CLASS 11 COMMERCE ACCOUNTANCY(PART – II) CHAPTER – 3 Accounts From Incomplete Records

Accounts From Incomplete Records

Question 1:

Following information is given below prepare the statement of profit or loss:

Rs
Capital at the end of the year5,00,000
Capital in the beginning of the year7,50,000
`Drawings made during the period3,75,000
Additional Capital introduced50,000

ANSWER:

Statement of Profit and Loss
ParticularsAmount Rs
Capital at the end of the year5,00,000
Add: Drawings made during the year3,75,000
Less: Capital in the beginning of the year(7,50,000)
Less: Additional capital introduced(50,000)
 
Profit during the year75,000 
  

Page No 453:

Question 2:

Manveer started his business on April 01, 2016 with a capital of Rs 4,50,000. On March 31, 2017 his position was as under:

Rs
Cash99,000
Bills receivable75,000
Plant48,000
Land and Building1,80,000
Furniture50,000

He owned Rs 45,000 from his friend Susheel on that date. He withdrew Rs 8,000 per month for his household purposes. Ascertain his profit or loss for this year ended March 31, 2017.

ANSWER:

Books of ManveerStatement of Affairs as on March 31, 2017
LiabilitiesAmount RsAssetsAmount Rs
Loan from Susheel45,000Cash99,000
  Bills Receivable75,000
  Plant48,000
Closing Capital(Balancing Figure)4,07,000Land and Building1,80,000
  Furniture50,000
    
 4,52,000 4,52,000
    
Statement of Profit and Loss as on March 31, 2017
ParticularsRs
Capital on March 31, 20174,07,000
Add: Drawings made during the year (Rs 8,000 × 12)96,000
Less: Capital on April 01, 2016(4,50,000)
  
Profit during the year 201753,000
  

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Question 3:

From the information given below ascertain the profit for the year:

Rs
Capital at the beginning of the year70,000
Additional capital introduced during the year17,500
Stock59,500
Sundry debtors25,900
Business premises8,600
Machinery2,100
Sundry creditors33,400
Drawings made during the year26,400

ANSWER:

Statement of Affairs
LiabilitiesAmount RsAssetsAmount Rs
Sundry Creditors33,400Stock59,500
Capital (Balancing figure)62,700Sundry Debtors25,900
  Business Premises8,600
  Machinery2,100
    
    
 96,100 96,100
    
Statement of Profit and Loss
ParticularsAmountRs
Capital at the end of the year62,700
Add: Drawings made during the year26,400
Less: Capital of the beginning of the year(70,000)
Less: Additional capital introduced during the year(17,500)
Profit during the year1,600
  

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Question 4:

From the following information, calculate capital at the beginning:

Rs
Capital at the end of the year4,00,000
Drawings made during the year60,000
Fresh capital introduce during the year1,00,000
Profit of the current year80,000

ANSWER:

Capital in the beginning=Capital at the end + Drawings – (Fresh Capital Introduced + Profit)
 =4,00,000 + 60,000 – (1,00,000 + 80,000)
 =Rs 2,80,000

Note: As per the solution, the profit should be of Rs 2,80,000; but, the answer given in the book is Rs 2,60,000.

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Question 5:

Following information is given below: calculate the closing capital

April.01, 2016March.31, 2017
RsRs
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)

ANSWER:

Statement of Affairs as on April 01, 2016
LiabilitiesAmount RsAssetsAmountRs
Creditors5,000Bills Receivable30,000
Bills Payable10,000Stock5,000
Capital (Balancing figure)22,000Cash2000
    
 37,000 37,000
    
Statement of Affairs as on March 31, 2017
LiabilitiesAmount RsAssetsAmountRs
Creditors30,000Bills Receivable50,000
Loan50,000Stock30,000
Capital (Balancing figure)20,000Cash20,000
    
 1,00,000 1,00,000
    

Capital on March 31, 2017 (Closing) is Rs 20,000

Statement of Profit and Loss
ParticularsAmountRs
Capital on March 31, 201720,000
Less: Capital on April 01, 2016(22,000)
  
Loss during the year 2017(2,000)
  

Page No 453:

Question 6:

Mrs Anu started firm with a capital of Rs 4,00,000 on 1st October 2016. She borrowed from her friends a sum of Rs 1,00,000 @ 10% per annum (interest paid) for business and brought a further amount to capital Rs 75,000 on March. 31, 2017, her position was :

Rs
Cash30,000
Stock4,70,000
Debtors3,50,000
Creditors3,00,000

He withdrew Rs 8,000 per month for the year. Calculate profit or loss for the year and show your working clearly.

ANSWER:

Books of Mrs. AnuStatement of Affairs as on March 31, 2017
LiabilitiesAmount RsAssetsAmountRs
Creditors3,00,000Cash30,000
10% Loan from Friends1,00,000Stock4,70,000
Capital (Balancing figure)4,50,000Debtors3,50,000
    
 8,50,000 8,50,000
    
Statement of Profit and Loss as on March 31, 2017
ParticularsAmountRs
Capital on March 31, 20174,50,000
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 201723,000
  

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Question 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.

Rs
Capital at the beginning of the year15,00,000
Bills receivable60,000
Cash in hand80,000
Furniture9,00,000
Building10,00,000
Creditors6,00,000
Stock in trade2,00,000
Further capital introduced3,20,000
Drawings made during the period80,000

Ascertainment of statement of affairs at the beginning and at the end of the year and calculation of profit or loss.

ANSWER:

Books of Mr. ArnavStatement of Affairs at the end of year
LiabilitiesAmountRsAssetsAmountRs
Creditors6,00,000Bills Receivable60,000
Capital (Balance figure)16,40,000Cash in Hand80,000
  Furniture9,00,000
  Building10,00,000
  Stock in Trade2,00,000
    
 22,40,000 22,40,000
    
Statement of Profit and Loss
ParticularsAmountRs
Capital at the end of the year16,40,000
Add: Drawings during the year80,000
Less: Capital at the beginning of the year(15,00,000)
Less: Further capital introduced(3,20,000)
Loss during the year1,00,000
  

Page No 454:

Question 8:

Mr. Akshat keeps his books on incomplete records following information is given below:

April 01, 2016March 31, 2017
RsRs
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 Rs 45,000 and introduced Rs 25,000 as further capital in the business compute the profit or loss of the business.

ANSWER:

Books of Mr. AkshatStatement of Affairs as on April 01, 2016
LiabilitiesAmountRsAssetsAmountRs
Creditors66,000Cash in Hand1,000
Bills Payable44,000Cash at Bank15,000
Capital (Balancing figure)1,32,500Stock1,00,000
  Debtors42,500
  Business Premises75,000
  Furniture9,000
 2,42,500 2,42,500
    
Statement of Affairs as on March 31, 2017
LiabilitiesAmountRsAssetsAmountRs
Creditors87,000Cash in Hand1,500
Bills Payable58,000Cash at Bank10,000
Capital (Balancing figure)1,74,000Stock95,000
  Debtors70,000
  Business Premises1,35,000
  Furniture7,500
 3,19,000 3,19,000
    
Statement of Profit and Loss as on March 31, 2017
ParticularsAmountRs
Capital on March 31, 20171,74,000
Add: Drawings made during the year45,000
Less: Capital on April 01, 2016(1,32,500)
Less: Additional capital introduced(25,000)
  
Profit earned by Mr. Akshat during the year 2016–201761,500
  

Page No 454:

Question 9:

Gopal does not keep proper books of account. Following information is given below:

April. 01, 2016March. 31, 2017
RsRs
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 equipments 25,000 30,000
Land and Building 30,000 20,000
Furniture 10,000 10,000

During the year he introduced Rs 20,000 and withdrew Rs 12,000 from the business. Prepare the statement of profit or loss on the basis of given information

ANSWER:

Books of GopalStatement of Affairs as on April 01, 2016
LiabilitiesAmountRsAssetsAmountRs
Sundry Creditors60,000Cash in hand18,000
Loan10,000Cash at bank1,500
  Stock in trade80,000
  Sundry Debtors36,000
  Office Equipments25,000
Capital (Balancing figure)1,30,500Land and Buildings30,000
  Furniture10,000
 2,00,500 2,00,500
    
Statement of Affairs as on March 31, 2017
LiabilitiesAmountRsAssetsAmountRs
Sundry Creditors40,000Cash in Hand12,000
Loan8,000Cash at Bank2,000
  Stock in Trade90,000
  Sundry Debtors60,000
  Office Equipments30,000
Capital (Balancing figure)1,76,000Land and Buildings20,000
  Furniture10,000
 2,24,000 2,24,000
    
Statement of Profit and Loss as on March 31, 2017
ParticularsAmountRs
Capital on March 31, 20171,76,000
Add: Drawing made during 201712,000
Less: Capital on April 01, 2016(1,30,500)
Less: Additional capital introduced(20,000)
  
Profit during the year37,500
  

Note: As per the solution, the profit during the year should be Rs 37,500; whereas, the profit given in the book is Rs 53,500.

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Question 10:

Mr. Muneesh maintains his books of accounts from incomplete records. His books provide the information:

April. 01, 2016March. 31, 2017
RsRs
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 Rs 300 per month for personal expenses. He sold his investment of Rs 16,000 at 2% premium and introduced that amount into business.

ANSWER:

Statement of Affairs as on April 01, 2016
LiabilitiesAmount RsAssetsAmount Rs
Creditors14,000Cash1,200
  Debtors16,800
  Stock22,400
  Furniture7,500
Capital (Balancing figure)33,900  
    
 47,900 47,900
    
Statement of Affairs as on March 31, 2017
LiabilitiesAmount RsAssetsAmount Rs
Creditors15,200Cash1,600
  Bills Receivable2,400
  Debtors27,200
  Stock24,400
Capital (Balancing figure)56,400Investment8,000
  Furniture8,000
 71,600 71,600
    
Statement of Profit and Loss as on March 31, 2017
ParticularsAmountRs
Capital on March 31, 201756,400
Add: Drawing made during the year (Rs 300 × 12)3,600
Less: Capital on April 01, 2016(33,900)
Less: Additional Capital Introduced(16,320)
  
Profit earned during the year 20179,780
  

 Working Note:

Additional Capital Introduced=16,000×102
100
 =16,320 

Page No 455:

Question 11:

Mr. Girdhari Lal does not keep full double entry records. His balance as on April 01, 2016 is as.

LiabilitiesAmountRsAssetsAmountRs
Sundry creditors35,000Cash in hand5,000
Bills payable15,000Cash at bank20,000
Capital40,000Sundry debtors18,000
  Stock22,000
  Furniture8,000
  Plant17,000
 90,000 90,000
    

His position at the end of the year is:

Rs
Cash in hand7,000
Stock8,600
Debtors23,800
Furniture15,000
Plant20,350
Bills payable20,200
Creditors15,000

He withdrew Rs 500 per month out of which to spent Rs 1,500 for business purpose. Prepare the statement of profit or loss.

ANSWER:

Books of Mr. Girdhari LalStatement of Affairs as on April 31, 2016
LiabilitiesAmount RsAssetsAmount Rs
Bills Payable20,200Cash in Hand7,000
Creditors15,000Stock8,600
Capital (Balancing figure)39,550Debtors23,800
  Furniture15,000
  Plant20,350
    
 74,750 74,750
    
Statement of Profit and Loss
ParticularsAmountRs
Capital at the end of the year39,550
Add: Drawings (Rs 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 20174,050
  

Page No 456:

Question 12:

Mr. Ashok does not keep his books properly. Following information is available from his books.

 April. 01, 2016March. 31, 2017
  Rs Rs
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
Stock34,00025,000

During the year Mr. Ashok sold his private car for Rs 50,000 and invested this amount into the business. He withdrew from the business Rs 1,500 per month upto October 31, 2016 and thereafter Rs 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.

ANSWER:

Books of Mr. AshokStatement of Affairs as on April 01, 2016
LiabilitiesAmountRsAssetsAmountRs
Sundry Creditors45,000Sundry Debtors22,500
Loan from Wife66,000Land and Building89,600
Bank Overdraft25,000Cash in Hand7,500
Capital (Balancing figure)18,900Furniture1,300
  Stock34,000
    
 1,54,900 1,54,900
    
Statement of Affairs as on March 31, 2017
LiabilitiesAmountRsAssetsAmountRs
Sundry Creditors93,000Land and Building90,000
Loan from Wife57,000Cash in Hand8,700
  Furniture1,300
  Stock25,000
  Capital (Balancing figure)25,000
    
 1,50,000 1,50,000
    
Statement of Profit and Loss
ParticularsAmountRs
Capital on March 31, 2017(25,000)
Add: Drawings (Rs 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)
  

Note: As per the solution, the loss incurred during the year 2011 is Rs 60,900; while the answer given in the book shows Rs 57,900.

Page No 456:

Question 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, 2016March. 31, 2017
RsRs
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 Rs 5,000 per month for private use.

(b) Depreciation @ 5% on car and furniture @10%.

(c) Outstanding Rent Rs 6,000.

(d) Fresh Capital introduced during the year Rs 30,000.

ANSWER:

Books of Krishna KulkarniStatement of Affairs as on April 01, 2016
LiabilitiesAmountRsAssetsAmountRs
Creditors10,000Cash in Hand10,000
Bills Payable4,000Debtors20,000
  Bills Receivable20,000
  Stock40,000
  Furniture8,000
  Investment40,000
Capital (Balancing figure)2,24,000Cast at Bank1,00,000
    
 2,38,000 2,38,000
    
Statement of Affairs as on March 31, 2017
LiabilitiesAmountRsAssetsAmountRs
Creditors46,000Cash in Hand 36,000
Bills Payable42,000Debtors 80,000
Outstanding Expenses6,000Bills Receivable 24,000
    Car80,000 
     Less: Depreciation 5%(4,000)76,000
  Stock 30,000
    Furniture48,000 
     Less: Depreciation 10%4,80043,200
Capital (Balancing figure)3,35,200Investment 50,000
    Cast at Bank90,000
   4,29,200 4,29,200
      
Statement of Profit and Loss
ParticularsAmountRs
Capital on March 31, 20173,35,200
Add: Drawings made during the year (Rs 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 20171,41,200
  

Page No 457:

Question 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, 2016March. 31, 2017
 RsRs
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 Rs 10,000 p.m. for personal use, fresh capital introduce during the year Rs 2,00,000. A bad debts of Rs 2,000 and a provision of 5% is to be made on debtors outstanding salary Rs 2,400, prepaid insurance Rs 700, depreciation charged on furniture and machine @ 10% p.a.

ANSWER:

Statement of Affairs as on April 31, 2016
LiabilitiesAmountRsAssetsAmountRs
Bank Overdraft30,000Cash in Hand6,000
Sundry Creditors26,000Stock50,000
Bills Payable6,000Sundry Debtors60,000
  Furniture40,000
  Bills Receivable8,000
  Machinery50,000
Capital (Balancing figure)1,82,000Investment30,000
    
 2,44,000 2,44,000
    
Statement of Affairs as on March. 31, 2017
LiabilitiesAmount RsAssetsAmount Rs
Sundry Creditors40,000Cash in Hand 24,000
Bills Payable12,000Stock 80,000
Outstanding Salary2,400Sundry Debtors1,40,000 
     Less: Bad-debt2,000 
   1,38,000 
     Less: 5% Provision(6,900)1,31,100
       
     Furniture60,000 
Capital (Balancing figure)4,33,400 Less: Depreciation(6,000)54,000
      
    Bills Receivable28,000
    Machinery1,00,000 
     Less: Depreciation(10,000)90,000
      
    Investment80,000
    Prepaid Insurance700
   4,87,800 4,87,800
      
          
Statement of Profit and Loss
ParticularsAmountRs
Capital on March 31, 20174,33,400
Add: Drawings made during the year (Rs 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 20171,71,400
  

Note: As per the solution, the profit earned during the year is Rs 1,71,400; while, according to the book, the answer is Rs 1,41,200.

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Question 15:

From the following information calculate the amount to be paid to creditors:
 

Rs
Sundry creditors as on March 31, 20171,80,425
Discount received26,000
Discount allowed24,000
Return outwards37,200
Return inward32,200
Bills accepted1,99,000
Bills endorsed to creditors26,000
Creditors as on April 01, 20162,09,050
Total purchases8,97,000
Cash purchases1,40,000

ANSWER:

Creditors Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Discount Received26,000By Balance b/d1,80,425
Return Outwards37,200Purchases – credit 
Bills accepted1,99,000(8,97,000 – 1,40,000)7,57,000
B/R (endorsed to creditors)26,000  
Balance c/d2,09,050  
    
Cash/Bank (Balancing figure)4,40,175  
    
    
 9,37,425 9,37,425
    
     

 Amount paid to Creditors is Rs 4,40,175.

Page No 457:

Question 16:

Find out the credit purchases from the following:

Rs
Balance of creditors April 01, 201645,000
Balance of creditors March 31, 201736,000
Cash paid to creditors1,80,000
Cheque issued to creditors60,000
Cash purchases75,000
Discount received from creditors5,400
Discount allowed5,000
Bills payable given to creditors12,750
Return outwards7,500
Bills payable dishonoured3,000
Bills receivable endorsed to creditors4,500
Bills receivable endorsed to creditors dishonoured1,800
Return inwards3,700

ANSWER:

Creditors Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Cash1,80,000Balance b/d45,000
Bank60,000B/P (dishonoured)3,000
Discount Received5,400B/R (dishonoured)1,800
B/P (accepted)12,750  
Return Outwards7,500Purchases – credit 
B/R (endorsed to creditors)4,500(Balancing figure)2,56,350
Balance c/d36,000  
    
    
    
 3,06,150 3,06,150
    
     

Credit Purchases Rs 2,56,350

Page No 458:

Question 17:

From the following information calculate total purchases.

Rs
Creditors April. 01, 201630,000
Creditors March. 31, 201720,000
Opening balance of Bills payable25,000
Closing balance of Bills payable35,000
Cash paid to creditors1,51,000
Bills discharged44,500
Cash purchases1,29,000
Return outwards6,000

ANSWER:

Creditors Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Cash1,51,000Balance b/d30,000
Return Outwards6,000Purchases – credit2,01,500
Bills Payable (accepted)54,500(Balancing figure) 
Balance c/d20,000  
    
 2,31,500 2,31,500
    
     
Bills Payable Account
Dr.Cr.
ParticularsAmount RsParticularsAmount Rs
Cash (Bills discharged)44,500Balance b/d25,000
  Creditors – (Bills Payableaccepted) (Balancing figure)54,500
Balance c/d35,000  
    
 79,500 79,500
    
     
Total Purchases= Cash Purchases + Credit Purchases (as per Creditors Account)
 = 1,29,000 + 2,01,500
 = Rs 3,30,500

Page No 458:

Question 18:

The following information is given

Rs
Opening creditors60,000
Cash paid to creditors30,000
Closing creditors36,000
Returns Inward13,000
Bill matured27,000
Bill dishonoured8,000
Purchases return12,000
Discount allowed5,000

Calculate credit purchases during the year

ANSWER:

Creditors Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Cash30,000Balance b/d60,000
Purchases Return12,000B/P (dishonoured)8,000
B/P (accepted) (see note)27,000By Purchases – credit  37,000
Balance c/d36,000(Balancing figure) 
    
 1,05,000 1,05,000
    

Note: In order to match the answer with NCERT book, in the solution bills payable matured has been assumed as bills payable accepted.

Page No 458:

Question 19:

From the following, calculate the amount of bills accepted during the year.

Rs

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

ANSWER:

Bills Payable Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Creditors (dishonoured)28,000Balance b/d1,80,000
Cash/Bank50,000Creditors (acceptance)1,18,000
Balance c/d2,20,000(Balancing figure) 
    
    
 2,98,000 2,98,000
    
     

Page No 458:

Question 20:

Find out the amount of bills matured during the year on the basis of information given below;

Rs
Bills payable dishonoured37,000
Closing balance of Bills payable85,000
Opening balance of Bills payable70,000
Bills payable accepted90,000
Cheque dishonoured23,000

ANSWER:

Bills Payable Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Creditors (Bill dishonoured)37,000Balance b/d70,000
Cash/Bank (Balancing figure)38,000Creditors – acceptance90,000
Balance c/d85,000(Balancing figure) 
    
    
 1,60,000 1,60,000
    

Bill Payable matured during the year is Rs 38,000.

Page No 458:

Question 21:

Prepare the bills payable account from the following and find out missing figure if any :

Rs
Bills accepted1,05,000
Discount received17,000
Purchases returns9,000
Return inwards12,000
Cash paid to accounts payable50,000
Bills receivable endorsed to creditor45,000
Bills dishonoured17,000
Bad debts14,000
Balance of accounts payable (closing)85,000
Credit purchases2,15,000

ANSWER:

Bills Payable Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Creditors (Bills dishonoured)17,000Creditors (acceptance)1,05,000
Cash/Bank (Balancing figure)88,000  
    
 1,05,000 1,05,000
    
Account Payable Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Discount Received17,000Purchases – Credit2,15,000
Purchases Return9,000B/P (dishonoured)17,000
Cash50,000  
B/R (endorsed)45,000Balance b/d79,000
B/P (acceptance)1,05,000(Balancing figure) 
Balance c/d85,000  
    
 3,11,000 3,11,000
    

Bills payable discharged is Rs 88,000 and the opening balance of creditors is Rs 79,000.

Page No 459:

Question 22:

Calculate the amount of bills receivable during the year.

Rs
Opening balance of bills receivable75,000
Bill dishonoured25,000
Bills collected (honoured)1,30,000
Bills receivable endorsed to creditors15,000
Closing balance of bills receivable65,000

ANSWER:

Bills Receivable Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Balance b/d75,000Debtors (B/R dishonoured)25,000
 Cash/Bank (honoured)1,30,000
  Creditors (endorsed)15,000
Debtors (B/R received)1,60,000Balance c/d65,000
(Balancing figure)   
 2,35,000 2,35,000
    

Bills receivable received from Debtors Rs 1,60,000.

Page No 459:

Question 23:

Calculate the amount of bills receivable dishonoured from the following information.

Rs
Opening balance of bills receivable1,20,000
Bills collected (honoured)1,85,000
Bills receivable endorsed22,800
Closing balance of bills receivable50,700
Bills receivable received1,50,000

ANSWER:

Bills Receivable Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Balance b/d1,20,000Cash/Bank (honoured)1,85,000
 Creditors (endorsed)22,800
  Balance c/d50,700
Debtors (B/R received)1,50,000Debtors (dishonoured)11,500
(Balancing figure) (Balancing figure) 
    
 2,70,000 2,70,000
    

Bills Receivable dishonoured is Rs 11,500.

Page No 459:

Question 24:

From the details given below, find out the credit sales and total sales.

Rs
Opening debtors45,000
Closing debtors56,000
Discount allowed2,500
Sales returns8,500
Irrecoverable amount4,000
Bills receivables received12,000
Bills receivable dishonoured3,000
Cheque dishonoured7,700
Cash sales80,000
Cash received from debtors2,30,000
Cheque received from debtors25,000

ANSWER:

Debtors Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Balance b/d45,000Discount Allowed2,500
B/R (dishonoured)3,000Sales Returns8,500
Bank (cheque dishonoured)7,700Bad-debts (irrecoverable amount)4,000
Sales – Credit2,82,300B/R (received)12,000
(Balancing figure) Cash2,30,000
  Bank25,000
  Balance c/d56,000
    
 3,38,000 3,38,000
    

Credit sales is Rs 2,82,300

Total Sales= Cash Sales + Credit Sales
 = 80,000 + 2,82,300
 = Rs 3,62,300

Page No 459:

Question 25:

From the following information, prepare the bills receivable account and total debtors account for the year ended March 31, 2017.

Rs
Opening balance of debtors1,80,000
Opening balance of bills receivable55,000
Cash sales made during the year95,000
Credit sales made during the year14,50,000
Return inwards78,000
Cash received from debtors10,25,000
Discount allowed to debtors55,000
Bills receivable endorsed to creditors60,000
Cash received (bills matured)80,500
Irrecoverable amount10,000
Closing balance of bills receivable on March. 31, 201775,500

ANSWER:

Debtors Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Balance b/d1,80,000Return Inwards78,000
Sales—Credit14,50,000Discount Allowed55,000
  Cash10,25,000
  Bad debt (irrecoverable amount)10,000
  B/R (received)1,61,000
  Balance c/d3,01,000
  (Balancing figure) 
    
 16,30,000 16,30,000
    
     
Bills Receivable Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Balance b/d55,000Cash (Bills matured)80,500
  Creditors (endorsed)60,000
  Balance c/d75,500
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 Rs 1,61,000 and the missing figure in the debtors account–closing balance is Rs 3,01,000.

Page No 460:

Question 26:

Prepare the suitable accounts and find out the missing figure if any.

Rs
Opening balance of debtors14,00,000
Opening balance of bills receivable7,00,000
Closing balance of bills receivable3,50,000
Cheque dishonoured27,000
Cash received from debtors10,75,000
Cheque received and deposited in the bank8,25,000
Discount allowed37,500
Irrecoverable amount17,500
Returns inwards28,000
Bills receivable received from customers1,05,000
Bills receivable matured2,80,000
Bills discounted65,000
Bills endorsed to creditors70,000

ANSWER:

Debtors Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Balance b/d14,00,000Cash10,75,000
Bank (cheque dishonoured)27,000Bank8,25,000
B/R (dishonoured)40,000Discount Allowed37,500
  Bad debt (irrecoverable amount)17,500
  Return Inwards28,000
Sales—Credit (Balancing figure)6,21,000B/R (received)1,05,000
    
    
 20,88,000 20,88,000
    
Bills Receivable Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Balance b/d7,00,000Cash (B/R matured)2,80,000
 Bank (Bill endorsed)65,000
  Creditors (endorsed)70,000
Debtors (B/R received)1,05,000Balance c/d3,50,000
  Debtors (dishonoured)40,000
  (Balancing figure) 
 8,05,000 8,05,000
    

Note: As per solution, the missing figure in the bills receivable account is B/R dishonoured of Rs 40,000. The missing figure in the debtors account is the credit sales of Rs 6,21,000, However, the NCERT book shows a credit sales Rs 5,16,000.

In order to match our answer with that of the book, B/R received from the customers is not shown in the debtors account.

Page No 460:

Question 27:

From the following information ascertain the opening balance of sundry debtors and closing balance of sundry creditors

Rs
Opening stock30,000
Closing stock25,000
Opening creditors50,000
Closing debtors75,000
Discount allowed by creditors1,500
Discount allowed to customers2,500
Cash paid to creditors1,35,000
Bills payable accepted during the period30,000
Bills receivable received during the period75,000
Cash received from customers2,20,000
Bills receivable dishonoured3,500
Purchases2,95,000

The rate of gross profit is 25% on selling price and out of the total sales

Rs 85,000 was for cash sales.

(Hint: Total sales = 4,00,000 = 3,00,000 × 100 ×100)
75

ANSWER:

Sundry Debtors Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Balance b/d54,000Discount Allowed2,500
(Balancing figure) B/R (received)75,000
B/R (dishonoured)3,500Cash2,20,000
Sales—Credit3,15,000  
  Balance c/d75,000
    
 3,72,500 3,72,500
    
Sundry Creditors Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Discount Received1,500Balance b/d50,000
Cash1,35,000Purchases – credit2,95,000
B/P (accepted)30,000  
Balance c/d1,78,500  
(Balancing figure)   
    
    
 3,45,000 3,45,000
    

Opening balance of debtors is Rs 54,000 and the closing balance of creditors is Rs 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
 = Rs 3,00,000

Let sales be 100%

 Sales= Cost of Goods sold + Gross Profit
 Or, 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
 = Rs 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
 = Rs 3,15,000

Note: Here, it has been assumed that all purchases were made on credit.

Page No 461:

Question 28:

Mrs Bhavana keeps his books by Single Entry System. You.re 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.
ReceiptsAmount RsPaymentsAmount Rs
Opening balance of cash12,000Paid to creditors53,000
Further capital20,000Business expenses12,000
Received from debtors1,20,000Wage paid30,000
  Bhavana’s drawings15,000
  Balance at bank on35,000
  March. 31,2017 
  Cash in hand7,000
 1,52,000 1,52,000
    

The following information is also available:

 April. 01, 2016March. 31, 2017
  Rs Rs
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%.

ANSWER:

Books of Mrs. BhavanaDebtors Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Balance b/d55,000Cash1,20,000
Sales—Credit1,50,000Balance c/d85,000
    
 2,05,000 2,05,000
    
     
Creditors Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Cash53,000Balance b/d22,000
  Purchases—Credit60,000
Balance c/d29,000  
    
 82,000 82,000
    
     
Statement of Affairs as on April.01, 2016
 
 
ParticularsAmountRsParticularsAmountRs
Creditors22,000Debtors55,000
Capital—Opening5,00,000Stock35,000
(Balancing figure) Plant1,00,000
  Machinery50,000
  Land and Building2,50,000
  Investment20,000
  Cash12,000
    
 5,22,000 5,22,000
    

Note: It has been assumed that total sales are credit sales (i.e. all sales are made on credit) and total purchases are credit purchases (i.e. all purchases are made on credit).

Plant of Rs 1,00,000 has been taken in to the statement of affairs on April 01, 2016, instead of Rs 10,00,000.

Trading Account as on March 31, 2017
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Opening Stock35,000Sales1,50,000
Purchases60,000Closing Stock70,000
Wages30,000  
Profit and Loss (Gross Profit)95,000  
(Balancing figure)   
    
 2,20,000 2,20,000
    
     
Profit and Loss Account
Dr.Cr.
ParticularsAmountRsParticularsAmountRs
Business Expenses12,000Trading (Gross profit)95,000
Depreciation on Plant10,000  
Depreciation on Building25,000  
Depreciation Machines2,500  
Provision for Doubtful Debt4,250  
Net Profit41,250  
(Balancing figure)   
    
 95,000 95,000
    
     
Balance Sheet as on March 31, 2017
       
LiabilitiesAmountRsAssetsAmountRs
Creditors 29,000Debtors85,000 
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 Plant1,00,000 
  5,61,250  Less: 10% Depreciation(10,000)90,000
 Less: Drawings (15,000)5,46,250  
    Machinery50,000 
    Less: 10% Depreciation(2,500)47,500
      
   Land and Building2,50,000 
    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