NCERT Solutions for Class 11-commerce Accountancy Part II CBSE Chapter 10: Financial Statements

Financial Statements Exercise 411

Solution NUM 1

Books of M/s. Rahul Sons. Trading A/c for the year ending 31^st March 2017
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock		50,000	By Sales	1,80,000
To Purchases	1,75,000		Less: Sales Returns	(3,000)	1,77,000
Less: Purchase Returns	(2,000)	1,73,000	By Closing Stock		32,000
To Wages		3,000	By Gross Loss c/d		17,000


		2,26,000			2,26,000

Profit and Loss A/c for the year ending 31^st March 2017
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Gross Loss b/d		17,000	By Discount Received		500
To Salary	8,000		By Commission Received	4,000
Add: Outstanding Salary	1,000	9,000	Less: Advance Commission	(1,000)	3,000
To Discount Allowed		1,000
To Insurance	3,200		By Rent	6,000
Less: Insurance Prepaid	(800)	2,400	Add: Rent Receivable	2,000	8,000
To Rent Rates and Taxes		4,300	By Net Loss c/d		43,189
To Trade Expenses		1,500
To Bad-Debts	2,000
Add: Further Bad-Debts	1,000
Add: New Provision	4,050
Less: Old Provision	(2,500)	4,550
To Discount on Debtors		1,539
To Postage		300
To Telegram Expenses		200
To Depreciation on Building		6,600
To Repair and Renewals		1,600
To Travelling Expenses		4,200
To Legal Fees		500
		54,689			54,689

Balance Sheet As on 31^st March 2017
Liabilities		Rs.	Assets		Rs.
Capital	3,00,000		Debtors	82,000
Less: Net loss	(43,189)		Less: Further Bad-debts	(1,000)
Less: Drawings	(32,000)	2,24,811	Less: New Provision	(4,050)
Bills payable		22,000	Less: Discount on Debtors	(1,539)	75,411
Loan		34,800	Bills Receivable		50,000
Advance Commission		1,000	Buildings	1,10,000
Outstanding Salary		1,000	Less: 6% Depreciation	(6,600)	1,03,400
			Rent Receivable		2,000
			Prepaid insurance		800
			Closing Stock		32,000
			Furniture and fittings		20,000
		2,83,611			2,83,611

Financial Statements Exercise 412

Solution NUM 2

M/s Green Club Ltd. Trading A/c for the year ending 31^st March 2017
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock		35,000	By Sales	2,50,000
To Purchases	1,25,000		Less: Sales Returns	(25,000)	2,25,000
Less: Purchase Returns	(6,000)	1,19,000	By Closing Stock		10,000
To Wages	3,000
Less: Prepaid Wages	(1,000)	2,000
To Gross Profit c/d		79,000

		2,35,000			2,35,000

Profit and Loss A/c for the year ending 31^st March 2017
Dr.				Cr.
Particulars		Rs.	Particulars	Rs.
To Bad Debts	3,500		By Gross Profit b/d	79,000
Add: Further Bad-debts	1,500		By Interest on Accrued Investment	1,155
Add: New Provision	2,910		By Discount	1,000
Less: Old Provision	(4,500)	3,410	By Interest Received	5,400
To Discount on Debtors		2,280
To Postage and Telegram		600
To Salary		12,300
To Rent and Rates		1,000
To Packing and Transport		500
To General Expenses		400
To Insurance		4,000
To Discount		3,500
To Depreciation on Machinery		1,000
To Lighting and Heating		5,000
To Net Profit c/d		52,565

		86,555		86,555

Balance Sheet as on 31^st March 2017
Liabilities		Rs.	Assets		Rs.
Creditors		10,000	Cash in hand		20,000
Bills Payable		20,000	Cash at bank		40,000
Capital	75,000
Add: Net profit	52,565	1,27,565	Debtors	50,000
			Less: Further Bad-Debts	(1,500)
			Less: New provision	(2,910)
			Less: Discount on Debtors	(2,280)	43,310

			Investment	23,100
			Add: Interest on Investment	1,155	24,255

			Machinery	20,000
			Less: Depreciation	(1,000)	19,000
			Prepaid Wages		1,000
			Closing Stock		10,000


		1,57,565			1,57,565

Financial Statements Exercise 413

Solution NUM 3

M/s Runway Shine Ltd. Trading A/c for the year ending 31^st March 2017
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock		50,000	By Sales	2,50,000
To Purchases	1,50,000		Less: Return Inwards	(2,000)	2,48,000
Less: Return Outwards	(4,500)	1,45,500	By Closing Stock		32,500
To Carriage Inwards		4,500
To Wages	2,400
Add: Outstanding Wages	100	2,500
To Gross Profit c/d		78,000


		2,80,500			2,80,500

Profit and Loss A/c for the year ending 31^st March 2017
Dr.				Cr.
Particulars		Rs.	Particulars	Rs.
To Carriage Outward		400	By Gross Profit b/d	78,000
To Printing and Stationery		4,500	By Interest Received	3,500
To Discount		400	By Discount Received	400
To Bad Debts	1,500		By Interest Received on Investment	1,600
Add: Further Bad Debts	1,000
Add: New Provision	2,600	5,100
To Discount on Debtors		500
To Insurance		2,500
To Postage and telegraphs		400
To Commission		200
To Interest	1,000
Add: outstanding Interest	200	1,200
To Repair		440
To Lighting Charges		500
To Telephone Charges		100
To Depreciation on motor car		1,250
To Net profit c/d		66,010

		83,500		83,500

Balance Sheet as on 31^st March 2017
Liabilities		Rs.	Assets		Rs.
Capital	1,00,000		Cash in Hand	77,800
Add: Net profit	66,010	1,66,010	Add: Interest Received	1,600	79,400
Creditors		1,25,000	Cash at Bank		60,800
Bills payable		6,040	Investment		32,000
Outstanding interest		100	Debtors	53,000
Outstanding Wages		200	Less: Further bad debts	(1,000)
			Less: New Provision	(2,600)
			Less: Discount on Debtors	(500)	48,900

			Motor Car	25,000
			Less: Depreciation	(1,250)	23,750
			Bills receivable		20,000
			Closing Stock		32,500
		2,97,350			2,97,350

Financial Statements Exercise 414

Solution NUM 4

Trading A/c for the year ending 31^st March 2017
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock		50,000	By Sales	3,50,000
To Purchases	1,25,500		Less: Return	(2,000)	3,48,000
Less: Return Outwards	(2,500)	1,23,000	By Closing Stock		40,000
To Carriage		100
To Power		3,900
To Gross Profit c/d		2,11,000

		3,88,000			3,88,000

Profit and Loss A/c for the year ending 31^st March 2017
Dr.				Cr.
Particulars		Rs.	Particulars	Rs.
To General Expenses		2,000	By Gross Profit b/d	2,11,000
To Insurance		12,400	By Rent	5,000
To Bad Debts	2,000		By Interest	2,000
Add: Provision for Bad Debts	1,625	3,625	By Accrued Interest on Loan	150
To Light and Water		1,200
To Trade Expenses	2,000
Add: Outstanding Trade Expenses	300	2,300
To Salary and Wages	5,400
Add: Outstanding Salary	500	5,900
To Depreciation on Building		3,440
To Depreciation on Machinery		1,725
To Net profit c/d		1,85,560
		2,18,150		2,18,150

Balance Sheet as on 31^st March 2017
Liabilities		Rs.	Assets		Rs.
Capital	3,00,000		Cash in Hand		21,200
Add: Net Profit	1,85,560		Cash at Bank		12,000
Less: Drawings	(10,000)	4,75,560	Freehold Land		3,20,000
			Patents		1,20,000
Creditors		25,000	Sundry Debtors	32,500
Bills payable		1,71,700	Less: Provision for bad debts	(1,625)	30,875
Outstanding Trade Expenses		300
Outstanding Salary		500	Building	86,000
			Less: Depreciation	(3,440)	82,560
			Machinery	34,500
			Less: Depreciation	(1,725)	32,775
			Motor vehicle		10,500
			Loan	3,000
			Add: Interest on Loan	150	3,150
			Closing Stock		40,000
		6,73,060			6,73,060
-

Working Note:

Calculation the Outstanding interest on loan

Loan = 3,000

Interest = 15%

Months (1/9/2016 to 31/12/2016) = 4 months

Financial Statements Exercise 415

Solution NUM 5

Trading A/c for the year ending 31^st March 2017
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock		25,000	By Sales	2,76,000
To Purchases	1,80,000		Less: Return Inwards	(7,000)	2,69,000
Less: Return Outwards	(2,000)	1,78,000	By Closing Stock		45,000
To Wages		10,000
To Freight		4,000
To Gross Profit c/d		97,000

		3,14,000			3,14,000

Profit and Loss A/c for the year ending 31^st March 2017
Dr.				Cr.
Particulars	Rs.	Particulars		Rs.
To Trade Expenses	2,400	By Gross Profit		97,000
To Printing and Stationery	2,000	By Old Provision for Bad Debts	4,000
To Rent Rates and Taxes	5,000	Less: Bad Debts	(1,000)
To Discount Allowed	2,000	Less: New Provision	(1,600)	1,400
To Depreciation on Motor Car	5,100
To Depreciation on Furniture and F.	1,000
To Depreciation on P and M (70,000)	4,200
To Depreciation on P and M (30,000)	900
To Net Profit Before Manager's Commission	75,800

	98,400			98,400

To Manager's Commission	6,891	By Balance b/d		75,800
To Net Profit After Commission	68,909

	75,800			75,800

Balance Sheet as on 31^st March 2017
Liabilities		Rs.	Assets		Rs.
Capital	2,00,000		Cash in Hand		6,000
Add: Net Profit	68,909		Sundry Debtors	80,000
Less: Drawings	(20,000)	2,48,909	Less: New Provision	(1,600)	78,400
O/S Manager's Commission		6,891
Bank Overdraft		12,000	Furniture and Fixtures	20,000
Creditors		60,000	Less: 5% Depreciation	(1,000)	19,000
Bills Payable		15,400
			Plant and Machinery	1,00,000
			Less: 6%Depreciation (WN 2)	(4,200)
			Less: 6%Depreciation (WN 2)	(900)	94,900
			Bills Receivable		14,000
			Investments		40,000
			Motor Car	51,000
			Less: 10% Depreciation	(5,100)	45,900
			Closing Stock		45,000

		3,43,200			3,43,200

Working Notes:

2.

Out of the machinery of Rs.1,00,000, Rs.30,000 worth of machinery purchased on 01/07/2011 . Therefore, the depreciation on this machinery will be for 6 months at 6% p.a.

Note: In the NCERT book, Gross Profit is given as Rs.1,01,000. But as per the solution Gross Profit is Rs.97,000.

Financial Statements Exercise 416

Solution NUM 6

Trading A/c
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock		75,550	By Sales	1,00,000
To Purchases	75,000		Less: Sales Inwards	(6,000)	94,000
Less: Return Outwards	(4,500)	70,500	By Closing Stock		35,000
To Freight		2,250	By Gross Loss c/d		19,300

		1,48,300			1,48,300

Profit and Loss A/c
Dr.				Cr.
Particulars		Rs.	Particulars	Rs.
To Gross Loss b/d		19,300	By Discount	3,500
To Bad Debts	3,000		By Interest Received	11,260
Add: Further Bad-Debts	1,000		By Interest on Drawings	814
Add: New Provision	4,950		By Net Loss c/d	27,482
Less: Old Provision	(1,500)	7,450
To Discount on Debtors		1,881
To Trade Expenses		2,500
To Printing and Stationery		5,000
To Rent, Rates and Taxes	3,450
Add: O/S Rent, Rates and Taxes	200	3,650
To Depreciation on Furniture		775
To Depreciation on Motor Car		2,500

		43,056		43,056

Balance Sheet
Liabilities		Rs.	Assets		Rs.
Bills Payable		85,550	Sundry Debtors	100,000
Sundry Creditors		25,000	Less: Further Debts	1,000
Capital	2,50,000		Less: New Provision	4,950
Less: Net Loss	(27,482)		Less: Discount on Debtors	1,881	92,169
Less: Drawings	(13,560)
Less: Interest on Drawings	(814)	2,08,144	Motor Car	25,000
			Less: 10% Depreciation	(2,500)	22,500
Outstanding Rent, Rates and Taxes		200
			Furniture and Fixtures	15,500
			Less: 5% Depreciation	(775)	14,725
			Investments		65,500
			Cash in Hand		36,000
			Cash at Bank		53,000
			Closing Stock		35,000


		3,18,894			3,18,894

Note: In the NCERT book, Gross Loss is given Rs.17,050 but as per the solution Gross Profit Total is Rs.19,300.

Financial Statements Exercise 417

Solution NUM 7

Trading A/c
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock		2,26,000	By Sales	6,80,000
To Purchases	4,40,000		Less: Sales Inwards	(10,000)	6,70,000
Less: Return Outwards	(15,000)	4,25,000	By Closing Stock		30,000
To Freight Inwards		3,400
To Heat and Power		8,000
To Gross Profit c/d		37,600

		7,00,000			7,00,000

Profit and Loss A/c
Dr.					Cr.
Particulars		Rs.	Particulars	Rs.
To Trade Expenses		3,300	By Gross Profit b/d	37,600
To Salary and Wages		5,000	By Interest Received	20,000
To Legal Expenses		3,000
To Postage and Telegram		1,000
To Bad Debts	6,500
Add: New Provision	1,250	7,750
To Depreciation on Building		5,000
To Depreciation on Motor Van		3,000
To Insurance	3,500
Less: Unexpired Insurance	(600)	2,900
To Net Profit c/d		26,650

		57,600		57,600

To Manager's Commission payable		1,269	By Balance b/d	26,650
To Net Profit after Commission		25,381

		26,650		26,650

Balance sheet
Liabilities		Rs.	Assets		Rs.
Capital	3,50,000		Cash in Hand		79,000
Add: Net profit	25,381		Cash at Bank		98,000
Less: Drawings	75,000	3,00,381	Buildings	1,00,000
Creditors		50,000	Less: Depreciation	5,000	95,000
Bills payable		63,700	Motor van	30,000
Manager's Commission Payable		1,269	Less: Depreciation	3,000	27,000
			Sundry Debtors	25,000
			Less: New provision	1,250	23,750
			Investments		40,000
			Machinery		22,000
			Unexpired Insurance		600
			Closing Stock		30,000


		4,15,350			4,15,350

Financial Statements Exercise 418

Solution NUM 8

Trading A/c
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock		76,800	By Sales	2,20,000
To Purchases	1,50,000		Less: Sales Return	(200)	2,19,800
Less: Purchases Return	(10,000)	1,40,000	By Closing Stock		20,000
To Carriage Inwards		100
To Wages	500
Less: Prepaid	(40)	460
To Coal, Gas and Water		1,200
To Gross Profit c/d		21,240

		2,39,800			2,39,800

Profit and Loss A/c
Dr.				Cr.
Particulars		Rs.	Particulars	Rs.
To Salary	2,000		By Gross Profit b/d	21,240
Add: Outstanding Salary	100	2,100	By Discount	1,260
To Bank Charges		200	By Apprentice Premium	5,230
To Trade Expenses		3,800
To Rates and Taxes		870
To Depreciation on Plant and M.		2,000
To Depreciation on Land and B.		1,200
To Provision for Doubtful Debts		2,715
To Discount on Debtors		1,548
To Net Profit c/d		13,297


		27,730		27,730

To Manager's Commission payable		633	By Balance b/d	13,297
To Net Profit after Commission		12,664

		13,297		13,297

Balance Sheet
Liabilities		Rs.	Assets		Rs.
Capital	1,01,110		Cash at Bank		50,000
Add: Net profit	12,664		Land and Buildings	12,000
Less: Drawings	(20,000)	93,774	Less: Depreciation	(1,200)	10,800
			Plant and machinery	40,000
Bills payable		1,28,870	Less: Depreciation	(2,000)	38,000
Outstanding Salary		100	Bills receivable		24,500
Outstanding Manager's Commission		633	Sundry Debtors	54,300
			Less: New provision	(2,715)
			Less: Discount on Debtors	(1,548)	50,037
			Cash in hand		30,000
			Closing Stock		20,000
			Prepaid Wages		40


		2,23,377			2,23,377

Financial Statements Exercise 419

Solution NUM 9

Trading A/c
Dr.				Cr.
Particulars		Rs.	Particulars	Rs.
To Opening Stock		22,800	By Sales	72,670
To Purchases	34,800		By Closing Stock	10,000
Less: Purchases Return	(2,430)	32,370
To Carriage Inwards		450
To Wages	1,770
Add: Outstanding Wages	500	2,270
To Factory Rent	390
Less: Prepaid Rent	(100)	290
To Gas and Water		240
To Octroi		60
To Cleaning Charges		940
To Gross Profit c/d		23,250
		82,670		82,670

Profit and Loss A/c
Dr.				Cr.
Particulars		Rs.	Particulars	Rs.
To Office Rent		820	By Gross Profit b/d	23,250
To Insurance	1,440
Add: Outstanding Insurance	100	1,540
To Depreciation on Plant and Machinery		180
To Salary	1,590
Add: Outstanding Salary	350	1,940
To Provision for Doubtful Debts		480
To Depreciation on Building		2,400
To Net Profit c/d		15,890
		23,250		23,250

Balance Sheet
Liabilities		Rs.	Assets		Rs.
Capital	42,000		Sundry Debtors	9,600
Add: Net profit	15,890	57,890	Less: New Provision	(480)	9,120

Sundry Creditors		2,500	Building	24,000
Bills payable		15,600	Less: Depreciation	(2,400)	21,600
Outstanding Salary		350
Outstanding Wages		500	Plant and machinery	3,600
Outstanding Insurance		100	Less: Depreciation	(180)	3420
			Cash in Hand		2,160
			Furniture		20,540
			Patents		10,000
			Closing Stock		10,000
			Prepaid Factory Rent		100
		76,940			76,940

Note: In the NCERT book, Net Profit is given as Rs.15,895 and Balance Sheet total is given as Rs.76,945. But as per the solution Net Profit is Rs.15,890 and total of Balance Sheet is Rs.76,940.

Financial Statements Exercise 420

Solution NUM 10

Trading A/c
Dr.				Cr.
Particulars		Rs.	Particulars	Rs.
To Opening Stock		45,000	By Sales	2,00,000
To Purchases	80,000		By Closing Stock	50,000
Less: Return Outwards	(4,000)	76,000

To Wages	34,000
Add: Wages Outstanding	50	34,050

To Gas and Fuel		2,700
To Freight and Carriage		3,500
To Factory Lighting		5,000
To Gross Profit b/d		83,750
		2,50,000		2,50,000

Profit and Loss A/c
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Legal Expenses	4,000	By Gross Profit b/d	83,750
To Office Expenses	3,000
To Depreciation on Machine	12,000
To Depreciation on Building	3,600
To Interest on Capital	8,400
To Net Profit c/d	52,750
	83,750		83,750

Balance Sheet
Liabilities		Rs.	Assets		Rs.
Capital	2,10,000		Bank Balance		11,000
Add: Interest on Capital	8,400		Debtors		70,300
Add: Net profit	52,750	2,71,150	Cash in Hand		1,200
			Building	60,000
Bills payable		6,500	Less: Depreciation	(3,600)	56,400
Creditors		50,000	Machinery	1,20,000
Outstanding Wages		50	Less: Depreciation	(12,000)	1,08,000

			Bills Receivable		7,000
			Patent Right		18,800
			Office Future		5,000
			Closing Stock		50,000
		3,27,700			3,27,700

Financial Statements Exercise 421

Solution NUM 11

Trading A/c
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock		10,000	By Sales	80,000
To Purchases	40,000		Less: Sales Return	200	79,800
Less: Purchases Return	600	39,400	By Closing Stock		2,000
To Wages		6,000
To Dock and Cleaning Charges		4,000
To Gross Profit c/d		22,400


		81,800			81,800

Profit and Loss A/c
Dr.					Cr.
Particulars	Rs.	Particulars		Rs.
To Lighting	500	By Gross Profit b/d		22,400
To Donations and Charity	600	By Miscellaneous Income		6,000
To Interest on Capital	2,000	By Rent	2,000
To Depreciation on Furniture	565	Less: Unearned Rent	100	1,900
To Depreciation on Land and Machinery	2,150	By Interest on Drawings		140
To Net Profit c/d	24,985	By Interest on Investment		360


	30,800			30,800

Balance Sheet
Liabilities		Rs.	Assets		Rs.
Capital	40,000		Debtors		6,000
Add: Interest on Capital	2,000		Cash		3,000
Add: Net profit	24,985
Less: Drawings	(2,000)		Investment	6,000
Less: Interest on drawings	(140)	64,845	Add: Interest on Investment	360	6,360
			Land and machinery	43,000
Creditors		7,000	Less: Depreciation	(2,150)	40,850
Sales Tax Collected		1,000
Unearned Rent		100	Patent		4,000
			Furniture	11,300
			Less: Depreciation	(565)	10,735
			Closing Stock		2,000


		72,945			72,945

Note: In the NCERT book, Gross Profit is given Rs.21,900, Net Profit is given as Rs.25,185 and Balance Sheet total is given as Rs.71,185. But as per the solution Gross Profit is Rs.22,400, Net Profit is Rs.24,985 and total of Balance Sheet is Rs.72,945.

Financial Statements Exercise 422

Solution NUM 12

Trading A/c
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock		16,000	By Sales	1,12,000
To Purchases	67,600		Less: Return Inwards	(4,600)	1,07,400
Less: Return Outwards	(3,200)	64,400	By Closing Stock		15,000
To Carriage Inwards		1,400
To Wages	1,200
Add: Outstanding Wages	200	1,400
To Gross Profit c/d		39,200

		1,22,400			1,22,400

Profit and Loss A/c
Dr.				Cr.
Particulars		Rs.	Particulars	Rs.
To General Expenses		2,400	By Gross Profit b/d	39,200
To Insurance	4,000		By Discount	1,400
Less: Unexpired Insurance	(1,000)	3,000	By Commission	1,800
To Scooter Expenses		200
To Salary	8,800
Add: Outstanding Salary	1,800	10,600
To Interest on Capital		2,500
To Depreciation on Scooter		400
To Depreciation on Furniture		520
To Net Profit c/d		22,780

		42,400		42,400

Balance Sheets
Liabilities		Rs.	Assets		Rs.
Capital	50,000		Cash in hand		4,000
Add: Interest on Capital	2,500		Scooter	8,000
Add: Net profit	22,780	75,280	Less: Depreciation	400	7,600
Bank Overdraft		10,000	Furniture	5,200
Creditors		16,000	Less: Depreciation	520	4,680
Outstanding Salary		1,800	Buildings		65,000
Outstanding wages		200	Debtors		6,000
			Unexpired Insurance		1,000
			Closing Stock		15,000


		1,03,280			1,03,280

Financial Statements Exercise 423

Solution NUM 13

Trading A/c
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock		42,300	By Sales	1,12,500
To Purchases	45,000		Less: Sales Return	(2,385)	1,10,115
Less: Purchases Return	(1,440)	43,560	By Closing Stock		20,000
To Carriage		2,700
To Wages	11,215
Add: Outstanding Wages	50	11,265
To Octroi		530
To Gross Profit c/d		29,760

		1,30,115			1,30,115

Profit and Loss A/c
Dr.				Cr.
Particulars		Rs.	Particulars	Rs.
To Salary	25,470		By Gross Profit b/d	29,760
Add: Outstanding Salary	20	25,490	By Commission	1,575
To Insurance Premium		2,700	By Interest	7,425
To Rent and Taxes		2,160	By Interest on Drawings	977
To Carriage Outwards		1,485	By Net Loss c/d	8,973
To General Expenses		6,975
To Interest on Capital		6,750
To Depreciation on P and M		1,350
To Provision on Debtors		1,800


		48,710		48,710

Balance Sheet
Liabilities		Rs.	Assets		Rs.
Capital	67,500
Add: Interest on Capital	6,750		Plant and machinery	27,000
Less: Net Loss	(8,973)		Less: Depreciation	(1,350)	25,650
Less: Drawings	(19,530)		Furniture		6,750
Less: Interest on drawings	(977)	44,770	Debtors	36,000
			Less: 5% Provision	(1,800)	34,200
Bank Overdraft		24,660	Investment		41,400
Creditors		58,500	Closing Stock		20,000
Outstanding wages		50
Salary Outstanding		20

		1,28,000			1,28,000

Solution NUM 14

Profit and Loss A/c (Extract)
Dr.		Cr.
Particulars			Rs.	Particulars	Rs.
To Bad Debts	500
Add: Further Bad Debts	300
Add: New Provision	3,020
Less: Old Provision	(2,000)		1,820

Balance Sheet (Extract)
Liabilities	Rs.	Assets		Rs.
		Debtors	30,500
		Less: Further Bad Debts	(300)
		Less: New Provision	(3,020)	27,180

Debtors A/c
Dr.		Cr.
Date	Particulars		Rs.	Date	Particulars	Rs.
2017				2017
31^st Mar	To Balance b/d		30,500	31^st Mar	By Further Bad Debts A/c	300
				31^st Mar	By Provision for Doubtful Debts A/c	3,020
				31^st Mar	By Balance c/d	27,180

			30,500			30,500

Bad Debts A/c
Dr.		Cr.
Date	Particulars	Rs.	Date	Particulars	Rs.
2017			2017
31^st Mar	To Balance b/d	500	31^st Mar	By Provision for Doubtful Debts A/c	800
31^st Mar	To Sundry Debtors A/c	300
		800			800

Provision for Doubtful Debts A/c
Dr.		Cr.
Date	Particulars		Rs.	Date	Particulars	Rs.
2017				2017
31^st Mar	To Bad debts A/c		800	1^st April	By Balance b/d (Old P.)	2,000
31^st Mar	To Balance b/d (New P.)		3,020	1^st April	By Profit and loss A/c (Bal. fig.)	1,820

			3,820			3,820

Financial Statements Exercise 424

Solution NUM 15

Profit and Loss A/c
Dr.		Cr.
Particulars			Rs.	Particulars	Rs.
To Bad Debts A/c	2,000			By Old Provision for Doubtful Debts	5,000
Add: Further Bad Debts	500
Add: New Provision for Bad Debts	2,385		4,885

To Provision for Bad Debts (Bal. fig.)			115

			5,000		5,000

Balance Sheet (Extract)
Liabilities	Rs.	Assets		Rs.
		Debtors	80,000
		Less: Further Bad Debts	(500)
		Less: New Provision on Debtors	(2,385)	77,115

Bad Debts A/c
Dr.			Cr.
Date	Particulars	Rs.		Date	Particulars	Rs.
2017				2017
31^st Mar	To Balance b/d	2,000		31^st Mar	By Provision for Doubtful Debts A/c	2,500
31^st Mar	To Sundry Debtors A/c	500
		2,500				2,500

Provision for Bad Debts A/c
Dr.			Cr.
Date	Particulars	Rs.		Date	Particulars	Rs.
2017				2017
31^st Mar	To Bad Debts A/c	2,500		31^st Mar	By Balance b/d (Old P.)	5,000

31^st Mar	To Balance b/d (New P.)	2,385
31^st Mar	To Profit and loss A/c (bal. fig.)	115


		5,000				5,000

Note: In this case, the old provision exceeds the sum total of bad debts and the new provision.

There, the balancing figure is Rs.115 and is calculated as Rs.2,500 + Rs.2,385 - Rs.5,000 = Rs.115

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Class 11-commerce NCERT Solutions Accountancy Part II Chapter 10: Financial Statements