Question No 38 Chapter No 19 - T.S. Grewal 11 Class

Question No 38 Chapter No 19

38. Surya does not keep a systematic record of his transactions. He is able to give you the following information regarding his assets and liabilities:

	31st March 2017	31st March 2018
Creditors for goods	21,000	19,000
Creditors for expenses	1,500	1,800
Bills Payable	8,700	11,500
Sundry Debtors	35,000	34,000
Stock At cost	28,000	25,000
Furniture and Fittings	10,000	12,000
Cash	5,100	-

Following additional information is also available for the year ended 31st March, 2018:

Bills Payable Issued	20,800
Cash Sales	15,000
Payment to Sundry Creditors	31,000
Expenses paid	6,600
Drawings	8,000

Bad Debts during the year were 900. As regards sale, Surya tells you that he always sells goods at Cost plus 25%. Furniture and Fittings are to be depreciated at 10% of the value in the beginning of the year. Prepare Surya's Trading and Profit and Loss Account for the year ended 31st March, 2018 and his Balance Sheet

 

The solution of Question No 38 Chapter No 19:-

 

Trading Account

Particular		Amount	Particular		Amount
To Opening Stock		28,000	By Sales	15,000 + 51,000	66,000
To Purchases		49,800	By Closing Stock		25,000
To Gross Profit		13,200
		91,000			91,000

 

Profit and Loss Account

Particular		Amount	Particular		Amount
To Bad Debts		900	By Gross Profit		13,200
To Expenses	6,600
Add: Closing Creditors for Expenses	1,800	6,900
To Depreciation on Furniture and Fittings		1,000
To Net Profit		4,400
		13,200			13,200

 

Balance Sheet as on April 01, 2018

Particular		Amount	Particular		Amount
Creditors for Goods		19,000	Cash Balance		4,600
Creditors for Expenses		1,800	Stock		25,000
Bills Payable		11,500	Debtors		34,000
Capital	46,900		Furniture and Fittings		12,000
Less: Drawings	8,000
Add: Net Profit	4,400	43,300
		75,600			75,600

 

Balance Sheet as on April 01, 2017

Particular		Amount	Particular		Amount
Creditors for Goods		21,000	Cash Balance		5,100
Creditors for Expenses		1,500	Stock		28,000
Bills Payable		8,700	Debtors		35,000
Capital		46,900	Furniture and Fittings		10,000
		78,100			78,100

 

Bank Account

Particular		Amount	Particular		Amount
Balance b/d		5,100	Expenses A/c		6,600
Debtors A/c		51,100	Sundry Creditors A/c		31,000
Sales A/c		15,000	Furniture and Fittings A/c		3,000
			Bills Payable A/c		18,000
			Drawings A/c		8,000
			Balance c/d		4,600
		71,200			71,200

 

Debtors Account

Particular		Amount	Particular		Amount
Balance b/d		35,000	Bad Debts		900
			Sales A/c Cash		51,100
Sales Credit A/c		51,000
			Balance c/d		34,000
		3,00,000			3,00,000

 

Creditors Account

Particular		Amount	Particular		Amount
Bills Payable A/c		20,800	Balance b/d		21,000
Cash A/c		31,000
Balance c/d		19,000
			Purchases A/c		49,800
		70,800			70,800

 

Bills Payable Account

Particular		Amount	Particular		Amount
Cash		18,000	Bad Debts		8,700
Balance c/d		11,500	Creditors for goods		20,800
		29,500			29,500

 

 

Furniture and Fittings Account

Particular		Amount	Particular		Amount
Balance b/d		10,000	Depreciation		1,000
Cash A/c		31,000
			Balance c/d		12,000
Cash-Purchases		3,000
		70,800			70,800

 

Computation of Cost of Goods Sold and Credit Sales

COGS	=	Opening. Stock + Purchases – closing. Stock
	=	28,000 + 49,800 – 25,000
	=	52,800
Gross Profit	=	52,800 × 25/100
	=	13,200
Total Sales	=	COGS + Gross Profit
	=	52,800 + 13,200
	=	66,000
Credit Sales	=	Total Sales – Cash Sales
	=	66,000 – 15,000
	=	51,000

 

https://tutorstips.com/final-accounts/

https://tutorstips.com/profit-and-loss-account/

 

https://tutorstips.com/balance-sheet/

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Also, Check out the solved question of previous Chapters: -

• • Chapter No. 1 – Introduction to Accounting
  • Chapter No. 2 – Basic Accounting Terms
  • Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
  • Chapter No. 4 – Bases of Accounting
  • Chapter No. 5 – Accounting Equation
  • Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
  • Goods and Services Tax(GST)
  • Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
  • Chapter No. 8 – Journal
  • Chapter No. 9 – Ledger
  • Chapter No. 10 – Special Purpose Books I – Cash Book
  • Chapter No. 11 – Special Purpose Books II – Other Books
  • Chapter No. 12 – Bank Reconciliation Statement
  • Chapter No. 13 – Trial Balance
  • Chapter No. 14 – Depreciation
  • Chapter No. 15 – Provisions and Reserves
  • Chapter No. 16 – Accounting for Bills of Exchange
  • Chapter No. 17 – Rectification of Errors
  • Chapter No. 18 – Financial Statements of Sole Proprietorship
  • Chapter No. 19 – Adjustments in preparation of Financial Statements
  • Chapter No. 20 – Accounts from incomplete Records – Single Entry System
  • Chapter No. 21 – Computers in Accounting
  • Chapter No. 22 – Accounting Software – Tally
  • Chapter No. 5 - Accounting Equation
  • Chapter No. 6 - Accounting Procedures - Rules of Debit and Credit
  • Goods and Services Tax(GST)
  • Chapter No. 8 - Journal
  • Chapter No. 9 - Ledger
  • Chapter No. 10 – Special Purpose Books I – Cash Book

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