# 11th | chapter:18 | Financial Statements of Sole Proprietorship | Question No. 5 to 8 | Ts grewal Solution 2022-2023

#### Question 5:

Ascertain Gross Profit from the following:

 ` ` Opening Stock 2,00,000 Carriage on Sales 30,000 Closing Stock 1,80,000 Office Rent 58,000 Purchases 8,50,000 Sales 14,07,000 Carriage on Purchases 23,000

 Trading Account Dr. Cr. Particulars (Rs) Particulars (Rs) Opening Stock 2,00,000 Sales 14,07,000 Purchases 8,50,000 Closing Stock 1,80,000 Carriage on Purchases 23,000 Gross Profit (Balancing Figure) 5,14,000 15,87,000 15,87,000

Note: Carriage on Sales and Office Rent are the Indirect Expenses, therefore, these are not considered to compute the amount of Gross Profit.

#### Question 6:

From the following information, prepare Trading Account for the year ended 31st March, 2022:

 ` ` Stock on 1st April, 2018 40,000 Returns Outward 80,000 Purchases 4,00,000 Wages and Salaries 50,000 Sales 3,80,000 Returns Inward 20,000 Carriage Inwards 20,000 Stock on 31st March, 2022 1,30,000

Net Realisable Value (Market Value) of stock as on 31st March, 2022 was  ` 1,20,000.

 Trading Account for the year ended March 31, 2022 Dr. Cr. Particulars ( `) Particulars ( `) Opening Stock 40,000 Sales 3,80,000 Purchases 4,00,000 Less: Return Inwards (20,000) 3,60,000 Less: Return Outwards (80,000) 3,20,000 Closing Stock 1,20,000 Carriage Inwards 20,000 Wages and Salaries 50,000 Gross Profit (Balancing Figure) 50,000 4,80,000 4,80,000

Note: Closing Stock is taken at its Market Price (i.e. Rs 1,20,000) instead of its Cost (i.e. Rs 1,30,000). This is because, as per Principle of Conservatism, Closing stock is taken at Cost or Market Price whichever is less.

#### Question 7:

From the following information, prepare Trading Account for the year ended 31st March, 2022:
` 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.

 Trading Account for the year ended March 31, 2022 Dr. Cr. Particulars ( `) Particulars ( `) Purchase (Adjusted) 6,60,000 Sales 7,44,000 Freight and Carriage Inwards 3,600 Wages 6,000 Gross Profit (Balancing Figure) 74,400 7,44,000 7,44,000

Notes:

1. Freight and Carriage Outwards are indirect expenses, therefore it is not recorded in the Trading Account.

2. Closing Stock (i.e. Rs 50,400) is not recorded in the Trading Account as it is already adjusted in the amount of Adjusted Purchases.

#### Question 8:

Following balances appear in the Trial Balance of a firm as on 31st March, 2022:

 ` Opening Stock: Raw Material 80,000 Finished Goods 1,40,000 Purchases 3,60,000 Sales 7,00,000 Returns: Purchases 10,000 Sales 6,000 Wages 1,30,000 Factory Expenses 90,000 Freight: Inwards 20,000 Outwards 30,000 At the end of the accounting period, stock was: Raw Materials 70,000 Work-in-Process 20,000 Finished Goods 1,10,000

Prepare Trading Account of the firm.

 Financial Statement of…. Trading Account  for the year ended March 31,2022 Dr. Cr. Particulars ( `) Particulars ( `) Opening Stock Sales 7,00,000 Raw Materials 80,000 Less: Return Inwards 6,000 6,94,000 Finished Goods 1,40,000 2,20,000 Closing Stock Purchases 3,60,000 Raw Materials 70,000 Less: Return Outwards 10,000 3,50,000 Work-in-Progress 20,000 Freight Inwards 20,000 Finished Goods 1,10,000 2,00,000 Wages 1,30,000 Factory Expenses 90,000 Gross Profit (Balancing Figure) 84,000 8,94,000 8,94,000

Note: Freight outwards is an indirect expense. It will be recorded in Profit & Loss A/c.

Class : 11th | Ts Grewal solution 2022-2023

Chapter 18: Financial Statements of Sole Proprietorship

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Question no. 1 to 4

Question no. 5 to 8

Question no. 9 to 12

Question no. 13 to 16

Question no. 17 to 20

Question no. 21 to 25