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11th | Financial Statements of a Sole Proprietorship | Question No. 5 To 8 | Ts Grewal Solution 2022-2023

Question 5:


Ascertain Gross Profit from the following:

 

 `

 

 `

Opening Stock

2,00,000

Carriage on Sales

30,000

Closing Stock

1,80,000

Office Rent

58,000

Purchases

8,50,000

Sales

14,07,000

Carriage on Purchases

23,000

 

 

Answer:


Trading Account

Dr.

 

Cr.

Particulars

 (Rs)

Particulars

 (Rs)

Opening Stock

2,00,000

Sales

14,07,000

Purchases

8,50,000

Closing Stock

1,80,000

Carriage on Purchases

23,000

 

 

Gross Profit (Balancing Figure)

5,14,000

 

 

 

15,87,000

 

15,87,000

 

 

 

 

Note: Carriage on Sales and Office Rent are the Indirect Expenses, therefore, these are not considered to compute the amount of Gross Profit.

Question 6:


From the following information, prepare Trading Account for the year ended 31st March, 2022:
 

 

 `

 

 `

Stock on 1st April, 2018

40,000

Returns Outward

80,000

Purchases

4,00,000

Wages and Salaries

50,000

Sales

3,80,000

Returns Inward

20,000

Carriage Inwards

20,000

Stock on 31st March, 2022

1,30,000


Net Realisable Value (Market Value) of stock as on 31st March, 2022 was  ` 1,20,000.

Answer:


Trading Account

for the year ended March 31, 2022

Dr.

 

Cr.

Particulars

 ( `)

Particulars

 ( `)

Opening Stock

40,000

Sales

3,80,000

 

Purchases

4,00,000

 

Less: Return Inwards

(20,000)

3,60,000

Less: Return Outwards

(80,000)

3,20,000

Closing Stock

1,20,000

Carriage Inwards

20,000

 

 

Wages and Salaries

50,000

 

 

Gross Profit (Balancing Figure)

50,000

 

 

 

4,80,000

 

4,80,000

 

 

 

 

 

 

 

 

 

 

 

 

Note: Closing Stock is taken at its Market Price (i.e. Rs 1,20,000) instead of its Cost (i.e. Rs 1,30,000). This is because, as per Principle of Conservatism, Closing stock is taken at Cost or Market Price whichever is less.

Question 7:


From the following information, prepare Trading Account for the year ended 31st March, 2022:
Adjusted Purchases  ` 6,60,000; Sales  ` 7,44,000; Closing Stock  ` 50,400; Freight and Carriage Inwards  ` 3,600; Wages  ` 6,000; Freight and Cartage Outwards  ` 2,000.

Answer:


Trading Account

for the year ended March 31, 2022

Dr.

 

Cr.

Particulars

 ( `)

Particulars

 ( `)

Purchase (Adjusted)

6,60,000

Sales

7,44,000

Freight and Carriage Inwards

3,600

 

 

Wages

6,000

 

 

Gross Profit (Balancing Figure)

74,400

 

 

 

7,44,000

 

7,44,000

 

 

 

 

 

 

 

 

 

 

Notes:

        1. Freight and Carriage Outwards are indirect expenses, therefore it is not recorded in the Trading Account.

        2. Closing Stock (i.e. Rs 50,400) is not recorded in the Trading Account as it is already adjusted in the amount of Adjusted Purchases.

Question 8:


Following balances appear in the Trial Balance of a firm as on 31st March, 2022:

 

 

 `

Opening Stock:

Raw Material

80,000

 

Finished Goods

1,40,000

Purchases

 

3,60,000

Sales

 

7,00,000

Returns:

Purchases

10,000

 

Sales

6,000

Wages

 

1,30,000

Factory Expenses

 

90,000

Freight:

Inwards

20,000

 

Outwards

30,000

At the end of the accounting period, stock was:

 

Raw Materials

 

70,000

Work-in-Process

 

20,000

Finished Goods

 

1,10,000


Prepare Trading Account of the firm.

Answer:


Financial Statement of….

Trading Account 

for the year ended March 31,2022

Dr.

 

Cr.

Particulars 

 ( `)

Particulars

 ( `)

Opening Stock

 

Sales

7,00,000

 

Raw Materials

80,000

 

Less: Return Inwards

6,000

6,94,000

Finished Goods

1,40,000

2,20,000

Closing Stock

 

Purchases

3,60,000

 

Raw Materials

70,000

 

Less: Return Outwards

10,000

3,50,000

Work-in-Progress

20,000

 

Freight Inwards

20,000

Finished Goods

1,10,000

2,00,000

Wages

1,30,000

 

 

Factory Expenses

90,000

 

 

Gross Profit (Balancing Figure)

84,000

 

 

 

8,94,000

 

8,94,000

 

 

 

 

 

 

 

 

 

 

 

 

Note: Freight outwards is an indirect expense. It will be recorded in Profit & Loss A/c.

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