Question No 35 Chapter No 19 – T.S. Grewal 11 Class

Question No 35 Chapter No 19

Question No 35 Chapter No 19

35. Roshan, whose accounts are maintained by Single Entry System, acquired a retail business on 1st April, 2017. He had 40,000 of his own and he borrowed 20,000 from his wife. He paid 15,000 for Goodwill, 5,000 for Furniture and 35,000 for Stock. Total cash received by him during the financial year from the Debtors was 2,30,000. His payments were:

   
Purchases 1,56,000
Salary and Wages 21,400
Trade Expenses 7,200
Rent:  
For business premises 5,920
For private house 2,960
Payments made for domestic purposes and drawings 26,400

At the end of the year, the Stock was 37,500. He owed 13,500 to Creditors for goods and his customers owed to him 15,000. Provide 5% for Depreciation on Furniture, Interest at 5% on wife’s Loan and 1,000 for Doubtful Debts. Prepare the Cash Account, the Profit and Loss Account for the year ended 31st March, 2018 and the Balance Sheet at the close of the yea

The solution of Question No 35 Chapter No 19:-

 

Trading Account
Particular
Amount Particular
Amount
To Opening Stock   1,62,000 By Sales   2,45,000
To Purchases Cash 1,56,000   By Closing Stock   37,500
Credit 13,500 1,69,500      
To Gross Profit   78,000      
    2,82,500     2,82,500

 

Profit and Loss Account
Particular
Amount Particular
Amount
To Salary and Wages   21,400 By Gross Profit   78,000
To Trade Expenses   7,200      
To Rent for Business Premises   5,920      
To Provision for Doubtful Debts   1,000      
To Depreciation on Furniture   250      
To Interest on wife’s loan   1,000      
To Net Profit   41,230      
    78,000     78,000

 

Balance Sheet
Particular
Amount Particular
Amount
Creditors   13,500 Cash Balance   15,120
Wife’s Loan from Wife 20,000   Stock   37,500
Wife’s Loan from Wife 1, 000 21, 000 Furniture 5,000  
Capital 40,000   Less: Depreciation 250 4,750
Add: Net Profit 41,230 51,870 Debtors 15,000  
Bills Payable   38,500 Less: Provision for Doubtful Debts 1,000 14,000
Creditors   25,000 Goodwill   15,000
    5,22,000     5,22,000

 

 

Cash Account
Particular
Amount Particular
Amount
Capital   21,400 Goodwill   15,000
Wife’s Loan   7,200 Furniture   5,000
Debtors   5,920 Stock   35,000
      Purchases   1,56,000
      Salary and Wages   21,400
      Trade Expenses   7,200
      Rent for Business Premises   5,920
      Drawings2, 960 +26, 400   29,360
      Balance c/d   15,120
    2,90,000     2,90,000

 

Debtors Account
Particular Amount Particular Amount
Sales A/c B/F   2,45,000 Cash A/c   2,30,000
           
           
           
      Balance c/d   15,000
    2,45,000     2,45,000

 

Creditors Account
Particular Amount Particular Amount
      Purchases-Credit B/F   13,500
           
           
           
Balance c/d
  13,500      
    13,500     13,500

 

 

 

Final Accounts: 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

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T.S. Grewals Double Entry Book Keeping - Question No 35 Chapter No 19 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

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