Class 11 Accountancy Chapter 15 - Financial Statements of Sole Proprietorship

TS Grewal Chapter 15 for Class 11 Solutions for Accountancy

TS Grewal Class 11 Chapter 15 Solutions for Accountancy – Financial Statements of Sole Proprietorship is a concept that students should consider while preparing for their Accountancy exam. Here, are few solutions rendered in a simple and stepwise method.

Class 11 TS Grewal Solutions Accountancy Chapter 15:-Download PDF Here

Board CBSE
Class Class 11
Subject Accountancy
Chapter Chapter 15
Chapter Name Financial Statements of Sole Proprietorship
Number of questions solved 7
Category TS Grewal

Chapter 15 – Financial Statements of Sole Proprietorship defines the below-mentioned concepts:

  • Statement of Cash Flows
  • Capital & Revenue Expenses

TS Grewal Solutions for Class 11 Chapter 15 Accountancy – Financial Statements of Sole Proprietorship

QUESTION 1

Explain whether the below-mentioned expenses are revenue or capital.

i. Expenditure on building for painting and washing

ii. Spent ₹10,000 on platform construction for a machine which is new

iii. ₹25,000 expenses for factory building repair and washing

Solution.

Expenditure Reason
i.Capital Expenditure Spent on an asset to make it useful
ii.Capital Expenditure Spent on an asset to make it useful
iii.Revenue Expenditure Spent on maintaining with the asset

QUESTION 2

Arrange the gross profit of the following transaction.

Particulars Particulars
Debit Balances

Machinery

Building

Debtors

Drawings

Purchase

Wages

Bad Debts

Bank

2,00,000

1,50,000

2,70,000

90,000

9,50,000

5,00,000

10,000

1,50,000

Debit Balances (Contd.)

Opening Stock

Rent

Expenses Sundry

Carriage

Credit Balances

Capital A/c

Creditors

SAles

Commission

2,00,000

45,000

20,000

15,000

10,00,000

1,40,000

14,50,000

10,000

Solution.

Gross Profit
Particulars Particulars
To Opening Stock

To Purchase

To Wages

To Carriage

2,00,000

9,50,000

5,00,000

15,000

By Sales

By Closing Stock

By Goss Profit c/d

(Balancing Fig.)

14,50,000

60,000

1,55,000

16,65,000 16,65,000

QUESTION 3

Manage Gross profit till March 31st, 2018

Particulars Particulars
Stock opening (April 1st, 2017)

Packaging and Freight

Sales

25,000

10,000

1,90,000

Goods bought during the year

Stock closing (March 31st,2018)

Sales packaging expenses

1,40,000

30,000

6,000

Solution.

Gross Profit =Sales+Stock Closing-(Stock Opening+Goods bought+Packaging & Freight)
= 1,90,000+30,000-(25,000+1,40,000+10,000)
= 2,20,000-1,75,000
= ₹45,000

Note: Sales packaging expenses is not a direct expense. Thus, it is not considered will computing the gross profit.

QUESTION 4

Determine the gross profit of the following transaction.

Particulars Particulars
Opening Stock

Closing Stock

Purchase

Carriage on purchase

2,00,000

1,80,000

8,50,000

23,000

Carriage on Sales

Rent Office

Sales

30,000

58,000

14,07,000

Solution.

Dr. Trading Account Cr.
Particulars Particulars
To Opening Stock

To Purchase

To Carriage on purchase

To Gross Profit c/d

(Balancing Fig.)

2,00,000

8,50,000

23,000

5,14,000

By Sales

By Closing Stock

14,07,000

1,80,000

15,87,000 15,87,000

QUESTION 5

Prepare Trading account till March 31st, 2018.

Particulars Particulars
Stock till April 31st, 2017

Purchase

Sales

Carriage Inward

40,000

4,00,000

3,80,000

20,000

Return Outward

Salaries & Wages

Return Inward

Stock till March 31st, 2018

80,000

50,000

20,000

1,30,000

The net realizable market value of stock till March 31st, 2018 was 1,20,000.

Solution.

Trading Account
Particulars Particulars
To Opening Stock

To Purchase 4,00,000

Less: Return Outward (80,000)

To Carriage Inward

To salaries & wages

To Gross Profit c/d

(Balancing Fig.)

40,000

3,20,000

20,000

50,000

20,000

By Sales 3,80,000

Less: Return Inward (20,000)

By Closing Stock

3,60,000

1,20,000

4,80,000 4,80,000

QUESTION 6

Calculate the operating profit.

Particulars Particulars
Net Profit

Gain on selling a machine

Donation

1,00,000

15,000

2,000

Rent Received

Loan Interest

10,000

20,000

Solution.

Operating Profit = Net Profit-Rent Received-Gain on selling a machine+Loan Interest+Donation
= 1,00,000-10,000-15,000+20,000+2,000
=97,000

QUESTION 7

Prepare Balance Sheet.

Particulars Dr.(₹) Cr. (₹)
Capital

Drawing

Creditors & Debtors

Hand Cash

Bank Cash

Plant

Furniture

Net Profit

General Reserve

Closing Stock

44,000

64,000

3,600

72,000

1,00,000

37,000

1,48,000

4,00,000

42,000

16,600

10,000

Total 4,68,600 4,68,600

Solution:

Balance Sheet
Liabilities Assets
Capital 4,00,000

Less:Drawing (44,000)

Add:Net Profit 16,000

General Reserve

Creditors

3,72,600

10,000

42,000

Plant

Furniture

Closing Stock

Debtors

Hand Cash

Bank Cash

1,00,000

37,000

1,48,000

64,000

72,000

3,600

4,24,600 4,24,600

 

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