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.
The solution of Question No 17 Chapter No 19:-
| 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 | 7,200 | |
| 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 | |
Final Accounts: Meaning, Definition and Explanation
Profit and Loss Account: Meaning, Format & Examples
Advertisement-X
Balance Sheet: Meaning, Format & Examples
Thanks, Please Like and share with your friends
Comment if you have any question.
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
Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication
T.S. Grewal’s Double Entry Book Keeping