TS Grewal Class 11 Accountancy Solutions Chapter 15 – Financial Statements of Sole Proprietorship 2021-22

TS Grewal Class 11 Accountancy Solutions Chapter 15

TS Grewal Class 11 Accountancy Solutions Chapter 15 – Financial Statements of Sole
Proprietorship: 
You can easily download the TS Grewal Class 11 Accountancy Solutions Chapter 15 – Financial Statements of Sole Proprietorship free PDF in the below article. These TS Grewal Class 11 Accountancy Chapter 15 – Financial Statements of Sole Proprietorship Solutions are created by out experts. The questions are explained in the detailed manner which will be very beneficial for your Class 11 Exams. 

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TS Grewal Class 11 Accountancy Solutions for Chapter 15

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

Question 1:

State whether the following expenses are capital or revenue in nature:
(i) Expenses on whitewashing and painting of a building purchased to make it ready for use.
(ii) ₹ 10,000 spent on constructing platform for a new machine.
(iii) Repair expenses of ₹ 25,000 incurred for whitewashing of factory building.
(iv) Insurance premium paid as renewal premium.
(v) Purchased a new car.

ANSWER:

(1) Capital Expenditure: Paid to make an asset ready to use

(2) Capital Expenditure: Paid to make an asset ready to use

(3) Revenue Expenditure: Made for the maintenance of asset

(4) Revenue Expenditure: Part of normal operating cost

(5) Capital Expenditure: Used in business for a number of years

Question 2:

State with reasons whether the following are Capital or Revenue Expenses:
(i) Excise duty paid on purchase of new machine.
(ii) Wages paid to install a machine.
(iii) Repairs carried out on existing car.
(iv) Office block of building repainted for ₹ 50,000.
(v) Paid telephone bill ₹ 2,500.

ANSWER:

(1) Capital Expenditure: Paid for the acquisition of new asset

(2) Capital Expenditure: Paid to make the asset ready to use

(3) Revenue Expenditure: Paid for the running and maintenance of car

(4) Revenue Expenditure: Paid for the maintenance of Building

(5) Revenue Expenditure: Part of normal operating cost

Question 3:

From the following information determine Gross Profit for the year ended 31st March, 2018

 

 

Opening Stock (1st April, 2017)

25,000

Goods purchased during the year

1,40,000

Freight and Packing

10,000

Closing Stock (31st March, 2018)

30,000

Sales

1,90,000

Packing Expenses on Sales

6,000

ANSWER:

Gross Profit

=

 Sales + Closing Stock – (Opening Stock + Freight and Packing + Goods Purchased)

 

=

1,90,000 + 30,000 – (25,000 + 10,000 + 1,40,000)

 

=

2,20,000 – 1,75,000 = Rs 45,000

Alternatively,

Trading Account

for the year ended March 31, 2018

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

25,000

Sales

1,90,000

Purchases

1,40,000

Closing Stock

30,000

Freight and Packing

10,000

 

 

Gross Profit (Balancing Figure)

45,000

 

 

 

2,20,000

 

2,20,000

NotePacking Expenses (Rs 6,000) on Sales is an Indirect Expense, therefore it is not considered to compute the amount of Gross Profit.

Question 4:

Calculate Closing Stock from the following details:
 

 

 

Opening Stock

20,000

Purchases

70,000

Cash Sales

60,000

Credit Sales

40,000

 

 

Rate of Gross Profit on Cost 3313%3313%

 

ANSWER:

Calculation of amount of Closing StockGross Profit=3313% on cost =13rd on cost∴Gross Profit on sales =14th on salesAnd, Sales = Cash Sales + Credit Sales = 60,000+40,000 = Rs 1,00,000So, Gross Profit =1,00,000×14=Rs 25,000Cost of Goods Sold=Sales−Gross Profit                               =1,00,000−25,000=Rs 75,000Cost of Goods Sold=Opening Stock+Purchases+Direct Expenses−Closing Stock75,000=20,000+70,000+0−Closing StockClosing Stock=Rs 15,000

Question 5:

Prepare Trading Account from the transactions givne below:
 

 

 

Opening Stock

23,000

Purchases Return

2,400

Purchases

29,000

Closing Stock

47,700

Sales Return 500 Carriage Inwards 100
Sales

25,400

Depreciation

2,000


Also pass the Journal entries.

ANSWER:

Trading Account

Dr.

 

Cr.

Particulars

Amount

(Rs)

Particulars

Amount

(Rs)

Opening Stock

23,000

Sales

25,400

 

Purchases

29,000

 

Less: Sales Return

(500)

24,900

Less: Purchases Return

(2,400)

26,600

Closing Stock

47,700

Carriage Inwards

100

 

 

Gross Profit (Balancing Figure)

22,900

 

 

 

72,600

 

72,600

 

 

 

 

               

NoteDepreciation is an Indirect Expense, therefore it is not shown in the Trading Account.
 

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

 

 

 

 

 

 

Trading A/c

Dr.

 

52,600

 

 

To Opening Stock A/c

 

 

 

23,000

 

To Purchases A/c

 

 

 

29,000

 

To Carriage Inwards A/c

 

 

 

100

 

To Sales Return A/c

 

 

 

500

 

(Transfer of balances to the debit side of Trading A/c)

 

 

 

 

 

 

 

 

 

 

 

Sales A/c

Dr.

 

25,400

 

 

Purchase Return A/c

Dr.

 

2,400

 

 

To Trading A/c

 

 

 

27,800

 

(Transfer of balances to the credit side of Trading A/c)

 

 

 

 

 

 

 

 

 

 

 

Closing Stock A/c

Dr.

 

47,700

 

 

To Trading A/c

 

 

 

47,700

 

(Recording of Closing Stock)

 

 

 

 

 

 

 

 

 

 

 

Trading A/c

Dr.

 

22,900

 

 

To Profit & Loss A/c

 

 

 

22,900

 

(Transfer of gross profit to the Profit & Loss A/c)

 

 

 

 

We have included complete information regarding CBSE TS Grewal Class 11 Accountancy Solutions Chapter 15 – Financial Statements of Sole Proprietorship. If you have any questions feel free to ask in the comment section. 

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

Can I download TS Grewal Class 11 Accountancy Solutions Chapter 15 – Financial Statements of Sole Proprietorship Free PDF?

Yes, you can download a Free PDF for TS Grewal Class 11 Accountancy Solutions Chapter 15 – Financial Statements of Sole Proprietorship.

What should I read during CBSE Class 11 exam revision?

You can read the chapter summaries or the revision notes for a quick brush-up before your exams.

Does a sole proprietor need financial statements?

Sole proprietors are required to submit annual financial statements that they may draw up themselves.

What are the 4 financial statements typically prepared for a sole proprietorship?

Income Statement. Statement of Retained Earnings – also called Statement of Owners’ Equity, The Balance Sheet, The Statement of Cash Flows.

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