NCERT Solutions is said to be an extremely helpful book during the preparation of the CBSE Class 11 Accounting Exams. This study material has deep knowledge, and the solutions collected by the subject matter wizards are not separate.
NCERT Solution For Class 11 Accountancy Chapter 10 (Part 2 – Chapter 2)– Introduction to Accounting provides us with all-inclusive information on all concepts. As students would have to learn the basics about the subject of accounting in class 11, this curriculum for class 11 is a comprehensive study material, which explains the concepts in a great way.
Below you can find the NCERT solution for Class 11 Accountancy. You can get a Solution for the all-important question of “Chapter 10 : Financial Statements – II”
NCERT solution for Class 11 Accountancy Chapter -10 Financial statements 2 aims to describe about the adjusting entries in the preparation of final accounts, closing stock and its treatment in final accounts. The outstanding expenses, prepaid expenses, income received in advance and accrued income are also explained in the chapter. The proforma to record income statement in a vertical form is shown and explained. Mainly the way to record entries and balance them is the main focus of the chapter.
Page No 410:
Question 1: Why is it necessary to record the adjusting entries in the preparation of final accounts?
Question 2: What is meant by closing stock? Show its treatment in final accounts.
Question 3: State the meaning of:
(a) Outstanding expenses
(b) Prepaid expenses
(c) Income received in advance
(d) Accrued income
Question 4: Give the performa of income statement and balance in vertical form.
Question 5: Why is it necessary to create a provision for doubtful-debts at the time of preparation of final accounts?
Question 6: What adjusting entries would you record for the following?
(b) Discount on debtors
(c) Interest on capital
(d) Manager’s commission
Question 7: What is meant by provision for discount on debtors?
Question 8: Give the journal entries for the following adjustments:
(a) Outstanding salary at Rs 3,500.
(b) Rent unpaid for one month at Rs 6,000 per annum.
(c) Insurance prepaid for a quarter at Rs 16,000 per annum.
(d) Purchase of furniture costing Rs 7,000 entered in the purchases book.
Page No 411:
Question 1: What are adjusting entries? Why are they necessary for preparing the final accounts?
Question 2: What is meant by provision for doubtful-debts? How are the relevant accounts prepared and what journal entries are recorded in the final accounts? How is the amount for provision for doubtful-debts calculated?
Question 3: Show the treatment of prepaid expenses, depreciation and closing stock at the time of preparation of final accounts when:
(a) When given inside the Trial Balance?
(b) When given outside the Trial Balance?
Question 1: Prepare a trading and profit and loss account for the year ending December 31, 2017. from the balances extracted of M/s Rahul Sons. Also prepare a balance sheet at the end of the year.
|Purchases||1,75,000||Provision for doubtful debts||2,500|
|Sundry Debtors||82,000||Bills payable||22,000|
|Discount allowed||1,000||Commission received||4,000|
|Rent Rates and Taxes||4,300||Loan||34,800|
|Fixtures and fittings||20,000|
|Repair and renewals||1,600|
- Commission received in advance Rs 1,000.
- Rent receivable Rs 2,000.
- Salary outstanding Rs 1,000 and insurance prepaid Rs 800.
- Further bad debts Rs 1,000 and provision for doubtful debts @ 5% on debtors and discount on debtors @ 2%.
- Closing stock Rs 32,000.
- Depreciation on building @ 6% p.a.
Page No 412:
Question 2: Prepare a trading and profit and loss account of M/s Green Club Ltd. for the year ending March 31, 2017. from the following figures taken from his trial balance :
|Postage and Telegram||600||Bills payable||20,000|
|Wages||3,000||Provision for bad debts||4,500|
|Rent and Rates||1,000||Interest received||5,400|
|Packing and Transport||500||Capital||75,000|
|Cash in hand||20,000|
|Cash at bank||40,000|
|Lighting and Heating||5,000|
- Depreciation charged on machinery @ 5% p.a.
- Further bad debts Rs 1,500, discount on debtors @ 5% and make a provision on debtors @ 6%.
- Wages prepaid Rs 1,000.
- Interest on investment @ 5% p.a.
- Closing stock 10,000.
Page No 413:
Question 3: The following balances has been extracted from the trial of M/s Runway Shine Ltd. Prepare a trading and profit and loss account and a balance sheet as on March 31, 2017.
|Opening stock||50,000||Return outwards||4,500|
|Return inwards||2,000||Interest received||3,500|
|Carriage inwards||4,500||Discount received||400|
|Cash in hand||77,800||Creditors||1,25,000|
|Cash at bank||60,800||Bill payable||6,040|
|Printing and Stationery||4,500|
|Postage and Telegraph||400|
- Further bad debts Rs 1,000. Discount on debtors Rs 500 and make a provision on debtors @ 5%.
- Interest received on investment @ 5%.
- Wages and interest outstanding Rs 100 and Rs 200 respectively.
- Depreciation charged on motor car @ 5% p.a.
- Closing Stock Rs 32,500.
Page No 414:
Question 4: From the following Trial Balance you are required to prepare trading and profit and loss account for the year ending March 31, 2017 and Balance Sheet on that date.
|Carriage Inwards||4,700||Provision for bad and doubtful debts||2,100|
|Interest on Bank Overdraft||7,000|
- Closing stock valued at ₹ 36,000.
2. Private purchases amounting to ₹ 5,000 debited to purchases account.
3. Provision for doubtful debts @ 5% on debtors.
4. Sign board costing ₹ 4,000 includes in advertising.
5. Depreciate furniture by 10%.
Page No 415:
Question 5: From the following information prepare trading and profit and loss account of M/s Indian sports house for the year ending March 31, 2017.
|Sundry debtors||80,000||Return outwards||2,000|
|Bad debts||1,000||Bank overdraft||12,000|
|Trade Expenses||2,400||Provision for bad debts||4,000|
|Printing and Stationery||2,000||Sundry creditors||60,000|
|Rent Rates and Taxes||5,000||Bills payable||15,400|
|Furniture and Fixture||20,000|
|Plant and Machinery||1,00,000|
|Cash in hand||6,000|
- Closing stock was Rs 45,000.
- Provision for doubtful debts is to be maintained @ 2% on debtors.
- Depreciation charged on : furniture and fixture @ 5%, plant and Machinery @ 6% and motor car @ 10%.
- A Machine of Rs 30,000 was purchased on October 01, 2016.
- The manager is entitle to a commission of @ 10% of the net profit after charging such commission.
Page No 416:
Question 6: Prepare the trading and profit and loss account and a balance sheet of M/s Shine Ltd. from the following particulars.
|Sundry debtors||1,00,000||Bills payable||85,550|
|Bad debts||3,000||Sundry creditors||25,000|
|Trade expenses||2,500||Provision for bad debts||1,500|
|Printing and Stationary||5,000||Return outwards||4,500|
|Rent, Rates and Taxes||3,450||Capital||2,50,000|
|Sales return||6,000||Interest received||11,260|
|Furniture and Fixture||15,500|
|Cash in hand||36,000|
|Cash in bank||53,000|
- Closing stock was valued Rs 35,000.
- Depreciation charged on furniture and fixture @ 5%.
- Further bad debts Rs 1,000. Make a provision for bad debts @ 5% on sundry debtors.
- Depreciation charged on motor car @ 10%.
- Interest on drawing @ 6%.
- Rent, rates and taxes was outstanding Rs 200.
- Discount on debtors 2%.
Page No 417:
Question 7: Following balances have been extracted from the trial balance of M/s Keshav Electronics Ltd. You are required to prepare the trading and profit and loss account and a balance sheet as on March 31, 2017.
|Motor van||30,000||Interest received||20,000|
|Heat and Power||8,000|
|Salary and Wages||5,000|
|Postage and Telegram||1,000|
|Cash in hand||79,000|
|Cash at bank||98,000|
The following additional information is available :
- Stock on December 31, 2017 was Rs 30,000.
- Depreciation is to be charged on building at 5% and motor van at 10%.
- Provision for doubtful debts is to be maintained at 5% on Sundry Debtors.
- Unexpired insurance was Rs 600.
- The Manager is entitled to a commission @ 5% on net profit before charging such commission.
Page No 418:
Question 8: From the following balances extracted from the books of Raga Ltd. Prepare a trading and profit and loss account for the year ended March 31, 20117 and a balance sheet as on that date.
|Land and Buildings||12,000||Capital||1,01,110|
|Plant and Machinery||40,000||Discount||1,260|
|Carriage inwards||100||Apprentice premium||5,230|
|Coal, Gas and Water||1,200|
|Cash at bank||50,000|
|Rates and Taxes||870|
|Cash in hand||30,000|
The additional information is as under:
- Closing stock was valued at the end of the year Rs, 20,000.
- Depreciation on plant and machinery charged at 5% and land and building at 10%.
- Discount on debtors at 3%.
- Make a provision at 5% on debtors for doubtful debts.
- Salary outstanding was Rs 100 and Wages prepaid was Rs 40.
- The manager is entitled a commission of 5% on net profit after charging such commission.
Page No 419:
Question 9: From the following balances of M/s Jyoti Exports, prepare trading and profit and loss account for the year ended March 31, 2017 and balance sheet as on this date.
|Sundry debtors||9,600||Sundry creditors||2,500|
|Carriage inwards||450||Bills payable||15,600|
|Plant and Machinery||3,600|
|Cash in hand||2,160|
|Gas and Water||240|
Closing stock Rs 10,000.
- To provision for doubtful debts is to be maintained at 5 per cent on sundry debtors.
- Wages amounting to Rs 500 and salary amounting to Rs 350 are outstanding.
- Factory rent prepaid Rs 100.
- Depreciation charged on Plant and Machinery @ 5% and Building @ 10%.
- Outstanding insurance Rs 100.
Page No 420:
Question 10: The following balances have been extracted from the books of M/s Green House for the year ended March 31, 2017, prepare trading and profit and loss account and balance sheet as on this date.
|Bank balance||11,000||Bills payable||6,500|
|Cash in hand||1,200||Return outwards||4,000|
|Gas and fuel||2,700|
|Freight and Carriage||3,500|
(a) Machinery is depreciated at 10% and buildings depreciated at 6%.
(b) Interest on capital @ 4%.
(c) Outstanding wages Rs 50.
(d) Closing stock Rs 50,000.
Page No 421:
Question 11: From the following balances extracted from the book of M/s ManjuChawla on March 31, 2017. You are requested to prepare the trading and profit and loss account and a balance sheet as on this date.
|Purchases and Sales||40,000||80,000|
|Dock and cleaning charges||4,000|
|Debtors and Creditors||6,000||7,000|
|Land and Machinery||43,000|
|Donations and Charity||600|
|Sales tax collected||1,000|
Closing stock was Rs 2,000.
(a) Interest on drawings @ 7% and interest on capital @ 5%.
(b) Land and Machinery is depreciated at 5%.
(c) Interest on investment @ 6%.
(d) Unexpired rent Rs 100.
(e) Charge 5% depreciation on furniture.
Page No 422:
Question 12: The following balances were extracted from the books of M/s Panchsheel Garments on March 31, 2017.
|Carriage inwards||1,400||Bank overdraft||10,000|
|Cash in hand||4,000|
Prepare the trading and profit and loss account for the year ended March 31, 2017 and a balance sheet as on that date.
(a) Unexpired insurance ₹ 1,000.
(b) Salary due but not paid ₹ 1,800.
(c) Wages outstanding ₹ 200.
(d) Interest on capital 5%.
(e) Scooter is depreciated @ 5%.
(f) Furniture is depreciated ₹ @ 10%.
(g) Closing stock was ₹ 15,000.
Page No 423:
Question 13: Prepare the trading and profit and loss account and balance sheet of M/s Control Device India on March 31, 2017 from the following balance as on that date.
|Drawings and Capital||19,530||67,500|
|Purchase and Sales||45,000||1,12,500|
|Salary and Commission||25,470||1,575|
|Plant and Machinery||27,000|
|Rent and Taxes||2,160|
|Debtors and Creditors||36,000||58,500|
Closing stock was valued Rs 20,000.
(a) Interest on capital @ 10%.
(b) Interest on drawings @ 5%.
(c) Wages outstanding Rs 50.
(d) Outstanding salary Rs 20.
(e) Provide a depreciation @ 5% on plant and machinery.
(f) Make a 5% provision on debtors.
Page No 423:
Question 14: The following balances appeared in the trial balance of M/s Kapil Traders as on March 31, 2017
|Provision for doubtful debts||2,000|
The partners of the firm agreed to records the following adjustments in the books of the Firm: Further bad debts Rs.300. Maintain provision for bad debts 10%. Show the following adjustments in the bad debts account, provision account, debtors account, profit and loss account and balance sheet.
Page No 424:
Question 15: Prepare the bad debts account, provision for account, profit and loss account and balance sheet from the following information as on March 31, 2017
|Provision for doubtful debts||5,000|
Bad Debts Rs 500 Provision on Debtors @ 3%.
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