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Question 49 of 50
Q.

(a) Ambiga does not keep her books under double entry system. Find the Profit or Loss made by her for the year ending 31st March, 2018.

Particulars31.3.2017 (₹)31.3.2018 (₹)
Cash at bank5,000 (Dr)60,000 (Cr)
Cash in hand3,0004,500
Stock of goods35,00045,000
Sundry Debtors1,00,00090,000
Plant and Machinery80,00080,000
Land and Buildings1,40,0001,40,000
Sundry Creditors1,70,0001,30,000

Ambiga had withdrawn ₹ 60,000 for her personal use. She had introduced ₹ 17,000 as capital for expansion of her business. Create a provision of 5% on debtors. Plant and Machinery is to be depreciated at 10%.

OR

(b) What is meant by accounting reports ? What are the steps involved in designing accounting reports ?

Tamil Nadu DgeTamil Nadu HSC (DGE) Commerce Board 2026Subjective· 5mImportance★★★★★
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(a) Profit = closing capital ₹1,57,000 + drawings ₹60,000 − additional capital ₹17,000 − opening capital ₹1,93,000 = ₹7,000. (b) Accounting report = summarised accounting info; designed in four steps.

(a) Profit by capital comparison (net worth) method — TN HSC Class-12 Accountancy, Accounts from Incomplete Records

Step 1 — Opening capital (Statement of Affairs as on 31.3.2017):

Liabilities₹Assets₹
Sundry creditors1,70,000Land and buildings1,40,000
Capital (bal. fig.)1,93,000Plant and machinery80,000
Sundry debtors1,00,000
Stock of goods35,000
Cash at bank5,000
Cash in hand3,000
Total3,63,000Total3,63,000

Opening capital = ₹1,93,000.

Step 2 — Closing capital (Statement of Affairs as on 31.3.2018, with adjustments):

Note: Cash at bank ₹60,000 (Cr) is a bank overdraft = liability. Provision @ 5% on debtors = 90,000 × 5% = ₹4,500. Depreciation @ 10% on plant = 80,000 × 10% = ₹8,000.

Liabilities₹Assets₹
Sundry creditors1,30,000Land and buildings1,40,000
Bank overdraft60,000Plant and machinery 80,000 − 8,000 dep.72,000
Capital (bal. fig.)1,57,000Sundry debtors 90,000 − 4,500 provision85,500
Stock of goods45,000
Cash in hand4,500
Total3,47,000Total3,47,000

Adjusted closing capital = ₹1,57,000.

Step 3 — Statement of Profit or Loss:

Particulars₹
Closing capital (adjusted)1,57,000
Add: Drawings60,000
2,17,000
Less: Additional capital introduced17,000
2,00,000
Less: Opening capital1,93,000
Profit for the year7,000

(b) Accounting reports (TN HSC Class-12 Accountancy — Computerised Accounting)

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