TS Grewal Class 11 Solutions for Accountancy Chapter 14

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Class 11 Accountancy Chapter 14 – Adjustments in Preparation of Financial Statements

Question 1:

Dr. Profit & Loss for till March 31st, 2018 Cr.
Particulars Particulars
To Salaries
To Repairs
To Rent 4,500
And: Unpaid Rent 500
8,000
1,900
5,000
By Gross Profit b/d
By Net Loss c/d
10,900
24,900
To Bad Debts 5,000
To Depreciation On:
Machine & Plant 12,000
Vehicle Delivery 3,900
15,900
35,800 35,800

 

Question 2:

Arrange Profit & Loss and Trading Account till March 31st, 2018

Particulars Particulars
Capital
Creditor Returns
Outward Sales
Sales
Bills Payable
Machine & Plant
Sundry Debtor
Drawing
Purchase
Returns Inward
1,00,000
12,000
5,000
1,64,000
5,000
40,000
24,000
10,000
1,05,000
3,000
Wages
Bank
Repairs
On April 1st, 2017 stock available
Rent
Manufacturing Expenses
Trade Expenses
Bad Debts
Carriage
Power & Fuel
50,000
10,000
500
20,000
4,000
8,000
7,000
2,000
1,500
1,000

Added Information:

(i) Stock at 14,500 on closing

(ii) Plant & Machine Depreciation ₹4,000

(iii) Bad Debts are written off ₹5,000

(iv) Repair due amount ₹500

Solution:

Dr. Trading Account till March 31st, 2018 Cr.
Particulars Particulars
To Opening Stock
To Purchase 1,05,000
Less: Return Outward 5,000
To Wages
To Manufacturing Expenses
To Carriage
To Gross Profit c/d
20,000
1,00,000
50,000
8,000
1,500
1,000
By Sales 1,64,000
Less: Return Inward 3,000
By Closing Stock
By Gross Loss c/d
(Balancing Fig.)
1,61,000
14,500
5,000
1,80,500 1,80,500

 

Dr. Profit & Loss till March 31st, 2018 Cr.
Particulars Particulars
To Gross Loss b/d
To Repairs 500
And: Unpaid Rent 400
5,000
900
By Net Loss c/d
(Balancing Fig.)
27,900
To Rent 4,000
To Miscellaneous Expenses
To Bad Debts 2,000
Add:Added Bad Debts 5,000
7,000
7,000
To Depreciation On:
Machine & Plant
4,000
27,900 27,900

 

Question 3:

Arrange Trading and Balance Sheet till March 31st, 2018.

Machinery
Bank cash
Hand cash
Wages
Purchase
On April 1st, 2017 stock available
Sundry Debtors
Bills Receivable
Rent Commission
General
Expenses
Salaries
4,00,000
1,00,000
50,000
1,00,000
8,00,000
6,00,000
4,40,000
2,90,000
45,000
25,000
80,000
50,000
Capital
Sales
Sundry Creditors
Interest Received
9,00,000
16,00,000
4,50,000
30,000
29,80,000 29,80,000

Added Information.

(i) Salaries due were ₹25,000

(ii) Machine Depreciation ₹10%

(iii) Due wages were ₹5,000

(iv) Prepaid Rent ₹10,000

(v) capital Interest 5% p.a

(vi) Stock on March 31st, 2018 ₹8,00,000

Solution:

Dr. Trading Account till March 31st, 2018 Cr.
Particulars Particulars
To Opening Stock
To Wages 1,00,000
Add: Due wages 5,000
To Purchase
By Gross Profit c/d
(Balancing Fig.)
6,00,000
1,05,000
8,00,000
8,95,000
By Sales
By Closing Stock
16,00,000
8,00,000
24,00,000 24,00,000

 

Balance Sheet till March 31st, 2018
Liabilities Assets
Capital 9,00,000
Add: Capital Interest 45,000
Add : Net Profit 6,05,000
15,50,000 Fixed Assets
Machine 4,00,000
Less: Depreciation 10% 40,000
3,60,000
Current Liabilities
Sundry Creditors
Due Salary
Due Wages
4,50,000
45,000
5,000
Current Asset
Closing Stock
Sundry Debtors
Rent Prepaid
Bank cash
Receivable Bills
Cash in Hand
8,00,000
4,40,000
10,000
1,00,000
2,90,000
50,000
20,50,000 20,50,000

 

Question 4:

From the below-mentioned trial balance of M/s Shakti till March 31st, 2018. Arrange Profit & Loss and Trading Account.

Heads of Account Dr. (₹) Cr. (₹)
Capital
Drawings
Sales
Purchase
On April 1st, 2017 stock available
Return Outward
Carriage Inward
Wages
Power
Machinery
Furniture
Rent
Salary
Insurance
Bank Loan 8%
Debtors
Creditors
Cash in Hand
18,000
82,600
42,000
1,200
4,000
6,000
50,000
14,000
22,000
15,000
3,600
20,600
1,500
80,000
1,55,000
1,600
25,000
18,900
2,80,500 2,80,500

 

Few other added points are given below.

(i) Stock ₹64,000 was on closing

(ii) Due wages ₹2,400

(iii) Bad Debts ₹600

(iv) Doubtful Debt provision to be 5%

(v) Paid 11 months rent

(vi) Paid insurance premium per annum, ended 31st May 2018

(vii) On 1st October 2017, a loan was taken from a bank.

(viii) Machine depreciation @10% and on Furniture @5%

Solution:

Financial statement of M/s Shakti
Dr. Trading Account till March 31st, 2018 Cr.
Particulars Particulars
To Opening Stock
To Purchase 82,600
Less: Return Outward 1,600
To Carriage Inward
To Wages 4,000
Add: Due Wages 2,400
To Power
To Gross Profit c/d
(Balancing Fig.)
42,000
81,000
1,200
6,400
6,000
82,400
By Sales
By Closing Stock
1,55,000
64,000
2,19,000 2,19,000

 

Dr. Profit & Loss till March 31st, 2018 Cr.
Particulars Particulars
To Salary
To Rent 22,000
Add: O/s for 1 month 2,000
(22,000×11)
To O/s bank loan interest
(25,000×8%x6/12)
To Bad Debts 600
Add: Provision for 1,000
doubtful debts
To Insurance 3,600
Less: Prepaid 2 months (600)
(3,600 x 2/12)
To Depreciation on:
Machine 5000
Furniture 700
To Net Profit c/d
(Balancing Fig.)
15,000
24,000
1,000
1,600
3,000
5,700
32,100
By Gross Profit b/d 82,400
82,400 82,400

 

Question 5:

From the below-mentioned trial balance till March 31st, 2018 . Arrange Trading and account.

Particulars Dr. (₹) Particulars Cr. (₹)
On April 1st, 2017 stock available
Furniture
Plant & Machinery
Debtors
Wages
Salaries
Bad Debts
Purchase
Electricity charges
Telephone charges
General Expenses
Postage Expenses
Returns Inward
Insurance Premium
Cash in Hand
Cash in Bank
25,000
8,000
1,50,000
30,000
12,000
20,000
1,000
1,20,000
1,200
2,400
3,000
1,800
900
1,500
2,500
40,000
Sales
Commission
Returns Outward
Creditors
Capital
2,27,800
500
1,000
40,000
1,50,000
4,19,300 4,19,300

 

Added requirement

(i) Stock ₹7,000 on closing

(ii) Wages due liabilities ₹600 and salaries ₹1,400

(iii) Depreciation on all fixed assets @ 5%

(iv) Plant & Machine machine purchased @ ₹10,000 on1st October, 2017

(v) ₹200 advance paid for insurance premium

Solution:

Dr. Trading Account Cr.
Particulars Particulars
Opening Stock
Wages 1,200
Add: Due wages 600
Purchase 1,20,000
Less: Return 1,000
25,000
12,600
1,19,000
77,300
Sales 2,27,800
Less: Returns 900
Closing Stock
2,26,000
7,000
2,33,900 2,33,900

 

Question 6:

From the below-mentioned balance extracted from Nalia’s book till March 31st, 2018 . Arrange Trading account.

Particulars Particulars
Nalia’s Capital
Nalia’s Drawings
Furniture & Fittings
Bank Overdraft
Creditors
Business Premises
On April 1st, 2017 stock available
Debtors
Rent from Tenants
Purchase
3,00,000
50,000
26,000
42,000
1,38,000
2,00,000
2,20,000
1,80,000
10,000
11,00,000
Sales
Sales Return
Discount (Dr.)
Discount (Cr.)
Insurance
General Expenses
Salaries
Commission (Dr.)
Carriage on Purchase
Bad Debts written off
15,00,000
20,000
16,000
20,000
20,000
40,000
90,000
22,000
18,000
8,000

 

Added Information.

(i) Stock ₹2,00,600 on closing

(ii) Depreciation: business premises ₹3,000 and furniture & Fittings ₹2,500

(iii) Doubtful Debt 5%

(iv) Carry forward ₹2000 for unexpired insurance

(v) Salary due ₹15,000

Solution:

Dr. Trading Account Cr.
Particulars Particulars
Opening Stock
Purchase
Carriage on Purchase
Gross Profit
2,20,000
11,00,000
18,000
3,42,000
Sales 15,00,000
Less: Return 20,000
Closing Stock
14,80,000
2,00,600
16,80,600 16,80,600

 

Question 7:

From the below-mentioned balance extracted from Nilu ’s book till March 31st, 2018. Arrange Trading account.

Particulars Particulars
Capital
Opening Stock
Furniture
sales
Purchase Return
Rent
Salaries
Bad Debts
Sundry
Debtors Bill Payable
Advertisement
Patent
1,20,000
45,000
1,500
4,35,000
4,000
5,000
24,000
1,000
40,000
800
6,000
4,800
Drawings
Machine & Plant
Purchase
Insurances
Sales Return
Trade Expenses
Wages
6% Investments
Sundry Creditors
Cash
Miscellaneous Receipt
21,000
24,000
2,95,000
1,500
7,000
2,000
40,000
50,000
19,000
12,200
1,200

 

Adding Elements.

(i) Stock ₹75,000 on closing

(ii) Depreciation machine 10% and furniture 20%

(iii) Salary ₹2,000 and wages ₹5,000 due

(iv) Bad Debt ₹5,000 and create 5% doubtful debt

(v) No interest received for the investment made on 1st July 2017

Solution:

Dr. Trading Account Cr.
Particulars Particulars
To Opening Stock
To Purchase 2,95,000
Less: Purchase return 4,000
To Wages 40,000
Add:Due Wages 5,000
To Gross Profit c/d
(Balancing Fig.)
45,000
2,91,000
45,000
1,22,000
By Sales 4,35,000
Less: Sales Return (7,000)
By Closing Stock
4,28,000
75,000
5,03,000 5,03,000

 

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