TS Grewal Accountancy Class 11 Solutions Chapter 15

TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship

Please find the below questions and answers with solutions. You will get all the Class 11 Chapter 15 accounts solutions from this post.

Question 1.
State whether the following expenses are capital or revenue in nature:
(i) Expenses on whitewashing and painting of a building purchased to make it ready for use.
(ii) ₹ 10,000 spent on construction platform for a new machine.
(iii) Repair expenses of ₹ 25,000 incurred for whitewashing of factory building.
(iv) Purchased a new car.
Solution:

Expenditure Reason
(i) Capital Expenditure Paid to make an asset ready to use
(ii) Capital Expenditure Paid to make an asset ready to use
(iii) Revenue Expenditure Made for the maintenance of asset
(iv) Revenue Expenditure Part of normal operating cost
(v) Capital Expenditure Used in business for a number of years

Question 2.
State with reasons whether the following are Capital or Revenue Expenses:
(i) Excise duty paid on purchase of new machine.
(ii) Wages paid to install a machine.
(iii) Repairs carried out on existing car.
(iv) Office block of building repainted for ₹ 50,000.
(v) Paid telephone bill ₹ 2,500.
Solution:

Expenditure Reason
(i) Capital Expenditure Paid for the acquisition of new asset
(ii) Capital Expenditure Paid to make the asset ready to use
(iii) Revenue Expenditure Paid for the running and maintenance of car
(iv) Revenue Expenditure Paid for the maintenance of Building
(v) Revenue Expenditure Part of normal operating cost

Question 3.
From the following information determine Gross Profit for the year ended 31st March, 2018.
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q3
Solution:
Gross Profit = Sales + Closing Stock – (Opening Stock + Goods Purchased + Freight and Packing)
= 1,90,000 + 30,000 – (25,000 +1,40,000 + 10,000)
= 2,20,000 – 1,75,000
= Rs. 45,000
Note: Packing Expenses on sales (Rs.6,000) is not a Direct Expense. Thus, it not considered while computing the amount of Gross Profit.

Question 4.
Calculate Closing Stock from the following details:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q4
Solution:
Gross Profit on cost = 33\frac { 1 }{ 3 } %.
Cost = \frac { 1 }{ 3 }rd.
Gross Profit on sales = \frac { 1 }{ 4 }th
And, Sales = Cash Sales + Credit Sales = 60,000+40,000 = Rs.1,00,000
So, Gross Profit = 1,00,000 x \frac { 1 }{ 4 } = Rs.25,000
Cost of Goods Sold = Sales – Gross Profit = 1,00,000 – 25,000 = Rs.75,000
Cost of Goods Sold = Opening Stock + Purchases – Closing Stock
75,000 = 20,000 + 70,000 – Closing Stock
Closing Stock = Rs.15,000

Question 5.
Prepare Trading Account from the transactions givne below:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q5
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q5

Question 6.
Ascertain Gross Profit the following:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q6
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q6
Note: Carriage on Sales and Office Rent are not a Direct Expense. Thus, it is not considered while computing the amount of Gross Profit.

Question 7.
From the following information prepare Trading Account for the year ended 31st March, 2018:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q7
Net Realisable Value (Market Value) of stock as on 31st March, 2018 was ₹ 1,20,000.
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q7
Note: According to the Principle of Conservatism, closing stock is valued at Cost or Market Price, whichever is less. Hence, closing stock is valued at Market Price (i.e., Rs.1,20,000)

Question 8.
From the following information, prepare Trading Account for the year ended 31st March, 2018:
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.
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q8
Note :
1. Freight and Carriage Outwards are not a Direct Expense. Thus, it is not recorded in the trading Account.
2. Adjusted Purchases = Opening Stock + Net Purchases – Closing Stock
Therefore, Closing Stock (Rs.50,400) is not considered while preparing Trading Account.

Question 9.
Following balances appear in the Trail Balance of a firm as on 31st March, 2018:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q9
Prepare Trading Account of the firm.
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q9
Note: Freight Outwards are not a Direct Expense. Thus, it is not recorded in the Trading Account.

Question 10.
From the following information, prepare Trading account for the year ended 31st March, 2018:
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.
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q10
Note :
1. Freight and Carriage Outwards are not a Direct Expense. Thus, it is not recorded in the Trading Account.
2. Adjusted Purchases = Opening Stock + Net Purchases – Closing Stock
Therefore, Closing Stock (Rs.50,000) is not considered while preparing Trading Account.

Question 11.
From the following figures, calculate Operating Profit:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q11
Solution:
Calculation of Operating Profit
Operating Profit = Net Profit – Rent Received – Gain of sales of Machine + Interest on Loan + Donation
= 1,00,000 – 10,000 – 15,000 + 20,000 + 2,000
= Rs.97,000
Operating Profit = Rs.97,000

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, 2018:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q12
The Gross Profit was 45% of sales, which amounted to ₹ 6,50,000.
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q12

Question 13.
From the following information, prepare Profit and Loss Account for the year ended 31st March, 2018:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q13
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q13

Question 14.
From the following particular, prepare Balance Sheet as at 31st March, 2018:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q14
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q14

Question 15.
From the following information, prepare Balance Sheet of a trader as at 31st March, 2018 arranging the assets and liabilities-
(i) in order of permanence and
(ii) in order of liquidity:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q15
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q15
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q15.1

Question 16.
From the Balance Sheet given below, calculate:
(i) Fixed Assets
(ii) Current Assets
(iii) Current Liabilities
(iv) Working Capital
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q16
Solution:
i. Calculation of Fixed Asset
Fixed Assets = Land + Plant + Furniture + Goodwill = 20,000 + 32,000 + 8,000 + 20,000 = Rs.80,000
ii. Calculation of Current Assets
Current Assets = Stock + Debtors + Prepaid Expenses = 48,000 + 36,000 + 400 = Rs.84,400
iii. Calculation of Current Liabilities
Current Liabilities = Creditors + Expenses Accrued + Bank Overdraft + Interest on Loan = 42,000 + 3,200 + 4,800 + 1,000 = Rs. 51,000
iv. Calculation of Working Capital
Working Capital = Current Assets – Current Liabilities = 84,400 – 51,000 = Rs.33,400

Question 17.
Prepare Trading and Profit and Loss Account and Balance Sheet of Jagat Shah as at 31st March, 2018 from the following balances:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q17
The Closing Stock was valued at ₹ 2,00,000.
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q17
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q17.1

Question 18.
From the following balances, prepare Trading and Profit and Loss Account and Balance Sheet:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q18
Closing Stock was valued at ₹ 30,000.
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q18
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q18.1

Question 19.
The following are the balances as on 31st March, 2018 extracted from the books of Dass:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q19
The stock on 31st March, 2018 was valued at ₹ 2,40,000.
You are required to prepare Trading Account, Profit and Loss Account and Balance Sheet as at 31st March, 2018.
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q19
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q19.1

Question 20.
From the following balances of Anand, prepare Trading Account, Profit and Loss Account and Balance Sheet as at 31st March, 2018:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q20
Value of goods on hand (31st March, 2018) was ₹ 1,43,000.
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q20
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q20.1

Question 21.
From the following balances, prepare Final Accounts of M./s. Raja & Sons for the year ended 31st March, 2018:
Salary ₹ 5,400; Insurance ₹ 2,500; Cash ₹ 400; Purchases ₹ 84,170; Rent Received ₹ 3,150; Drawings ₹ 2,100; Bills Payable ₹ 3,900; Debtors ₹ 38,080; Stock (1st April, 2017) ₹ 29,500; Bank Overdraft ₹ 9,700; Carriage ₹ 2,200; Creditors ₹ 4,200; Trade Expenses ₹ 4,900; Sales Return ₹ 4,700; Machinery ₹ 12,000; Wages ₹ 45,000; Sales ₹ 1,47,200; Purchases Return ₹ 3,900; Capital ₹ 58,900; Closing Stock (31st March, 2018) ₹ 36,200.
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q21
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q21.1

Question 22.
From the following balances, prepare Final Accounts of M./s. Mangal & Sons for the year ended 31st March, 2018:
Opening Stock ₹ 12,500; Bills Receivable ₹ 2,000; Sales ₹ 70,000; Purchases ₹ 37,500; Creditors ₹ 20,000; Salaries ₹ 3,850; Insurance ₹ 200; Debtors ₹ 32,500; Carriage ₹ 1,450; Commission ₹ 750; Interest ₹ 900; Printing ₹ 250; Bills Payable ₹ 3,150; Returns In ₹ 1,300; Returns Out ₹ 500; Bank ₹ 5,250; Rent and Taxes ₹ 1,300; Furniture ₹ 1,000; Capital ₹ 7,100; Stock on 31st March, 2018 ₹ 15,000.
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q22
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q22.1

Question 23.
From the following balances, prepare Trading and Profit and Loss Account and the Balance Sheet:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q23
Closing Stock was of ₹ 70,000 but its net realisable value was estimated at ₹ 60,000.
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q23
Note: According to the Principle of Conservatism, closing stock is valued as whichever is less. Hence, closing stock is valued at (i.e., Rs.60,000)

Question 24.
From the following balances taken from the books of Hari & Co., prepare Trading and Profit and Loss Account for the year ended 31st March, 2018
and Balance Sheet as at that date:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q24
Closing Stock was valued at ₹ 1,82,100.
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q24
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q24.1

Question 25.
From the following balances, as on 31st March, 2018, prepare Trading and Profit and Loss Account and Balance Sheet:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q25
Closing Stock on 31st March, 2018 was valued at ₹ 14,500.
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q25
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q25.1

Question 26.
Trial Balance of Chatter Sen on 31st March, 2018 revealed the following balances:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q26
Stock on 31st March, 2018 was valued at ₹ 35,000. Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at the date.
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q26
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q26.1

Question 27.
Following Trial Balance is extracted from the books of a merchant on 31st March, 2018:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q27
Stock in Hand on 31st March, 2018 was valued at ₹ 32,500.
From the above, prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date.
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q27
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q27.1

Question 28.
The following balances were extracted from the books of Harish Chandra on 31st March, 2018:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q28
Stock on 31st March, 2018 was valued at ₹ 2,35,000.
Prepare final accounts for the year ended 31st March, 2018.
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q28
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q28.1
Setting-off GST:
Input CGST + Input SGST – Output IGST = 15,000 + 15,000 – 30,000 = NIL

Question 29.
From the following Trial Balance and additional information of Mr. Gaurav, a proprietor, prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Seet as at that date:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q29
Closing Stock at cost ₹ 1,00,000 but its market value is ₹ 88,500.
Solution:
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q29
TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship Q29.1

 

Updated: November 3, 2019 — 1:04 pm

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