Chapter 14 from Textbook Class 13 Double Entry Book Keeping Ts Grewal (2017) for Class 11 ACCOUNTANCY

Question 1:

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

Question 2:

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

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 Outwards	(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
Trade 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

Question 3:

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 Outwards	(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
Trade 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

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		60,000	Sales	1,60,000
Purchases		80,000	Closing Stock	80,000
Wages	1,000
Add: Outstanding Wages	50	10,500
Gross Profit (Balancing Figure)		89,500

		2,40,000		2,40,000

Profit and Loss Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Rent	4,500		Gross Profit	89,500
Less: Prepaid Rent	(1,000)	3,500	Interest Received	3,000
Commission		2,500
General Expenses		8,000
Salaries	5,000
Add: Outstanding Salaries	4,500	9,500
Depreciation on Machinery		4,000
Net Profit (Balancing Figure)		65,000
		92,500		92,500

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	90,000		Fixed Assets
Add: Net Profit	65,000	1,55,000	Machinery	40,000
Current Liabilities			Less: 10% Deprecation	(4,000)	36,000
Sundry Creditors		45,000	Current Assets
Outstanding Salary		4,500	Closing Stock		80,000
Ousting Wages		500	Sundry Debtors		44,000
			Bills Receivable		29,000
			Prepaid Rent		1,000
			Cash at Bank		10,000
			Cash in Hand		5,000
		2,05,000			2,05,000

Question 4:

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		60,000	Sales	1,60,000
Purchases		80,000	Closing Stock	80,000
Wages	1,000
Add: Outstanding Wages	50	10,500
Gross Profit (Balancing Figure)		89,500

		2,40,000		2,40,000

Profit and Loss Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Rent	4,500		Gross Profit	89,500
Less: Prepaid Rent	(1,000)	3,500	Interest Received	3,000
Commission		2,500
General Expenses		8,000
Salaries	5,000
Add: Outstanding Salaries	4,500	9,500
Depreciation on Machinery		4,000
Net Profit (Balancing Figure)		65,000
		92,500		92,500

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	90,000		Fixed Assets
Add: Net Profit	65,000	1,55,000	Machinery	40,000
Current Liabilities			Less: 10% Deprecation	(4,000)	36,000
Sundry Creditors		45,000	Current Assets
Outstanding Salary		4,500	Closing Stock		80,000
Ousting Wages		500	Sundry Debtors		44,000
			Bills Receivable		29,000
			Prepaid Rent		1,000
			Cash at Bank		10,000
			Cash in Hand		5,000
		2,05,000			2,05,000

Answer:

Trading Account
for the year ended March 31, 2017
Dr.						Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
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	600	12,600
Gross Profit		77,300
		2,33,900			2,33,900

Profit and Loss Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Bad-debts		1,000	Gross Profit	77,300
Electricity Charges		1,200	Commission	500
Salaries	20,000
Add: Outstanding	1,400	21,400
Telephone Charges		2,400
Insurance Premium	1,500
Less: Prepaid	200	1,300
General Expenses		3,000
Postage Expenses		1,800
Depreciation on
Plant and Machinery	7,250
Furniture	400	7,650
Net Profit		38,050
		77,800		77,800

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	1,50,000		Plant and Machinery	1,40,000
Add: Net Profit	38,050	1,88,050	Add: Additions	10,000
Outstanding Wages		600	Less: Depreciation	7,250	1,42,750
Outstanding Salaries		1,400	Furniture	8,000
Creditors		40,000	Less: Depreciation	400	7,600
			Prepaid Insurance		200
			Closing Stock		7,000
			Cash at Bank		40,000
			Cash in Hand		2,500
			Sundry Debtors		30,000
		2,30,050			2,30,050

Working Notes:

Calculation of Depreciation

$Depreciation on Furniture = 8, 000 \times \frac{5}{100} = Rs 400 Depreciation on Plant & Machinery On Rs 1, 40, 000 @ 5 % = Rs 7, 000 On Rs 10, 000 @ 5 % for 6 months = Rs 250 Total Depreciation = Rs 7, 250$

Question 5:

Trading Account
for the year ended March 31, 2017
Dr.						Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
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	600	12,600
Gross Profit		77,300
		2,33,900			2,33,900

Profit and Loss Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Bad-debts		1,000	Gross Profit	77,300
Electricity Charges		1,200	Commission	500
Salaries	20,000
Add: Outstanding	1,400	21,400
Telephone Charges		2,400
Insurance Premium	1,500
Less: Prepaid	200	1,300
General Expenses		3,000
Postage Expenses		1,800
Depreciation on
Plant and Machinery	7,250
Furniture	400	7,650
Net Profit		38,050
		77,800		77,800

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	1,50,000		Plant and Machinery	1,40,000
Add: Net Profit	38,050	1,88,050	Add: Additions	10,000
Outstanding Wages		600	Less: Depreciation	7,250	1,42,750
Outstanding Salaries		1,400	Furniture	8,000
Creditors		40,000	Less: Depreciation	400	7,600
			Prepaid Insurance		200
			Closing Stock		7,000
			Cash at Bank		40,000
			Cash in Hand		2,500
			Sundry Debtors		30,000
		2,30,050			2,30,050

Working Notes:

Calculation of Depreciation

$Depreciation on Furniture = 8, 000 \times \frac{5}{100} = Rs 400 Depreciation on Plant & Machinery On Rs 1, 40, 000 @ 5 % = Rs 7, 000 On Rs 10, 000 @ 5 % for 6 months = Rs 250 Total Depreciation = Rs 7, 250$

Answer:

Financial Statements of Narain Lal
Trading Account for the year ended March 31, 2017
Dr.					Cr.
Particulars	Amount (Rs)	Particulars		Amount (Rs)
Opening Stock	2,20,000	Sales	15,00,000
Purchases	11,00,000	Less: Sales Return	(20,000)	14,80,000
Carriage on Purchases	18,000	Closing Stock		2,00,600
Gross Profit (Balancing Figure)	3,42,600

	16,80,600			16,80,600

Profit and Loss Account for the year ended March 31, 2017
Dr.						Cr.
Particulars			Amount (Rs)	Particulars	Amount (Rs)
Discount			16,000	Gross Profit	3,42,600
Taxes and Insurance	20,000			Rent from Tenants	10,000
Less: Unexpired Insurance	(2,000)		18,000	Discount	20,000
General Expenses			40,000
Salaries	90,000
Add: Outstanding Salary	15,000		1,05,000
Commission			22,000
Bad Debts Written-off		8,000
Add: Provision for Doubtful Debts		9,000	17,000
Depreciation on:
Business Premises	3,000
Furniture and Fittings	2,500		5,500
Net Profit (Balancing Figure)			1,49,100

			3,72,600		3,72,600

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	3,00,000		Fixed Assets
Less: Drawings	(50,000)		Business Premises	2,00,000
Add: Net Profit	1,49,100	3,99,100	Less: Depreciation	(3,000)	1,97,000
Current Liabilities			Furniture and Fittings	26,000
Creditors		1,38,000	Less: Depreciation	(2,500)	23,500
Bank Overdraft		42,000	Current Assets
Outstanding Salary		15,000	Closing Stock		2,00,600
			Debtors	1,80,000
			Less: Provision for Bad Debts	(9,000)	1,71,000
			Unexpired Insurance		2,000
		5,94,100			5,94,100

Question 6:

Financial Statements of Narain Lal
Trading Account for the year ended March 31, 2017
Dr.					Cr.
Particulars	Amount (Rs)	Particulars		Amount (Rs)
Opening Stock	2,20,000	Sales	15,00,000
Purchases	11,00,000	Less: Sales Return	(20,000)	14,80,000
Carriage on Purchases	18,000	Closing Stock		2,00,600
Gross Profit (Balancing Figure)	3,42,600

	16,80,600			16,80,600

Profit and Loss Account for the year ended March 31, 2017
Dr.						Cr.
Particulars			Amount (Rs)	Particulars	Amount (Rs)
Discount			16,000	Gross Profit	3,42,600
Taxes and Insurance	20,000			Rent from Tenants	10,000
Less: Unexpired Insurance	(2,000)		18,000	Discount	20,000
General Expenses			40,000
Salaries	90,000
Add: Outstanding Salary	15,000		1,05,000
Commission			22,000
Bad Debts Written-off		8,000
Add: Provision for Doubtful Debts		9,000	17,000
Depreciation on:
Business Premises	3,000
Furniture and Fittings	2,500		5,500
Net Profit (Balancing Figure)			1,49,100

			3,72,600		3,72,600

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	3,00,000		Fixed Assets
Less: Drawings	(50,000)		Business Premises	2,00,000
Add: Net Profit	1,49,100	3,99,100	Less: Depreciation	(3,000)	1,97,000
Current Liabilities			Furniture and Fittings	26,000
Creditors		1,38,000	Less: Depreciation	(2,500)	23,500
Bank Overdraft		42,000	Current Assets
Outstanding Salary		15,000	Closing Stock		2,00,600
			Debtors	1,80,000
			Less: Provision for Bad Debts	(9,000)	1,71,000
			Unexpired Insurance		2,000
		5,94,100			5,94,100

Answer:

Financial Statements of Mr. Niranjan
Trading Account for the year ended March 31, 2016
Dr.					Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Opening Stock		45,000	Sales	4,35,000
Purchases	2,95,000		Less: Sales Return	(7,000)	4,28,000
Less: Purchases Return	(4,000)	2,91,000	Closing Stock		75,000
Wages	40,000
Add: Outstanding wages	5,000	45,000
Gross Profit (Balancing Figure)		1,22,000

		5,03,000			5,03,000

Profit and Loss Account for the year ended March 31, 2016
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Rent		5,000	Goss Profit	1,22,000
Salaries	24,000
Add: Outstanding Salaries	1,200	25,200
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
Insurance		1,500
Trade expenses		2,000
Depreciation on:
Machinery	2,400
Furniture	300	2,700
Net Profit (Balancing Figure)		74,635
		1,25,450		1,25,450

Balance Sheet as on March 31, 2016
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	1,20,000		Fixed Assets
Less: Drawings	(21,000)		Patents		4,800
Add: Net Profit	74,635	1,73,635	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		1,200	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

Question 7:

Financial Statements of Mr. Niranjan
Trading Account for the year ended March 31, 2016
Dr.					Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Opening Stock		45,000	Sales	4,35,000
Purchases	2,95,000		Less: Sales Return	(7,000)	4,28,000
Less: Purchases Return	(4,000)	2,91,000	Closing Stock		75,000
Wages	40,000
Add: Outstanding wages	5,000	45,000
Gross Profit (Balancing Figure)		1,22,000

		5,03,000			5,03,000

Profit and Loss Account for the year ended March 31, 2016
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Rent		5,000	Goss Profit	1,22,000
Salaries	24,000
Add: Outstanding Salaries	1,200	25,200
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
Insurance		1,500
Trade expenses		2,000
Depreciation on:
Machinery	2,400
Furniture	300	2,700
Net Profit (Balancing Figure)		74,635
		1,25,450		1,25,450

Balance Sheet as on March 31, 2016
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	1,20,000		Fixed Assets
Less: Drawings	(21,000)		Patents		4,800
Add: Net Profit	74,635	1,73,635	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		1,200	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

Answer:

Financial Statements 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

Question 8:

Financial Statements 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

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		1,20,450	Sales	5,63,010
Purchases	3,98,160		Less: Returns	3,750	5,59,260
Less: Returns	(2,910)		Closing Stock		1,27,410
Less: Computer	(6,000)	3,89,250
Wages		93,770
Carriage Inwards		10,360
Gross Profit (Balancing Figure)		72,840
		6,86,670			6,86,670

Profit and Loss Account for the year ended March 31, 2017
Dr.				Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Office Salaries		12,840	Gross Profit	72,840
General Expenses		15,360	Discount Received	5,970
Bank Charges		210
Discount Allowed		7,920
Depreciation on:
Plant and Machinery	4,328
Furniture	512	4,840
Rent and Rates		7,260
Bad Debts	2,760
Add: Provision for Doubtful Debts	15,000
Less: Existing Provision	(9,300)	8,460
Insurance	1,410
Less: Prepaid Insurance (720 × 6/12)	(360)	1,050
Outstanding Interest on Loan		1,800
Net Profit (Balancing Figure)		19,070
		78,810		78,810

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Sundry Creditors		37,350	Cash in Hand and Bank		7,740
6% Loan	30,000		Bills Receivable		3,720
Add: Outstanding interest	1,800	31,800	Sundry Debtors	1,31,550
(3,000 × 6% for 12 months)			Less: Provision for Doubtful Debts	(15,000)	1,16,550
Capital	3,00,000		Plant and Machinery	43,280
Less: Drawings	(12,600)		Less: 10% Depreciation	(4,328)	38,952
Add: Net Profit	19,070	3,06,470	Furniture	10,240
			Less: 5% Depreciation	(512)	9,728
			Land and Building		65,160
			Computer		6,000
			Prepaid Insurance		360
			Closing Stock		1,27,410
		3,75,620			3,75,620

Question 9:

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		1,20,450	Sales	5,63,010
Purchases	3,98,160		Less: Returns	3,750	5,59,260
Less: Returns	(2,910)		Closing Stock		1,27,410
Less: Computer	(6,000)	3,89,250
Wages		93,770
Carriage Inwards		10,360
Gross Profit (Balancing Figure)		72,840
		6,86,670			6,86,670

Profit and Loss Account for the year ended March 31, 2017
Dr.				Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Office Salaries		12,840	Gross Profit	72,840
General Expenses		15,360	Discount Received	5,970
Bank Charges		210
Discount Allowed		7,920
Depreciation on:
Plant and Machinery	4,328
Furniture	512	4,840
Rent and Rates		7,260
Bad Debts	2,760
Add: Provision for Doubtful Debts	15,000
Less: Existing Provision	(9,300)	8,460
Insurance	1,410
Less: Prepaid Insurance (720 × 6/12)	(360)	1,050
Outstanding Interest on Loan		1,800
Net Profit (Balancing Figure)		19,070
		78,810		78,810

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Sundry Creditors		37,350	Cash in Hand and Bank		7,740
6% Loan	30,000		Bills Receivable		3,720
Add: Outstanding interest	1,800	31,800	Sundry Debtors	1,31,550
(3,000 × 6% for 12 months)			Less: Provision for Doubtful Debts	(15,000)	1,16,550
Capital	3,00,000		Plant and Machinery	43,280
Less: Drawings	(12,600)		Less: 10% Depreciation	(4,328)	38,952
Add: Net Profit	19,070	3,06,470	Furniture	10,240
			Less: 5% Depreciation	(512)	9,728
			Land and Building		65,160
			Computer		6,000
			Prepaid Insurance		360
			Closing Stock		1,27,410
		3,75,620			3,75,620

Answer:

Financial Statements of Ram Trading Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
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
Add: Outstanding Wages	5,700	91,300
Carriage Inwards		23,100
Light and Water		79,500
Gross Profit (Balance Figure)		5,41,200
		16,29,400			16,29,400

Profit and Loss Account for the year ended March 31, 2017
Dr.				Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Depreciation on:			Gross Profit	5,41,200
Leasehold Premises	12,500		Discount	1,800
Plant and Machinery	24,000	36,500
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		62,800
Office Expenses		95,200
Traveller’s Salaries		98,700
Carriage Outwards		32,400
Net Profit (Balancing Figure)		1,32,200
		5,43,000		5,43,000

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets			Amount (Rs)
Capital	9,00,000		Fixed Assets
Less: Drawings	(70,000)		Lease hold Premises	2,50,000
Add: Net Profit	1,32,200	9,62,200	Less: 5% Depreciation	(12,500)		2,37,500
Current Liabilities			Plant and Machinery	2,40,000
Sundry Creditors		1,69,800	Less: 10% Depreciation	(24,000)		2,16,000
Wages Outstanding		5,700	Office Furniture			35,000
			Current Assets
			Closing Stock			1,49,200
			Sundry Debtors		3,89,700
			Less: Bad Debts		5,000
			Less: Provision for Doubtful Debts		50,000	3,34,700
			Bills Receivable			12,400
			Cash at Bank			1,24,000
			Cash in Hand			22,100
			Prepaid Insurance			6,800
		11,37,700				11,37,700

Question 10:

Financial Statements of Ram Trading Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
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
Add: Outstanding Wages	5,700	91,300
Carriage Inwards		23,100
Light and Water		79,500
Gross Profit (Balance Figure)		5,41,200
		16,29,400			16,29,400

Profit and Loss Account for the year ended March 31, 2017
Dr.				Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Depreciation on:			Gross Profit	5,41,200
Leasehold Premises	12,500		Discount	1,800
Plant and Machinery	24,000	36,500
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		62,800
Office Expenses		95,200
Traveller’s Salaries		98,700
Carriage Outwards		32,400
Net Profit (Balancing Figure)		1,32,200
		5,43,000		5,43,000

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets			Amount (Rs)
Capital	9,00,000		Fixed Assets
Less: Drawings	(70,000)		Lease hold Premises	2,50,000
Add: Net Profit	1,32,200	9,62,200	Less: 5% Depreciation	(12,500)		2,37,500
Current Liabilities			Plant and Machinery	2,40,000
Sundry Creditors		1,69,800	Less: 10% Depreciation	(24,000)		2,16,000
Wages Outstanding		5,700	Office Furniture			35,000
			Current Assets
			Closing Stock			1,49,200
			Sundry Debtors		3,89,700
			Less: Bad Debts		5,000
			Less: Provision for Doubtful Debts		50,000	3,34,700
			Bills Receivable			12,400
			Cash at Bank			1,24,000
			Cash in Hand			22,100
			Prepaid Insurance			6,800
		11,37,700				11,37,700

Answer:

Financial Statements 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
Trade Expenses		10,750
Add: Outstanding Trade 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
Trade 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	(15,800)	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 4,275, therefore, manager commission is not payable.

Question 11:

Financial Statements 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
Trade Expenses		10,750
Add: Outstanding Trade 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
Trade 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	(15,800)	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 4,275, therefore, manager commission is not payable.

Answer:

Financial Statements Trading Account for the year ended March 31, 2016
Dr.			Cr.
Particulars	Amount Rs	Particulars	Amount Rs
Opening Stock	8,000	Sales	2,20,000
Purchases	1,26,000	Closing Stock	20,600
Productive Wages	56,500
Stores Consumed	6,050
Carriage	3,050
Gross Profit (Balancing Figure)	41,000
	2,40,600		2,40,600

Profit and Loss Account for the year ended March 31, 2016
Dr.				Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Salaries		16,000	Gross Profit	41,000
Rent and Rates	5,200
Less: Rent Deposit	(400)	4,800
Insurance	1,320
Less: Prepaid Insurance	(120)	1,200
Depreciation on Machinery		5,200
Bad Debts	1,020
Add: Provision for Doubtful Debts	2,200	3,220
Provision for Discount on Debtors		1,045
General Expenses		2,600
Net Profit (Balancing Figure)		6,935
		41,000		41,000

Balance Sheet as on March 31, 2016
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	1,45,600		Building		67,000
Add: Net Profit	6,935	1,52,535	Machinery	52,000
Secured Loan		15,000	Less: 10% Depreciation	(5,200)	46,800
Sundry Creditors		20,000	Furniture		3,350
			Closing Stock		20,600
			Sundry Debtors	44,000
			Less: Provision for Doubtful Debts	(2,200)
				41,800
			Less: Discount on Debtors	(1,045)	40,755
			Rent Deposit		400
			Prepaid Insurance		120
			Cash in Hand		1,930
			Cash at Bank		6,580
		1,87,535			1,87,535

Question 12:

Financial Statements Trading Account for the year ended March 31, 2016
Dr.			Cr.
Particulars	Amount Rs	Particulars	Amount Rs
Opening Stock	8,000	Sales	2,20,000
Purchases	1,26,000	Closing Stock	20,600
Productive Wages	56,500
Stores Consumed	6,050
Carriage	3,050
Gross Profit (Balancing Figure)	41,000
	2,40,600		2,40,600

Profit and Loss Account for the year ended March 31, 2016
Dr.				Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Salaries		16,000	Gross Profit	41,000
Rent and Rates	5,200
Less: Rent Deposit	(400)	4,800
Insurance	1,320
Less: Prepaid Insurance	(120)	1,200
Depreciation on Machinery		5,200
Bad Debts	1,020
Add: Provision for Doubtful Debts	2,200	3,220
Provision for Discount on Debtors		1,045
General Expenses		2,600
Net Profit (Balancing Figure)		6,935
		41,000		41,000

Balance Sheet as on March 31, 2016
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	1,45,600		Building		67,000
Add: Net Profit	6,935	1,52,535	Machinery	52,000
Secured Loan		15,000	Less: 10% Depreciation	(5,200)	46,800
Sundry Creditors		20,000	Furniture		3,350
			Closing Stock		20,600
			Sundry Debtors	44,000
			Less: Provision for Doubtful Debts	(2,200)
				41,800
			Less: Discount on Debtors	(1,045)	40,755
			Rent Deposit		400
			Prepaid Insurance		120
			Cash in Hand		1,930
			Cash at Bank		6,580
		1,87,535			1,87,535

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

Question 13:

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

Answer:

Financial Statement of Shri Santosh Kumar Trading Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Opening Stock		2,00,000	Sales	46,80,000
Purchases	21,20,000		Less: Return Inwards	(80,000)	46,00,000
Less: Return Outwards	(40,000)	20,80,000	Closing Stock		3,08,000
Wages and Other Expenses		10,00,000
Carriage Inwards		1,20,000
Gross Profit (Balancing Figure)		15,08,000
		49,08,000			49,08,000

Profit and Loss Account for the year ended March 31, 2017
Dr.				Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Depreciation on:			Gross Profit	15,08,000
Plant and Machinery	50,000		Discount	60,000
Furniture and Fixture	7,200	57,200
Consumption of Loss Tools (20,000 – 16,000)		40,000
Salaries	4,16,000
Add: Salary paid to B. Barua	20,000	4,36,000
General Expenses and Insurance	7,20,000
Less: Prepaid Insurance	(4,000)	7,16,000
Rent and Taxes		1,44,000
Postage and Telegrams		40,000
Provision for Doubtful Debts	28,000
Less: Existing Provision	(20,000)	8,000
Net Profit (Balancing Figure)		1,26,800
		15,68,000		15,68,000

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets			Amount (Rs)
Capital	17,60,000		Fixed Assets
Less: Drawings	(20,000)		Plant and Machinery	10,00,000
Add: Net Profit	1,26,800	18,66,800	Less: 5% Depreciation	(50,000)		9,50,000
Current Liabilities			Furniture and Fixtures	1,20,000
Sundry Creditors		2,40,000	Less: 6% Deprecation	(7,200)		1,12,800
VAT Collected		2,00,000	Goodwill			1,00,000
			Current Assets
			Closing Stock			3,08,000
			Loos Tools			1,60,000
			Sundry Debtors		5,60,000
			Less: Provision for Doubtful Debts		(28,000)	5,32,000
			B. Barua		20,000
			Less: Salary		(20,000)	NIL
			Cash and Bank Balances			1,40,000
			Prepaid Insurance			4,000
		23,06,800				23,06,800

Question 14:

Financial Statement of Shri Santosh Kumar Trading Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Opening Stock		2,00,000	Sales	46,80,000
Purchases	21,20,000		Less: Return Inwards	(80,000)	46,00,000
Less: Return Outwards	(40,000)	20,80,000	Closing Stock		3,08,000
Wages and Other Expenses		10,00,000
Carriage Inwards		1,20,000
Gross Profit (Balancing Figure)		15,08,000
		49,08,000			49,08,000

Profit and Loss Account for the year ended March 31, 2017
Dr.				Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Depreciation on:			Gross Profit	15,08,000
Plant and Machinery	50,000		Discount	60,000
Furniture and Fixture	7,200	57,200
Consumption of Loss Tools (20,000 – 16,000)		40,000
Salaries	4,16,000
Add: Salary paid to B. Barua	20,000	4,36,000
General Expenses and Insurance	7,20,000
Less: Prepaid Insurance	(4,000)	7,16,000
Rent and Taxes		1,44,000
Postage and Telegrams		40,000
Provision for Doubtful Debts	28,000
Less: Existing Provision	(20,000)	8,000
Net Profit (Balancing Figure)		1,26,800
		15,68,000		15,68,000

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets			Amount (Rs)
Capital	17,60,000		Fixed Assets
Less: Drawings	(20,000)		Plant and Machinery	10,00,000
Add: Net Profit	1,26,800	18,66,800	Less: 5% Depreciation	(50,000)		9,50,000
Current Liabilities			Furniture and Fixtures	1,20,000
Sundry Creditors		2,40,000	Less: 6% Deprecation	(7,200)		1,12,800
VAT Collected		2,00,000	Goodwill			1,00,000
			Current Assets
			Closing Stock			3,08,000
			Loos Tools			1,60,000
			Sundry Debtors		5,60,000
			Less: Provision for Doubtful Debts		(28,000)	5,32,000
			B. Barua		20,000
			Less: Salary		(20,000)	NIL
			Cash and Bank Balances			1,40,000
			Prepaid Insurance			4,000
		23,06,800				23,06,800

Answer:

Financial Statements Trading Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Opening Stock		30,000	Sales	1,50,000
Purchases	1,20,000		Less: Returns	(10,000)	1,40,000
Less: Returns	(20,000)	1,00,000	Closing Stock		45,000
Gross Profit (Balancing Figure)		55,000
		1,85,000			1,85,000

Profit and Loss Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Interest outstanding on Overdraft		3,000	Gross Profit		55,000
Establishment Expenses		22,000	Commission	5,000
Provision for Doubtful Debts	10,000		Less: Advance Commission	(1,000)	4,000
Add: Bad Debts	5,000		Accrued Interest on Deposits		2,100
Less: Existing Provision	(7,000)	8,000
Depreciation on Furniture		600
Taxes and Insurance	5,000
Less: Prepaid Insurance	(500)
Add: Outstanding Taxes	2,000	6,500
Salaries Outstanding		1,000
Net Profit (Balancing Figure)		20,000
		61,100			61,100

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	1,00,000		Furniture	6,000
Less: Drawings	(14,000)		Less: 10% Depreciation	(600)	5,400
Add: Net Profit	20,000	1,00,600	Debtors	50,000
Bank Overdraft	20,000		Less: Provision for Doubtful Debts	(10,000)	40,000
Add: Interest Outstanding	3,000	23,000	Closing Stock		45,000
Outstanding Salaries		1,000	Bills Receivable		30,000
Outstanding Taxes		2,000	Deposits	40,000
Creditors		20,000	Add: Accrued Interest	2,100	42,100
Bills Payable		25,000	Cash		15,000
Advance Commission		1,000	Prepaid Insurance		500
		1,78,000			1,78,000

Note: Loss of goods due to fire has not been recorded above as fire occurred on 1^st April, 2017 which is subsequent to period for which above final accounts are prepared.

Question 15:

Financial Statements Trading Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Opening Stock		30,000	Sales	1,50,000
Purchases	1,20,000		Less: Returns	(10,000)	1,40,000
Less: Returns	(20,000)	1,00,000	Closing Stock		45,000
Gross Profit (Balancing Figure)		55,000
		1,85,000			1,85,000

Profit and Loss Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Interest outstanding on Overdraft		3,000	Gross Profit		55,000
Establishment Expenses		22,000	Commission	5,000
Provision for Doubtful Debts	10,000		Less: Advance Commission	(1,000)	4,000
Add: Bad Debts	5,000		Accrued Interest on Deposits		2,100
Less: Existing Provision	(7,000)	8,000
Depreciation on Furniture		600
Taxes and Insurance	5,000
Less: Prepaid Insurance	(500)
Add: Outstanding Taxes	2,000	6,500
Salaries Outstanding		1,000
Net Profit (Balancing Figure)		20,000
		61,100			61,100

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	1,00,000		Furniture	6,000
Less: Drawings	(14,000)		Less: 10% Depreciation	(600)	5,400
Add: Net Profit	20,000	1,00,600	Debtors	50,000
Bank Overdraft	20,000		Less: Provision for Doubtful Debts	(10,000)	40,000
Add: Interest Outstanding	3,000	23,000	Closing Stock		45,000
Outstanding Salaries		1,000	Bills Receivable		30,000
Outstanding Taxes		2,000	Deposits	40,000
Creditors		20,000	Add: Accrued Interest	2,100	42,100
Bills Payable		25,000	Cash		15,000
Advance Commission		1,000	Prepaid Insurance		500
		1,78,000			1,78,000

Note: Loss of goods due to fire has not been recorded above as fire occurred on 1^st April, 2017 which is subsequent to period for which above final accounts are prepared.

Answer:

Financial Statements of M/s. Taj & Co. Trading Account for the year ended March 31, 2017
Dr.				Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Opening Stock		26,725	Sales	2,52,400
Purchases	1,62,505		Closing Stock	12,550
Less: Goods destroyed by fire	(1,500)	1,61,005
Wages		23,137
Power and Fuel		1,350
Gross Profit (Balancing Figure)		52,733
		2,64,950		2,64,950

Profit and Loss Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Goods lost by fire	1,500		Gross Profit		52,733
Less: Insurance Co.	(1,000)	500	Provision for Doubtful Debts	5,200
Salaries		5,575	Less: Bad Debts	(525)
Depreciation on Furniture		725	Less: Further Bad Debts	(500)
Postage		4,226	Less: New Provision Doubtful Debts	(2,485)	1,690
Trade Expenses		5,831	Accrued Interest on Loan to Suraj		100
Net Profit (Balancing Figure)		37,666
		54,523			54,523

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	10,000		Furniture	7,250
Less: Drawings	(4,452)		Less: 10% Depreciation	(725)	6,525
Add: Net Profit	37,666	43,214	Sundry Debtors	50,200
Sundry Creditors		30,526	Less: Bad Debts	(500)
Bills Payable		3,950		49,700
Outstanding Wages		2,000	Less: Provision for Doubtful Debts	(2,485)	47,215
Outstanding Trade Expenses		700	Closing Stock		12,550
			Loan to Suraj	3,000
			Add: Accrued Interest	100	3,100
			Cash in Hand and Bank		10,000
			Insurance Co. (Goods destroyed by fire)		1,000
		80,390			80,390

Note : Accrued Interest on Loan to Suraj = 3, 000 \times \frac{10}{100} \times \frac{4}{12} = Rs 100

Question 16:

Financial Statements of M/s. Taj & Co. Trading Account for the year ended March 31, 2017
Dr.				Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Opening Stock		26,725	Sales	2,52,400
Purchases	1,62,505		Closing Stock	12,550
Less: Goods destroyed by fire	(1,500)	1,61,005
Wages		23,137
Power and Fuel		1,350
Gross Profit (Balancing Figure)		52,733
		2,64,950		2,64,950

Profit and Loss Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Goods lost by fire	1,500		Gross Profit		52,733
Less: Insurance Co.	(1,000)	500	Provision for Doubtful Debts	5,200
Salaries		5,575	Less: Bad Debts	(525)
Depreciation on Furniture		725	Less: Further Bad Debts	(500)
Postage		4,226	Less: New Provision Doubtful Debts	(2,485)	1,690
Trade Expenses		5,831	Accrued Interest on Loan to Suraj		100
Net Profit (Balancing Figure)		37,666
		54,523			54,523

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	10,000		Furniture	7,250
Less: Drawings	(4,452)		Less: 10% Depreciation	(725)	6,525
Add: Net Profit	37,666	43,214	Sundry Debtors	50,200
Sundry Creditors		30,526	Less: Bad Debts	(500)
Bills Payable		3,950		49,700
Outstanding Wages		2,000	Less: Provision for Doubtful Debts	(2,485)	47,215
Outstanding Trade Expenses		700	Closing Stock		12,550
			Loan to Suraj	3,000
			Add: Accrued Interest	100	3,100
			Cash in Hand and Bank		10,000
			Insurance Co. (Goods destroyed by fire)		1,000
		80,390			80,390

Note : Accrued Interest on Loan to Suraj = 3, 000 \times \frac{10}{100} \times \frac{4}{12} = Rs 100

Answer:

Financial Statement of Mr. Gaurav
Trading Account for the year ended March 31, 2017
Dr.						Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Opening Stock		62,500	Sales	8,75,000
Purchases	5,00,000		Less: Return Inwards		8,75,000
Less: Drawings	10,000	4,90,000	Closing Stock		50,000
Carriage		10,000
Wages and Salaries	31,250
Add: Outstanding	12,500	43,750
Gross Profit (Balancing Figure)		3,18,750
		9,25,000			9,25,000

Profit and Loss Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Depreciation:			Gross Profit	3,18,750
Machinery (WN1)	11,950		Commission	16,750
Furniture	3,750	15,700	Bad Debts Recovered	8,000
Taxes and Insurance	21,250
Less: Prepaid	5,000	16,250
Interest on Bank Loan	3,000
Add: Outstanding Interest	2,000	5,000
Net Profit (Balancing Figure)		3,06,550
		3,43,500		3,43,500

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	4,64,000		Fixed Assets
Add: Net Profit	3,06,550		Machinery	1,38,750
Less: Drawings (62,500 + 10,000)	72,500	6,98,050	Less: Depreciation @10%	11,950	1,26,800
Current Liabilities			Furniture	25,000
Creditors		43,750	Less: Depreciation @15%	3,750	21,250
Bills Payable		33,750	Land & Building		5,00,000
10% Bank Loan		50,000	Current Assets
Outstanding Interest on Loan		2,000	Closing Stock		50,000
Outstanding Wages & Salaries		12,500	Debtors		75,000
			Bills Receivable		37,500
			Bank		24,500
			Prepaid Insurance		5,000
		8,40,050			8,40,050

Working Note:

Calculation of Depreciation on Machinery

Question 17:

Financial Statement of Mr. Gaurav
Trading Account for the year ended March 31, 2017
Dr.						Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Opening Stock		62,500	Sales	8,75,000
Purchases	5,00,000		Less: Return Inwards		8,75,000
Less: Drawings	10,000	4,90,000	Closing Stock		50,000
Carriage		10,000
Wages and Salaries	31,250
Add: Outstanding	12,500	43,750
Gross Profit (Balancing Figure)		3,18,750
		9,25,000			9,25,000

Profit and Loss Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Depreciation:			Gross Profit	3,18,750
Machinery (WN1)	11,950		Commission	16,750
Furniture	3,750	15,700	Bad Debts Recovered	8,000
Taxes and Insurance	21,250
Less: Prepaid	5,000	16,250
Interest on Bank Loan	3,000
Add: Outstanding Interest	2,000	5,000
Net Profit (Balancing Figure)		3,06,550
		3,43,500		3,43,500

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	4,64,000		Fixed Assets
Add: Net Profit	3,06,550		Machinery	1,38,750
Less: Drawings (62,500 + 10,000)	72,500	6,98,050	Less: Depreciation @10%	11,950	1,26,800
Current Liabilities			Furniture	25,000
Creditors		43,750	Less: Depreciation @15%	3,750	21,250
Bills Payable		33,750	Land & Building		5,00,000
10% Bank Loan		50,000	Current Assets
Outstanding Interest on Loan		2,000	Closing Stock		50,000
Outstanding Wages & Salaries		12,500	Debtors		75,000
			Bills Receivable		37,500
			Bank		24,500
			Prepaid Insurance		5,000
		8,40,050			8,40,050

Working Note:

Calculation of Depreciation on Machinery

Answer:

Financial Statements of Shri Bansi Lal Trading Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Opening Stock		57,600	Sales	9,87,800
Purchases	4,06,750		Less: Return Inwards	(6,800)	9,81,000
Less: Return Outwards	(5,000)	4,01,750	Closing Stock		68,000
Carriage on Purchases		20,400
Fuel and Power		47,300
Wages	1,04,800
Less: Building	(20,000)	84,800
Gross Profit (Balancing Figure)		4,37,150
		10,49,000			10,49,000

Profit and Loss Account for the year ended March 31, 2017
Dr.					Cr.
Particulars			Amount (Rs)	Particulars	Amount (Rs)
Carriage on Sales			32,000	Gross Profit	4,37,150
Depreciation on Machinery			20,000
Amortisation of Patents			15,000
Insurance		6,000
Less: Prepaid Insurance (1,700 × 6/12)		(850)	5,150
General Expenses			30,000
Salaries	1,50,000
Add: Unpaid Salaries	15,000		1,65,000
Provision for Doubtful Debts			7,250
Net Profit (Balancing Figure)			1,62,750
			4,37,150		4,37,150

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	7,10,000		Patents	75,000
Less: Drawings	(52,450)		Less: 20% Amortisation	(15,000)	60,000
Add: Net Profit	1,62,750	8,20,300	Machinery	2,00,000
Sundry Creditors		63,000	Less: 10% Depreciation	(20,000)	1,80,000
Salaries Outstanding		15,000	Freehold Land		1,00,000
			Sundry Debtors	1,45,000
			Less: Provision for Doubtful Debts	(7,250)	1,37,750
			Prepaid Insurance		850
			Building	3,00,000
			Add: Wages	20,000	3,20,000
			Closing Stock		68,000
			Cash in Hand		5,400
			Cash at Bank		26,300
		8,98,300			8,98,300

Note: Rs 20,000 is reduced from Wages and added in Building since such amount is a Capital Expenditure.

Question 18:

Financial Statements of Shri Bansi Lal Trading Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Opening Stock		57,600	Sales	9,87,800
Purchases	4,06,750		Less: Return Inwards	(6,800)	9,81,000
Less: Return Outwards	(5,000)	4,01,750	Closing Stock		68,000
Carriage on Purchases		20,400
Fuel and Power		47,300
Wages	1,04,800
Less: Building	(20,000)	84,800
Gross Profit (Balancing Figure)		4,37,150
		10,49,000			10,49,000

Profit and Loss Account for the year ended March 31, 2017
Dr.					Cr.
Particulars			Amount (Rs)	Particulars	Amount (Rs)
Carriage on Sales			32,000	Gross Profit	4,37,150
Depreciation on Machinery			20,000
Amortisation of Patents			15,000
Insurance		6,000
Less: Prepaid Insurance (1,700 × 6/12)		(850)	5,150
General Expenses			30,000
Salaries	1,50,000
Add: Unpaid Salaries	15,000		1,65,000
Provision for Doubtful Debts			7,250
Net Profit (Balancing Figure)			1,62,750
			4,37,150		4,37,150

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	7,10,000		Patents	75,000
Less: Drawings	(52,450)		Less: 20% Amortisation	(15,000)	60,000
Add: Net Profit	1,62,750	8,20,300	Machinery	2,00,000
Sundry Creditors		63,000	Less: 10% Depreciation	(20,000)	1,80,000
Salaries Outstanding		15,000	Freehold Land		1,00,000
			Sundry Debtors	1,45,000
			Less: Provision for Doubtful Debts	(7,250)	1,37,750
			Prepaid Insurance		850
			Building	3,00,000
			Add: Wages	20,000	3,20,000
			Closing Stock		68,000
			Cash in Hand		5,400
			Cash at Bank		26,300
		8,98,300			8,98,300

Note: Rs 20,000 is reduced from Wages and added in Building since such amount is a Capital Expenditure.

Answer:

Financial Statements of Mr. Bharat Trading Account for the year ended March 31, 2017
Dr.						Cr.
Particulars			Amount (Rs)	Particulars		Amount (Rs)
Opening Stock			48,000	Sales	4,80,000
Purchases	2,13,500			Less: Return Inwards	(9,300)	4,70,700
Less: Return Outwards	(5,500)			Closing Stock		52,000
Less: Machinery	(20,000)		1,88,000
Wages			1,50,000
Factory Lighting and Heating		800
Add: Outstanding Factory Lighting and Heating		300	1,100
Gross Profit (Balancing Figure)			1,35,600
			5,22,700			5,22,700

Profit and Loss Account for the year ended March 31, 2017
Dr.				Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Depreciation on Furniture		130	Gross Profit	1,35,600
Bad Debts	2,500		Discount	3,700
Add: Further Bad Debts	700
Add: Provision of Doubtful Debts	3,000
Less: Old Provision	(2,500)	3,700
Provision for Discount on Debtors		840
Salaries		14,000
Insurance		6,300
General Expenses		1,000
Discount		6,500
Rent		6,000
Net Profit (Balancing Figure)		1,00,830
		1,39,300		1,39,300

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	40,000		Plant and Machinery	50,000
Add: Net Profit	1,00,830		Add: Purchases	20,000	70,000
Less: Drawings	(7,000)	1,33,830	Office Furniture and Fitting	2,600
Bills Payable		5,600	Less: 5% Depreciation	(130)	2,470
Sundry Creditors		52,000	Closing Stock		52,000
Outstanding Factory Lighting and Heating		300	Accrued Commission		12,000
			Sundry Debtors	45,700
			Less: Further Bad Debts	(700)
				45,000
			Less: Provision for Doubtful Debts	(3,000)
				42,000
			Less: Provision for Discount on Debtor	(840)	41,160
			Cash at Bank		6,500
			Cash in Hand		400
			Bills Receivable		7,200
		1,91,730			1,91,730

Question 19:

Financial Statements of Mr. Bharat Trading Account for the year ended March 31, 2017
Dr.						Cr.
Particulars			Amount (Rs)	Particulars		Amount (Rs)
Opening Stock			48,000	Sales	4,80,000
Purchases	2,13,500			Less: Return Inwards	(9,300)	4,70,700
Less: Return Outwards	(5,500)			Closing Stock		52,000
Less: Machinery	(20,000)		1,88,000
Wages			1,50,000
Factory Lighting and Heating		800
Add: Outstanding Factory Lighting and Heating		300	1,100
Gross Profit (Balancing Figure)			1,35,600
			5,22,700			5,22,700

Profit and Loss Account for the year ended March 31, 2017
Dr.				Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Depreciation on Furniture		130	Gross Profit	1,35,600
Bad Debts	2,500		Discount	3,700
Add: Further Bad Debts	700
Add: Provision of Doubtful Debts	3,000
Less: Old Provision	(2,500)	3,700
Provision for Discount on Debtors		840
Salaries		14,000
Insurance		6,300
General Expenses		1,000
Discount		6,500
Rent		6,000
Net Profit (Balancing Figure)		1,00,830
		1,39,300		1,39,300

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	40,000		Plant and Machinery	50,000
Add: Net Profit	1,00,830		Add: Purchases	20,000	70,000
Less: Drawings	(7,000)	1,33,830	Office Furniture and Fitting	2,600
Bills Payable		5,600	Less: 5% Depreciation	(130)	2,470
Sundry Creditors		52,000	Closing Stock		52,000
Outstanding Factory Lighting and Heating		300	Accrued Commission		12,000
			Sundry Debtors	45,700
			Less: Further Bad Debts	(700)
				45,000
			Less: Provision for Doubtful Debts	(3,000)
				42,000
			Less: Provision for Discount on Debtor	(840)	41,160
			Cash at Bank		6,500
			Cash in Hand		400
			Bills Receivable		7,200
		1,91,730			1,91,730

Answer:

Financial Statements of Ashok Trading Account for the year ended March 31, 2016
Dr.				Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Opening Stock		30,000	Sales	5,00,000
Purchases		2,25,000	Closing Stock	55,000
Wages	8,000
Less: Machinery	(1,500)	6,500
Gas and Fuel		50,000
Freight		3,000
Gross Profit (Balancing Figure)		2,40,500
		5,55,000		5,55,000

Profit and Loss Account for the year ended March 31, 2016
Dr.					Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Depreciation on:			Gross Profit		2,40,500
Plant and Machinery *(WN1)*	24,000		Interest on Loan to Anwar	1,000
Freehold property	11,250	35,250	Add: Accrued Interest *(WN2)*	2,000	3,000
Consumption of Loose Tools		3,000	Provision for Doubtful Debts	20,000
(15,000 – 12,000)			Less: Bad Debts	(15,000)
Salaries		35,000	Less: Further Bad Debts	(500)
Office Expenses		5,000	Less: Provision for Debts	(4,450)	50
Discount		5,000
Postage and Telegrams		2,000
Insurance		5,000
Rent		7,000
Manager’s Commission *(WN3)*		13,300
Net Profit (Balancing Figure)		1,33,000
		2,43,550			2,43,550

Balance Sheet as on March 31, 2016
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	2,00,000		Plant and Machinery	1,20,000
Less: Drawings	(10,000)		Add: Creditors for Machinery	22,000
Add: Net Profit	1,33,000	3,23,000	Add: Wages	1,500
Creditors for Machinery		22,000		1,43,500
Sundry Creditors		34,000	Less: 20% Depreciation	(24,000)	1,19,500
Bills Payable		10,000	Freehold Property	75,000
Manager’s Commission Payable		13,300	Less: 15% Depreciation	(11,250)	63,750
			Loose Tools	15,000
			Less: Consumption of Loose Tools	(3,000)	12,000
			Office Furniture		25,000
			Loan to Anwar	30,000
			Add: Accrued Interest	2,000	32,000
			Sundry Debtors	45,000
			Less: Further Bad Debts	(500)
				44,500
			Less: Provision for Doubtful Debts	(4,450)	40,050
			Cash in Hand		2,000
			Cash at Bank		3,000
			Bills Receivable		50,000
			Closing Stock		55,000
		4,02,300			4,02,300

Working Note:

1. As depreciation not to be charged on machinery purchased during the year. Hence amount of depreciation on machinery is:

2. Calculation of Accrued Interest

Interest on Loan 30,000 ×10%	3,000
Less: Interest Received	(1,000)
Accrued Interest	2,000

3. Calculation of Manager's Commission

Question 20:

Financial Statements of Ashok Trading Account for the year ended March 31, 2016
Dr.				Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Opening Stock		30,000	Sales	5,00,000
Purchases		2,25,000	Closing Stock	55,000
Wages	8,000
Less: Machinery	(1,500)	6,500
Gas and Fuel		50,000
Freight		3,000
Gross Profit (Balancing Figure)		2,40,500
		5,55,000		5,55,000

Profit and Loss Account for the year ended March 31, 2016
Dr.					Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Depreciation on:			Gross Profit		2,40,500
Plant and Machinery *(WN1)*	24,000		Interest on Loan to Anwar	1,000
Freehold property	11,250	35,250	Add: Accrued Interest *(WN2)*	2,000	3,000
Consumption of Loose Tools		3,000	Provision for Doubtful Debts	20,000
(15,000 – 12,000)			Less: Bad Debts	(15,000)
Salaries		35,000	Less: Further Bad Debts	(500)
Office Expenses		5,000	Less: Provision for Debts	(4,450)	50
Discount		5,000
Postage and Telegrams		2,000
Insurance		5,000
Rent		7,000
Manager’s Commission *(WN3)*		13,300
Net Profit (Balancing Figure)		1,33,000
		2,43,550			2,43,550

Balance Sheet as on March 31, 2016
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	2,00,000		Plant and Machinery	1,20,000
Less: Drawings	(10,000)		Add: Creditors for Machinery	22,000
Add: Net Profit	1,33,000	3,23,000	Add: Wages	1,500
Creditors for Machinery		22,000		1,43,500
Sundry Creditors		34,000	Less: 20% Depreciation	(24,000)	1,19,500
Bills Payable		10,000	Freehold Property	75,000
Manager’s Commission Payable		13,300	Less: 15% Depreciation	(11,250)	63,750
			Loose Tools	15,000
			Less: Consumption of Loose Tools	(3,000)	12,000
			Office Furniture		25,000
			Loan to Anwar	30,000
			Add: Accrued Interest	2,000	32,000
			Sundry Debtors	45,000
			Less: Further Bad Debts	(500)
				44,500
			Less: Provision for Doubtful Debts	(4,450)	40,050
			Cash in Hand		2,000
			Cash at Bank		3,000
			Bills Receivable		50,000
			Closing Stock		55,000
		4,02,300			4,02,300

Working Note:

1. As depreciation not to be charged on machinery purchased during the year. Hence amount of depreciation on machinery is:

2. Calculation of Accrued Interest

Interest on Loan 30,000 ×10%	3,000
Less: Interest Received	(1,000)
Accrued Interest	2,000

3. Calculation of Manager's Commission

Answer:

Financial Statements of K
Trading Account for the year ended March 31, 2017
Dr.							Cr.
Particulars			Amount (Rs)	Particulars		Amount (Rs)
Opening Stock			75,000	Sales	23,10,000
Purchases	15,95,000			Less: Sale of Investments	1,10,000	22,00,000
Less: Wrongly Included	45,000		15,50,000	Closing Stock		2,25,000
Freight on Purchases	25,000
Less: Wrongly Included	5,000		20,000
Wages		66,000
Add: Outstanding Wages		6,000	72,000
Gross Profit (Balancing Figure)			7,08,000
			24,25,000			24,25,000

Profit and Loss Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Salaries		1,40,000	Gross Profit	7,08,000
Depreciation on:			Profit on Sale of Investments	10,000
Machinery (WN1)	52,500		Interest on Investments	12,000
Furniture	4,000		Discount Received	15,000
Building	7,500	64,000
Commission on Sales	45,000
Add: O/s Commission on Sales	10,000	55,000
Old Bad Debts	15,000
Add: Further Bad Debts	10,000
Add: New Provision	12,000
Less: Old Provision	8,000	29,000
Insurance	24,000
Less: Prepaid Insurance	8,000	16,000
Postages, Telegrams and Telephones		12,000
Printing and Stationery		18,000
Miscellaneous Expenses		30,000
Net Profit (Balancing Figure)		3,81,000
		7,45,000		7,45,000

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets			Amount (Rs)
Capital	8,00,000		Fixed Assets
Add: Net Profit	3,81,000		Machinery		5,00,000
Less: Drawings	60,000	11,21,000	Add: Additions		45,000
			Add: Freight		5,000
			Less: Depreciation		52,500	4,97,500
			Building		3,00,000
			Less: Dep.@ 2.5%		7,500	2,92,500
			Furniture		40,000
			Less: Dep.@ 10%		4,000	36,000
Current Liabilities			Current Assets
Creditors		3,00,000	Closing Stock			2,25,000
O/standing Commission on sales		10,000	Debtors	2,50,000
O/standing Wages		6,000	Less: Further Bad Debts	10,000
			Less: New Provision for Doubtful Debts	12,000		2,28,000
			Prepaid Insurance			8,000
			Bank			1,50,000
		14,37,000				14,37,000

Working Notes:

Calculation of Depreciation on Machinery

Question 21:

Financial Statements of K
Trading Account for the year ended March 31, 2017
Dr.							Cr.
Particulars			Amount (Rs)	Particulars		Amount (Rs)
Opening Stock			75,000	Sales	23,10,000
Purchases	15,95,000			Less: Sale of Investments	1,10,000	22,00,000
Less: Wrongly Included	45,000		15,50,000	Closing Stock		2,25,000
Freight on Purchases	25,000
Less: Wrongly Included	5,000		20,000
Wages		66,000
Add: Outstanding Wages		6,000	72,000
Gross Profit (Balancing Figure)			7,08,000
			24,25,000			24,25,000

Profit and Loss Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Salaries		1,40,000	Gross Profit	7,08,000
Depreciation on:			Profit on Sale of Investments	10,000
Machinery (WN1)	52,500		Interest on Investments	12,000
Furniture	4,000		Discount Received	15,000
Building	7,500	64,000
Commission on Sales	45,000
Add: O/s Commission on Sales	10,000	55,000
Old Bad Debts	15,000
Add: Further Bad Debts	10,000
Add: New Provision	12,000
Less: Old Provision	8,000	29,000
Insurance	24,000
Less: Prepaid Insurance	8,000	16,000
Postages, Telegrams and Telephones		12,000
Printing and Stationery		18,000
Miscellaneous Expenses		30,000
Net Profit (Balancing Figure)		3,81,000
		7,45,000		7,45,000

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets			Amount (Rs)
Capital	8,00,000		Fixed Assets
Add: Net Profit	3,81,000		Machinery		5,00,000
Less: Drawings	60,000	11,21,000	Add: Additions		45,000
			Add: Freight		5,000
			Less: Depreciation		52,500	4,97,500
			Building		3,00,000
			Less: Dep.@ 2.5%		7,500	2,92,500
			Furniture		40,000
			Less: Dep.@ 10%		4,000	36,000
Current Liabilities			Current Assets
Creditors		3,00,000	Closing Stock			2,25,000
O/standing Commission on sales		10,000	Debtors	2,50,000
O/standing Wages		6,000	Less: Further Bad Debts	10,000
			Less: New Provision for Doubtful Debts	12,000		2,28,000
			Prepaid Insurance			8,000
			Bank			1,50,000
		14,37,000				14,37,000

Working Notes:

Calculation of Depreciation on Machinery

Answer:

Financial Statement of Banerjee
Trading Account for the year ended March 31, 2017
Dr.						Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Purchases (Adjusted)	2,10,000		Sales	3,85,000
Less: Return Outwards	2,500	2,07,500	Less: Return Inwards	1,500	3,83,500
Carriage Inwards		1,200
Wages		45,300
Gross Profit (Balancing Figure)		1,29,500
		3,83,500			3,83,500

Profit and Loss Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Carriage Outwards		2,000	Gross Profit	1,29,500
Depreciation:			Commission	1,500
Office Equipment	2,400		Discount	1,200
Plant & Machinery	5,000
Land & Building	3,000
Furniture and Fixtures	3,000	13,400
Bad Debts	1,200
Add: Provision for Doubtful Debts	800	2,000
Insurance	1,500
Less: Prepaid Insurance	250	1,250
Salaries 39,000
Add: Outstanding 11,500		50,500
Office Expenses		15,400
Discount		750
Salary to Banerjee		15,000
Outstanding Interest on Loan		2,250
General Reserve		2,965
Net Profit (Balancing Figure)		26,685
		1,32,200		1,32,200

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
			Fixed Assets
Capital	1,15,000		Land & Building	50,000
Add: Salary	15,000		Less: Depreciation @ 6%	3,000	47,000
Add: Net Profit	26,685	1,56,685	Plant & Machinery	50,000
General Reserve		2,965	Less: Depreciation @ 10%	5,000	45,000
Chatterji’s Loan		25,000	Office Equipments	12,000
			Less: Depreciation @ 20%	2,400	9,600
			Furniture and Fixtures	20,000
			Less: Depreciation @ 15%	3,000	17,000
Current Liabilities			Current Assets
Sundry Creditors		25,000	Closing Stock		45,000
Expenses Payable		3,300	Prepaid Insurance		250
O/standing Interest on Loan		2,250	Sundry Debtors	40,000
Bills Payable Outstanding Salaries		12,350 11,500	Less: Provision for Doubtful Debts	800	39,200
			Cash at Bank		16,000
			Bills Receivable		20,000
		2,39,050			2,39,050

Note: When closing stock is given in the Trial Balance, then it will be only shown at one place, that is, on the Assets side of the Balance Sheet.

Question 22:

Financial Statement of Banerjee
Trading Account for the year ended March 31, 2017
Dr.						Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Purchases (Adjusted)	2,10,000		Sales	3,85,000
Less: Return Outwards	2,500	2,07,500	Less: Return Inwards	1,500	3,83,500
Carriage Inwards		1,200
Wages		45,300
Gross Profit (Balancing Figure)		1,29,500
		3,83,500			3,83,500

Profit and Loss Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Carriage Outwards		2,000	Gross Profit	1,29,500
Depreciation:			Commission	1,500
Office Equipment	2,400		Discount	1,200
Plant & Machinery	5,000
Land & Building	3,000
Furniture and Fixtures	3,000	13,400
Bad Debts	1,200
Add: Provision for Doubtful Debts	800	2,000
Insurance	1,500
Less: Prepaid Insurance	250	1,250
Salaries 39,000
Add: Outstanding 11,500		50,500
Office Expenses		15,400
Discount		750
Salary to Banerjee		15,000
Outstanding Interest on Loan		2,250
General Reserve		2,965
Net Profit (Balancing Figure)		26,685
		1,32,200		1,32,200

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
			Fixed Assets
Capital	1,15,000		Land & Building	50,000
Add: Salary	15,000		Less: Depreciation @ 6%	3,000	47,000
Add: Net Profit	26,685	1,56,685	Plant & Machinery	50,000
General Reserve		2,965	Less: Depreciation @ 10%	5,000	45,000
Chatterji’s Loan		25,000	Office Equipments	12,000
			Less: Depreciation @ 20%	2,400	9,600
			Furniture and Fixtures	20,000
			Less: Depreciation @ 15%	3,000	17,000
Current Liabilities			Current Assets
Sundry Creditors		25,000	Closing Stock		45,000
Expenses Payable		3,300	Prepaid Insurance		250
O/standing Interest on Loan		2,250	Sundry Debtors	40,000
Bills Payable Outstanding Salaries		12,350 11,500	Less: Provision for Doubtful Debts	800	39,200
			Cash at Bank		16,000
			Bills Receivable		20,000
		2,39,050			2,39,050

Note: When closing stock is given in the Trial Balance, then it will be only shown at one place, that is, on the Assets side of the Balance Sheet.

Answer:

Profit and Loss Account for the year ended March 31, 2017
Dr.						Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Printing and Stationery		2,000	Gross Profit		1,17,200
Depreciation:			Provision for Doubtful Debts (WN1)		2,950
Loose tools	500		Interest on Loan	1,000
Plant & Machinery	11,500		Add: Accrued Interest	1,000	2,000
Furniture	200	12,200	Insurance Claim Received		5,000
Salaries	14,000
Add: Outstanding Salaries	700	14,700
Insurance	3,000
Less: Prepaid Insurance	400	2,600
Office Rent		2,600
Discount		1,500
Net Profit (Balancing Figure)		91,550
		1,27,150			1,27,150

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets			Amount (Rs)
Capital	2,00,000		Fixed Assets
Add: Net Profit	91,550		Loose Tools		2,000
Less: Drawings	10,000	2,81,550	Less: Depreciation		500	1,500
			Plant & Machinery		1,00,000
			Add: Additions		15,000
			Less: Depreciation @10%		11,500	1,03,500
			Furniture and Fixtures		4,000
			Less: Depreciation @5%		200	3,800
			Freehold Property			60,000
			Loan to Sudhir			40,000
			Accrued Interest on Loan			1,000
Current Liabilities			Current Assets
Creditors for Machinery		15,000	Closing Stock			74,000
Creditors		40,000	Prepaid Insurance			400
Outstanding Salaries		700	Debtors	25,000
Outstanding Wages		500	Less: Provision for Doubtful Debts @5%	1,250		23,750
Bills Payable		5,700	Cash at Bank			25,000
			Cash in Hand			10,500
		3,43,450				3,43,450

Notes:

1. As trading profit is given in the question, thus, there is no need to prepare Trading Account.

2. Since per annum word is not suffixed with the depreciation rate, thus, depreciation will be

calculated for full year.

Working Notes:

Calculation of New Provision for Doubtful Debts

Particulars	Amount (Rs)
Old Bad Debts	600
Add: New Bad Debts
Add: New Provision for Doubtful Debts	1,250
Less: Old Provision for Doubtful Debts	4,800
Net Amount	(2,950)

Question 23:

Profit and Loss Account for the year ended March 31, 2017
Dr.						Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Printing and Stationery		2,000	Gross Profit		1,17,200
Depreciation:			Provision for Doubtful Debts (WN1)		2,950
Loose tools	500		Interest on Loan	1,000
Plant & Machinery	11,500		Add: Accrued Interest	1,000	2,000
Furniture	200	12,200	Insurance Claim Received		5,000
Salaries	14,000
Add: Outstanding Salaries	700	14,700
Insurance	3,000
Less: Prepaid Insurance	400	2,600
Office Rent		2,600
Discount		1,500
Net Profit (Balancing Figure)		91,550
		1,27,150			1,27,150

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets			Amount (Rs)
Capital	2,00,000		Fixed Assets
Add: Net Profit	91,550		Loose Tools		2,000
Less: Drawings	10,000	2,81,550	Less: Depreciation		500	1,500
			Plant & Machinery		1,00,000
			Add: Additions		15,000
			Less: Depreciation @10%		11,500	1,03,500
			Furniture and Fixtures		4,000
			Less: Depreciation @5%		200	3,800
			Freehold Property			60,000
			Loan to Sudhir			40,000
			Accrued Interest on Loan			1,000
Current Liabilities			Current Assets
Creditors for Machinery		15,000	Closing Stock			74,000
Creditors		40,000	Prepaid Insurance			400
Outstanding Salaries		700	Debtors	25,000
Outstanding Wages		500	Less: Provision for Doubtful Debts @5%	1,250		23,750
Bills Payable		5,700	Cash at Bank			25,000
			Cash in Hand			10,500
		3,43,450				3,43,450

Notes:

1. As trading profit is given in the question, thus, there is no need to prepare Trading Account.

2. Since per annum word is not suffixed with the depreciation rate, thus, depreciation will be

calculated for full year.

Working Notes:

Calculation of New Provision for Doubtful Debts

Particulars	Amount (Rs)
Old Bad Debts	600
Add: New Bad Debts
Add: New Provision for Doubtful Debts	1,250
Less: Old Provision for Doubtful Debts	4,800
Net Amount	(2,950)

Answer:

Financial Statement of Ram Lal and Sons
Trading Account for the year ended March 31, 2017
Dr.							Cr.
Particulars			Amount (Rs)	Particulars		Amount (Rs)
Opening Stock			70,000	Sales	4,00,000
Purchases	2,60,000			Less: Return Inwards	8,000	3,92,000
Less: Wrongly Included	10,000			Closing Stock		35,000
Less: Return Outwards	7,000		2,43,000
Carriage			5,000
Wages		50,000
Add: Outstanding Wages		6,000	56,000
Gross Profit (Balancing Figure)			53,000
			4,27,000			4,27,000

Profit and Loss Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Depreciation on:			Gross Profit	53,000
Land & Building	2,450		Provision for Doubtful Debts (WN3)	6,200
Plant & Machinery (WN1)	21,000		Discount	6,000
Furniture	8,250	31,700	Net Loss (Balancing Figure)	81,500
Salaries	45,000
Add: Outstanding Salaries	5,000	50,000
Interest on Bank Loan	12,000
Add: Outstanding Interest	3,000	15,000
Commission		15,000
Discount		7,000
Advertisement		15,000
Taxes and Insurance		13,000
		1,46,700		1,46,700

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets			Amount (Rs)
Capital	3,50,000		Fixed Assets
Less: Net Loss	81,500		Plant & Machinery	2,05,000
Less: Drawings	15,000	2,53,500	Add: Additions	10,000
10% Bank Loan		1,50,000	Less: Depreciation @ 10%	21,000		1,94,000
Current Liabilities			Land & Building	98,000
Creditors		25,000	Less: Depreciation @ 2.5%	2,450		95,550
Outstanding Salaries		5,000	Furniture	55,000
Outstanding Wages		6,000	Less: Depreciation @ 15%	8,250		46,750
Outstanding Interest		3,000	Current Assets
			Closing Stock			35,000
			Debtors		50,000
			Less: New Bad Debts		2,000
			Less: New Provision for Doubtful Debts		4,800	43,200
			Cash in Hand			8,000
			Cash at Bank			20,000
		4,42,500				4,42,500

Note: As per the Prudence Concept, closing stock is to be valued at cost price or market price, whichever is less.

Working Notes:

WN1:Calculation of Depreciation on Plant and Machinery

WN2: Calculation of Amount of Debtors

Total Amount of Debtors = 50,000

Less: New Bad Debts = 2,000

Amount on which provision is to be maintained = Rs 48,000

WN3: Calculation of New Provision for Doubtful Debts

Particulars	Amount (Rs)
Old Bad Debts
Add: New Bad Debts	2,000
Add: New Provision for Doubtful Debts	4,800
Less: Old Provision for Doubtful Debts	13,000
Net Amount	(6,200)

Note: The question has a printing mistake. In point (iii) Depreciation on Land and Building will be 2.5% instead of 0.5%

Question 24:

Financial Statement of Ram Lal and Sons
Trading Account for the year ended March 31, 2017
Dr.							Cr.
Particulars			Amount (Rs)	Particulars		Amount (Rs)
Opening Stock			70,000	Sales	4,00,000
Purchases	2,60,000			Less: Return Inwards	8,000	3,92,000
Less: Wrongly Included	10,000			Closing Stock		35,000
Less: Return Outwards	7,000		2,43,000
Carriage			5,000
Wages		50,000
Add: Outstanding Wages		6,000	56,000
Gross Profit (Balancing Figure)			53,000
			4,27,000			4,27,000

Profit and Loss Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Depreciation on:			Gross Profit	53,000
Land & Building	2,450		Provision for Doubtful Debts (WN3)	6,200
Plant & Machinery (WN1)	21,000		Discount	6,000
Furniture	8,250	31,700	Net Loss (Balancing Figure)	81,500
Salaries	45,000
Add: Outstanding Salaries	5,000	50,000
Interest on Bank Loan	12,000
Add: Outstanding Interest	3,000	15,000
Commission		15,000
Discount		7,000
Advertisement		15,000
Taxes and Insurance		13,000
		1,46,700		1,46,700

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets			Amount (Rs)
Capital	3,50,000		Fixed Assets
Less: Net Loss	81,500		Plant & Machinery	2,05,000
Less: Drawings	15,000	2,53,500	Add: Additions	10,000
10% Bank Loan		1,50,000	Less: Depreciation @ 10%	21,000		1,94,000
Current Liabilities			Land & Building	98,000
Creditors		25,000	Less: Depreciation @ 2.5%	2,450		95,550
Outstanding Salaries		5,000	Furniture	55,000
Outstanding Wages		6,000	Less: Depreciation @ 15%	8,250		46,750
Outstanding Interest		3,000	Current Assets
			Closing Stock			35,000
			Debtors		50,000
			Less: New Bad Debts		2,000
			Less: New Provision for Doubtful Debts		4,800	43,200
			Cash in Hand			8,000
			Cash at Bank			20,000
		4,42,500				4,42,500

Note: As per the Prudence Concept, closing stock is to be valued at cost price or market price, whichever is less.

Working Notes:

WN1:Calculation of Depreciation on Plant and Machinery

WN2: Calculation of Amount of Debtors

Total Amount of Debtors = 50,000

Less: New Bad Debts = 2,000

Amount on which provision is to be maintained = Rs 48,000

WN3: Calculation of New Provision for Doubtful Debts

Particulars	Amount (Rs)
Old Bad Debts
Add: New Bad Debts	2,000
Add: New Provision for Doubtful Debts	4,800
Less: Old Provision for Doubtful Debts	13,000
Net Amount	(6,200)

Note: The question has a printing mistake. In point (iii) Depreciation on Land and Building will be 2.5% instead of 0.5%

Answer:

Financial Statement of….
Trading Account for the year ended 31 March, 2017
Dr.	Cr.
Particulars				Amount (Rs)	Particulars		Amount (Rs)
Opening Stock				1,15,200	Sales	19,75,600
Purchases			8,13,500		Less: Return Inwards	13,600	19,62,000
Less: Return Outwards			10,000	8,03,500	Closing Stock		1,36,000
Carriage on Purchases				40,800
Wages		2,09,600
Less: Wrongly included		40,000		1,69,600
Fuel and Power				94,600
Gross Profit (Balancing Figure)				8,74,300
				20,98,000			20,98,000

Profit and Loss Account for the year ended March 31,2017.
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Depreciation on Machinery		40,000	Gross Profit	8,74,300
Depreciation on Patents		30,000
Salary	3,00,000
Add: Outstanding	30,000	3,30,000
Advertisement		60,000
Insurance	12,000
Less: Prepaid	1,700	10,300
Carriage Outwards		64,000
Provision for Doubtful Debts		14,500
Net Profit (Balancing Figure)		3,25,500
		8,74,300		8,74,300

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	16,00,000		Building(6,00,000 + 40,000)		6,40,000
Add: Net Profit	3,25,500		Computers		2,00,000
Less:Drawings	1,04,900	18,20,600	Machinery	4,00,000
Outstanding Salary		30,000	Less: Depreciation	40,000	3,60,000
Creditors		1,26,000	Patents	1,50,000
			Less: Depreciation	30,000	1,20,000
			Debtors	2,90,000
			Less: Provision	14,500	2,75,500
			Closing Stock		1,36,000
			Prepaid Insurance		1,700
			Cash at Bank		2,32,600
			Cash in Hand		10,800
		19,76,600			19,76,600

Question 25:

Financial Statement of….
Trading Account for the year ended 31 March, 2017
Dr.	Cr.
Particulars				Amount (Rs)	Particulars		Amount (Rs)
Opening Stock				1,15,200	Sales	19,75,600
Purchases			8,13,500		Less: Return Inwards	13,600	19,62,000
Less: Return Outwards			10,000	8,03,500	Closing Stock		1,36,000
Carriage on Purchases				40,800
Wages		2,09,600
Less: Wrongly included		40,000		1,69,600
Fuel and Power				94,600
Gross Profit (Balancing Figure)				8,74,300
				20,98,000			20,98,000

Profit and Loss Account for the year ended March 31,2017.
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Depreciation on Machinery		40,000	Gross Profit	8,74,300
Depreciation on Patents		30,000
Salary	3,00,000
Add: Outstanding	30,000	3,30,000
Advertisement		60,000
Insurance	12,000
Less: Prepaid	1,700	10,300
Carriage Outwards		64,000
Provision for Doubtful Debts		14,500
Net Profit (Balancing Figure)		3,25,500
		8,74,300		8,74,300

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	16,00,000		Building(6,00,000 + 40,000)		6,40,000
Add: Net Profit	3,25,500		Computers		2,00,000
Less:Drawings	1,04,900	18,20,600	Machinery	4,00,000
Outstanding Salary		30,000	Less: Depreciation	40,000	3,60,000
Creditors		1,26,000	Patents	1,50,000
			Less: Depreciation	30,000	1,20,000
			Debtors	2,90,000
			Less: Provision	14,500	2,75,500
			Closing Stock		1,36,000
			Prepaid Insurance		1,700
			Cash at Bank		2,32,600
			Cash in Hand		10,800
		19,76,600			19,76,600

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	27,500
Fixtures and Fittings	1,720	29,220
Net Profit (Balancing Figure)		25,540
		1,82,660		1,82,660

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	9,32,300		Fixed Assets
Less: Drawings	(68,200)		Plant and Machinery	5,50,000
Add: Net Profit	25,540	8,89,640	Less: 5% Depreciation	(27,500)	5,22,500
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
		11,93,660			11,93,660

Note: Depreciation on Plant & Machinery =

3, 50, 000 \times \frac{5}{100} + 2, 20, 000 \times \frac{5}{100} \times \frac{6}{12} = Rs 23, 000

Question 26:

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	27,500
Fixtures and Fittings	1,720	29,220
Net Profit (Balancing Figure)		25,540
		1,82,660		1,82,660

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	9,32,300		Fixed Assets
Less: Drawings	(68,200)		Plant and Machinery	5,50,000
Add: Net Profit	25,540	8,89,640	Less: 5% Depreciation	(27,500)	5,22,500
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
		11,93,660			11,93,660

Note: Depreciation on Plant & Machinery =

3, 50, 000 \times \frac{5}{100} + 2, 20, 000 \times \frac{5}{100} \times \frac{6}{12} = Rs 23, 000

Answer:

Financial Statements of Shri Paras Trading Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Opening Stock		57,600	Sales	10,00,000
Purchases	4,06,750		Less: Return Inwards	(19,000)	9,81,000
Less: Return Outwards	(5,000)	4,01,750	Closing Stock		68,000
Carriage on Purchases		20,400
Fuel and Power		47,300
Wages	1,04,800
Less: Building	(20,000)	84,800
Gross Profit (Balancing Figure)		4,37,150
		10,49,000			10,49,000

Profit and Loss Account for the year ended March 31, 2017
Dr.						Cr.
Particulars				Amount (Rs)	Particulars	Amount (Rs)
Insurance			6,000		Gross Profit	4,37,150
Less: Prepaid Insurance (1,700 × 1/2)			(850)	5,150
General Expenses				30,000
Salaries	1,50,000
Add: Salaries Outstanding (1,50,000 × 2/10)	30,000			1,80,000
Depreciation on:
Machinery		20,000
Patents		15,000
Building		16,000		51,000
Carriage on Sales				32,000
Provision for Bad and Doubtful Debts				7,250
Manager’s Commission				11,977
Net Profit (Balancing Figure)				1,19,773
				4,37,150		4,37,150

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	7,10,000
Add: Net Profit	1,19,773		Freehold Land		1,00,000
Less: Drawings	(52,450)	7,77,323	Building	3,00,000
Sundry Creditors		63,000	Add: Wages	20,000
Salaries Outstanding		30,000		3,20,000
Manager’s Commission Payable		11,977	Less: 5% Depreciation	(16,000)	3,04,000
			Patents	75,000
			Less: 20% Depreciation	(15,000)	60,000
			Machinery	2,00,000
			Less: 10% Depreciation	(20,000)	1,80,000
			Closing Stock		68,000
			Sundry Debtors	1,45,000
			Less: Provision for Doubtful Debts	(7,250)	1,37,750
			Prepaid Insurance		850
			Cash at Bank		26,300
			Cash in Hand		5,400
		8,82,300			8,82,300

Working Note:

Calculation of Manager’s Commission:

Question 27:

Financial Statements of Shri Paras Trading Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
Opening Stock		57,600	Sales	10,00,000
Purchases	4,06,750		Less: Return Inwards	(19,000)	9,81,000
Less: Return Outwards	(5,000)	4,01,750	Closing Stock		68,000
Carriage on Purchases		20,400
Fuel and Power		47,300
Wages	1,04,800
Less: Building	(20,000)	84,800
Gross Profit (Balancing Figure)		4,37,150
		10,49,000			10,49,000

Profit and Loss Account for the year ended March 31, 2017
Dr.						Cr.
Particulars				Amount (Rs)	Particulars	Amount (Rs)
Insurance			6,000		Gross Profit	4,37,150
Less: Prepaid Insurance (1,700 × 1/2)			(850)	5,150
General Expenses				30,000
Salaries	1,50,000
Add: Salaries Outstanding (1,50,000 × 2/10)	30,000			1,80,000
Depreciation on:
Machinery		20,000
Patents		15,000
Building		16,000		51,000
Carriage on Sales				32,000
Provision for Bad and Doubtful Debts				7,250
Manager’s Commission				11,977
Net Profit (Balancing Figure)				1,19,773
				4,37,150		4,37,150

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	7,10,000
Add: Net Profit	1,19,773		Freehold Land		1,00,000
Less: Drawings	(52,450)	7,77,323	Building	3,00,000
Sundry Creditors		63,000	Add: Wages	20,000
Salaries Outstanding		30,000		3,20,000
Manager’s Commission Payable		11,977	Less: 5% Depreciation	(16,000)	3,04,000
			Patents	75,000
			Less: 20% Depreciation	(15,000)	60,000
			Machinery	2,00,000
			Less: 10% Depreciation	(20,000)	1,80,000
			Closing Stock		68,000
			Sundry Debtors	1,45,000
			Less: Provision for Doubtful Debts	(7,250)	1,37,750
			Prepaid Insurance		850
			Cash at Bank		26,300
			Cash in Hand		5,400
		8,82,300			8,82,300

Working Note:

Calculation of Manager’s Commission:

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 Depreciation on Furniture		50,000 7,000	Gross Profit	8,24,000
Rent	2,20,000
Add: Outstanding Rent	20,000	2,40,000
Salary		1,50,000
Insurance 36,000 Less: Prepaid 6,000		30,000
Interest on Bank Loan (for 6 Months)		10,000
Bad Debts	6,000
Add: Provision for Doubtful Debts	10,000	16,000

Net Profit (Balancing Figure)		3,21,000
		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	(1,80,000)		Machinery	5,00,000
Add: Net Profit	3,21,000	9,41,000	Less: 10% Depreciation	(50,000)	4,50,000
8% Bank Loan	2,50,000		Furniture 1,40,000 Less: 5% Depreciation 7,000		1,33,000
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
			Less: 5% Provision for Doubtful Debts	(10,000)	1,90,000
			Cash in Hand Prepaid Insurance		15,000 6,000
		14,34,000			14,34,000

Working Notes:

WN1 Calculation of Interest on Loan

Bank Loan = Rs 2,50,000

Interest on Loan (from Oct. 01 to Mar. 31) = $2, 50, 000 \times \frac{8}{100} \times \frac{6}{12} = Rs 10, 000$

Question 28:

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 Depreciation on Furniture		50,000 7,000	Gross Profit	8,24,000
Rent	2,20,000
Add: Outstanding Rent	20,000	2,40,000
Salary		1,50,000
Insurance 36,000 Less: Prepaid 6,000		30,000
Interest on Bank Loan (for 6 Months)		10,000
Bad Debts	6,000
Add: Provision for Doubtful Debts	10,000	16,000

Net Profit (Balancing Figure)		3,21,000
		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	(1,80,000)		Machinery	5,00,000
Add: Net Profit	3,21,000	9,41,000	Less: 10% Depreciation	(50,000)	4,50,000
8% Bank Loan	2,50,000		Furniture 1,40,000 Less: 5% Depreciation 7,000		1,33,000
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
			Less: 5% Provision for Doubtful Debts	(10,000)	1,90,000
			Cash in Hand Prepaid Insurance		15,000 6,000
		14,34,000			14,34,000

Working Notes:

WN1 Calculation of Interest on Loan

Bank Loan = Rs 2,50,000

Interest on Loan (from Oct. 01 to Mar. 31) = $2, 50, 000 \times \frac{8}{100} \times \frac{6}{12} = Rs 10, 000$

Answer:

Financial Statement of Atam Prakash Trading Account for the year ended March 31, 2017
Dr.			Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Opening Stock	4,50,000	Sales	31,00,000
Purchases	26,00,000	Closing Stock	5,30,000
Freight and Octori	46,000
Gross Profit (Balancing Figure)	5,34,000
	36,30,000		36,30,000

Profit and Loss Account for the year ended March 31, 2017
Dr.						Cr.
Particulars			Amount (Rs)	Particulars		Amount (Rs)
Trade Expenses			5,000	Gross Profit		5,34,000
Salaries	55,000			Commission	13,000
Add: Outstanding Salaries	5,000		60,000	Add: Accrued Commission	1,220	14,220
(55,000 × 1/11)
Rent			24,000
Advertising Expenses			12,500
Insurance Premium		4,000
Less: Prepaid Insurance		(1,000)	3,000
Discount			2,000
Bad Debts		16,000
Add: Provision for Doubtful Debts		12,000
		18,000
Less: Existing Provision		(9,000)	19,000
Depreciation on furniture			10,000
Manager’s Commission			37,520
Net Profit (Balancing Figure)			3,75,200
			5,48,220			5,48,220

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	8,00,000		Furniture	1,00,000
Less: Drawings	(60,000)		Less: 10% Depreciation	(10,000)	90,000
Add: Net Profit	3,75,200	11,15,200	Sundry Debtors	4,00,000
Creditors		2,00,000	Less: Provision for Doubtful Debts	(12,000)	3,88,000
Manager’s Commission Payable		37,520	Land and Building		2,00,000
Salaries Outstanding		5,000	Closing Stock		5,30,000
			Bank		58,000
			Cash in Hand		52,000
			Prepaid Insurance		1,000
			Accrued Commission Advertisement Expense		1,220 37,500
		13,57,720			13,57,720

Working Notes:
WN1:
$Manager' s Commission = 4, 12, 720 \times \frac{10}{110} = Rs 37, 520$
WN2: Advance for Furniture is for furniture of proprietor's residence. Therefore, it will transferred to drawings.

Question 29:

Financial Statement of Atam Prakash Trading Account for the year ended March 31, 2017
Dr.			Cr.
Particulars	Amount (Rs)	Particulars	Amount (Rs)
Opening Stock	4,50,000	Sales	31,00,000
Purchases	26,00,000	Closing Stock	5,30,000
Freight and Octori	46,000
Gross Profit (Balancing Figure)	5,34,000
	36,30,000		36,30,000

Profit and Loss Account for the year ended March 31, 2017
Dr.						Cr.
Particulars			Amount (Rs)	Particulars		Amount (Rs)
Trade Expenses			5,000	Gross Profit		5,34,000
Salaries	55,000			Commission	13,000
Add: Outstanding Salaries	5,000		60,000	Add: Accrued Commission	1,220	14,220
(55,000 × 1/11)
Rent			24,000
Advertising Expenses			12,500
Insurance Premium		4,000
Less: Prepaid Insurance		(1,000)	3,000
Discount			2,000
Bad Debts		16,000
Add: Provision for Doubtful Debts		12,000
		18,000
Less: Existing Provision		(9,000)	19,000
Depreciation on furniture			10,000
Manager’s Commission			37,520
Net Profit (Balancing Figure)			3,75,200
			5,48,220			5,48,220

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	8,00,000		Furniture	1,00,000
Less: Drawings	(60,000)		Less: 10% Depreciation	(10,000)	90,000
Add: Net Profit	3,75,200	11,15,200	Sundry Debtors	4,00,000
Creditors		2,00,000	Less: Provision for Doubtful Debts	(12,000)	3,88,000
Manager’s Commission Payable		37,520	Land and Building		2,00,000
Salaries Outstanding		5,000	Closing Stock		5,30,000
			Bank		58,000
			Cash in Hand		52,000
			Prepaid Insurance		1,000
			Accrued Commission Advertisement Expense		1,220 37,500
		13,57,720			13,57,720

Working Notes:
WN1:
$Manager' s Commission = 4, 12, 720 \times \frac{10}{110} = Rs 37, 520$
WN2: Advance for Furniture is for furniture of proprietor's residence. Therefore, it will transferred to drawings.

Answer:

Financial Statement of Modern Traders Trading Account for the year ended March 31, 2017
Dr.				Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Opening Stock		1,50,000	Sales	12,00,000
Purchases 8,20,000 Less: Destroyed due to fire 10,000		8,10,000	Closing Stock	1,50,000
Freight Inwards		20,000
Wages	13,000
Add: Outstanding Wages	5,000	18,000
Gross Profit (Balancing Figure)		3,52,000
		13,50,000		13,50,000

Profit and Loss Account for the year ended March 31, 2017
Dr.				Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Postage and Telegrams		8,000	Gross Profit	3,52,000
Bad Debts	4,000		Discount Received	4,000
Add: Provision for Doubtful Debts	9,800		Rent Revenue	12,000
Less: Existing Provision	(8,000)	5,800
Carriage Outwards		5,000
Rent, Rates and Taxes		46,000
Insurance		7,000
Salaries Goods Lost by Fire		2,00,000 2,500
Printing and Stationery		8,000
Depreciation on:
Machinery	40,000
Furniture	2,500	42,500
Net Profit (Balancing Figure)		43,200
		3,68,000		3,68,000

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	8,50,000		Plant and Machinery	4,00,000
Less: Drawings	(50,000)		Less: Accumulated Depreciation (90,000 + 40,000)	(1,30,000)	2,70,000
Add: Net Profit	43,200	8,43,200	Furniture	70,000
Reserve Fund		50,000	Less: 5% Depreciation	(2,500)	57,500
Sundry Creditors		80,000	Closing Stock		1,50,000
Wages Outstanding		5,000	Sundry Debtors	1,96,000
			Less: Provision for Doubtful Debts	(9,800)	1,86,200
			Cash at Bank		2,45,000
			Cash in Hand Insurance Company		62,000 7,500
		9,78,200			9,78,200

Question 30:

Financial Statement of Modern Traders Trading Account for the year ended March 31, 2017
Dr.				Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Opening Stock		1,50,000	Sales	12,00,000
Purchases 8,20,000 Less: Destroyed due to fire 10,000		8,10,000	Closing Stock	1,50,000
Freight Inwards		20,000
Wages	13,000
Add: Outstanding Wages	5,000	18,000
Gross Profit (Balancing Figure)		3,52,000
		13,50,000		13,50,000

Profit and Loss Account for the year ended March 31, 2017
Dr.				Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Postage and Telegrams		8,000	Gross Profit	3,52,000
Bad Debts	4,000		Discount Received	4,000
Add: Provision for Doubtful Debts	9,800		Rent Revenue	12,000
Less: Existing Provision	(8,000)	5,800
Carriage Outwards		5,000
Rent, Rates and Taxes		46,000
Insurance		7,000
Salaries Goods Lost by Fire		2,00,000 2,500
Printing and Stationery		8,000
Depreciation on:
Machinery	40,000
Furniture	2,500	42,500
Net Profit (Balancing Figure)		43,200
		3,68,000		3,68,000

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	8,50,000		Plant and Machinery	4,00,000
Less: Drawings	(50,000)		Less: Accumulated Depreciation (90,000 + 40,000)	(1,30,000)	2,70,000
Add: Net Profit	43,200	8,43,200	Furniture	70,000
Reserve Fund		50,000	Less: 5% Depreciation	(2,500)	57,500
Sundry Creditors		80,000	Closing Stock		1,50,000
Wages Outstanding		5,000	Sundry Debtors	1,96,000
			Less: Provision for Doubtful Debts	(9,800)	1,86,200
			Cash at Bank		2,45,000
			Cash in Hand Insurance Company		62,000 7,500
		9,78,200			9,78,200

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
Carriage Inwards		30,000	Less: Returns	(80,000)	10,20,000
Purchases	6,60,000		Closing Stock		70,000
Less: Returns	(15,000)	6,45,000
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
Rent and Insurance	30,000	Discount	5,000
Stationary	2,000	Rent Received	3,000
Depreciation on Motor Vehicle	20,000	Existing Provision	7,000
Bad Debts	5,000	Bad debts Recovered	6,000
Interest on Loan	3,000
Carriage Outwards	25,000
Advertisement	35,000
Travelling Expenses	5,000
General Expenses	34,000
Net Profit (Balancing Figure)	1,19,000
	3,68,000		3,68,000

Balance Sheet as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital	3,00,000		Land and Building		1,20,000
Less: Drawings	(48,000)		Debtors	2,10,000
Add: Net Profit	1,19,000	3,71,000	Less: Travelling person	(5,000)	2,05,000
Loan		95,000	Motor Vehicles	1,00,000
Creditors		94,000	Less: 20% Deprecation	(20,000)	80,000
Bills Payable		20,000	Closing Stock		70,000
			Bills Receivable		60,000
			Bank		25,000
			Cash		20,000

		5,80,000			5,80,000

Class 13 Double Entry Book Keeping Ts Grewal (2017) Solutions for Class 11 Commerce Accountancy Chapter 14 - Final Accounts With Adjustments

Page No 19.60:

Question 1:

Answer:

Page No 19.60:

Question 2:

Answer:

Page No 19.61:

Question 3:

Answer:

Page No 19.61:

Question 4:

Answer:

Page No 19.62:

Question 5:

Answer:

Page No 19.62:

Question 6:

Answer:

Page No 19.63:

Question 7:

Answer:

Page No 19.63:

Question 8:

Answer:

Page No 19.64:

Question 9:

Answer:

Page No 19.64:

Question 10:

Answer:

Page No 19.65:

Question 11:

Answer:

Page No 19.65:

Question 12:

Answer:

Page No 19.66:

Question 13:

Answer:

Page No 19.66:

Question 14:

Answer:

Page No 19.67:

Question 15:

Answer:

Page No 19.68:

Question 16:

Answer:

Page No 19.69:

Question 17:

Answer:

Page No 19.70:

Question 18:

Answer:

Page No 19.71:

Question 19:

Answer:

Page No 19.72:

Question 20:

Answer:

Page No 19.73:

Question 21:

Answer:

Page No 19.74:

Question 22:

Answer:

Page No 19.75:

Question 23:

Answer:

Page No 19.76:

Question 24:

Answer:

Page No 19.77:

Question 25:

Answer:

Page No 19.77:

Question 26:

Answer:

Page No 19.78: