NCERT Solutions for Class 11 Accountancy Chapter 11 Accounts from Incomplete Records

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.

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Access NCERT Solutions for Class 11 Accountancy Chapter 11- Accounts from Incomplete Records part-1

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.


(Image to be added soon)


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 (Frequently Asked Questions)

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.

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