DK Goel Solutions Chapter 21 Financial Statements

DK Goel Accountancy Class 11 Solutions Chapter 21 Financial Statements which is outlined by expert Accountancy teachers from the latest version of DK Goel Class 11 Accountancy books. We at BYJU’S provide DK Goel Solutions to assist students to comprehend all the theories in particular. There are numerous concepts in Accountancy, but the concepts of Trial Balance, Depreciation and Bank Reconciliation Statement (BRS) are required.

Table of Content

  1. Question 2-5
  2. Question 6-10
  3. Question 11-15
  4. Question 16-20
  5. Question 21

DK Goel Accountancy Class 11 Solutions – Chapter 21

Question 1

Prepare a Trading Account from the following particulars for the year ended 31st March 2017:-

Particulars

(₹)

Particulars

(₹)

Opening Stock

2,50,000

Purchases Returns

22,000

Purchases

7,00,000

Sales Return

36,000

Sales

18,00,000

Gas, Fuel and Power

75,000

Wages

2,06,000

Dock Charges

8,000

Carriage Inward

34,000

Factory Lighting

96,000

Carriage Outward

20,000

Office Lighting

5,000

Manufacturing Expenses

2,48,000

Closing Stock is valued at ₹ 6,00,000.

Solution:

Trading Account for the year ended March 31,2017

Dr.

Cr.

Particulars

Amount ₹

Particulars

Amount ₹

Opening Stock

2,50,000

Sales

18,00,000

Purchases

7,00,000

Less: Sales Returns

36,000

17,64,000

Less: Purchases Returns

22,000

6,78,000

Closing Stock

6,00,000

Carriage Inward

34,000

Wages

2,06,000

Custom Duty

15,000

Gas, Fuel & Power

60,000

Dock Charges

8,000

Manufacturing Expenses

2,48,000

Factory Lighting

96,000

Gross Profit (Balancing Figure)

7,69,000

23,64,000

23,64,000

Question 2(A)

From the following information, prepare the Trading Account for the year ended 31st March, 2017:

Adjusted Purchases ₹ 15,00,000; Sales ₹ 21,40,000; Returns Inwards ₹ 40,000; Freight and Packing ₹ 15,000; Packing Expenses on Sales ₹ 20,000; Depreciation ₹ 36,000; Factory Expenses ₹ 60,000; Closing Stock ₹ 1,20,000.

Solution:

Trading Account for the year end March 31, 2017

Dr.

Cr.

Particulars

Amount

Particulars

Amount

Adjusted Purchases

15,00,000

Sales

21,40,000

Freight & Packing

15,000

Less: Return Inwards

40,000

21,00,000

Factory Expenses

60,000

Gross Profit (Balancing Figure)

5,25,000

21,00,000

21,00,000

Note: Since closing stock is already adjusted in purchases. Therefore, the closing stock will not be on the Credit side of Trading Account

Adjusted Purchases = Opening Stock + Net Purchases – Closing Stock

Question 2(B)

Calculate Gross Profit from the following information:

Closing Stock

70,000

Wages

40,000

Salary

30,000

Sales

6,88,000

Adjusted Purchase

5,50,000

Solution:

Dr.

Cr.

Particulars

Amount ₹

Particulars

Amount ₹

Adjusted Purchase

5,50,000

Sales

6,88,000

Wages

40,000

Gross Profit (Balancing Figure)

98,000

6,88,000

6,88,000

Note: Since the adjusted purchases are already given, the stocks will not be considered while calculating Gross Profit.

Question 3(A)

Calculate cost of goods sold from the following:

Opening Stock

40,000

Wages & Salaries

10,000

Net Purchases

50,000

Rent Paid

15,000

Net Sales

1,90,000

Closing Stock

15,000

Solution:

Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses – Closing Stock

Cost of Goods Sold = 40,000 + 50,000 + 10,000 – 15,000 = ₹ 85,000

Question 3(B)

Ascertain cost of Goods Sold and Gross Profit from the following:

Opening Stock

32,000

Purchases

2,80,000

Direct Expenses

20,000

Indirect Expenses

45,000

Closing Stock

50,000

Sales

4,00,000

Sales Returns

8,000

Solution:

Gross Profit = Net Sale- Cost of Goods Sold

Cost of Goods Sold = Opening Stock + Net Purchases + Direct Expenses – Closing Stock

Cost of Goods Sold = 32,000 + 2,80,000 + 20,000 – 50,000 = ₹ 2,82,000

Net Sale= Sales – sales Return

= 4,00,000 – 8,000

= 3,92,000

Therefore, Gross Profit = 3,92,000 – 2,82,000

= ₹1,10,000

Question 4

Calculate Gross Profit on the basis of the following information:

Purchases

6,80,000

Return Outwards

30,000

Carriage Inwards

20,000

Carriage Outwards

15,000

Wages

50,000

3/4 of the goods are sold for ₹ 6,00,000.

Solution:

Cost of Goods Sold = Opening Stock + Net Purchases + Direct Expenses – Closing Stock

Net Purchases = Purchase – Purchase Return

= 6,80,000 – 30,000 = 6,50,000

Direct Expense = Carriage Inwards + Wages

= 20,000 +50,000 = ₹70,000

Cost of Goods Sold = 0 + 6,50,000 + 70,000 – 0 = ₹ 7,20,000

3/4th of the goods are sold for ₹ 6,00,000

Cost 3/4th of the sold goods = 3/4th X 7,20,000 = ₹ 5,40,000

Gross Profit = Net Sale- Cost of Goods Sold=

= 6,00,000 – 5,40,000

= 60,000

Question 5(A)

Calculate Closing Stock and Cost of Goods Sold:

Opening Stock ₹ 5,000; Sales ₹ 16,000; Carriage Inwards ₹ 1,000; Sales Returns ₹ 1,000; Gross Profit ₹ 6,000; Purchase ₹ 10,000; Purchase Returns ₹ 900.

Solution:

Cost of Goods Sold = Net Sale – Gross Profit

= 15,000 – 6,000 = ₹9,000

Cost of Goods Sold = Opening Stock + Net Purchases + Direct Expenses – Closing Stock

9,000 = 5,000 + (10,000+900) + 1,000 – Closing Stock

Closing Stock = 15,100 – 9,000

= ₹6,100

Question 5(B)

Calculate Closing Stock from the following:

Particulars

(₹)

Particulars

(₹)

Opening Stock

38,000

Sales

3,60,000

Purchases

3,40,000

Return Inwards

5,000

Return Outwards

4,000

Gross Loss

20,000

Freight Inwards

26,000

Solution:

Cost of Goods Sold = Net Sale – Gross Profit

= (3,60,000 – 5,000) + 20,000 = ₹ 3,75,000

Cost of Goods Sold = Opening Stock + Net Purchases + Direct Expenses – Closing Stock

3,75,000 = 38,000 + (3,40,000+-4,000) + 26,000 – Closing Stock

Closing Stock = 4,00,000 – 3,75,000

= ₹25,000

Question 6

From the following information, prepare the Trading Account for the year ended 31st March, 2017:

Cost of Goods Sold

12,10,000

Opening Stock

50,000

Closing Stock

80,000

Carriage Inwards

15,000

Sales

15,00,000

Solution:

Trading Account

Dr.

Cr.

Particulars

Amount ₹

Particulars

Amount ₹

Cost of Goods Sold

12,10,000

Sales

15,00,000

Gross Profit (Balancing Figure)

2,90,000

15,80,000

15,80,000

Question 7(A)

Calculate gross profit and cost of goods sold from the following information:

Net Sales ₹ 8,00,000

Gross Profit is 40% on Sales

Solution:

Gross Profit = 40% of sale

= 40/100 X 8,00,000

= ₹ 3,20,000

Cost of Goods sold = Sales – Gross Profit

= 8,00,000 – 3,20,000

= ₹4,80,000

Question 7(B)

Calculate gross profit and cost of goods sold from the following information:

Net Sales

₹ 12,000

Gross Profit

\(33\frac{1}{2}\)%

Solution:

Gross Profit = \(33\frac{1}{2}\)% on sale

= \(\frac{100}{3X100}\) X 12,00,000

= ₹4,00,000

Cost of Goods sold = Sales – Gross Profit

= ₹12,00,000- ₹4,00,000

= ₹8,00,000

Question 8

Calculate the gross profit and cost of goods sold from the following information:

Net Sales ₹ 9,00,000

Gross Profit is 20% on cost.

Solution:

Gross Profit = 20% on cost or \(\frac{1}{5}\)th on cost

\(\frac{1}{5}\)th on cost = \(\frac{1}{6}\)th on sales

Therefore, Gross Profit = \(\frac{1}{6}\) X 9,00,000 = ₹1,50,000

Cost of Good Sold = Sales – Gross Profit

= 9,00,000 – 1,50,000

= ₹ 7,50,000

Question 9

Ascertain the value of the closing stock from the following:

Opening Stock

1,20,000

Purchases during the year

9,30,000

Sales during the year

15,60,000

Rate of Gross Profit

40% on Sales

Solution:

Gross Profit = 30% on cost

Let the cost of sold goods be ‘x’

Gross Profit =

Cost of Goods Sold = Opening Stock + Net Purchases + Direct Expenses – Closing Stock

15,00,000= 4,80,000 + 13,60,000 + 0 – Closing Stock

Closing Stock = 18,00,000 – 15,00,000

= ₹ 3,40,000

Question 11

Calculate Net Sales and G.P. from the following:

Cost of Goods Sold

₹ 4,50,000

G.P.

25% on Sales

Solution:

Gross Profit = 25% on sales or \(\frac{1}{4}\) on sales

\(\frac{1}{4}\) on sales = \(\frac{1}{3}\)rd on cost

Gross Profit = \(\frac{1}{3}\) X 4,50,000

=₹ 1,50,000

Cost of Goods sold = Sales – Gross Profit

4,50,000 = Sales – 1,50,000

Sales = ₹ 6,00,000

Question 12

Prepare Profit and Loss Account for the year ended 31st March, 2017 from the following particulars:-

Particulars

(₹)

Particulars

(₹)

General expenses

12,000

Gross profit

7,69,000

Charity

3,000

Carriage Outwards

20,000

Office Lighting

5,000

Office Expenses

16,000

Law Charges

5,800

Fire Insurance Premium

18,000

Advertisement

14,200

Telephone Expenses

13,500

Bank charges

1,200

Establishment expenses

2,500

Commission

7,000

Miscellaneous Expenses

7,100

Rent, Rates and Taxes

30,000

Discount Received

6,200

Interest on investments

12,000

Traveller’s salary

60,000

Sundry Receipts

6,000

Repair

4,300

Indirect expenses

2,100

Commission Cr.

2,000

Printing and Stationery

1,500

Solution:

Profit and Loss Account for the year ended March 31, 2017

Dr.

Cr.

Particulars

Amount ₹

Particulars

Amount ₹

General Expenses

12,000

Gross Profit

7,69,000

Charity

3,000

Interest on Investments

12,000

Office Lighting

5,000

Sundry Receipts

6,000

Law Charges

5,800

Discount Received

6,200

Advertisement

14,200

Commission Received

2,000

Bank Charges

1,200

Commission

7,000

Rent, Rates and Taxes

30,000

Indirect Expenses

2,100

Printing & Stationery

1,500

Carriage Outwards

20,000

Office Expenses

16,000

Fire Insurance Premium

18,000

Telephone Expenses

13,500

Establishment Expenses

2,500

Miscellaneous Expenses

7,100

Traveler’s Salary

60,000

Repair

4,300

Net Profit

5,72,000

7,95,200

7,95,200

Question 13

Calculate the amount of gross profit, operating profit and net profit on the basis of the following balances extracted from the books of M/s Rajiv & Sons for the year ended March 31, 2017.

Opening Stock

50,000

Net Sales

11,00,000

Net Purchases

6,00,000

Direct Expenses

60,000

Administration Expenses

45,000

Selling and Distribution Expenses

65,000

Loss due to Fire

20,000

Closing Stock

70,000

Solution:

Trading Account for the year ended March 31, 2017

Dr.

Cr.

Particulars

Amount ₹

Particulars

Amount ₹

Opening Stock

50,000

Net Sales

11,00,000

Net Purchases

6,00,000

Closing Stock

70,000

Direct Expenses

60,000

Gross Profit (Balancing Figure)

4,60,000

11,70,000

11,70,000

Profit and Loss Account for the year ended March 31, 2017

Dr.

Cr.

Particulars

Amount ₹

Particulars

Amount ₹

Administration Expenses

45,000

Gross Profit

4,60,000

Selling & Distribution Expenses

65,000

Loss by Fire

20,000

Net Profit

3,30,000

4,60,000

4,60,000

Working Note:

Operating Profit = Net Profit − Non-Operating Income + Non-Operating Expenses

= 3,30,000 − 0 + 20,000

= Rs 3,50,000

Operating Profit = Net Profit − Non-Operating Income + Non-Operating Expenses = 3,30,000 − 0 + 20,000 = Rs 3,50,000

Since, loss by fire is a non-operating expense, therefore, it is added to the net profit to appear on the operating profit.

Question 14

Calculate the operating profit from the following:

Net Profit

5,00,000

Dividend Received

6,000

Loss on sale of Furniture

12,000

Loss by Fire

50,000

Salaries

1,20,000

Interest on Loan from Bank

10,000

Rent Received

24,000

Donation

5,100

Solution:

Operating Profit = Net Profit − Non-Operating Income + Non-Operating Expenses

Non-Operating Income = Dividend Received + Rent Received

=₹ 6,000 + ₹ 24,000

= ₹ 30,000

Non-Operating Expenses = Loss on Sale of Furniture + Loss by Fire + Interest on Loan + Donation

= ₹ 12,000 +​ ₹ 50,000 + ₹ 10,000 + ₹ 5,100

= ₹ 77,100

∴ Operating Profit = ₹ 5,00,000 − ₹ 30,000 + ₹ 77,100

= ₹ 5,47,100

Operating Profit = Net Profit − Non-Operating Income + Non-Operating ExpensesNon-Operating Income = Dividend Received + Rent Received ₹ 6,000 + ₹ 24,000 = ₹ 30,000

Non-Operating Expenses = Loss on Sale of Furniture + Loss by Fire + Interest on Loan + Donation

= ₹ 12,000 +₹​ 50,000 + ₹ 10,000 +₹ 5,100

= ₹ 77,100∴ Operating Profit = ₹ 5,00,000 − ₹ 30,000 + ₹ 77,100

= ₹ 5,47,100

Note: Salary is an operating expense and taken while evaluting net profit, so, it will not be calculated now.

Question 15

A merchant has earned a Net Profit of ₹ 57,200 for the year ended 31st March 2017. Other balances in his Ledger are as under:-

Dr. Balances

Cr. Balances

Cash at Bank

4,800

Bills Payable

3,200

Cash in Hand

1,200

Creditors

61,300

Furniture and Fixtures

7,500

Loan

50,000

Debtors

80,100

Capital

3,32,300

Closing Stock

70,000

Motor Car

40,000

Building

1,50,000

Plant and Machinery

1,20,000

Bills Receivable

4,400

Investments

20,000

Drawings

6,000

Prepare his Balance Sheet as at 31st March, 2017.

Solution:

Trading Account

Dr.

Cr.

Particulars

Amount ₹

Particulars

Amount ₹

Opening Stock

40,000

Sales

1,27,000

Purchases

60,000

Less: Sales Returns

1,500

1,25,500

Less: Purchases Returns

1,275

58,725

Closing Stock

35,000

Wages

10,000

Freight inwards

1,000

Gross Profit (Balancing Figure)

50,775

1,60,500

1,60,500

Profit and Loss Account

Dr.

Cr.

Particulars

Amount ₹

Particulars

Amount ₹

Discount Allowed

350

Gross Profit

50,775

Bank Charges

100

Discount Received

800

Salaries

7,000

Freight Outwards

1,200

Rent, Rates and Taxes

2,000

Advertisement

2,000

Net Profit

38,925

51,575

51,575

Balance Sheet

Liabilities

Amount ₹

Assets

Amount ₹

Capital

1,13,075

Fixed Assets

Add: Net Profit

38,925

1,52,000

Plant & Machinery

90,000

Current Liabilities

Current Assets

Sundry Creditors

20,000

Sundry Debtors

45,000

Bills Payable

5,000

Cash at Bank

7,000

Closing Stock

35,000

1,77,000

1,77,000

Question 17

Following is the Trial Balance of Sh. Damodar Parshad as at 31st March, 2016:-

Dr. Balances

(₹)

Cr. Balances

(₹)

Stock 1-4-2015

10,000

Discount Received

750

Purchases

58,000

Return Outwards

2,600

Wages

4,700

Sales

98,650

Returns Inwards

3,520

B/P

3,000

Carriage on Purchases

2,360

Sundry Creditors

5,600

Carriage on Sales

710

Creditors for Rent

500

Office Salaries

4,800

Capital

40,000

Rent and Taxes

2,400

Loan from X

10,000

Cash

1,100

Commission

1,200

Bank Balance

7,820

Bad-debts

600

Discount allowed

640

Land and Building

20,000

Scooter

6,600

Scooter Repairs

850

B/R

3,500

Commission

1,800

Sundry Debtors

25,400

Interest on X‘s Loan

1,500

Drawings

6,000

1,62,300

1,62,300

Prepare a Trading and Profit and Loss Account for the year ended on 31-3-2016 and the Balance Sheet as at that date. The Stock on 31st March, 2016 was ₹ 22,000.

Solution:

Trading Account of Sh. Damodar Parshad

Dr.

Cr.

Particulars

Amount ₹

Particulars

Amount ₹

Opening Stock

10,000

Sales

98,650

Purchases

58,000

Less: Return Inwards

3,520

95,130

Less: Return Outwards

2,600

55,400

Closing Stock

22,000

Wages

4,700

Carriage on Purchase

2,360

Gross Profit (Balancing Figure)

44,670

1,17,130

1,17,130

Profit and Loss Account

Dr.

Cr.

Particulars

Amount (₹)

Particulars

Amount (₹)

Carriage on sales

710

Gross Profit

44,670

Office Salaries

4,800

Discount Received

750

Rent & Taxes

2,400

Commission

1,200

Bad Debts

600

Discount Allowed

640

Scooter Repairs

850

Commission

1,800

Interest on X’s Loan

1,500

Net Profit

33,320

46,620

46,620

Balance Sheet

as on March 31, 2016

Liabilities

Amount (₹)

Assets

Amount (₹)

Capital

40,000

Fixed Assets

Add: Net Profit

33,320

Land & Building

20,000

Less: Drawings

6,000

67,320

Scooter

6,600

Loan from X

10,000

Current Liabilities

Current Assets

Creditors

5,600

Closing Stock

22,000

Bills Payable

3,000

Debtors

25,400

Creditors for Rent

500

Bills Receivable

3,500

Cash at bank

7,820

Cash in hand

1,100

86,420

86,420

Question 18

From the following balances extracted from the books of Sh. Badri Vishal on 31st March, 2017, prepare a Trading Account, P & L A/c and a Balance Sheet. Closing Stock valued on that date was ₹ 15,000.

Dr.

(₹)

Cr.

(₹)

Capital

1,28,200

Household Expenses

10,000

Sales

1,80,000

Return inwards

4,000

Return outwards

6,000

Purchases

1,50,000

Cash at Shop

1,600

Bank Overdraft

15,000

Interest on Overdraft

1,500

Creditors

17,800

Stock at the Commencement

18,000

Freight

8,500

Rent and Taxes

7,000

Debtors

32,600

Commission

3,000

2,200

Freehold property

30,000

Sundry expenses

3,900

Salaries and wages

20,000

Life Insurance Premium

1,800

Insurance Premium

1,600

Motor Vehicle

39,800

Typewriter

8,000

Interest

800

Carriage inwards

2,000

Carriage outwards

800

Power

2,200

Audit Fee

1,700

Lighting

2,000

3,50,000

3,50,000

Solution:

Trading Account of Sh. Badri Vishal

Dr.

Cr.

Particulars

Amount ₹

Particulars

Amount ₹

Opening Stock

18,000

Sales

1,80,000

Purchases

1,50,000

Less: Return Inwards

4,000

1,76,000

Less: Return Outwards

6,000

1,44,000

Closing Stock

15,000

Freight

8,500

Carriage Inwards

2,000

Power

2,200

Gross Profit (Balancing Figure)

16,300

1,91,000

1,91,000

Profit and Loss Account for the year ended March 31, 2017

Dr.

Cr.

Particulars

Amount

(Rs)

Particulars

Amount (Rs)

Interest on Overdraft

1,500

Gross Profit

16,300

Rent & Taxes

7,000

Commission Received

2,200

Commission

3,000

Interest Received

800

Sundry Expenses

3,900

Net Loss (Balancing Figure)

22,200

Salaries & Wages

20,000

Insurance Premium

1,600

Carriage Outwards

800

Audit Fees

1,700

Lighting

2,000

41,500

41,500

Balance Sheet as on March 31, 2017

Liabilities

Amount ₹

Assets

Amount ₹

Capital

1,28,200

Fixed Assets

Less: Net Loss

22,200

Freehold Property

30,000

Less: Drawings*

11,800

94,200

Motor Vehicle

39,800

Typewriter

8,000

Current Liabilities

Current Assets

Creditors

17,800

Closing Stock

15,000

Bank Overdraft

15,000

Debtors

32,600

Cash in hand

1,600

1,27,000

1,27,000

Question 19

From the following balances of the Ledger of Sh. Akhileshwar Singh, prepare Trading and Profit & Loss Account and Balance Sheet :-

Dr. ₹

Cr. ₹

Stock on 1-4-2016

30,000

Stock on 31-3-2017

46,200

Purchases and Sales

2,30,000

3,45,800

Returns

12,500

15,200

Commission on Purchases

1,200

Freight and Carriage

26,000

Wages and Salary

10,800

Fire Insurance Premium

820

Business Premises

40,000

Sundry Debtors

26,100

Sundry Creditors

26,700

Goodwill

8,000

Patents

8,400

Coal, Gas and Power

12,100

Printing and Stationery

2,100

Postage

710

Travelling Expenses

4,250

Drawings

7,200

Depreciation

1,000

General Expenses

8,350

Capital

89,760

Investments

8,000

Interest on Investments

800

Cash in Hand

2,570

Banker’s Account

5,200

Commission

4,600

4,400

Loan on Mortgage

30,000

Interest on Loan

3,000

B/P

2,280

B/R

4,540

Income Tax

3,000

Horses and Carts

20,300

Discount on Purchases

1,600

5,21,740

5,21,740

Solution:

Trading Account of Sh. Akhilesh Singh

Dr.

Cr.

Particulars

Amount ₹

Particulars

Amount ₹

Opening Stock

30,000

Sales

3,45,800

Purchases

2,30,000

Less: Sales Return

12,500

3,33,300

Less: Purchases Return

15,200

2,14,800

Freight and Carriage

26,000

Commission on Purchases

1,200

Wages & Salaries

10,800

Coal, Gas and Power

12,100

Gross Profit (Balancing Figure)

38,400

3,33,300

3,33,300

Dr.

Profit and Loss Account

Cr.

Particulars

Amount ₹

Particulars

Amount ₹

Fire Insurance Premium

820

Gross Profit

38,400

Printing & Stationery

2,100

Interest on Investments

800

Postage & Telegram

710

Commission Received

4,400

Travelling Expenses

4,250

Discount Received

1,600

Depreciation

1,000

General Expenses

8,350

Commission

4,600

Interest on Loan

3,000

Net Profit

20,370

45,200

45,200

Balance Sheet

Liabilities

Amount ₹

Assets

Amount ₹

Capital

89,760

Fixed Assets

Add: Net Profit

20,370

Goodwill

8,000

Less: Income tax

3,000

Business Premises

40,000

Less: Drawings

7,200

99,930

Patents

8,400

Loan on Mortgage

30,000

Horses and Carts

20,300

Current Liabilities

Current Assets

Creditors

26,700

Closing Stock

46,200

Banker’s Account

5,200

Debtors

26,100

Bills Payable

2,280

Cash in Hand

2,570

Bills Receivable

4,540

Investment

8,000

1,64,110

1,64,110

Question 20

From the following balances prepare Final Accounts as at 31st March 2017:-

Particulars

(₹)

Particulars

(₹)

Stock 1-4-2016

23,500

Freight In

1,100

Purchases

46,800

Freight Out

3,000

Sales

1,30,000

Rent (Factory 1/3, Office 2/3)

7,500

Productive Expenses

27,000

Legal Expenses

800

Unproductive Expenses

5,800

Miscellaneous Receipts

500

Trade Expenses

1,200

Sundry Debtors

30,000

Returns In

6,600

Sundry Creditors

16,100

Returns Out

2,800

Donation

600

Loose Tools

7,200

Bad-Debts

4,750

Trade Marks

5,000

Bad-Debts Recovered

4,000

Discount Cr.

2,100

Bank Charges

2,800

Salaries

9,600

Loan on Mortgage

20,000

Fixed Deposit with Punjab National Bank

10,000

Interest on Loan

2,400

Cash in Hand

1,300

Motor Vehicles

50,000

Leasehold Land

60,000

Capital

1,37,450

Life Insurance Premium

6,000

Value of Closing Stock was ₹ 36,500 on 31st March, 2017.

Solution:

Trading Account

for the year ended March 31, 2017

Dr.

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Opening Stock

23,500

Sales

1,30,000

Purchases

46,800

Less: Return Inwards

6,600

1,23,400

Less: Return Outwards

2,800

44,000

Closing Stock

36,500

Freight Inwards

1,100

Productive Expenses

27,000

Rent (1/3 of 7,500)

2,500

Gross Profit (Balancing Figure)

61,800

1,59,900

1,59,900

Profit and Loss Account

Dr.

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Freight Outwards

3,000

Gross Profit

61,800

Unproductive Wages

5,800

Discount Received

2,100

Trade Expenses

1,200

Misc. Receipts

500

Salaries

9,600

Bad Debts Recovered

4,000

Rent (2/3 of 7,500)

5,000

Legal Expenses

800

Donation

600

Bad Debts

4,750

Bank Charges

2,800

Interest on Loan

2,400

Net Profit

32,450

68,400

68,400

Balance Sheet

Liabilities

Amount ₹

Assets

Amount ₹

Capital

1,37,450

Fixed Assets

Add: Net Profit

32,450

Trade Marks

5,000

Less: Drawings (Life Insurance Premium)

6,000

1,63,900

Fixed Deposit with PNB

10,000

Loan on Mortgage

20,000

Motor Vehicles

50,000

Leasehold Land

60,000

Current Liabilities

Current Assets

Sundry Creditors

16,100

Closing Stock

36,500

Sundry Debtors

30,000

Cash in Hand

1,300

Loose Tools

7,200

2,00,000

2,00,000

Question 21

Arrange assets in the order of permanence:

Sundry Debtors, Stock, Investment, Land and Building, Cash in Hand, Motor Vehicle, Cash at Bank, Goodwill, Plant and Machinery, Furniture, Loose Tools, Marketable Securities.

Solution:

Assets in the order of Permanence:

1. Goodwill

2. Land and Building

3. Plant and Machinery

4. Motor Vehicle

5. Loose Tools

6. Furniture

7. Investment (Long-term)

8. Stock

9. Sundry Debtors

10. Marketable Securities (Short-term)

11. Cash at Bank

12. Cash in Hand

Also Check: DK Goel Solution for Chapter 22 Financial Statements – With Adjustments
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1 Comment

  1. Its vry. Usefill for childrens

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