T. S. Grewal Solutions for Class 11-commerce Accountancy CBSE Chapter 18: Financial Statements of Sole Proprietorship

Financial Statements of Sole Proprietorship Exercise 18.62

Solution PQ 1

Expenditure	Reason
(i) (ii) (iii)(iv)(v) Used in business for a number of years

Solution PQ 2

Expenditure	Reason
(i) (ii) (iii)(iv)(v) Part of normal operating cost

Solution PQ 3

Gross Profit	=	Sales + Closing Stock - (Opening Stock + Goods Purchased + Freight and Packing)
	=	1,90,000 + 30,000 - (25,000 +1,40,000 + 10,000)
	=	2,20,000 - 1,75,000
	=	Rs.45,000

Note:6,000) is not a Direct Expense. Thus, it not considered while computing the amount of Gross Profit.

Solution PQ 4

Calculation of amount of Closing Stock

Closing Stock =Rs.15,000

Solution PQ 5

Trading Account
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock		23,000	By Sales	25,400
To Purchases	29,000		Less : Sales Return	(500)	24,900
Less :Purchases Return	(2,400)	26,600	By Closing Stock		47,700
To Carriage Inwards		100
To Gross Profit c/d (Bal. Fig.)		22,900
		72,600			72,600

Note: Depreciation is not a Direct Expense. Thus, it not shown in the Trading Account.

Journal
Date	Particulars		L.F.	Dr. Rs.	Cr. Rs.
	Trading A/c	Dr.		52,600
	--------To Opening Stock A/c				23,000
	--------To Purchases A/c				29,000
	--------To Carriage Inwards A/c				100
	--------To Sales Return A/c				500
	(Being transfer of balances to debit side of trading account)

	Sales A/c	Dr.		25,400
	Purchases Return A/c	Dr.		2,400
	--------To Trading A/c				27,800
	(Being transfer of balances to credit side of trading account)

	Closing Stock A/c	Dr.		47,700
	--------To Trading A/c				47,700
	(Being recording of closing stock)

	Trading A/c	Dr.		22,900
	--------To Profit and Loss A/c				22,900
	(Being transfer of gross Profit to the Profit and Loss account)

Financial Statements of Sole Proprietorship Exercise 18.63

Solution PQ 6

Trading Account
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Opening Stock	2,00,000	By Sales	14,07,000
To Purchases	8,50,000	By Closing Stock	1,80,000
To Carriage on Purchases	23,000
To Gross Profit c/d (Balancing Fig.)	5,14,000
	15,87,000		15,87,000

Note: Carriage on Sales and Office Rent are not a Direct Expense. Thus, it is not considered while computing the amount of Gross Profit.

Solution PQ 7

Trading Account For the year ended March 31, 2019
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock		40,000	By Sales	3,80,000
To Purchases	4,00,000		Less: Return Inwards	(20,000)	3,60,000
Less: Return Outwards	(80,000)	3,20,000	By Closing Stock		1,20,000
To Carriage Inwards		20,000
To Wages and Salaries		50,000
To Gross Profit c/d (Bal. Fig.)		50,000
		4,80,000			4,80,000

Note: According to the Principle of Conservatism, closing stock is valued at Cost or Market Price, whichever is less. Hence, closing stock is valued at Market Price (i.e., Rs.1,20,000)

Solution PQ 8

Trading Account For the year ended March 31, 2019
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Purchases (Adjusted)	6,60,000	By Sales	7,44,000
To Freight and Carriage Inwards	3,600
To Wages	6,000
To Gross Profit c/d (Bal. Fig.)	74,400
	7,44,000		7,44,000

Note :

Freight and Carriage Outwards are not a Direct Expense. Thus, it is not recorded in the trading Account.
Adjusted Purchases = Opening Stock + Net Purchases - Closing Stock

Therefore, Closing Stock (Rs.50,400) is not considered while preparing Trading Account.

Solution PQ 9

Trading Account For the year ended March 31, 2019
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock			By Sales	7,00,000
Raw Materials	80,000		Less: Return Inwards	(6,000)	6,94,000
Finished Goods	1,40,000	2,20,000	By Closing Stock
To Purchases	3,60,000		Raw Materials	70,000
Less: Return Outwards	(10,000)	3,50,000	Work-in-progress	20,000
To Freight Inwards		20,000	Finished Goods	1,10,000	2,00,000
To Wages		1,30,000
To Factory Expenses		90,000
To Gross Profit c/d (Bal. Fig.)		84,000
		8,94,000			8,94,000

Note :

Freight Outwards are not a Direct Expense. Thus, it is not recorded in the Trading Account.

Solution PQ 10

Trading Account For the year ended March 31, 2019
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Purchases (Adjusted)	5,50,000	By Sales	6,25,000
To Freight and Carriage Inwards	3,000
To Wages	7,000
To Gross Profit c/d (Bal. Fig.)	65,000
	6,25,000		6,25,000

Note :

Freight and Carriage Outwards are not a Direct Expense. Thus, it is not recorded in the Trading Account.
Adjusted Purchases = Opening Stock + Net Purchases - Closing Stock

Therefore, Closing Stock (Rs.50,000) is not considered while preparing Trading Account.

Financial Statements of Sole Proprietorship Exercise 18.64

Solution PQ 11

Calculation of Operating Profit

Operating Profit = Net Profit - Rent Received - Gain of sales of Machine + Interest on Loan + Donation

= 1,00,000 - 10,000 - 15,000 + 20,000 + 2,000 = Rs.97,000

Operating Profit = Rs.97,000

Solution PQ 12

Profit and Loss Account For the year ended March 31, 2019
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Salaries and Wages	30,000	By Gross Profit b/d (6,50,000 × 45%)	2,92,500
To Commission Paid	2,000	By Rent Received	17,000
To Postage and Telegram	1,500	By Interest on Investments	15,000
To Insurance	3,000
To Interest Paid	4,000
To Carriage Outwards	5,000
To Advertising	10,000
To Discount allowed	18,000
To Bad debts	9,000
To Brokerage Paid	950
To Net Profit c/d (Bal. Fig.)	2,41,050
	3,24,500		3,24,500

Solution PQ 13

Profit and Loss Account For the year ended March 31, 2019
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Rent	5,000	By Gross Profit b/d	1,20,000
To Salary	35,000	By Interest Received	8,000
To Commission Paid	19,000	By Discount Received	6,000
To Interest on Loan	5,000
To Advertisement	8,000
To Printing and Stationery	4,000
To Legal Charges	10,000
To Bad Debts	2,000
To Loss by Fire	6,000
To Depreciation	4,000
To Net Profit c/d (Bal. Fig.)	36,000
	1,34,000		1,34,000

Solution PQ 14

Balance Sheet as on March 31, 2019
Liabilities			Rs.	Assets	Rs.
Capital		4,00,000		Plant	1,00,000
	Less: Drawings	(44,000)		Furniture	37,000
	Add: Net Profit	16,600	3,72,600	Closing Stock	1,48,000
General Reserve			10,000	Debtors	64,000
Creditors			42,000	Cash at Bank	72,000
				Cash in Hand	3,600
			4,24,600		4,24,600

Financial Statements of Sole Proprietorship Exercise 18.65

Solution PQ 15

(I) Balance sheet in Order of permanence
Balance Sheet as on March 31, 2019
Liabilities		Rs.	Assets		Rs.
Capital	1,80,000		Goodwill		20,000
Less: Drawings	(30,000)		Land and Building		60,000
Add: Net Profit	92,600	2,42,600	Plant and Machinery		40,000
Sundry Creditors		63,000	Furniture		16,000
Bills Payable		10,700	Investment		20,000
Liabilities for Expenses		1,200	Closing Stock		80,000
			Sundry Debtors	50,000
			Less: Provision for Doubtful Debts	(2,500)	47,500
			Bills Receivable		13,000
			Bank		20,000
			Cash in Hand		1,000
		3,17,500			3,17,500

(II) Balance Sheet in Order of Liquidity
Balance Sheet as on March 31, 2019
Liabilities		Rs.	Assets		Rs.
Liabilities for Expenses		1,200	Cash in Hand		1,000
Bills Payable		10,700	Bank		20,000
Sundry Creditors		63,000	Bills Receivable		13,000
Capital	1,80,000		Sundry Debtors	50,000
Less: Drawings	(30,000)		Less: Provision for Doubtful Debts	(2,500)	47,500
Add: Net Profit	92,600	2,42,600	Closing Stock		80,000
			Investment		20,000
			Furniture		16,000
			Plant and Machinery		40,000
			Land and Building		60,000
			Goodwill		20,000
		3,17,500			3,17,500

Solution PQ 16

i. Calculation of Fixed Asset

Fixed Assets =Land + Plant + Furniture + Goodwill

= 20,000 + 32,000 + 8,000 + 20,000 =Rs.80,000

ii. Calculation of Current Assets

Current Assets =Stock + Debtors + Prepaid Expenses

= 48,000 + 36,000 + 400 =Rs.84,400

iii. Calculation of Current Liabilities

Current Liabilities =Creditors + Expenses Accrued + Bank Overdraft + Interest on Loan

= 42,000 + 3,200 +4,800 + 1,000 = Rs.51,000

iv. Calculation of Working Capital

Working Capital = Current Assets - Current Liabilities

= 84,400 - 51,000 = Rs.33,400

Solution PQ 17

Financial Statements of Jagat Shah
Trading Account For the year ended 31^st March 2019
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock		1,00,000	By Sales	8,20,000
To Purchases	4,00,000		Less : Sales Return	(10,000)	8,10,000
Less : Purchases Return	(5,000)	3,95,000	By Closing Stock		2,00,000
To Wages		1,00,000
To Carriage Inwards		5,000
To Gross Profit c/d (Balancing Fig.)		4,10,000
		10,10,000			10,10,000

Profit and Loss Account For the year ended 31^st March 2019
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Salaries	60,000	By Gross Profit b/d	4,10,000
To General Expenses	20,000
To Rent	50,000
To Carriage outwards	20,000
To Advertising	20,000
To Net Profit c/d (Balancing Fig.)	2,40,000
	4,10,000		4,10,000

Balance sheet as on 31^st March 2019
Liabilities		Rs.	Assets	Rs.
Capital	3,60,000		Fixed Assets
Less : Drawings	(40,000)		Machinery	70,000
Add : Net Profit	2,40,000	5,60,000	Current Assets
Current Liabilities			Closing Stock	2,00,000
Creditors		50,000	Debtors	3,00,000
			Cash	40,000
		6,10,000		6,10,000

Financial Statements of Sole Proprietorship Exercise 18.66

Solution PQ 18

Trading Account
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Opening Stock	2,00,000	By Sales	14,50,000
To Purchases	9,50,000	By Closing Stock	30,000
To Wages	5,00,000	By Gross Loss c/d (Balancing Fig.)	1,85,000
To Carriage	15,000
	16,65,000		16,65,000

Profit and Loss Account
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Gross Loss b/d	1,85,000
To Rent	45,000	By Net Loss c/d (Balancing Fig.)	2,50,000
To Sundry Expenses	20,000
	2,50,000		2,50,000

Balance Sheet
Liabilities		Rs.	Assets	Rs.
Capital	10,00,000		Fixed Assets
Less : Drawings	(90,000)		Machinery	3,50,000
Less :Net Loss	(2,50,000)	6,60,000	Current Assets
Current Liabilities			Closing Stock	30,000
Creditors		1,40,000	Debtors	2,70,000
			Bank	1,50,000
		8,00,000		8,00,000

Solution PQ 19

Financial Statement of Dass
Trading Account For the year ended March 31, 2019
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Stock		1,76,000
To Purchase	6,83,000		By Sales	9,20,000
Less : Return Outwards	(22,000)	6,61,000	Less: Return Inwards	(13,000)	9,07,000
To Carriage Inwards		24,000	By Closing Stock		2,40,000
To Gross Profit c/d (Balancing Fig.)		2,86,000
		11,47,000			11,47,000

Profit and Loss Account For the year ended March 31, 2019
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Rent, Rates and Taxes	22,000	By Gross Profit b/d	2,86,000
To Discount	37,500
To Printing	7,200
To Insurance	5,000
To Travelling Expenses	14,000
To Postage and telegram	6,200
To Miscellaneous Expenses	9,000
To Bad Debts	4,000
To Net Profit c/d (Balancing Fig.)	1,81,100
	2,86,000		2,86,000

Balance Sheet as on March 31, 2019
Liabilities		Rs.	Assets	Rs.
Capital	5,25,000		Fixed Assets
Less : Drawings	(19,100)		Business Premises	3,90,000
Add : Net Profit	1,81,100	6,87,000	Office Furniture	15,000
Loan from Sahil		50,000	Current Assets
Current Liabilities			Closing Stock	2,40,000
Creditors		1,28,000	Debtors	2,20,000
		8,65,000		8,65,000

Solution PQ 20

Financial Statement of Anand
Trading Account For the year ended March 31, 2019
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Opening Stock	99,450	By Sales	7,81,820
To Purchases	6,20,920	By Closing Stock	1,43,000
To Wages	43,000
To Gross Profit c/d (Balancing Fig.)	1,61,450
	9,24,820		9,24,820

Profit and Loss Account For the year ended March 31, 2019
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Salaries	40,000	By Gross Profit b/d	1,61,450
To Discount	10,000	By Bad Debts Recovered	1,750
To Postage	2,730
To Selling Expenses	1,750
To Bad Debts	2,870
To Interest	12,950
To Insurance	4,170
To Net Profit c/d (Balancing Fig.)	88,730
	1,63,200		1,63,200

Balance Sheet As on March 31, 2019
Liabilities		Rs.	Assets	Rs.
Capital	3,60,000		Fixed Assets
Add :Net Profit	88,730	4,48,730	Building	2,37,800
Loan		1,20,000	Machinery	1,00,000
Current Liabilities			Fixtures and fittings	1,61,550
Creditors		87,200	Current Assets
Bills payable		25,270	Closing Stock	1,43,000
			Debtors	38,850
		6,81,200		6,81,200

Financial Statements of Sole Proprietorship Exercise 18.67

Solution PQ 21

Financial Statements of M/s Raja and Sons
Trading Account For the year ended March 31, 2019
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock		29,500	By Sales	1,47,200
To Purchases	84,170		Less : Sales Return	(4,700)	1,42,500
Less : Purchases Return	(3,900)	80,270	By Closing Stock		36,200
To Carriage		2,200
To Wages		45,000
To Gross Profit c/d (Balancing Fig.)		21,730
		1,78,700			1,78,700

Profit and Loss Account For the year ended March 31, 2019
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Salary	5,400	By Gross Profit b/d	21,730
To Insurance	2,500	By Rent Received	3,150
To Trade Expenses	4,900
To Net Profit c/d (Balancing Fig.)	12,080
	24,880		24,880

Balance Sheet as on March 31, 2019
Liabilities		Rs.	Assets	Rs.
Capital	58,900		Fixed Assets
Add : Net Profit	12,080		Machinery	12,000
Less : Drawings	(2,100)	68,880	Current Assets
Current Liabilities			Closing Stock	36,200
Creditors		4,200	Debtors	38,080
Bank Overdraft		9,700	Cash	400
Bills Payable		3,900
		86,680		86,680

Solution PQ 22

Financial Statements of M/s Mangal and Sons
Trading Account For the year ended March 31, 2019
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock		12,500	By Sales	70,000
To Purchases	37,500		Less : Return Inwards	(1,300)	68,700
Less : Return Outwards	(500)	37,000	By Closing Stock		15,000
To Carriage		1,450
To Gross Profit c/d (Balancing Fig.)		32,750
		83,700			83,700

Profit and Loss Account for the year ended March 31, 2019
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Salary	3,850	By Gross Profit b/d	32,750
To Insurance	200
To Commission	750
To Interest	900
To Printing	250
To Rent and Taxes	1,300
To Net Profit c/d (Balancing Fig.)	25,500
	32,750		32,750

Balance Sheet as on March 31, 2019
Liabilities		Rs.	Assets	Rs.
Capital	7,100		Fixed Assets
Add : Net Profit	25,500	32,600	Furniture	1,000
Current Liabilities			Current Assets
Creditors		20,000	Closing Stock	15,000
Bills Payable		3,150	Debtors	32,500
			Bills Receivable	2,000
			Bank	5,250
		55,750		55,750

Solution PQ 23

Trading Account
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Opening Stock	2,00000	By Sales	14,50,000
To Purchases	9,50,000	By Closing Stock	60,000
To Wages	5,00000	By Gross Loss c/d (Balancing Fig.)	1,55,000
To Carriage	15,000
	16,65,000		16,65,000

Profit and Loss Account
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Gross Loss b/d	1,55,000	By Commission	10,000
To Rent	45,000	By Net Loss c/d (Balancing Fig.)	2,20,000
To Bad Debts	10,000
To Sundry Expenses	20,000
	2,30,000		2,30,000

Balance Sheet
Liabilities		Rs.	Assets	Rs.
Capital	10,00,000		Fixed Assets
Less : Net Loss	(2,20,000)		Machinery	2,00,000
Less : Drawings	(90,000)	6,90,000	Building	1,50,000
Current Liabilities			Current Assets
Creditors		1,40,000	Closing Stock	60,000
			Debtors	2,70,000
			Bank	1,50,000
		8,30,000		8,30,000

Note: According to the Principle of Conservatism, closing stock is valued as whichever is less. Hence, closing stock is valued at (i.e., Rs.60,000)

Solution PQ 24

Financial Statements of Hari and Co. Trading Account For the year ended March 31, 2019
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock		1,65,000	By Sales	6,35,000
To Purchases	4,68,500		Less: Return Inwards	(4,500)	6,30,500
Less : Return outwards	(1,100)	4,67,400	By Closing Stock		1,82,100
To Wages		25,000
To Carriage Inwards		8,500
To Gross Profit c/d (Balancing Fig.)		1,46,700
		8,12,600			8,12,600

Profit and Loss Account For the year ended March 31, 2019
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To General Expenses	8,000	By Gross Profit b/d	1,46,700
To Rent Paid	37,100	By interest on Investments	1,000
To Electricity Charges	1,900
To Salaries	11,100
To Discount Allowed	3,000
To Net Profit c/d (Balancing Fig.)	86,600
	1,47,700		1,47,700

Balance Sheet as on March 31, 2019
Liabilities		Rs.	Assets	Rs.
Capital	3,50,000		Fixed Assets
Add : Net Profit	86,600		Building	1,87,500
Less : Drawings	(6,500)	4,30,100	Machinery	92,500
Current Liabilities			Investment	35,000
Sundry Creditors		1,00,000	Current Assets
Bills Payable		50,000	Closing Stock	1,82,100
			Debtors	35,000
			Cash at bank	30,000
			Cash in Hand	18,000
		5,80,100		5,80,100

Financial Statements of Sole Proprietorship Exercise 18.68

Solution PQ 25

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 Inwards	(4,000)	1,60,000
Less : Return Outwards	(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
		1,79,500			1,79,500

Profit and Loss Account for the year ended March 31, 2019
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Gross Loss b/d	5,000	By Net Loss c/d (Balancing Fig.)	18,500
To Repairs	500
To Rent	4,000
To Trade Expenses	7,000
To Bad debts	2,000
	18,500		18,500

Balance Sheet as on March 31, 2019
Liabilities		Rs.	Assets	Rs.
Capital	1,00,000		Fixed Assets
Less : Life Insurance Premium	(12,000)		Plant and Machinery	40,000
Less : Net Loss	(18,500)	69,500	Current Assets
Current Liabilities			Closing Stock	14,500
Sundry Creditors		12,000	Sundry Debtors	24,000
Bills Payable		7,000	Bank	10,000
		88,500		88,500

Solution PQ 26

Financial Statement of Chatter Sen
Trading Account For the year ended March 31, 2019
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock		40,000	By Sales	1,27,000
To Purchases	58,000		Less : Sales Return	(1,000)	1,26,000
Less : Purchases Return	(1,275)	56,725	By Closing Stock		35,000
To Wages		10,000
To Freight Inwards		750
To Gross Profit c/d (Balancing Fig.)		53,525
		1,61,000			1,61,000

Profit and Loss Account For the year ended March 31, 2019
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Discount Allowed	350	By Gross Profit b/d	53,525
To Bank Charges	75	By Discount Received	800
To Salaries	6,800
To Freight Outwards	1,200
To Rent Rates and Taxes	2,000
To Advertisement	2,000
To Net Profit c/d (Balancing Fig.)	41,900
	54,325		54,325

Balance Sheet as on March 31, 2019
Liabilities		Rs.	Assets	Rs.
Capital	1,10,000		Fixed Assets
Add : Net Profit	41,900	1,51,900	Plant and Machinery	90,000
			Current Assets
Sundry Creditors		20,000	Closing Stock	35,000
Loan		5,000	Sundry Debtors	45,000
			Cash at Bank	6,900

		1,76,900		1,76,900

Solution PQ 27

Trading Account For the year ended March 31, 2019
Dr.					Cr.
Particulars		Rs.	Particulars		Rs.
To Opening Stock		34,600	By Sales	1,54,500
To Purchases	55,750		Less : Sales Return	(2,000)	1,52,500
Less : Purchases Return	(1,250)	54,500	By Closing Stock		32,500
To Gross Profit c/d (Balancing Fig.)		95,900
		1,85,000			1,85,000

Profit and Loss Account For the year ended March 31, 2019
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Taxes and Insurance	12,500	By Gross Profit b/d	95,900
To General Charges	7,820	By Commission	1,750
To Salaries	33,000
To Bad debts	1,250
To Advertising	4,500
To Interest	1,180
To Net Profit c/d (Balancing Fig.)	37,400
	97,650		97,650

Balance Sheet as on March 31, 2019
Liabilities		Rs.	Assets	Rs.
Capital	1,28,900		Fixed Assets
Add : Net Profit	37,400	1,66,300	Building	75,900
Current Liabilities			Furniture and Fittings	6,400
Sundry Creditors		25,000	Motor Vehicle	62,500
Bank Overdraft		28,500	Current Assets
Bills Payable		2,000	Closing Stock	32,500
			Sundry Debtors	38,000
			Cash in Hand	6,500
		2,21,800		2,21,800

Financial Statements of Sole Proprietorship Exercise 18.69

Solution PQ 28

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 Purchases	4,70,000	By Closing Stock	2,35,000
To Power	22,400
To Wages	72,000
To Gross Profit c/d (Balancing Fig.)	1,62,200
	8,88,600		8,88,600

Profit and Loss Account For the year ended March 31, 2019
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To General Expenses	25,000	By Gross Profit b/d	1,62,200
To Insurance	13,150	By Commission	13,200
To Car Expenses	18,000
To Charity	1,050
To Bad Debts	5,500
To Net Profit c/d (Balancing Fig.)	1,12,700
	1,75,400		1,75,400

Balance Sheet as on March 31, 2019
Liabilities		Rs.	Assets	Rs.
Capital	2,45,000		Building	1,10,000
Add : Net Profit	1,12,700		Machinery	93,400
Less: Life Insurance Premium	(5,000)		Motor Car	20,000
Less: Drawing	(15,000)	3,37,700	Closing Stock	2,35,000
Reserve Fund		9,000	Debtors	62,800
Loan		78,800	Cash	800
Bank Overdraft		33,000
Creditors		25,000
Bills Payable		38,500
		5,22,000		5,22,000

Setting-off GST:

15,000 + 15,000 = NIL

Solution PQ 29

Trading Account For the year ended March 31, 2019
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Purchases	56,500	By Sales	1,00,700
To Wages	26,000	By Closing Stock	88,500
To Gross Profit c/d (Balancing Fig.)	1,06,700

	1,89,200		1,89,200

Profit and Loss Account For the year ended March 31, 2019
Dr.			Cr.
Particulars	Rs.	Particulars	Rs.
To Salaries and Wages	41,600	By Gross Profit b/d	1,06,700
To Net Profit c/d (Balancing Fig.)	65,100


	1,06,700		1,06,700

Balance Sheet as on March 31, 2019
Liabilities		Rs.	Assets	Rs.
Capital	2,23,100		Building	1,60,000
Add : Net Profit	65,100		Machinery	16,000
Less: Income Tax	(2,000)		Closing Stock	88,500
Less: Drawing	(500)	2,85,700	Debtors	38,700
Creditors		12,500
Output CGST		2,500
Output SGST		2,500

		3,03,200		3,03,200

Setting-off GST:

GST	Input	Output	Total (Input - Output)
CGST	10,000	12,500	(2,500)
SGST	10,000	12,500	(2,500)

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Class 11-commerce T S GREWAL Solutions Accountancy Chapter 18: Financial Statements of Sole Proprietorship

Financial Statements of Sole Proprietorship Exercise 18.62

Solution PQ 1

Solution PQ 2

Solution PQ 3

Solution PQ 4

Solution PQ 5

Financial Statements of Sole Proprietorship Exercise 18.63

Solution PQ 6

Solution PQ 7

Solution PQ 8

Solution PQ 9

Solution PQ 10

Financial Statements of Sole Proprietorship Exercise 18.64

Solution PQ 11

Solution PQ 12

Solution PQ 13

Solution PQ 14

Financial Statements of Sole Proprietorship Exercise 18.65

Solution PQ 15

Solution PQ 16

Solution PQ 17

Financial Statements of Sole Proprietorship Exercise 18.66

Solution PQ 18

Solution PQ 19

Solution PQ 20

Financial Statements of Sole Proprietorship Exercise 18.67

Solution PQ 21

Solution PQ 22

Solution PQ 23

Solution PQ 24

Financial Statements of Sole Proprietorship Exercise 18.68

Solution PQ 25

Solution PQ 26

Solution PQ 27

Financial Statements of Sole Proprietorship Exercise 18.69

Solution PQ 28

Solution PQ 29

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