Double Entry Book Keeping Ts Grewal (2016) Solutions for Class 11 Commerce Accountancy Chapter 14 Final Accounts With Adjustments are provided here with simple step-by-step explanations. These solutions for Final Accounts With Adjustments are extremely popular among class 11 Commerce students for Accountancy Final Accounts With Adjustments Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Double Entry Book Keeping Ts Grewal (2016) Book of class 11 Commerce Accountancy Chapter 14 are provided here for you for free. You will also love the ad-free experience on Meritnation’s Double Entry Book Keeping Ts Grewal (2016) Solutions. All Double Entry Book Keeping Ts Grewal (2016) Solutions for class 11 Commerce Accountancy are prepared by experts and are 100% accurate.

Page No 19.60:

Answer:

Trading Account

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

1,600

Sales

4,200

Purchases

2,000

Closing Stock

1,600

Wages

800

 

 

Manufacturing Expenses

150

 

 

Carriage

160

 

 

Gross Profit (Balance Figure)

1,090

 

 

 

5,800

 

5,800

 

 

 

 

           

 

Profit and Loss Account

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Salaries

800

Gross Profit

1,090

Repairs

190

Net Loss (Balancing Figure)

2,490

Rent

450

 

 

 

Add: Unpaid Rent

50

500

 

 

Bad Debts

500

 

 

Depreciation on:

 

 

 

Plant and machinery

1,200

 

 

 

Delivery Vehicle

390

1,590

 

 

 

 

 

 

 

3,580

 

3,580

 

 

 

 

             

 

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

19,000

 

Fixed Assets

 

Less: Drawings

(700)

 

Plant and Machinery

12,000

 

Less: Net Loss

(2,490)

 

Less:10% Deprecation

(1,200)

10,800

 

15,810

Delivery Vehicle

2,600

 

 

 

Less:15% Depreciation

(390)

2,210

Current Liabilities

 

 

 

Sundry Creditors

2,600

Current Assets

 

Bills Payable

2,350

Closing Stock

1,600

Unpaid Rent

50

Sundry Debtors

3,600

 

 

Cash at Bank

2,600

 

20,810

 

20,810

 

 

 

 

 

Page No 19.60:

Answer:

Trading Account

for the year ended March 31, 2016

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, 2016

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, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

1,00,000

 

Fixed Assets

 

Less: Drawings

(10,000)

 

Plant and Machinery

40,000

 

Less: Net Loss

(27,900)

62,100

Less: Depreciation

(4,000)

36,000

Current Liabilities

 

Current Assets

 

Creditors

12,000

Closing stock

14,500

Bills payable

5,000

Sundry debtors

24,000

 

Outstanding repairs

400

Less: Further Bad Debts

(5,000)

19,000

 

 

Bank

10,000

 

79,500

 

79,500

 

 

 

 

 



Page No 19.61:

Answer:

Financial Statement of M/s. Ram Prasad & Sons

Trading Account

for the year ended March 31, 2016

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, 2016

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, 2016

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

 

 

 

 

 

Page No 19.61:

Answer:

 

Trading Account

for the year ended March 31, 2016

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, 2016

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, 2016

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=8,000×5100=Rs 400Depreciation on Plant & MachineryOn Rs 1,40,000 @ 5%=Rs 7,000On Rs 10,000 @ 5% for 6 months=Rs 250Total Depreciation=Rs 7,250



Page No 19.62:

Answer:

Financial Statements of Dev Morarji

Trading Account 

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

2,10,000

Sales

 

4,85,900

Purchases

 

2,16,500

 

 

Carriage Inwards

2,500

Closing Stock

1,80,000

Wages

60,000

 

 

Motive Power, Heating and Lighting

16,000

 

 

Gross Profit (Balancing Figure)

1,60,900

 

 

 

6,65,900

 

6,65,900

 

 

 

 

 

Profit and Loss Account
for the year ended March 31, 2016

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Depreciation on:

 

Gross Profit

1,60,900

 Furniture & Fixtures

1,000

 

Discount Received

5,800

Plant & Mach.

25,000

 

 

 

Loose Tools

5,000

31,000

 

 

Carriage Outwards

6,000

 

 

Printing & Stationery

26,600

 

 

Travelling Expenses

4,000

 

 

Office Expenses

6,500

 

 

Interest paid on Loan

2,000

 

 

Legal Charges

19,000

 

 

Net Profit (Balancing Figure)

71,600

 

 

 

1,66,700

 

1,66,700

 

 

 

 

 

Balance Sheet
as on March 31, 2016

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

Capital

4,27,100

 

Fixed Assets

 

Add: Net Profit

71,600

4,98,700

Furniture & Fixtures

20,000

 

Reserve

5,000

Less: Depreciation @ 5%

1,000

19,000

Loan

3,80,000

Plant & Machinery

2,50,000

 

Current Liabilities

 

Less: Depreciation @10%

25,000

2,25,000

Sundry Creditors

24,300

Tools

50,000

 

 

 

Less: Dep.

5,000

45,000

 

 

Freehold Premises

1,00,000

 

 

Investments

40,000

 

 

Current Assets

 

 

 

Closing Stock

1,80,000

 

 

Sundry Debtors

2,81,000

 

 

Bills Receivable

18,000

 

9,08,000

 

9,08,000

 

 

 

 

 

Page No 19.62:

Answer:

Financial Statements of Narain Lal

Trading Account

for the year ended March 31, 2016

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, 2016

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, 2016

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

 

 

 

 

 



Page No 19.63:

Answer:

Financial statement of M/s. Shradha & Sons

Trading Account

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

4,20,000

Sales

15,50,000

Purchases

8,26,000

 

 

 

Less: Return Outwards

(16,000)

8,10,000

 

 

Carriages Inwards

12,000

Closing Stock

6,40,000

Wages

40,000

 

 

 

Add: Outstanding Wages

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, 2016

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Rent

2,20,000

 

Gross Profit

8,24,000

Add: Outstanding for One month (22,000/11)

20,000

2,40,000

 

 

Salary

1,50,000

 

 

Insurance

36,000

 

 

 

Less: Prepaid 2 month(3,600 × 2/12)

(6,000)

30,000

 

 

Outstanding Interest on Bank Loan

(25,000 × 8% × 6/12)

10,000

 

 

Bad Debts

6,000

 

 

 

Add: Provision for Doubtful Debts

10,000

16,000

 

 

Depreciation on:

 

 

 

Machinery

50,000

 

 

 

Furniture

7,000

57,000

 

 

Net Profit (Balancing Figure)

3,21,000

 

 

 

8,24,000

 

8,24,000

 

 

 

 

 

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

8,00,000

 

Fixed Assets

 

Add: Net Profit

3,21,000

 

Machinery

5,00,000

 

Less: Drawings

(1,80,000)

9,41,000

Less: 10% Depreciation

(50,000)

4,50,000

8% Bank Loan

2,50,000

 

Furniture

1,40,000

 

Add: Outstanding Interest

10,000

2,60,000

Less: 5% Deprecation

(7,000)

1,33,000

Current Liabilities

 

Current Assets

 

Creditors

1,89,000

Closing Stock

6,40,000

Wages Outstanding

24,000

Debtors

2,06,000

 

Rent Outstanding

20,000

Less: Bad Debts

(6,000)

 

 

 

Less: 5% Provision for Doubtful Debts

(10,000)

1,90,000

 

 

Prepaid insurance

6,000

 

 

Cash in hand

15,000

 

14,34,000

 

14,34,000

 

 

 

 

 

Page No 19.63:

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

 

 

 

 

 



Page No 19.64:

Answer:

Financial Statements of Vijay Kumar

Trading Account

for the year ended March 31, 2016

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, 2016

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, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital            

2,45,000

 

Fixed Assets

 

Add: Net Profit        

95,510

 

Building

1,10,000

Less: Drawings

(20,000)

3,20,510

Machinery

93,400

 

Loan

78,800

 

Less:10% Depreciation

9,340

84,060

Add: Outstanding Interest

7,000

85,800

Motor Car

20,000

Current Liabilities

 

Current Assets

 

Creditors

25,000

Closing Stock

2,30,000

Bills Payable

38,500

Debtors

62,800

 

Bank Overdraft

33,000

Less: Bad Debts

(1,800)

 

 

 

Less: 5% Provision for Doubtful Debts

(3,050)

57,950

 

 

Cash

800

 

5,02,810

 

5,02,810

 

 

 

 

 

Page No 19.64:

Answer:

Financial Statement of Modern Traders

Trading Account

for the year ended March 31, 2016

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

1,50,000

Sales

12,00,000

Purchases

8,20,000

Closing Stock

1,50,000

Freight Inwards

20,000

 

 

Wages

13,000

 

 

 

Add: Outstanding Wages

 5,000

18,000

 

 

Gross Profit (Balancing Figure)

3,42,000

 

 

 

13,50,000

 

13,50,000

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Postage and Telegrams

8,000

Gross Profit

3,42,000

Bad Debts

4,000

 

Discount Received

4,000

Add: Provision for Doubtful Debts

10,300

 

Rent Revenue

12,000

Less: Existing Provision

(8,000)

6,300

 

 

Carriage Outwards

5,000

 

 

Rent, Rates and Taxes

46,000

 

 

Insurance

7,000

 

 

 

Less: Prepaid Insurance

(1,000)

6,000

 

 

Salaries

2,00,000

 

 

Printing and Stationery

8,000

 

 

Depreciation on:

 

 

 

Machinery

40,000

 

 

 

Furniture

2,500

42,500

 

 

Net Profit (Balancing Figure)

36,200

 

 

 

3,58,000

 

3,58,000

 

 

 

 

 

Balance Sheet

as on March 31, 2016

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

36,200

8,36,200

Furniture

50,000

 

Reserve Fund

50,000

Less: 5% Depreciation

(2,500)

47,500

Sundry Creditors

90,000

Closing Stock

15,000

Wages Outstanding

5,000

Sundry Debtors

2,06,000

 

 

 

Less: Provision for Doubtful Debts

(10,300)

1,95,700

 

 

Prepaid Insurance

1,000

 

 

Cash at Bank

2,55,000

 

 

Cash in Hand

62,000

 

9,81,200

 

9,81,200

 

 

 

 

 



Page No 19.65:

Answer:

Financial Statements of Mohan

Trading Account

for the year ended March 31, 2016

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Openings Stock

68,000

Sales

11,00,000

 

 

 

Less: Returns

(80,000)

10,20,000

Purchases

6,60,000

 

 

 

Less: Returns

(15,000)

6,45,000

Closing Stock

70,000

Carriage Inwards

30,000

 

 

Gross Profit (Balancing Figure)

3,47,000

 

 

 

 

 

 

 

10,90,000

 

10,90,000

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Salaries

90,000

 

Gross Profit

3,47,000

Add: Outstanding

2,000

92,000

Discount

5,000

Rent and Insurance

30,000

 

Rent Received

3,000

Less: Prepaid Insurance

(2,000)

28,000

 

 

Depreciation on:

 

 

 

Land and Building

3,000

 

 

 

Motor Vehicles

20,000

23,000

 

 

Bad Debts

5,000

 

 

 

Add: Provisions for Doubtful Debts

10,000

 

 

 

Less: Exiting Provision

(7,000)

8,000

 

 

Interest on Loan

3,000

 

 

Carriage Outwards

25,000

 

 

Advertisement

35,000

 

 

General Expenses

34,000

 

 

Net Profit (Balancing Figure)

1,07,000

 

 

 

3,55,000

 

3,55,000

 

 

 

 

           

 

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

3,00,000

 

 

 

Less: Drawings

(50,000)

 

Land and Building

1,20,000

 

Add: Net Profit

1,07,000

3,57,000

Less: 2.5% Deprecation

(3,000)

1,17,000

Loan

95,000

Motor Vehicles

1,00,000

 

Creditors

1,00,000

Less: 20% Deprecation

(20,000)

80,000

Bills Payable

20,000

Closing Stock

70,000

Salaries Outstanding

2,000

Debtors

2,00,000

 

 

 

Less: 5% Provision for Doubtful Debts

(10,000)

1,90,000

 

 

Bills Receivable

60,000

 

 

Bank

35,000

 

 

Cash

20,000

 

 

Prepaid Insurance

2,000

 

5,74,000

 

5,74,000

 

 

 

 

 



Page No 19.66:

Answer:

Financial Statements of Shri Sunder Lal

Trading Account

for the year ended March 31, 2016

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, 2016

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, 2016

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

 

 

 

 

 

Page No 19.66:

Answer:

Financial Statements of Ram

Trading Account

for the year ended March 31, 2016

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, 2016

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, 2016

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

 

 

 

 

             

 



Page No 19.67:

Answer:

Financial Statements of Mr. S. Kapur

Trading Account 

for the year ended March 31, 2016

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, 2016

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Depreciation:

 

Gross Profit

8,74,300

 Machinery

40,000

 

 

 

Patents

30,000

70,000

 

 

Salaries

3,00,000

 

 

 

  Add: Outstanding Salaries

30,000

3,30,000

 

 

Insurance

12,000

 

 

 

  Less: Prepaid Insurance

1,700

10,300

 

 

Provision for Doubtful Debts

14,500

 

 

Carriage Outwards

64,000

 

 

Advertisement Expenses

60,000

 

 

Net Profit (Balancing Figure)

3,25,500

 

 

 

8,74,300

 

8,74,300

 

 

 

 

 

Balance Sheet
as on March 31, 2016

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

Capital

16,00,000

 

Fixed Assets

 

Add: Net Profit

3,25,500

 

Machinery

4,00,000

 

Less: Drawings

1,04,900

18,20,600

  Less: Depreciation @ 10%

40,000

3,60,000

Current Liabilities

 

Patents

1,50,000

 

Sundry Creditors

1,26,000

  Less: Depreciation @ 20%

30,000

1,20,000

Outstanding Salary

30,000

Building

6,00,000

 

 

 

  Add: Erection of Scooter Shed

40,000

6,40,000

 

 

Computer

2,00,000

 

 

Current Assets

 

 

 

Closing Stock

1,36,000

 

 

Prepaid Insurance

1,700

 

 

Sundry Debtors

2,90,000

 

 

 

  Less: Provision @5%

14,500

2,75,500

 

 

Cash at Bank

2,32,600

 

 

Cash in Hand

10,800

 

19,76,600

 

19,76,600

 

 

 

 

 



Page No 19.68:

Answer:

Financial Statements

Trading Account

for the year ended March 31, 2016

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, 2016

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, 2016

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.

Page No 19.68:

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

 

Discount on Creditors

500

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)

7,435