NCERT Solutions for Class 11-commerce Accountancy Part II Chapter 10 - Financial Statements

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Chapter 10 - Financial Statements Exercise 411

Solution NUM 1

  

Books of M/s. Rahul Sons.

Trading A/c

for the year ending 31st March 2017

Dr.

 

 

 

 

Cr.

Particulars 

 

Rs. 

Particulars 

 

Rs. 

To Opening Stock

 

50,000

By Sales

1,80,000

 

To Purchases

1,75,000

 

Less: Sales Returns

(3,000)

1,77,000

Less: Purchase Returns

(2,000)

1,73,000

By Closing Stock

 

32,000

To Wages

 

3,000

By Gross Loss c/d

 

17,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,26,000

 

 

2,26,000

 

 

 

 

 

 

 

 

 

Profit and Loss A/c

 for the year ending 31st March 2017

Dr.

 

 

 

 

Cr.

Particulars 

 

Rs. 

Particulars 

 

Rs. 

To Gross Loss b/d

 

17,000

By Discount Received

 

500

To Salary

8,000

 

By Commission Received

4,000

 

Add: Outstanding Salary

1,000

9,000

Less: Advance Commission

(1,000)

3,000

To Discount Allowed

 

1,000

 

 

 

To Insurance

3,200

 

By Rent

6,000

 

Less: Insurance Prepaid

(800)

2,400

Add: Rent Receivable

2,000

8,000

To Rent Rates and Taxes

 

4,300

By Net Loss c/d

 

43,189

To Trade Expenses

 

1,500

 

 

 

To Bad-Debts

2,000

 

 

 

 

Add: Further Bad-Debts

1,000

 

 

 

 

Add: New Provision

4,050

 

 

 

 

Less: Old Provision

(2,500)

4,550

 

 

 

To Discount on Debtors

 

1,539

 

 

 

To Postage

 

300

 

 

 

To Telegram Expenses

 

200

 

 

 

To Depreciation on Building

 

6,600

 

 

 

To Repair and Renewals

 

1,600

 

 

 

To Travelling Expenses

 

4,200

 

 

 

To Legal Fees

 

500

 

 

 

 

 

54,689

 

 

54,689

 

 

 

 

 

 

 

 

 

Balance Sheet

As on 31st March 2017

Liabilities 

Rs. 

Assets 

Rs. 

Capital

3,00,000

 

Debtors

82,000

 

Less: Net loss

(43,189)

 

Less: Further Bad-debts

(1,000)

 

Less: Drawings

(32,000)

2,24,811

Less: New Provision

(4,050)

 

Bills payable

 

22,000

Less: Discount on Debtors

(1,539)

75,411

Loan

 

34,800

Bills Receivable

 

50,000

Advance Commission

 

1,000

Buildings

1,10,000

 

Outstanding Salary

 

1,000

Less: 6% Depreciation

(6,600)

1,03,400

     

Rent Receivable

 

2,000

     

Prepaid insurance

 

800

     

Closing Stock

 

32,000

     

Furniture and fittings

 

20,000

   

2,83,611

   

2,83,611

           

 

 

Chapter 10 - Financial Statements Exercise 412

Solution NUM 2

M/s Green Club Ltd.

Trading A/c

 for the year ending 31st March 2017

Dr.

 

 

 

 

Cr.

Particulars 

 

Rs. 

Particulars 

 

Rs. 

To Opening Stock

 

35,000

By Sales

2,50,000

 

To Purchases

1,25,000

 

Less: Sales Returns

(25,000)

2,25,000

Less: Purchase Returns

(6,000)

1,19,000

By Closing Stock

 

10,000

To Wages

3,000

 

 

 

 

Less: Prepaid Wages

(1,000)

2,000

 

 

 

To Gross Profit c/d

 

79,000

 

 

 

 

 

 

 

 

 

 

 

2,35,000 

 

 

2,35,000 

 

 

 

 

 

 

 

 

Profit and Loss A/c

 for the year ending 31st March 2017

 

Dr.

 

 

 

Cr.

Particulars 

 

Rs. 

Particulars 

Rs. 

To Bad Debts

3,500

 

By Gross Profit b/d

79,000

Add: Further Bad-debts

1,500

 

By Interest on Accrued Investment  

1,155

Add: New Provision

2,910

 

By Discount

1,000

Less: Old Provision

(4,500)

3,410

By Interest Received

5,400

To Discount on Debtors

 

2,280

 

 

To Postage and Telegram

 

600

 

 

To Salary

 

12,300

 

 

To Rent and Rates

 

1,000

 

 

To Packing and Transport

 

500

 

 

To General Expenses

 

400

 

 

To Insurance

 

4,000

 

 

To Discount

 

3,500

 

 

To Depreciation on Machinery

 

1,000

 

 

To Lighting and Heating

 

5,000

 

 

To Net Profit c/d

 

52,565

 

 

 

 

 

 

 

 

 

86,555 

 

86,555 

 

 

 

 

 

           

 

 

Balance Sheet

as on 31st March 2017

Liabilities 

Rs. 

Assets 

Rs. 

Creditors

 

10,000

Cash in hand

 

20,000

Bills Payable

 

20,000

Cash at bank

 

40,000

Capital

75,000

       

Add: Net profit

52,565

1,27,565

Debtors

50,000

 
     

Less: Further Bad-Debts

(1,500)

 
     

Less: New provision

(2,910)

 
     

Less: Discount on Debtors

(2,280)

43,310

           
     

Investment

23,100

 
     

Add: Interest on Investment

1,155

24,255

           
     

Machinery

20,000

 
     

Less: Depreciation

(1,000)

19,000

     

Prepaid Wages

 

1,000

     

Closing Stock

 

10,000

           
           
   

1,57,565 

   

1,57,565 

           

 

 

Chapter 10 - Financial Statements Exercise 413

Solution NUM 3

 

M/s Runway Shine Ltd.

Trading A/c

 for the year ending 31st March 2017

Dr.

 

 

 

 

Cr.

Particulars 

 

Rs. 

Particulars 

 

Rs. 

To Opening Stock

 

50,000

By Sales

2,50,000

 

To Purchases

1,50,000

 

Less: Return Inwards

(2,000)

2,48,000

Less: Return Outwards

(4,500)

1,45,500

By Closing Stock

 

32,500

To Carriage Inwards

 

4,500

 

 

 

To Wages

2,400

 

 

 

 

Add: Outstanding Wages

100

2,500

 

 

 

To Gross Profit c/d

 

78,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,80,500

 

 

2,80,500

 

 

 

 

 

 

 

 

Profit and Loss A/c

for the year ending 31st March 2017

Dr.

 

 

 

Cr.

Particulars 

 

Rs. 

Particulars 

Rs. 

To Carriage Outward

 

400

By Gross Profit b/d

78,000

To Printing and Stationery

 

4,500

By Interest Received  

3,500

To Discount

 

400

By Discount Received

400

To Bad Debts

1,500

 

By Interest Received on Investment  

1,600

Add: Further Bad Debts

1,000

 

 

 

Add: New Provision

2,600

5,100

 

 

To Discount on Debtors

 

500

 

 

To Insurance

 

2,500

 

 

To Postage and telegraphs

 

400

 

 

To Commission

 

200

 

 

To Interest

1,000

 

 

 

Add: outstanding Interest

200

1,200

 

 

To Repair

 

440

 

 

To Lighting Charges

 

500

 

 

To Telephone Charges

 

100

 

 

To Depreciation on motor car

 

1,250

 

 

To Net profit c/d

 

66,010

 

 

 

 

 

 

 

 

 

83,500

 

83,500

 

 

 

 

 

 

 

Balance Sheet

as on 31st March 2017

Liabilities 

Rs. 

Assets 

Rs. 

Capital

1,00,000

 

Cash in Hand

77,800

 

Add: Net profit

66,010

1,66,010

Add: Interest Received

1,600

79,400

Creditors

 

1,25,000

Cash at Bank

 

60,800

Bills payable

 

6,040

Investment

 

32,000

Outstanding interest

 

100

Debtors

53,000

 

Outstanding Wages

 

200

Less: Further bad debts

(1,000)

 
     

Less: New Provision

(2,600)

 
     

Less: Discount on Debtors

(500)

48,900

           
     

Motor Car

25,000

 
     

Less: Depreciation

(1,250)

23,750

     

Bills receivable

 

20,000

     

Closing Stock

 

32,500

   

2,97,350

   

2,97,350

           

 

Chapter 10 - Financial Statements Exercise 414

Solution NUM 4

Trading A/c

 for the year ending 31st March 2017

Dr.

 

 

 

 

Cr.

Particulars 

 

Rs. 

Particulars 

 

Rs. 

To Opening Stock

 

50,000

By Sales

3,50,000

 

To Purchases

1,25,500

 

Less: Return

(2,000)

3,48,000

Less: Return Outwards

(2,500)

1,23,000

By Closing Stock

 

40,000

To Carriage

 

100

 

 

 

To Power

 

3,900

 

 

 

To Gross Profit c/d

 

2,11,000

 

 

 

 

 

 

 

 

 

 

 

3,88,000

 

 

3,88,000

 

 

 

 

 

 

 

 

Profit and Loss A/c

for the year ending 31st March 2017

Dr.

 

 

 

 

Cr.

Particulars 

 

Rs. 

Particulars 

 

Rs. 

To General Expenses

  

2,000

By Gross Profit b/d

  

2,11,000

To Insurance

  

12,400

By Rent

 

5,000

To Bad Debts

2,000

 

By Interest

 

2,000

Add: Provision for Bad Debts

1,625

3,625

By Accrued Interest on Loan

 

150

To Light and Water

 

1,200

 

 

 

To Trade Expenses

2,000

 

 

 

 

Add: Outstanding Trade Expenses

300

2,300

 

 

 

To Salary and Wages

5,400

 

 

 

 

Add: Outstanding Salary

500

5,900

 

 

 

To Depreciation on Building

 

3,440

 

 

 

To Depreciation on Machinery

 

1,725

 

 

 

To Net profit c/d

 

1,85,560

 

 

 

 

 

2,18,150

 

 

2,18,150

 

 

 

 

 

 

 

 

 

Balance Sheet

as on 31st March 2017

Liabilities 

Rs. 

Assets 

Rs. 

Capital

3,00,000

 

Cash in Hand

 

21,200

Add: Net Profit

1,85,560

 

Cash at Bank

 

12,000

Less: Drawings

(10,000)

4,75,560

Freehold Land

 

3,20,000

     

Patents

 

1,20,000

Creditors

 

25,000

Sundry Debtors

32,500

 

Bills payable

 

1,71,700

Less: Provision for bad debts

(1,625)

30,875

Outstanding Trade Expenses

 

300

     

Outstanding Salary

 

500

Building

86,000

 
     

Less: Depreciation

(3,440)

82,560

     

Machinery 

34,500

 
     

Less: Depreciation

(1,725)

32,775

     

Motor vehicle

 

10,500

     

Loan

3,000

 
     

Add: Interest on Loan

150

3,150

     

Closing Stock

 

40,000

   

6,73,060

   

6,73,060

-

         

 

 

Working Note: 

Calculation the Outstanding interest on loan

Loan = 3,000

Interest = 15%

Months (1/9/2016 to 31/12/2016) = 4 months

Ncert Solutions Cbse Class 11-commerce Accountancy Part II Chapter - Financial Statements

 

Chapter 10 - Financial Statements Exercise 415

Solution NUM 5

  

Trading A/c

 for the year ending 31st March 2017

Dr.

 

 

 

 

Cr.

Particulars 

 

Rs. 

Particulars 

 

Rs. 

To Opening Stock

 

25,000

By Sales

2,76,000

 

To Purchases

1,80,000

 

Less: Return Inwards

(7,000)

2,69,000

Less: Return Outwards

(2,000)

1,78,000

By Closing Stock

 

45,000

To Wages

 

10,000

 

 

 

To Freight

 

4,000

 

 

 

To Gross Profit c/d

 

97,000

 

 

 

 

 

 

 

 

 

 

 

3,14,000

 

 

3,14,000

 

 

 

 

 

 

 

 

Profit and Loss A/c

for the year ending 31st March 2017

Dr.

 

 

 

Cr.

Particulars 

Rs. 

Particulars 

 

Rs. 

To Trade Expenses

2,400

By Gross Profit

 

97,000

To Printing and Stationery

2,000

By Old Provision for Bad Debts

4,000

 

To Rent Rates and Taxes

5,000

Less: Bad Debts

(1,000)

 

To Discount Allowed

2,000

Less: New Provision

(1,600)

1,400

To Depreciation on Motor Car

5,100

 

 

 

To Depreciation on Furniture and F.

1,000

 

 

 

To Depreciation on P and M (70,000)

4,200

 

 

 

To Depreciation on P and M (30,000)

900

 

 

 

To Net Profit Before Manager's Commission

75,800

 

 

 

 

 

 

 

 

 

98,400

 

 

98,400

 

 

 

 

 

To Manager's Commission

6,891

By Balance b/d 

 

75,800

To Net Profit After Commission

68,909

 

 

 

 

 

 

 

 

 

75,800

 

 

75,800

 

 

 

 

 

 

 

Balance Sheet

as on 31st March 2017 

Liabilities 

Rs. 

Assets 

Rs. 

Capital

2,00,000

 

Cash in Hand

 

6,000

Add: Net Profit

68,909

 

Sundry Debtors

80,000

 

Less: Drawings

(20,000)

2,48,909

Less: New Provision

(1,600)

78,400

O/S Manager's Commission

 

6,891

     

Bank Overdraft

 

12,000

Furniture and Fixtures

20,000

 

Creditors

 

60,000

Less: 5% Depreciation

(1,000)

19,000

Bills Payable

 

15,400

     
     

Plant and Machinery

1,00,000

 
     

Less: 6%Depreciation (WN 2)

(4,200)

 
     

Less: 6%Depreciation (WN 2) 

(900)

94,900

     

Bills Receivable

 

14,000

     

Investments

 

40,000

     

Motor Car

51,000

 
     

Less: 10% Depreciation

(5,100)

45,900

     

Closing Stock

 

45,000

           
   

3,43,200

   

3,43,200

           

 

Working Notes:

Ncert Solutions Cbse Class 11-commerce Accountancy Part II Chapter - Financial Statements

 

2.

Out of the machinery of Rs.1,00,000, Rs.30,000 worth of machinery purchased on 01/07/2011 . Therefore, the depreciation on this machinery will be for 6 months at 6% p.a.

Ncert Solutions Cbse Class 11-commerce Accountancy Part II Chapter - Financial Statements

Note: In the NCERT book, Gross Profit is given as Rs.1,01,000. But as per the solution Gross Profit is Rs.97,000.

Chapter 10 - Financial Statements Exercise 416

Solution NUM 6

Trading A/c 

Dr. 

 

 

 

 

Cr.

Particulars 

 

Rs. 

Particulars 

 

Rs. 

To Opening Stock

 

75,550

By Sales

1,00,000

 

To Purchases

75,000

 

Less: Sales Inwards

(6,000)

94,000

Less: Return Outwards

(4,500)

70,500

By Closing Stock

 

35,000

To Freight

 

2,250

By Gross Loss c/d

 

19,300

 

 

 

 

 

 

 

 

1,48,300

 

 

1,48,300

 

 

 

 

 

 

 

 

Profit and Loss A/c 

Dr.

 

 

 

 

Cr.

Particulars 

 

Rs. 

Particulars 

 

Rs. 

To Gross Loss b/d

 

19,300

By Discount

 

3,500

To Bad Debts

3,000

 

By Interest Received

 

11,260

Add: Further Bad-Debts

1,000

 

By Interest on Drawings

 

814

Add: New Provision

4,950

 

By Net Loss c/d

 

27,482

Less: Old Provision

(1,500)

7,450

 

 

 

To Discount on Debtors

 

1,881

 

 

 

To Trade Expenses

 

2,500

 

 

 

To Printing and Stationery

 

5,000

 

 

 

To Rent, Rates and Taxes

3,450

 

 

 

 

Add: O/S Rent, Rates and Taxes

200

3,650

 

 

 

To Depreciation on Furniture

 

775

 

 

 

To Depreciation on Motor Car

 

2,500

 

 

 

 

 

 

 

 

 

 

 

43,056

 

 

43,056

 

 

 

 

 

 

 

 

Balance Sheet 

Liabilities 

Rs. 

Assets 

Rs. 

Bills Payable

 

85,550

Sundry Debtors

100,000

 

Sundry Creditors

 

25,000

Less: Further Debts

1,000

 

Capital

2,50,000

 

Less: New Provision

4,950

 

Less: Net Loss

(27,482)

 

Less: Discount on Debtors

1,881

92,169

Less: Drawings

(13,560)

 

 

 

 

Less: Interest on Drawings

(814)

2,08,144

Motor Car

25,000

 

 

 

 

Less: 10% Depreciation

(2,500)

22,500

Outstanding Rent, Rates and Taxes

 

200

 

 

 

     

Furniture and Fixtures

15,500

 

     

Less: 5% Depreciation

(775)

14,725

     

Investments

 

65,500

     

Cash in Hand

 

36,000

     

Cash at Bank

 

53,000

     

Closing Stock

 

35,000

           
           
   

3,18,894

   

3,18,894

           

 

 Note: In the NCERT book, Gross Loss is given Rs.17,050 but as per the solution Gross Profit Total is Rs.19,300.

Chapter 10 - Financial Statements Exercise 417

Solution NUM 7

  

Trading A/c 

Dr.

 

 

 

 

Cr.

Particulars

 

Rs. 

Particulars 

 

Rs. 

To Opening Stock

 

2,26,000

By Sales

6,80,000

 

To Purchases

4,40,000

 

Less: Sales Inwards

(10,000)

6,70,000

Less: Return Outwards

(15,000)

4,25,000

By Closing Stock

 

30,000

To Freight Inwards

 

3,400

 

 

 

To Heat and Power

 

8,000

 

 

 

To Gross Profit c/d

 

37,600

 

 

 

 

 

 

 

 

 

 

 

7,00,000

 

 

7,00,000

 

 

 

 

 

 

 

Profit and Loss A/c 

Dr.

 

Cr.

Particulars 

 

Rs. 

Particulars 

 

Rs. 

To Trade Expenses

  

3,300

By Gross Profit b/d

 

37,600

To Salary and Wages

  

5,000

By Interest Received

 

20,000

To Legal Expenses

  

3,000

 

 

 

To Postage and Telegram

  

1,000

 

 

 

To Bad Debts

6,500

 

 

 

 

Add: New Provision

1,250

7,750

 

 

 

To Depreciation on Building

 

5,000

 

 

 

To Depreciation on Motor Van

 

3,000

 

 

 

To Insurance

3,500

 

 

 

 

Less: Unexpired Insurance

(600)

2,900

 

 

 

To Net Profit c/d

  

26,650

 

 

 

 

 

 

 

 

 

 

 

57,600

 

 

57,600

 

 

 

 

 

 

To Manager's Commission payable

 

1,269

By Balance b/d

 

26,650

To Net Profit after Commission

 

25,381

 

 

 

 

 

 

 

 

 

 

 

26,650

 

 

26,650

 

 

 

 

 

 

               

 

 

Balance sheet 

Liabilities 

Rs. 

Assets 

Rs. 

Capital

3,50,000

 

Cash in Hand

 

79,000

Add: Net profit

25,381

 

Cash at Bank

 

98,000

Less: Drawings

75,000

3,00,381

Buildings

1,00,000

 

Creditors

 

50,000

Less: Depreciation

5,000

95,000

Bills payable

 

63,700

Motor van

30,000

 

Manager's Commission Payable

 

1,269

Less: Depreciation

3,000

27,000

     

Sundry Debtors

25,000

 
     

Less: New provision

1,250

23,750

     

Investments

 

40,000

     

Machinery

 

22,000

     

Unexpired Insurance

 

600

     

Closing Stock

 

30,000

           
           
   

4,15,350

   

4,15,350

           

  

Chapter 10 - Financial Statements Exercise 418

Solution NUM 8

Trading A/c 

Dr.

 

 

 

 

Cr.

Particulars 

 

Rs. 

Particulars 

 

Rs. 

To Opening Stock

  

76,800

By Sales

2,20,000

 

To Purchases

1,50,000

 

Less: Sales Return

(200)

2,19,800

Less: Purchases Return

(10,000)

1,40,000

By Closing Stock

 

20,000

To Carriage Inwards

 

100

 

 

 

To Wages

500

 

 

 

 

Less: Prepaid

(40)

460

 

 

 

To Coal, Gas and Water

  

1,200

 

 

 

To Gross Profit c/d

 

21,240

 

 

 

 

 

 

 

 

 

 

 

2,39,800

 

 

2,39,800

 

 

 

 

 

 

 

 

Profit and Loss A/c

Dr.

 

 

 

 

Cr.

Particulars 

 

Rs. 

Particulars 

 

Rs. 

To Salary

2,000

 

By Gross Profit b/d

 

21,240

Add: Outstanding Salary

100

2,100

By Discount

 

1,260

To Bank Charges

 

200

By Apprentice Premium

 

5,230

To Trade Expenses

 

3,800

 

 

 

To Rates and Taxes

 

870

 

 

 

To Depreciation on Plant and M.

 

2,000

 

 

 

To Depreciation on Land and B.

 

1,200

 

 

 

To Provision for Doubtful Debts

 

2,715

 

 

 

To Discount on Debtors

 

1,548

 

 

 

To Net Profit c/d

 

13,297

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,730

 

 

27,730

 

 

 

 

 

 

To Manager's Commission payable

 

633

By Balance b/d

 

13,297

To Net Profit after Commission

 

12,664

 

 

 

 

 

 

 

 

 

 

 

13,297

 

 

13,297

 

 

 

 

 

 

 

 

Balance Sheet

Liabilities 

Rs. 

Assets 

Rs. 

Capital

1,01,110

 

Cash at Bank

 

50,000

Add: Net profit

12,664

 

Land and Buildings

12,000

 

Less: Drawings

(20,000)

93,774

Less: Depreciation

(1,200)

10,800

     

Plant and machinery

40,000

 

Bills payable

 

1,28,870

Less: Depreciation

(2,000)

38,000

Outstanding Salary

 

100

Bills receivable

 

24,500

Outstanding Manager's Commission

 

633

Sundry Debtors

54,300

 
     

Less: New provision

(2,715)

 
     

Less: Discount on Debtors

(1,548)

50,037

     

Cash in hand

 

30,000

     

Closing Stock

 

20,000

     

Prepaid Wages

 

40

           
           
   

2,23,377

   

2,23,377

           

 

 

Chapter 10 - Financial Statements Exercise 419

Solution NUM 9

Trading A/c 

Dr.

 

 

 

 

Cr.

Particulars