
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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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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