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NCERT · Class 11 · Accountancy

Chapter 10: Financial Statements – 2

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Numerical Question for NCERT Accountancy Solutions Class 11 Chapter 10

15 questions
Q11Written answer

From the following balances extracted from the book of M/s Manju Chawla on March 31, 2017, prepare the trading and profit and loss accounts and a balance sheet as on this date.

Account Title Amount

₹

 Amount

₹
Opening stock 10,000
Purchases and sales 40,000 80,000
Returns 200 600
Wages 6,000
Dock and cleaning charges 4,000
Lighting 500
Misc. Income 6,000
Rent 2,000
Capital 40,000
Drawings 2,000
Debtors and creditors 6,000 7,000
Cash 3,000
Investment 6,000
Patent 4,000
Land and machinery 43,000
Donations and charity 600
Sales tax collected 1,000
Furniture 11,300
1,36,600 1,36,600

The closing stock was ₹ 2,000.

(a) Interest on drawings @ 7% and interest on capital @ 5%.

(b) Land and machinery are depreciated at 5%.

(c) Interest on investment @ 6%.

(d) Unexpired rent ₹ 100.

(e) Charge 5% depreciation on furniture.

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Worked solution

The solution is given below:

Trading Account
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Opening Stock 10,000 Sales 80,000
Purchases 40,000 Less: Sales Return 200 79,800
Less: Purchases Return 600 39,400 Closing Stock 2,000
Wages 6,000
Dock and Cleaning Charges 4,000
Gross Profit 22,400
81,800 81,800
Profit and Loss Account
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Lighting 500 Gross Profit 22,400
Donations and Charity 600 Miscellaneous Income 6,000
Interest on Capital 2,000 Rent 2,000
Depreciation on Furniture 565 Less: Unearned Rent 100 1,900
Depreciation on Land and Machinery 2,150 Interest on Drawings 140
Net Profit 24,985 Interest on Investment 360
30,800 30,800
Balance Sheet
Liabilities Amount

₹

 Assets Amount

₹
Capital 40,000 Debtors 6,000
Add: Interest on Capital 2,000 Cash 3,000
Add: Net Profit 24,985 Investment 6,000
Less: Drawings 2,000 Add: Interest on Investment 360 6,360
Less: Interest on Drawings 140 64,845 Patent 4,000
Creditors 7,000 Land and Machinery 43,000
Sales Tax Collected 1,000 Less: Depreciation 2,150 40,850
Unearned Rent 100
Furniture 11,300
Less: Depreciation 565 10,735
Closing Stock 2,000
72,945 72,945
Q12Written answer

The following balances were extracted from the books of M/s Panchsheel Garments on March 31, 2017.

Account Title Debit

Amount

₹

 Account Title Credit

Amount

₹
Opening stock 16,000 Sales 1,12,000
Purchases 67,600 Return outwards 3,200
Return Inwards 4,600 Discount 1,400
Carriage inwards 1,400 Bank overdraft 10,000
General expenses 2,400 Commission 1,800
Insurance 4,000 Creditors 16,000
Scooter expenses 200 Capital 50,000
Salary 8,800    
Cash in hand 4,000    
Scooter 8,000    
Furniture 5,200    
Buildings 65,000    
Debtors 6,000    
Wages 1,200    
  1,94,400   1,94,400

Prepare the trading and profit and loss account for the year ended March 31, 2017, and a balance sheet as on that date.

(a) Unexpired insurance ₹ 1,000.

(b) Salary due but not paid ₹ 1,800.

(c) Wages outstanding ₹ 200.

(d) Interest on capital 5%.

(e) Scooter is depreciated @ 5%.

(f) Furniture is depreciated @ 10%.

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Worked solution
Trading Account
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Opening Stock 16,000 Sales 1,12,000
Purchases 67,600 Less: Return Inwards 4,600 1,07,400
Less: Return Outwards 3,200 64,400 Closing Stock 15,000
Carriage Inwards 1,400
Wages 1,200
Add: Outstanding Wages 200 1,400
Gross Profit 39,200
1,22,400 1,22,400
Profit and Loss Account
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
General Expenses 2,400 Gross Profit 39,200
Insurance 4,000 Discount 1,400
Less: Unexpired Insurance 1,000 3,000 Commission 1,800
Scooter Expenses 200
Salary 8,800
Add: Outstanding Salary 1,800 10,600
Interest on Capital 2,500
Depreciation on Scooter 400
Depreciation on Furniture 520
Net Profit 22,780
 42,400  42,400
Balance Sheet
Liabilities Amount

₹

 Assets Amount

₹
Capital 50,000 Cash in Hand 4,000
Add: Interest on Capital 2,500 Scooter 8,000
Add: Net Profit 22,780 75,280 Less: Depreciation 400 7,600
Bank Overdraft 10,000 Furniture 5,200
Creditors 16,000 Less: Depreciation 520 4,680
Outstanding Salary 1,800 Buildings 65,000
Outstanding Wages 200 Debtors 6,000
Unexpired Insurance 1,000
Closing Stock 15,000
1,03,280 1,03,280
Q13Written answer

Prepare the trading and profit and loss account and balance sheet of M/s Control Device India on March 31, 2017, from the following balance as on that date.

Account Title Debit

Amount

₹

 Credit

Amount

₹
Drawings and capital 19,530 67,500
Purchase and sales 45,000 1,12,500
Salary and commission 25,470 1,575
Carriage 2,700  
Plant and machinery 27,000  
Furniture 6,750  
Opening stock 42,300  
Insurance premium 2,700  
Interest   7,425
Bank overdraft   24,660
Rent and taxes 2,160  
Wages 11,215  
Returns 2,385 1,440
Carriage outwards 1,485  
Debtors and creditors 36,000 58,500
General expenses 6,975  
Octroi 530  
Investment 41,400  
  2,73,600 2,73,600

The closing stock was valued ₹ 20,000.

(a) Interest on capital @ 10%.

(b) Interest on drawings @ 5%.

(c) Wages outstanding ₹ 50.

(d) Outstanding salary ₹ 20.

(e) Provide a depreciation @ 5% on plant and machinery.

(f) Make a 5% provision on debtors.

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Worked solution

The solution is given below:

Trading Account
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Opening Stock 42,300 Sales 1,12,500
Purchases 45,000 Less: Sales Return 2,385 1,10,115
Less: Purchases Return 1,440 43,560 Closing Stock 20,000
Carriage 2,700
Wages 11,215
Add: Outstanding Wages 50 11,265
Octroi 530
Gross Profit 29,760
1,30,115 1,30,115
Balance Sheet
Liabilities Amount

₹

 Assets Amount

₹
Capital 67,500 Plant and Machinery 27,000
Add: Interest on Capital 6,750 Less: Depreciation 1,350 25,650
Less: Net Loss 8,973 Furniture 6,750
Less: Drawings 19,530 Debtors 36,000
Less: Interest on Drawings 977 44,770 Less: New Provision 1,800 34,200
Bank Overdraft 24,660 Investment 41,400
Creditors 58,500 Closing Stock 20,000
Outstanding Wages 50
Salary Outstanding 20
1,28,000 1,28,000

 

Q14Written answer

The following balances appeared in the trial balance of M/s Kapil Traders as on March 31, 2017

  ₹
Sundry debtors 30,500
Bad debts 500
Provision for doubtful debts 2,000

The partners of the firm agreed to record the following adjustments in the books of the Firm. Further, bad debts ₹300. Maintain provision for bad debts at 10%. Show the following adjustments in the bad debts account, provision account, debtors account, profit and loss account and balance sheet.

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Worked solution

The solution is given below:

Profit and Loss Account
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Bad Debts 500
Add: Further Bad Debts 300
Add: New Provision 3,020
Less: Old Provision 2,000 1,820
Balance Sheet
Liabilities Amount

₹

 Assets Amount

₹
Debtors 30,500
Less: Further Bad Debts 300
Less: New Provision 3,020 27,180
Debtors Account
Dr. Cr.
Date Particulars Amount

₹

 Date Particulars Amount

₹
2017 2017
March 31 Balance b/d 30,500 March 31 Further Bad Debts 300
March 31 Provision for Doubtful Debts 3,020
March 31 Balance c/d 27,180
30,500 30,500
Bad Debts Account
Dr. Cr.
Date Particulars Amount

₹

 Date Particulars Amount

₹
2017 2017
March 31 Balance b/d 500 March 31 Provision for Doubtful Debts 800
(As per the Trial Balance)
March 31 Sundry Debtors 300
800 800
Provision for Doubtful Debts Account
Dr. Cr.
Date Particulars Amount

₹

 Date Particulars Amount

₹
2017 2016
March 31 Bad Debt 800 April 01 Balance b/d (Old Provision) 2,000
April 01 Profit and Loss 1,820
(Balancing figure)
March 31 Balance b/d 3,020
(New Provision)
3,820 3,820
Q15Written answer

Prepare the bad debts account, provision for the account, profit and loss account and balance sheet from the following information as on March 31, 2017

  ₹
Debtors 80,000
Bad debts 2,000
Provision for doubtful debts 5,000

 Adjustments: 

Bad Debts ₹ 500 Provision on Debtors @ 3%.

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Worked solution

The solution is given below:

Profit and Loss Account
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Bad Debts 2,000 Old Provision for Doubtful Debts 5,000
Add: Further Bad Debts 500
Add: New Provision for Bad Debts 2,385 4,885
Balancing figure 115
5,000 5,000
Balance Sheet
Liabilities Amount

₹

 Assets Amount

₹
Debtors 80,000
Less: Further Bad Debts 500
Less: New Provision on Debtors 2,385 77,115
77,115
Bad Debts Account
Dr. Cr.
Date Particulars Amount

₹

 Date Particulars Amount

₹
2017 2017
Dec.31 Balance b/d 2,000 Dec.31 Provision for Doubtful Debts 2,500
(as per the Trial Balance)
Dec.31 Sundry Debtors 500
2,500 2,500
Provision for Doubtful Debts Account
Dr. Cr.
Date Particulars Amount

₹

 Date Particulars Amount

₹
2017 2017
Dec.31 Bad Debts 2,500 Jan.01 Balance b/d (Old Provision) 5,000
Dec.31 Balance b/d 2,385
(New Provision)
Dec.31 Profit and Loss 115*
(Balancing Figure)
5,000 5,000
Concepts covered in this chapter are listed below:
  • Need for Adjustments
  • Closing Stock
  • Outstanding Expenses
  • Prepaid Expenses
  • Accrued Income
  • Income Received in Advance
  • Depreciation
  • Bad Debts
  • Provision for Bad and Doubtful Debts
  • Provision for Discount on Debtors
  • Manager’s Commission
  • Interest on Capital
Conclusion