Tamil Nadu Board of Secondary EducationHSC Commerce Class 11th
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Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide chapter 13 - Final Accounts of Sole Proprietors - 2 [Latest edition]

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Class 11th Accountancy Answers Guide - Shaalaa.com
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Chapter 13: Final Accounts of Sole Proprietors - 2

Multiple choice questionsVery short answer questionsShort answer questionsExercises
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Multiple choice questions [Page 309]

Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide Chapter 13 Final Accounts of Sole Proprietors - 2Multiple choice questions [Page 309]

Choose the correct answer

Multiple choice questions | Q I 1. | Page 309

A prepayment of insurance premium will appear in ______.

  • The trading account on the debit side

  • The profit and loss account on the credit side

  • The balance sheet on the assets side

  • The balance sheet on the liabilities side

Multiple choice questions | Q I 2. | Page 309

Net profit is ______.

  • Debited to capital account

  • Credited to capital account

  • Debited to drawings account

  • Credited to drawings account

Multiple choice questions | Q I 3. | Page 309

Closing stock is valued at ______.

  • Cost price

  • Market price

  • Cost price or market price whichever is higher

  • Cost price or net realisable value whichever is lower

Multiple choice questions | Q I 4. | Page 309

Accrued interest on investment will be shown

  • On the credit side of profit and loss account

  • On the assets side of balance sheet

  • Both On the credit side of profit and loss account and On the assets side of balance sheet

  • None of these

Multiple choice questions | Q I 5. | Page 309

If there is no existing provision for doubtful debts, provision created for doubtful debts is ______.

  • Debited to bad debts account

  • Debited to sundry debtors account

  • Credited to bad debts account

  • Debited to profit and loss account

Very short answer questions [Page 309]

Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide Chapter 13 Final Accounts of Sole Proprietors - 2Very short answer questions [Page 309]

Very short answer questions | Q II 1. | Page 309

What are adjusting entries?

Very short answer questions | Q II 2. | Page 309

What is outstanding expense?

Very short answer questions | Q II 3. | Page 309

What is prepaid expense?

Very short answer questions | Q II 4. | Page 309

What are accrued incomes?

Very short answer questions | Q II 5. | Page 309

What is the provision for discounts on debtors?

Short answer questions [Page 309]

Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide Chapter 13 Final Accounts of Sole Proprietors - 2Short answer questions [Page 309]

Short answer questions | Q III 1. | Page 309

What is the need for preparing final accounts?

Short answer questions | Q III 2. | Page 309

What is meant by provision for doubtful debts? Why is it created?

Short answer questions | Q III 3. | Page 309

Explain how closing stock is treated in final accounts?

Short answer questions | Q III 4. | Page 309

Give the adjusting entries for interest on capital and interest on drawings.

Short answer questions | Q III 5. | Page 309

Explain the accounting treatment of bad debts, provision for doubtful debts, and provision for discount on debtors.

Exercises [Pages 309 - 315]

Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide Chapter 13 Final Accounts of Sole Proprietors - 2Exercises [Pages 309 - 315]

Exercises | Q IV 1. | Page 309

Pass adjusting entries for the following:

  1. The closing stock was valued at ₹ 5,000
  2. Outstanding salaries ₹ 150
  3. Insurance prepaid ₹ 450
  4. ₹ 20,000 was received in advance for commission.
  5. Accrued interest on investments is ₹ 1,000.
Exercises | Q IV 2. | Page 310

For the fol owing adjustments, pass adjusting entries:

  1. Outstanding wages ₹ 5,000.
  2. Depreciate machinery by ₹ 1,000.
  3. Interest on capital @ 5% (Capital: ₹ 20,000)
  4. Interest on drawings ₹ 50
  5. Write off bad debts ₹ 500
Exercises | Q IV 3. | Page 310

On preparing the final accounts of Suresh, the bad debt account has a balance of ₹ 800 and the sundry debtor account has a balance of ₹ 16,000 of which ₹ 1,200 is to be written off as further bad debts. Pass adjusting entry for bad debts. And also show how it would appear in the profit and loss account and balance sheet.

Exercises | Q IV 4. | Page 310

The trial balance on March 31, 2016, shows the following:

Sundry debtors ₹ 30,000; Bad debts ₹ 1,200

It is found that 3% of sundry debtors is doubtful of recovery and is to be provided for. Pass journal entry for the amount of provision and also show how it would appear in the profit and loss account and balance sheet.

Exercises | Q IV 5. | Page 310

The trial balance of a trader on 31st December 2016 shows debtors as ₹ 50,000.

Adjustments:

  1. Write off ₹ 1,000 as bad debts
  2. Provide 5% for doubtful debts
  3. Provide 2% for discount on debtors

Show how these items will appear in the profit and loss A/c and balance sheet of the trader.

Exercises | Q IV 6. | Page 310

The following are the extracts from the trial balance.

Sundry debtors ₹ 30,000; Bad debts ₹ 5,000

Additional information:

(a) Write off further bad debts ₹ 3,000.
(b) Create 10% provision for bad and doubtful debts.
You are required to pass necessary adjusting entries and show how these items will appear in the profit and loss account and balance sheet.

Exercises | Q IV 7. | Page 310

The following are the extracts from the trial balance.

Particulars Debit ₹ Credit ₹
Sundry debtors 50,000  
Provision for doubtful debts   5,000
Bad debts 3,000  

Additional information:

(a) Additional bad debts ₹ 3,000.

(b) Keep a provision for bad and doubtful debts @ 10% on sundry debtors.

You are required to pass necessary adjusting entries and show how these items will appear in the profit and loss account and balance sheet.

Exercises | Q IV 8. | Page 311

The following are the extracts from the trial balance.

Particulars Debit ₹ Credit ₹
Sundry debtors 50,000  
Discount on debtors 2,000  
Bad debts 3,000  

Additional information:

(a) Create a provision for doubtful debts @ 10% on sundry debtors.

(b) Create a provision for discount on debtors @ 5% on sundry debtors.

You are required to pass necessary adjusting entries and show how these items will appear in the final accounts.

Exercises | Q IV 9. | Page 311

Prepare trading account of Archana for the year ending 31st December 2106 from the following information.

Debit balance Credit balance
Opening stock 80,000 Purchases returns 10,000
Purchases 8,60,000 Sales returns 3,16,000
Freight inwards 52,000 Import duty on purchases 30,000
Wages 24,000 Sales 14,40,000

Adjustments:

(a) Closing stock ₹ 1,00,000

(b) Wages outstanding ₹ 12,000

(c) Freight inwards paid in advance ₹ 5,000

Exercises | Q IV 10. | Page 311

Prepare profit and loss account of Manoj for the year ending on 31st March 2016

Particulars Particulars
Gross profit 25,000 Travelling expenses 500
Salaries 5,600 Stationery 75
Insurance 200 Rent 650
Discount allowed 400 Interest on loan 225
Discount received 300 Repairs 125
Commission received 100 Office expenses 55
Advertisement 450 General expenses 875
Printing charges 375 Postage 175

Adjustments:

(a) Salary outstanding ₹ 400

(b) Rent paid in advance ₹ 50

(c) Commission receivable ₹ 100

Exercises | Q IV 11. | Page 312

From the trial balance of Sumathi and the adjustments prepare the trading and profit and loss account for the year ended 31st March, 2016, and a balance sheet as on that date.

Particulars Debit ₹ Credit ₹
Stock on April 1, 2015 900  
Purchases 2,000  
Sales   4,000
10% Loan   2,000
Carriage on purchases 200  
Rent from tenant   250
Interest on loan 100  
Machinery 400  
Postage 100  
Salary 650  
Commission received   200
Cash in hand 75  
Furniture 4,000  
Capital   1,975
  8,425 8,425

Adjustments

(a) Six months interest on the loan is outstanding.

(b) Two months rent is due from the tenant, the monthly rent being ₹ 25.

(c) Salary for the month of March 2016, ₹ 75 is unpaid.

(d) Stock in hand on March 31, 2016, was valued at ₹ 1,030.

Exercises | Q I 12. | Page 312

The following trial balance was extracted from the books of Arun Traders as of 31st March 2018.

Particulars Debit Credit
Buildings 17,500  
Plant and machinery 12,000  
Cash purchases 30,000  
Credit purchases 8,500  
Sales   63,250
Bills receivable 6,750  
Coal and water 1,625  
Office expenses 5,250  
Rent received   1,750
Carriage outwards 2,875  
Repairs and maintenance 500  
Wages 9,250  
Debtors and creditors 9,000 8,500
Cash 2,000  
Capital   44,750
Opening stock 13,000  
  1,18,250 1,18,250

Prepare trading and profit and loss account for the year ending 31st March, 2018 and balance sheet as on that date after considering the following:

  1. Depreciate Plant and machinery @ 20%
  2. Wages outstanding amounts to ₹ 750.
  3. Half of the repairs and maintenance paid is for the next year.
  4. Closing stock was valued at ₹ 15,000.
Exercises | Q IV 13. | Page 313

From the following trial balance of Ramesh as of 31st March 2017, prepare the trading and profit and loss account and the balance sheet as of that date,

Particulars Debit ₹ Credit ₹
Stock (01.04.2016) 40,000  
Purchases 85,000  
Sales   1,90,000
Sundry creditors   48,000
Furniture and fixtures 65,000  
Debtors 45,000  
Cash at bank 21,000  
Wages 37,500  
Drawings 15,000  
Telephone charges 3,000  
Bad debts 2,000  
Provision for bad debts   2,500
Discount received   3,000
Capital   85,000
Advertising 15,000  
  3,28,500 3,28,500

Adjustments:

  1. The closing stock was valued at ₹ 35,000
  2. Unexpired advertising ₹ 250
  3. Provision for bad and doubtful debts is to be increased to ₹ 3,000
  4. Provide 2% for discount on debtors.
Exercises | Q IV 14. | Page 313

Following are the ledger balances of Devi as on 31st December, 2016.

Debit balance Credit balance
Purchases 35,000 Goodwill 40,000
Salaries 11,750 Sundry debtors 20,500
Drawings 4,500 Furniture 31,000
Opening Stock 6,250 General expenses 3,250
Capital 50,000 Commission received 2,750
Sales 78,500 Loan 44,000
Carriage inwards 21,800 Cash at bank 3,100
Bad debts 600 Provision for bad debts 2,500

Prepare trading and profit and loss account for the year ended 31st December, 2016 and balance sheet as on that date.

  1. Stock on 31st December, 2016 ₹ 5,800.
  2. Write off bad debts ₹ 500.
  3. Make a provision for bad debts @ 5%.
  4. Provide for discount on debtors @ 2%.
Exercises | Q IV 15. | Page 314

Prepare trading and profit and loss account and balance sheet from the following trial balance of Madan as of 31st March 2018.

 

Debit balance Credit balance
Sundry debtors 61,000 Capital 70,000
Plant and machinery 80,000 Purchases return 2,000
Bank charges 4,200 Sales 2,55,000
Wages 7,000 Bank overdraft 77,000
Sales return 5,000    
Purchases 1,52,000    
Opening stock 30,000    
Drawings 22,000    
Establishment expenses 20,000    
Bad debts 800    
Business premises 22,000    
  4,04,000   4,04,000

Adjustments:

  1. The closing stock was ₹ 80,000
  2. Provide depreciation on plant and machinery @ 20%
  3. Write off ₹ 800 as further bad debts
  4. Provide the doubtful debts @ 5% on sundry debtors.
Exercises | Q IV 16. | Page 314

From the following information prepare trading and profit and loss account and balance sheet of Kumar for the year ending 31st December 2017.

Debit balance Credit balance
Purchases 14,500 Sales 20,100
Coal and fuel 600 Bills payable 400
Carriage inwards 750 Rent received 2,500
Advertisement 500 Creditors 2,000
Carriage outwards 400 Capital 5,000
Bank 1,200    
Furniture 8,000    
Debtors 2,250    
Bills receivable 300    
Stock on 1st January, 2017 1,500    
  30,000   30,000

Adjustments:

  1. The closing stock on 31st December 2017 was valued at ₹ 3,900.
  2. Carriage inwards prepaid ₹ 250
  3. Rent received in advance ₹ 100
  4. Manager is entitled to receive commission @ 5% of net profit after providing such commission.
Exercises | Q IV 17. | Page 315

From the following information, prepare trading and profit and loss account and balance sheet in the books of Sangeetha for the year ending 31st March, 2018.

Particulars Particulars
Capital 20,000 Salaries 6,600
Bills receivable 8,000 Establishment expenses 4,500
Bills payable 10,500 Advertisement 2,300
Purchases 75,000 Furniture 10,000
Sales 95,000 Cash at bank 3,200
Opening stock 12,000 Miscellaneous receipts 600
Drawings 4,500    

Adjustments:

  1. Stock on 31st March, 2018 ₹ 14,200
  2. Income tax of Sangeetha paid ₹ 800
  3. Charge interest on drawings @ 12% p.a.
  4. Provide managerial remuneration @ 10% of net profit before charging such commission.

Chapter 13: Final Accounts of Sole Proprietors - 2

Multiple choice questionsVery short answer questionsShort answer questionsExercises
Class 11th Accountancy Answers Guide - Shaalaa.com

Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide chapter 13 - Final Accounts of Sole Proprietors - 2

Tamil Nadu Board Samacheer Kalvi solutions for Class 11th Accountancy Answers Guide chapter 13 (Final Accounts of Sole Proprietors - 2) include all questions with solution and detail explanation. This will clear students doubts about any question and improve application skills while preparing for board exams. The detailed, step-by-step solutions will help you understand the concepts better and clear your confusions, if any. Shaalaa.com has the Tamil Nadu Board of Secondary Education Class 11th Accountancy Answers Guide solutions in a manner that help students grasp basic concepts better and faster.

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Concepts covered in Class 11th Accountancy Answers Guide chapter 13 Final Accounts of Sole Proprietors - 2 are Preparation of Final Accounts, Adjustment Entries and Accounting Treatment of Adjustments, Summary of Adjusting Entries and Accounting Treatment of Adjustments, Final Accounts with Adjustments.

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