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

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:-

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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

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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

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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