Question 5:
From the following Trial Balance of
Shradha as on 31st March, 2024, prepare Trading and
Profit and Loss Account and Balance Sheet:
|
Heads
of Accounts |
Debit Balances |
Credit Balances |
|
|
Capital |
|
… |
8,00,000 |
|
Drawings |
|
1,80,000 |
… |
|
Sales |
|
… |
15,50,000 |
|
Purchases |
|
8,26,000 |
… |
|
Stock
(1st April, 2023) |
|
4,20,000 |
… |
|
Returns
Outward |
|
… |
1,60,000 |
|
Carriage
Inwards |
|
12,000 |
… |
|
Wages |
|
40,000 |
… |
|
Power |
|
60,000 |
… |
|
Machinery |
|
5,00,000 |
… |
|
Furniture |
|
1,40,000 |
… |
|
Rent |
|
2,20,000 |
… |
|
Salary |
|
1,50,000 |
… |
|
Insurance |
|
36,000 |
… |
|
8%
Bank Loan |
|
… |
2,50,000 |
|
Debtors |
|
20,6000 |
… |
|
Creditors |
|
… |
1,89,000 |
|
Cash
in Hand |
|
15,000 |
… |
|
Total |
|
28,05,000 |
28,05,000 |
|
|
|
|
|
Adjustments:
(i) Closing Stock `6,40,000.
(ii) Wages outstanding `24,000.
(iii) Bad Debts ` 6,000.
(iv) Provision for Doubtful Debts to be 5%.
(v) Rent is paid for 11 months.
(vi) Insurance premium is paid per annum, ended 31st
May, 2024.
(vii) Loan from the bank was taken on 1st October, 2023.
(viii) Provide Depreciation on machinery @ 10% and on Furniture @ 5%.
Answer:
|
Financial statement of M/s. Shradha& Sons |
||||||
|
Trading Account for
the year ended March 31, 2024 |
||||||
|
Dr. |
|
Cr. |
||||
|
Particulars |
(`) |
Particulars |
(`) |
|||
|
Opening Stock |
4,20,000 |
Sales |
15,50,000 |
|||
|
Purchases |
8,26,000 |
|
|
|
||
|
Less: Return Outwards |
(16,000) |
8,10,000 |
|
|
||
|
Carriages Inwards |
12,000 |
Closing Stock |
6,40,000 |
|||
|
Wages |
40,000 |
|
|
|||
|
Add: Outstanding Wages |
24,000 |
64,000 |
|
|
||
|
Power |
60,000 |
|
|
|||
|
Gross Profit (Balancing Figure) |
8,24,000 |
|
|
|||
|
|
21,90,000 |
|
21,90,000 |
|||
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
Profit and Loss Account for
the year ended March 31, 2024 |
||||
|
Dr. |
|
|
Cr. |
|
|
Particulars |
(`) |
Particulars |
(`) |
|
|
Rent |
2,20,000 |
|
Gross Profit |
8,24,000 |
|
Add: Outstanding for One month (22,000/11) |
20,000 |
2,40,000 |
|
|
|
Salary |
1,50,000 |
|
|
|
|
Insurance |
36,000 |
|
|
|
|
Less: Prepaid 2 month(3,600 × 2/12) |
(6,000) |
30,000 |
|
|
|
Outstanding Interest on Bank Loan (25,000 × 8% × 6/12) |
10,000 |
|
|
|
|
Bad Debts |
6,000 |
|
|
|
|
Add: Provision for Doubtful Debts |
10,000 |
16,000 |
|
|
|
Depreciation on: |
|
|
|
|
|
Machinery |
50,000 |
|
|
|
|
Furniture |
7,000 |
57,000 |
|
|
|
Net Profit (Balancing Figure) |
3,21,000 |
|
|
|
|
|
8,24,000 |
|
8,24,000 |
|
|
|
|
|
|
|
|
Balance Sheet as
on March 31, 2024 |
|||||
|
Liabilities |
(`) |
Assets |
(`) |
||
|
Capital |
8,00,000 |
|
Fixed Assets |
|
|
|
Add: Net Profit |
3,21,000 |
|
Machinery |
5,00,000 |
|
|
Less: Drawings |
(1,80,000) |
9,41,000 |
Less: 10% Depreciation |
(50,000) |
4,50,000 |
|
8% Bank Loan |
2,50,000 |
|
Furniture |
1,40,000 |
|
|
Add: Outstanding Interest |
10,000 |
2,60,000 |
Less: 5% Deprecation |
(7,000) |
1,33,000 |
|
Current Liabilities |
|
Current Assets |
|
||
|
Creditors |
1,89,000 |
Closing Stock |
6,40,000 |
||
|
Wages Outstanding |
24,000 |
Debtors |
2,06,000 |
|
|
|
Rent Outstanding |
20,000 |
Less: Bad Debts |
(6,000) |
|
|
|
|
|
Less: 5% Provision for doubtful Debts |
(10,000) |
1,90,000 |
|
|
|
|
Prepaid Insurance |
6,000 |
||
|
|
|
Cash in hand |
15,000 |
||
|
|
14,34,000 |
|
14,34,000 |
||
|
|
|
|
|
||
Question 6:
Prepare
Trading and Profit and Loss Account for the year ended 31st March, 2024 and
Balance Sheet as at that date from the following balances taken from the
books of Vijay on 31st March, 2024 after
giving effect to the following adjustments:
(a) Stock as on 31st March, 2024 was valued at ` 2,30,000.
(b) Write off further ` 1,800 as Bad Debts and maintain the Provision for Doubtful
Debts at 5%.
(c) Depreciate Machinery at 10%.
(d) Provide ` 7,000 as outstanding interest on loan.
|
Particulars |
` |
Particulars |
` |
|
Capital |
2,45,000 |
Loan |
78,800 |
|
Drawings |
20,000 |
Sales |
6,53,600 |
|
General
Expenses |
47,400 |
Purchases |
4,70,000 |
|
Building |
1,10,000 |
Motor
Car |
20,000 |
|
Machinery |
93,400 |
Provision
for Doubtful Debts |
9,000 |
|
Stock
on 1st April, 2023 |
1,62,000 |
Commission
(Cr.) |
13,200 |
|
Insurance |
13,150 |
Car
Expenses |
18,000 |
|
Wages |
72,000 |
Bills
Payable |
38,500 |
|
Debtors |
62,800 |
Cash |
800 |
|
Creditors |
25,000 |
Bank
Overdraft |
33,000 |
|
Bad
Debts |
5,500 |
Charity |
1,050 |
Answer:
|
Financial Statement of Vijay Kumar |
|||
|
Trading Account for
the year ended March 31, 2024 |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
(`) |
Particulars |
(`) |
|
Opening Stock |
1,62,000 |
Sales |
6,53,600 |
|
Purchases |
4,70,000 |
Closing Stock |
2,30,000 |
|
Wages |
72,000 |
|
|
|
Gross Profit (Balancing Figure) |
1,79,600 |
|
|
|
|
8,83,600 |
|
8,83,600 |
|
|
|
|
|
|
Profit and Loss Account for
the year ended March 31, 2024 |
||||||
|
Dr. |
|
Cr. |
||||
|
Particulars |
(`) |
Particulars |
(`) |
|||
|
Taxes and Insurance |
13,150 |
Gross Profit |
1,79,600 |
|||
|
Bad Debts |
5,500 |
|
Commission |
13,200 |
||
|
Add: Further Bad Debts |
1,800 |
|
|
|
||
|
Add: Provision for Doubtful Debts |
3,050 |
|
|
|
||
|
|
10,350 |
|
|
|
||
|
Less: Exiting Provision |
9,000 |
1,350 |
|
|
||
|
Car Expenses |
18,000 |
|
|
|||
|
Charity |
1,050 |
|
|
|||
|
Depreciation on Machinery |
9,340 |
|
|
|||
|
Outstanding Interest on Loan |
7,000 |
|
|
|||
|
General Expenses |
47,400 |
|
|
|||
|
Net Profit (Balancing Figure) |
95,510 |
|
|
|||
|
|
1,92,800 |
|
1,92,800 |
|||
|
|
|
|
|
|||
|
Balance Sheet as
on March 31, 2024 |
|||||
|
Liabilities |
(`) |
Assets |
(`) |
||
|
Capital |
2,45,000 |
|
Fixed Assets |
|
|
|
Add: Net Profit |
95,510 |
|
Building |
1,10,000 |
|
|
Less: Drawings |
(20,000) |
3,20,510 |
Machinery |
93,400 |
|
|
Loan |
78,800 |
|
Less:10% Depreciation |
9,340 |
84,060 |
|
Add: Outstanding Interest |
7,000 |
85,800 |
Motor Car |
20,000 |
|
|
Current Liabilities |
|
Current Assets |
|
||
|
Creditors |
25,000 |
Closing Stock |
2,30,000 |
||
|
Bills Payable |
38,500 |
Debtors |
62,800 |
|
|
|
Bank Overdraft |
33,000 |
Less: Bad Debts |
(1,800) |
|
|
|
|
|
Less: 5% Provision for Doubtful Debts |
(3,050) |
57,950 |
|
|
|
|
Cash |
800 |
||
|
|
5,02,810 |
|
5,02,810 |
||
|
|
|
|
|
||
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Ts Grewal Solution 2024-2025
Class 11th