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

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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

Final Accounts: Meaning, Definition and Explanation

Profit and Loss Account: Meaning, Format & Examples

Balance Sheet: Meaning, Format & Examples

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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