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Class 11-commerce T S GREWAL Solutions Accountancy Chapter 19: Adjustments in Preparation of Financial Statements

Adjustments in Preparation of Financial Statements Exercise 19.64

Solution PQ 1

 

Trading Account

for the year ended March 31, 2019

Dr.

 

Cr.

Particulars

Rs. 

Particulars

Rs. 

To Opening Stock

16,000

By Sales

42,000

To Purchases

20,000

By Closing Stock

16,000

To Wages

8,000

 

 

To Manufacturing Expenses

1,500

 

 

To Carriage

1,600

 

 

To Gross profit c/d

10,900

 

 

 

58,000

 

58,000

 

 

Profit and Loss Account

for the year ended March 31, 2019

Dr.

 

Cr.

Particulars

 

Rs. 

Particulars

 

 Rs. 

To Salaries

 

8,000

By Gross Profit b/d

 

10,900

To Repairs

1,900

By Net Loss c/d

 

24,900

To Rent

4,500

 

 

 

 

 

Add: Unpaid Rent

500

5,000

 

 

 

To Bad Debts

 

5,000

 

 

 

To Depreciation On:

 

 

 

 

 

 

Plant and Machinery

12,000

 

 

 

 

 

Delivery Vehicle

3,900

15,900

 

 

 

 

 

 

 

 

 

 

 

35,800

 

 

35,800

 

 

Balance sheet as on March 31, 2019

 

 

 

Liabilities

 

Rs. 

Assets

 

Rs. 

Capital

1,90000

 

Fixed Assets:

 

 

 

Less: Drawings

(7,000)

 

Plant and Machinery

1,20,000

 

 

Less: Net-Loss

(24,900)

1,58,100

 

Less:10% dep.

(12,000)

1,08,000

 

 

 

Delivery Vehicle

26,000

 

Current Liabilities

 

 

 

Less:15% dep.

(3,900)

22,100

Sundry Creditors

 

26,000

 

 

 

Bills Payable

 

23,500

Current Assets

 

 

Unpaid Rent

 

500

Closing Stock

 

16,000

 

 

 

Sundry Debtors

 

36,000

 

 

 

Cash at Bank

 

26,000

 

 

 

 

 

 

 

 

2,08,100

 

 

2,08,100

 

 

Adjustments in Preparation of Financial Statements Exercise 19.65

Solution PQ 2

 

 

Trading Account

for the year ended March 31, 2019

Dr.

 

 

 

 

Cr.

Particulars

 

Rs. 

Particulars

 

Rs. 

To Opening Stock

 

20,000

By Sales

1,64,000

 

To Purchases

1,05,000

 

 

Less: Return Inward

(3,000)

1,61,000

 

Less: Return Outward

(5,000)

1,00,000

By Closing Stock

 

14,500

To Wages

 

50,000

By Gross Loss c/d (Balancing Fig.)

 

5,000

To Manufacturing Expenses

 

8,000

 

 

 

To Carriage

 

1,500

 

 

 

To Fuel And Power

 

1,000

 

 

 

 

 

 

 

 

 

 

 

1,80,500

 

 

1,80,500

 

 

Profit and Loss Account

for the year ended March 31, 2019

Dr.

 

Cr.

Particulars

 

Rs. 

Particulars

 

Rs. 

To Gross Loss b/d

 

5,000

 

 

 

To Repairs

500

 

By Net Loss c/d (Balancing Fig.)

 

27,900

 

Add: Outstanding

400

900

 

 

 

To Rent

 

4,000

 

 

 

To Miscellaneous Expenses

 

7,000

 

 

 

To Bad Debts

2,000

 

 

 

 

 

Add: Additional Bad Debts

5,000

7,000

 

 

 

To Depreciation On:

Plant And Machinery

 

4,000

 

 

 

 

 

 

 

 

 

 

 

27,900

 

 

27,900

 

 

Balance Sheet as on March 31, 2019

 

 

 

Liabilities

 

Rs. 

Assets

 

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

 

 

Solution PQ 3

 

Financial statement of Prasad

Trading Account

for the year ended March31, 2019

Dr.

 

 

 

 

Cr.

Particulars

 

Rs. 

Particulars

 

Rs. 

To Opening Stock

 

6,00,000

By Sales

 

16,00,000

To Wages

1,00,000

 

By Closing stock

 

8,00,000

 

Add: Outstanding Wages

5,000

1,05,000

 

 

 

To Purchases

 

8,00,000

 

 

 

To Gross Profit c/d (Balancing Fig.)

 

8,95,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24,00,000

 

 

24,00,000

 

 

Profit and Loss Account

for the year ended March 31, 2019

Dr.

 

Cr.

Particulars

 

Rs. 

Particulars

 

Rs. 

To Commission 

 

25,000

 

 

 

To Rent

45,000

 

By Gross Profit b/d

 

8,95,000

 

Less: Prepaid Rent

(10,000)

35,000

By Interest Received

 

30,000

To General Expenses

 

80,000

 

 

 

To Depreciation On:

Machinery

 

40,000

 

 

 

To Salaries

50,000

 

 

 

 

 

Add: Outstanding Salaries

45,000

95,000

 

 

 

To Interest on Capital 5%

 

45,000

 

 

 

To Net Profit c/d

(Balancing Fig.)

 

6,05,000

 

 

 

 

 

 

 

 

 

 

 

9,25,000

 

 

9,25,000

 

 

Balance sheet as on March 31, 2019

 

 

 

Liabilities

 

Rs. 

Assets

 

Rs. 

Capital

9,00,000

 

Fixed Assets

 

 

Add: Interest on Capital 

45,000 

 

 

 

 

 

Add: Net profit

6,05,000

15,50,000

Machinery

4,00,000

 

 

 

 

Less: 10% Depreciation

(40,000)

3,60,000

Current Liabilities

 

 

 

 

 

Sundry Creditors

 

4,50,000

Current Assets

 

 

Outstanding Salary

 

45,000

Closing Stock

 

8,00,000

Outstanding Wages

 

5,000

Sundry Debtors

 

4,40,000

 

 

 

Prepaid Rent

 

10,000

 

 

 

Cash At Bank

 

1,00,000

 

 

 

Bills Receivable

 

2,90,000

 

 

 

Cash In Hand

 

50,000

 

 

20,50,000

 

 

20,50,000

 

 

Adjustments in Preparation of Financial Statements Exercise 19.66

Solution PQ 4

 

 

Financial statement of Shradha

Trading Account

for the year ended March31, 2019

Dr.

 

 

 

 

Cr.

Particulars

 

Rs. 

Particulars

 

Rs. 

To Opening Stock

 

42,000

By Sales

 

1,55,000

To Purchase

82,600

 

By Closing Stock

 

64,000

 

Less: Return Outwards

(1,600)

81,000

 

 

 

To Carriage Inwards

 

1,200

 

 

 

To Wages

4,000

 

 

 

 

 

Add: Outstanding Wages

2,400

6,400

 

 

 

To Power

 

6,000

 

 

 

To Gross Profit c/d

(Balancing Fig.)

 

82,400

 

 

 

 

 

 

 

 

 

 

 

2,19,000

 

 

2,19,000

 

 

Profit and Loss Account

for the year ended March 31, 2019

Dr.

 

Cr.

Particulars

 

Rs. 

Particulars

 

Rs. 

To Salary

 

15,000

 

 

 

To Rent

22,000

 

By Gross Profit b/d

 

82,400

 

Add: O/s For One Month

2,000

24,000

 

 

 

 

(22,000/11) 

 

 

 

 

 

To O/s Interest On Bank Loan

 

1,000

 

 

 

(25,000 × 8% × 6/12) 

 

 

 

 

 

To Bad Debts

600

 

 

 

 

Add: Provision For Doubtful Debts

1,000

1,600

 

 

 

To Insurance

3,600

 

 

 

 

Less: Prepaid 2 Month

(600)

3,000

 

 

 

(3,600 × 2/12) 

 

 

 

 

 

To Depreciation On:

 

 

 

 

 

 

Machinery

5,000

 

 

 

 

 

Furniture

700

5,700

 

 

 

 

 

 

 

 

 

To Net Profit c/d

(Balancing Fig.)

 

32,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

82,400

 

 

82,400

 

 

Balance sheet as on March 31, 2019

 

 

 

Liabilities

 

Rs. 

Assets

 

Rs. 

Capital

80,000

 

Fixed Assets

 

 

 

Add: Net Profit

32,100

 

Machinery

50,000

 

 

Less: Drawings

(18,000)

94,100

Less: 10% Depreciation

(5,000)

45,000

8% Bank Loan

25,000

 

Furniture

14,000

 

Add: Outstanding Interest

1,000

26,000

Less: Depreciation

(700)

13,300

Current Liabilities

 

 

Current Assets

 

 

Creditors

 

18,900

Closing Stock

 

64,000

Outstanding Wages

 

2,400

Debtors

20,600

 

Outstanding Rent

 

2,000

Less: Bad Debts

(600)

 

 

 

 

Less:5% Provision For Doubtful Debts

(1,000)

19,000

 

 

 

Prepaid Insurance

 

600

 

 

 

Cash In Hand

 

1,500

 

 

1,43,400

 

 

1,43,400

 

Solution PQ 5

 

Trading Account

for the year ended March 31, 2019

Dr.

 

 

Cr.

Particulars 

Amount

Rs. 

Particulars 

Amount

Rs. 

Opening Stock

25,000

Sales

2,27,800

 

Wages

12,000

 

Less: Returns

900

2,26,900

Add: Outstanding Wages

600

12,600

Closing Stock

7,000

Purchases

1,20,000

 

 

 

Less: Returns

1,000

1,19,000

 

 

Gross Profit

77,300

 

 

 

 2,33,900

 

2,33,900

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2019 

Dr.

 

 

Cr.

Particulars 

Amount

Rs. 

Particulars 

Amount

Rs. 

Bad Debts

1,000

Gross Profit

77,300

Salaries

20,000

 

Commission

500

Add: Outstanding Salaries

1,400

21,400

 

 

Insurance Premium

1,500

 

 

 

Less: Prepaid

200

1,300

 

 

Electricity Charges

1,200

 

 

Telephone Charges

2,400

 

 

General Expenses

3,000

 

 

Postage Expenses

1,800

 

 

Depreciation on:

 

 

 

Furniture

400

 

 

 

Plant and Machinery

7,250

7,650

 

 

Net Profit

38,050

 

 

 

77,800

 

77,800

 

 

 

 

 

Balance Sheet

as on March 31, 2019

Dr.

 

 

Cr.

Liabilities 

Amount

Rs. 

Assets 

Amount

Rs. 

Creditors

40,000

Furniture

8,000

 

Outstanding Wages

600

Less: Depreciation

400

7,600

Outstanding Salaries

1,400

Plant and Machinery

1,50,000

 

Capital

1,50,000

 

Less: Depreciation

7,250

1,42,750

Add: Net Profit

38,050

1,88,050

Debtors

30,000

 

 

Cash in Hand

2,500

 

 

Cash at Bank

40,000

 

 

Closing Stock

7,000

 

 

Prepaid Insurance

200

 

 

 

 

 

2,30,050

 

2,30,050

 

 

 

 

 

 

Adjustments in Preparation of Financial Statements Exercise 19.67

Solution PQ 6

 

Trading Account

for the year ended March 31, 2019

Dr.

 

 

Cr.

Particulars 

Amount

Rs. 

Particulars 

Amount

Rs. 

Opening Stock

2,20,000

Sales

15,00,000

 

Purchases

11,00,000

Less: Returns

20,000

14,80,000

Carriage on Purchases

18,000

Closing Stock

2,00,600

Gross Profit

3,42,600

 

 

 

 

 

 

 

 

 

 

 

16,80,600

 

16,80,600

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2019 

Dr.

 

 

Cr.

Particulars 

Amount

Rs. 

Particulars 

Amount

Rs. 

Provision for Doubtful Debts

9,000

Gross Profit

3,42,600

Salaries

90,000

 

Rent from Tenants

10,000

Add: Outstanding Salaries

15,000

1,05,000

Discount

20,000

Insurance Premium

20,000

 

 

 

Less: Prepaid

2,000

18,000

 

 

Discount

16,000

 

 

General Expenses

40,000

 

 

Commission

22,000

 

 

Bad Debts Written Off

8,000

 

 

Depreciation on:

 

 

 

Furniture

2,500

 

 

 

Business Premises

3,000

5,500

 

 

Net Profit

1,49,100

 

 

 

3,72,600

 

3,72,600

 

 

 

 

 

Balance Sheet

as on March 31, 2019

Dr.

 

 

Cr.

Liabilities 

Amount

Rs. 

Assets 

Amount

Rs. 

Creditors 

1,38,000

Furniture and Fittings

26,000

 

Bank Overdraft

42,000

Less: Depreciation

2,500

23,500

Outstanding Salaries

15,000

Business Premises

2,00,000

 

Capital

3,00,000

 

Less: Depreciation

3,000

1,97,000

Less: Drawings

50,000

 

Debtors 

1,80,000

 

Add: Net Profit 

1,49,100

3,99,100

Less: Provision

9,000

1,71,000

 

 

Closing Stock

2,00,600

 

 

Prepaid Insurance

2,000

 

 

 

 

 

5,94,100

 

5,94,100

 

 

 

 

 

Adjustments in Preparation of Financial Statements Exercise 19.68

Solution PQ 7

 

 

 

Financial statement of Niranjan

Trading Account

for the year ended March31, 2019

Dr.

 

 

 

 

Cr.

Particulars

 

Rs. 

Particulars

 

Rs. 

To Opening Stock

 

4,50,000

By Sales

43,50,000

 

To purchase

29,50,000

 

 

Less: Sales return

(70,000)

42,80,000

 

Less: purchase return

(40,000)

29,10,000

By Closing stock

 

7,50,000

 

 

 

 

 

 

To wages

4,00,000

 

 

 

 

 

Add: Outstanding wages

50,000

4,50,000

 

 

 

 

 

 

 

 

 

To Gross profit c/d (balancing amt.)

 

12,20,000

 

 

 

 

 

 

 

 

 

 

 

50,30,000

 

 

50,30,000

 

 

Profit and Loss Account

for the year ended March 31, 2019  

Dr.

 

Cr.

Particulars

 

Rs. 

Particulars

 

Rs. 

To Rent A/c

 

5,00,000

 

 

 

To Salaries A/c

2,40,000

 

By gross profit b/d

 

12,20,000

 

Add: Outstanding salaries

20,000

2,60,000

 

 

 

To Advertisement expenses

 

60,000

By Interest accrued on Investment

(50,000 × 6% × 9/12)

22,500

To Bad debts

10,000

 

By Miscellaneous Receipts

 

12,000

Add: further bad debts

50,000

 

 

 

 

Add: Provision for doubtful debts

17,500

77,500

 

 

 

To Insurance

 

15,000

 

 

 

To Trade Expenses

 

20,000

 

 

 

To Reserve for discount on Debtors

 

6,650

 

 

 

 

 

 

 

 

 

To Depreciation on:

 

 

 

 

 

Machinery

24,000

 

 

 

 

Furniture

3,000

27,000

 

 

 

 

 

 

 

 

 

To net profit c/d

(Balancing Fig.)

 

7,38,350

 

 

 

 

 

12,54,500

 

 

12,54,500

 

 

Balance sheet

as on March 31, 2019

 

 

 

Liabilities

 

Rs. 

Assets

 

Rs. 

Capital

12,00,000

 

Fixed Assets

 

 

 

Add: Net Profit

7,38,350

 

Patents

 

48,000

 

Less: Drawings

(2,10,000)

17,28,350

Plant And Machinery

2,40,000

 

Current Liabilities

 

 

Less:10%Depreciation

(24,000)

2,16,000

Sundry Creditors

 

1,90,000

Furniture

15,000

 

Outstanding Wages

 

50,000

Less:20%Depreciation

(3,000)

12,000

Outstanding Salary

 

20,000

6% Investment

5,00,000

 

Bills Payable

 

8,000

Add: Accrued Interest

22,500

5,22,500

 

 

 

Current Assets

 

 

 

 

 

Closing Stock

 

7,50,000

 

 

 

Debtors

4,00,000

 

 

 

 

Less: Bad Debts

(50,000)

 

 

 

 

Less: Provision For Doubtful Debts

(17,500)

 

 

 

 

Less: Provision For Discount On Debtors

 

(6,650)

3,25,850

 

 

 

 

 

 

 

 

 

Cash

 

1,22,000

 

 

19,96,350

 

 

19,96,350

 

 

Solution PQ 8

 

 

Financial statement of Mahesh

Trading Account

for the year ended March31, 2019

Dr.

 

 

 

 

Cr.

Particulars

 

Rs. 

Particulars

 

Rs. 

To Opening Stock

 

30,000

By Sales

5,00,000

 

To Purchase

2,50,000

 

 

Less: Return Inwards

(12,000)

4,88,000

Less: Drawings

(2,000)

 

By Closing Stock

 

21,000

Less: Return Outwards

(10,000)

2,38,000

 

 

 

To Carriage

 

8,000

 

 

 

To Wages

 

60,000

 

 

 

To Gross Profit c/d (Balancing Fig.)

 

1,73,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,09,000

 

 

5,09,000

 

 

Profit and Loss Account

For the year ended March 31, 2019

Dr.

 

Cr.

Particulars

 

Rs. 

Particulars

 

Rs. 

To Insurance

 

1,200

 

 

 

To Trade Expenses

2,000

 

By Gross Profit b/d

 

1,73,000

Add: Outstanding

12,000

14,000

By Commission

1000

 

To Repairs

 

8,000

Add: Accrued Commission

2,100

3,100

To Advertisement

 

15,000

By Rent Received

5,000

 

To Printing And Stationary

 

6,000

Less: Advance Rent

(1,200)

3,800

To Interest On Bank Loan

2,800

 

 

 

 

Add: Outstanding

800

3,600

 

 

 

 

 

 

 

 

 

To Net Profit c/d (Balancing Fig.)

 

1,32,100

 

 

 

 

 

1,79,900

 

 

1,79,900

 

 

Balance sheet

as on March 31, 2019

 

 

 

Liabilities

 

Rs. 

Assets

 

Rs. 

Capital

2,40,000

 

Fixed Assets

 

 

 

Add: Net Profit

1,32,100

 

Machinery

 

2,80,000

 

Less: Drawings

(22,000)

3,50,100

Furniture

 

34,000

12% Loan From Bank

30,000

 

Current Assets

 

 

 

Add: Outstanding Interest

800

30,800

Closing Stock

 

21,000

Current Liabilities

 

 

Debtors

 

1,15,000

Creditors

 

1,00,000

Bills Receivable

 

4,000

Bills Payable

 

2,000

Cash At Bank

 

28,000

Advance Rent

 

1,200

Cash In Hand

 

12,000

Outstanding Trade Expenses

 

12,000

Commission Accrued

 

2,100

 

 

4,96,100

 

 

4,96,100

 

 

Working Notes:

Calculation of outstanding interest on loan :

 

Interest on loan (30,000 × 12%)

3,600

 

Less: Interest paid 

(2,800)

Interest outstanding on loan

800

 

 

 

 

Adjustments in Preparation of Financial Statements Exercise 19.69

Solution PQ 9

 

Financial statement of Vijay

Trading Account

For the year ended March 31, 2019

Dr.

 

 

 

 

Cr.

Particulars

 

Rs. 

Particulars

 

Rs. 

To Opening Stock

 

1,62,000

By Sales

 

6,53,600

To purchase

 

4,70,000

By Closing stock

 

2,30,000

To wages

 

72,000

 

 

 

To Gross profit c/d

(Balancing Fig.)

 

1,79,600

 

 

 

 

 

8,83,600

 

 

8,83,600

 

 

Profit and Loss Account

 for the year ended March 31, 2019

Dr.

 

Cr.

Particulars

 

Rs. 

Particulars

 

Rs. 

To Taxes And Insurance

 

13,150

 

 

 

To Bad Debts

5,500

 

By Gross Profit b/d

 

1,79,600

 

Add: Further Bad Debts

1,800

 

By Commission

 

13,200

 

Add: Provision For Doubtful Debts

3,050

 

 

 

 

 

10,350

 

 

 

 

 

Less: Provision (Old)

(9,000)

1,350

 

 

 

To Car Expense

 

18,000

 

 

 

To Charity

 

1,050

 

 

 

To Depreciation On Machinery

 

9,340

 

 

 

To O/s Interest On Loan

 

7,000

 

 

 

To General Expenses

 

47,400

 

 

 

To Net Profit c/d

(Balancing Fig.)

 

95,510

 

 

 

 

 

1,92,800

 

 

1,92,800

 

 

Balance sheet as on March 31, 2019

 

 

 

Liabilities

 

Rs. 

Assets

 

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

 

Adjustments in Preparation of Financial Statements Exercise 19.70

Solution PQ 10

 

Financial statement

Trading Account

for the year ended March31, 2019

Dr.

 

 

 

 

Cr.

Particulars

 

Rs. 

Particulars

 

Rs. 

To Opening Stock

 

2,20,000

By Sales

 

13,45,000

To Purchase

 

11,88,700

By Closing Stock

 

1,24,500

To Gross Profit c/d (Balancing Fig.)

 

60,800

 

 

 

 

 

14,69,500

 

 

14,69,500

 

 

Profit and Loss Account

for the year ended March 31, 2019

Dr.

 

Cr.

Particulars

 

Rs. 

Particulars

 

Rs. 

To Salaries

 

22,250

 

 

 

To Bad Debts

4,000

 

By Gross Profit b/d

 

60,800

 

Add: Provision For Doubtful Debts

15,800

19,800

By Net Loss c/d (Balancing Fig.)

 

42,750

To Rent

9,000

 

 

 

 

 

Add: Outstanding Rent

850

9,850

 

 

 

To General Expenses

10,750

 

 

 

 

 

Add: Outstanding

1,500

12,250

 

 

 

To Carriage Outwards

 

4,000

 

 

 

To Depreciation On

 

 

 

 

 

----Plant And Machinery

17,500

 

 

 

 

----Business Premises

6,900

24,400

 

 

 

To Discount

 

11,000

 

 

 

 

 

1,03,550

 

 

1,03,550

 

 

Balance sheet

as on march 31, 2019

 

 

 

Liabilities

 

Rs. 

Assets

 

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

 

 

 

General Expenses Outstanding

 

1,500

 

 

 

 

 

 

Current Assets

 

 

 

 

 

Closing Stock

 

1,24,500

 

 

 

Sundry Debtors

3,20,000

 

 

 

 

 

Less: Bad Debts

(4,000)

 

 

 

 

 

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: During the year firm has incurred a loss of Rs.42,750. Therefore, manager commission given in the question as 5% on Net profit after charging commission is not payable.

 

 

Adjustments in Preparation of Financial Statements Exercise 19.71

Solution PQ 11

 

Trading Account

for the year ended March 31, 2019

Dr.

 

 

Cr.

Particulars 

Amount

Rs. 

Particulars 

Amount

Rs. 

Purchases (Adjusted)

2,10,000

 

Sales

3,85,000

 

Less: Returns

2,500

2,07,500

Less: Returns

1,500

3,83,500

Wages

45,300

 

 

Carriage Inwards

1,200

 

 

Gross Profit

1,29,500

 

 

 

3,83,500

 

3,83,500

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2019 

Dr.

 

 

Cr.

Particulars 

Amount

Rs. 

Particulars 

Amount

Rs. 

Outstanding Interest on Loan

2,250

Gross Profit

1,29,500

Salaries

39,000

 

Commission

1,500

Add: Outstanding

11,500

 

Discount

1,200

Add: Payable to Proprietor

15,000

65,500

 

 

Insurance Premium

1,500

 

 

 

Less: Prepaid

250

1,250

 

 

Discount

750

 

 

Office Expenses

15,400

 

 

Carriage Outwards

2,000

 

 

Bad Debts

1,200

 

 

 

Add: Provision for Doubtful Debts

800

2,000

 

 

Depreciation on:

 

 

 

Furniture and Fixtures

3,000

 

 

 

Land and Building

3,000

 

 

 

Plant and Machinery

5,000

 

 

 

Office Equipment

2,400

13,400

 

 

General Reserve

2,965

 

 

Net Profit

26,685

 

 

 

1,32,200

 

1,32,200

 

 

 

 

 

Balance Sheet

as on March 31, 2019

Dr.

 

 

Cr.

Liabilities 

Amount

Rs. 

Assets 

Amount

Rs. 

Creditors 

25,000

Furniture and Fixtures

20,000

 

Bills Payable

12,350

Less: Depreciation

3,000

17,000

Outstanding Salaries

11,500

Land and Building

50,000

 

Capital

1,15,000

 

Less: Depreciation

3,000

47,000

Add: Salary Payable

15,000

 

Debtors 

40,000

 

Add: Net Profit 

26,685

1,56,685

Less: Provision

800

39,200

Chatterji's Loan 

25,000

 

Plant and Machinery

50,000

 

Add: Outstanding Interest 

2,250

27,250

Less: Depreciation 

5,000

45,000

Expenses Payable

3,300

Office Equipment

12,000

 

General Reserve

2,965

Less: Depreciation 

2,400

9,600

 

 

Closing Stock

45,000

 

 

Cash at Bank

16,000

 

 

Bills Receivable

20,000

 

 

Prepaid Insurance

250

 

2,39,050

 

2,39,050

 

 

 

 

 

 

Adjustments in Preparation of Financial Statements Exercise 19.72

Solution PQ 12

 

 

Trading Account

for the year ended March 31, 2019

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

41,000

 

 

 

2,40,600

 

2,40,600

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2019 

Dr.

 

 

Cr.

Particulars 

Amount

Rs. 

Particulars 

Amount

Rs. 

Salaries

8,000

Gross Profit

8,000

Insurance Premium

1,320

 

 

 

Less: Prepaid

120

1,200

 

 

Depreciation on Machinery

5,200

 

 

Rent

5,200

 

 

 

Less: Deposit

400

4,800

 

 

Bad Debts

1,020

 

 

 

Add: Provision for Doubtful Debts

2,200

 

 

 

Add: Provision for Discount

1,045

4,265

 

 

General Expenses

2,600

 

 

Net Profit

6,935

 

 

 

 

 

 

 

1,32,200

 

1,32,200

 

 

 

 

 

Balance Sheet

as on March 31, 2019

Dr.

 

 

Cr.

Liabilities 

Amount

Rs 

Assets 

Amount

Rs 

Creditors 

20,000

Furniture

3,350

Secured Loan

16,000

Closing Stock

20,600

Capital

1,45,600

 

Building

67,000

Add: Net Profit

6,935

1,52,535

Prepaid Insurance

120

 

 

Debtors 

44,000

 

 

 

Less: Provision for DD 

2,200

 

 

 

Less: Provision for Discount

1,045

40,755

 

 

Machinery

52,000

 

 

 

Less: Depreciation 

5,200

46,800

 

 

Rent Deposit

400

 

 

Cash in Hand

1,930

 

 

Bank

6,580

 

 

Input CGST

500

 

 

Input SGST

500

 

1,88,535

 

1,88,535

 

 

 

 

 

 

Adjustments in Preparation of Financial Statements Exercise 19.73

Solution PQ 13

 

 

Trading Account

for the year ended March 31, 2019

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

55,000

 

 

 

1,85,000

 

1,85,000

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2019 

Dr.

 

 

Cr.

Particulars 

Amount

Rs. 

Particulars 

Amount

Rs. 

Outstanding Interest on Loan

3,000

Gross Profit

 55,000

Taxed and Insurance

5,000

 

Commission

5,000

 

Add: Outstanding Taxes

2,000

 

Less: Received in Advance

1,000

4,000

Less: Prepaid Insurance

500

6,500

Interest Receivable on Deposits

2,100

Establishment Expenses

22,000

 

 

Depreciation on Furniture

600

 

 

Outstanding Salary

1,000

 

 

Bad Debts

5,000

 

 

 

Add: Provision for DD

3,000

8,000

 

 

Net Profit

20,000

 

 

 

 

 

 

 

61,100

 

61,100

 

 

 

 

 

Balance Sheet

as on March 31, 2019

Dr.

 

 

Cr.

Liabilities 

Amount

Rs. 

Assets 

Amount

Rs. 

Creditors 

20,000

Furniture and Fixtures

6,000

 

Capital

1,00,000

 

Less: Depreciation

600

5,400

Less: Drawings

14,000

 

Deposits

40,000

 

Add: Net Profit

20,000

1,06,000

Add: Interest Receivable

2,100

42,100

Bank Loan

20,000

 

Debtors 

50,000

 

Add: Outstanding Interest

3,000

23,000

Less: Provision

10,000

40,000

Bills Payable

25,000

Closing Stock

45,000

Output IGST

2,000

Bills Receivable

32,000

Salary Outstanding

1,000

Prepaid Insurance

500

Taxes Outstanding

2,000

Cash

15,000

Commission Received in Advance

1,000

 

 

 

 

 

 

 

23,06,800

 

1,80,000

 

 

 

 

 

 

Adjustments in Preparation of Financial Statements Exercise 19.74

Solution PQ 14

 

Trading Account

for the year ended March 31, 2019

Dr.

 

 

Cr.

Particulars 

Amount

Rs. 

Particulars 

Amount

Rs. 

Opening Stock

70,000

Sales

4,00,000

 

Purchases

2,60,000

 

Less: Returns

8,000

3,92,000

Less: Machinery

10,000

 

Closing Stock

35,000

Less: Returns

7,000

2,43,000

 

 

Carriage

5,000

 

 

Wages

50,000

 

 

 

Add: Outstanding

6,000

56,000

 

 

Gross Profit

53,000

 

 

 

4,27,000

 

4,27,000

 

 

 

 

 

Profit and Loss Account

for the year ended March 31, 2019 

Dr.

 

 

Cr.

Particulars 

Amount

Rs. 

Particulars 

Amount

Rs. 

Interest on Bank Loan

12,000

 

Gross Profit

 53,000

Add: Outstanding

3,000

15,000

Discount Received

6,000

Salaries

45,000

 

Old Provision for DD

13,000

 

Add: Outstanding

5,000

50,000

Less: Provision for DD

4,800

8,200

Discount Allowed

7,000

Net Loss

81,500

Further Bad Debts

2,000

 

 

Commission

15,000

 

 

Advertisement

15,000

 

 

Rent and Taxes

13,000

 

 

Depreciation on:

 

 

 

Land and Building

2,450

 

 

 

Plant and Machinery

21,000

 

 

 

Furniture

8,250

31,700

 

 

 

 

 

 

 

1,48,700

 

1,48,700

 

 

 

 

 

Balance Sheet

as on March 31, 2019

Dr.

 

 

Cr.

Liabilities 

Amount

Rs. 

Assets 

Amount

Rs. 

Creditors 

28,000

Plant and Machinery

2,05,000

 

Wages Outstanding

6,000

Add: Purchases

10,000

 

Capital

3,50,000

 

Less: Depreciation

21,000

1,94,000

Less: Drawings

15,000

 

Furniture

55,000

 

Less: Net Loss

81,500

2,53,500

Less: Depreciation

8,250

46,750

Outstanding Salaries

5,000

Debtors

50,000

 

Bank Loan

1,50,000

 

Less: FBD

2,000

 

Add: Outstanding Interest

3,000

1,53,000

Less: Provision

4,800

43,200

 

 

Closing Stock

35,000

 

 

Cash at Bank

20,000

 

 

Land and Building

98,000

 

 

 

Less: Depreciation

2,450

95,550

 

 

Input SGST

3,000

 

 

Cash in Hand

8,000

 

 

 

 

 

4,45,500

 

4,45,500