Question 1

Question No 01 Chapter No 17 - USHA Publication  11 Class

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Question No 01 Chapter No 17
01. Classify the following expenses into capital or revenue:

A property dealer purchased 3 flats for Rs 9,00,000
Compensation paid to customers for defective goods supplied Rs 18,000
Rs 2,500 spent on machinery for repair necessitated by negligence of the workman
Legal expenses incurred Rs 12,000 to retain the title of building purchased for business in litigation with third party
Rs 2,600 spent for transportation on the purchase of machinery.

The solution of Qu

Question 2

Question No 02 Chapter No 17 - USHA Publication  11 Class

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Question No 02 Chapter No 17
02.Which of the following expenses are capital or revenue? Also state reasons

Expenses incurred on a foreign tour for purchasing a new machinery Rs 50,000
Rs 1,500 paid for the removal of stock to a new site
Custom duty paid Rs 14,500 on import of a machinery
Gagan Cinema owners spent Rs 12,000 for machinery two more exits in the cinema hall as per legal requirement
Rs 28,000 spent to reduce working expenses
Rs 7,500 spent on repainting the office building

The s

Question 3

Question No 03 Chapter No 17 - USHA Publication  11 Class

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Question No 03 Chapter No 17
03. State whether the following item of expenditure are of capital or revenue nature:

Rs 10,000 paid for excise duty on goods manufactured
Rs 1,20,000 spent on the construction of railway siding
Payment of Rs 90,000 made for acquiring the goodwill of an old firmRings and pistons of an engine were charged at a cost of Rs 5,000 to get the fuel efficiency
Legal expenses Rs 1,800 paid to protect the business from misuse of trade-mark by other
Rs 30,000 were invested in

Question 4

Question No 04 Chapter No 17 - USHA Publication  11 Class

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Question No 04 Chapter No 17
04. Which of the following expenses are capital, revenue or deferred revenue expenditure

Rs 80,000 were spent on putting up a gallery in a cinema hall
A sum of Rs 38,000 was spent overhauling its entire plant which resulted in adding five years to its working life
A chartered accountant purchased books of Rs 4,000 for his profession
Rs 20,000 spent on panelling walls to cover up cracks in a cinema
Brokerage and stamp Duty paid Rs 2,800 on purchase of the building
S

Question 5

Question No 05 Chapter No 17 - USHA Publication  11 Class

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Question No 05 Chapter No 17
05. Ascertain gross profit from the following figures:

Rs
 
Rs

Opening stock
5,570
Closing stock
8,880

Purchases
13,816
Import duty
252

Sales
15,284
Wages paid
1,440

Purchases return
390
Return inwards
524

The solution of Question No 05 Chapter No 17:-
Trading Account

Particular
Amount
Particular
Amount

To opening Stock A/c
 
5,570
By Sales
15,284

To Purchases
13,816
 
Less: Return Inward
524
14,760

Less: Purchases return
390
13,426
By Clo

Question 6

Question No 06 Chapter No 17 - USHA Publication  11 Class

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Question No 06 Chapter No 17
06. From the following figure, ascertain the gross profit of Ranger:

Rs
 
Rs

Opening stock
25,000
Closing stock
30,000

Goods purchased during the year
1,40,000
Sales
1,90,000

Freight and packing on above
10,000
Packing expenses on the sale
1,440

The solution of Question No 06 Chapter No 17:-
 
Trading Account

Particular
Amount
Particular
Amount

To opening Stock A/c
 
25,000
By Sales
 
1,90,000

To Purchases
 
1,40,000

To Freight and Pac

Question 7

Question No 07 Chapter No 17 - USHA Publication  11 Class

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Question No 07 Chapter No 17
07. M/s Avinash and Co. has requested you to calculate the gross profit for the year ended 31st March 2018 with the help of the following details:

Rs
Rs

Opening stock
 
82,000

Customs duty
 
13,456

Clearing charges
 
544

Loading an unloading charges:

On purchase
320

On sale 
540
860

Productive wages
 
75,000

Rent: Factory
9,200

Office
800
10,000

Salaries:

Foreman and supervisor
 
18,600

Manger
 
9,600

Purchases less retune

Question 8

Question No 08 Chapter No 17 - USHA Publication  11 Class

Sarbjit Singh · Accepted Answer

Question No 08 Chapter No 17 - USHA
08.Prepare a Trading Account of Akhlaq Ahmad for the year ending 31st March 2017 from the following particulars

Rs
 
Rs

Stock of goods on 1st April 2016
25,000
Sales-cash
51,200

Stock of goods on 31st March 2017
47,600
-credit
1,16,000

Purchases-cash
36,800
Return from Customers
5,600

-Credit
82,400
Carriage and Freight
6,000

Return to Suppliers
6,400
Duty and clearing charges
5,000

Wages
24,000

The solution of Question No 08 Chapter

Question 9

Question No 09 Chapter No 17 - USHA Publication  11 Class

Sarbjit Singh · Accepted Answer

Question No 09 Chapter No 17
09.Prepare trading and Profit & Loss account of Subhash Chander for the year ended 31st march 2018 from the following particular.

Rs
 
Rs

Opening stock
8,000
Commission
1,010

Rent and rates
4,300
Salaries
2,000

Trade expenses
3,600
 legal expenses
2,050

Return inwards
2,600
Audit fees
1,060

Sales
82,000
Bank charges
1,040

Purchases
50,000
Sales Tax
550

Return outwards
1,300
Interest on drawing 
360

Carriage inwards
1,200
Interest on investme

Question 10

Question No 10 Chapter No 17 - USHA Publication  11 Class

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Question No 10 Chapter No 17
10. From the following records of Ravneet Kalra on 31st March 2016, determine:(i) Net Sales (ii) net Purchases (iii) Gross Profit and Ranveer's capital on 31st March 2016

Rs
 
Rs

Cash sales
1,00,000
Sale return
14,000

Credit sales
80,000
Purchases Return
5,000

Cash purchases
69,000
Carriage on purchases
3,800

Credit purchases
75,000
Carnage on sale
4,200

Opening stock
32,500
Closing stock
18,000

Revneet’s Capital
60,000
Ravneet’s Drawing
5,000

Off

Question 11

Question No 11 Chapter No 17 - USHA Publication  11 Class

Sarbjit Singh · Accepted Answer

Question No 11 Chapter No 17
11. From the following balance of Harjit Singh, prepare Trading and Profit & loss account and balance sheet for the year 2017-18

Debit Balance
Rs
Debit Balance
Rs

Machinery
35,000
Rent 
4,500

Debtors
27,000
Sundry expenses
2,000

Drawing
9,000
Carriage
1,500

Purchases
95,000
Credit Balance

Wages
50,000
Capital account
1,00,000

Bank
15,000
Creditor
14,000

Opening stock
20,000
Sales
145,000

Closing Stock Rs 6,000
The solution of Question No 11

Question 12

Question No 12 Chapter No 17 - USHA Publication  11 Class

Sarbjit Singh · Accepted Answer

Question No 12 Chapter No 17
12. Prepare the Profit & Loss Account of Simranjit Singh for the year ending 13st March 2019 from the following information

Debit Balance
Rs
 
Rs

Office salaries
32,000
Trade expenses 
8,000

Travelling expenses
25,000
Export duty
6,000

Discount received 
12,000
Postage and telegram
1,500

Bad debts
24,000
Interest received 
7,800

Printing and stationery
11,000
Interest paid 
5,800

Godown rent
60,000
Rent of building sub-let
10,000

Commission earn

Question 13

Question No 13 Chapter No 17 - USHA Publication  11 Class

Sarbjit Singh · Accepted Answer

Question No 13 Chapter No 17
13. Prepare the Profit & Loss Account from the following balances extracted from the books of Renu Bala for the year 2017-18

Debit Balance
Rs
 
Rs

Gross profit
1,85,000
Advertisement
5,000

Sallies
20,000
Discount(Dr.)
500

Rent & Rates
5,000
Salesmen Commission
5,000

Stationery
1,000
Bad debts
2,000

Postage
500
Loss To fire
2,000

Insurance
2,000
Interest on investment 
2,500

Repairs
1,500
Profit on sale of investments
2,000

Depreciation 
5,

Question 14

Question No 14 Chapter No 17 - USHA Publication  11 Class

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Question No 14 Chapter No 17
14. From the following balance of Sarita Madaan, Prepare Profit & Loss account for the year ended on March 31,2017

Rs
 
Rs

Office expenses
5,280
Insurance
2,400

Advertising
3,000
Office lighting
1,500

Legal charges
5,000
Stationery
1,200

Postage and telephone
6,400
Repair
920

Salaries and wages
60,000
Miscellaneous income
800

Travelling expenses
2,500
Commission paid 
4,000

Interest received 
600
Bank charges
200

Rent, Rates and Taxes 
20,80

Question 15

Question No 15 Chapter No 17 - USHA Publication  11 Class

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Question No 15 Chapter No 17
Trading and Profit & Loss Account and Balance Sheet
15.From the following balance taken from the book of Anill Sanghvi you are required to prepare Trading and Profit and Loss account for the year 31st March 2019 and calculate Gross Profit, Operating Profit and Net Profit.

Rs
 
Rs

Opening stock
35,000
Dividend Received 
9,000

Sales
80,000
Rent received 
5,000

Purchases Return 
6,000
Sales Return
7,000

Purchases
65,000
Charity
1,600

Discount allowed

Question 16

Question No 16 Chapter No 17 - USHA Publication  11 Class

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Question No 16 Chapter No 17
Trading and Profit & Loss Account and Balance Sheet
16. Fromm the following balances prepare the financial statement of M/s Shabir Khan & Sons for the year ending 31st March 2019

Rs
 
Rs

Opening stock
12,500
Insurance
200

Bills receivable 
2,000
Debtors
32,500

Sales
70,000
Carriage
1,450

Purchase
37,500
Commission 
750

Creditor
20,000
Interest
900

Salaries
3,850
Printing
250

Return Outward
500
Bills Payable
3,150

Bank
5,250
Return Inward

Question 17

Question No 17 Chapter No 17 - USHA Publication  11 Class

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Question No 17 Chapter No 17
Trading and Profit & Loss Account and Balance Sheet
17. From the following trial balance of Sinjay Kumar, prepare Trading and Profit & Loss Account for the year ended march 31,2018 and a Balance sheet at a date

Debit Balance
Credit Balance

Capital
 
40,000

Drawing
7,500

Stock on April 1,2017
8,000

Purchases
47,250

Sales
 
90,000

Carriage inwards
2,300

Return Inward
2,000

Return Outward
 
1,500

Wages
7,000

Plant and Machin

Question 18

Question No 18 Chapter No 17 - USHA Publication  11 Class

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Question No 18 Chapter No 17
Trading and Profit & Loss Account and Balance Sheet
18.From the following trial balance of Ashok Kumar, pass the necessary closing entries. Prepare Trading Profit & Loss Account for the year ending 31st March 2017 and balance sheet at that date:

Debit Balance
Rs
Credit Balance
Rs

Opening stock
27,400
Sales
4,02,160

Purchases
2,83,950
Purchases return
1,150

Sale return
2,005
Creditor
62,000

Carriage
8,715
Discount
110

Wages
58,840
Capital
50,000

Question 19

Question No 19 Chapter No 17 - USHA Publication  11 Class

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Question No 19 Chapter No 17
Trading and Profit & Loss Account and Balance Sheet
19. Form the following balance taken from the book of Bhutto, prepare Trading and Profit & Loss Account for the year ending 31st March 2019 and a balance sheet at that dateStock in hand on 31st March 23019 was Rs 20,000

Ledger Account
Rs
Ledger Account
Rs

Purchases
20,250
Drawings
5,000

Bank overdraft
7,000
Interest (Cr.)
900

Bank Charges
50
Loose tools
2,200

Freehold Premises
10,000
Cash in hand

Question 20

Question No 20 Chapter No 17 - USHA Publication  11 Class

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Question No 20 Chapter No 17
Trading and Profit & Loss Account and Balance Sheet
20.The following balance were extracted from the books of Jagjivan Ram & Co. prepare Trading account, Profit & Loss Account for the year ending 31st March 2018 and Balance sheet as at that date.

Ledger Account
Debit Rs
Credit Rs

Opening Stock
4,000

Purchases
12,000

Sales
 
25,000

Purchases return
 
1,455

Return inwards
1,350

Productive wages
500

Carriage
700

Coal, gas and wa

S.NO	Transaction	Capital	Revenue


(i)	A property dealer purchased 3 flats for Rs 9,00,000		Revenue

(ii)	Compensation paid to customers for defective goods supplied Rs 18,000		Revenue

(iii)	Rs 2,500 spent on machinery for repair necessitated by the negligence of the workman		Revenue

(iv)	Legal expenses incurred Rs 12,000 to retain the title of building purchased for business in litigation with the third party	Capital

(v)	Rs 2,600 spent for transportation on the purchase of machinery.	Capital

USHA Publication +1 Elements of Book-Keeping Solutions Chapter No. -17. Financial Statements(without Adjustments)

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Table of Contents

Question No 01 Chapter No 17 - USHA Publication 11 Class

The solution of Question No 01 Chapter No 17:-

Question No 02 Chapter No 17 - USHA Publication 11 Class

Question No 03 Chapter No 17 - USHA Publication 11 Class

Question No 04 Chapter No 17 - USHA Publication 11 Class

Question No 05 Chapter No 17 - USHA Publication 11 Class

Question No 06 Chapter No 17 - USHA Publication 11 Class

Question No 07 Chapter No 17 - USHA Publication 11 Class

Question No 08 Chapter No 17 - USHA Publication 11 Class

Question No 09 Chapter No 17 - USHA Publication 11 Class

Question No 10 Chapter No 17 - USHA Publication 11 Class

Question No 11 Chapter No 17 - USHA Publication 11 Class

Question No 12 Chapter No 17 - USHA Publication 11 Class

Question No 13 Chapter No 17 - USHA Publication 11 Class

Question No 14 Chapter No 17 - USHA Publication 11 Class

Question No 15 Chapter No 17 - USHA Publication 11 Class

Question No 16 Chapter No 17 - USHA Publication 11 Class

Question No 17 Chapter No 17 - USHA Publication 11 Class

Question No 18 Chapter No 17 - USHA Publication 11 Class

Question No 19 Chapter No 17 - USHA Publication 11 Class

Question No 20 Chapter No 17 - USHA Publication 11 Class

Question No 21 Chapter No 17 - USHA Publication 11 Class

Question No 22 Chapter No 17 - USHA Publication 11 Class

Question No 23 Chapter No 17 - USHA Publication 11 Class

Question No 24 Chapter No 17 - USHA Publication 11 Class

Question No 25 Chapter No 17 - USHA Publication 11 Class

Question No 26 Chapter No 17 - USHA Publication 11 Class

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