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Page No 19.60:

Question 1:

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:

Question 2:

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

 

 

 

 

 

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:

Question 3:

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

 

 

 

 

 

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:

Question 4:

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

 

 

 

 

 

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:

Question 5:

 

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

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:

Question 6:

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

 

 

 

 

 

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:

Question 7:

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

 

 

 

 

 

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:

Question 8:

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

 

 

 

 

 

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:

Question 9:

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, 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:

Question 10:

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

 

 

 

 

 

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:

Question 11:

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

 

 

 

 

 

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:

Question 12:

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

 

 

 

 

 

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:

Question 13:

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

 

 

 

 

 

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:

Question 14:

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

 

 

 

 

             

 

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:

Question 15:

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

 

 

 

 

 

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:

Question 16:

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.

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

 

 

 

41,500

 

41,500

 

 

 

 

           

 

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

1,45,600

 

Building

67,000

Add: Net Profit

7,435

1,53,035

Machinery

52,000

 

Secured Loan

15,000

Less: 10% Depreciation

(5,200)

46,800

Sundry Creditors

20,000

 

Furniture

3,350

Less: Discount on Creditors

500

19,500

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

 

 

 

 

 



Page No 19.69:

Question 17:

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

 

 

 

41,500

 

41,500

 

 

 

 

           

 

Balance Sheet

as on March 31, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

1,45,600

 

Building

67,000

Add: Net Profit

7,435

1,53,035

Machinery

52,000

 

Secured Loan

15,000

Less: 10% Depreciation

(5,200)

46,800

Sundry Creditors

20,000

 

Furniture

3,350

Less: Discount on Creditors

500

19,500

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, 2016

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, 2016

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, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital

2,10,000

 

Fixed Assets

 

Add: Net Profit

58,065

2,68,065

Plant and Machinery

1,60,000

 

Bank Loan

2,00,000

 

Less: 10% Depreciation

(16,000)

1,44,000

Add: Interest Outstanding

10,000

2,10,000

Motor Van

2,20,000

 

Current Liabilities

 

Less: 10% Depreciation

(22,000)

1,98,000

Creditors

27,500

Computer

37,000

 

 

 

Less: 20% Depreciation

(7,400)

29,600

 

 

Current Assets

 

 

 

Closing Stock

15,600

 

 

Debtors

65,300

 

 

 

Less: Provision for Doubtful Debts

(3,265)

62,035

 

 

Cash at Bank

50,000

 

 

Cash in Hand

6,330

 

5,05,565

 

5,05,565

 

 

 

 

Working Note:

Calculation of Interest Outstanding on Loan

Amount of Bank Loan = 2,00,000

Interest on Loan (2,00,000 × 10%)

 20,000

Less: Interest Paid

(10,000)

Interest Outstanding

 10,000

 



Page No 19.70:

Question 18:

Financial Statements for Mr. G. Vishwanath

Trading Account

for the year ended March 31, 2016

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, 2016

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, 2016

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 Statements of Mr. Prem Prakash

Trading Account

for the year ended March 31, 2016

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, 2016

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, 2016

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

 

 

 

 

 



Page No 19.71:

Question 19:

Financial Statements of Mr. Prem Prakash

Trading Account

for the year ended March 31, 2016

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, 2016

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, 2016

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

 

 

 

 

 

Answer:

Financial Statement of Shri Santosh Kumar

Trading Account

for the year ended March 31, 2016

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, 2016

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, 2016

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

 

 

 

 

 

Page No 19.71:

Question 20:

Financial Statement of Shri Santosh Kumar

Trading Account

for the year ended March 31, 2016

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, 2016

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, 2016

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, 2016

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, 2016

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, 2016

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 1st April, 2016 which is subsequent to period for which above final accounts are prepared.



Page No 19.72:

Question 21:

Financial Statements

Trading Account

for the year ended March 31, 2016

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, 2016

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, 2016

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 1st April, 2016 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, 2016

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, 2016

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, 2016

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=3,000×10100×412=Rs 100



Page No 19.73:

Question 22:

Financial Statements of M/s. Taj & Co.

Trading Account

for the year ended March 31, 2016

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, 2016

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, 2016

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=3,000×10100×412=Rs 100

Answer:

Financial Statement of Mr. Gaurav

Trading Account 

for the year ended March 31, 2016

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, 2016

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, 2016

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



Page No 19.74:

Question 23:

Financial Statement of Mr. Gaurav

Trading Account 

for the year ended March 31, 2016

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, 2016

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, 2016

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 M/s Radha Krishna and Co.

Trading Account 

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

85,000

Sales

8,05,000

 

Purchases

4,57,500

 

Less: Return Inwards

 

8,05,000

Less: Return Outward

5,000

4,52,500

Closing Stock

1,27,500

Carriage Inwards

3,500

 

 

Wages

33,500

 

 

Dock Charges

27,000

 

 

Customs Duty

23,000

 

 

Gross Profit (Balancing Figure)

3,08,000

 

 

 

9,32,500

 

9,32,500

 

 

 

 

 

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

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Depreciation on Furniture and Fittings

2,550

Gross Profit

3,08,000

Depreciation on Plant & Machinery

10,000

 

 

Depreciation on Building

11,500

 

 

Salaries

64,000

 

 

Insurance

4,500

 

 

Old Bad Debts

10,000

 

 

 

  Add: New Bad Debts

 

 

 

 

  Add: New Provision

16,000

 

 

 

  Less: Old Provision

5,000

21,000

 

 

Outstanding Interest on Loan

30,000

 

 

Rent

24,000

 

 

Discount

2,500

 

 

General Expenses

3,500

 

 

Rates & Taxes

14,500

 

 

Repairs

7,000

 

 

Net Profit (Balancing Figure)

1,12,950

 

 

 

3,08,000

 

3,08,000

 

 

 

 

 

Balance Sheet 

as on March 31, 2016

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

Capital

5,00,000

 

Fixed Assets

 

Add: Net Profit

1,12,950

6,12,950

Furniture and Fittings

25,500

 

Loan on Mortgage

2,50,000

  Less: Depreciation @10%

2,550

22,950

Current Liabilities

 

Plant & Machinery

2,00,000

 

Sundry Creditors

1,95,000

  Less: Depreciation @5%

10,000

1,90,000

Bills Payable

40,000

Building

4,60,000

 

Outstanding Interest on Loan

30,000

  Less: Depreciation @2.5%

11,500

4,48,500

 

 

Current Assets

 

 

 

Closing Stock

1,27,500

 

 

Sundry Debtors

3,20,000

 

 

 

  Less: Provision for Doubtful Debts @ 5%

16,000

3,04,000

 

 

Bills Receivable

35,000

 

 

 

 

 

11,27,950

 

11,27,950

 

 

 

 

 

Page No 19.74:

Question 24:

Financial Statements of M/s Radha Krishna and Co.

Trading Account 

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

85,000

Sales

8,05,000

 

Purchases

4,57,500

 

Less: Return Inwards

 

8,05,000

Less: Return Outward

5,000

4,52,500

Closing Stock

1,27,500

Carriage Inwards

3,500

 

 

Wages

33,500

 

 

Dock Charges

27,000

 

 

Customs Duty

23,000

 

 

Gross Profit (Balancing Figure)

3,08,000

 

 

 

9,32,500

 

9,32,500

 

 

 

 

 

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

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Depreciation on Furniture and Fittings

2,550

Gross Profit

3,08,000

Depreciation on Plant & Machinery

10,000

 

 

Depreciation on Building

11,500

 

 

Salaries

64,000

 

 

Insurance

4,500

 

 

Old Bad Debts

10,000

 

 

 

  Add: New Bad Debts

 

 

 

 

  Add: New Provision

16,000

 

 

 

  Less: Old Provision

5,000

21,000

 

 

Outstanding Interest on Loan

30,000

 

 

Rent

24,000

 

 

Discount

2,500

 

 

General Expenses

3,500

 

 

Rates & Taxes

14,500

 

 

Repairs

7,000

 

 

Net Profit (Balancing Figure)

1,12,950

 

 

 

3,08,000

 

3,08,000

 

 

 

 

 

Balance Sheet 

as on March 31, 2016

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

Capital

5,00,000

 

Fixed Assets

 

Add: Net Profit

1,12,950

6,12,950

Furniture and Fittings

25,500

 

Loan on Mortgage

2,50,000

  Less: Depreciation @10%

2,550

22,950

Current Liabilities

 

Plant & Machinery

2,00,000

 

Sundry Creditors

1,95,000

  Less: Depreciation @5%

10,000

1,90,000

Bills Payable

40,000

Building

4,60,000

 

Outstanding Interest on Loan

30,000

  Less: Depreciation @2.5%

11,500

4,48,500

 

 

Current Assets

 

 

 

Closing Stock

1,27,500

 

 

Sundry Debtors

3,20,000

 

 

 

  Less: Provision for Doubtful Debts @ 5%

16,000

3,04,000

 

 

Bills Receivable

35,000

 

 

 

 

 

11,27,950

 

11,27,950

 

 

 

 

 

Answer:

Financial Statements of Mr. Rustomji

Trading Account 

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

54,700

Sales

3,70,000

Purchases

3,14,000

Closing Stock

30,000

Wages

20,000

 

 

 

   Add: Outstanding Wages

900

20,900

 

 

Carriage Inwards

2,240

 

 

Gross Profit (Balancing Figure)

8,160

 

 

 

4,00,000

 

4,00,000

 

 

 

 

 

Profit and Loss Account 

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Depreciation on:

 

Gross Profit

8,160

Loose Tools

400

 

Provision for Doubtful Debts (WN2)

1,480

Building

1,500

 

Bank Interest

150

Motor Van

10,000

11,900

Accrued Dividend

270

Insurance

1,700

 

Discount Received

1,070

    Less: Prepaid Insurance

200

1,500

Net Loss (Balancing Figure)

8,010

Outstanding Interest on Loan

500

 

 

Sundry Expenses

3,980

 

 

Discount Allowed

1,260

 

 

 

19,140

 

19,140

 

 

 

 

 

Balance Sheet 

as on March 31, 2016

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

Capital

94,780

 

Fixed Assets

 

Less: Net Loss

8,010

 

Loose Tools

2,000

 

Less: Drawings

4,000

 

 Less: Depreciation @

400

1,600

Less: Income Tax

2,050

80,720

Motor Van

25,000

 

Loan from Mohan

5,000

  Less: Depreciation @40%

10,000

15,000

Current Liabilities

 

Building

30,000

 

Sundry Creditors

38,000

  Less: Depreciation @5%

1,500

28,500

Bills Payable

20,000

Investments

13,000

Outstanding Interest on Loan

500

Furniture

6,000

Outstanding Wages

900

Current Assets

 

 

 

Closing Stock

30,000

 

 

Sundry Debtors

19,000

 

 

 

  Less: Further Bad Debts

600

 

 

 

  Less: New Provision @5%

920

17,480

 

 

Accrued Dividend

270

 

 

Prepaid Insurance

200

 

 

Cash at Bank

32,400

 

 

Cash in Hand

670

 

1,45,120

 

1,45,120

 

 

 

 

 

Working Notes:

WN1: Calculation of Amount of Debtors

Total Amount of Debtors = Rs 19,000

Less: Further Bad Debts   =  Rs 600

Amount on which provision is to be maintained = Rs 18,400 (19,000 - 600)

 

WN2: Calculation of New Provision for Doubtful Debts

Particulars

Amount

(Rs)

Old Bad Debts

200

Add: Further Bad Debts

600

Add: New Provision for Doubtful Debts

920

Less: Old Provision for Doubtful Debts

3,200

Net Amount

(1,480)

 

 

 



Page No 19.75:

Question 25:

Financial Statements of Mr. Rustomji

Trading Account 

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

54,700

Sales

3,70,000

Purchases

3,14,000

Closing Stock

30,000

Wages

20,000

 

 

 

   Add: Outstanding Wages

900

20,900

 

 

Carriage Inwards

2,240

 

 

Gross Profit (Balancing Figure)

8,160

 

 

 

4,00,000

 

4,00,000

 

 

 

 

 

Profit and Loss Account 

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Depreciation on:

 

Gross Profit

8,160

Loose Tools

400

 

Provision for Doubtful Debts (WN2)

1,480

Building

1,500

 

Bank Interest

150

Motor Van

10,000

11,900

Accrued Dividend

270

Insurance

1,700

 

Discount Received

1,070

    Less: Prepaid Insurance

200

1,500

Net Loss (Balancing Figure)

8,010

Outstanding Interest on Loan

500

 

 

Sundry Expenses

3,980

 

 

Discount Allowed

1,260

 

 

 

19,140

 

19,140

 

 

 

 

 

Balance Sheet 

as on March 31, 2016

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

Capital

94,780

 

Fixed Assets

 

Less: Net Loss

8,010

 

Loose Tools

2,000

 

Less: Drawings

4,000

 

 Less: Depreciation @

400

1,600

Less: Income Tax

2,050

80,720

Motor Van

25,000

 

Loan from Mohan

5,000

  Less: Depreciation @40%

10,000

15,000

Current Liabilities

 

Building

30,000

 

Sundry Creditors

38,000

  Less: Depreciation @5%

1,500

28,500

Bills Payable

20,000

Investments

13,000

Outstanding Interest on Loan

500

Furniture

6,000

Outstanding Wages

900

Current Assets

 

 

 

Closing Stock

30,000

 

 

Sundry Debtors

19,000

 

 

 

  Less: Further Bad Debts

600

 

 

 

  Less: New Provision @5%

920

17,480

 

 

Accrued Dividend

270

 

 

Prepaid Insurance

200

 

 

Cash at Bank

32,400

 

 

Cash in Hand

670

 

1,45,120

 

1,45,120

 

 

 

 

 

Working Notes:

WN1: Calculation of Amount of Debtors

Total Amount of Debtors = Rs 19,000

Less: Further Bad Debts   =  Rs 600

Amount on which provision is to be maintained = Rs 18,400 (19,000 - 600)

 

WN2: Calculation of New Provision for Doubtful Debts

Particulars

Amount

(Rs)

Old Bad Debts

200

Add: Further Bad Debts

600

Add: New Provision for Doubtful Debts

920

Less: Old Provision for Doubtful Debts

3,200

Net Amount

(1,480)

 

 

 

Answer:

Financial Statements of Shri Bansi Lal

Trading Account

for the year ended March 31, 2016

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, 2016

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, 2016

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.



Page No 19.76:

Question 26:

Financial Statements of Shri Bansi Lal

Trading Account

for the year ended March 31, 2016

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, 2016

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, 2016

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, 2016

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, 2016

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, 2016

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

 

 

 

 

 

Page No 19.76:

Question 27:

Financial Statements of Mr. Bharat

Trading Account

for the year ended March 31, 2016

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, 2016

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, 2016

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 Shri Paras

Trading Account 

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

57,600

Sales

10,00,000

 

Purchases

4,06,750

 

Less: Returns Inward

19,000

9,81,000

Less: Returns Outward

5,000

4,01,750

Closing Stock

68,000

Freight on Purchases

20,400

 

 

Wages

1,04,800

 

 

 

  Less: Wrongly included

20,000

84,800

 

 

Fuel and Power

47,300

 

 

Gross Profit (Balancing Figure)

4,37,150

 

 

 

10,49,000

 

10,49,000

 

 

 

 

 

Profit and Loss Account 

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Provision for Doubtful Debts

7,250

Gross Profit

4,37,150

Depreciation on:

 

 

 

Machinery

20,000

 

 

 

Patents

15,000

 

 

 

Building

16,000

51,000

 

 

Salaries

1,50,000

 

 

 

  Add: Outstanding Salaries

30,000

1,80,000

 

 

Insurance

6,000

 

 

 

  Less: Prepaid Insurance

850

5,150

 

 

Rent

10,000

 

 

General Expenses

20,000

 

 

Carriage on Sales

32,000

 

 

Manager’s Commission

11,977

 

 

Net Profit (Balancing Figure)

1,19,773

 

 

 

4,37,150

 

4,37,150

 

 

 

 

 

Balance Sheet 

as on March 31, 2016

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

Capital

7,10,000

 

Fixed Assets

 

Add: Net Profit

1,19,773

 

Machinery

2,00,000

 

Less: Drawings

52,450

7,77,323

  Less:  Depreciation @10%

20,000

1,80,000

Current Liabilities

 

Patents and Patterns

75,000

 

Sundry Creditors

63,000

  Less: Depreciation @20%

15,000

60,000

O/s Manager’s Commission

11,977

Building

3,00,000

 

Outstanding Salaries

30,000

  Add: Cycle shed

20,000

 

 

 

  Less: Depreciation @5%

16,000

3,04,000

 

 

Free hold Land

1,00,000

 

 

Current Assets

 

 

 

Closing Stock

68,000

 

 

Prepaid Insurance

850

 

 

Sundry Debtors

1,45,000

 

 

 

  Less: Provision@5%

7,250

1,37,750

 

 

Cash at Bank

26,300

 

 

Cash in Hand

5,400

 

8,82,300

 

8,82,300

 

 

 

 

 

 



Page No 19.77:

Question 28:

Financial Statements of Shri Paras

Trading Account 

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

57,600

Sales

10,00,000

 

Purchases

4,06,750

 

Less: Returns Inward

19,000

9,81,000

Less: Returns Outward

5,000

4,01,750

Closing Stock

68,000

Freight on Purchases

20,400

 

 

Wages

1,04,800

 

 

 

  Less: Wrongly included

20,000

84,800

 

 

Fuel and Power

47,300

 

 

Gross Profit (Balancing Figure)

4,37,150

 

 

 

10,49,000

 

10,49,000

 

 

 

 

 

Profit and Loss Account 

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Provision for Doubtful Debts

7,250

Gross Profit

4,37,150

Depreciation on:

 

 

 

Machinery

20,000

 

 

 

Patents

15,000

 

 

 

Building

16,000

51,000

 

 

Salaries

1,50,000

 

 

 

  Add: Outstanding Salaries

30,000

1,80,000

 

 

Insurance

6,000

 

 

 

  Less: Prepaid Insurance

850

5,150

 

 

Rent

10,000

 

 

General Expenses

20,000

 

 

Carriage on Sales

32,000

 

 

Manager’s Commission

11,977

 

 

Net Profit (Balancing Figure)

1,19,773

 

 

 

4,37,150

 

4,37,150

 

 

 

 

 

Balance Sheet 

as on March 31, 2016

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

Capital

7,10,000

 

Fixed Assets

 

Add: Net Profit

1,19,773

 

Machinery

2,00,000

 

Less: Drawings

52,450

7,77,323

  Less:  Depreciation @10%

20,000

1,80,000

Current Liabilities

 

Patents and Patterns

75,000

 

Sundry Creditors

63,000

  Less: Depreciation @20%

15,000

60,000

O/s Manager’s Commission

11,977

Building

3,00,000

 

Outstanding Salaries

30,000

  Add: Cycle shed

20,000

 

 

 

  Less: Depreciation @5%

16,000

3,04,000

 

 

Free hold Land

1,00,000

 

 

Current Assets

 

 

 

Closing Stock

68,000

 

 

Prepaid Insurance

850

 

 

Sundry Debtors

1,45,000

 

 

 

  Less: Provision@5%

7,250

1,37,750

 

 

Cash at Bank

26,300

 

 

Cash in Hand

5,400

 

8,82,300

 

8,82,300

 

 

 

 

 

 

Answer:

Financial Statement of Mr. Shanmuganathan

Trading Account 

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

26,725

Sales

2,52,400

 

Purchases

1,60,000

 

Less: Return Inwards

 

2,52,400

Less: Loss by Fire

1,500

1,58,500

Closing Stock

12,550

Carriage Inwards

2,505

 

 

Manufacturing 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, 2016

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Depreciation on Furniture

725

Gross Profit

52,733

Loss by Fire

500

Provision for Doubtful Debts

1,690

Advertisement

3,000

Accrued Interest on Loan

150

Salaries

5,575

 

 

Postage

1,226

 

 

Trade Expenses

5,831

 

 

Net Profit (Balancing Figure)

37,716

 

 

 

54,573

 

54,573

 

 

 

 

 

Balance Sheet 

as on March 31, 2016

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

Capital

50,000

 

Fixed Assets

 

Add: Net Profit

37,716

 

Furniture

7,250

 

Less: Drawings

4,452

83,264

Less: Depreciation @10%

725

6,525

 

 

Loan to Subbu

3,000

 

 

Accrued Interest on Loan

150

Current Liabilities

 

Current Assets

 

Sundry Creditors

30,526

Closing Stock

12,550

Bills Payable

3,950

Sundry Debtors

50,200

 

 

 

   Less: Further Bad Debts

500

 

Outstanding Wages

2,000

  Less: Provision for Doubtful Debts @ 5%

2,485

47,215

Outstanding Trade Expenses

700

Insurance Claim

1,000

 

 

Cash in Hand and at Bank

50,000

 

1,20,440

 

1,20,440

 

 

 

 

 

Working Notes:

WN1: Calculation of Amount of Debtors

Total Amount of Debtors = Rs 50,200

Less: Further Bad Debts   =   Rs 500

Amount on which provision is to be maintained = Rs 49,700

 

WN2: Calculation of New Provision for Doubtful Debts

Particulars

Amount

(Rs)

Old Bad Debts

525

Add: Further Bad Debts

500

Add: New Provision for Doubtful Debts

2,485

Less: Old Provision for Doubtful Debts

5,200

Net Amount

(1,690)

 

 

 



Page No 19.78:

Question 29:

Financial Statement of Mr. Shanmuganathan

Trading Account 

for the year ended March 31, 2016

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

26,725

Sales

2,52,400

 

Purchases

1,60,000

 

Less: Return Inwards

 

2,52,400

Less: Loss by Fire

1,500

1,58,500

Closing Stock

12,550

Carriage Inwards

2,505

 

 

Manufacturing 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, 2016

Dr.

 

Cr.

Particulars 

Amount

(Rs)

Particulars

Amount

(Rs)

Depreciation on Furniture

725

Gross Profit

52,733

Loss by Fire

500

Provision for Doubtful Debts

1,690

Advertisement

3,000

Accrued Interest on Loan

150

Salaries

5,575

 

 

Postage

1,226

 

 

Trade Expenses

5,831

 

 

Net Profit (Balancing Figure)

37,716

 

 

 

54,573

 

54,573

 

 

 

 

 

Balance Sheet 

as on March 31, 2016

Liabilities 

Amount

(Rs)

Assets 

Amount

(Rs)

Capital

50,000

 

Fixed Assets

 

Add: Net Profit

37,716

 

Furniture

7,250

 

Less: Drawings

4,452

83,264

Less: Depreciation @10%

725

6,525

 

 

Loan to Subbu

3,000

 

 

Accrued Interest on Loan

150

Current Liabilities

 

Current Assets

 

Sundry Creditors

30,526

Closing Stock

12,550

Bills Payable

3,950

Sundry Debtors

50,200

 

 

 

   Less: Further Bad Debts

500

 

Outstanding Wages

2,000

  Less: Provision for Doubtful Debts @ 5%

2,485

47,215

Outstanding Trade Expenses

700

Insurance Claim

1,000

 

 

Cash in Hand and at Bank

50,000

 

1,20,440

 

1,20,440

 

 

 

 

 

Working Notes:

WN1: Calculation of Amount of Debtors

Total Amount of Debtors = Rs 50,200

Less: Further Bad Debts   =   Rs 500

Amount on which provision is to be maintained = Rs 49,700

 

WN2: Calculation of New Provision for Doubtful Debts

Particulars

Amount

(Rs)

Old Bad Debts

525

Add: Further Bad Debts

500

Add: New Provision for Doubtful Debts

2,485

Less: Old Provision for Doubtful Debts

5,200

Net Amount

(1,690)

 

 

 

Answer:

Financial Statements of Atam Prakash

Trading Account

for the year ended March 31, 2016

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 Octroi

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, 2016

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Trade Expenses

5,000

Gross Profit

5,34,000

Salaries

55,000

 

Commission

13,000

 

Add: O/s Salaries (55,000 × 1/11)

 5,000

  60,000

Add: Accrued Commission

  1,220

14,220

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

 

 

 

 

28,000

 

 

 

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

 

 

 

 

 

Working Note:

Balance Sheet

as on March 31, 2016

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

1,220

 

 

Deferred Advertisement Expenses   

37,500

 

13,57,720

 

 13,57,720

 

 

 

 

 



Page No 19.79:

Question 30:

Financial Statements of Atam Prakash

Trading Account

for the year ended March 31, 2016

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 Octroi

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, 2016

Dr.

 

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Trade Expenses

5,000

Gross Profit

5,34,000

Salaries

55,000

 

Commission

13,000

 

Add: O/s Salaries (55,000 × 1/11)

 5,000

  60,000

Add: Accrued Commission

  1,220

14,220

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

 

 

 

 

28,000

 

 

 

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

 

 

 

 

 

Working Note:

Balance Sheet

as on March 31, 2016

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

1,220

 

 

Deferred Advertisement Expenses   

37,500

 

13,57,720

 

 13,57,720

 

 

 

 

 

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



Page No 19.80:

Question 31:

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, 2016

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, 2016

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, 2016

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

Page No 19.80:

Question 32:

Financial Statements of K

Trading Account 

for the year ended March 31, 2016

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, 2016

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, 2016

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, 2016

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, 2016

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, 2016

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. 

 



Page No 19.81:

Question 33:

Financial Statement of Banerjee

Trading Account 

for the year ended March 31, 2016

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, 2016

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, 2016

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, 2016

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, 2016

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)

 

 

 

 



Page No 19.82:

Question 34:

Profit and Loss Account 

for the year ended March 31, 2016

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, 2016

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, 2016

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, 2016

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, 2016

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)

 

 

 



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