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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Question No 17 Chapter No 19
17.X, a retailer, has not maintained proper books of accent but it has been possible to obtain the following details:
| Particulars | Last Year | This Year |
| Trade Creditors | 6,270 | 5,890 |
| Loan from Naresh | 5,000 | 5,000 |
| Stock | 12,350 | 11,980 |
| Cash in Hand | 570 | 650 |
| Shop Fittings | 7,250 | 7,800 |
| Trade Debtors | 5,280 | 4,560 |
| Bank Balance | 3,990 | 4,130 |
Calculate the net profit for this year and draft the Statement of Affairs at the end of the year after noting that:
a. Shop Fittings are to be depreciated by 780.
b .X has drawn 100 per week for his own use.
c .Included in the Trade Debtors is an irrecoverable balance of 270.
d .Interest at 5% p.a. is due on the loan from Naresh but has not been paid for the year.
Statements of Affairs as Previous Year
| Liabilities |
Amount | Assets | Amount | ||
|---|---|---|---|---|---|
| Trade Creditors | 6,270 | Stock | 12,350 | ||
| Loan from Naresh | 5,000 | Cash in Hand | 570 | ||
| Shop Fittings | 7,250 | ||||
| Trade Debtors | 5,280 | ||||
| Bank Balance | 3,990 | ||||
| Capital | 18,170 | ||||
| 29,440 | 29,440 | ||||
Statement of Affairs Current Year
| Liabilities |
Amount | Assets | Amount | ||
|---|---|---|---|---|---|
| Trade Creditors | 5,890 | Shop Fittings | 7,800 | ||
| Loan from Naresh | 5,000 | Less: Depreciation | 780 | 7,020 | |
| Add: Outstanding Interest 5, 000 ×5% | 250 | 5,250 | Trade Debtors | 4,560 | |
| Less: Bad Debts | 270 | 4,290 | |||
| Stock | 11,980 | ||||
| Cash in Hand | 650 | ||||
| Capital |
16,930 |
Bank Balance | 4,130 | ||
| 28,070 | 28,070 | ||||
Statement of Profit or Loss Current Year
| Particular |
Amount | |
|---|---|---|
| Capital of the Current Year | 16,930 | |
| Add: Drawings Rs100 ×52 | 5,200 | |
| 22,130 | ||
| Less: Capital of the Previous Year | 18, 170 | |
| Profit made during the Current Year | 3,960 | |
https://tutorstips.com/final-accounts/
https://tutorstips.com/profit-and-loss-account/
https://tutorstips.com/balance-sheet/
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T.S. Grewal's Double Entry Book Keeping
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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