NCERT Solutions For Class 11 Accountancy Chapter 11: To complete all of the problems from this chapter in the exam, students must have a thorough comprehension of the underlying concepts and principles given in NCERT Solutions Class 11 Chapter 11 . They are provided to assist students in learning all of the concepts covered in this chapter. The NCERT Solutions Class 11 Accountancy Chapter 11 solves several examples of numerical type questions that demand a lot of practice.
NCERT Solutions for Class 11 Accountancy Chapter 11 PDF
NCERT Solutions for Class 11 Accountancy Ch 11
.pdfobject-container { height: 800px;}
.pdfobject { border: 1px solid #666; }
PDFObject.embed(“https://www.kopykitab.com/blog/wp-content/uploads/2021/07/NCERT-Solutions-for-Class-11-Accountancy-Part-2-Chapter-3.pdf”, “#example1”);
Download the PDF for NCERT Solutions Class 11 Accountancy Chapter 11
NCERT Solutions Class 11 Accountancy Chapter 11: Overview
The NCERT Solutions For Class 11 Accountancy Chapter 11 provides a thorough study resource on the accounting principles that must be followed. It differs depending on the area or the country of establishment, and it satisfies the needs of the nation’s economic and financial state, as well as the needs of the business entity. The NCERT Accountancy Book Class 11 Solutions Chapter 11 gives all the required solutions for various problems in accounting.
Kopy kitaab provides a comprehensive structure of accountancy concepts in a clear language. It also provides solved examples from Chapter 11 of Accounts Class 11. Students will get to learn the types of questions that are often repeated in the exams by following these NCERT Solutions. Therefore, these solutions make it easier to secure good marks in the exam.
Access NCERT Solutions For Class 11 Accountancy Chapter 11
Short Questions for NCERT Accountancy Solutions Class 11 Chapter 11
1. State the meaning of incomplete records?
Accounting records prepared without following the double entry book keeping system strictly are called as incomplete records. In this type of recording mechanism some of the transactions are recorded either by making one entry or no entry. In this way it impacts assets, liabilities, revenue and expenses and hence are known as incomplete records
2. What are the possible reasons for keeping incomplete records?
Incomplete records are kept due to the following reasons:
- Businesspersons lack a requisite accounting knowledge and are more inclined to follow this method.
- Recording transactions using single entry system tends to be less time consuming and requires less maintenance
- It is cost effective way of keeping records as it doesn’t require a specialist
- It gives the owner flexibility to record those transactions which are more important for business
3. Distinguish between statement of affairs and balance sheet.
Basis of Difference | Statement of Affairs | Balance Sheet |
Meaning | It is a statement that shows the assets, liabilities and capital of a business entity on basis of single entry system of bookkeeping | It is a statement showing assets, liabilities and capital of a business entity prepared on the basis of double entry system of bookkeeping |
Reliability | As the data is based on estimates, it is not reliable. | It is more reliable as it based on a tested method of data entry |
Accounting Method | Incomplete records forms the basis of its preparation | Prepared from double entry book keeping |
Accuracy | Very Less | Accurate to a large extent |
4. What practical difficulties are encountered by a trader due to incompleteness of accounting records?
Following difficulties are faced by trader due to incompleteness of accounting records:
1. It is not possible to determine accuracy of accounts and correctly prepare trial balance as the records are not as per the double entry system.
2. It is difficult to make tax authorities believe, the reliability of the income that is computed.
3. Determining and evaluating financial results of a business will not be possible
4. True profit or loss cannot be determined as all transactions are not recorded.
5. Profitability, liquidity and solvency of a business cannot be determined. Hence, investors will be doubtful about investment.
6. Encourages fraud as there is no arithmetical accuracy in the records.
Long Questions for NCERT Accountancy Solutions Class 11 Chapter 11
1. What is meant by a ‘statement of affairs’? How can the profit or loss of a trader be ascertained with the help of a statement of affairs?
It is a statement that shows assets and liabilities, that is prepared at the beginning and end of one accounting period. Assets and liabilities are shown in two sides similar to a balance sheet. However, the basic difference between statement of affairs and balance sheet is that, the former is prepared from incomplete records while the latter is prepared from ledger entries. Capital is said to be the difference between the totals of assets and liabilities.
Capital will be shown at the beginning and end of accounting period when a statement of affairs is prepared. Using this information, a statement of profit and loss is prepared to find out the profit or loss. Adjustments needs to be made for withdrawals by owner and for fresh capital introduced by owners during the period.
A business earns profit if the net results of calculation is positive and is said to make a loss if the results are negative. Thus, profit and loss of owners can be determined using this process.
2. Is it possible to prepare the profit and loss account and the balance sheet from the incomplete book of accounts kept by a trader’? Do you agree? Explain.
It is possible to prepare profit and loss account and balance sheet from incomplete book of accounts by a process known as conversion method. In this method, the incomplete records gets converted to double entry records. It is easy to convert some of the incomplete entries such as debtors, creditors, cash payments, cash sales and cash receipts as they are easily available. However, there will be some transactions for which details are not available. Still such details can be found using logic. Here are some transactions that are necessary for creating complete record.
1. Opening capital
2. Credit Purchases
3. Credit sales
4. Bills Payable accepted
5. Opening Capital
6. Payment to creditors
In some cases payment received from debtors and amount paid to creditors, for such cases it is essential to prepare debtor or creditor account to determine the values first. The final accounts can be prepared after these accounts are prepared.
3. Explain how the following may be ascertained from incomplete records:
(a) Opening capital and closing capital
(b) Credit sales and credit purchases
(c) Payments to creditors and collection from debtors
(d) Closing balance of cash.
1. Opening capital and closing capital: By preparing the opening statement of affairs at the start of the accounting period the opening capital value can be determined, while by preparing a closing statement of affairs, the value of closing capital can be determined.
Statement of Affairs as on….
|
|||
Liabilities | Amount
₹ |
Assets | Amount
₹ |
Bills Payable | – | Land and Building | – |
Creditors | – | Plant and Machinery | – |
Outstanding expenses | – | Furniture | – |
Opening Capital (Balancing Figure)* | – | Stock | – |
Debtors | – | ||
Bank
Cash |
– | ||
Prepaid Expenses | – | ||
Opening Capital (Balancing Figure)* | – | ||
* When total of liabilities are more than total of assets, capital is shown in assets side and represents debit balance.
When the total of assets’ balance exceeds total of liabilities’ balance, capital is shown in the liabilities side.
2. Credit Sales and Credit Purchases: Credit sales are found to be missing from incomplete records. For evaluating it, there is need of preparing total debtors account. The total sales return, if there is any, must be deducted from the total debtors account. The credit sales is given by the balancing figure.
Similarly, to evaluate credit purchases, preparing total creditor account is necessary. Total purchase returns should be deducted from total creditors account. The balancing figure represents the credit purchase.
Total Debtors Account | |||||
Dr. | Cr. | ||||
Particulars | J.F. | Amount
₹ |
Particulars | J.F. | Amount
₹ |
Balance b/d | – | Cash (Cash Received) | – | ||
Bills Receivable | – | Bank (Cheque Received) | – | ||
(Bill Dishonoured) | Discount Allowed | – | |||
Bank (Cheque Dishonoured) | – | Bad Debts | – | ||
Credit Sales (Balancing Figure) | – | Sales Returns | – | ||
Bills Receivable
(Bill Received) |
– | ||||
Balance c/d | – | ||||
Total Creditors Account | |||||
Dr. | Cr. | ||||
Particulars | J.F. | Amount ₹ | Particulars | J.F. | Amount
₹ |
Cash Paid | – | Balance b/d | – | ||
Bank (Cheque Issued) | – | Bank
(Cheque Dishonoured) |
– | ||
Bills Payable (Bills Accepted) | – | Bills Payable (Bills Dishonoured) | – | ||
Discount Received | – | Credit Purchases | – | ||
Purchases Returns | – | (Balancing Figure ) | – | ||
Balance c/d | – | ||||
3. Payment to creditors and collection from debtors: For determining payment to creditors preparing total creditors account is required, by deducting total purchase returns, the balancing figure provides the payment to creditors while for determining collection from debtors, preparing total debtors account is necessary, by deducting total sales returns, the balancing figure provides the collection from debtors.
4. Closing balance of cash: To evaluate closing balance of cash, preparing cash book summary is necessary. Cash book summary includes all receipts from debit and all payments done during that period in credit part, the balancing figure provides the balance of cash. Total creditor or total debtor accounts are required if amount paid to creditors or received from debtors are not present.
Numerical Questions for NCERT Accountancy Solutions Class 11 Chapter 11
1. Following information is given below prepare the statement of profit or loss:
₹ | |
Capital at the end of the year | 5,00,000 |
Capital in the beginning of the year | 7,50,000 |
Drawings made during the period | 3,75,000 |
Additional Capital introduced | 50,000 |
The solution is as follows:
Statement of Profit and Loss | |
Particulars | Amount
₹ |
Capital at the end of the year | 5,00,000 |
Add: Drawings made during the year | 3,75,000 |
Less: Capital in the beginning of the year | (7,50,000) |
Less: Additional capital introduced | (50,000) |
Profit during the year | 75,000 |
2. Manveer started his business on April 01, 2016 with a capital of ₹ 4, 50,000. On March 31, 2017 his position was as under:
₹ | |
Cash | 99,000 |
Bills receivable | 75,000 |
Plant | 48,000 |
Land and Building | 1,80,000 |
Furniture | 50,000 |
He owned ₹ 45,000 from his friend Susheel on that date. He withdrew ₹ 8,000 per month for his household purposes. Ascertain his profit or loss for this year ended March 31, 2017.
The solution is as follows:
Books of Manveer
Statement of Affairs as on March 31, 2017 |
|||
Liabilities | Amount ₹ | Assets | Amount ₹ |
Loan from Susheel | 45,000 | Cash | 99,000 |
Bills Receivable | 75,000 | ||
Plant | 48,000 | ||
Closing Capital
(Balancing Figure) |
4,07,000 | Land and Building | 1,80,000 |
Furniture | 50,000 | ||
4,52,000 | 4,52,000 | ||
Statement of Profit and Loss as on March 31, 2017 | |
Particulars | ₹ |
Capital on March 31, 2017 | 4,07,000 |
Add: Drawings made during the year (₹ 8,000 × 12) | 96,000 |
Less: Capital on April 01, 2016 | (4,50,000) |
Profit during the year 2017 | 53,000 |
3. From the information given below ascertain the profit for the year:
₹ | |
Capital at the beginning of the year | 70,000 |
Additional capital introduced during the year | 17,500 |
Stock | 59,500 |
Sundry debtors | 25,900 |
Business premises | 8,600 |
Machinery | 2,100 |
Sundry creditors | 33,400 |
Drawings made during the year | 26,400 |
The solution is as follows:
Statement of Affairs | |||
Liabilities | Amount ₹ | Assets | Amount ₹ |
Sundry Creditors | 33,400 | Stock | 59,500 |
Capital (Balancing figure) | 62,700 | Sundry Debtors | 25,900 |
Business Premises | 8,600 | ||
Machinery | 2,100 | ||
96,100 | 96,100 | ||
Statement of Profit and Loss | |
Particulars | Amount
₹ |
Capital at the end of the year | 62,700 |
Add: Drawings made during the year | 26,400 |
Less: Capital of the beginning of the year | (70,000) |
Less: Additional capital introduced during the year | (17,500) |
Profit during the year | 1,600 |
4. From the following information, calculate capital at the beginning:
₹ | |
Capital at the end of the year | 4,00,000 |
Drawings made during the year | 60,000 |
Fresh capital introduce during the year | 1,00,000 |
Profit of the current year | 80,000 |
The solution is as follows:
Capital in the beginning | = | Capital at the end + Drawings – (Fresh Capital Introduced + Profit) |
= | 4,00,000 + 60,000 – (1,00,000 + 80,000) | |
= | ₹ 2,80,000 |
5. Following information is given below: calculate the closing capital
April.01, 2016 | March.31, 2017 | |||
₹ | ₹ | |||
Creditors | 5,000 | 30,000 | ||
Bills payable | 10,000 | – | ||
Loan | – | 50,000 | ||
Bills receivable | 30,000 | 50,000 | ||
Stock | 5,000 | 30,000 | ||
Cash | 2,000 | 20,000 |
Calculation of profit or loss and ascertainment of statement of affairs at the end of the year (Opening Balance is given)
The solution is as follows:
Statement of Affairs as on April 01, 2016 | |||
Liabilities | Amount ₹ | Assets | Amount
₹ |
Creditors | 5,000 | Bills Receivable | 30,000 |
Bills Payable | 10,000 | Stock | 5,000 |
Capital (Balancing figure) | 22,000 | Cash | 2000 |
37,000 | 37,000 | ||
Statement of Affairs as on March 31, 2017 | |||
Liabilities | Amount ₹ | Assets | Amount
₹ |
Creditors | 30,000 | Bills Receivable | 50,000 |
Loan | 50,000 | Stock | 30,000 |
Capital (Balancing figure) | 20,000 | Cash | 20,000 |
1,00,000 | 1,00,000 | ||
Capital on March 31, 2017 (Closing) is ₹ 20,000
Statement of Profit and Loss | |
Particulars | Amount
₹ |
Capital on March 31, 2017 | 20,000 |
Less: Capital on April 01, 2016 | (22,000) |
Loss during the year 2017 | (2,000) |
6. Mrs. Anu started firm with a capital of ₹ 4, 00,000 on 1st October 2016. She borrowed from her friends a sum of ₹ 1, 00,000 @ 10% per annum (interest paid) for business and brought a further amount to capital ₹ 75,000 on March. 31, 2017, her position was:
₹ | |
Cash | 30,000 |
Stock | 4,70,000 |
Debtors | 3,50,000 |
Creditors | 3,00,000 |
He withdrew ₹ 8,000 per month for the year. Calculate profit or loss for the year and show your working clearly.
The solution is as follows:
Books of Mrs. Anu
Statement of Affairs as on March 31, 2017 |
|||
Liabilities | Amount ₹ | Assets | Amount
₹ |
Creditors | 3,00,000 | Cash | 30,000 |
10% Loan from Friends | 1,00,000 | Stock | 4,70,000 |
Capital (Balancing figure) | 4,50,000 | Debtors | 3,50,000 |
8,50,000 | 8,50,000 | ||
Statement of Profit and Loss as on March 31, 2017 | |
Particulars | Amount
₹ |
Capital on March 31, 2017 | 4,50,000 |
Add: Drawings during the year (8,000 × 6 months) | 48,000 |
Less: Capital on October 01, 2016 | (4,00,000) |
Less: Additional capital introduced | (75,000) |
Mrs. Anu earned profit during the year 2017 | 23,000 |
7. Mr. Arnav does not keep proper records of his business he provided following information, you are required to prepare a statement showing the profit or loss for the year.
₹ | |
Capital at the beginning of the year | 15,00,000 |
Bills receivable | 60,000 |
Cash in hand | 80,000 |
Furniture | 9,00,000 |
Building | 10,00,000 |
Creditors | 6,00,000 |
Stock in trade | 2,00,000 |
Further capital introduced | 3,20,000 |
Drawings made during the period | 80,000 |
Ascertainment of statement of affairs at the beginning and at the end of the year and calculation of profit or loss.
The solution is as follows:
Books of Mr. Arnav
Statement of Affairs at the end of year |
|||
Liabilities | Amount
₹ |
Assets | Amount
₹ |
Creditors | 6,00,000 | Bills Receivable | 60,000 |
Capital (Balance figure) | 16,40,000 | Cash in Hand | 80,000 |
Furniture | 9,00,000 | ||
Building | 10,00,000 | ||
Stock in Trade | 2,00,000 | ||
22,40,000 | 22,40,000 | ||
Statement of Profit and Loss | |
Particulars | Amount
₹ |
Capital at the end of the year | 16,40,000 |
Add: Drawings during the year | 80,000 |
Less: Capital at the beginning of the year | (15,00,000) |
Less: Further capital introduced | (3,20,000) |
Loss during the year | 1,00,000 |
8. Mr. Akshat keeps his books on incomplete records following information is given below:
April 01, 2016 | March 31, 2017 | |||
₹ | ₹ | |||
Cash in hand | 1,000 | 1,500 | ||
Cash at bank | 15,000 | 10,000 | ||
Stock | 1,00,000 | 95,000 | ||
Debtors | 42,500 | 70,000 | ||
Business premises | 75,000 | 1,35,000 | ||
Furniture | 9,000 | 7,500 | ||
Creditors | 66,000 | 87,000 | ||
Bills payable | 44,000 | 58,000 |
During the year he withdrew ₹ 45,000 and introduced ₹ 25,000 as further capital in the business compute the profit or loss of the business.
The solution is as follows:
Books of Mr. Akshat
Statement of Affairs as on April 01, 2016 |
|||
Liabilities | Amount
₹ |
Assets | Amount
₹ |
Creditors | 66,000 | Cash in Hand | 1,000 |
Bills Payable | 44,000 | Cash at Bank | 15,000 |
Capital (Balancing figure) | 1,32,500 | Stock | 1,00,000 |
Debtors | 42,500 | ||
Business Premises | 75,000 | ||
Furniture | 9,000 | ||
2,42,500 | 2,42,500 | ||
Statement of Affairs as on March 31, 2017 | |||
Liabilities | Amount
₹ |
Assets | Amount
₹ |
Creditors | 87,000 | Cash in Hand | 1,500 |
Bills Payable | 58,000 | Cash at Bank | 10,000 |
Capital (Balancing figure) | 1,74,000 | Stock | 95,000 |
Debtors | 70,000 | ||
Business Premises | 1,35,000 | ||
Furniture | 7,500 | ||
3,19,000 | 3,19,000 | ||
Statement of Profit and Loss as on March 31, 2017 | |
Particulars | Amount
₹ |
Capital on March 31, 2017 | 1,74,000 |
Add: Drawings made during the year | 45,000 |
Less: Capital on April 01, 2016 | (1,32,500) |
Less: Additional capital introduced | (25,000) |
Profit earned by Mr. Akshat during the year 2016–2017 | 61,500 |
9. Gopal does not keep proper books of account. Following information is given below:
April. 01, 2016 | March. 31, 2017 | |||
₹ | ₹ | |||
Cash in hand | 18,000 | 12,000 | ||
Cash at bank | 1,500 | 2,000 | ||
Stock in trade | 80,000 | 90,000 | ||
Sundry debtors | 36,000 | 60,000 | ||
Sundry creditors | 60,000 | 40,000 | ||
Loan | 10,000 | 8,000 | ||
Office equipment | 25,000 | 30,000 | ||
Land and Building | 30,000 | 20,000 | ||
Furniture | 10,000 | 10,000 |
During the year he introduced ₹ 20,000 and withdrew ₹ 12,000 from the business. Prepare the statement of profit or loss on the basis of given information
The solution is as follows:
Books of Gopal
Statement of Affairs as on April 01, 2016 |
|||
Liabilities | Amount
₹ |
Assets | Amount
₹ |
Sundry Creditors | 60,000 | Cash in hand | 18,000 |
Loan | 10,000 | Cash at bank | 1,500 |
Stock in trade | 80,000 | ||
Sundry Debtors | 36,000 | ||
Office Equipments | 25,000 | ||
Capital (Balancing figure) | 1,30,500 | Land and Buildings | 30,000 |
Furniture | 10,000 | ||
2,00,500 | 2,00,500 | ||
Statement of Affairs as on March 31, 2017 | |||
Liabilities | Amount
₹ |
Assets | Amount
₹ |
Sundry Creditors | 40,000 | Cash in Hand | 12,000 |
Loan | 8,000 | Cash at Bank | 2,000 |
Stock in Trade | 90,000 | ||
Sundry Debtors | 60,000 | ||
Office Equipments | 30,000 | ||
Capital (Balancing figure) | 1,76,000 | Land and Buildings | 20,000 |
Furniture | 10,000 | ||
2,24,000 | 2,24,000 | ||
Statement of Profit and Loss as on March 31, 2017 | |
Particulars | Amount
₹ |
Capital on March 31, 2017 | 1,76,000 |
Add: Drawing made during 2017 | 12,000 |
Less: Capital on April 01, 2016 | (1,30,500) |
Less: Additional capital introduced | (20,000) |
Profit during the year | 37,500 |
The profit earned is ₹37,500.
10. Mr. Muneesh maintains his books of accounts from incomplete records. His books provide the information:
April. 01, 2016 | March. 31, 2017 | |||
₹ | ₹ | |||
Cash | 1,200 | 1,600 | ||
Bills receivable | – | 2,400 | ||
Debtors | 16,800 | 27,200 | ||
Stock | 22,400 | 24,400 | ||
Investment | – | 8,000 | ||
Furniture | 7,500 | 8,000 | ||
Creditors | 14,000 | 15,200 |
He withdrew ₹ 300 per month for personal expenses. He sold his investment of ₹ 16,000 at 2% premium and introduced that amount into business.
Statement of Affairs as on April 01, 2016 | |||
Liabilities | Amount ₹ | Assets | Amount ₹ |
Creditors | 14,000 | Cash | 1,200 |
Debtors | 16,800 | ||
Stock | 22,400 | ||
Furniture | 7,500 | ||
Capital (Balancing figure) | 33,900 | ||
47,900 | 47,900 | ||
Statement of Affairs as on March 31, 2017 | |||
Liabilities | Amount ₹ | Assets | Amount ₹ |
Creditors | 15,200 | Cash | 1,600 |
Bills Receivable | 2,400 | ||
Debtors | 27,200 | ||
Stock | 24,400 | ||
Capital (Balancing figure) | 56,400 | Investment | 8,000 |
Furniture | 8,000 | ||
71,600 | 71,600 | ||
Statement of Profit and Loss as on March 31, 2017 | |
Particulars | Amount
₹ |
Capital on March 31, 2017 | 56,400 |
Add: Drawing made during the year (₹ 300 × 12) | 3,600 |
Less: Capital on April 01, 2016 | (33,900) |
Less: Additional Capital Introduced | (16,320) |
Profit earned during the year 2017 | 9,780 |
Working Note:
Additional Capital Introduced | = | 16,000 × | 102 |
100 | |||
= | 16,320 |
11. Mr. Girdhari Lal does not keep full double entry records. His balance as on April 01, 2016 is as.
Liabilities | Amount
₹ |
Assets | Amount
₹ |
Sundry creditors | 35,000 | Cash in hand | 5,000 |
Bills payable | 15,000 | Cash at bank | 20,000 |
Capital | 40,000 | Sundry debtors | 18,000 |
Stock | 22,000 | ||
Furniture | 8,000 | ||
Plant | 17,000 | ||
90,000 | 90,000 | ||
His position at the end of the year is:
₹ | |
Cash in hand | 7,000 |
Stock | 8,600 |
Debtors | 23,800 |
Furniture | 15,000 |
Plant | 20,350 |
Bills payable | 20,200 |
Creditors | 15,000 |
He withdrew ₹ 500 per month out of which to spent ₹ 1,500 for business purpose. Prepare the statement of profit or loss.
The solution is as follows:
Books of Mr. Girdhari Lal
Statement of Affairs as on April 31, 2016 |
|||
Liabilities | Amount ₹ | Assets | Amount ₹ |
Bills Payable | 20,200 | Cash in Hand | 7,000 |
Creditors | 15,000 | Stock | 8,600 |
Capital (Balancing figure) | 39,550 | Debtors | 23,800 |
Furniture | 15,000 | ||
Plant | 20,350 | ||
74,750 | 74,750 | ||
Statement of Profit and Loss | |
Particulars | Amount
₹ |
Capital at the end of the year | 39,550 |
Add: Drawings (₹ 500 × 12 months) | 6,000 |
Less: Capital at the beginning of the year 2016 | (40,000) |
Less: Additional capital introduced | (1,500) |
Profit earned during the year 2017 | 4,050 |
12. Mr. Ashok does not keep his books properly. Following information is available from his books.
April. 01, 2016 | March. 31, 2017 | |||
₹ | ₹ | |||
Sundry creditors | 45,000 | 93,000 | ||
Loan from wife | 66,000 | 57,000 | ||
Sundry debtors | 22,500 | – | ||
Land and Building | 89,600 | 90,000 | ||
Cash in hand | 7,500 | 8,700 | ||
Bank overdraft | 25,000 | – | ||
Furniture | 1,300 | 1,300 | ||
Stock | 34,000 | 25,000 |
During the year Mr. Ashok sold his private car for ₹ 50,000 and invested this amount into the business. He withdrew from the business ₹ 1,500 per month up to October 31, 2016 and thereafter ₹ 4,500 per month as drawings. You are required to prepare the statement of profit or loss and statement of affair as on March 31, 2017.
The solution is as follows:
Books of Mr. Ashok
Statement of Affairs as on April 01, 2016 |
|||
Liabilities | Amount
₹ |
Assets | Amount
₹ |
Sundry Creditors | 45,000 | Sundry Debtors | 22,500 |
Loan from Wife | 66,000 | Land and Building | 89,600 |
Bank Overdraft | 25,000 | Cash in Hand | 7,500 |
Capital (Balancing figure) | 18,900 | Furniture | 1,300 |
Stock | 34,000 | ||
1,54,900 | 1,54,900 | ||
Statement of Affairs as on March 31, 2017 | |||
Liabilities | Amount
₹ |
Assets | Amount
₹ |
Sundry Creditors | 93,000 | Land and Building | 90,000 |
Loan from Wife | 57,000 | Cash in Hand | 8,700 |
Furniture | 1,300 | ||
Stock | 25,000 | ||
Capital (Balancing figure) | 25,000 | ||
1,50,000 | 1,50,000 | ||
Statement of Profit and Loss | |
Particulars | Amount
₹ |
Capital on March 31, 2017 | (25,000) |
Add: Drawings (₹ 1,500 × 7 months) + (4,500 × 5 months) | 33,000 |
Less: Capital on April 01, 2016 | (18,900) |
Less: Additional capital introduced (sale of car) | (50,000) |
Loss during the year 2017 | (60,900) |
The loss during the year 2017 is ₹ 60,900
13. Krishna Kulkarni has not kept proper books of accounts prepare the statement of profit or loss for the year ending December 31, 2011 from the following information:
April. 01, 2016 | March. 31, 2017 | |||
₹ | ₹ | |||
Cash in hand | 10,000 | 36,000 | ||
Debtors | 20,000 | 80,000 | ||
Creditors | 10,000 | 46,000 | ||
Bills receivable | 20,000 | 24,000 | ||
Bills payable | 4,000 | 42,000 | ||
Car | – | 80,000 | ||
Stock | 40,000 | 30,000 | ||
Furniture | 8,000 | 48,000 | ||
Investment | 40,000 | 50,000 | ||
Bank balance | 1,00,000 | 90,000 |
The following adjustments were made:
(a) Krishna withdrew cash ₹ 5,000 per month for private use.
(b) Depreciation @ 5% on car and furniture @10%.
(c) Outstanding Rent ₹ 6,000.
(d) Fresh Capital introduced during the year ₹ 30,000.
The solution is as follows:
Books of Krishna Kulkarni
Statement of Affairs as on April 01, 2016 |
|||
Liabilities | Amount
₹ |
Assets | Amount
₹ |
Creditors | 10,000 | Cash in Hand | 10,000 |
Bills Payable | 4,000 | Debtors | 20,000 |
Bills Receivable | 20,000 | ||
Stock | 40,000 | ||
Furniture | 8,000 | ||
Investment | 40,000 | ||
Capital (Balancing figure) | 2,24,000 | Cast at Bank | 1,00,000 |
2,38,000 | 2,38,000 | ||
Statement of Affairs as on March 31, 2017 | |||||||
Liabilities | Amount
₹ |
Assets | Amount
₹ |
||||
Creditors | 46,000 | Cash in Hand | 36,000 | ||||
Bills Payable | 42,000 | Debtors | 80,000 | ||||
Outstanding Expenses | 6,000 | Bills Receivable | 24,000 | ||||
Car | 80,000 | ||||||
Less: Depreciation 5% | (4,000) | 76,000 | |||||
Stock | 30,000 | ||||||
Furniture | 48,000 | ||||||
Less: Depreciation 10% | 4,800 | 43,200 | |||||
Capital (Balancing figure) | 3,35,200 | Investment | 50,000 | ||||
Cast at Bank | 90,000 | ||||||
4,29,200 | 4,29,200 | ||||||
Statement of Profit and Loss | |
Particulars | Amount
₹ |
Capital on March 31, 2017 | 3,35,200 |
Add: Drawings made during the year (₹ 5,000 × 12 months) | 60,000 |
Less: Capital on April 01, 2016 | (2,24,000) |
Less: Fresh capital introduced during the year | (30,000) |
Profit earned during the year 2017 | 1,41,200 |
14. M/s Saniya Sports Equipment does not keep proper records. From the following information find out profit or loss and also prepare balance sheet for the year ended March 31, 2017
April. 31, 2016 | March. 31, 2017 | |||
₹ | ₹ | |||
Cash in hand | 6,000 | 24,000 | ||
Bank overdraft | 30,000 | – | ||
Stock | 50,000 | 80,000 | ||
Sundry creditors | 26,000 | 40,000 | ||
Sundry debtors | 60,000 | 1,40,000 | ||
Bills payable | 6,000 | 12,000 | ||
Furniture | 40,000 | 60,000 | ||
Bills receivable | 8,000 | 28,000 | ||
Machinery | 50,000 | 1,00,000 | ||
Investment | 30,000 | 80,000 |
Drawing ₹ 10,000 p.m. for personal use, fresh capital introduce during the year ₹ 2, 00,000. A bad debts of ₹ 2,000 and a provision of 5% is to be made on debtors outstanding salary ₹ 2,400, prepaid insurance ₹ 700, depreciation charged on furniture and machine @ 10% p.a.
The solution is as follows:
Statement of Affairs as on April 31, 2016 | |||
Liabilities | Amount
₹ |
Assets | Amount
₹ |
Bank Overdraft | 30,000 | Cash in Hand | 6,000 |
Sundry Creditors | 26,000 | Stock | 50,000 |
Bills Payable | 6,000 | Sundry Debtors | 60,000 |
Furniture | 40,000 | ||
Bills Receivable | 8,000 | ||
Machinery | 50,000 | ||
Capital (Balancing figure) | 1,82,000 | Investment | 30,000 |
2,44,000 | 2,44,000 | ||
Statement of Affairs as on March. 31, 2017 | |||||||||
Liabilities | Amount ₹ | Assets | Amount ₹ | ||||||
Sundry Creditors | 40,000 | Cash in Hand | 24,000 | ||||||
Bills Payable | 12,000 | Stock | 80,000 | ||||||
Outstanding Salary | 2,400 | Sundry Debtors | 1,40,000 | ||||||
Less: Bad-debt | 2,000 | ||||||||
1,38,000 | |||||||||
Less: 5% Provision | (6,900) | 1,31,100 | |||||||
Furniture | 60,000 | ||||||||
Capital (Balancing figure) | 4,33,400 | Less: Depreciation | (6,000) | 54,000 | |||||
Bills Receivable | 28,000 | ||||||||
Machinery | 1,00,000 | ||||||||
Less: Depreciation | (10,000) | 90,000 | |||||||
Investment | 80,000 | ||||||||
Prepaid Insurance | 700 | ||||||||
4,87,800 | 4,87,800 | ||||||||
Statement of Profit and Loss | |
Particulars | Amount
₹ |
Capital on March 31, 2017 | 4,33,400 |
Add: Drawings made during the year (₹ 10,000 × 12) | 1,20,000 |
Less: Capital on April 31, 2016 | (1,82,000) |
Less: Fresh capital introduced during the year | (2,00,000) |
Profit earned during the year 2017 | 1,71,400 |
Profit earned during year 2017 is ₹1, 71,400
15. From the following information calculate the amount to be paid to creditors:
₹ | |
Sundry creditors as on March 31, 2017 | 1,80,425 |
Discount received | 26,000 |
Discount allowed | 24,000 |
Return outwards | 37,200 |
Return inward | 32,200 |
Bills accepted | 1,99,000 |
Bills endorsed to creditors | 26,000 |
Creditors as on April 01, 2016 | 2,09,050 |
Total purchases | 8,97,000 |
Cash purchases | 1,40,000 |
The solution is as follows: |
Creditors Account | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Discount Received | 26,000 | By Balance b/d | 1,80,425 | |
Return Outwards | 37,200 | Purchases – credit | ||
Bills accepted | 1,99,000 | (8,97,000 – 1,40,000) | 7,57,000 | |
B/R (endorsed to creditors) | 26,000 | |||
Balance c/d | 2,09,050 | |||
Cash/Bank (Balancing figure) | 4,40,175 | |||
9,37,425 | 9,37,425 | |||
Amount paid to Creditors is ₹ 4, 40,175.
16. Find out the credit purchases from the following:
₹ | |
Balance of creditors April 01, 2016 | 45,000 |
Balance of creditors March 31, 2017 | 36,000 |
Cash paid to creditors | 1,80,000 |
Cheque issued to creditors | 60,000 |
Cash purchases | 75,000 |
Discount received from creditors | 5,400 |
Discount allowed | 5,000 |
Bills payable given to creditors | 12,750 |
Return outwards | 7,500 |
Bills payable dishonoured | 3,000 |
Bills receivable endorsed to creditors | 4,500 |
Bills receivable endorsed to creditors dishonoured | 1,800 |
Return inwards | 3,700 |
Creditors Account | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Cash | 1,80,000 | Balance b/d | 45,000 | |
Bank | 60,000 | B/P (dishonoured) | 3,000 | |
Discount Received | 5,400 | B/R (dishonoured) | 1,800 | |
B/P (accepted) | 12,750 | |||
Return Outwards | 7,500 | Purchases – credit | ||
B/R (endorsed to creditors) | 4,500 | (Balancing figure) | 2,56,350 | |
Balance c/d | 36,000 | |||
3,06,150 | 3,06,150 | |||
Therefore the Credit Purchases are amounting to ₹ 2, 56,350
17. From the following information calculate total purchases.
₹ | |
Creditors April. 01, 2016 | 30,000 |
Creditors March. 31, 2017 | 20,000 |
Opening balance of Bills payable | 25,000 |
Closing balance of Bills payable | 35,000 |
Cash paid to creditors | 1,51,000 |
Bills discharged | 44,500 |
Cash purchases | 1,29,000 |
Return outwards | 6,000 |
Creditors Account | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Cash | 1,51,000 | Balance b/d | 30,000 | |
Return Outwards | 6,000 | Purchases – credit | 2,01,500 | |
Bills Payable (accepted) | 54,500 | (Balancing figure) | ||
Balance c/d | 20,000 | |||
2,31,500 | 2,31,500 | |||
Bills Payable Account | ||||
Dr. | Cr. | |||
Particulars | Amount ₹ | Particulars | Amount ₹ | |
Cash (Bills discharged) | 44,500 | Balance b/d | 25,000 | |
Creditors – (Bills Payable
accepted) (Balancing figure) |
54,500 | |||
Balance c/d | 35,000 | |||
79,500 | 79,500 | |||
Total Purchases | = Cash Purchases + Credit Purchases (as per Creditors Account) |
= 1,29,000 + 2,01,500 | |
= ₹ 3,30,500 |
18. The following information is given
₹ | |
Opening creditors | 60,000 |
Cash paid to creditors | 30,000 |
Closing creditors | 36,000 |
Returns Inward | 13,000 |
Bill matured | 27,000 |
Bill dishonoured | 8,000 |
Purchases return | 12,000 |
Discount allowed | 5,000 |
Calculate credit purchases during the year
The solution is as follows:
Creditors Account | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Cash | 30,000 | Balance b/d | 60,000 | |
Purchases Return | 12,000 | B/P (dishonoured) | 8,000 | |
B/P (accepted) (see note) | 27,000 | By Purchases – credit | 37,000 | |
Balance c/d | 36,000 | (Balancing figure) | ||
1,05,000 | 1,05,000 | |||
Note: The return inwards and discount allowed belong to the Debtors account. So, it is not considered in the creditors account.
19. From the following, calculate the amount of bills accepted during the year.
₹
Bills payable as on April 01, 2016 1, 80,000
Bills payable as on March 31, 2017 2, 20,000
Bills payable dishonoured during the year 28,000
Bills payable honoured during the year 50,000
The solution is as follows:
Bills Payable Account | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Creditors (dishonoured) | 28,000 | Balance b/d | 1,80,000 | |
Cash/Bank | 50,000 | Creditors (acceptance) | 1,18,000 | |
Balance c/d | 2,20,000 | (Balancing figure) | ||
2,98,000 | 2,98,000 | |||
20. Find out the amount of bills matured during the year on the basis of information given below;
₹ | |
Bills payable dishonoured | 37,000 |
Closing balance of Bills payable | 85,000 |
Opening balance of Bills payable | 70,000 |
Bills payable accepted | 90,000 |
Cheque dishonoured | 23,000 |
The solution is as follows:
Bills Payable Account | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Creditors (Bill dishonoured) | 37,000 | Balance b/d | 70,000 | |
Cash/Bank (Balancing figure) | 38,000 | Creditors – acceptance | 90,000 | |
Balance c/d | 85,000 | (Balancing figure) | ||
1,60,000 | 1,60,000 | |||
Therefore the Bill Payable matured during the year is ₹ 38,000.
21. Prepare the bills payable account from the following and find out missing figure if any:
₹ | |
Bills accepted | 1,05,000 |
Discount received | 17,000 |
Purchases returns | 9,000 |
Return inwards | 12,000 |
Cash paid to accounts payable | 50,000 |
Bills receivable endorsed to creditor | 45,000 |
Bills dishonoured | 17,000 |
Bad debts | 14,000 |
Balance of accounts payable (closing) | 85,000 |
Credit purchases | 2,15,000 |
The solution is as follows:
Bills Payable Account | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Creditors (Bills dishonoured) | 17,000 | Creditors (acceptance) | 1,05,000 | |
Cash/Bank (Balancing figure) | 88,000 | |||
1,05,000 | 1,05,000 | |||
Account Payable Account | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Discount Received | 17,000 | Purchases – Credit | 2,15,000 | |
Purchases Return | 9,000 | B/P (dishonoured) | 17,000 | |
Cash | 50,000 | |||
B/R (endorsed) | 45,000 | Balance b/d | 79,000 | |
B/P (acceptance) | 1,05,000 | (Balancing figure) | ||
Balance c/d | 85,000 | |||
3,11,000 | 3,11,000 | |||
Bills payable discharged is ₹ 88,000 and the opening balance of creditors is ₹ 79,000.
22. Calculate the amount of bills receivable during the year.
₹ | |
Opening balance of bills receivable | 75,000 |
Bill dishonoured | 25,000 |
Bills collected (honoured) | 1,30,000 |
Bills receivable endorsed to creditors | 15,000 |
Closing balance of bills receivable | 65,000 |
The solution is as follows:
Bills Receivable Account | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Balance b/d | 75,000 | Debtors (B/R dishonoured) | 25,000 | |
Cash/Bank (honoured) | 1,30,000 | |||
Creditors (endorsed) | 15,000 | |||
Debtors (B/R received) | 1,60,000 | Balance c/d | 65,000 | |
(Balancing figure) | ||||
2,35,000 | 2,35,000 | |||
Therefore, the Bills receivable received from Debtors ₹ 1, 60,000.
23. Calculate the amount of bills receivable dishonoured from the following information.
₹ | |
Opening balance of bills receivable | 1,20,000 |
Bills collected (honoured) | 1,85,000 |
Bills receivable endorsed | 22,800 |
Closing balance of bills receivable | 50,700 |
Bills receivable received | 1,50,000 |
The solution is as follows:
Bills Receivable Account | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Balance b/d | 1,20,000 | Cash/Bank (honoured) | 1,85,000 | |
Creditors (endorsed) | 22,800 | |||
Balance c/d | 50,700 | |||
Debtors (B/R received) | 1,50,000 | Debtors (dishonoured) | 11,500 | |
(Balancing figure) | (Balancing figure) | |||
2,70,000 | 2,70,000 | |||
So the Bills Receivable dishonoured is ₹ 11,500.
24. From the details given below, find out the credit sales and total sales.
₹ | |
Opening debtors | 45,000 |
Closing debtors | 56,000 |
Discount allowed | 2,500 |
Sales returns | 8,500 |
Irrecoverable amount | 4,000 |
Bills receivables received | 12,000 |
Bills receivable dishonoured | 3,000 |
Cheque dishonoured | 7,700 |
Cash sales | 80,000 |
Cash received from debtors | 2,30,000 |
Cheque received from debtors | 25,000 |
The solution is as follows:
Debtors Account | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Balance b/d | 45,000 | Discount Allowed | 2,500 | |
B/R (dishonoured) | 3,000 | Sales Returns | 8,500 | |
Bank (cheque dishonoured) | 7,700 | Bad-debts (irrecoverable amount) | 4,000 | |
Sales – Credit | 2,82,300 | B/R (received) | 12,000 | |
(Balancing figure) | Cash | 2,30,000 | ||
Bank | 25,000 | |||
Balance c/d | 56,000 | |||
3,38,000 | 3,38,000 | |||
Credit sales is ₹ 2, 82,300
Total Sales | = Cash Sales + Credit Sales |
= 80,000 + 2,82,300 | |
= ₹ 3,62,300 |
25. From the following information, prepare the bills receivable account and total debtors account for the year ended March 31, 2017.
₹ | |
Opening balance of debtors | 1,80,000 |
Opening balance of bills receivable | 55,000 |
Cash sales made during the year | 95,000 |
Credit sales made during the year | 14,50,000 |
Return inwards | 78,000 |
Cash received from debtors | 10,25,000 |
Discount allowed to debtors | 55,000 |
Bills receivable endorsed to creditors | 60,000 |
Cash received (bills matured) | 80,500 |
Irrecoverable amount | 10,000 |
Closing balance of bills receivable on March. 31, 2017 | 75,500 |
The solution is as follows:
Debtors Account | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Balance b/d | 1,80,000 | Return Inwards | 78,000 | |
Sales—Credit | 14,50,000 | Discount Allowed | 55,000 | |
Cash | 10,25,000 | |||
Bad debt (irrecoverable amount) | 10,000 | |||
B/R (received) | 1,61,000 | |||
Balance c/d | 3,01,000 | |||
(Balancing figure) | ||||
16,30,000 | 16,30,000 | |||
Bills Receivable Account | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Balance b/d | 55,000 | Cash (Bills matured) | 80,500 | |
Creditors (endorsed) | 60,000 | |||
Balance c/d | 75,500 | |||
Debtors (received) | 1,61,000 | |||
(Balancing figure) | ||||
2,16,000 | 2,16,000 | |||
The missing figure in the bills receivable account–B/R received from debtors’ is ₹ 1, 61,000 and the missing figure in the debtors account–closing balance is ₹ 3, 01,000.
26. Prepare the suitable accounts and find out the missing figure if any.
₹ | |
Opening balance of debtors | 14,00,000 |
Opening balance of bills receivable | 7,00,000 |
Closing balance of bills receivable | 3,50,000 |
Cheque dishonoured | 27,000 |
Cash received from debtors | 10,75,000 |
Cheque received and deposited in the bank | 8,25,000 |
Discount allowed | 37,500 |
Irrecoverable amount | 17,500 |
Returns inwards | 28,000 |
Bills receivable received from customers | 1,05,000 |
Bills receivable matured | 2,80,000 |
Bills discounted | 65,000 |
Bills endorsed to creditors | 70,000 |
The solution is as follows:
Debtors Account | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Balance b/d | 14,00,000 | Cash | 10,75,000 | |
Bank (cheque dishonoured) | 27,000 | Bank | 8,25,000 | |
B/R (dishonoured) | 40,000 | Discount Allowed | 37,500 | |
Bad debt (irrecoverable amount) | 17,500 | |||
Return Inwards | 28,000 | |||
Sales—Credit (Balancing figure) | 6,21,000 | B/R (received) | 1,05,000 | |
20,88,000 | 20,88,000 | |||
Bills Receivable Account | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Balance b/d | 7,00,000 | Cash (B/R matured) | 2,80,000 | |
Bank (Bill endorsed) | 65,000 | |||
Creditors (endorsed) | 70,000 | |||
Debtors (B/R received) | 1,05,000 | Balance c/d | 3,50,000 | |
Debtors (dishonoured) | 40,000 | |||
(Balancing figure) | ||||
8,05,000 | 8,05,000 | |||
As per solution, the missing figure in the bills receivable account is B/R dishonoured of ₹ 40,000. The missing figure in the debtors account is the credit sales of ₹ 6, 21,000.
27. From the following information ascertain the opening balance of sundry debtors and closing balance of sundry creditors
₹ | |
Opening stock | 30,000 |
Closing stock | 25,000 |
Opening creditors | 50,000 |
Closing debtors | 75,000 |
Discount allowed by creditors | 1,500 |
Discount allowed to customers | 2,500 |
Cash paid to creditors | 1,35,000 |
Bills payable accepted during the period | 30,000 |
Bills receivable received during the period | 75,000 |
Cash received from customers | 2,20,000 |
Bills receivable dishonoured | 3,500 |
Purchases | 2,95,000 |
The rate of gross profit is 25% on selling price and out of the total sales
₹ 85,000 was for cash sales.
(Hint: Total sales = 4,00,000 = 3,00,000 × 100 × | 100 | ) |
75 |
The solution is as follows:
Sundry Debtors Account | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Balance b/d | 54,000 | Discount Allowed | 2,500 | |
(Balancing figure) | B/R (received) | 75,000 | ||
B/R (dishonoured) | 3,500 | Cash | 2,20,000 | |
Sales—Credit | 3,15,000 | |||
Balance c/d | 75,000 | |||
3,72,500 | 3,72,500 | |||
Sundry Creditors Account | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Discount Received | 1,500 | Balance b/d | 50,000 | |
Cash | 1,35,000 | Purchases – credit | 2,95,000 | |
B/P (accepted) | 30,000 | |||
Balance c/d | 1,78,500 | |||
(Balancing figure) | ||||
3,45,000 | 3,45,000 | |||
Opening balance of debtors is ₹ 54,000 and the closing balance of creditors is ₹ 1, 78,500.
Working Notes:
Total Sales = Cash Sales + Credit Sales
Total Sales = Cost of Goods Sold + Gross Profit
Cost of Goods Sold | = Opening Stock + Purchases – Closing Stock |
= 30,000 + 2,95,000 – 25,000 | |
= ₹ 3,00,000 |
Let us assume the sales to be 100%
Sales | = Cost of Goods sold + Gross Profit | |
Then | 100% | = Cost of Goods sold + 25% |
Cost of Goods Sold | = 100% – 25% = 75% |
Gross Profit | = | Cost of Goods Sold | × % of Gross Profit | |
% of Cost of Goods Sold | ||||
= | 3,00,000 | × 25 | ||
75 | ||||
= | 1,00,000 | |||
Sales | = Cost of Goods Sold + Gross Profit |
= 3,00,000 + 1,00,000 | |
= ₹ 4,00,000 |
Total Sales | = Cash Sales + Credit Sales |
Or, 4,00,000 | = 85,000 + Credit Sales |
Or, Credit Sales | = 4,00,000 – 85,000 |
= ₹ 3,15,000 |
Note: It is assumed that all purchases are made on credit.
28. Mrs. Bhavana keeps his books by Single Entry System. You are required to prepare final accounts of her business for the year ended March 31, 2017. Her records relating to cash receipts and cash payments for the above period showed the following particulars:
Summary of Cash | |||
Dr. | Cr. | ||
Receipts | Amount ₹ | Payments | Amount ₹ |
Opening balance of cash | 12,000 | Paid to creditors | 53,000 |
Further capital | 20,000 | Business expenses | 12,000 |
Received from debtors | 1,20,000 | Wage paid | 30,000 |
Bhavana’s drawings | 15,000 | ||
Balance at bank on | 35,000 | ||
March. 31,2017 | |||
Cash in hand | 7,000 | ||
1,52,000 | 1,52,000 | ||
The following information is also available:
April. 01, 2016 | March. 31, 2017 | |||
₹ | ₹ | |||
Debtors | 55,000 | 85,000 | ||
Creditors | 22,000 | 29,000 | ||
Stock | 35,000 | 70,000 | ||
Plant | 10,00,000 | 1,00,000 | ||
Machinery | 50,000 | 50,000 | ||
Land and Building | 2,50,000 | 2,50,000 | ||
Investment | 20,000 | 20,000 |
All her sales and purchases were on credit. Provide depreciation on plant and building by 10% and machinery by 5%, make a provision for bad debts by 5%.
The solution is as follows:
Books of Mrs. Bhavana
Debtors Account |
||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Balance b/d | 55,000 | Cash | 1,20,000 | |
Sales—Credit | 1,50,000 | Balance c/d | 85,000 | |
2,05,000 | 2,05,000 | |||
Creditors Account | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Cash | 53,000 | Balance b/d | 22,000 | |
Purchases—Credit | 60,000 | |||
Balance c/d | 29,000 | |||
82,000 | 82,000 | |||
Statement of Affairs as on April.01, 2016 | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
Creditors | 22,000 | Debtors | 55,000 |
Capital—Opening | 5,00,000 | Stock | 35,000 |
(Balancing figure) | Plant | 1,00,000 | |
Machinery | 50,000 | ||
Land and Building | 2,50,000 | ||
Investment | 20,000 | ||
Cash | 12,000 | ||
5,22,000 | 5,22,000 | ||
Plant of ₹ 1, 00,000 has been taken in to the statement of affairs on April 01, 2016, instead of ₹ 10, 00,000.
Trading Account as on March 31, 2017 | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Opening Stock | 35,000 | Sales | 1,50,000 | |
Purchases | 60,000 | Closing Stock | 70,000 | |
Wages | 30,000 | |||
Profit and Loss (Gross Profit) | 95,000 | |||
(Balancing figure) | ||||
2,20,000 | 2,20,000 | |||
Profit and Loss Account | ||||
Dr. | Cr. | |||
Particulars | Amount
₹ |
Particulars | Amount
₹ |
|
Business Expenses | 12,000 | Trading (Gross profit) | 95,000 | |
Depreciation on Plant | 10,000 | |||
Depreciation on Building | 25,000 | |||
Depreciation Machines | 2,500 | |||
Provision for Doubtful Debt | 4,250 | |||
Net Profit | 41,250 | |||
(Balancing figure) | ||||
95,000 | 95,000 | |||
Balance Sheet as on March 31, 2017 | |||||||||
Liabilities | Amount
₹ |
Assets | Amount
₹ |
||||||
Creditors | 29,000 | Debtors | 85,000 | ||||||
Capital—Opening | 5,00,000 | Less: 5% Provision
for Bad-debt |
(4,250) | 80,750 | |||||
Add: Net Profit | 41,250 | Stock | 70,000 | ||||||
Add: Further Capital | 20,000 | Plant | 1,00,000 | ||||||
5,61,250 | Less: 10% Depreciation | (10,000) | 90,000 | ||||||
Less: Drawings | (15,000) | 5,46,250 | |||||||
Machinery | 50,000 | ||||||||
Less: 10% Depreciation | (2,500) | 47,500 | |||||||
Land and Building | 2,50,000 | ||||||||
Less: 10% Depreciation | (25,000) | 2,25,000 | |||||||
Investment | 20,000 | ||||||||
Cash in Hand | 7,000 | ||||||||
Cash at Bank | 35,000 | ||||||||
5,75,250 | 5,75,250 | ||||||||
Access To Other Chapters And NCERT Solutions Class 11 Accountancy Chapter 11
Chapter 1 Introduction to Accounting
Chapter 2 Theory Base of Accounting
Chapter 3 Recording of Transactions 1
Chapter 4 Recording of Transcations 2
Chapter-5 Bank Reconciliation Statement
Chapter-6 Trial Balance And Rectification Of Errors
Chapter-7 Depreciation, Provisions And Reserves
Chapter-10 Financial Statements – 2
Chapter-12 Applications of Computers in Accounting
Chapter-13 Computerised Accounting System
Chapter-15 Bank Reconciliation Statement
We have provided all the important above in the article regarding the CBSE NCERT Solutions for Class 11 Accountancy Chapter 11. If you have any queries, you can mention them in the comment section.
FAQ on NCERT Solutions for Class 11 Accountancy Chapter 11
How can Incomplete Records be defined?
The term “incomplete records” refers to records that lack a balance sheet. This is a type of accounting in which only a small portion of a company’s financial activities are recorded. This also emphasises the practice of just using single-entry bookkeeping to keep track of accounts. A double-entry book-keeping method of accounting is a highly common practice in which all commercial entities follow. Incomplete Records only allow for single-entry bookkeeping and do not allow for double-entry bookkeeping, resulting in very limited financial status information.
Why do some organizations use Incomplete Records?
Many corporate agencies, listed corporations, or organisations employ the Incomplete Records accounting method in their accounting operations to save money on the costs of a systematic accounting process. When an organisation has limited resources, it tries to conserve revenue to maintain the organization’s economic activities. Even a lack of qualified and capable accountants and staff limits the breadth of maintaining records.
Incomplete Records: This is a very common practice among various business entities where there is a very limited scope of information available about their financial status.
Where can I download NCERT Solutions for Class 11 Accountancy Chapter 11 PDF?
You can download NCERT Solutions for Class 11 Accountancy Chapter 11 PDF from the above article.