Balbharati solutions for Book-keeping and Accountancy 11th Standard HSC Maharashtra State Board chapter 9 - Final Accounts of a Proprietary Concern [Latest edition]

Answer in One Sentence:
What is a Trading A/c?

Answer in One Sentence:
What do you mean by Profit & Loss A/c?

Answer in One Sentence:
Why Balance Sheet is prepared?

Answer in One Sentence:
State the meaning of Final Accounts?

Answer in One Sentence:

What is Net Profit?

Answer in One Sentence:

What do you mean by Gross Profit?

Answer in One Sentence:
State the meaning of Accrued Income?

Answer in One Sentence:
State the meaning of Outstanding Expenses?

Answer in One Sentence:
What is Depreciation?

Answer in One Sentence:
What do you mean by Prepaid Expenses?

Give a word, term, or phrase which can substitute the following statement:
Expenses paid before it is due.

Give a word, term, or phrase which can substitute the following statement:
Income due but not yet received

Give a word, term, or phrase which can substitute the following statement:
 Carriage paid on sale of goods.

Give a word, term, or phrase which can substitute the following statement:
Statement of Assets & Liabilities.

Give a word, term, or phrase which can substitute the following statement:

Account prepared to know Net Profit or Net Loss.

Give a word, term, or phrase which can substitute the following statement:
Value of goods remaining unsold at the end of the year

Give a word, term, or phrase which can substitute the following statement:
The provision made to compensate the loss on account of likely debts.

Give a word, term, or phrase which can substitute the following statement:
The accounts prepared at the end of the accounting year to know the profit or loss and Financial position of business

Give a word, term, or phrase which can substitute the following statement:
An amount spent on promoting sale of goods.

Give a word, term, or phrase which can substitute the following statement:
An additional information provided below the Trial Balance.

Select the most appropriate alternatives given below and rewrite the sentence :
____________ is excess of assets over liabilities

Select the most appropriate alternatives given below and rewrite the sentence :
Discount earned is transferred to credit side of ___________ account

Select the most appropriate alternatives given below and rewrite the sentence :
______________ is a statement which shows the financial position of business on a specific date.

Select the most appropriate alternatives given below and rewrite the sentence :
Outstanding expenses are shown on the ____________ side of Balance Sheet.

Select the most appropriate alternatives given below and rewrite the sentence :
Interest on Drawing is credited to __________ Account.

Select the most appropriate alternatives given below and rewrite the sentence :
Debit balance of Trading Account means ______,.

Select the most appropriate alternatives given below and rewrite the sentence :
Carriage Inward is debited to __________ Account

Select the most appropriate alternatives given below and rewrite the sentence :
Excess of credit over to debit in Profit and Loss Account indicates ________

Select the most appropriate alternatives given below and rewrite the sentence :
Closing stock is always valued at cost or market price which is __________

Select the most appropriate alternatives given below and rewrite the sentence :

State True or False with reasons :
In every adjustment atleast there are three effects.

State True or False with reasons :
Every item of Trial Balance has only one effect.

State True or False with reasons :
Income due but not received is a liability.

State True or False with reasons :
Goodwill is not a fictitious asset

State True or False with reasons :
Credit balance of Profit and Loss A/c shows net profit

Fill in the blank:
Gross Profit is transferred to ___________ Account.

Fill in the blank :
Debit Balance of Trading Account indicates ___________

Fill in the blank :
Income Receivable appears on __________ side of Balance Sheet.

Fill in the blank :
Interest on Bank Loan is debited to _________  A/c

Fill in the blank :
Profit and Loss account is prepared to find out ___________ results of the business.

Fill in the blank :
All indirect / operating expenses are transferred to ________ account.

Fill in the blank :
Interest of proprietor's drawing is credited to _________ account.

Fill in the blank :
An excess of debit over credit in the Profit & Loss A/c represents the __________.

Fill in the blank :
All direct expenses are transferred to __________ account.

Fill in the blank :
Balance Sheet is __________ of assets & liabilities.

Find the odd one :

Find the odd one :

Find the odd one :

Find the odd one :

Find the odd one :

Do you agree or disagree with the following statement :
Reserve for bad debts is created by debiting Profit and Loss Account.

Do you agree or disagree with the following statement :
Balance Sheet is a statement as well as an account.

Do you agree or disagree with the following statement :
Indirect Expenses are debited to Trading Account.

Do you agree or disagree with the following statement :
Bank Overdraft is treated as an Internal Liability

Do you agree or disagree with the following statement :
Capital is excess of Liabilities over Assets.

 Correct and Rewrite the following statement:

The balancing figure of the Trading Account is Net Profit or Net Loss.

Correct and Rewrite the following statement:

All direct expenses are debited to the Profit and Loss Account.

Correct and Rewrite the following statements:

When the credit side of the Profit and Loss Account is greater than the debit side, it is called Net Loss.

Correct and Rewrite the following statement:

Capital A/c……………..Dr.
To Profit and Loss Account
(Being Net Profit transferred to Capital A/c)

 Correct and Rewrite the following statement:

Trading A/c……………Dr.
To Sales A/c
(Being Sales transferred to Trading A/c)

Calculate the Capital.

The machinery of ₹ 35,500 is purchased on 1st July 2018 and on the same day ₹ 4,500 are spent on the installation of the Machinery. The proprietor has decided to Depreciate Machinery at the rate of 7% p.a. Calculate the amount of depreciation, assuming that accounting year is ending on 31st March every year.

Mr. Pramod borrowed a Loan from the State Bank of India ₹ 3,50,000 on 1st Oct. 2018 at the rate of interest of 12% p.a. Calculate the Interest on a bank loan for the year 2018-19, assuming that the financial year-end on 31st March every year.

Annual Insurance Premium ₹ 8,000 is paid on 1st Dec 2018. Calculate the amount of Insurance Premium for the accounting year ending on 31st March 2019.

Calculate the Gross Profit/Gross Loss
Purchases A/c ₹ 15,500, Sales A/c ₹ 30,000, Carriage Inward ₹ 1,200, Opening Stock ₹ 5,000, Purchases Returns ₹ 500, Closing Stock ₹ 18,000

From the following Balances of Jayashri Traders, you are required to prepare Trading Account for the year ended 31/03/2019.

Closing Stock  (₹) 40,000

Prepare Profit and Loss Account of Sanjay Brothers for the year ended 31st March 2018 from the following balances.

Note: Gross Profit ₹ 4,07,500

From the following Trial Balance of Sanjiv & Sons. Prepare Trading Account and Profit & Loss Account for the year ending on 31st March 2019 and a Balance Sheet as on that date.

From the following Trial Balance of Nandini & Co. as of 31st March 2019. Prepare Final Accounts after considering the adjustments given below.

Adjustments:

1. Closing stock valued at ₹ 1,00,000.

2. Write off ₹ 2,000 as bad debts and create a provision for doubtful debts @ 5% on Sundry Debtor.

3. Depreciate Machinery by 10% p.a. and Loose Tools is valued at ₹ 1,00,000.

4. Charge Interest on Capital @ 2% p.a.

Prepare Final accounts of Abdul Traders for the year ending 31st March 2019 with the help of the following Trial Balance and Adjustments.
Trial Balance as of 31st March 2019.

Adjustments:

1. Closing stock valued at ₹ 89,600

2. Outstanding expenses Salaries ₹ 2,000, Wages ₹ 4,000

3. Charge depreciation on Machinery @ 10%

4. Bad debts are written off ₹ 2,000 and create a provision for bad and doubtful debts 5% on Sundry Debtors.

Following is the Trial Balance of Geeta Enterprises. You are required to prepare a Trading and Profit & Loss Account for the year ended 31st March 2019 and the Balance Sheet as of that date after taking into account the additional information provided to you.
Trial Balance as of 31st March, 2019

Additional information:

1. Closing stock of goods on 31st March 2019 valued at ₹ 7,100 at cost price and ₹ 7,500/- as market price.

2. Travelling expenses include ₹ 125 spent on personal traveling.

3. ₹ 175 is to be written off as bad debts which were due from Mr. Ashok, a debtor, and 5% R.D.D. is to be maintained on debtors.

4. Reserve for discount on debtors as well as on creditors is to be maintained at 2% and 3% respectively.

5. Provide 10% depreciation on Plant & Machinery and Furniture.

Following are the closing ledger balances of Deepak & Co. Prepare Trading Account and Profit & Loss Account for the year ended 31st March 2019 and Balance sheet as of that date.
Ledger Balances of Mr. Deepak and Co. as of 31st March, 2019

Adjustments:

1. Closing stock was valued at ₹ 60,000

2. An amount of ₹ 3,000 is still to be received on account of commission.

3. Provision for discount on debtors and Provision for discount on Creditors are to be created 2% and 3% respectively.

4. Amount of Furniture is to reduce by ₹ 4,500 and Building by 10%.

5. Outstanding expenses Salaries ₹ 4,500 and Wages ₹ 1,500.

Following is the Trial Balance extracted from the books of Raju Traders. You are required to prepare Trading A/c, Profit & Loss A/c for the year ending on 31st March 2019 and Balance Sheet as of that date after Considering the additional information given below.
Trial Balance as of 31st March 2019

Adjustments:

1. Closing stock is valued at ₹ 40,000 at Cost Price and ₹ 44,000 as Market Price.

2. Provide Depreciation on Plant & Machinery, Furniture, Computers @ 5%, 10%, 15% respectively.

3. Salaries are paid for 10 months only.

4. Further Bad debts amounted to ₹ 400 and provide 10% R.D.D. on Sundry Debtors.

5. Advertisement is paid for 2 years.

From the following Trial Balance of Shradha Enterprises, you are required to prepare Final Accounts for the year ending on 31st March 2019.
Trial Balance as of 31st March 2019

Adjustments:

1. Insurance is prepaid to the extent of ₹ 2,250

2. Closing stock is valued at ₹ 3,80,000 Cost price and ₹ 4,00,000 as Market price.

3. Outstanding Expenses are Wages ₹ 6,000 and Rent ₹ 5,000

4. Write off further had debts ₹ 1,500 and provide 5% Reserve for doubtful debts.

5. Depreciation on Furniture and Plant & Machinery at 10% p.a. and on Freehold Premises at 15% p.a.

From the following Trial Balance of Ayub & Co. as of 31st March 2019, you are required to prepare Trading Account, Profit and Loss Account for the year ending 31st March 2019, and Balance Sheet as of that date after making necessary adjustments.
Trial Balance as of 31st March 2019

Adjustments:

1. Stock on hand on 31st March 2019 valued at ₹ 60,000

2. Rent amounting to ₹ 600 Prepaid.

3. Bad Debts ₹ 600 and create a Provision for Doubtful Debts 5%

4. Depreciation on Plant & Machinery by 10% and Furniture is valued at ₹ 4,500

5. Outstanding Salaries ₹ 900

From the following Trial Balance of Rajnish & Sons and the additional information given below prepare Trading & Profit and Loss Account for the year ending on 31st March 2018 and Balance Sheet as on that date.
Trial Balance as of 31st March 2018

Adjustments:

1. Closing Stock valued at ₹ 3,00,000 cost price and ₹ 3,20,000 at Market price.

2. Salaries were paid for 10 months only.

3. Insurance is paid for one year ending on 30.06.2018

4. One of the debtors Mr. Amit became insolvent, from whom ₹ 10,000 was not received.

5. 5% R.D.D. is to be maintained on Debtors.

6. Depreciate Machinery & Furniture @ 10% and 5% respectively.

From the following Trial Balance of John & Sons, you are required to prepare Trading Account, Profit and Loss Account for the year ending 31st March 2019 and Balance Sheet as of that date.
Trial Balance as of 31st March 2019

Adjustments:

1. Closing Stock ₹ 27,000

2. Charge Depreciation on Machinery and Motor car @ 10% and 5% respectively.

3. Create R.D.D. 5% on Sundry Debtors

4. Interest on Drawings @ 5% p.a.

5. Create Discount on Sundry Creditors 3%

6. Advertisement ₹ 1,000 is prepaid.

7. Outstanding Rent ₹ 1,500

From the following Trial Balance of Pushkraj, you are required to prepare Trading Account and Profit and Loss Account for the year ended 31st March 2019 and Balance Sheet as of that date.
Trial Balance as of 31st March 2019

Adjustments:

1. Stock on 31st March 2019 was valued at ₹ 28,000

2. Create a Provision for doubtful debts on Sundry Debtors @ 5%

3. Depreciate Motor car by 5% p.a. and Machinery by 7% p.a.

4. Outstanding expenses Rent ₹ 800 & Wages ₹ 1,000

5. Charge interest on Capital @ 3% p.a.

6. Goods of ₹ 4,000 withdrawn by the proprietor for personal use.

From the following Trial Balance of Jyoti, Trading Co. Prepare the Trading Account and Profit and Loss Account for the year ended 31st March 2019 and Balance Sheet as of that date.
Trial Balance as of 31st March 2019

Adjustments:

1. Closing stock valued at ₹ 58,000 Cost Price while the Market price is ₹ 60,000

2. Write off ₹ 1,200 as Bad debts and create provision for doubtful debts 2% on Sundry Debtors and also create provision for discount on Creditors 5%.

3. Loose Tools is valued at ₹ 52,000 and depreciate Furniture by 10% p.a.

4. Outstanding expenses Salary ₹ 1,000 and Wages ₹ 225

5. Charge interest on Capital 2% and on Drawings 10%.

From the following Trial Balance of Manish Enterprise, Prepare the Trading Account and Profit and Loss Account for the year ended 31st March 2019 and Balance sheet as of that date.
Trial Balance as of 31st March 2019

Adjustments:

1. Closing Stock was ₹ 32,000.

2. Write off 50% of patents, depreciate Plant & Machinery by 10% p.a and Office Equipment by 20%.

3. Reserve for bad debts is to be created 5% and discount on Debtors 2%.

4. Outstanding expenses Mobile charges ₹ 300 and Freight ₹ 500

5. Charge Interest on Capital @ 5%.

6. Goods of ₹ 2,000 distributed on free samples.