Question 7:
Following are the balances extracted from the books of Narain on 31st March, 2024:
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Particulars |
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Particulars |
(`) |
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Narain's Capital |
3,00,000 |
Sales |
15,00,000 |
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Narain's Drawings |
50,000 |
Sales
Return |
20,000 |
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Furniture
and Fittings |
26,000 |
Discounts
(Dr.) |
16,000 |
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Bank
Overdraft |
42,000 |
Discounts
(Cr.) |
20,000 |
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Creditors |
1,38,000 |
Insurance |
20,000 |
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Business
Premises |
2,00,000 |
General
Expenses |
40,000 |
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Stock
on 1st April, 2023 |
2,20,000 |
Salaries |
90,000 |
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Debtors |
1,80,000 |
Commission
(Dr.) |
22,000 |
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Rent
from Tenants |
10,000 |
Carriage
on Purchases |
18,000 |
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Purchases |
11,00,000 |
Bad
Debts Written off |
8,000 |
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Additional Information:
(i) Closing Stock as on 31st March, 2024 was ` 2,00,600, whereas
its Net Realisable Value (Market Value) was ` 2,05,000.
(ii) Depreciate: Business Premises by `
3,000 and Furniture and Fittings by `
2,500.
(iii) Make a provision of 5% on debtors for doubtful debts.
(iv) Carry forward `
2,000 for unexpired insurance.
(v) Outstanding salary was `
15,000.
Prepare Trading and Profit and Loss Account for the year and Balance Sheet as
at that date.
Answer:
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Trading Account for the year ended March
31, 2024 |
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Dr. |
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Cr. |
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Particulars |
(`) |
Particulars |
(`) |
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Opening
Stock |
2,20,000 |
Sales |
15,00,000 |
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Purchases |
11,00,000 |
Less: Returns |
20,000 |
14,80,000 |
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Carriage
on Purchases |
18,000 |
Closing
Stock |
2,00,600 |
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Gross
Profit |
3,42,600 |
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16,80,600 |
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16,80,600 |
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Note:
As
per the prudence concept, closing stock is taken to be at the market value or
the book value whichever is less.
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Profit & Loss Account for the year ended March
31, 2024 |
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Dr. |
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Cr. |
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Particulars |
(`) |
Particulars |
(`) |
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Commission
|
22,000 |
Gross
Profit |
3,42,600 |
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Insurance
Premium |
20,000 |
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Discount
|
20,000 |
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Less: Prepaid |
2,000 |
18,000 |
Rent
from Tenants |
10,000 |
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Salaries
|
90,000 |
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Add: Outstanding Salaries |
15,000 |
1,05,000 |
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Bad
Debts Written Off |
8,000 |
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Provision
for Doubtful Debts |
9,000 |
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Discount
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16,000 |
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General
Expenses |
40,000 |
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Depreciation
on: |
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Furniture |
2,500 |
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Business Premises |
3,000 |
5,500 |
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Net
Profit |
1,49,100 |
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3,72,600 |
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3,72,600 |
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Balance Sheet as on March 31, 2024 |
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Dr. |
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Cr. |
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Liabilities |
(`) |
Assets |
(`) |
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Bank
Overdraft |
42,000 |
Furniture
& Fittings |
26,000 |
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Creditors |
1,38,000 |
Less: Depreciation |
2,500 |
23,500 |
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Outstanding
Salaries |
15,000 |
Business
Premises |
2,00,000 |
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Capital |
3,00,000 |
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Less: Depreciation |
3,000 |
1,97,000 |
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Less: Drawings |
50,000 |
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Debtors |
1,80,000 |
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Add: Net Profit |
1,49,100 |
3,99,100 |
Less: Provision |
9,000 |
1,71,000 |
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Closing
Stock |
2,00,600 |
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Prepaid
Insurance |
2,000 |
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5,94,100 |
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5,94,100 |
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Question 8:
Following balances are taken from the books of Ramesh. Prepare Trading and Profit and Loss Account and Balance Sheet for the year ended 31st March, 2024 and Balance Sheet as on that date:
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Particulars |
` |
Particulars |
` |
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Capital |
12,00,000 |
Drawings |
2,10,000 |
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Opening
Stock |
4,50,000 |
Plant
and Machinery |
2,40,000 |
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Furniture |
15,000 |
Purchases |
29,50,000 |
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Sales |
43,50,000 |
Insurances |
15,000 |
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Purchases
Return |
40,000 |
Sales
Return |
70,000 |
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Rent |
50,000 |
Trade
Expenses |
20,000 |
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Salaries |
2,40,000 |
Wages |
4,00,000 |
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Bad
Debts |
10,000 |
6%
Investments |
5,00,000 |
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Sundry
Debtors |
4,00,000 |
Sundry
Creditors |
1,90,000 |
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Bills
Payable |
8,000 |
Cash |
1,22,000 |
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Advertisement
Expenses |
60,000 |
Miscellaneous
Income |
12,000 |
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Patents |
48,000 |
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Adjustments:
(i) Closing Stock ` 7,50,000.
(ii) Depreciate Machinery by 10% and Furniture by 20%.
(iii) Wages ` 50,000 and salaries ` 20,000 are outstanding.
(iv) Write
off `
50,000 as further Bad Debts and create 5% Provision for Doubtful Debts. Also,
create a reserve for discount on Debtors @ 2%.
(v) Investments
were made on 1st July, 2023 and no interest has been received so far.
Answer:
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Financial statements of Mr. Niranjan |
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Trading Account for
the year ended March 31, 2024 |
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Dr. |
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Cr. |
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Particulars |
(`) |
Particulars |
(`) |
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Opening Stock |
4,50,000 |
Sales |
43,50,000 |
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Purchases |
29,50,000 |
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Less: Sales Return |
(70,000) |
42,80,000 |
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Less: Purchases Return |
(40,000) |
29,10,000 |
Closing Stock |
7,50,000 |
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Wages |
4,00,000 |
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Add: Outstanding wages |
50,000 |
4,50,000 |
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Gross Profit (Balancing Figure) |
12,20,000 |
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50,30,000 |
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50,30,000 |
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Profit and Loss Account for
the year ended March 31, 2024 |
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Dr. |
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Cr. |
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Particulars |
(`) |
Particulars |
(`) |
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Rent |
50,000 |
Gross Profit |
12,20,000 |
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Salaries |
2,40,000 |
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Add: Outstanding Salaries |
20,000 |
2,60,000 |
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Bad Debts |
10,000 |
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Interest Accrued on Investment |
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Add: Further Bad Debts |
50,000 |
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(5,00,000 × 6% × 9/12) |
22,500 |
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Add: Provision for Doubtful Debts |
17,500 |
77,500 |
Miscellaneous Receipts |
12,000 |
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Advertisement expenses |
60,000 |
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Provision for discount on debtors |
6,650 |
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Insurances |
15,000 |
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Trade Expenses |
20,000 |
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Depreciation on: |
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Machinery |
24,000 |
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Furniture |
3000 |
27,000 |
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Net Profit (Balancing Figure) |
7,38,350 |
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12,54,500 |
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12,54,500 |
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Balance Sheet as
on March 31, 2024 |
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Liabilities |
Amount (`) |
Assets |
Amount (`) |
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Capital |
12,00,000 |
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Fixed Assets |
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Less: Drawings |
(2,10,000) |
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Patents |
48,000 |
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Add: Net Profit |
7,38,350 |
17,28,350 |
Plant and Machinery |
2,40,000 |
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Current Liabilities |
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Less: 10% Depreciation |
(24,000) |
2,16,000 |
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Sundry Creditors |
1,90,000 |
Furniture |
15,000 |
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Wages Outstanding |
50,000 |
Less: 20% Depreciation |
(3,000) |
12,000 |
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Salaries Outstanding |
20,000 |
6% Investment |
5,00,000 |
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Bills Payable |
8000 |
Add: Accrued Interest |
22,500 |
5,22,500 |
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Current Assets |
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Closing Stock |
7,50,000 |
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Debtors |
4,00,000 |
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Less: Further Bad Debts |
(50,000) |
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Less: Provision for Doubtful Debts |
(17,500) |
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3,32,500 |
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Less: Provision for Discount |
(6,650) |
3,25,850 |
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Cash |
1,22,000 |
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19,96,350 |
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19,96,350 |
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Ts Grewal Solution 2024-2025
Class 11th