11th | Financial Statements of a Sole Proprietorship | Question No. 13 To 16 | Ts Grewal Solution 2022-2023

Question 13:

From the following particulars, prepare Balance Sheet as at 31st March, 2022:

	Dr. (`)	Cr. (`)
Capital	…	4,00,000
Drawings	44,000	…
Debtors and Creditors	64,000	42,000
Cash in Hand	3,600	…
Cash at Bank	72,000	…
Plant	1,00,000	…
Furniture	37,000	…
Net Profit	…	16,600
General Reserve	…	10,000
Closing Stock	1,48,000	…
Total	4,68,600	4,68,600

Answer:

Balance Sheet as on March 31, 2022
Liabilities		(`)	Assets	(`)
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

Question 14:

From the following information, prepare Balance Sheet of a trader as at 31st March, 2022 arranging the assets and liabilities–(i) in order of permanence and (ii) in order of liquidity:

	`		`
Goodwill	20,000	Bank	20,000
Capital	1,80,000	Sundry Creditors	63,000
Liabilities for Expenses	1,200	Bills Receivable	13,000
Cash in Hand	1,000	Plant and Machinery	40,000
Investment	20,000	Provision for Doubtful Debts	2,500
Bills Payable	10,700	Closing Stock	80,000
Net Profit	92,600	Furniture	16,000
Sundry Debtors	50,000	Drawing	30,000
Land and Building	60,000

Answer:

(I) Balance Sheet in Order of Permanence

Balance Sheet as on March 31, 2022
Liabilities		(`)	Assets		(`)
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
			Bill 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, 2022
Liabilities		Amount (`)	Assets		Amount (`)
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
			Good will		20,000
		3,17,500			3,17,500

Question 15:

From the Balance Sheet given below, calculate:
(i) Fixed Assets (ii) Current Assets
(iii) Current Liabilities (iv) Working Capital

BALANCE SHEET as at 31^st March, 2022
Liabilities	`	Assets	`
Trade Creditors	42,000	Stock in Hand	48,000
Expenses Accrued	3,200	Debtors	36,000
Bank Overdraft	4,800	Prepaid Expenses	400
Long-Term Loan	20,000	Goodwill	20,000
Interest on Loan	1,000	Land	20,000
Capital	93,400	Plant	32,000
		Furniture	8,000
	1,64,400		1,64,400

Answer:

(i)Fixed Assets=Land+Plant+Furniture+Goodwill

=20,000+32,000+8,000+20,000=Rs 80,000(ii)

(ii) Current Assets=Stock+Debtors+Prepaid Expenses

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

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

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

(iv) Working Capital=Current Assets−Current Liabilities

=84,400−51,000=Rs 33,400

Question 16:

Prepare Trading and Profit and Loss Account and Balance Sheet of Jagat Shah as at 31st March, 2022 from the following balances:

	`		`
Capital (Cr.)	3,60,000	Salaries	60,000
Machinery	70,000	General Expenses	20,000
Sales	8,20,000	Rent	50,000
Purchases	4,00,000	Purchases Return	5,000
Sales Return	10,000	Debtors	3,00,000
Stock on 1st April, 2018	1,00,000	Cash	40,000
Drawings	40,000	Carriage Outwards	20,000
Wages	1,00,000	Advertising	20,000
Carriage Inwards	5,000	Creditors	50,000

The Closing Stock was valued at ` 2,00,000.

Answer:

Financial Statements of Jagat Shah
Trading Account for the year ended March 31, 2022
Dr.									Cr.
Particulars			Amount (`)		Particulars			Amount (`)
Opening Stock			1,00,000		Sales	8,20,000
Purchases	4,00,000				Less: Sales Return	(10,000)		8,10,000
Less: Purchases Return	(5,000)		3,95,000		Closing Stock			2,00,000
Wages			1,00,000
Carriage Inwards			5,000
Gross Profit (Balancing Figure)			4,10,000
			10,10,000					10,10,000


Profit and Loss Account for the year ended March 31, 2022
Dr.								Cr.
Particulars		Amount (`)		Particulars			Amount (`)
Salaries		60,000		Gross Profit			4,10,000
General Expenses		20,000
Rent		50,000
Carriage Outwards		20,000
Advertising		20,000
Net Profit (Balancing Figure)		2,40,000
		4,10,000					4,10,000

Balance Sheet as on March 31, 2022
Liabilities		Amount (`)	Assets	Amount (`)
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