Question No 36 Chapter No 19 – T.S. Grewal 11 Class

Question No 36 Chapter No 19

Question No 36 Chapter No 19

36. Vijay commenced business as food grains merchant on 1st April, 2017 with a capital of 4,00,000. On the same day, he purchased furniture for 80,000. From the following particulars obtained from his books which do not conform to Double Entry principles, you are required to prepare the Trading and Profit and Loss Account for the year ended 31st March, 2018 and the Balance Sheet as on that date:

   
Sales including Cash Sales 2, 00, 000 5,00,00
Purchases (including Cash Purchases 1,20,000 4,00,000
Vijay’s Drawings incash 40,000
Salaries to Staff 48,000
Bad Debts written off 4,000
Trade Expenses paid  16,000

Vijay used goods of 12,000 for private purposes during the year. On 31st March, 2018, his Debtors amounted to 1,40,000 and Creditors 80,000. Stock-in-Trade on that date was 1,60,000.

The solution of Question No 36 Chapter No 19:-

 

Trading Account
Particular
Amount Particular
Amount
      By Sales   5,00,000
To Purchases  4,00,000   By Closing Stock   1,60,000
Less: Drawings 12,000 3,88,000      
To Gross Profit   2,72,000      
    6,60,000     6,60,000

 

Profit and Loss Account
Particular
Amount Particular
Amount
To Salary   48,000 By Gross Profit   2,72,000
To Trade Expenses   16,000      
To Bad Debts   4,000      
To Net Profit   2,04,000      
    2,72,000     2,72,000

 

Balance Sheet
Particular
Amount Particular
Amount
Creditors   80,000 Cash in Hand   2,56,000
Capital 4,00,000   Furniture   80,000
Less: Drawings 52,000   Debtors 1,40,000  
Add: Net Profit 2,04,000 5,52,000 Less: Bad Debts 4,000 1,36,000
Creditors   25,000 Closing Stock   1,60,000
    6,32,000     6,32,000

 

 

Cash Account
Particular
Amount Particular
Amount
Capital A/c   4,00,000 Creditors A/c   2,00,000
Debtors A/c   1,60,000 Drawings A/c   40,000
Sales A/c   2,00,000 Furniture A/c   80,000
      Purchases A/c   1,20,000
      Salaries A/c   48,000
      Trade Expenses A/c   16,000
      Balance c/d   2,56,000
    7,60,000     7,60,000

 

Debtors Account
Particular Amount Particular Amount
Sales A/c B/F   3,00,000 Cash A/c   1,60,000
           
           
           
      Balance c/d   1,40,000
    3,00,000     3,00,000

 

Creditors Account
Particular Amount Particular Amount
Cash A/c   2,00,000 Purchases A/c    2,80,000
           
           
           
Balance c/d
  80,000      
    2,80,000     2,80,000

 

 

 

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 36 Chapter No 19 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

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