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

Question No 11 Chapter No 19

11. A commenced business on 1st April, 2017 with a capital of 10,000. He immediately bought Furniture and Fixtures for 2,000. On 1st October, 2017, he borrowed 5,000 from his wife @ 9% p.a. interest not yet paid and introduced a further capital of his own amounting to 1,500. A drew @ 300 per month at the end of each month for household expenses. On 31st March, 2018 his position was as follows: Cash in Hand 2,800; Sundry Debtors 4,800; Stock 6,800; Bills Receivable 1,600; Sundry Creditors 500 and owing for Rent 150. Furniture and Fixtures to be depreciated by 10%. Ascertain the profit or loss made by A during 2017–18.

The solution of Question No 11 Chapter No 19:-

Statement of Affairs as on March 31, 2018
Liabilities		Amount	Assets		Amount
Wife’s Loan	5,000		Furniture	2,000
Add: Outstanding Interest 5, 000 X9%X6/12	225	5,225	Less: 10% Depreciation	200	1,800
Sundry Creditors		500	Cash in Hand		2,800
Rent Outstanding		150	Sundry Debtors		4,800
			Stock		6,800
			Bills Receivables		1,600
Capital		11,925
		17,800			17,800

Statement of Profit or Loss for the year and March 31, 2018
Particular		Amount
Capital as on March 31, 2017		11,925
Add: Drawings Rs1, 200 ×3		3,600
		15,525
Less: Additional Capital Introduced		35, 000
Less: Additional Capital Introduced		14,025
Less: Capital as on April 01, 2016		10, 000
Profit made during the year 2017-18		4,025

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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