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प्रश्न
Select the most appropriate alternative from those given below and rewrite the statement.
All indirect expenses are debited to ____________ account.
विकल्प
Trading
Capital
Profit and Loss
Current
उत्तर
All indirect expenses are debited to Profit and Loss account.
Indirect expenses are those which cannot be directly linked to the product of the business.
That is, For example, Salaries is an Indirect expense which will be charged to P&L A/C but Wages is a direct expense which will be charged to the trading A/C.
Salaries is paid to the employees who belong to the organization, as a whole. It can be salaries paid to employees who work in the marketing department or the accountancy department etc. point is, it cannot be directly associated to the product/ service/ good manufactured by the company.But, wages are paid to workers who are directly connected to the manufacturing aspect of the business, that is, who help in the production or manufacturing side and therefore their cost can be directly associated to the product manufactured.
In short, All indirect expenses (rent, salaries, freight outwards etc) are charged to the P&L A/C, and all direct expenses (wages, freight inwards) are charged to the Trading A/C.
APPEARS IN
संबंधित प्रश्न
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.
A new partner is admitted in the firm for getting additional capital and skill.
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 |
Credit |
|
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 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.
Answer in one sentence only.
To which account Gross Profit transferred?
Answer in one sentence only.
In the absence of partnership deed, what is profit sharing ratio of the partners?
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.
The gross profit is transferred to _________________ account.
State whether the following statement is True or False.
Profit and loss account is a nominal account.
Dinker and Ravinder were partners sharing profits and losses in the ratio of 2:1. The following balances were extracted from the books of account, for the year ended December 31, 2017.
|
Account Name |
Debit |
Credit |
|
Capital |
|
|
|
Dinker |
|
2,35,000 |
|
Ravinder |
|
1,63,000 |
|
Drawings |
|
|
|
Dinker |
6,000 |
|
|
Ravinder |
5,000 |
|
|
Opening Stock |
35,100 |
|
|
Purchases and Sales |
2,85,000 |
3,75,800 |
|
Carriage inward |
2,200 |
|
|
Returns |
3,000 |
2,200 |
|
Stationery |
1,200 |
|
|
Wages |
12,500 |
|
|
Bills receivables and Bills payables |
45,000 |
32,000 |
|
Discount |
900 |
400 |
|
Salaries |
12,000 |
|
|
Rent and Taxes |
18,000 |
|
|
Insurance premium |
2,400 |
|
|
Postage |
300 |
|
|
Sundry expenses |
1,100 |
|
|
Commission |
|
3,200 |
|
Debtors and creditors |
95,000 |
40,000 |
|
Building |
1,20,000 |
|
|
Plant and machinery |
80,000 |
|
|
Investments |
1,00,000 |
|
|
Furniture and Fixture |
26,000 |
|
|
Bad Debts |
2,000 |
|
|
Bad debts provision |
|
4,600 |
|
Loan |
|
35,000 |
|
Legal Expenses |
200 |
|
|
Audit fee |
1,800 |
|
|
Cash in Hand |
13,500 |
|
|
Cash at Bank |
23,000 |
|
|
|
8,91,200 |
8,91,200 |
Prepare final accounts for the year ended December 31,2017, with following adjustment:
(a) Stock on December 31,2017, was Rs 42,500.
(b) A Provision is to be made for bad debts at 5% on debtors
(c) Rent outstanding was Rs 1,600.
(d) Wages outstanding were Rs 1,200.
(e) Interest on capital to be allowed on capital @ 4% per annum and interest on drawings to be charged @ 6% per annum.
(f) Dinker and Ravinder are entitled to a Salary of Rs 2,000 per annum
(g) Ravinder is entitled to a commission Rs 1,500.
(h) Depreciation is to be charged on Building @ 4%, Plant and Machinery, 6%, and furniture and fixture, 5%.
(i) Outstanding interest on loan amounted to Rs 350.
Anubha and Kajal are partners of a firm sharing profits and losses in the ratio of 2:1. Their capital, were Rs 90,000 and Rs 60,000. The profit during the year were Rs 45,000. According to partnership deed, both partners are allowed salary, Rs 700 per month to Anubha and Rs 500 per month to Kajal. Interest allowed on capital @ 5% p.a. The drawings at the end of the period were Rs 8,500 for Anubha and Rs 6,500 for Kajal. Interest is to be charged @ 5% p.a. on drawings. Prepare partners capital accounts, assuming that the capital account are fluctuating.
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 the given below and rewrite the statement.
If any asset is taken over by a partner from the firm, his capital account will be ______
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.
Net profit is ______.
Accrued interest on investment will be shown
If there is no existing provision for doubtful debts, provision created for doubtful debts is ______.
What is the need for preparing final accounts?
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?
Which account is prepared when past adjustments are to be made?
