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11th | Financial Statements of a Sole Proprietorship | Question No. 9 To 12 | Ts Grewal Solution 2022-2023

Question 9:


From the following information, prepare Trading account for the year ended 31st March, 2022:
Adjusted Purchases  ` 5,50,000; Sales  ` 6,25,000; Freight and Carriage Inwards  ` 3,000; Wages  ` 7,000; Freight and Cartage Outwards  ` 2,500; Closing Stock  ` 50,000.

Answer:


Trading Account

for the year ended March 31, 2022

Dr.

 

Cr.

Particulars

 ( `)

Particulars

 ( `)

Purchase (Adjusted)

5,50,000

Sales

6,25,000

Freight and Carriage Inwards

3,000

 

 

Wages

7,000

 

 

Gross Profit (Balancing Figure)

65,000

 

 

 

6,25,000

 

6,25,000

 

 

 

 

 

 

 

 

 

 

Notes:

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

        2. Closing Stock (i.e. Rs 50,000) is not recorded in the Trading Account as it is already adjusted in the amount of Adjusted Purchases.

 

Question 10:


From the following figures, calculate Operating Profit:
 

 

 `

 

 `

Net Profit

1,00,000

Rent Received

10,000

Gain on Sale of Machine

15,000

Interest on Loans

20,000

Donation

2,000

 

 

Answer:


Operating Profit=Net Profit−Rent Received−Gain on Sale of Machine+Interest on Loan−Donation                          

=1,00,000−10,000−15,000+20,000−2,000

=Rs 93,000

Question 11:


From the following, prepare Profit and Loss Account of Sohan Lal as it would appear in the 1st year that ended 31st March, 2022:
 

 

 `

 

 `

Salaries and Wages

30,000

Advertising

10,000

Commission Paid

2,000

Discount Allowed

18,000

Postage and Courier

1,500

Rent Received

17,000

Insurance

3,000

Interest on Investment

15,000

Interest Paid

4,000

Bad Debts

9,000

Carriage Outwards

5,000

Brokerage Paid

950


The Gross Profit was 45% of sales, which amounted to  ` 6,50,000.
Also, pass the Journal entries.

Answer:


Profit and Loss Account

                                                for the year ended March 31, 2022

Dr.

 

Cr.

Particulars

 (Rs)

Particulars

 (Rs)

Salaries and Wages

30,000

Gross Profit (6,50,000 × 45%)

2,92,500

Commission Paid

2,000

Rent Received

17,000

Postage and Telegram

1,500

Interest on Investments

15,000

Insurance

3,000

 

 

Interest Paid

4,000

 

 

Carriage Outwards

5,000

 

 

Advertising

10,000

 

 

Discount Allowed

18,000

 

 

Bad Debts

9,000

 

 

Brokerage Paid

950

 

 

Net Profit (Balancing Figure)

2,41,050

 

 

 

3,24,500

 

3,24,500

 

 

 

 

Question 12:


From the following information, prepare Profit and Loss Account for the year ended 31st March, 2022:
 

 

 `

 

 `

Gross Profit

1,20,000

Discount Received

6,000

Rent

5,000

Printing and Stationery

4,000

Salary

35,000

Legal Charges

10,000

Commission Paid

19,000

Bad Debts

2,000

Interest on Loan

5,000

Loss by Fire

6,000

Advertisement

8,000

Depreciation

4,000

Interest Received

8,000

Input IGST A/c

2,000

Output IGST A/c

1,000

 

 

Answer:


Profit and Loss Account

for the year ended March 31, 2022

Dr.

 

Cr.

Particulars

 ( `)

Particulars

 ( `)

Rent

5,000

Gross Profit

1,20,000

Salary

35,000

Interest Received

8,000

Commission Paid

19,000

Discount Received

6,000

Interest on Loan

5,000

 

 

Advertisement

8,000

 

 

Printing and Stationery

4,000

 

 

Legal Charges

10,000

 

 

Bad Debts

2,000

 

 

Loss by Fire

6,000

 

 

Depreciation

4,000

 

 

Net Profit (Balancing Figure)

36,000

 

 

 

1,34,000

 

1,34,000

 

 

 

 

Note:  `1,000 Input IGST after adjusting against Output IGST will be shown on the asset side of the balance sheet.

 

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