales) were â‚¹ 5,000 and Bills Receivable drawn during the year were â‚¹ 25,000. Find the balance of Debtors at th end of the year, assuming that there were Bad Debts during the year of â‚¹ 2,000.

 Debtors Account Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Balance b/d 30,000 Cash A/c 35,000 Sales A/c 75,000 Sales Return A/c 5,000 Bill Receivable A/c 25,000 Bad-Debts A/c 2,000 Balance c/d 38,000 1,05,000 1,05,000

Question 28:

Creditors on 1st April, 2018 were â‚¹ 15,000, Purchases on credit were â‚¹ 30,000, Cash paid to Creditors during 2018-19 was â‚¹ 20,000, Returns Outward (regarding credit purchases) were â‚¹ 1,000 and Bills Payable accepted during the year were â‚¹ 10,000. Find the balance of Creditors on 31st March, 2019.

 Creditors Account Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Cash A/c 20,000 Balance b/d 15,000 Purchases Return A/c 1,000 Purchases A/c 30,000 Bills Payable A/c 10,000 Balance c/d 14,000 45,000 45,000

Question 29:

Following information is given of an accounting year:
Opening Creditors â‚¹ 15,000; Cash paid to creditors â‚¹ 15,000; Returns Outward â‚¹ 1,000 and Closing creditors â‚¹ 12,000.
Calculate Credit Purchases during the year.

 Creditors Account Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Cash A/c 15,000 Balance b/d 15,000 Purchases Return A/c 1,000 Purchases A/c 13,000 Balance c/d 12,000 28,000 28,000

Question 30:

From the following information supplied by Rohit, who keeps his books on Single Entry System, you are required to calculate Total Purchases:

 â‚¹ Opening balance of Bills Payable 5,000 Opening balance of Creditors 6,000 Closing balance of Bills Payable 7,000 Closing balance of Creditors 4,000 Cash paid to Creditors during the year 30,200 Bills Payable discharged during the year 8,900 Returns Outward 1,200 Cash Purchases 25,800

 Creditors Account Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Cash A/c 30,200 Balance b/d 6,000 Purchases Return A/c 1,200 Purchases A/c 40,300 Bills Payable A/c 10,900 Balance c/d 4,000 46,300 46,300

Total Purchases = Cash Purchases + Credit Purchases

Total Purchases = 25,800 + 40,300 = â‚¹ 66,100

Question 31:

Cash sales of a business in a year were â€‹â‚¹ 85,000, the Cost of Goods Sold (including direct expenses) was â‚¹ 97,000 and Gross Profit as shown by the Trading Account for the year was â‚¹ 1,29,000. Calculate Credit Sales during the year.

Gross Profit = Net Sales – Cost of Goods Sold
1,29,000 = Net Sales – 97,000
Net Sales = â‚¹ 2,26,000
Credit Sales = Total Net Sales – Cash Sales
Credit Sales = 2,26,000 – 85,000 = â‚¹ 1,41,000

Question 32:

From the following information, calculate Total Sales made during the period:

 â‚¹ Debtors as on 1st April, 2018 20,400 Cash received from debtors during the year (as per Cash Book) 60,800 Returns Inward 5,400 Bad Debts 2,400 Debtors as on 31st March, 2019 27,600 Cash Sales (as per Cash Book) 56,800

 Debtors Account Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Balance b/d 20,400 Cash A/c 60,800 Sales A/c 75,800 Sales Return A/c 5,400 Bad-Debts A/c 2,400 Balance c/d 27,600 96,200 96,200

Total Sales = Cash Sales + Credit Sales

Total Sales = 56,800 + 75,800 = â‚¹ 1,32,600

Question 33:

Calculate Total Sales from the following information:

 â‚¹ Bills Receivables as on 1st April, 2018 7,800 Debtors as on 1st April, 2018 30,800 Cash received on maturity of Bills Receivable during the year 20,900 Cash received from Debtors 70,000 Bad Debts written off 4,800 Returns Inward 8,700 Bills Receivable dishonoured 1,800 Bills Receivable on 31st March, 2019 6,000 Debtors as on 31st March, 2019 25,500 Cash Sales during the year 15,900

 Debtors Account Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Balance b/d 30,800 Cash A/c 70,000 Bill Receivable A/c 1,800 Sales Return A/c 8,700 Sales A/c 97,300 Bad-Debts A/c 4,800 Bill Receivable A/c 20,900 Balance c/d 25,500 1,09,000 1,09,000

Total Sales = Cash Sales + Credit Sales

Total Sales = 15,900 + 97,300 = â‚¹ 1,13,200

Question 34:

From the following information, ascertain the opening balance of Sundry Debtors and the closing balance of Sundry Creditors:

 â‚¹ Sundry Creditors as on 31st March, 2018 20,600 Sundry Debtors as on 31st March, 2019 37,400 Stock as on 31st March, 2018 26,000 Stock as on 31st March, 2019 24,000
During the year ended 31st March, 2019:
 Purchases 1,10,000 Discount allowed by creditors 800 Discount allowed to customers 1,100 Cash paid to sundry creditors 95,000 Bills Payable issued by them 14,000 Bills Receivable received from customers 16,500 Cash received  from customers 1,30,000 Bills receivable dishonoured 1,900

 Debtors Account Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Balance b/d 43,100 Cash A/c 1,30,000 Bill Receivable A/c 1,900 Discount Allowed A/c 1,100 Sales A/c 1,40,000 Bill Receivable A/c 16,500 Balance c/d 37,400 1,85,000 1,85,000

Cost of Goods Sold = Opening Stock + Purchases – Closing Stock

Cost of Goods Sold = 26,000 + 1,10,000 – 24,000 = 1,12,000

Sales = Cost of Goods Sold + Gross Profit

Sales = 1,12,000 + 48,000 = â‚¹ 1,60,000

Credit Sales = 1,60,000 – 20,000 = â‚¹ 1,40,000

 Creditors Account Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Cash A/c 95,000 Balance b/d 20,600 Discount Received A/c 800 Purchases A/c 1,10,000 Bills Payable A/c 14,000 Balance c/d 20,800 1,30,600 1,30,600

Question 35:

Roshan, whose accounts are maintained by Single Entry System, acquired a retail business on 1st April, 2018. He had â‚¹ 40,000 of his own and he borrowed â‚¹ 20,000 from his wife. He paid â‚¹ 15,000 for Goodwill, â‚¹ 5,000 for Furniture and â‚¹ 35,000 for Stock.
Total cash received by him during the financial year from the Debtors was â‚¹ 2,30,000. His payments were:

 â‚¹ Purchases 1,56,000 Salary and Wages 21,400 Trade Expenses 7,200
Rent:
 For business premises 5,920 For private house 2,960 Payments made for domestic purposes and drawings 26,400

At the end of the year, the Stock was â‚¹ 37,500. He owed â‚¹ 13,500 to Creditors for goods and his customers owed to him â‚¹ 15,000. Provide 5% for Depreciation on Furniture, Interest at 5% on wife's Loan and â‚¹ 1,000 for Doubtful Debts.
Prepare the Cash Account, the Profit and Loss Account for the year ended 31st March, 2019 and the Balance Sheet at the close of the year.

 Trading Account for the year ended 31st March, 2019 Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Opening Stock 35,000 Sales 2,45,000 Purchases: Cash 1,56,000 Closing Stock 37,500 Credit 13,500 1,69,500 Gross Profit c/d 78,000 2,82,500 2,82,500

 Profit and Loss Account for the year ended March 31, 2019 Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Salary and Wages 21,400 Gross Profit b/d 78,000 Trade Expenses 7,200 Rent for Business Premises 5,920 Provision for Doubtful Debts 1,000 Depreciation on Furniture 250 Interest on wife’s loan 1,000 Net Profit t/d to Capital 41,230 78,000 78,000

 Balance Sheet as on March 31, 2019 Liabilities Amount (â‚¹) Assets Amount (â‚¹) Creditors 13,500 Cash Balance 15,120 Wife’s Loan from Wife 20,000 Stock 37,500 Add: O/s Interest 1,000 21,000 Furniture 5,000 Capital 40,000 Less: Depreciation 250 4,750 Less: Drawings 29,360 Debtors 15,000 10,640 Less: Provision for Doubtful Debts 1,000 14,000 Add: Net Profit 41,230 51,870 Goodwill 15,000 86,370 86,370

 Cash Account Liabilities Amount (â‚¹) Assets Amount (â‚¹) Capital 40,000 Goodwill 15,000 Wife’s Loan 20,000 Furniture 5,000 Debtors 2,30,000 Stock 35,000 Purchases 1,56,000 Salary and Wages 21,400 Trade Expenses 7,200 Rent for Business Premises 5,920 Drawings( 2,960+26,400) 29,360 Balance c/d 15,120 2,90,000 2,90,000

Working Notes

 Dr. Creditors Account Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Balance c/d 13,500 Purchases-Credit (B/F) 13,500 13,500 13,500

 Dr. Debtors Account Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Sales A/c (B/F) 2,45,000 Cash 2,30,000 Balance c/d 15,000 2,45,000 2,45,000

Question 36:

Vijay commenced business as food grains merchant on 1st April, 2018 with a capital of â‚¹ 4,00,000. On the same day, he purchased furniture for â‚¹ 80,000. From the following particulars obtained from his books which do not conform to Double Entry principles, you are required to prepare the Trading and Profit and Loss Account for the year ended 31st March, 2019 and the Balance Sheet as on that date:

 â‚¹ Sales (including Cash Sales â‚¹ 2,00,000) 5,00,000 Purchases (including Cash Purchases â‚¹ 1,20,000 4,00,000 Vijay's Drawings (in Cash) 40,000 Salaries to Staff 48,000 Bad Debts written off 4,000 Trade Expenses paid 16,000

Vijay used goods of â‚¹ 12,000 for personal purposes during the year. On 31st March, 2019, his Debtors amounted to â‚¹ 1,40,000 and Creditors â‚¹ 80,000. Stock-in-Trade on that date was â‚¹ 1,60,000.

 Trading Account for the year ended March 31, 2019 Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Purchases 4,00,000 Sales 5,00,000 Less:  Drawings 12,000 3,88,000 Closing Stock 1,60,000 Gross Profit 2,72,000 6,60,000 6,60,000

 Profit & Loss Account for the year ended March 31, 2019 Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Salary 48,000 Gross Profit 2,72,000 Trade Expenses 16,000 Bad Debts 4,000 Net Profit 2,04,000 2,72,000 2,72,000

 Balance Sheet as on March 31, 2019 Dr. Cr. Liabilities Amount (â‚¹) Assets Amount (â‚¹) Capital 4,00,000 Cash in Hand 2,56,000 Less:  Drawings 52,000 Debtors 1,40,000 Add: Net Profit 2,04,000 5,52,000 Less: Bad Debts 4,000 1,36,000 Creditors 80,000 Furniture 80,000 Closing Stock 1,60,000 6,32,000 6,32,000

 Cash Account Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Capital A/c 4,00,000 Creditors A/c 2,00,000 Debtors A/c 1,60,000 Drawings A/c 40,000 Sales A/c 2,00,000 Furniture A/c 80,000 Purchases A/c 1,20,000 Salaries A/c 48,000 Trade Expenses A/c 16,000 Balance c/d 2,56,000 7,60,000 7,60,000

 Debtors Account Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Sales A/c 3,00,000 Cash A/c 1,60,000 Balance c/d 1,40,000 3,00,000 3,00,000

 Creditors Account Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Cash A/c 2,00,000 Purchases A/c 2,80,000 Balance c/d 80,000 2,80,000 2,80,000

Question 37:

Following information is obtained from the books of Vinay, who maintained his books of account under Single Entry System:

 1. Receipts for the year ended 31st March, 2019: â‚¹ From Debtors 88,125 Cash Sales 20,625 Paid by Vinay 12,500 1,21,250 2. Payments during the year: New plant bought 3,125 Drawings 7,500 Salaries 5,625 Wages 33,625 Interest paid 375 Rent paid 6,625 Light and power 2,375 Sundry Expenses 10,625 Sundry Creditors 38,125 1,08,000

Vinay banks all receipts and makes payments by means of cheque.
 3. Assets and Liabilities As at 31st March, 2018 (â‚¹) As at 31st March, 2019 (â‚¹) Sundry Creditors 12,625 12,000 Sundry Debtors 18,750 30,625 Bank 3,125 ? Stock 31,250 15,625 Plant 37,500 36,575

From the above information, prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as on that date.

 Trading Account for the year ended March 31, 2019 Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Opening Stock 31,250 Sales (1,00,000 + 20,625) 1,20,625 Purchases 37,500 Closing Stock 15,625 Light & Power 2,375 Wages 33,625 Gross Profit 31,500 1,36,250 1,36,250

 Profit & Loss Account for the year ended March 31, 2019 Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Depreciation on Plant 4,050 Gross Profit 31,500 Interest 375 Rent 6,625 Salary 5,625 Sundry Expenses 10,625 Net Profit 4,200 31,500 31,500

 Balance Sheet as on March 31, 2019 Dr. Cr. Liabilities Amount (â‚¹) Assets Amount (â‚¹) Capital 78,000 Bank 16,375 Less:  Drawings 7,500 Closing Stock 15,625 Add: Additional Capital 12,500 Debtors 30,625 Add: Net Profit 4,200 87,200 Plant 36,575 Creditors 12,000 99,200 99,200

 Balance Sheet as on April 01, 2018 Dr. Cr. Liabilities Amount (â‚¹) Assets Amount (â‚¹) Creditors 12,625 Bank 37,500 Capital (bal. fig.) 78,000 Closing Stock 18,750 Debtors 3,125 Plant 31,250 90,625 90,625

 Bank Account Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Balance b/d 3,125 Creditors A/c 38,125 Capital A/c 12,500 Drawings A/c 7,500 Debtors A/c 88,125 Interest A/c 375 Sales A/c 20,625 Light & Power A/c 2,375 Plant A/c 3,125 Rent A/c 6,625 Salaries A/c 5,625 Sundry Expenses A/c 10,625 Wages A/c 33,625 Balance c/d 16,375 1,24,375 1,24,375

 Debtors Account Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Balance b/d 18,750 Cash A/c 88,125 Sales A/c (bal.fig.) 1,00,000 Balance c/d 30,625 1,18,750 1,18,750

 Creditors Account Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Cash A/c 38,125 Balance b/d 12,625 Balance c/d 12,000 Purchases A/c (bal.fig.) 37,500 50,125 50,125

Question 38:

Surya does not keep a systematic record of his transactions. He is able to give you the following information regarding his assets and liabilities:

 31st March 2018 (â‚¹) 31st March, 2019 (â‚¹) Creditors for goods 21,000 19,000 Creditors for expenses 1,500 1,800 Bills Payable 8,700 11,500 Sundry Debtors 35,000 34,000 Stock (At cost) 28,000 25,000 Furniture and Fittings 10,000 12,000 Cash 5,100

Following additional information is also available for the year ended 31st March, 2019:
 â‚¹ Bills Payable Issued 20,800 Cash Sales 15,000 Payment to Sundry Creditors 31,000 Expenses paid 6,600 Drawings 8,000

Bad Debts during the year were â‚¹ 900. As regards sale, Surya tells you that he always sells goods at Cost plus 25%. Furniture and Fittings are to be depreciated at 10% of the value in the beginning of the year.
Prepare Surya's Trading and Profit and Loss Account for the year ended 31st March, 2019 and his Balance Sheet on that date.

 Trading Accountfor the year ended 31st March, 2019 Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Opening Stock 28,000 Sales: Cash 15,000 Purchases 49,800 Credit 51,000 66,000 Gross Profit c/d 13,200 Closing Stock 25,000 91,000 91,000

 Profit and Loss Account for the year ended March 31, 2019 Dr. Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Bad Debts 900 Gross Profit b/d 13,200 Expenses 6,600 Add: Closing Creditors for Expenses 1,800 8,400 Less: Opening Creditors for Expenses 1,500 6,900 Depreciation on Furniture and Fittings 1,000 Net Profit t/d to Capital 4,400 13,200 13,200

 Balance Sheet as on March 31, 2019 Liabilities Amount (â‚¹) Assets Amount (â‚¹) Creditors for Goods 19,000 Cash Balance 4,600 Creditors for Expenses 1,800 Stock 25,000 Bills Payable 11,500 Debtors 34,000 Capital 46,900 Furniture and Fittings 12,000 Less: Drawings 8,000 38,900 Add: Net Profit 4,400 43,300 75,600 75,600

Working Notes
 Balance Sheet as on March 31, 2018 Liabilities Amount (â‚¹) Assets Amount (â‚¹) Creditors for Goods 21,000 Cash Balance 5,100 Creditors for Expenses 1,500 Stock 28,000 Bills Payable 8,700 Debtors 35,000 Capital ( Balancing Figure) 46,900 Furniture and Fittings 10,000 78,100 78,100

 Cash Account Liabilities Amount (â‚¹) Assets Amount (â‚¹) Balance b/d 5,100 Expenses 6,600 Sales 15,000 Sundry Creditors 31,000 Debtors 51,100 Furniture and Fittings 3,000 Bills Payable 18,000 Drawings 8,000 Balance c/d 4,600 71,200 71,200

 Dr. Creditors for Goods Account Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Bills Payable 20,800 Balance b/d 21,000 Cash 31,000 Purchases-Credit (B/F) 49,800 Balance c/d 19,000 70,800 70,800

 Dr. Debtors Account Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Balance b/d 35,000 Bad Debts 900 Sales-Credit 51,000 Cash (Balancing Figure) 51,100 Balance c/d 34,000 86,000 86,000

 Dr. Bills Payable Account Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Cash (Balancing Figure) 18,000 Balance b/d 8,700 Balance b/d 11,500 Creditors for goods 20,800 29,500 29,500

 Dr. Furniture and Fittings Account Cr. Particulars Amount (â‚¹) Particulars Amount (â‚¹) Balance b/d 10,000 Depreciation 1,000 Cash-Purchases (B/F) 3,000 Balance c/d 12,000 13,000 13,000

Computation of Cost of Goods Sold and Credit Sales

COGS = Opening. Stock + Purchases – closing. Stock = 28,000 + 49,800 – 25,000 = 52,800

Gross Profit = 52,800 × 25/100= 13,200

Total Sales = COGS + Gross Profit = 52,800 + 13,200 = 66,000   Credit Sales = Total Sales – Cash Sales

= 66,000 – 15,000 = 51,000

Note: It has been assumed that a Drawings in cash of Amount â‚¹ 8,000 has been made by Surya during the year.

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