Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev

TS Grewal Solutions - Class 11 Accountancy

Created by: Nipun Tuteja

Commerce : Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev

The document Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev is a part of the Commerce Course TS Grewal Solutions - Class 11 Accountancy.
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Page No 18.63:

Question 6: Ascertain Gross Profit from the following:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev
ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev
Note: Carriage on Sales and Office Rent are the Indirect Expenses, therefore, these are not considered to compute the amount of Gross Profit.

Page No 18.63:

Question 7: From the following information, prepare Trading Account for the year ended 31st March, 2019:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev

Net Realisable Value (Market Value) of stock as on 31st March, 2019 was ₹ 1,20,000.
ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev
Note: Closing Stock is taken at its Market Price (i.e. Rs 1,20,000) instead of its Cost (i.e. Rs 1,30,000). This is because, as per Principle of Conservatism, Closing stock is taken at Cost or Market Price whichever is less.

Page No 18.63:

Question 8: From the following information, prepare Trading Account for the year ended 31st March, 2019:
Adjusted Purchases ₹ 6,60,000; Sales ₹ 7,44,000; Closing Stock ₹ 50,400; Freight and Carriage Inwards ₹ 3,600; Wages ₹ 6,000; Freight and Cartage Outwards ₹ 2,000.

ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev

Notes:
1. Freight and Carriage Outwards are indirect expenses, therefore it is not recorded in the Trading Account.
2. Closing Stock (i.e. Rs 50,400) is not recorded in the Trading Account as it is already adjusted in the amount of Adjusted Purchases.

Page No 18.63:

Question 9: Following balances appear in the Trial Balance of a firm as on 31st March, 2019:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev

Prepare Trading Account of the firm.
ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev

Note: Freight outwards is an indirect expense. It will be recorded in Profit & Loss A/c.


Page No 18.63:

Question 10: From the following information, prepare Trading account for the year ended 31st March, 2019:
Adjusted Purchases ₹ 5,50,000; Sales ₹ 6,25,000; Freight and Carriage Inwards ₹ 3,000; Wages ₹ 7,000; Freight and Cartage Outwards ₹ 2,500; Closing Stock ₹ 50,000.

ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev

Notes:

1. Freight and Carriage Outwards are indirect expenses, therefore it is not recorded in the Trading Account.
2. Closing Stock (i.e. Rs 50,000) is not recorded in the Trading Account as it is already adjusted in the amount of Adjusted Purchases


Page No 18.64:

Question 11: From the following figures, calculate Operating Profit:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev

ANSWER:

Operating Profit=Net Profit−Rent Received−Gain on Sale of Machine+Interest on Loan−Donation =1,00,000−10,000−15,000+20,000−2,000=Rs 93,000

Page No 18.64:

Question 12: From the following, prepare Profit and Loss Account of Sohan Lal as it would appear in the 1st year that ended 31st March, 2019:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev
The Gross Profit was 45% of sales, which amounted to ₹ 6,50,000.

Also, pass the Journal entries.
ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev


Page No 18.64:

Question 13: From the following information, prepare Profit and Loss Account for the year ended 31st March, 2019:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev
ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev
Note: ₹1,000 Input IGST after adjusting against Output IGST will be shown on the asset side of the balance sheet.

Page No 18.64:

Question 14: From the following particulars, prepare Balance Sheet as at 31st March, 2019:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev
ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev

Page No 18.65:

Question 15: From the following information, prepare Balance Sheet of a trader as at 31st March, 2019 arranging the assets and liabilities–(i) in order of permanence and (ii) in order of liquidity:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev

ANSWER:

(I) Balance Sheet in Order of Permanence
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev
(II) Balance Sheet in Order of Liquidity
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev

Page No 18.65:

Question 16: From the Balance Sheet given below, calculate:
(i) Fixed Assets
(ii) Current Assets

(iii) Current Liabilities
(iv) Working Capital

Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev

ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev


Page No 18.65:

Question 17: Prepare Trading and Profit and Loss Account and Balance Sheet of Jagat Shah as at 31st March, 2019 from the following balances:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev
The Closing Stock was valued at ₹ 2,00,000.
ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev

Page No 18.66:

Question 18: From the following balances, prepare Trading and Profit and Loss Account and Balance Sheet:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev
Closing Stock was valued at ₹ 30,000.
ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev
Financial Statements of Sole Proprietorship - (Part - 2) Commerce Notes | EduRev

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