Mahalaxmi Industries Ltd. Kundur issued 15000 equity shares of Rs. 100 each. They were payable as follows:
On Application Rs. 20
On Allotment Rs. 30
On First Call Rs. 25
On Second Call Rs. 25
The company received application for 12000 shares. All the applications were accepted and shares were alloted. The company made both the calls. One Shareholder holding 400 shares failed to pay the final call. His shares were forefeited.
Pass journal entries in the books of Mahalaxmi Industries Ltd. Kundur.
From the following Trial Balance of M/s Sanjay and Keshav, you are required to prepare Trading and Profit and Loss account, for the year ended 31st March 2013 and Balance Sheet as on that date after taking into account the following additional information:
Trial Balance as on 31st March, 2013
| Debit Balances |
Amount (Rs.) |
Credit Balances |
Amount (Rs.) |
| Opening stock |
180000 |
Sales |
525000 |
| Bills receivable |
80000 |
Rent |
22000 |
| Purchase |
240000 |
Bills payable |
78000 |
| Bad debts |
20000 |
Sundry creditors |
100000 |
| Salary and wages |
24000 |
Capital account
Sanjay
Keshav
|
500000
300000
|
| Discount |
9000 |
|
|
| Carriage inward |
12000 |
|
|
| Travelling expenses |
13000 |
|
|
| Cash in hand |
38000 |
|
|
| Furniture |
280000 |
|
|
| Insurance |
12000 |
|
|
| Land and building |
400000 |
|
|
| Postage and telegram |
7000 |
|
|
| Sundry debtors |
210000 |
|
|
| |
1525000 |
|
1525000 |
Additional information:
- Insurance paid in advance Rs. 3,000.
- Depreciation provided on furniture at 10%.
- Salary and wages outstanding Rs. 6,000.
- Rent received in advance Rs. 5,000.
- Closing stock as on 31.03.2013 Rs. 2,00,000.
From the following Trial Balance of M/s Sanjay and Keshav, you are required to prepare Trading and Profit and Loss account, for the year ended 31st March 2013 and Balance Sheet as on that date after taking into account the following additional information:
| Trial Balance as on 31st March 2013 |
| Debit Balances |
Amount (Rs.) |
Credit Balances |
Amount (Rs.) |
| Opening stock |
1,80,000 |
Sales |
5,25,000 |
| Bills receivable |
80,000 |
Rent |
22,000 |
| Purchase |
2,40,000 |
Bills payable |
78,000 |
| Bad debts |
20,000 |
Sundry creditors |
1,00,000 |
| Salary and wages |
24,000 |
Capital account: |
|
| Discount |
9,000 |
Sanjay |
5,00,000 |
| Carriage inward |
12,000 |
Keshav |
3,00,000 |
| Travelling expenses |
13,000 |
|
|
| Cash in hand |
38,000 |
|
|
| Furniture |
2,80,000 |
|
|
| Insurance |
12,000 |
|
|
| Land and building |
4,00,000 |
|
|
| Postage and telegram |
7,000 |
|
|
| Sundry debtors |
2,10,000 |
|
|
| |
15,25,000 |
|
15,25,000 |
Additional information:
- Insurance paid in advance Rs. 3,000.
- Depreciation provided on furniture at 10%.
- Salary and wages outstanding Rs. 6,000.
- Rent received in advance Rs. 5,000.
- Closing stock as on 31.03.2013 Rs. 2,00,000.
Given below is the Trial Balance of M/s. Shailesh and Nilesh as on 31st March, 2016. You are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2016 and Balance Sheet as on that date :
Trial Balance
as on 31.03.2016
| Debit Balances |
Amount |
Credit Balances |
Amount |
| Opening stock |
88,000 |
Capital accounts : |
|
| Purchase |
1,76,000 |
Shailesh |
1,20,000 |
| Wages |
23,500 |
Nilesh |
1,20,000 |
| Salaries (10 months) |
18,000 |
Sundry creditors |
1,03,000 |
| Office expenses |
8,000 |
Bank overdraft |
60,000 |
| Bank charges |
2,600 |
Sales |
3,08,000 |
| Machinery |
90,000 |
Current accounts : |
|
| Land and building |
1,30,000 |
Shailesh |
5,000 |
| Bad debts |
4,000 |
Nilesh |
4,000 |
| Sundry debtors |
82,000 |
|
|
| Electricity charges |
9,900 |
|
|
| Furniture |
43,000 |
|
|
| 8% Debentures (1.10.2015) |
40,000 |
|
|
| Drawings : |
|
|
|
| Shailesh |
3,000 |
|
|
| Nilesh |
2,000 |
|
|
| |
7,20,000 |
|
7,20,000 |
Adjustments :
1. Stock on 31st March, 2016 was valued at market price of Rs 84,000, which was 20% above its cost price.
2. Depreciate machinery at 10% p.a.
3. Create reserve for bad and doubtful debts at 5% on sundry debtors.
4. Provide interest on capital at 8% p.a.
5. Machinery includes purchase of machinery for Rs 40,000 on 1st January, 2016.
A new partner is admitted in the firm for getting additional capital and skill.
Jaya and Maya are partners in a firm sharing profits and losses in the ratio of 2 : 3 respectively. With the help of the trial balance and adjustments given below, you are required to prepare their Trading, Profit and Loss Account for the year ended 31st March, 2013 and the Balance Sheet as on that date :
Trial Balance as on 31st March, 2013
| Debit Balances |
Amount |
Credit Balances |
Amount |
| Purchases |
1,09,000 |
Sundry creditors |
45,600 |
| Insurance |
3,700 |
Sales |
1,94,000 |
| Rent, rates and taxes |
14,600 |
R.D.D. |
2,000 |
| Office expenses |
7,300 |
Commission |
5,500 |
| Land and buildings |
3,00,000 |
Capital A/c’s: |
|
| Plant and machinery |
60,000 |
Jaya |
2,00,000 |
| Furniture |
15,000 |
Maya |
2,50,000 |
| Carriage inwards |
3,700 |
Current A/c’s: |
|
| Sundry debtors |
88,000 |
Jaya |
3,400 |
| Stock (as on 01.04.2012) |
32,800 |
Maya |
9,100 |
| Wages and salaries |
28,600 |
|
|
| Cash in hand |
4,700 |
|
|
| Cash at bank |
40,200 |
|
|
| Drawings A/c’s: |
|
|
|
| Jaya |
500 |
|
|
| Maya |
1,500 |
|
|
| |
7,09,600 |
|
7,09,600 |
Adjustments :
(1) Closing stock was valued at Rs. 22,600.
(2) Purchases include purchase of furniture of Rs .10,000 made on 1st October, 2012.
(3) Depreciate land and buildings at 10% p.a.; plant and machinery at 10% p.a. and furniture at 20% p.a.
(4) Create R.D.D. at 5% on sundry debtors.
From the following Trial Balance of M/s Sanjay and Vijay, you are require to prepare Trading and Profit and Loss A/c for the year ended on 31st March, 2010 and Balance Sheet as on that date after taking into consideration the additional information given below :
|
Trial Balance as on 31st March, 2010
|
|
Particulars
|
Debit
Amount
(Rs)
|
Credit
Amount
(Rs)
|
|
Sundry Debtors and Creditors
Bills Receivable and Bills Payable
Purchases and Sales
Return Inward
Salaries and Wages
Carriage outward
Insurance Premium
Postage and Telegram
Plant and Machinery
Advertisement
Import Duty
Bad Debts
Printing and Stationery
Cash in Hand
Leasehold Premises
Opening Stock
Dividend Received
Outstanding Audit fees
10% Bank Loan (Taken on 1.10.2009)
Capital Accounts : Sanjay
Vijay
|
45,800
28,200
98,500
2,000
26,000
1,800
2,200
1,750
70,000
3,000
2,100
1,000
2,400
1,850
80,000
12,000
|
72,700
40,000
1,10,000
1,500
4,400
60,000
45,000
45,000
|
|
Total
|
3,78,600
|
3,78,600
|
Additional Information:
(1) Closing Stock was valued at Rs 25,000.
(2) Unused Postage Stamps of Rs 250.
(3) Uninsured goods worth Rs 8,000 were stolen from the godown.
(4) Leasehold property is to be run for 10 years w.e.f.1.10.2009.
(5) Depreciate Plant and Machinery at 10% p.a.
(6) Our customer Mr. Ajay became insolvent and could not pay his debts of Rs 2,000.
Give the word / term or phrase which can substitute the following statement.
The accounts which are prepared at the end of each financial year.
Give the word / term or phrase which can substitute the following statement.
The statement showing list of all ledger balances.
Select the most appropriate alternative from those given below and rewrite the statement.
_________________ is the list of all ledger balances.
State whether the following statement is True or False.
Profit and loss account is a nominal account.
State whether the following statement is True or False.
Credit balance of profit and loss account shows net profit of the business.
Kajol and Sunny were partners sharing profits and losses in the ratio of 3:2. The following Balances were extracted from the books of account for the year ended March 31, 2015.
|
Account Name
|
Debit Amount Rs
|
Credit Amount Rs
|
|
Capital
|
|
|
|
Kajol
|
|
1,15,000
|
|
Sunny
|
|
91,000
|
|
Current accounts [on 1-04-2005*]
|
|
|
|
Kajol
|
|
4,500
|
|
Sunny
|
3,200
|
|
|
Drawings
|
|
|
|
Kajol
|
6,000
|
|
|
Sunny
|
3,000
|
|
|
Opening stock
|
22,700
|
|
|
Purchases and Sales
|
1,65,000
|
2,35,800
|
|
Freight inward
|
1,200
|
|
|
Returns
|
2,000
|
3,200
|
|
Printing and Stationery
|
900
|
|
|
Wages
|
5,500
|
|
|
Bills receivables and Bills payables
|
25,000
|
21,000
|
|
Discount
|
400
|
800
|
|
Salaries
|
6,000
|
|
|
Rent
|
7,200
|
|
|
Insurance premium
|
2,000
|
|
|
Traveling expenses
|
700
|
|
|
Sundry expenses
|
1,100
|
|
|
Commission
|
|
1,600
|
|
Debtors and Creditors
|
74,000
|
78,000
|
|
Building
|
85,000
|
|
|
Plant and Machinery
|
70,000
|
|
|
Motor car
|
60,000
|
|
|
Furniture and Fixtures
|
15,000
|
|
|
Bad debts
|
1,500
|
|
|
Provision for doubtful debts
|
|
2,200
|
|
Loan
|
|
25,000
|
|
Legal expenses
|
300
|
|
|
Audit fee
|
900
|
|
|
Cash in hand
|
7,500
|
|
|
Cash at bank
|
12,000
|
|
|
|
5,78,100
|
5,78,100
|
Prepare final accounts for the year ended March 31,2015, with following adjustments:
(a) Stock on March 31,2015 was Rs37,500.
(b) Bad debts Rs3,000; Provision for bad debts is to be made at 5% on debtors
(c) Rent Prepaid were Rs1,200.
(d) Wages outstanding were Rs 2,200.
(e) Interest on capital to be allowed on capital at 6% per annum and interest on drawings to be charged @ 5% per annum.
(f) Kajol is entitled to a Salary of Rs 1,500 per annum.
(g) Prepaid insurance was Rs 500.
(h) Depreciation was charged on Building, @ 4%; Plant and Machinery, @ 5%; Motor car, @ 10% and furniture and fixture, @ 5%.
(i) Goods worth Rs 7,000 were destroyed by fire on January 20,2015. The Insurance company agreed to pay Rs 5,000 in full settlement of the claim.
*As per the question, this year should be 01-04-2014
Triphati and Chauhan are partners in a firm sharing profits and losses in the ratio of 3:2. Their capitals were Rs 60,000 and Rs 40,000 as on January 01, 2015. During the year they earned a profit of Rs 30,000. According to the partnership deed both the partners are entitled to Rs 1,000 per month as Salary and 5% interest on their capital. They are also to be charged an interest of 5% on their drawings, irrespective of the period, which is Rs 12,000 for Tripathi, Rs 8,000 for Chauhan. Prepare Partner’s Accounts when, capitals are fixed.
From the following Trial Balance of M/s . Patil and Desai , you are required to prepare Trading and profit and loss Account for the year ended 31st March , 2016 and Balance Sheet as on that date :
Trial Balance as on 31.03.2016
| Debit Balances |
Amount (₹) |
Credit Balances |
Amount (₹) |
| Machinery |
140000 |
Capital accounts : |
|
| Furniture |
80000 |
Patil |
200000 |
| Coal,gas and water |
4300 |
Desai |
150000 |
| Land and Building |
120000 |
Sales |
330000 |
| Purchases |
232000 |
Sundry creditors |
105000 |
| Postage and telegram |
2200 |
Bank loan |
40000 |
| Export duty |
15500 |
|
|
| Wages and Salaries |
31000 |
| Rent and taxes |
7200 |
| Cash in hand |
58000 |
| Freight |
6200 |
| Prepaid rent |
3600 |
| Sundry debtors |
76000 |
| Salaries |
4200 |
| Opening stock |
39000 |
| Discount |
5800 |
| |
825000 |
|
825000 |
Adjustments :
(1) Closing stock in hand was valued at ₹ 61000.
(2) Goods distributed as free samples were ₹ 3000.
(3) Outstanding salaries ₹ 900
(4) Provide reserve for doubtful debts at 5 % on sundry debtors.
(5) Depreciate machinery at 5 % p.a.
Select the most appropriate alternative from those given below and rewrite the statement.
All indirect expenses are debited to ____________ account.
Select the most appropriate alternative from the given below and rewrite the statement.
If any asset is taken over by a partner from the firm, his capital account will be ______
Umesh and Prakash were partners sharing profit and losses in the proportion of 3/5 and 2/5 respectively. They dissolved their partnership firm on 31st March, 2013, when their financial position was us under:
Balance sheet as on 31st March, 2012
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Sundry Creditors
|
7500
|
Cash at Bank
|
1500
|
|
Umesh’s Wife’s Loan
|
15000
|
Debtors 33750
|
|
|
Capital Accounts:
|
|
Less: R.D.D. - 3750
|
30000
|
|
Umesh
|
69000
|
Stock
|
67500
|
|
Prakash
|
45000
|
Machinery
|
22500
|
| |
|
Furniture
|
15000
|
| |
|
|
|
| |
136500
|
|
136500
|
(1) The assets realised as under.
Goodwill Rs. 7500; Stock Rs. 60000; Debtors Rs. 27000
(2) Machinery was taken over by Prakash at Rs. 20,000 and furniture by Umesh at book value.
(3) Umesh agreed to discharge his wife’s loan.
(4) The creditors were paid at a rebate of Rs. 1500.
(5) The expenses of dissolution amounted to Rs. 3000
Satish and Pradeep are partners in a partnership firm, sharing profit and losses equally. From the following Trial Balance and Adjustment given below, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March 2013 and Balance sheet as on that date.
Balance Sheet as on 31st March 2013
| Debit Balance |
Amount (₹) |
Credit Balance |
Amount (₹) |
| Purchases |
220000 |
Partners' Capital |
|
| Sundry Debtors |
45000 |
Satish |
120000 |
| Discount |
4000 |
Pradeep |
90000 |
| Opening stock |
25000 |
Sales |
430000 |
| Wages and salaries |
23000 |
Sundry Creditors |
85000 |
| Manufacturing expenses |
25500 |
Discount |
3500 |
| Factory Building |
175000 |
|
|
| Plant and Machinery |
75000 |
| Advertisement (for 2 yrs w.e.f. 1.1.13) |
10000 |
| Salary and wages |
45000 |
| Cash in hand |
15000 |
| 10 % Govt. Bonds (purchased on 01.07.2012) |
60000 |
| Warehouse Rent |
6000 |
| |
728500 |
|
728500 |
Adjustments :
(1) The closing stock was valued at the market price at ₹ 92000, which is 15 % above its cost price.
(2) Depreciation machinery at 10 % p.a.
(3) Outstanding wages were ₹ 2500
(4) Maintain R.D.D. at 5 % on sundry debtors.
A prepayment of insurance premium will appear in ______.
Closing stock is valued at ______.
Accrued interest on investment will be shown
Explain how closing stock is treated in final accounts?
Complete the following sentence.
"If, after the final accounts have been prepared, some omission or commissions are noticed say in respect of the interest on capital, interest on drawings, etc. necessary adjustments can be made in the partner's capital accounts through?
