Question No 38 Chapter No 19 - T.S. Grewal 11 Class

Question No 38 Chapter No 19

38. Surya does not keep a systematic record of his transactions. He is able to give you the following information regarding his assets and liabilities:

	31st March 2017	31st March 2018
Creditors for goods	21,000	19,000
Creditors for expenses	1,500	1,800
Bills Payable	8,700	11,500
Sundry Debtors	35,000	34,000
Stock At cost	28,000	25,000
Furniture and Fittings	10,000	12,000
Cash	5,100	–

Following additional information is also available for the year ended 31st March, 2018:


Bills Payable Issued	20,800
Cash Sales	15,000
Payment to Sundry Creditors	31,000
Expenses paid	6,600
Drawings	8,000

Bad Debts during the year were 900. As regards sale, Surya tells you that he always sells goods at Cost plus 25%. Furniture and Fittings are to be depreciated at 10% of the value in the beginning of the year. Prepare Surya’s Trading and Profit and Loss Account for the year ended 31st March, 2018 and his Balance Sheet

The solution of Question No 38 Chapter No 19:-

Trading Account
Particular	Amount	Particular		Amount
To Opening Stock	28,000	By Sales	15,000 + 51,000	66,000
To Purchases	49,800	By Closing Stock		25,000
To Gross Profit	13,200
	91,000			91,000

Profit and Loss Account
Particular		Amount	Particular	Amount
To Bad Debts		4,050	By Gross Profit	13,200
To Expenses	6,600
Add: Closing Creditors for Expenses	1,800	6,900
To Depreciation on Furniture and Fittings		1,000
To Net Profit		4,400
		13,200		13,200

Balance Sheet as on April 01, 2018
Particular		Amount	Particular	Amount
Creditors for Goods		19,000	Cash Balance	4,600
Creditors for Expenses		1,800	Stock	25,000
Bills Payable		11,500	Debtors	34,000
Capital	46,900		Furniture and Fittings	12,000
Less: Drawings	8,000
Add: Net Profit	4,400	43,300
		75,600		75,600

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Balance Sheet as on April 01, 2017
Particular	Amount	Particular	Amount
Creditors for Goods	21,000	Cash Balance	5,100
Creditors for Expenses	1,500	Stock	28,000
Bills Payable	8,700	Debtors	35,000
Capital	46,900	Furniture and Fittings	10,000

	78,100		78,100

Bank Account
Particular	Amount	Particular	Amount
Balance b/d	5,100	Expenses A/c	6,600
Debtors A/c	51,100	Sundry Creditors A/c	31,000
Sales A/c	15,000	Furniture and Fittings A/c	3,000
		Bills Payable A/c	18,000
		Drawings A/c	8,000
		Balance c/d	16,375
	71,200		71,200

Debtors Account
Particular	Amount	Particular	Amount
Balance b/d	35,000	Bad Debts	900
		Sales A/c Cash	51,100
Sales Credit A/c	51,000

		Balance c/d	34,000
	3,00,000		3,00,000

Creditors Account
Particular	Amount	Particular	Amount
Bills Payable A/c	20,800	Balance b/d	21,000
Cash A/c	31,000

Balance c/d	19,000
		Purchases A/c	49,800
	70,800		70,800

Bills Payable Account
Particular	Amount	Particular	Amount
Cash	18,000	Bad Debts	8,700


Balance c/d	11,500	Creditors for goods	20,800
	29,500		29,500

Furniture and Fittings Account
Particular	Amount	Particular	Amount
Balance b/d	10,000	Depreciation	1,000
Cash A/c	31,000
		Balance c/d	12,000
Cash-Purchases	3,000
	70,800		70,800

Computation of Cost of Goods Sold and Credit Sales

COGS	=	Opening. Stock + Purchases – closing. Stock
	=	28,000 + 49,800 – 25,000
	=	52,800
Gross Profit	=	52,800 × 25/100
	=	13,200
Total Sales	=	COGS + Gross Profit
	=	52,800 + 13,200
	=	66,000
Credit Sales	=	Total Sales – Cash Sales
	=	66,000 – 15,000
	=	51,000

Final Accounts: Meaning, Definition and Explanation

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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