NCERT Solutions for Class 11 Accountancy Accounts for Incomplete Records [Old Book]

NCERT
SOLUTIONS
CLASS - 11th

aglase .co

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Class : 11th
Subject : Accountancy
Chapter : 11
Chapter Name : Accounts for Incomplete Records

Q1 State the three fundamental steps in the accounting process.

Answer. The fundamental steps in the accounting process are:
→ Identification of financial transactions from the vouchers (source documents).
→ Recording the transactions in book of original entry i.e., journal.
→ Classifying the transactions into individual account i.e., ledger.
→ Preparation of financial statement in the form of Trading and Profit and Loss Account
and Balance Sheet.
→ Communicating the financial statements to the different users.

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Q2 Why is the evidence provided by the sources documents important to accounting?

Answer. A document that provides the evidence of the transactions is called the source
document or voucher. When there is no documentation of certain transactions, vouchers are
prepared to present the necessary details. The vouchers are arranged chronologically for
recordings in the books of accounts. Source documents are preserved till the audit of the
accounts and tax assessments are competed. A sources document records the name and
signature of the authorized person mentioned in it and other relevant information that may be
used in future.

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Q3 Should a transaction be first recorded in a journal or ledger? Why?

Answer. Accounting transactions are first recorded in the journal, it provides complete record of
each transaction in one place i.e., the debit and credit aspect of a transaction in the same place.
Journal provides a complete and useful description of the event’s effect on the organization.
This is why journal is called as the Book of Original Entry. The individual transactions recorded
in the journal are then transferred to individual accounts.
Ledger account is known as the Principal Book of entry. It contains different accounts with
transactions relating to that account is recorded. Ledger records the transactions in analytical
order, unlike journal where transactions are recorded in chronological order.
Therefore, a transaction should be first recorded in the journal and then posted into ledger
accounts.

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Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Q4 Are debits or credits listed first in journal entries? Are debits and credits indented?

Answer. The journal has different debit and credit amount columns, as per the rule of double
entry system. The journal records the transaction in journal format which is different from normal
way of recording transactions. In the journal, the debit amount column is listed before the credit
amount column. These are recorded in the journal before recording in the ledger.
Indentation is leaving some space before writing any word. In journal, in the ‘Particulars’
column, debited account is written first and the credited account is written in the next line after
leaving some space, which is indentation. Therefore, credits are indented.

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Q5 Why are some accounting systems called double accounting systems?

Answer. In double accounting system or double entry accounting, every transaction has dual
aspect or dual effect and is recorded in atleast two accounts. Every transaction involves give
and take aspect. In this the total amount debited must be equal to the total amount credited.

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Q6 Give a specimen of an account.

Answer.

Dr. _________ Account
Cr.
Date Particulars L.F. Amount Date Particulars L.F. Amount

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Q7 Why are the rules of debit and credit same for liability and capital?

Answer. Businesses acquire funds from internal as well as from external sources. The business
entity concept states that the amount borrowed from the external sources as well as internal
sources like capital invested by the proprietor, is termed as liability to the business. The concept
treats the business and the business owner separately. Capital is treated as liability to the
business because it has to be repaid by the business to the owner. The capital introduced is
credited the same way liabilities incurred is credited. When liability is paid back it is debited
similarly drawings from the capital and net loss is also debited. Therefore, the rules of debit and
credit are same for liability and capital.

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Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

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Q8 What is the purpose of posting J.F numbers that are entered in the journal at the time entries
are posted to the accounts?

Answer. J.F number is the number entered in the ledger while posting entries into their
accounts. This helps in determining whether the transactions are correctly posted in the
accounts. It helps in locating the entries of accounts in journal. It also ensures that all the
transactions are posted or not.

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Q9 What entry (debit or credit) would you make to : (a) increase revenue (b) decrease in
expense (c) record drawings (d) record the fresh capital introduced by the owner.

Answer.
(a) Increase revenue – increase in revenue is credited as it increases the profit eventually
increasing the capital. Since capital has a credit balance, any increase in capital is
credited, therefore, increase in revenue will be credited.
(b) Decrease in expense – Decrease in expense leads to increase in net profit leading to
increase in capital. Expenses have debit balances, so, increase in expense is debited
and decrease in capital is credited.
(c) Record drawings – drawings lead to decrease in capital. Since capital has a credit
balance, any increase in capital is credited while any decrease in capital debited.
Therefore drawings are debited.
(d) Record of fresh capital introduced by the owner – Introduction of fresh capital leads to
increase in the capital present. Since capital has credit balance, increase in capital id
credited.

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Q10 If a transaction has the effect of decreasing an asset, is the decrease recorded as a debit
or as a credit? If the transaction has the effect of decreasing a liability, is the decrease recorded
as a debit or a credit?

Answer. If a transaction has the effect of decreasing an asset, it is recorded as credit. Since
assets have debit balance, any increase in asset is debited while any decrease in asset is
credited. Therefore, decrease in asset will be recorded as credit.
If a transaction has the effect of decreasing a liability, it is recorded as debit. Liabilities have
credit balance, increase in liability is credited whereas decrease in liability is debited. Therefore,
decrease in liability is debited.

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Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Q1 Describe the events recorded in accounting systems and the importance of sources
documents in those systems.

Answer. Numerous transactions take place in an organization on everyday basis and it is
beyond human capacity to memorise all the transactions, this is why source documents are
used in the accounting system. These are the evidence of business transactions that can be
used in future and in court of law as well. These ensure that the recordings are not biased.
Events that are supported by source documents are :
Credit sale of goods supported by sale invoice/bill.
Credit purchase of goods supported by purchase invoice/bill.
Cash sales and cash purchases supported by cash memo.
Goods returned by customers supported by credit note and goods returned to customers
supported by credit note.
Payments through bank supported by cheque.
Deposits into bank supported by pay-in-slips.
Only those events that can be expressed in terms of money are recorded in the books of
accounts. Events that cannot be expressed in terms of money i.e., non-monetary events are not
taken into account. For example, labour turnover, promotion of manager, etc. cannot be
recorded in the books whereas, events like increase in salary is recorded.
Source document is important as it records the date, amount, name of the parties involved and
other details. Sources documents act as evidence in the court of law and are used for
verification at the time of auditing.

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Q2 Describe how debits and credits are used to analyse transactions.

Answer. Every transaction has a give and take aspect. According to the double entry
accounting, every transaction affects and is recorded in at least two or more accounts, the total
amount debited must be equal to the total amount credited. Debit and credit depends on the
nature of the accounts involved, such as assets, expenses, liabilities, income and capital. There
are five kinds of accounts :
Assets- it includes the property or legal rights owned by the organization for its operations such
as building, furniture, machinery, etc. The journal for purchase of a new machinery is :
Asset A/c Dr.
To Cash A/c
Since there is reduction in the cash balance due to new purchase, the cash account is credited
and there is increase in an asset, asset account will be debited.
Expenses – these are the expenditure incurred by the firm for carrying its operations. When an
expense is incurred, the journal entry passed is :
Expenditure A/c Dr.
To Cash A/c

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Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

In this case, the cash account is debited because of the decrease in cash balance whereas
expenditure account is debited to record the reduction in cash.
Liabilities – it includes the debts held by the firm for its operations. When a debt is taken, the
journal entry is :
Bank A/c Dr.
To Bank Loan A/c
The bank account is debited because there is increase in the cash balance of the firm. Bank
loan is a liability for the firm and liabilities have credit balance, therefore, bank loan account is
credited.
Income – these are the profits earned by the firm, it is also the excess of revenue over
expenditure. The journal entry for receiving an income is :
Cash A/c Dr.
To Income A/c
Here, cash account is debited to account for the increase in cash balance while income account
is credited because it has a credit balance as it leads to increase in capital.
Capital – It is the amount invested by the owner in the business. It has a credit balance. The
journal for increase in capital is :
Cash A/c Dr.
To Capital A/c
The cash account is debited because introduction of new capital in the firm increase the cash
balance, capital account is credited because it has credit balance and it is the amount owed by
the owner and has to be returned.

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Q3 Describe how accounts are used to record information about the effects of transactions?

Answer. Transactions are first recorded in the book of original entry (journal) chronologically.
The conclusion for an account cannot be drawn through a single entry. Accounts are prepared
to know the position of the business at regular intervals.
For example, Goods worth Rs. 1,00,000 sold to Mr. X on July 15 and received payment on
July 30 Rs. 95,000.
The journal entry recorded will be:
Date Particulars L.F. Debit (Rs.) Credit (Rs.)
July15 X’s A/c Dr. 24 1,00,000
To Sales A/c 15 1,00,000
(Being goods sold to Mr. X on credit)
July 30 17 95,000
Cash A/c Dr. 24 95,000
To X’s A/c
(Being cash received from Mr. X)

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Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Steps for posting journals into ledger accounts :
Step 1 – Locating the account in ledger i.e., Mr. X’s Account.
Step 2 – Date is entered in the date column of the debit side of X’s A/c
Step 3 – In the ‘particulars’ column of the debit side of X’s A/c, the name of the corresponding
account is mentioned i.e., ‘sales’.
Step 4 – The page number of the ledger is entered in the Journal Folio (J.F.) column of X’s A/c
Step 5 – the amount is entered in the ‘Amount’ column.
Step 6 – similar steps are to be followed to post the entries on the credit side of X’s A/c.
Step 7 – after all the transactions are posted in the ledger, both sides are totaled and the
difference is written in the shorter side as ‘balance c/d’.
Step 8 – The total is written on both sides .

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Q4 What is a journal? Give a specimen of journal showing at least five entries.

Answer. Journal is the book of original entry. Journal records the transactions as they take place
in chronological order. After recording in the journal, the transactions are posted in respective
accounts. Transactions are recorded after determining the particular account to be debited or
credited.
Proforma of journal
In the books of
Date Particulars L.F. Debit (Rs.) Credit(Rs.)

→ Date records the date on which transaction takes place.
→ Particulars records the details of the transactions like, name of parties involved and
name of related accounts.
→ Ledger folio (L.F.) records the page number of the ledger account when entry is posted.
→ Debit amount records the debit amount
→ Credit amount records the amount to be credited.
Example :
1. Started business with cash Rs. 2,00,000 on Jan 01.
2. Opened bank account Rs. 50,000 on Jan 05.
3. Purchased goods for cash worth Rs. 70,000 on Jan 12.
4. Sold goods for cash Rs. 90,000 on Jan 15.
5. Sold goods on credit to Mr. A Rs. 15,000 on Jan 20.

In the books of
Journal
Date Particulars L.F. Debit (Rs.) Credit (Rs.)

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Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Jan 01 Cash A/c Dr. 2,00,000
To Capital A/c 2,00,000
(Being business started with cash )
Jan 05 Bank A/c Dr. 50,000
To Cash A/c 50,000
(Being Bank account opened)
Jan 12 Purchases A/c Dr. 70,000
To Cash A/c 70,000
(Being Goods purchased for cash )
Jan 15 Cash A/c Dr. 90,000
To Sales A/c 90,000
(Being goods sold for cash )
Jan 20 A’s A/c Dr. 15,000
To Sales A/c 15,000
(Being goods sold to Mr. A on credit )

TOTAL 4,25,000 4,25,000

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Q5 Differentiate between source documents and vouchers.

Answer.
Source documents Vouchers
It refers to the documents in writing, and Source document which is considered as
contains all the details of the transactions. evidence of a transaction is voucher .

These are used for preparing accounting These are used for analyzing transactions.
vouchers.

These are the basis for preparing accounting These are the basis for recording transactions.
vouchers that help in recording.

It is prepared as and when the transaction It can be prepared at the time of the
takes place. transaction taking place or later on.

These can be used as evidence in the court of These can be used for assessing the
law. authenticity of the transactions.

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Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

These are prepared by the parties involved in It is prepared by authorized personnel or
the transaction, or who is authorized to accountants.
prepare or approve the documents.

Example – cash memo, invoice and pay-in Example –cash memo, debit note, credit note,
slip, etc. cash vouchers , transfer vouchers, etc.

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Q6 Accounting equation remains intact under all circumstances. Justify the statement with the
help of an example.

Answer. Accounting equation signifies that the assets of a business are always equal to the total
of its liabilities and capital. The equation reads as follows : A = L+C, here, A – Assets, L –
Liabilities, C- capital. Accounting equation depicts the fundamental relationship among the
components of the balance sheet.
In any circumstance the given equation cannot be changed. For example,
Business started with cash Rs. 50,000. The entry passed will be :
Cash A/c Dr. 50,000
To Capital A/c 50,000
Assets = Liabilities + Capital
Cash 50,000 50,000
Cash invested in the business increases the cash balance and the capital of the firm.
Goods purchased on credit Rs. 10,000.
Assets = Liabilities + Capital
Cash Stock Creditors
50,000 10,000 = 10,000 + 50,000
Increase in an asset leads to simultaneous increase in liability.
The above examples prove that in any circumstance the accounting equation remains intact.

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Q7 Explain the double entry mechanism with an illustrative example.

Answer. Every transaction has a give and take aspect i.e., every transaction affects and is
recorded in at least two accounts. The total amount debited must be equal to the total amount
credited. In double entry accounting the accounts are classified as given :
Classification of accounts

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Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Personal account includes all the individual persons, firms, companies, etc. for example- Mr. X,
M/s. XYZ and Co.

Rule of double entry for personal accounts – debit the receiver and credit the giver.

Example , received cash from Mr. Y

Cash A/c Dr.
To Mr. Y
Impersonal account includes non-living things. It is further classified into real and nominal
accounts.
Real account – it includes all the assets tangible and intangible.
Rule of double entry for real accounts- debit what comes in, credit what goes out.
Example, Purchased machinery for cash
Machinery A/c Dr.
To Cash A/c
Nominal account – it includes all the expenses, losses, incomes and gains.
Rule of double entry for nominal accounts – debit all expenses and losses, credit all incomes
and gains.
Example, commission received
Cash A/c Dr.
To Commission A/c

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Q1 Following information is given below prepare the statement of profit or loss:
Rs.
Capital at the end of the year 5,00,000
Capital in the beginning of the year 7,50,000
Drawings made during the period 3,75,000
Additional capital introduced 50,000
Answer.
Statement of profit and loss
Particulars Amount (Rs.)

Capital at the end of the year 5,00,000
Add: drawings made during the period 3,75,000

Less: capital in the beginning of the year
Less: additional capital introduced

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Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

8,75,000
(7,50,000)
(50,000)

Profit during the year 75,000

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Q2 Manveer started his business on April 01, 2016 with a capital of Rs. 4,50,000. On March 31,
2017 his position was as under :

Rs.
Cash 99,000
Bills receivable 75,000
Plant 48,000
Land and building 1,80,000
Furniture 50,000
He owned Rs. 45,000 from his friend Susheel on that date. He withdrew Rs. 8,000 per month for
his household purposes. Ascertain his profit or loss for this year ended March 31, 2017.
Answer.
In the Books of Manveer
Statement of affairs as on 31 March 2017
Liabilities Amount(Rs.) Particulars Amount(Rs.)
Loan from susheel 45,000 Cash 99,000
Closing capital (balancing 4,07,000 Bills receivable 75,000
figure) Plant 48,000
Land and building 1,80,000
Furniture 50,000

4,52,000 4,52,000

Particulars Amount(Rs.)
Capital at the end of the year 4,07,000
Add: drawings 96,000

Less: capital in the beginning of the year 5,03,000
(4,50,000)

Profit at the end of the year 53,000

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Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Statement of profit and loss as on 31 March 2017

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Q3 From the information given below ascertain the profit for the year :
Rs.
Capital at the beginning of the year 70,000
Additional capital introduced during the year 17,500
Stock 59,500
Sundry debtors 25,900
Business premises 8,600
Machinery 2,100
Sundry creditors 33,400
Drawings made during the year 26,400

Answer.
Statement of affairs as at
Liabilities Amount(Rs.) Assets Amount(Rs.)
Sundry creditors 33,400 Stock 59,500
Capital (balancing figure) 62,700 Sundry debtors 25,900
Business premises 8,600
Machinery 2,100

96,100 96,100

Statement of profit and loss as on
Particulars Amount(Rs.)
Capital at the end of the year 62,700
Add: drawings during the year 26,400
89,100
Less: additional capital introduced (17,500)
Less: capital in the beginning of the year (70,000)
Profit during the year 1,600

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Q4 From the following information, calculate capital at the beginning :
Rs.

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Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Capital at the end of the year 4,00,000
Drawings made during the year 60,000
Fresh capital introduced during the year 1,00,000
Profit for the current year 80,000

Answer. Calculation of capital at the beginning of the year :
Particulars Amount (Rs.)
Capital at the end of the year 4,00,000
Add: drawing made during the year 60,000

Less: fresh capital introduced during the year 4,60,000
less: profit for the current year (1,00,000)
(80,000)

Capital at the beginning 2,80,000

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Q5 Following information is given below : calculate the closing capital
April 01, 2016 March 31, 2017
Rs. Rs.
Creditors 5,000 30,000
Bills payable 10,000 ----
Loan ----- 50,000
Bills receivable 30,000 50,000
Stock 5,000 30,000
Cash 2,000 20,000

Answer. Statement of affairs as at March 31 2017
Liabilities Amount(Rs.) Assets Amount(Rs.)
Creditors 30,000 Cash 20,000
Loan 50,000 Stock 30,000
Closing Capital (balancing 20,000 Bills receivable 50,000
figure)
1,00,000 1,00,000

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Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Q6 Mrs. Anu started firm with capital of Rs. 4,00,000 on 1​st​ October, 2016. She borrowed from
her friends a sum of Rs. 1,00,000 @ 10% per annum (interest paid) for business and brought a
further amount to capital Rs. 75,000 on March 31, 2017, her position was :
Rs.
Cash 30,000
Stock 4,70,000
Debtors 3,50,000
Creditors 3,00,000
She withdrew Rs. 8,000 per month for the year. Calculate profit or loss for the year and show
your working clearly.

Answer. In the books of Mrs. Anu
Statement of profit and loss as at 31 march 2017
Particulars Amount(Rs.)
Capital as on 31 March 2017 4,50,000
Add: drawings during the year 48,000
4,98,000
Less: additional capital introduced (75,000)
Less: capital as on 1 October 2017 (4,00,000)
Profit for the year 23,000

Working note :

Statement of affairs as on 31 march 2017
Liabilities Amount(Rs.) Assets Amount(Rs.)
Loan 1,00,000 Cash 30,000
Creditors 3,00,000 Stock 4,70,000
Capital (balancing figure) 4,50,000 Debtors 3,50,000

8,50,000 8,50,000

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Q7 Mr. Arnav does not keep proper records of his business, he provided the following
information, you are required to prepare a statement showing the profit or loss for the year.
Rs.
Capital at the beginning of the year 15,00,000
Bills receivable 60,000

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Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Cash in hand 80,000
Furniture 9,00,000
Building 10,00,000
Creditors 6,00,000
Stock in trade 2,00,000
Further capital introduced 3,20,000
Drawings made during the period 80,000

Answer. In the books of Mr. Arnav
Statement of profit and loss as at
Particulars Amount(Rs.)
Capital at the end of the year 16,40,000
Add: drawings made during the period 80,000

Less: additional capital introduced 17,20,000
Less: capital at the beginning (3,20,000)
(15,00,000)

Loss during the period (1,00,000)

Working note :
Statement of affairs as on
Liabilities Amount(Rs.) Assets Amount(Rs.)
Creditors 6,00,000 Cash in hand 80,000
Capital (balancing figure) 16,40,000 Stock in trade 2,00,000
Bills receivable 60,000
Furniture 9,00,000
Building 10,00,000

22,40,000 22,40,000

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Q8 Mr. Akshat keeps his books on incomplete records, following information is given below :
April 01,2016 March 31, 2017
Rs. Rs.
Cash in hand 1,000 1,500
Cash at bank 15,000 10,000
Stock 1,00,000 95,000
Debtors 42,500 70,000

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Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Business premises 75,000 1,35,000
Furniture 9,000 7,500
Creditors 66,000 87,000
Bills payable 44,000 58,000
During the year he withdrew Rs. 45,000 and introduced Rs. 25,000 as further capital in the
business, compute the profit or loss of the business.

Answer. In the books of Mr. Akshat
Statement of profit and loss as at 31 March 2017
Particulars Amount (Rs.)
Capital as on 31 march 2017 1,74,000
Add: drawings made during the period 45,000
2,19,000
Less: further capital introduced (25,000)
Less: capital as on 1 April 2016 (1,32,500)
Profit for the year 61,500

Working note :
Statement of affairs as at April 01, 2016
Liabilities Amount(Rs.) Assets Amount(Rs.)
Creditors 66,000 Cash in hand 1,000
Bills payable 44,000 Cash at bank 15,000
Capital (balancing figure) 1,32,500 Stock 1,00,000
Debtors 42,500
Business premises 75,000
Furniture 9,000

2,42,500 2,42,500

Statement of affairs as at 31 March 2017
Liabilities Amount(Rs.) Assets Amount(Rs.)
Creditors 87,000 Cash in hand 1,500
Bills payable 58,000 Cash at bank 10,000
Capital (balancing figure) 1,74,000 Stock 95,000
Debtors 70,000
Business premises 1,35,000
Furniture 7,500

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Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

3,19,000 3,19,000

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Q9 Gopal does not keep proper books of account, following information is given below :
April 01, 2016 March 31, 2017
Rs. Rs.
Cash in hand 18,000 12,000
Cash at bank 1,500 2,000
Stock in trade 80,000 90,000
Sundry debtors 36,000 60,000
Sundry creditors 60,000 40,000
Loan 10,000 8,000
Office equipments 25,000 30,000
Land and building 20,000 30,000
Furniture 10,000 10,000
During the year he introduced Rs. 20,000 and withdrew Rs. 12,000 from the business. Prepare
the statement of profit or loss on the basis of the given information.

Answer. In the books of Gopal
Statement of profit or loss as at march 31, 2017
Particulars Amount(Rs.)
Capital as on 31 March 2017 1,76,000
Add: drawings made during the year 12,000
1,88,000
Less: additional capital introduced (20,000)
less: capital as on 01 April 2016 (1,30,500)
Profit for the year 37,500

Working note : 1.
Statement of affairs as at 01 April 2016
Liabilities Amount(Rs.) Assets Amount(Rs.)

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Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Sundry creditors 60,000 Cash in hand 18,000
Loan 10,000 Cash at bank 1,500
Capital (balancing figure) 1,30,500 Stock in trade 80,000
Sundry debtors 36,000
Office equipments 25,000
Land and building 30,000
Furniture 10,000

2,00,500 2,00,500

2. Statement of affairs as at 31 March 2017
Liabilities Amount(Rs.) Assets Amount(Rs.)
Sundry creditors 40,000 Cash in hand 12,000
Loan 8,000 Cash at bank 2,000
Capital (balancing figure) 1,76,000 Stock in trade 90,000
Sundry debtors 60,000
Office equipemts 30,000
Land and building 20,000
Furniture 10,000

2,24,000 2,24,000

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Q10 Mr. Muneesh maintains his books of accounts from incomplete records. His books provide
the following information :
April 01, 2016 March 31, 2017
Rs. Rs.
Cash 1,200 1,600
Bills receivable ___ 2,400
Debtors 16,800 27,200
Stock 22,400 24,400
Investment ___ 8,000
Furniture 7,500 8,000
Creditors 14,000 15,200
He withdrew Rs. 300 per month for personal expenses. He sold his investment of Rs. 16,000 at
2% premium and introduced that amount into the business.

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Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Answer.
In the books of Mr. Muneesh
Statement of profit or loss as at 31 March 2017
Particulars Amount (Rs.)
Capital as on 31 March 2017 56,400
Add: drawings made during the year 3,600
60,000
Less: additional capital introduced (16,320)
Less: capital as on 1 April 2016 (33,900)
Profit for the period 9,780

Working note : 1.
Statement of affairs as at 1 April 2016
Liabilities Amount(Rs.) Assets Amount(Rs.)
Creditors 14,000 Cash 1,200
Capital (balancing figure) 33,900 Debtors 16,800
Stock 22,400
Furniture 7,500

47,900 47,900

Statement of affairs as at 31 March 2017
Liabilities Amount(Rs.) Assets Amount(Rs.)
Creditors 15,200 Cash 1,600
Capital (balancing figure) 56,400 Bills receivable 2,400
Debtors 27,200
Stock 24,400
Investment 8,000
Furniture 8,000
71,600 71,600

2. calculation of additional capital = 16,000 + 2% of 16,000 = Rs. 16,320

Page 18 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Page : 455 , Block Name : Numerical Questions

Q11 Mr. Girdhari Lal does not keep full double entry records. His balance as on April 01, 2016 is
as

Liabilities Amount(Rs.) Assets Amount(Rs.)
Sundry creditors 35,000 Cash in hand 5,000
Bills payable 15,000 Cash at bank 20,000
Capital 40,000 Sundry debtors 18,000
Stock 22,000
Furniture 8,000
Plant 17,000

90,000 90,000
His position at the end of the year is :
Rs.
Cash in hand 7,000
Stock 8,600
Debtors 23,800
Furniture 15,000
Plant 20,350
Bills payable 20,200
Creditors 15,000
He withdrew Rs. 500 per month out of which to spent Rs. 1,500 for business purpose. Prepare
the statement of profit or loss.

Answer.
In the books of Mr. Girdhari Lal
Statement of profit or loss as at March 31, 2017
Particulars Amount(Rs.)
Capital as on March 31 2017 39,550
Add: drawings 4500
44,050
less: capital as on April 01, 2016 (40,000)
Profit for the year 4,050

Page 19 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Working note :
Statement of affairs as at March 31, 2017
Liabilities Amount(Rs.) Assets Amount(Rs.)
Bills payable 20,200 Cash in hand 7,000
Creditors 15,000 Stock 8,600
Capital (balancing figure) 39,550 Debtors 23,800
Furniture 15,000
Plant 20,350

74,750 74,750

Page : 455 , Block Name : Numerical Questions

Q12 Mr. Ashok does not keep his books properly. Following information is available from his
books .
April 01, 2016 March 31, 2017
Rs. Rs.
Sundry creditors 45,000 93,000
Loan from wife 66,000 57,000
Sundry debtors 22,500 ___
Land and building 89,600 90,000
Cash in hand 7,500 8,700
Bank overdraft 25,000 ___
Furniture 1,300 1,300
Stock 34,000 25,000
During the year Mr. Ashok sold his private car for Rs. 50,000 and invested this amount into the
business. He withdrew from the business Rs. 1,500 per month upto October 31, 2016 and
thereafter Rs. 4,500 per month as drawings. You are required to prepare the statement of profit
or loss and a statement of affairs as on March 31, 2017.

Answer. In the books of Mr. Ashok
Statement of affairs as at 31 March 2017
Liabilities Amount(Rs.) Assets Amount(Rs)

Page 20 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Sundry creditors 93,000 Cash in hand 8.700
Loan from wife 57,000 Land and building 90,000
Stock 25,000
Furniture 1,300
Capital (balancing figure) 25,000

1,50,000 1,50,000

Statement of profit or loss as at 31 march 2017
Particulars Amount(Rs.)
Capital as on March 31, 2017 (25,000)
Add: drawings during the year (note 2) 33,000
8,000
Less: additional capital (50,000)
less: capital as on April 01, 2016 (18,900)
Loss during the year (60,900)

Working note : 1.
Statement of affairs as at April 01, 2017
Liabilities Amount(Rs.) Assets Amount(Rs.)
Sundry creditors 45,000 Cash in hand 7,500
Loan from wife 66,000 Stock 34,000
Bank overdraft 25,000 Sundry debtors 22,500
Capital (balancing figure) 18,900 Land and building 89,600
Furniture 1,300

1,54,900 1,54,900

2. calculation of drawings during the year
Drawings = 1,500 x 7 + 4,500 x 5 = 33,000

Page : 456 , Block Name : Numerical Questions

Q13 Krishna Kulkarni has not kept proper books of accounts prepare the statement of profit or
loss for the year ending March 31, 2016 from the following information :
April 01, 2016 March 31, 2017

Page 21 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Rs. Rs.
Cash in hand 10,000 36,000
Debtors 20,000 80,000
Creditors 10,000 46,000
Bills receivable 20,000 24,000
Bills payable 4,000 42,000
Car ___ 80,000
Stock 40,000 30,000
Furniture 8,000 48,000
Investment 40,000 50,000
Bank balance 1,00,000 90,000
The following adjustments were made :
(a) Krishna withdrew cash Rs. 5,000 per month for private use.
(b) Depreciation @ 5% on car and furniture @ 10%.
(c) Outstanding rent Rs. 6,000.
(d) Fresh capital introduced during the year Rs. 30,000.

Answer. In the books of Krishna Kulkarni
Statement of profit or loss as at March 31, 2017
Particulars Amount (Rs.)
Capital as on March 31, 2017 3,35,200
Add: drawings made during the year 60,000
3,95,200
Less: additional capital introduced (30,000)
Less: capital as on April 01, 2016 (2,24,000)
Profit for the year 1,41,200

Working note :
Statement of affairs as at April 01, 2016
Liabilities Amount(Rs.) Assets Amount(Rs.)
Creditors 10,000 Cash in hand 10,000
Bills payable 4,000 Debtors 20,000
Capital (balancing figure) 2,24,000 Bills receivable 20,000
Stock 40,000
Furniture 8,000
Investment 40,000
Bank balance 1,00,000

2,38,000 2,38,000

Page 22 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Statement of affairs as at March 31, 2017
Liabilities Amount(Rs.) Assets Amount(Rs.)
Creditors 46,000 Cash in hand 36,000
Bills payable 42,000 Debtors 80,000
Outstanding rent 6,000 Bills receivable 24,000
Capital (balancing figure) 3,35,200 Car 80,000
Less: depreciation 4,000 76,000
Stock 30,000
Furniture 48,000
Less: depreciation 4,800 43,200
Investment 50,000
Bank balance 90,000

4,29,200 4,29,200

Page : 456 , Block Name : Numerical Questions

Q14 M/s Saniya Sports Equipment does not keep proper records. From the following
information find out profit or loss and also prepare balance sheet for the year ended March 31,
2017
March 31,2016 March 31, 2017
Rs. Rs.
Cash in hand 6,000 24,000
Bank overdraft 30,000 __
Stock 50,000 80,000
Sundry creditors 26,000 40,000
Sundry debtors 60,000 1,40,000
Bills payable 6,000 12,000
Furniture 40,000 60,000
Bills receivable 8,000 28,000
Machinery 50,000 1,00,000
Investment 30,000 80,000
Drawings Rs. 10,000 p.m. for personal use, fresh capital introduced during the year Rs.
2,00,000. A bad debts of Rs. 2,000 and a provision of 5% is to be made on debtors, outstanding
salary Rs. 2,400, prepaid insurance Rs. 700, depreciation charged on furniture and machine @
10% p.a.

Answer. In the books of M/s Saniya Sports Equipment

Page 23 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Statement of affairs as at March 31, 2017
Liabilities Amount(Rs.) Assets Amount(Rs.)
Sundry creditors 40,000 Cash in hand 24,000
Bills payable 12,000 Stock 80,000
Outstanding salary 2,400 Prepaid insurance 700
Capital (balancing figure) 4,33,400 Sundry debtors 1,40,000
Less: bad debts 2,000
Less: provision 6,900 1,31,100
Furniture 60,000 54,000
Less: depreciation 6,000 28,000
Bills receivable
Machinery 1,00,000 90,000
Less: depreciation 10,00 80,000
Investment

4,87,800 4,87,800

Statement of profit or loss as at March 31, 2017
Particulars Amount(Rs.)
Capital as on March 31, 2017 4,33,400
Add: drawings made during the period 1,20,000

Less: additional capital introduced 5,53,400
Less: capital as on March 31, 2016 (2,00,000)
(1,82,000)

Profit for the year 1,71,400

Working Note :
Statement of affairs as at march 31, 2016
Liabilities Amount(Rs.) Assets Amount(Rs.)

Page 24 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Bank overdraft 30,000 Cash in hand 6,000
Creditors 26,000 Stock 50,000
Bills payable 6,000 Sundry debtors 60,000
Capital (balancing figure) 1,82,000 Furniture 40,000
Bills receivable 8,000
Machinery 50,000
Investment 30,000

2,44,000 2,44,000

Page : 457 , Block Name : Numerical Questions

Q15 From the following information calculate the amount to be paid to creditors :
Rs.
Sundry creditors as on March 31, 2017 1,80.425
Discount received 26,000
Discount allowed 24,000
Return outwards 37,200
Return inwards 32,200
Bill accepted 1,99,000
Bill endorsed to creditors 26,000
Creditors as on April 01, 2016 2,09,050
Total purchases 8,97,000
Cash purchases 1,40,000

Answer.
Dr. Total creditors’ account Cr.
Date Particulars Amount(Rs.) Date Particulars Amount(Rs.)
31.03.17 To discount received 26,000 01.04.16 By balance b/d 1,80,425
To return outwards 37,200 31.03.17 By credit purchase 7,57,000
To bills accepted 1,99,000 (8,97,000
To bills receivable 26,000 –1,40,000)
(bill endorsed)
To cash/bank A/c 4,40,175
(balancing figure)
To balance c/d 2,09,050

9,37,425 9,37,425

Page 25 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Cash paid to creditors = Rs. 4,40,175.

Page : 457 , Block Name : Numerical Questions

Q16 Find out the credit purchases from the following :
Rs.
Balance of creditors April 01, 2016 45,000
Balance of creditors March 31, 2017 36,000
Cash paid to creditors 1,80,000
Cheque issued to creditors 60,000
Cash purchases 75,000
Discount received from creditors 5,400
Discount allowed 5,000
Bills payable give to creditors 12,750
Return outwards 7,500
Bills payable dishonoured 3,000
Bills receivable endorsed to creditors 4,500
Bills receivable endorsed to creditors dishonoured 1,800
Return inwards 3,700

Answer.
Dr. Total creditors’ account Cr.
Date Particulars Amount(Rs.) Date Particulars Amount(Rs.)
31.03.17 To cash 1,80,000 01.04.16 By balance b/d 45,000
To bank 60,000 31.03.17 By bills payable 3,000
To discount 5,400 (dishonoured)
received By bills receivable 1,800
To bills payable 12,750 (bill dishonoured)
To return outwards 7,500 To credit purchases 2,56,350
To bills receivable 4,500 (balancing figure)
(bill endorsed)
To balance c/d 36,000

3,06,150 3,06,150

Page : 457 , Block Name : Numerical Questions

Q17 From the following information calculate total purchases .

Page 26 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Rs.
Creditors April 01, 2016 30,000
Creditors March 31, 2017 20,000
Opening balance of bills payable 25,000
Closing balance of bills payable 35,000
Cash paid to creditors 1,51,000
Bills discharged 44,500
Cash purchases 1,29,000
Return outwards 6,000

Answer.
Dr. Total creditors’ account Cr.
Date Particulars Amount(Rs.) Date Particulars Amount(Rs.)
31.03.18 To cash 1,51,000 01.04.16 By balance b/d 30,000
To return outwards 6,000 31.03.17 By credit purchase 2,01,500
To bills discharged 54,500 (balancing figure)
To balance c/d 20,000

2,31,500 2,31,500

Total purchases = cash purchase + credit purchase
Total purchase = 1,29,000 + 2,01,500 = Rs. 3,30,500
Working note :
Dr. Bills payable account Cr.
Date Particulars Amount(Rs.) Date Particulars Amount(Rs.)
31.03.17 To cash 44,500 01.04.16 By balance b/d 25,000
To balance c/d 35,000 31.03.17 By creditor’s A/c 54,500

79,500 79,500

Page : 458 , Block Name : Numerical Questions

Q18 The following information is given
Rs.
Opening creditors 60,000
Cash paid to creditors 30,000
Closing creditors 30,000
Return inwards 13,000
Bill matured 27,000
Bill dishonoured 8,000

Page 27 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Purchases return 12,000
Discount allowed 5,000
Calculate credit purchases during the year.

Answer.
Dr. Total creditors’ account Cr.
Date Particulars Amount(Rs.) Date Particulars Amount(Rs.)
31.03.17 To cash 30,000 01.04.16 By balance b/d 60,000
To purchase return 12,000 31.03.17 By bill dishonoured 8,000
To bill matured 27,000 By credit purchase 37,000
To balance c/d 36,000 (balancing figure)

1,05,000 1,05,000

Page : 458 , Block Name : Numerical Questions

Q19 From the following calculate the amount of bills accepted during the year.
Rs.
Bills payable as on April 01, 2016 1,80,000
Bills payable as on March 31, 2017 2,20,000
Bills payable dishonoured during the year 28,000
Bills payable honoured during the year 50,000

Answer.
Dr. Bills payable account Cr.
Date Particulars Amount(Rs.) Date Particulars Amount(Rs.)
31,03,17 To cash 50,000 01.04.16 By balance b/d 1,80,000
To creditors 28,000 31.03.17 By creditors 1,18,000
To balance c/d 2,20,000 (balancing figure)

2,98,000 2,98,000

Amount of bill accepted during the year = Rs. 2,98,000.

Page : 458 , Block Name : Numerical Questions

Q20 Find the amount of bill matured during the year on the basis of the information given below:
Rs.
Bills payable dishonoured 37,000
Closing balance of bills payable 85,000

Page 28 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Opening balance of bills payable 70,000
Bills payable accepted 90,000
Cheque dishonoured 23,000

Answer.
Dr. Bills payable account Cr.
Particulars Amount(Rs.) Particulars Amount(Rs.)
To creditors (dishonoured) 37,000 By balance b/d 70,000
To bank (balancing figure) 38,000 By creditors (bill accepted) 90,000
To balance c/d 85,000

1,60,000 1,60,000

Amount of bill matured during the year = Rs. 38,000.

Page : 458 , Block Name : Numerical Questions

Q21 Prepare the bills payable account from the following and find out missing figure if any:
Rs.
Bills accepted 1,05,000
Discount received 17,000
Purchase returns 9,000
Return inwards 12,000
Cash paid top accounts payable 50,000
Bills receivable endorsed to creditors 45,000
Bills dishonoured 17,000
Bad debts 14,000
Balance of accounts payable (closing) 85,000
Credit purchases 2,15,000

Answer.
Dr. Bills payable account Cr.
Particulars Amount (Rs.) Particulars Amount (Rs.)
To creditors (bills 17,000 By creditors (accepted) 1,05,000
dishonoured)
To bank A/c (balancing 88,000
figure)

1,05,000 1,05,000

Dr. Total creditors’ account Cr.

Page 29 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Particulars Amount (Rs.) Particulars Amount (Rs.)
To discount received 17,000 By credit purchases 2,15,000
To purchase returns 9,000 By bills payable (bills 17,000
To bills receivable 45,000 dishonoured)
(endorsed) By balance b/d (balancing 79,000
To cash 50,000 figure)
To bills payable (accepted) 1,05,000
To balance c/d 85,000

3,11,000 3,11,000

Page : 459 , Block Name : Numerical Questions

Q22 Calculate the amount of bills receivable during the year.
Rs.
Opening balance of bills receivable 75,000
Bills dishonoured 25,000
Bills collected (honoured) 1,30,000
Bills receivable endorsed to creditors 15,000
Closing balance of bills receivable 65,000

Answer.
Dr. Bills receivable account Cr.
Particulars Amount(Rs.) Particulars Amount(Rs.)
To balance b/d 75,000 By debtors (bill 25,000
To debtors (balancing 1,60,000 dishonoured)
figure) By cash (honoured) 1.30,000
By creditors (endorsed) 15,000
By balance c/d 65,000

2,35,000 2,35,000

Amount of bill receivables received during the year = Rs. 1,60,000.

Page : 458 , Block name : Numerical Questions

Q23 calculate the amount of bills receivable dishonoured from the following information.
Rs.
Opening balance of bills receivable 1,20,000

Page 30 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Bills collected (honoured) 1,85,000
Bills receivable endorsed 22,800
Closing balance of bills receivable 50,700
Bills receivable received 1,50,000

Answer.
Dr. Bills receivable account Cr.
Particulars Amount(Rs.) Particulars Amount(Rs.)
To balance b/d 1,20,000 By debtors (bill collected) 1,85,000
To debtors (bills received) 1,50,000 By creditors (bills endorsed) 22,800
By debtors (balancing 11,500
figure- dishonoured)
By balance c/d 50,700

2,70,000 2,70,000

Page : 458 , Block Name : Numerical Questions

Q24 From the details given below, find out the credit sales and total sales.
Rs.
Opening debtors 45,000
Closing debtors 56,000
Discount allowed 2,500
Sales return 8,500
Irrecoverable amount 4,000
Bills receivable received 12,000
Bills receivable dishonoured 3,000
Cheque dishonoured 7,700
Cash sales 80,000
Cash received from debtors 2,30,000
Cheque received from debtors 25,000

Answer.
Dr. Total debtors account Cr.
Particulars Amount(Rs.) Particulars Amount(Rs.)

Page 31 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

To balance b/d 45,000 By discount allowed 2,500
To bill receivable (bills 3,000 By sales return 8,500
dishonoured) By bills receivable (received) 12,000
To bank (cheque 7,700 By cash 2,30,000
dishonoured) By bank 25,000
To credit sales (balancing 2,82,300 By bad debts 4,000
figure) By balance c/d 56,000

3,38,000 3,38,000

Total sales = cash sales + credit sales
Total sales = 80,000 + 2,82,300 =Rs. 3,62,300

Page : 458 , Block Name : Numerical Questions

Q25 From the following information, prepare bills receivable account and total debtors account
for the year ended March 31, 2017.
Rs.
Opening balance of debtors 1,80,000
Opening balance of bills receivable 55,000
Cash sales made during the year 95,000
Credit sales made during the year 14,50,000
Return inwards 78,000
Cash received from debtors 10,25,000
Discount allowed to debtors 55,000
Bills receivable endorsed to creditors 60,000
Cash received (bills matured) 80,500
Irrecoverable amount 10,000
Closing balance of bills receivable on March 31, 2017 75,500

Answer.
Dr. Bills receivable account Cr.
Particulars Amount(Rs.) Particulars Amount(Rs.)
To balance b/d 55,000 By cash (bills matured) 80,500
To debtors (balancing figure) 1,61,000 By creditors (endorsed) 60,000
By balance c/d 75,500

2,16,000 2,16,000

Page 32 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Dr. Total debtors’ account Cr.
Particulars Amount(Rs.) Particulars Amount(Rs.)
To balance b/d 1,80,000 By return inwards 78,000
To credit sales 14,50,000 By cash 10,25,000
By discount allowed 55,000
By bad debts 10,000
By bills receivable (bills 1,61,000
accepted) 3,01,000

16,30,000 16,30,000

Page : 459 , Block Name : Numerical Questions

Q26 Prepare the suitable accounts and find out the missing figure if any.
Opening balance of debtors 14,00,000
Opening balance of bills receivable 7,00,000
Closing balance of bills receivable 3,50,000
Cheque dishonoured 27,000
Cash received from debtors 10,75,000
Cheque received and deposited in the bank 8,25,000
Discount allowed 37,500
Irrecoverable amount 17,500
Returns inwards 28,000
Bills receivable received from customers 1,05,000
Bills receivable matured 2,80,000
Bills discounted 65,000
Bills endorsed to creditors 70,000

Answer.
Dr. Debtors’ account Cr.
Particulars Amount(Rs.) Particulars Amount(Rs.)

Page 33 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

To balance b/d 14,00,000 By cash 10,75,000
To bank (dishonoured) 27,000 By bank 8,25,000
To bills receivable 40,000 By discount allowed 37,500
(dishonoured) By bad debts 17,500
To credit sales (balancing 6,21,000 By return inwards 28,000
figure) By bills receivable 1,05,000

20,88,000 20,88,000

Dr. Bills receivable account Cr.
Particulars Amount(Rs.) Particulars Amount(Rs.)
To balance b/d 7,00,000 By cash (bill matured) 2,80,000
To debtors (received) 1,05,000 By bank (discounted) 65,000
By creditors (endorsed) 70,000
By balance c/d 3,50,000
By debtors (balancing 40,000
figure)

8,05,000 8,05,000

Page : 460 , Block Name : Numerical Questions

Q27 From the following information ascertain the opening balance of sundry debtors and closing
balance of sundry creditors
Rs.
Opening stock 30,000
Closing stock 25,000
Opening creditors 50,000
Closing debtors 75,000
Discount allowed by creditors 1,500
Discount allowed to customers 2,500
Cash paid to creditors 1,35,000
Bills payable accepted during the period 30,000
Bills receivable received during the period 75,000
Cash received from customers 2,20,000
Bills receivable dishonoured 3,500
Purchases 2,95,000
The rate of gross profit is 25% on selling price and out of the total sales Rs. 85,000 was for cash
sales.

Page 34 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Answer.
Dr. Debtors account Cr.
Particulars Amount(Rs.) Particulars Amount(Rs.)
To balance b/d (balancing 54,000 By discount allowed 2,500
figure) By bills receivable 75,000
To bills receivable 3,500 (received)
(dishonoured) By cash 2,20,000
To credit sales 3,15,000 By balance c/d 75,000

3,72,500 3,72,500

Dr. Creditors account Cr.
Particulars Amount(Rs.) Particulars Amount(Rs.)
To discount received 1,500 By balance b/d 50,000
To cash 1,35,000 By credit purchases 2,95,000
To bills payable (accepted) 30,000
To balance c/d (balancing 1,78,500
figure)

3,45,000 3.45.000

Working note :
Cost of goods sold = opening stock +purchases –closing stock
= 30,000 + 2,95,000 -25,000 = Rs. 3,00,000
Let sales be 100%
Therefore, cost of goods sold = 75 % (100-25)
Sales = cost of goods sold + gross profit
Sales = 3,00,000 + 1,00,000 = Rs. 4,00,000

Total sales = credit sales + cash sales
4,00,000 = 85,000 + credit sales
Credit sales = 4,00,000 – 85,000 = Rs. 3,15,000.

Page : 460 , Block Name : Numerical Questions

Q28 Mrs. Bhavana keeps his books by Single Entry System. You’re required to prepare final
accounts of her business for the year ended March 31, 2017. Her records relating to cash
receipts and cash payments for the above period showed the following particulars​ :

Page 35 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

Dr. Summary of cash Cr.
Receipts Amount(Rs.) Payments Amount(Rs.)
Opening balance of cash 12,000 Paid to creditors 53,000
Further capital 20,000 Business expenses 12,000
Received from debtors 1,20,000 Wages paid 30,000
Bhavana’s drawings 15,000
Balance of bank as on March 35,000
31, 2017
Cash in hand 7,000

1,52,000 1,52,000
The following information is also available :
April 01, 2016 March 31, 2017
Rs. Rs.
Debtors 55,000 85,000
Creditors 22,000 29,000
Stock 35,000 70,000
Plant 10,00,000 1,00,000
Machinery 50,000 50,000
Land & Building 2,50,000 2,50,000
Investment 20,000 20,000
All her sales and purchases were on credit. Provide depreciation on plant and building by 10%
and machinery by 5%, make a provision for bad debts by 5%.

Answer. In the Books of Mrs. Bhavana
Trading and Profit and Loss Account
Dr. as on March 31, 2017 Cr.
Particulars Amount(Rs.) Particulars Amount(Rs.)
To opening stock 35,000 By sales 1,50,000
To purchases 60,000 By closing stock 70,000
To wages 30,000
To gross profit c/d 95,000

To business expenses By gross profit b/d
To depreciation : 2,20,000 2,20,000
Plant 10,000
Building 25,000
Machine ​ 2,500
To provision for doubtful
debts
To net profit (transferred to
capital)

Page 36 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

12,000 95,000

37,500
4,250

41,250

95,000 95,000

Balance sheet
As at March 31, 2017
Liabilities Amount(Rs.) Assets Amount(Rs.)
Creditors 29,000 Cash in hand 7,000
Capital 5,00,000 Cash at bank 35,000
Less: drawing ​(15,000) Stock 70,000
4,85,000 Investment 20,000
Add: net profit 41,250 Debtors 85,000
Add; future capital ​ 20,000 5,46,250 Less: provision ​ 4,250 80,750
Plant 1,00,000
Less: depreciation ​ 10,000 90,000
Machinery 50,000
Less: depreciation ​ 2,500 47,500
Building 2,50,000
Less: depreciation ​ 25,000 2,25,000

5,75,250 5,75,250

Working note: 1.
Dr. Debtors’ account Cr.
Particulars Amount(Rs.) Particulars Amount(Rs.)

Page 37 of 38 Aglasem Schools

Book Name : Accountancy-II Ncert Solutions | Chapter-11 Accountancy

To balance b/d 55,000 By cash 1,20,000
To credit sales(balancing 1,50,000 By balance c/d 85,000
figure)
2,05,000 2,05,000

2
Dr. Creditors’ account Cr.
Particulars Amount(Rs.) Particulars Amount(Rs.)
To cash 53,000 By balance b/d 22,000
To balance c/d 29,000 By credit purchases 60,000
(balancing figure)
82,000 82,000

3
Statement of affairs as on March 31, 2017
Liabilities Amount(Rs.) Assets Amount(Rs.)
Creditors 22,000 Cash 12,000
Capital (balancing figure) 5,00,000 Stock 35,000
Debtors 55,000
Investment 20,000
Plant 1,00,000
Machinery 50,000
Land and building 2,50,000

5,22,000 5,22,000

Page : 460 , Block Name : Numerical Questions

Page 38 of 38 Aglasem Schools