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Standard IX
Mathematics
Computation of Income Tax
Vijay commenc...
Question

Vijay commenced business as food grains merchant on 1st April, 2018 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, 2019 and the Balance Sheet as on that date:
₹
Sales (including Cash Sales ₹ 2,00,000) 5,00,000
Purchases (including Cash Purchases ₹ 1,20,000 4,00,000
Vijay's Drawings (in Cash) 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 personal purposes during the year. On 31st March, 2019, his Debtors amounted to ₹ 1,40,000 and Creditors ₹ 80,000. Stock-in-Trade on that date was ₹ 1,60,000.

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Solution

Trading Account
for the year ended March 31, 2019
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Purchases
4,00,000
Sales
5,00,000
Less: Drawings
12,000
3,88,000
 Closing Stock
1,60,000
Gross Profit
2,72,000
6,60,000
6,60,000
Profit & Loss Account
for the year ended March 31, 2019
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Salary
48,000
 Gross Profit
2,72,000
Trade Expenses
16,000
Bad Debts
4,000
Net Profit
2,04,000
2,72,000
2,72,000
Balance Sheet
as on March 31, 2019
Dr.
Cr.
Liabilities
Amount
(₹)
Assets
Amount
(₹)
Capital
4,00,000
Cash in Hand
2,56,000
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
80,000
 Furniture
80,000
Closing Stock
1,60,000
6,32,000
6,32,000
Cash Account
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
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
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Sales A/c
3,00,000
 Cash A/c
1,60,000
Balance c/d
1,40,000
3,00,000
3,00,000
Creditors Account
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Cash A/c
2,00,000
 Purchases A/c
2,80,000
Balance c/d
80,000
2,80,000
2,80,000

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Q. Vijay commenced business as foodgrains 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) 5,00,000
Purchases (including Cash Purchases ₹1,20,000 4,00,000
Vijay's Drawings (in cash) 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.
Q. Vardhman commenced business on 1st April, 2008, with a capital of ₹ 50,000. He immediately purchased furniture of ₹ 20,000. During the year he received from his uncle a gift of ₹ 3,000 and he borrowed from his father a sum of ₹ 5,000. He had withdrawn ₹ 600 per month for his household expenses. He had no Bank account and all dealings were in cash. He did not maintain any books but following information is given :
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He used goods worth ₹ 1,300 for personal purposes and paid ₹ 500 to his son for examination and college fees.
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₹
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Discount allowed to debtors 800
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Bad-Debts written off 1,500
Trade expenses 1,200
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