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 |
||
|
|
|
|