Goyal Brothers Prakashan solutions for Commercial Studies [English] Class 10 ICSE chapter 7 - Final Accounts of Sole Proprietorship [Latest edition]

It is an account prepared to ascertain the gross profit/loss. It is a nominal account and represents the first stage of final accounts of a trading organisation.

It is an account prepared to know the net profit/loss. It is also a nominal account and represents second stage.

A ______ is a statement of assets and liabilities at the end of the period. It shows the financial position of a business on a certain date and represents the third and final stage.

Assets and liabilities in the ______ can be arranged either in order of liquidity or in order of permanence.

______ provides information about the net profit earned or net loss suffered by the business during a given accounting period.

______ purpose is to show the financial position of the business while purpose of ______ is to establish the arithmetical accuracy of the books of accounts.

Gross Profit/loss is transferred from ______.

Net profit/loss is transferred from ______.

Abnormal Losses such as stock destroyed by fire, goods lost intransit, loss on sale of fixed assets are recorded on the ______ side of the ______.

Office rent, office lighting, office salaries, insurance, postage and telegrams, stationery and printing, audit fees, legal expenses are recorded on the ______ side of the ______.

Storage expenses, carriage outwards, salaries of sales staff are recorded on the ______ side of the ______.

Wages, carriage inward are recorded on the ______ side of the ______. 

Sales are recorded on the ______ side of the ______. 

Purchases are recorded the ______ side of the ______.

Carriage outwards are recorded the ______ side of the ______.

Closing stock is on the credit side of the ______ and also in ______.

Opening stock is the first item on the ______ side of ______.

The difference of the two sides of this account is either net profit or net loss.

In case, the total of the debit side is greater than the total of the credit side, the difference represents ______.

It is a financial statement which sets out the assets and liabilities of a trading or non-trading organisation as on a certain date. 

______ is not an account but only a statement of assets and liabilities.

The excess of assets over liabilities represents the ______ of the owner.

It helps the investor to know the earning capacity and financial health of the firm.

______ is prepared to know the financial position where as ______ is prepared to ascertain the net profit or net loss.

______ is prepared to know the financial position where as ______ purpose is to establish the arithmetical accuracy of the books of account. 

______ is a financial statement which sets out assets and liabilities as on a certain date. 

Answer in One Sentence:

What is a Trading A/c?

Why is a Trading Account prepared?

Answer in One Sentence:

What do you mean by Profit & Loss A/c?

What is the purpose of a Profit and Loss Account?

What is a Balance Sheet?

Why is a Balance Sheet prepared?

Distinguish between liquidity preference and permanence preference. 

What are liquid assets?

What are contingent liabilities?

Give two examples of fictitious assets.

Mention two contingent liabilities. 

Distinguish between book keeping and accounting.

Distinguish between a Trading Account and a Profit and Loss Account.

Answer in One Sentence:

What is a Trading A/c?

Explain the nature of a Trading Account. 

Explain the needs of a Trading Account.

Answer in One Sentence:

What do you mean by Profit & Loss A/c?

Explain the needs of Profit and Loss Account.

What is a Balance Sheet?

What are the features of a Balance Sheet?

Distinguish between a Balance Sheet and a Trial Balance. 

Distinguish between a Profit and Loss Account and a Balance Sheet. 

Explain the methods of marshalling of a Balance Sheet.

Give a classification of assets.

Give a classification of liabilities.

Abraham is in business. The following balances were extracted from the books as on 31.12.2018. You are required to prepare a trading account and a profit and loss account for the year ended 31.12.2018 and a balance sheet as on that date. 

When preparing the accounts it is necessary to take the following matters into consideration: Closing stock on 31.12.2018 was ₹ 8,760.

From the following balances of Mr. Kumar, prepare final accounts for the year 2018: 

The following is the trial balance of Harinath's business, for the year ending 31 March 2019:

Prepare the trading account and the profit and loss account for the year ended 31-3-2019, together with the balance sheet as on that date.

Stock on 31-3-2019 valued at ₹ 5,690.

Mr. Tate's financial position on 1 December, 2018 was as follows:

Stock ₹ 4,460; Debtors ₹ 890; Creditors ₹ 2 400; Cash ₹ 500; and Fixed assets ₹ 3,000.

1. Draw up a statement to show his assets, liabilities and capital on 1.12.2018.
2. During the month of December, 2018, the following transactions took place; Sold goods for cash ₹ 4.000; sold the balance goods on credit for ₹ 3 000; received ₹ 2 000 from debtors; paid ₹ 900 to creditors; withdrew ₹ 400 for personal use; allowed and accounted a direct payment of ₹ 500 by a debtor to one of the creditors.

Draw up a statement of his financial position at the end of the month of December 2018.

From the following trial balance and other additional information obtained from the books of Mr. Sunil Gavaskar, prepare his trading account and the profit and loss account for the half-year ended 30th September, 2018 and his balance sheet as on that date: 

1. Stock was valued at ₹ 40,000 on 30.9.2018.

The following is the trial balance obtained from the books of Mr. G. Vishwanath as on 30th June, 2019:

You are required to prepare Mr. Vishwanath's trading account and profit and loss account for the period ended 30 June, 2019 and a balance sheet as on that date after taking into account the following adjustments.

1. Stock valued on 30.6.2019 at ₹ 25,000.

Mr. Patil, the owner of Jai Hind Engineers, submits the following trial balance to you for the year ended 31st March 2019: 

Prepare the final accounts for him. Closing stock is valued at ₹ 5,400. 

Mr. Sputnik, who is always in a hurry, prepares the following trial balance as at 31.12.2019. You are required to prepare the final accounts taking into consideration the trial balance for the year ended 31st December 2018.

Closing stock is ₹ 7,500.

The following trial balance was extracted from the books of A. Harding, as on 31st March, 2019:

Prepare the complete set of final accounts for Mr. A. Harding, after incorporating the following adjustment:

1. Closing stock is ₹ 26,000.

The following is the trial balance of Mr. A. Chatterjee for the year ended 31st December, 2018. Compile the final accounts for him, after incorporating the adjustments and thereafter supply him with the required information, listed by him.

Closing stock value is ₹ 15,000.

The following is the trial balance of Mr. C. Nariman for the year ended 31st December, 2018. Complete the final accounts for him, after incorporating the adjustments and thereafter complete the required details listed by him. 

Stock on 31.12.2018 is ₹ 30,000.

Mr. P.H. Mehta is in business. The following balances were extracted from the books as on 31.12.2018. You are required to prepare the Trading Account and the Profit and Loss Account for the year ended 31.12.2018 and the Balance Sheet as on that date. 

Closing stock on 31.12.2018 was ₹ 48,700.

The following is the trial balance of Mr. R.P. Sharma for the year ended 31st December, 2018. Compile the final accounts for him, after attending to the adjustments and thereafter also submit the required information, listed by him.

Closing stock value is ₹ 7,500.

From the following trial balance of Mr. Roobex, prepare the final accounts of the year ended 31.12.2018.

Closing stock on 31.12.2018 was ₹ 56,000.

The following is the trial balance of Miss H. Seattle as on 31st December, 2018. 

Compile the final accounts for the owner, after attending to the adjustment given below.

1. Closing stock is evaluated at the lower market price ₹ 42,000 ignoring the cost price, which is higher by ₹ 4,000.

The following is the Trial Balance of Mr. V. Iyer for the year ended 31st December, 2018. Compile the final accounts for him, after incorporating the adjustments given.

Closing stock is valued at ₹ 50,000. 

The following is the trial balance of Mr. J. Jehangir as on 31st March, 2018. 

Compile the final accounts for the owner.

An inventory of the godown on 31.3.2018, reflected unsold stock valued ₹ 50,000.

The following is the trial balance of Mr. P. Crooke as on 31.03.2018.

Compile the final accounts for the owner, after attending to the adjustment given below.

Adjustment:

1. Stock in the Godown as on 31.3.2018 is ₹ 35,000.

From the following Trial Balance of Mr. Rajesh, prepare final accounts for the year ended 31.3.2019: 

Closing stock is valued at ₹ 45,000 (Its market price is only ₹ 40,000).

The following is the trial balance of Mr. M. Moonlite as on 31.3.2019. The Closing Stock as on 31.3.2019 is ₹ 40,000.

Compile the final accounts for the owner.

From the following Trial Balance of Mr. P.H. Planner as on 31.3.2019, prepare final accounts for him: 

Closing Stock is ₹ 45,000.

Trial Balance as on 31.3.2019 of Ms. Counsel.

Compile Final Accounts:

1. Closing Stock at the cost price is ₹ 8,000 more than the opening stock - but the ruling market price is ₹ 5,000 only, on 31.3.2019. 

Trial Balance of Mr. J. Junior as on 31.3.2019:

Compile Final Accounts:

1. An inventory of the godown on 31.3.2019 reflected stock value stated as ₹ 50,000.

From the following Trial Balance of Rinky, prepare a Trading Account and a Profit & Loss Account for the year ended 31.12.2018 and a Balance Sheet on that date.

Closing Stock ₹ 15,000.

The following Trial Balance was from the books of Ram as on 31st December 2018.

Prepare a Trading Account and a Profit & Loss Account for the year ended 31st December 2018 and a Balance Sheet as at that date.

The value of Stock on 31st December 2018 was ₹ 14 920.

The following is the Trial Balance of Amrit Roy as on 31st December 2018:

You are required to prepare the final accounts for the year ending 31st December 2018.

Closing Stock on 31.12.2018 was valued at ₹ 4,340.

The following balances were extracted from the books of Sri S. Kumar on 31st December 2018.

Stock on 31st December 2018 was valued at ₹ 23,500.

Prepare Final Accounts for the year ended 31st December 2018.

On 31st December, 2018 the following Trial Balance, was extracted from the books of Mohan:

Prepare a Trading Account and a Profit and Loss Account for the year ended 31st December, 2018 and a Balance Sheet as on that date after taking into account the following: 

Stock on 31st December, 2018 was valued at ₹ 7,000.

From the following trial balance of Mr. A prepare a Trading Account and a Profit and Loss Ale for the year ending 3tst Dec., 2018 and a Balance Sheet as on that date: 

Stock on 31st Dec., 2018 was ₹ 40,925.

Prepare a Trading, Profit and Loss A/c. and Balance Sheet of M/s. Sultan Enterprises for the year ended 31st March, 2010 from the following Trial Balance:

Closing Stock was ₹ 15,250.

Prepare Trading, Profit and Loss A/c and Balance Sheet of M/s Banerjee Enterprises for the Year ended 31st March, 2010 from the following Trial Balance.

Closing stock was ₹ 10,360.

From the following trial balance of Shri Rai Bahadur, prepare Trading, Profit and Loss Account for the year ending 31st March, 2018 and a Balance Sheet as on that date: 

The closing stock on 31st March was valued at ₹ 8,760.

The following is the Trial Balance of ABC Industries as on 31st December 2015.

The closing stock was valued at ₹ 9,000.

You are required to prepare a Trading Account and a Profit and Loss Account for the year ending 31st December 2015 and a Balance Sheet as on 31st December, 2015.

From the following Trail Balance of A.B. Chandra as on 31st December, 2019.

The closing stock was valued at ₹ 12,000.

You are required to prepare a Trading Account and a Profit and Loss Account for the year ending 31st December 2019 and a Balance Sheet as on 31st December, 2019.

Prepare a Trading, Profit and Loss account of Mr. A. Awasthi for the year ending on 31st March, 2022 and a Balance Sheet as on 31st March, 2022.

Closing stock on 31st March, 2022 was valued at ₹ 78,000.

What are liquid assets?

Distinguish between book keeping and accounting.

Give a classification of assets.

What are contingent liabilities?

Explain the needs of Profit and Loss Account.

Explain the nature of a Trading Account. 

Explain the needs of a Trading Account.

Explain the needs of Profit and Loss Account.

What are the features of a Balance Sheet?

Distinguish between a Balance Sheet and a Trial Balance.