Class 11 Accountancy NCERT Solutions Chapter 11 Accounts from Incomplete Records
Students need to have a clear understanding of the underlying concepts and principles covered in the Class 11 Accountancy Chapter 11 to solve all the problems from this chapter in the exam. Vedantu provides the NCERT Solutions Class 11 Accountancy Chapter 11 to help students learn all the topics covered in this chapter easily. Several examples of numerical type questions that require immense practice are solved in the NCERT Solutions Class 11 Accountancy Chapter 11. Students can download and refer to the NCERT Solutions for Class 11 Accountancy Chapter 11 PDF for free from Vedantu.
Many students find it very difficult to understand various accounting problems and to distinguish transactions based on the interpretation of the monetary value. Accountancy Book Class 11 Solutions Chapter 11 by Vedantu provides comprehensive study resources on this chapter. These NCERT Solutions are based on the previous year’s board exam model problems and the latest CBSE guidelines for Class 11 Accountancy. Hence, referring to these NCERT Solutions make your exam preparation simple and easy.
Access NCERT Solutions for Class 11 Accountancy Chapter 11- Accounts from Incomplete Records
1. State the meaning of incomplete records?
Ans: Incomplete records are kept in the case of the business not following the proper duplicate accounting system. In such cases, the business only saves and records money transactions and your accounts. Such a system of Accounting is usually followed by the business that receives it. The most expensive thing is to maintain a proper double-entry system accounting. The evil of this system is exactly that profit cannot be obtained by the business.
2. What are the possible reasons for keeping incomplete records?
Ans: The following are some possible reasons for the imperfection records:
1. Easy to take care of: The storage of such account books does not require any action so they can be stored in a simple and easy way.
2. They can show that they are saving money through the business: The business can save on their cost of hiring special accountants and this proves more savings than the practice of savings.
3. They consume less time and energy: The preservation of a two-pronged investment system may indicate an increase in business concerns and may therefore result in incomplete and easy record keeping.
They can meet a customized business requirement: An entity can store account books according to its needs and business needs and therefore complete record-keeping gives it the ability to keep account books as a single entity.
3. Distinguish between a statement of affairs and a balance sheet.
Ans: The difference between the statement of affairs and balance sheet are as following:
Basis of difference | Statement of Affairs | Balance Sheet |
Purpose | It is prepared for the purpose knowing the capital of the business on any particular date. | It is prepared to achieve the true and fair view of the business on any particular date. |
Method of accounting | It is prepared where the accountants follow the single entry system of accounting. | The preparation of the balance sheet is done under the double entry system of accounting. |
Lapses | Lapses if any during the process of accounting cannot be identified and hence the opportunity of making corrections accordingly is | Lapses and mistakes can be easily identified and corrections can be easily made if the asset and the liability sides mismatch with each |
Authenticity | It does not depict authentic information as the systematic method of accounting is not followed. | It depicts the authentic information and the position of the business as it is prepared by undergoing the systematic procedure of accounting. |
4. What practical difficulties are encountered by a trader due to the incompleteness of accounting records?
Ans: The practical difficulties you are experiencing due to incomplete financial records are as follows:
1. It does not show accurate details as the accuracy of accounting is not available.
Specific details of the profit or loss of a business cannot be obtained in cases such as not all expenses and unregistered amounts.
3. Tax authorities do not accept the care of a single accounting system as the correct image of the business cannot be assessed.
4. Failures to exist during the accounting process can be identified and therefore the business is less likely to make the necessary adjustments.
5. Adjustments to the Balance Sheet cannot be done because it does not follow a double-income revenue plan and is therefore prepared a News Statement that does not reflect the correct and accurate results of financial performance of the business.
5. What is meant by a ‘statement of affairs’? How can the profit or loss of a trader be ascertained with the help of a statement of affairs?
Ans: A Statement of Statement A statement describing the assets and liabilities of any business following a single accounting system. The news release described the capital in a statement as an asset in excess of debt. Profit or loss check required to do business in the capital for the current financial year and the previous financial year. Therefore in cases where the capital of the previous year is less than the capital earned at the current value than the business in the area of profit; on the other hand where the current capital o is less than last year’s capital, there is a business suffering from losses. The following is the Performa of the News Statement:
Liabilities | Amount | Amount | Assets | Amount | Amount |
Capital (Balancing figure) Outstanding expenses Bills Payable Creditors Loan | Building & land Furniture Machinery Stock Debtors Cash in hand Cash at bank Capital Deficiency Balance fig. |
Particular | Amount | Amount |
Capital at the beginning of the year Add: Additional capital introduced Less: Drawings Profit / (Loss) during the year( Bal. fig) Capital at the end of the Year |
6. Is it possible to prepare the profit and loss account and the balance sheet from the incomplete book of accounts kept by a trader? Do you agree? Explain.
Ans: Yes it is possible for the Profit and Loss account and Balance sheet from incomplete in the background when converting to double entry. This is because some of the features of one entry system are not recorded and are inserted twice the system requires proper accounting for the entire business
transactions to convert you to a double-entry system.
The following steps are followed for this modification:
1. Prepare an opening statement and find out Unlocking Money.
2. Prepare the Cashbook and get the opening then closing currency estimates.
3. Set up a Total Debtors account and get the missing figure.
4. Similarly set up an All Debtors Account then find the missing figure.
5. The final step requires final accounting for the final account after which large scales are determined. So with statistical assistance obtained, correction of Set up a trading account with profits and losses and Balance a sheet can be made.
7. Explain how the following may be ascertained from incomplete records:
a) Opening capital and closing capital
Ans: Opening Capital and the closing fee are determined after opening and closing adjustment news statements. Capital Statement Stories are shown as an asset over assets.
Liabilities | Amt. Unit | Amt. unit | Assets | Amt. unit | Amt. unit |
Capital (Balancing figure) Outstanding expenses Bills Payable Sundry Creditors Loan | Land & Building Furniture Office machinery Stock Debtors Cash in hand Cash at bank Capital Deficiency(Bal.fi g) |
* In cases where the debt is higher than the assets, the capital comes from the property side of the Statement of News.
b) Credit sales ad credit purchases
Ans: Credit Buying and Credit Buying: Credit Sales and business credit purchases are not recorded on incomplete records.
c) Payments to creditors and collection from debtors
Ans: Payment to creditors and debt collectors Debtors' payments are based on the arrangement of the full Loan account. Similarly, the determination of debt collectors is determined by the adjustment of the total number of creditors.
To Compute Credit Sales
Total Debtors A/c
Particular | Amt. unit | Amt. unit | Particular | Amt. Unit | Amit. Unit |
To Balance b/d To Credit sales A/c (Bal. fig) | By Discount allowed By Sales returns By Bad debts By Cash/Bank collected (Bal. fig) By Balance c/d |
To compute credit purchases
Total Creditors Account
Particular | Amt. Unit | Amt. Unit | Particular | Amt. Unit | Amt. Unit |
To Returns outward To Discount Received To Bank/Cash paid(Bal. fig) To Balance c/d | Balance b/d By Credit Purchases (Bal. fig) |
d)Closing balance of cash.
Ans: Closing balance of Cash :
Cash Book is prepared to ascertain the closing cash balance.
Particulars | Amount Rs. | Particular | Amount Rs. | ||
Balance b/d Debtors A/c Sales A/c | Rent A/c Purchases A/c Stationery expenses A/c Creditors A/c Salary A/c Rent A/c Balance c/d |
8. Following information is given below prepare the statement of profit or loss:
Rs.
Capital at the end of the year 5,00,000
Capital at the beginning of the year 7,50,000
Drawings made during the period 3,75,000
Additional capital introduced 50,000
Ans: Statement of Profit or Loss
Particular | Amount | Amount |
Capital at the beginning of the year Add: Additional capital Introduced Less: Drawings Profit / (Loss) during the year( Bal. fig) Capital at the end of the year | 750000 50000
- 375000 75000 500000 |
9. Manveer started his business on April 01, 2016, with a capital of Rs. 4,50,000 . On March 31, 2017, his position was as under:
Rs.
Cash 99000
Bills Receivable 75000
Plant 48000
Land and Building 1,80,000
Furniture 50000
He owned Rs. 45000 from his friend Susheel on that date. He withdrew Rs. 8000 per month for his household purposes. Ascertain his profit or loss for this year ended March 31, 2017
Ans: Statement of Affairs as on 31.03.2017
Liabilities | Amt. unit | Amt. Unit | Assets | Amt. Unit | Amt. Unit |
Closing Capital (Bal. fig) Loan | 407000 4500 452000 | Land & Building Plant Furniture Bills receivable Cash | 180000 48000 5000 75000 99000 452000 |
Particular | Amount | Amount |
Capital at the beginning of the year Add: Additional capital introduced Less: Drawings Profit / (Loss) during the year( Bal. fig) Capital at the end of the year | 450000 -96000 53000 407000 |
10. From the information given below to ascertain the profit for the year:
Rs.
Capital at the beginning of the year 70,000
Additional capital was introduced during the year 17,500
Stock 59,500
Sundry debtors 25,900
Business premises 8,600
Machinery 2,100
Sundry creditors 33,400
Drawings made during year 26,400
Ans:
Statement of Affairs
Liabilities | Amt. unit | Amt. Unit | Assets | Amt. unit | Amt. Unit |
Closing Capital (Bal. fig) Sundry Creditors | 62700 33400 96100 | Business premises Machinery Stock Sundry Debtors | 8600 2100 59500 25900 96100 |
Statement of Profit or Loss
Particular | Amount | Amount |
Capital at the beginning of the year Add: Additional capital introduced Less: Drawings Profit / (Loss) during the year( Bal. fig) Capital at the end of the year | 70000 17500 -26400 1600 62700 |
11. From the following information, calculate capital at the beginning:
Rs.
Capital at the end of the year 4,00,000
Drawings made during the year 60,000
Fresh capital introduced during the year 1,00,000
Profit of the current year 80,000
Ans:
Particular | Amount | Amount |
Capital at the beginning of the year (Bal. fig) Add: Additional capital introduced 100000 Less: Drawings Profit / (Loss) during the year( Bal. fig) Capital at the end of the Year | 280000 100000 -60000 80000 400000 |
12. Following information is given below: calculate the closing capital
April.01, March 31
2016 Rs 2017Rs
Creditors 5,000 30,000
Bills 10,000 –
payable
Loan – 50,000
Bills
Receivable 30,000 50,000
Stock 5,000 30,000
Cash 2,000 20,000
Calculation of profit or loss and ascertainment of the statement of affairs at the end of the year (Opening Balance is given)
Ans: Statement of Affairs as on 01.04.16
Liabilities | Amt .Unit | Amt. Unit | Assets | Amt. Unit | Amt. Unit |
Opening Capital (Bal. fig) Sundry Creditors Bills Payable | 22000 5000 10000 37000 | Stock Bills Receivable Cash | 5000 30000 2000 37000 |
Statement of Affairs as on 31.03.17
Liabilities | Amt. Unit | Amt. Unit | Assets | Amt. Unit | Amt. Unit |
Closing Capital (Bal. fig) Sundry Creditors Bills Payable Loan | 20000 30000 50000 100000 | Stock Bills Receivable Cash | 30000 50000 20000 100000 |
Statement of Profit or Loss
Particular | Amount | Amount |
Capital at the beginning of the year Add: Additional capital introduced Less: Drawings Profit / (Loss) during the year( Bal. fig) Capital at the end of the year | 22000 -2000 200000 |
13. Mrs Anu started a firm with a capital of Rs. 4,00,000 on 1st October 2016. She borrowed from her friends a sum of Rs. 1,00,000 @10% per annum (interest paid) for business and bought a further amount to capital Rs. 75,000 on March 31, 2017, her position was :
Rs.
Cash 30,000
Stock 4,70,000
Debtors 3,50,000
Creditors 3,00,000
Ans: Statement of Affairs as on 31.03.17
Liabilities | Amt. Unit | Amt. Unit | Assets | Amt. Unit | Amt. Unit |
Closing Capital (Bal. fig) Sundry Creditors Loan | 450000 30000 10000 850000 | Stock Debtors Cash | 470000 350000 30000 850000 |
Statement of Profit or Loss
Particular | Amount | Amount |
Capital at the beginning of the year Add: Additional capital introduced Less: Drawings (8000*6 months) Profit / (Loss) during the year( Bal. fig) Capital at the end of the year | 400000 75000 -48000 23000 450000 |
14. Mr.Arnav does not keep proper records of his business he provided the following information, you are required to prepare a statement showing the profit or loss for the year.
Rs
Capital at the beginning of the year 15,00,000
Bills receivable 60,000
Cash in hand 80,000
Furniture 9,00,000
Building 10,00,000
Creditors 6,00,000
Stock in trade 2,00,000
Further capital introduced 3,20,000
Drawings made during the period 80,000
Ascertainment of the statement of affairs at the beginning and at the end of the year and calculation of profit or loss.
Ans: Statement of Affairs as on 31.03.17
Liabilities | Amt. | Amt. | Assets | Amt. | Amt. |
Closing Capital (Bal. fig) Sundry Creditors | 1640000 600000 2240000 | Buildings Furniture Stock Bill Receivable Cash | 1000000 900000 200000 60000 80000 2240000 |
Statement of Profit or Loss
Particular | Amount | Amount |
Capital at the beginning of the year Add: Additional capital introduced Less: Drawings Profit / (Loss) during the year( Bal. fig) Capital at the end of the year | 1500000 320000 -80000 -10000 1640000 |
15. Mr Akshat keeps his books on incomplete records following information is given below:
April 01, March 31
2016 2017
Cash in hand 1,000 1,500
Cash at bank 15,000 10,000
Stock 1,00,000 95,000
Debtors 42,500 70,000
Business premises 75,000 1,35,000
Furniture 9,000 7,500
Creditors 66,000 87,000
Bills payable 44,000 58,000
During the year he withdrew Rs 45,000 and introduced Rs 25,000 as further capital in the business to compute the profit or loss of the business.
Ans: Statement of Affairs as on 01.04.16
Liabilities | Amount | Amount | Assets | Amount | Amount |
Opening Capital (Bal. fig) Sundry Creditors Bills Payable | 132500 66000 44000 242500 | Business Premises Furniture Stock Debtors Cash in hand Cash at bank | 75000 9000 100000 42500 1000 15000 242500 |
Statement of Affairs as on 01.04.16
Liabilities | Amount | Amount | Assets | Amount | Amount |
Closing Capital (Bal. fig) Sundry Creditors Bills Payable | 174000 87000 58000 319000 | Business Premises Furniture Stock Debtors Cash in hand Cash at Bank | 135000 7500 95000 70000 1500 10000 319000 |
Statement of Profit or Loss
Particular | Amount | Amount |
Capital at the beginning of the year Add: Additional capital introduced Less: Drawings Profit / (Loss) during the year( Bal. fig) Capital at the end of the year | 132500 25000 -45000 61500 174000 |
16. Gopal does not keep proper books of account. The following information is given below:
April.1 March.
2016 31, 2017
Cash in hand 18,000 12,000
Cash at bank 1,500 2,000
Stock in trade 80,000 90,000
Sundry debtors 36,000 60,000
Sundry creditors 60,000 40,000
Loan 10,000 8,000
Office equipments 25,000 30,000
Land and Building 30,000 20,000
Furniture 10,000 10,000
During the year he introduced Rs 20,000 and withdrew Rs 12,000 from the business. Prepare the statement of profit or loss on the basis of the given information
Ans: Statement of Affairs as on 01.04.16
Liabilities | Amount | Amount | Asset | Amount | Amount |
Opening Capital (Bal. fig) Sundry Creditors Loan | 130500 60000 10000 200500 | Land & Building Furniture Office equipment Stock Debtors Cash in hand Cash at bank | 30000 10000 25000 80000 36000 18000 15000 200500 |
Statement of Affairs as on 01.04.16
Liabilities | Amount | Amount | Assets | Amount | Amount |
Closing Capital (Bal. fig) Sundry Creditors Loan | 176000 40000 8000 224000 | Land & Building Furniture Office equipment Stock Debtors Cash in hand Cash at Bank | 20000 10000 30000 90000 60000 12000 2000 224000 |
Statement of Profit or Loss
Particular | Amount | Amount |
Capital at the beginning of the year Add: Additional capital introduced Less: Drawings Profit / (Loss) during the year( Bal. fig) Capital at the end of the year | 130500 20000 -12000 37500 176000 |
17. Mr Muneesh maintains his books of accounts from incomplete records. His books provide the information:
April. 01 March. 31,
2016 2017
Cash 1,200 1,600
Bills receivable – 2,400
Debtors 16,800 27,200
Stock 22,400 24,400
Investment – 8,000
Furniture 7,500 8,000
Creditors 14,000 15,200
He withdrew Rs 300 per month for personal expenses. He sold his investment of Rs 16,000 at 2% premium and introduced that amount into business.
Ans: Statement of Affairs as on 01.04.16
Liabilities | Amount | Amount | Asset | Amount | Amount |
Opening Capital (Bal. fig) Sundry Creditors | 47900 | Furniture Investment Stock Debtors Cash in hand | 7500 2240 1680 1200 47900 |
Statement of Affairs as on 31.03.17
Liabilities | Amount | Amount | Assets | Amount | Amount |
Closing Capital (Bal. fig) Sundry Creditors | 56400 1520 71600 | Furniture Investment Stock Debtors Cash in hand Bills receivable | 8000 8000 24400 27200 1600 2400 71600 |
Statement of Profit or Loss
Particular | Amount | Amount |
Capital at the beginning of the year Add: Additional capital introduced * Less: Drawings Profit / (Loss) during the year( Bal. fig) Capital at the end of the year | 33900 16320 -3600 9780 56400 |
18. Mr Girdhari Lal does not keep full double-entry records. His balance as on
January 01, 2006, is as.
Liabilities Sundry creditors Bills payable Capital | Amount Rs. 35,000 15,000 40,000 90,000 | Assets Cash in hand Cash at bank Sundry debtors Stock Furniture Plant | Amount Rs. 5,000 20,000 18,000 22,000 8,000 17,000 90,000 |
His position at the end of the year is :
Rs.
Cash in hand 7,000
Stock 8,600
Debtors 23,800
Furniture 15,000
Plant 20,350
Bills payable 20,200
Creditors 15,000
He withdrew Rs. 500 per month out of which to spent Rs. 1,500 for business
purpose. Prepare the statement of profit or loss.
Ans: Statement of Affairs as on 31.03.17
Liabilities | Amount | Amount | Assets | Amount | Amount |
Closing Capital (Bal. fig) Bills Payable Sundry Creditors | 39550 20200 1500 74750 | Furniture Plant Stock Debtors Cash in hand | 15000 20350 8600 23800 7000 74750 |
Statement of Profit or Loss
Particular | Amount | Amount |
Capital at the beginning of the year Add: Additional capital introduced * 0 Less: Drawings - (500*12)-1500 Profit / (Loss) during the year( Bal. fig) Capital at the end of the year | 40000 4500 4050 39550 |
19. Mr Ashok does not keep his books properly. The following information is available from his books.
April. 01, March.
2016 31, 2017
Sundry creditors 45,000 93,000
Loan from wife 66,000 57,000
Sundry debtors 22,500 –
Land and Building 89,600 90,000
Cash in hand 7,500 8,700
Bank overdraft 25,000 –
Furniture 1,300 1,300
Stock 34,000 25,000
During the year Mr Ashok sold his private car for Rs 50,000 and invested this amount into the business. He withdrew from the business Rs 1,500 per month up to October 31, 2016, and thereafter Rs 4,500 per month as drawings. You are required to prepare the statement of profit or loss and statement of the affair as of March 31, 2017.
Ans: Statement of Affairs as on 01.04.16
Liabilities | Amount | Amount | Assets | Amount | Amount |
Opening Capital (Bal. fig) Bank OD Loan Sundry Creditors | 189000 25000 66000 45000 154900 | Land and Building Furniture Stock Debtors Cash in Hand | 896700 1300 34000 22500 7500 154900 |
Statement of Affairs as on 31.03.17
Liabilities | Amount | Amount | Assets | Amount | Amount |
Loan Sundry Creditors | 57000 93000 150000 | Land and building Furniture Stock Debtors Cash in hand Closing Capital (Bal. fig) | 90000 1300 25000 8700 25000 150000 |
Statement of Profit or Loss
Particular | Amount | Amount |
Capital at the beginning of the year Add: Additional capital introduced Less: Drawings * Profit / (Loss) during the year( Bal. fig) Capital at the end of the year | 18900 50000 -33000 -60900 25000 |
20. Krishna Kulkarni has not kept proper books of accounts prepare the statement of profit or loss for the year ending December 31, 2011, from the following information:
April. 01, March. 31,
2016 Rs 2017Rs
Cash in hand 10,000 36,000
Debtors 20,000 80,000
Creditors 10,000 46,000
Bills receivable 20,000 24,000
Bills payable 4,000 42,000
Car – 80,000
Stock 40,000 30,000
Furniture 8,000 48,000
Investment 40,000 50,000
Bank balance 1,00,000 90,000
The following adjustments were made:
(a) Krishna withdrew cash Rs 5,000 per month for private
use.
(b) Depreciation @ 5% on car and furniture @10%.
(c) Outstanding Rent Rs 6,000.
(d) Fresh Capital introduced during the year Rs 30,000.
Ans:
Books of Krishna Kulkarni
Statement of Affairs as of April 01, 2016
Liabilities | Amount | Assets | Amount |
Creditors Bills Payable Capital (Balancing figure) | 10000 4000 224000 238000 | Cash in Hand Debtors Bills Receivable Stock Furniture Investment Cast at Bank | 10000 20000 20000 40000 8000 40000 100000 238000 |
Statement of Affairs as of March 31, 2017
Liabilities | Amount | Assets | Assets |
Creditors Bills Payable 42,000 Outstanding Expenses Capital (Balancing | 46000 42000 6000 335200 429200 | Cash in Hand Debtors Bills Receivable Car 80,000 Less: Depreciation 5% (4,000) Stock Furniture 48,000 Less: Depreciation 10% 4,800 Investment Cash at Bank | 36000 80000 24000 76000 30000 43200 50000 90000 429200 |
Statement of Profit and Loss
Particular | Amount |
Capital on March 31, 2017 Add: Drawings made during the year (Rs 5,000 × 12 months) Less: Capital on April 01, 2016 Less: Fresh capital introduced during the year Profit earned during the year 2017 | 335200 60000 224000 30000 141200 |
21. M/s Saniya Sports Equipment does not keep proper records. From the following information find out profit or loss and also prepare a balance sheet for the year ended.
March 31, April. 31,
2016 Rs 2017 Rs
Cash in hand 6,000 24,000
Bank overdraft 30,000 –
Stock 50,000 80,000
Sundry creditors 26,000 40,000
Sundry debtors 60,000 1,40,000
Bills payable 6,000 12,000
Furniture 40,000 60,000
Bills receivable 8,000 28,000
Machinery 50,000 1,00,000
Investment 30,000 80,000
Drawing Rs 10,000 p.m. for personal use, fresh capital introduces during the year Rs 2,00,000. Bad debts of Rs2,000 and a provision of 5% is to be made on debtors outstanding salary Rs 2,400, prepaid insurance Rs 700, depreciation charged on furniture and machine @ 10% p.a.
Ans: Statement of Affairs as on 01.04.16
Liabilities | Amount | Amount | Assets | Amount | Amount |
Opening Capital (Bal. fig) Bank OD Bills payable Sundry Creditors | 182000 30000 60000 26000 244000 | Furniture Machinery Investment Stock Bills receivable Debtors Cash in hand Cash at Bank | 40000 50000 30000 50000 8000 60000 6000 244000 |
Statement of Affairs as on 31.03.17
Liabilities | Amount | Amount | Assets | Amount | Amount |
Closing Capital (Bal. fig) Bills payable Sundry Creditors Outstanding Salary | 433400 12000 40000 2400 487800 | Furniture Less: Depreciation @ 10% Machinery Less: Depreciation @ 10% Investment Stock Bills receivable Debtors Less: Bad debts Less: Provision for bad debts Cash in hand Cash at bank Prepaid Insurance | 60000 6000 100000 10000 14000 2000 6900 | 54000 90000 80000 80000 28000 131100 24000 700 487800 |
Statement of Profit or Loss
Particular | Amount | Amount |
Capital at the beginning of the year Add: Additional capital introduced Less: Drawings (10000*12) Profit / (Loss) during the year( Bal. fig Capital at the end of the year | 182000 200000 -120000 171400 433400 |
22. From the following information calculate the amount to be
paid to creditors:
Rs.
Sundry creditors as of March 31, 2005 1,80,425
Discount received 26,000
Discount allowed 24,000
Return outwards 37,200
Return inward 32,200
Bills accepted 1,99,000
Bills endorsed to creditors 26,000
Creditors as on April 01, 2006 2,09,050
Total purchases 8,97,000
Cash purchases 1,40,000
Ans: Amount to be paid to creditors
Liabilities | Amount | Amount | Assets | Amount | Amount |
To Returns outward To Discount Received To Bills accepted To B/R (endorsed to creditors) To Balance c/d To Cash /Bank (Bal. fig) | 37200 26000 199000 26000 180425 497425 966050 | Balance b/d By Credit Purchases (897000- 140000) | 209050 757000 966050 |
23. Find out the credit purchases from the following:
Rs.
Balance of creditors April 01, 2004 45,000
Balance of creditors March 31, 2005 36,000
Cash paid to creditors 1,80,000
Cheque issued to creditors 60,000
Cash purchases 75,000
Discount received from creditors 5,400
Discount allowed 5,000
Bills payable given to creditors 12,750
Return outwards 7,500
Bills payable dishonoured 3,000
Bills receivable endorsed to creditors 4,500
Bills receivable endorsed to creditors dishonoured 1,800
Return inwards 3,700
Ans: To compute credit purchases
Liabilities | Amount | Amount | Assets | Amount | Amount |
To Returns outward To Discount received To Bills accepted To B/R (endorsed to creditors) To Cash To Bank To Balance c/d | 7500 5400 12750 4500 180000 60000 36000 306150 | Balance b/d By Bills Payable dishonoured By B/R endorsed dishonoured By Credit Purchases (Bal. fig) | 45000 3000 1800 256350 306150 |
24. From the following information calculate total purchases.
Rs.
Creditors Jan. 01, 2005 30,000
Creditors Dec. 31, 2005 20,000
Opening balance of Bills payable 25,000
The closing balance of Bills payable 35,000
Cash paid to creditors 1,51,000
Bills discharged 44,500
Cash purchases 1,29,000
Return outwards 6,000
Ans: Creditors A/c
Liabilities | Amount | Amount | Assets | Amount | Amount |
To Returns Outward To Discount Received To Bills accepted To B/R (endorsed to creditors) To Cash | 6000 54500 151000 20000 231500 | Balance b/d By Bills Payable Dishonoured By B/R endorsed dishonoured By Credit Purchases (Bal. fig) | 30000 201500 231500 |
Bills Payable A/c
Particular | Amount | Amount | Particular | Amount | Amount |
To Cash (Bills discharged) To Balance c/d | 44500 35000 79500 | Balance b/d By Creditors (Bills accepted) (Balancing figure) | 25000 54500 79500 |
25. Rs.
Opening creditors 60,000
Cash paid to creditors 30,000
Closing creditors 36,000
Returns Inward 13,000
Bill matured 27,000
Bill dishonoured 8,000
Purchases return 12,000
Discount allowed 5,000
Calculate credit purchases during the year.
Ans: Creditors A/c
Particular | Amount | Amount | Particular | Amount | Amount |
To Purchase return To Bills accepted To Cash To Balance c/d | 12000 27000 30000 36000 105000 | Balance b/d By Bills Payable dishonoured By Credit Purchases | 60000 8000 37000 105000 |
26. From the following, calculate the number of bills accepted during the year.
Rs.
Bills payable as on April 01, 2005 1,80,000
Bills payable as of March 31, 2006 2,20,000
Bills payable dishonoured during the year 28,000
Bills payable honoured during the year 50,000
Ans: Bills Payable A/c
Particular | Amount | Amount | Particular | Amount | Amount |
To Cash (Bills discharged) To Creditors(Bills dishonoured) To Balance c/d | 50000 28000 22000 298000 | Balance b/d By Creditors (Bills accepted) (Balancing figure) | 180000 118000 298000 |
27. Find out the number of bills matured during the year on the basis of information given below ;
Rs.
Bills payable dishonoured 37,000
The closing balance of Bills payable 85,000
Opening balance of Bills payable 70,000
Bills payable accepted 90,000
Cheque dishonoured 23,000
Ans: Bills Payable A/c
Particular | Amount | Amount | Particular | Amount | Amount |
To Creditors (Bills dishonoured) To Balance c/d To Cash (Bills discharged) Bal. fig | 37000 85000 38000 160000 | Balance b/d By Creditors (Bills accepted) | 70000 90000 160000 |
28. Prepare the bills payable account from the following and find out missing
figure if any :
Rs.
Bills accepted 1,05,000
Discount received 17,000
Purchases return 9,000
Return inwards 12,000
Cash paid to accounts payable 50,000
Bills receivable endorsed to creditor 45000
Bills dishonoured 17,000
Bad debts 14,000
Balance of accounts payable (closing) 85,000
Credit purchases 2,15,000
Ans: Bills Payable A/c
Particular | Amount | Amount | Particular | Amount | Amount |
To Creditors (Bills dishonoured) To Cash /Bank (Bal. fig) | 17000 88000 105000 | By Creditors (Bills accepted) | 105000 105000 |
29. Calculate the number of bills receivable during the year.
Rs.
Opening balance of bills receivable 75,000
Bill dishonoured 25,000
Bills collected (honoured) 1,30,000
Bills receivable endorsed to creditors 15,000
The closing balance of bills receivable 65,000
Ans: Bills Receivable A/c
Particular | Amount | Amount | Particular | Amount | Amount |
To Balance b/d To Debtors (Bills receivable received) | 75000 160000 235000 | By Cash (Bills collected) By Creditors (Endorsed) By Debtors (bills dishonoured) By Balance c/d | 130000 15000 25000 65000 235000 |
30. From the details given below, find out the credit sales and total sales.
Rs.
Opening debtors 45,000
Closing debtors 56,000
Discount allowed 2,500
Sales return 8,500
Irrecoverable amount 4,000
Bills receivables received 12,000
Bills receivable dishonoured 3,000
Cheque dishonoured 7,700
Cash sales 80,000
Cash received from debtors 2,30,000
Cheque received from debtors 25,000
Ans: Bills Receivable A/c
Particular | Amount | Amount | Particular | Amount | Amount |
To Balance b/d To Debtors (Bills receivable received) | 120000 150000 270000 | By Cash (Bills collected) By Creditors (Endorsed) By Debtors (bills dishonoured) By Balance c/d | 185000 22800 11500 50700 270000 |
31. Rs.
Opening balance of debtors 1,80,000
Opening balance of bills receivable 55,000
Cash sales made during the year 95,000
Credit sales made during the year 14,50,000
Return inwards 78,000
Cash received from debtors 10,25,000
Discount allowed to debtors 55,000
Bills receivable endorsed to creditors 60,000
Cash received (bills matured) 80,500
Irrecoverable amount 10,000
The closing balance of bills receivable on Dec. 31, 2005 75,500
Ans: Debtors A/c
Particular | Amount | Amount | Particular | Amount | Amount |
To Balance b/d bills receivable (dishonoured) To Bank (cheque dishonoured) To Credit sales A/c (Bal. fig) | 45000 3000 7700 282300 338000 | By Discount allowed By Sales returns By Bad debts By Bills receivable (received) By Cash By Bank By Balance c/d | 2500 8500 4000 12000 230000 25000 56000 338000 |
TOTAL SALES = CASH SALES + CREDIT SALES
=80000+282300
=362300
32. From the following information, prepare the bills receivable account and total debtors account for the year ended December 31, 2005.
Opening balance of debtors 1,80,000
Opening balance of bills receivable 55,000
Cash sales made during the year 95,000
Credit sales made during the year 14,50,000
Return inwards 78,000
Cash received from debtors 10,25,000
Discount allowed to debtors 55,000
Bills receivable endorsed to creditors 60,000
Cash received (bills matured) 80,500
Irrecoverable amount 10,000
Closing balance of bills receivable on Dec. 31, 2005 75,500
Ans: Debtors A/c
Particular | Amount | Amount | Particular | Amount | Amount |
To Balance b/d To Credit sales A/c | 180000 1450000 1630000 | By Discount allowed By Sales returns By Bad debts By Bills receivable (received) By Cash /Bank By Balance c/d (Bal. fig) | 55000 78000 10000 161000 1025000 301000 1630000 |
Bills Receivable A/c
Particular | Amount | Amount | Particular | Amount | Amount |
To Balance b/d To Debtors (Bills receivable received) | 55000 161000 216000 | By Cash (Bills collected) By Creditors (Endorsed) By Balance c/d | 80500 60000 75500 216000 |
33. Prepare the suitable accounts and find out the missing figure if any.
Rs.
Opening balance of debtors 14,00,000
Opening balance of bills receivable 7,00,000
Closing balance of bills receivable 3,50,000
Cheque dishonoured 27,000
Cash received from debtors 10,75,000
Cheque received and deposited in the bank 8,25,000
Discount allowed 37,500
Irrecoverable amount 17,500
Returns inwards 28,000
Bills receivable received from customers 1,05,000
Bills receivable matured 2,80,000
Bills discounted 65,000
Bills endorsed to creditors 70,000
Ans: Debtors A/c
Particular | Amount | Amount | Particular | Amount | Amount |
To Balance b/d To Bank (Cheque dishonoured) To Bills receivable (bills dishonoured) To Credit sales A/c (Bal. fig) | 1400000 27000 40000 621000 2088000 | By Discount allowed By Sales returns By Bad debts By Bills receivable By Cash By Bank | 37500 28000 17500 105000 1075000 825000 2088000 |
Bills Receivable A/c
Particular | Amount | Amount | Particular | Amount | Amount |
To Balance b/d To Debtors (Bills receivable received) | 700000 105000 805000 | By Cash (Bills collected) By Bank (discounted) By creditors (endorsed) By debtors (bills dishonoured) By Balance c/d | 280000 65000 70000 40000 350000 805000 |
34. From the following information ascertain the opening balance of sundry
debtors and closing balance of sundry creditors.
Rs.
Opening stock 30,000
Closing stock 25,000
Opening creditors 50,000
Closing debtors 75,000
Discount allowed by creditors 1,500
Discount allowed to customers 2,500
Cash paid to creditors 1,35,000
Bills payable accepted during the period 30,000
Bills receivable received during the period 75,000
Cash received from customers 2,20,000
Bills receivable dishonoured 3,500
Purchases 2,95,000
The rate of gross profit is 25% on selling price and out of the total sales
Rs. 85,000 was for cash sales.
Ans: Sundry Debtors A/c
Particular | Amount | Amount | Particular | Amount | Amount |
To Balance b/d (Bal. fig) To Bills receivable (bills dishonoured) To Credit sales A/c (WN 1) | 54000 3500 315000 372000 | By Discount allowed By Bills receivable (received) By Cash By Balance c/d | 2500 75000 220000 75000 372000 |
Sundry Creditors A/c
Particular | Amount | Amount | Particular | Amount | Amount |
To Discount received To Bills accepted To Cash To Balance c/d (Bal. fig) | 1500 30000 135000 178500 345000 | Balance b/d By Credit Purchases | 50000 295000 345000 |
WN1 : To know credit sale
Total Sales = Cash
Sales + Credit Sales
Total Sales = 85000+ Credit sales If Profit is 25% on SP , then cost
of goods sold is 75%
Cost of goods sold = (Opening stock +purchases- closing stock)
=(30000+295000- 25000)
=300000
If Cost of goods sold is 75 % = 300000 Then , 100 %
=300000/75*100 Sales (100 % )
= 400000
Credit Sales = Total sales - Cash sales
=400000-85000
=315000
35. Mrs Bhavana keeps his books by the Single Entry System. You’re required to prepare final accounts of her business for the year ended December 31, 2005. Her records relating to cash receipts and cash payments for the above period showed the following particulars :
Ans: Summary of Cash
Receipts | Amount | Payment | Amount |
Opening balance of cash Further capital Received from debtors | 12000 20000 120000 152000 | Paid to creditors Business expenses Wage paid Bhavana’s drawing Dec. 31, 2005 Cash in hand | 53000 12000 30000 15000 7000 152000 |
Bills Payable A/c
Particular | Amount | Amount | Particular | Amount | Amount |
To Cash (Bills discharged) To Balance c/d | 44500 35000 79500 | Balance b/d By Creditors (Bills accepted) (Balancing figure) | 25000 54500 79500 |
Sundry Debtors A/c
Particular | Amount | Amount | Particular | Amount | Amount |
To Balance b/d To Credit sales A/c (Bal. fig) | 55000 15000 205000 | By Cash By Balance c/d | 120000 85000 205000 |
Sundry Creditors A/c
Particular | Amount | Amount | Particular | Amount | Amount |
To Cash To Balance c/d | 53000 29000 82000 | Balance b/d By Credit Purchases (Bal. fig) | 22000 60000 82000 |
Statement of Affairs as on 01.04.16
Liabilities | Amount | Amount | Assets | Amount | Amount |
Opening Capital (Bal. fig) Sundry Creditors | 500000 22000 522000 | Land& buildings Plant Machinery Investment Stock Debtors Cash in hand | 25000 100000 50000 20000 35000 55000 12000 522000 |
Trading Account for the year ended 31.03.2017
Particular | Amount | Amount | Particular | Amount | Amount |
Opening Stock Purchases Wages paid Gross profit | 35000 60000 30000 95000 220000 | Sales Closing stock | 150000 70000 220000 |
Profit & Loss account for the year ended 31.03.2017
Particular | Amount | Amount | Particular | Amount | Amount |
Business expenses Depreciation on Plant @ 10% Building @ 10% Machinery @ 5% Provision for bad debts Net Profit | 10000 25000 2500 | 12000 37500 4250 41250 95000 | Gross Profit | 95000 95000 |
Statement of Affairs as on 31.03.17
Liabilities | Amount | Amount | Assets | Amount | Amount |
Capital Add: Further capital Add: Net profit Less: Drawings Sundry Creditors | 500000 20000 41250 15000 | 546250 29000 575250 | Land & Building Less: Depreciation @ 10% Machinery Less: Depreciation @ 5% Plant Less: Depreciation @ 10% Investment Stock Debtors Less: Provision for bad debts Cash Bank | 250000 25000 50000 2500 100000 10000 85000 -4250 | 225000 47500 90000 20000 70000 80750 7000 3500 575250 |
NCERT Accountancy Class 11 Solutions
What Does Accountancy Mean?
Accountancy is a science as well as an art of chronological articulation of business activities. It is the systematic process flow of all the operations related to a business that involves the gain or loss of revenue. It also involves recognizing, distinguishing, documenting, and analyzing all those activities concerned with the profit and loss of the business.
It reflects the financial status of a firm or organization, suggests the ways and means to proceed further, and implements all those decisions that guide the business in the path of earning profits more consistently. All the financial aspects of a firm that could encourage investments and improve the reputation of a business entity. Accountancy principles, theories, and laws are completely explained and streamlined through the topics covered in the Accountancy Class 11 Chapter 11.
Why is Accountancy Needed?
Accountancy is a structured process of recording or keeping a record of all the expenditures incurred and the revenues earned during a stipulated period of time. So, it is required to ascertain the financial status of the firm and to give first-hand information on the potential sources of income as well as the paramount areas that are to be administered to limit the expenses or overheads that may lead to the losses of the business entity.
All such concepts are covered in the NCERT Accountancy Class 11 Solutions Chapter 11. Accountancy is also needed to attract or influence potential investors to invest in the concerned business activity and convince them by exhibiting a documented proof of the profits earned by the organization. Accountancy Class 11 Chapter 11 will help students to understand these concepts more effectively.
So, the accountancy process is the most integral aspect of business activity and needs to be inculcated by every organization that works to earn profits. Therefore, it is a very primary need to comprehend the state of affairs of every transaction and direct efforts to make them profitable, yielding results.
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What is the Basis of Accounting?
Accountancy and accounting originated from the universally recognized Generally Accepted Accounting Principles which are popularly called GAAP. GAAP refers to those principles that lay the foundation of how the accounting process of a business entity could be implemented according to the given rules, laws, and regulations.
The Accountancy Class 11 Chapter 11 makes a comprehensive study resource on the principles that are to be followed in the process of accounting. It varies according to the location or concerning the country of establishment satisfying the needs of the economic and financial status of the nation and that of the business entity. The NCERT Accountancy Book Class 11 Solutions Chapter 11 gives all the required solutions for various problems in accounting.
A conventional set of rules and guidelines are prescribed by the authorities and these are to be followed and utilized during the process of recording transactions into the concerned books of accounting. The class 11 accounts chapter 11 NCERT Solutions give a proper note of all the necessary steps to solve the problems on accountancy.
Conclusion
Vedantu ch 11 Accounts Class 11 provides a comprehensive structure of accountancy concepts in a clear language. It also provides solved examples from Chapter 11 of Accounts Class 11. Students will get to learn the types of questions that are often repeated in the exams by following these NCERT Solutions. Therefore, these solutions make it easier to secure good marks in the exam.
Solved Example:
Q1: What is the Process Flow in Accounting?
Ans: The accounting process involves a number of steps right from identifying to analyzing the transactions that are recorded. The following are the phases involved in accounting.
1. Identification of all the business activities or transactions
2. Journal Entry or recording transactions in Journal
3. Daily Record of transactions at regular intervals
4. Ascertaining the trial balance
5. Register or activity document
6. Amendment of Journal Book
7. Updating the Financial Statements of the firm
8. Closing accounts or the books for the respective financial year
Fun Fact
The polling or voting mechanism or a referendum for the international movie festival, i.e., Oscars are functioned with the help of Accountants and on the basis of accounting principles. At all stages from nominations to selections, these accountants provide guidance and assess the poll for a particular film.
FAQs on NCERT Solutions for Class 11 Accountancy Chapter 11 - Accounts From Incomplete Records
1. How can the Incomplete Records be defined?
Incomplete Records are those records in which the balance sheet is not present. This is a specific practice of accounting in which a very scarce amount of financial activities of a listed firm are present. This also emphasizes the practice of maintaining accounts on the basis of single-entry bookkeeping only. It is a very general practice in which all the business entities follow a double-entry book-keeping format of accounting. In the Incomplete Records, there is only a provision of single-entry bookkeeping and no scope for double-entry book-keeping leading to very reduced information of the financial status.
2. Why do some organizations use Incomplete Records?
Many of the corporate agencies, listed firms, or organizations use the Incomplete Records process of accountancy in their accounting practices to save the expense that is incurred in a systematic process of accounting. When an organization is functioning with a limited resource, they try to save the revenue to maintain the continuity of the economic activity of the organization. Even the lack of competent and quality accountants and manpower leads to the scope of maintaining Incomplete Records. This is a very common practice among various business entities where there is a very limited scope of information available about their financial status.
3. What is accountancy, according to Chapter 11 of Class 11 Accountancy?
Accountancy can be defined as a subject of Science also as an art of business activities. It is the systematic process flow of all the operations associated with a business that involves the gain or loss of revenue. It reflects the financial status of a firm or organization, suggests the ways to proceed further, and implements all those decisions that guide the business to earn profits more consistently. Chapter 11 of Class 11 Accountancy has a detailed explanation for the various areas related to Accountancy.
4. What is an incomplete record, according to Chapter 11 of Class 11 Accountancy?
Any and every business needs to maintain records and follow a proper system to run them properly. But some businesses do not have a proper double-entry method of accounting. This means that when the businesses are unwilling to invest capital into maintaining proper documentation and only keep the records for personal account transactions, such a record is called incomplete records. This ultimately is disadvantageous for the business or company itself.
5. What is the need for accountancy, according to Chapter 11 of Class 11 Accountancy?
Accountancy can be an integral part of the business industries or the economic development of a Nation. Accountancy is required to determine the financial status of any firm and to offer first-hand information on the potential sources of income also because of the important areas that are to be administered to limit the expenses or overheads which will cause the losses of the business entity. Basically, in simple language, accountancy is necessary to make profits to a firm, business, and ultimately to the country's economy.
6. What is a balance sheet, according to Chapter 11 of Class 11 Accountancy?
Businesses need much record-keeping right from the start. This is because the ultimate motive of a business venture is to earn profits. But there are many times that businesses fail as they start to run in the loss. Therefore, it is important to maintain proper records known as balance sheets so that every step can be monitored and analysed if and when something goes wrong. This can prevent losses in a business. Apart from this, a daily track of the business functioning and steps can be taken whenever deemed necessary.
7. How many questions are there in the exercise of Chapter 11 “Accounts from Incomplete Records” of Class 11 Accountancy?
CBSE Chapter 11 “Accountancy From Class” 11 has an exercise consisting of 34 questions. These questions range from various theoretical aspects like incomplete records, balance sheets, accounting methods, etc. There are also many practical accounting questions that you will need to solve and prepare balance sheets according to the given information. This makes the entire exercise very important since it prepares you entirely for appearing in your exams and getting everything correct from this Chapter. The solutions for these exercises are available free of cost on the Vedantu website and the Vedantu app.