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

Question No 19 Chapter No 19
Question No.19 - Chapter No.19- T.S. Grewal +1 Book 2019-Solution

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Question No 19 Chapter No 19

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19. C maintains his books according to Single Entry System. Following figures were available from the books for the six months ended 31 st December 2017:

Particulars1st July, 201731st Dec. 2017
Plant and Machinery1,50,0001,40,000
Debtors65,00060,000
Cash and Bank Balances25,00031,000
Stock40,00045,000
Creditors9,00010,000

Adjustments:
a. He had withdrawn 200 in the beginning of every month for household purposes.
b .Depreciation on Plant and Machinery @ 10% p.a.
c . Further Bad Debts 5,000 and Provision for Doubtful Debts to be created @ 2%.
d . During the period, salaries have been prepaid by 500 while wages outstanding were 1,000.
e. Interest on drawings to be reckoned @ 6% p.a. You are required to prepare the Statement of Profit or Loss for the half year ended 31 st December, 2017, followed by Revised Statement of Affairs as on that date.

 

The solution of Question No 19 Chapter No 19:-

 

Statement of Affairs
as on July 01,2017

Liabilities

AmountAssetsAmount
Creditors 6,270Cash and Bank balances 25,000
   Debtors 65,000
   Stock 40,000
   Plant and Machinery 1,50,000
Capital  2,71,000   
  2,80,000  2,80,000

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Statement of Affairs
as on December 31,2017

Liabilities

AmountAssetsAmount
Creditors 10,000Cash and Bank balances 31,000
Outstanding Wages 1,000Debtors 60,000
   Stock 45,000
   Plant and Machinery 1,40,000
   Prepaid Salary 500
Capital  2,65,500   
  2,76,500  2,76,500

 

Statement of Profit or Loss for the half
year ended December 31,2017
Particular
Amount
Capital at the end of the year 2,65,500
Add: Drawings made during the year 1,200
Adjusted capital at the end of the year 2,66,700
Less: Capital in the beginning of the year 2,71,000
Gross Loss Profit before Adjustment 4,300
Less: Interest on Drawings 21
Add: Depreciation on Plant and Machinery 7,000
Bad Debt 5,000
Provision for Doubtful Debts 1,100
Net Loss Profit After Adjustment 17,379

 

Statement of Affairs After adjustments
as on December 31, 2017

Liabilities
AmountAssetsAmount
Creditors 10,000Cash and Bank balances 31,000
Outstanding Wages 1,000Stock 45,000
Capital2,71,000 Debtors60,000 
Less: Net Loss17,379 Less: Bad Debts5,000 
Less: Drawings1,200 Less: Provision for D.D.1,10053,900
Less: Interest on Drawings212,52,400Plant and Machinery1,40,000 
   Less: Depreciation7,0001,33,000
   Prepaid Salary 500
  2,63,400  2,63,400

Working Notes

To calculate the Amount of Deprecation charged on Plant and Machinery
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 1,40,000
Rate of Depreciation = 10%
Period = from 01/07/2017 to 31/12/2017 i.e.6months
(from the date of purchase/Beginning balance to end of the financial year)
=1,40,000 X10/100 X 6/12
Depreciation = 7,000

The calculation of Amount of Provision for Doubtful Debts
Provision for Doubtful Debts= Sundry Debtors – Further Bad Debts X Rate of Provision
Sundry Debtors = 60,000
Rate of Provision = 2%
60,000 -5,000 X2/100
Provision For Doubtful Debts= 1,100

Calculation of Amount of Interest on Drawings:

 
Date
AmountMonthsProduct
Jul. 01, 201720061,200
Aug. 01, 201720051,000
Sep. 01, 02172004800
Oct. 01, 02172003600
Nov. 01, 20172002400
Dec. 01, 20172001200
Total  4,200

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Interest on Drawings
4,200 X6/100 X 1/12
Interest on Drawing = 21

 

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

Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewal's Double Entry Book Keeping

T.S. Grewal’s Double Entry Book Keeping

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