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

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:-

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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

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



Balance c/d	13,500
	13,500		13,500

Final Accounts: Meaning, Definition and Explanation

Profit and Loss Account: Meaning, Format & Examples

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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