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 | ||||
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| 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: 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
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T.S. Grewal’s Double Entry Book Keeping