Question 13: Following is
the Trial Balance of Indramani as on 31st March, 2024:
Debit Balances
|
`
|
Credit Balances
|
`
|
Building
|
27,000
|
Capital
|
60,000
|
Machinery
|
16,500
|
Returns Outward
|
1,100
|
Furniture
|
6,300
|
Sales
|
2,46,700
|
Goodwill
|
27,142
|
Provision for Doubtful Debts
|
6,200
|
Wages
|
31,790
|
Creditors
|
30,160
|
Salaries
|
15,040
|
Bank Loan
|
10,000
|
Freight Inwards
|
2,470
|
|
|
Freight Outwards
|
2,000
|
|
|
Manufacturing Expenses
|
11,000
|
|
|
Insurance
|
3,000
|
|
|
General Expenses
|
6,630
|
|
|
Debtors
|
67,360
|
|
|
Opening Stock
|
29,170
|
|
|
Purchases
|
95,015
|
|
|
Returns Inward
|
3,128
|
|
|
Commission
|
989
|
|
|
Bad Debts
|
1,300
|
|
|
Bank Charges
|
460
|
|
|
Bank Balance
|
7,145
|
|
|
Cash
|
721
|
|
|
|
|
3,54,160
|
|
3,54,160
|
Prepare Trading
and Profit & Loss Account for the year ending 3lst March, 2024 and Balance
Sheet as on that date after making the following adjustments:
(i) Value of
Closing Stock ` 6,100.
(ii) Depreciate
machinery @ 10% p.a.
(iii) Create
Provision for Doubtful Debts at 5% on debtors.
(iv) Commission
payable to manager at 10% on net profit.
(v) On 25th
March, 2024, goods costing ` 1,500 and furniture costing ` 3,000 were
destroyed by fire, insurance company has accepted claims of ` 1,000 for
goods and ` 2.000 for furniture.
Answer:
|
Trading
Account for
the year ended March 31, 2024 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Particulars |
(`) |
Particulars |
(`) |
||
Opening Stock
|
29,170
|
||||
Purchases
|
95,015
|
Sales
|
2,46,700
|
||
Returns Outward
|
(1,100)
|
Returns Inward
|
(3,128)
|
2,43,572 |
|
Loss by fire
|
(1,500)
|
92,415
|
|||
Freight Inwards
|
2,470
|
Closing
Stock |
6,100 |
||
Wages
|
31,790
|
|
|||
Manufacturing Expenses
|
11,000
|
|
|||
Gross Profit
|
82,827
|
||||
|
|
2,49,672 |
|
2,49,672 |
||
|
|
|
|
|||
|
Profit
& Loss Account for
the year ended March 31, 2024 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Particulars |
Amount (`) |
Particulars |
Amount (`) |
||
Salaries
|
15,040
|
Gross Profit
|
82,827
|
||
Freight Outwards
|
2,000
|
Provision for Doubtful Debts
|
6,200
|
||
Insurance
|
3,000
|
||||
General Expenses
|
6,630
|
||||
Commission
|
989
|
||||
Bad Debts
|
1,300
|
||||
|
Provision
for D.D. |
3,368 |
||||
Bank Charges
|
460
|
||||
Depreciation on Machinery
|
1,650 |
||||
|
Loss
of stock by fire |
500 |
||||
|
Loss
of stock by furniture |
1,000 |
||||
|
Manager
commission |
4,826 |
||||
|
Net
profit |
48,264 |
||||
|
89,027 |
|
89,027 |
|||
|
|
|||||
|
Balance
Sheet as on
March 31, 2024 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Liabilities |
Amount (`) |
Assets |
Amount (`) |
||
Bank Loan
|
10,000
|
Furniture
|
6,300
|
||
Creditors
|
30,160
|
Less: Loss by Fire |
3,000 |
3,300 |
|
Capital
|
60,000
|
Building
|
27,000
|
||
Debtors
|
67,360
|
||||
|
Add: Net Profit |
48,264 |
1,08,264 |
Less: Provision |
3,368 |
63,992 |
Cash
|
721
|
||||
Bank Balance
|
7,145
|
||||
|
Manager
commission |
4,826 |
Machinery
|
16,500
|
||
|
Less: Depreciation |
1,650 |
14,850 |
|||
|
Insurance
company |
|||||
|
On Goods |
1,000 |
||||
|
On Furniture |
2,000 |
||||
|
|
Closing
Stock |
6,100 |
|||
|
|
Goodwill
|
27,142
|
|||
|
|
1,53,250 |
1,53,250 |
|||
|
|
|
|
|
||
Question 14:
On 31st March, 2024 the following Trial
Balance was prepared from the books of Manpreet:
Debit
Balances
|
`
|
Credit
Balances
|
`
|
Furniture
|
3,400
|
Capital
|
1,00,000
|
Building
|
21,700
|
Discount received
|
2,000
|
Drawings
|
4,200
|
Bank Loan
|
10,000
|
Cash at Bank
|
2,470
|
Purchases Return
|
970
|
Wages
|
31,250
|
Sales
|
1,91,940
|
Discount Allowed
|
2,640
|
Sundry Creditors
|
12,450
|
Bank Charges
|
90
|
Provision for Doubtful Debts
|
800
|
Salaries
|
5,610
|
|
|
Purchases
|
1,32,700
|
|
|
Opening Stock
|
40,200
|
|
|
Cash in Hand
|
2,650
|
|
|
Sales Return
|
1,250
|
|
|
Carriage Inwards
|
3,400
|
|
|
Machinery
|
14,600
|
|
|
Sundry Debtors
|
43,800
|
|
|
Bad Debts
|
1,000
|
|
|
Insurance
|
1,250
|
|
|
Rent
|
2,450
|
|
|
Advertisement
|
3,500
|
|
|
|
|
3,18,160
|
|
3,18,160
|
Prepare Trading
and Profit & Loss Account for the year ended 31st March, 2024 and also the
Balance Sheet as at that date after making the following adjustments:
(i) Closing
Stock at cost was `35,000 whereas its net realisable
value (market value) was 30,000.
(ii) A new
machine was purchased for ` 3,000 on 1st April, 2023 but it
was not paid for and entry was not recorded in the books.
(iii) Wages
include `500 paid for the installation of
machinery.
(iv) Provision
for Doubtful Debts was raised to ` 1,400 and further bad debts of ` 300 were written
off.
(v) Fire broke
out on 20th March, 2024 and destroyed stock to the value of ` 8,000. The
insurance company admitted claim for loss of stock of ` 5,000 and the
amount was paid on 15th April, 2024.
(vi)
Outstanding wages were ` 700 while outstanding salaries
were ` 500.
(vii) Prepaid
insurance was ` 250 and prepaid advertisement ` 500.
(viii)
Machinery was depreciated by 10% and furniture by 15%.
Answer:
|
|
Trading
Account for
the year ended March 31, 2024 |
|||||
|
Dr. |
|
|
|
Cr. |
||
|
Particulars |
|
(`) |
Particulars |
(`) |
||
Opening Stock
|
|
40,200
|
||||
Purchases
|
1,32,700
|
Sales
|
1,91,940
|
|||
Purchases Return
|
(970)
|
Sales Return
|
1,250
|
1,90,690 |
||
Loss by fire
|
(8,000)
|
1,23,730
|
Closing
Stock |
30,000 |
||
Carriage Inwards
|
|
3,400
|
||||
Wages
|
31250
|
|
||||
Add: O/s wages
|
700
|
|||||
Less: Installation exp. On machine
|
(500)
|
31,450
|
||||
Gross Profit
|
|
21,910
|
|
|||
|
|
|
2,20,690 |
|
2,20,690 |
||
|
|
|
|
|
|||
|
|
Profit
& Loss Account for
the year ended March 31, 2024 |
|||||||
|
Dr. |
|
|
|
Cr. |
||||
|
Particulars |
|
Amount (`) |
Particulars |
Amount (`) |
||||
Discount Allowed
|
|
2,640
|
Gross Profit
|
21,910
|
||||
Bank Charges
|
|
90
|
Discount received
|
2,000
|
||||
Salaries
|
5,610
|
|||||||
Add: o/s salary
|
500
|
6,110
|
||||||
General Expenses
|
|
|||||||
Insurance
|
1,250
|
|||||||
Less: Prepaid
|
(250)
|
1,000
|
||||||
Less:
|
|
|||||||
Bad Debts
|
1,000
|
|||||||
Add: Bad Debts
|
300
|
|||||||
1,300
|
||||||||
|
Prov.
for D.D.(New) |
1,400 |
|||||||
|
2,700 |
||||||||
|
Prov.
for D.D.(Old) |
(800) |
1,900 |
||||||
Rent
|
|
2,450
|
||||||
Advertisement
|
3,500
|
|||||||
Less: Prepaid
|
(500)
|
3,000
|
||||||
|
Loss
of stock by fire |
3,000 |
|||||||
|
(8,000-5,000) |
||||||||
|
Depreciation
on furniture |
|
510 |
||||||
|
Depreciation
on Machinery |
|
18,10 |
||||||
|
Net
profit |
|
1,400 |
||||||
|
|
||||||||
|
|
23,910 |
|
23,910 |
|||||
|
|
|
|||||||
|
Balance
Sheet as on
March 31, 2024 |
|||||
|
Dr. |
|
|
Cr. |
||
|
Liabilities |
Amount (`) |
Assets |
Amount (`) |
||
Bank Loan
|
10,000
|
Furniture
|
3,400
|
||
Sundry Creditors
|
12,450
|
Less: Depreciation |
(510) |
2,890 |
|
Capital
|
1,00,000
|
Building
|
21,700
|
||
Drawings
|
(4,200)
|
Sundry Debtors
|
43,800
|
||
Less: new Bad Debts
|
(300)
|
||||
|
Add: Net Profit |
1,400 |
97,200 |
Less: Provision |
(1,400) |
42,100 |
Cash
|
|||||
Creditor of Machinery
|
3,000 |
Cash at Bank
|
2,470
|
||
|
Outstanding
wages |
700 |
Machinery
|
14,600
|
||
|
Outstanding
salary |
500 |
Add: new
|
3,000
|
||
Add: wages
|
500
|
||||
18,100
|
|||||
|
Less: Depreciation |
(18,10) |
16,290 |
|||
|
Insurance
company |
5,000 |
||||
|
Prepaid
Insurance |
250 |
||||
|
prepaid
advertisement |
500 |
||||
|
Closing
Stock |
30,000 |
||||
Cash in Hand
|
2,650
|
||||
|
|
1,23,850 |
1,23,850 |
|||
|
|
|
|
|
||
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Ts Grewal Solution 2024-2025
Class 11th