Page 137 - debkxi

18.4 Double Entry Book Keeping—CBSE XI

Solution:
Profit = Closing Capital + Drawings – Additional Capital – Opening Capital
` 25,000 = ` 70,000 + ` 15,000 – 0 – Opening Capital
Opening Capital = ` 85,000 – ` 25,000 = ` 60,000.
6. Calculate Closing Stock from the following details:
Opening Stock ` 20,000
Cash Sales ` 60,000
Credit Sales ` 40,000
Purchases ` 70,000
1
Rate of Gross Profit on Cost 33 %. (KVS 2015)
3
1 1
Solution: Let the Cost be ` 100; Gross Profit on Cost = ` 33 ; Sales = ` 133 .
3 3
1 1 100 3 1
Gross Profit on Sales = ` 33 /` 133 =  
3 3 3 400 4
Total Sales = Cash Sales + Credit Sales
= ` 60,000 + ` 40,000 = ` 1,00,000
1
Gross Profit = ` 1,00,000 × = ` 25,000
4
Sales – Gross Profit = Cost of Goods Sold
` 1,00,000 – ` 25,000 = ` 75,000
Cost of Goods Sold = Opening Stock + Purchases – Closing Stock
` 75,000 = ` 20,000 + ` 70,000 – Closing Stock
Closing Stock = ` 15,000.
7. The following is the Trial Balance of Mr. Ashok for the year ended 31st March,
2024:
Debit Balance ` Credit Balance `
Purchases 60,000 Capital Account 1,13,075
Sales Return 2,000 Sales 1,27,500
Plant and Machinery 90,000 Purchases Return 1,275
Opening Stock 40,000 Discount Received 800
Discount Allowed 350 Sundry Creditors 25,000
Bank Charges 100
Sundry Debtors 45,000
Salaries 7,000
Wages 10,000
Freight In 1,000
Freight Out 1,200
Rent 2,000
Advertisements 2,000
Cash at Bank 7,000
2,67,650 2,67,650
Closing Stock was valued at ` 35,000.
Prepare Trading and Profit & Loss Account for the year ended 31st March, 2024 and
Balance Sheet as on that date.