NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes

Accountancy Class 11

Commerce : NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes

The document NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes is a part of the Commerce Course Accountancy Class 11.
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Question.3 : The following balances has been extracted from the trial of M/s Runway Shine Ltd. Prepare a trading and profit and loss account and a balance sheet as on December 31, 2017.

NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
Adjustments
1. Further bad debts Rs 1,000. Discount on debtors Rs 500 and make a provision on debtors @ 5%.
2. Interest received on investment @ 5%.
3. Wages and interest outstanding Rs 100 and Rs 200 respectively.
4. Depreciation charged on motor car @ 5% p.a.
5. Closing Stock Rs 32,500.
Answer :

NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes


NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes

Balance Sheet 
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes

Page No 438:
Question.4 :  The following balances have been extracted from the trial of M/s Haryana Chemical Ltd.  You are required to prepare a trading and profit and loss account and balance sheet as on  December 31, 2017 from the given information.

NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes

NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes


Adjustments
1. Closing stock was valued at the end of the year Rs 40,000.
2. Salary amounting Rs 500 and trade expense Rs 300 are due.
3. Depreciation charged on building and machinery are @ 4% and @ 5% respectively.
4. Make a provision of @ 5% on sundry debtors.
Answer :

NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
Profit and Loss Account 
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
Working Note
In the question, the loan given by us bears an interest of 15% p.a. and interest is unpaid from 01-9-2017 to 31-12-2017. Thus, interest for loan is outstanding for four months and is calculated as follows: 
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes

Page No 439:
Question.5 : From the following information prepare trading and profit and loss account of M/s Indian sports house for the year ending December 31, 2017.

NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
Adjustments
1. Closing stock was Rs 45,000.
2. Provision for doubtful debts is to be maintained @ 2% on debtors.
3. Depreciation charged on : furniture and fixture @ 5%, plant and Machinery @ 6% and motor car @ 10%.
4. A Machine of Rs 30,000 was purchased on July 01, 2016.
5. The manager is entitle to a commission of @ 10% of the net profit after charging such commission.
Answer :
Trading Account
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
Profit and Loss Account

NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes

NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes


Balance Sheet
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
Working Notes

NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes


2. Out of the machinery of Rs 1,00,000, Rs 30,000 worth of machinery was purchased on 01/October/2016. Therefore, the depreciation on this machinery will be for 6 months at 6% p.a.

NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes

**The rest of the machinery of Rs 70,000 will bear depreciation at 6% p.a. 

NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
Note: As per our solution Gross Profit is Rs 97,000, however, as per book it is Rs 1,01,000.

Page No 440:
Question.6 :  Prepare the trading and profit and loss account and a balance sheet of M/s Shine Ltd. from the following particulars.

 NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
Adjustments
1. Closing stock was valued Rs 35,000.
2. Depreciation charged on furniture and fixture @ 5%.
3. Further bad debts Rs 1,000. Make a provision for bad debts @ 5% on sundry debtors.
4. Depreciation charged on motor car @ 10%.
5. Interest on drawing @ 6%.
6. Rent, rates and taxes was outstanding Rs 200.
7. Discount on debtors 2%.
Answer :    

NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes

NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
Note: In NCERT book, the Gross Loss is Rs 17,050, the Net Loss is Rs 27,344 and the Total of Balance Sheet is Rs 3,19,032. However, as per the solution Net Loss and the Total of the Balance Sheet are Rs 27,482 and Rs 3,18,894 respectively. 

Page No 441:
Question.7 :  Following balances have been extracted from the trial balance of M/s Keshav Electronics Ltd. You are required to prepare the trading and profit and loss account and a balance sheet as on December 31, 2017.
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
The following additional information is available :
1. Stock on December 31, 2017 was Rs 30,000.
2. Depreciation is to be charged on building at 5% and motor van at 10%.
3. Provision for doubtful debts is to be maintained at 5% on Sundry Debtors.
4. Unexpired insurance was Rs 600.
5. The Manager is entitled to a commission @ 5% on net profit before charging such commission.
Answer :
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes

NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes


NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes

NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes

Note: In NCERT, Q-7 adjustment (5) is a misprint. The answer represents the Net Profit after the Manager’s Commission. However, in the adjustment, the Net Profit has been mentioned before the Manager’s Commission.

Page No 442:
Question.8 : From the following balances extracted from the books of Raga Ltd. Prepare a trading and  profit and loss account for the year ended December 31, 2017 and a balance sheet as on that date.
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
The additional information is as under:
1. Closing stock was valued at the end of the year Rs, 20,000.
2. Depreciation on plant and machinery charged at 5% and land and building at 10%.
3. Discount on debtors at 3%.
4. Make a provision at 5% on debtors for doubtful debts.
5. Salary outstanding was Rs 100 and Wages prepaid was Rs 40.
6. The manager is entitled a commission of 5% on net profit after charging such commission.
Answer : 

NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes
NCERT Solution - Chapter 2 : Financial Statements (Part-2), Class 11, commerce | EduRev Notes

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