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प्रश्न
Surekha and Sangita decided to undertake a venture jointly. They agreed to share profits and losses in the ratio of 3 : 2. Surekha supplied from her own stock goods worth Rs. 4,00,000 and paid Rs. 9,900 for freight and Rs. 2,400 for insurance. Sangita purchased goods of Rs. 3,90,000 for the venture and paid Rs 14,000 for selling expenses. Sangita accepted a bill for 3 months of Rs. 1,90,000 drawn by Surekha as an advance. The bill was discounted immediately by Surekha for Rs. 1,84,000 and the amount of discount was charged to Joint Venture Account. Sangita sold all the goods for Rs. 10,00,000. At end of the venture, the accounts were settled. Give journal entries in the books of Surekha.
उत्तर
In the books of Surekha Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Joint Venture A/c |
Dr. |
|
4,00,000 |
|
|
To Purchases A/c |
|
|
|
4,00,000 |
|
(Goods supplied for Joint Venture) |
|
|
|
|
|
|
|
|
|
|
|
Joint Venture A/c |
|
|
12,300 |
|
|
To Bank A/c (9,900 + 2,400) |
|
|
|
12,300 |
|
(Expenses paid for Joint Venture) |
|
|
|
|
|
|
|
|
|
|
|
Joint Venture A/c |
Dr. |
|
3,90,000 |
|
|
To Sangita’s A/c |
|
|
|
3,90,000 |
|
(Goods purchased by Sangita for Joint Venture) |
|
|
|
|
|
|
|
|
|
|
|
Joint Venture A/c |
Dr. |
|
14,000 |
|
|
To Sangita’s A/c |
|
|
|
14,000 |
|
(Selling expenses paid by Sangita) |
|
|
|
|
|
|
|
|
|
|
|
Bills Receivable A/c |
Dr. |
|
1,90,000 |
|
|
To Sangita’s A/c |
|
|
|
1,90,000 |
|
(Acceptance received) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
1,84,000 |
|
|
Discount A/c |
Dr. |
|
6,000 |
|
|
To Bills Receivable A/c |
|
|
|
1,90,000 |
|
(Sangita’s acceptance discounted with bank) |
|
|
|
|
|
|
|
|
|
|
|
Joint Venture A/c |
Dr. |
|
6,000 |
|
|
To Discount A/c |
|
|
|
6,000 |
|
(Discount on bill treated as Joint Venture expenditure) |
|
|
|
|
|
|
|
|
|
|
|
Sangita’s A/c |
Dr. |
|
10,00,000 |
|
|
To Joint Venture A/c |
|
|
|
10,00,000 |
|
(Goods sold) |
|
|
|
|
|
|
|
|
|
|
|
Joint Venture A/c |
Dr. |
|
1,77,700 |
|
|
To Profit & Loss A/c |
|
|
|
1,06,620 |
|
To Sangita’s A/c |
|
|
|
71,080 |
|
(Profit made on Joint Venture) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
3,34,920 |
|
|
To Sangita’s A/c |
|
|
|
3,34,920 |
|
(Final payment received) |
|
|
|
In the Books of Sangita Joint Venture Account |
||||||||
Dr. |
|
Cr. |
||||||
Date |
Particulars |
Amount (Rs) |
Date |
Particulars |
Amount (Rs) |
|||
|
Surekha |
4,00,000 |
|
Bank |
10,00,000 |
|||
|
Surekha: |
|
|
|
|
|||
|
Freight |
9,900 |
|
|
|
|
||
|
Insurance |
2,400 |
12,300 |
|
|
|
||
|
Bank: |
|
|
|
|
|||
|
Purchases |
3,90,000 |
|
|
|
|
||
|
Selling Expenses |
14,000 |
4,04,000 |
|
|
|
||
|
Surekha (Bill discounted) |
6,000 |
|
|
|
|||
|
Profit transferred to: |
|
|
|
|
|||
|
Profit & Loss A/c (2/5th) |
71,080 |
|
|
|
|
||
|
Surekha (3/5th) |
1,06,620 |
1,77,700 |
|
|
|
||
|
|
|
|
|
|
|||
|
|
10,00,000 |
|
|
10,00,000 |
Surekha’s Account |
|||||||
Dr. |
|
Cr. |
|||||
Date |
Particulars |
Amount (Rs) |
Date |
Particulars |
Amount (Rs) |
||
|
Bills Payable |
1,90,000 |
|
Joint Venture (Goods) |
4,00,000 |
||
|
Bank (Final Payment) |
3,34,920 |
|
Joint Venture (Freight & Sundry Expenses) |
12,300 |
||
|
|
|
|
Joint Venture (Discount on bill) |
6,000 |
||
|
|
|
|
Joint Venture (Profit) |
1,06,620 |
||
|
|
|
|
|
|
||
|
|
5,24,920 |
|
|
5,24,920 |
APPEARS IN
संबंधित प्रश्न
Select the most appropriate alternative from those given below and rewrite the statement.
Return outward are deducted from __________________.
Write the word/phrase/term, which can substitute the following sentence.
Debit balance of Trading Account.
Write the word/phrase/term, which can substitute the following sentence.
Credit balance of Profit and Loss Account.
Rohan and Roshan are partners in ‘Shan Traders’ sharing profits and losses in the ratio of 2:1. From the following Trial Balance and adjustments prepare Trading and Profit and Loss Account for the year ended 31st March, 2011 and Balance Sheet as on that date
Trial Balance as on 31st March, 2011 | |||
Particulars | Amount (₹) | Particulars | Amount (₹) |
Opening stock | 32,000 | Sales | 1,93,500 |
Purchases | 64,000 | Sundry Creditors | 15,000 |
Plant and Machinery | 30,000 | Unpaid Wages | 1,500 |
Furniture | 18,500 | Return outward | 2,500 |
Carriage | 1,500 | Capital A/c: | |
Wages and Salaries | 35,000 | Rohan | 90,000 |
Bills Receivable | 5,000 | Roshan | 50,000 |
Sundry Debtors | 32,000 | ||
Conveyance | 4,000 | ||
Rent, Rates and Taxes | 2,000 | ||
Return Inward | 3,500 | ||
Cash in hand | 14,750 | ||
Land and Building | 83,500 | ||
Bad debts | 1,750 | ||
Patents | 25,000 | ||
3,52,500 | 3,52,500 |
Adjustments:
- Closing stock: Cost price Rs 25,000 and market price Rs 30,000.
- An amount of Rs 3,500 spent for repairs to Building is debited to Building account.
- Depreciate plant and Machinery and Building at 5% p.a.
- Goods of Rs 750 taken by Roshan for this personal use.
- Included in wages advances given to workers Rs 3,000.
- Provide Rs 1,500 for bad and doubtful debts on Debtors.
Madhuri and Minakshi are in partnership sharing profits and losses in the ratio 3:2. From the following Trial Balance and adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2012 and Balance Sheet on that date.
Trial Balance as on 31st March, 2012
Debit Balance |
Amount
Rs
|
Credit Balance |
Amount
Rs
|
Building | 400000 | Capital A/cs- | |
Plant and Machinery | 120000 |
Madhuri |
300000 |
Purchases | 650000 | Minakshi | 200000 |
Carriage | 7000 | Sales | 810000 |
Opening stock | 90000 | Sundry Creditors | 100000 |
Wages | 35000 | Outstanding salaries | 4200 |
Sundry Debtors | 150000 | 8% Bank loan (Taken on 1.10.2011 ) |
100000 |
Salaries | 28000 | ||
Postage and Telegram | 4000 | ||
Insurance | 5000 | ||
Bad debts | 3000 | ||
Rent | 4000 | ||
Discount | 3200 | ||
Drawing A/c- | |||
Madhuri | 10000 | ||
Minakshi | 5000 | ||
1514200 | 1514200 |
Adjustments:
1) Stock on hand on 31st March, 2010 was valued at Rs 1,10,000.
2) Depreciate Plant and Machinery at 10% p.a. and Building at 5% p.a.
3) Prepaid Insurance Rs 1,500.
4) Create R.D.D at 5% on Sundry Debtors.
5) Partners are allowed interest at 5% p.a. on their capitals.
6) Salaries include Rs 2,500 as advance to workers.
Keshav and Madhav were partners sharing the profits and losses in the ratio of 2:3. Their Balance Sheet is as follows:
Balance Sheet as on 31st March, 2011
Liabilities | Amount (Rs) | Assets | Amount (Rs) | |
Capital Accounts : | Live stock | 20000 | ||
Keshav | 250000 | Building | 138000 | |
Madhav | 260000 | Investment | 45000 | |
Creditors | 8500 | Loose Tools | 38000 | |
Debtors | 90000 | 72000 | ||
(-)R.D.D | 18000 | |||
Profit and Loss A/c | 15000 | |||
Closing Stock | 104500 | |||
Cash in Hand | 86000 | |||
518500 | 518500 |
On 1st April, 2011 they admitted Uddhav on the following terms:
1) The new profit sharing ratio is equal.
2) Uddhav brings Rs 2,00,000 as his capital and Rs 80,000 as share of goodwill in cash.
3) Prepaid insurance of Rs 7,500 was not recorded in the books.
4) Loose tools were found undervalued by 5% and Building was found overvalued by 15% in the books.
5) All debtors are considered as good and out of creditors Rs 500 is no longer payable.
6) The market Value of Investment is 50% more than its book value.
Prepare, Profit and Loss Adjustment in A/c, Capital Accounts of partners and Balance Sheet of the new firm.
Ashok and Sangmesh are in partnership sharing profit and losses in the ratio of 2: 1. From the following trial balance and adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended on 31st March 2016 and Balance sheet as on that date:
Trial Balance as on 31st March 2016
Particulars | Debit Amount (Rs.) |
Credit Amount (Rs.) |
Prepaid insurance | 3,200 | |
Insurance | 8,000 | |
R.D.D. | 4,000 | |
Discount | 3,200 | |
Postage and telephone | 12,800 | |
Debtors and creditors | 2,64,000 | 2,72,000 |
Salaries | 2,24,000 | |
Wages | 96,000 | |
Opening stock | 1,92,200 | |
Carriage | 4,000 | |
Purchased and sales | 7,72,800 | 12,06,400 |
Return inward/Outward | 22,400 | 36,800 |
Bank Overdraft | 4,83,200 | |
Plant and Machinery | 96,000 | |
Land and Building | 7,04,000 | |
Partner's Capital accounts : | ||
Ashok | 2,08,000 | |
Sangmesh | 1,92,000 | |
24,02,400 | 24,02,400 |
Adjustment :
(1) Write off Rs. 8,000 for bad debts and provide R.D.D. @ 5% on debtors.
(2) Goods worth Rs. 16,000 were distributed as free samples.
(3) Closing stock on 31st March 2016 was valued at the cost of Rs. 2,24,000 while its market price was Rs. 2,40,000.
(4) The salaries were outstanding at Rs. 8,000.
(5) Depreciation : Land and Building @ 5% p.a. and Plant and Machinery @ 10 % p.a.
Dhiraj and Suraj are partners sharing profits and losses in the ratio of 2 : 1. From the following Trial Balance and adjustments, prepare Trading and Profit and Loss account for the year ended 31st March, 2013 and balance sheet as on that date :
Trial Balance as on 31.03.2013
Particulars
|
Amount
Rs.
|
Particulars
|
Amount
Rs.
|
Opening Stock | 32,000 | Sales | 1,93,500 |
Purchases | 64,000 | Sundry Creditors | 16,500 |
Plant and Machinery | 30,000 | Return Outward | 2,500 |
Furniture | 18,500 | Capital Accounts | |
Carriage | 1,500 | Dhiraj | 90,000 |
Wages | 30,000 | Suraj | 50,000 |
Bills Receivable | 5,000 | ||
Sundry Debtors | 32,000 | ||
Conveyance | 4,000 | ||
Salaries
|
10,500 | ||
Cash in hand | 14,750 | ||
Land and Building | 83,500 | ||
Bad debts | 1,750 | ||
Patents | 25,000 | ||
352,500 | 352,500 |
Anita, Sunita and Kavita were partners sharing profits and losses in the ratio 3:3:2. Their Balance Sheet as on 31st March 2013 is as below :
Balance Sheet as on 31st March, 2013.
Liabilities
|
Amount
(Rs.)
|
Assets
|
Amount
(Rs.)
|
Capital Accounts
|
Building
|
10000
|
|
Anita
|
11000
|
Machinery
|
10700
|
Sunita
|
15000
|
Furniture
|
10000
|
Kavita
|
8000
|
Debtors
|
5000
|
Creditors
|
10000
|
Stock
|
6600
|
Reserve fund
|
4000
|
Cash
|
6600
|
48900
|
48900
|
Write the word/phrase/term, which can substitute the following sentence.
The accounts that are prepared at the end of each accounting year.
Write the word/phrase/term, which can substitute the following sentence.
An asset which can be converted into cash easily.
Write the word/phrase/term, which can substitute the following sentence.
The account in which selling expenses of the business are recorded.
State whether the following statement is True or False with reasons.
Profit and Loss Account is a Real Account.
State whether the following statement is True or False with reasons.
Prepaid expenses are treated as liabilities.
State whether the following statement is True or False with reasons.
R.D.D. is created on Creditors.
State whether the following statement is True or False with reasons.
Bank loan is a current liability.
Find odd one.
Partners are _____ liable for the debts of the firm.
The withdrawal by partner for personal use from the firm is ________ to his account.
If partners Current Account shows ______ balance it is shown to the liability side of Balance sheet
Expenses which are paid before due date are called as _____.
Trading Account is prepared on the basis of ______ expenses.
When goods are distributed as free samples, it is treated as ___________of the business.
Current account always shows a debit balance.
Do you agree/disagree with the following statement:
Carriage Inward is a selling and distribution overhead.
Do you agree/disagree with the following statement:
All financial expenditures are debited to profit and loss account.
Do you agree/disagree with the following statement:
Free distribution of goods is debited to the trading account.
Amit bhai and Narendra bhai are in Partnership Sharing Profits and Losses equally. From the following Trial Balance and Adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March 2019 and Balance Sheet as on that date.
Trial Balance as on 31st March 2019
Debit Balance | Amount ₹ | Credit Balance | Amount ₹ |
Plant & Machinery | 2,80,000 | Capital A/c: | |
Factory Building | 75,000 | Amitbhai | 3,50,000 |
Sundry Debtors | 28,700 | Narendrabhai | 3,00,000 |
Purchases | 85,500 | Sales | 1,80,000 |
Bad Debts | 500 | Bills Payable | 8,500 |
Sales Return | 2,200 | Discount | 1,200 |
10% Govt. Bond |
40,000 | Creditors | 38,500 |
Import Duty | 1,800 | R.D.D. | 2,700 |
Legal Charges | 2,000 | Bank Loan | 15,000 |
Motive Power | 12,000 | Purchases Return | 2,000 |
Warehouse Rent | 1,800 | ||
Cash in Hand | 20,000 | ||
Cash at Bank | 70,000 | ||
Advertisement (for 2 years, w.e.f 1st Jan 2019) |
10,000 | ||
Salaries | 3,800 | ||
Rent | 1,500 | ||
Drawings : | |||
Amitbhai | 2,400 | ||
Narendrabhai | 3,200 | ||
Furniture | 1,95,800 | ||
Bills Receivable | 20,700 | ||
Freehold Property | 41,000 | ||
8,97,900 | 8,97,900 |
Adjustments:
1) Stock on hand on 31st March 2019 was valued at ₹ 43,000.
2) Uninsured goods worth ₹ 8,000 were stolen.
3) Create R.D.D at 2% on Sundry debtors.
4) Mr. Patil, our customer becomes insolvent and could not pay his debts of ₹ 500.
5) Outstanding Expenses - Rent ₹ 800 and Salaries ₹ 300
6) Depreciate Factory Building by ₹ 2,500 and Furniture by ₹ 1,800
Archana and Prerana are partners, sharing Profits and Losses in the ratio 2: 1 with the help of following Trial Balance and Adjustments given below. You are required to prepare Trading and Profit and Loss Account for the year ended 31st March 2019 and Balance Sheet as on that date.
Trial Balance as on 31st March 2019
Debit Balance |
Amount ₹ |
Credit Balance |
Amount ₹ |
Stock (1/4/2018) |
8,560 |
Capital: |
|
Patents |
2,000 |
Archana |
40,000 |
Sundry Debtors |
18,500 |
Prerana |
20,000 |
Stock of Stationary |
3,000 |
Other Loans |
3,000 |
Trade Mark |
2,000 |
Reserve fund |
1,000 |
Bills Receivable |
6,300 |
Sundry Creditors |
17,500 |
Electricity charges |
1,450 |
Bills Payable |
5,000 |
Wages |
950 |
Purchase Return |
1,000 |
Heating & Lighting |
1,000 |
R.D.D |
500 |
Trade Expenses |
850 |
Sales |
30,200 |
Sales Return |
400 |
Interest |
310 |
Land & Building |
22,000 |
||
Furniture |
13,000 |
||
Cash at Bank |
5,000 |
||
Investments |
7,500 |
||
Drawings : |
|||
Archana |
1,200 |
||
Prerana |
900 |
||
Bad debts |
200 |
||
Purchases |
23,700 |
||
1,18,510 |
1,18,510 |
Adjustments:
1) Stock on 31st March 2019 is valued at Cost Price ₹ 12,000 and Market Price ₹ 17,000.
2) Our customer Mr. Shekhar failed to pay his dues of ₹ 800.
3) 1/8th of Patents are to be written off.
4) A part of Furniture ₹ 5,000 is purchased on 1st Oct 2018.
5) Depreciation on Land & Building 10% and on Furniture 5%.
6) Outstanding Expenses Wages ₹ 300 and Electricity Charges ₹ 200.
7) Allow Interest on Capital 3%.
Kshipra and Manisha are Partners sharing Profit and Loss in their Capital Ratio. You are required to prepare Trading Account and Profit and Loss Account for the year ended 31st March 2019 and Balance Sheet as on that date.
Trial Balance as on 31st March 2019
Debit Balance |
Amount ₹ |
Credit Balance |
Amount ₹ |
Sundry Debtors |
28,000 |
Sales |
1,20,000 |
Purchases |
55,000 |
Rent |
1,800 |
Furniture |
38,500 |
Sundry Creditors |
38,500 |
Plant & Machinery |
60,000 |
Purchase Return |
1,000 |
Wages |
800 |
Discount |
500 |
Salaries |
3,500 |
Bills Payable |
9,000 |
Discount |
800 |
Capital A/c : |
|
Bills Receivable |
14,400 |
Kshipra |
90,000 |
Carriage Outward |
1,000 |
Manisha |
30,000 |
Postage |
500 |
Current A/c : |
|
Sales Return |
500 |
Kshipra |
5,000 |
Cash in Hand |
4,000 |
Manisha |
3,000 |
Cash at Bank |
47,000 |
||
Insurance |
2,000 |
||
Opening Stock |
17,800 |
||
Trade Expenses |
1,500 |
||
Warehouse Rent |
2,500 |
||
Advertisement |
1,000 |
||
Building |
20,000 |
||
2,98,800 |
2,98,800 |
Adjustments :
1) Stock on 31st March 2019 was at ₹37,000.
2) Sales include the sale of machinery of ₹ 2,000, which is sold on 1st April 2018.
3) Depreciation on fixed assets @ 5%.
4) Each Partners is entitled to get Commission at 1% of Gross Profit and Interest on Capital 5% p.a.
5) Outstanding Expenses Wages ₹ 200 & Salaries ₹ 500.
6) Create provision for doubtful debts @ 3% on Sundry Debtors.
Find out Gross profit/Gross loss Purchases ₹ 30,000, Sales ₹ 15,000, Carriage Inward ₹ 2,400, Opening Stock ₹ 10,000, Purchase Returns ₹ 1,000, Closing Stock ₹ 36,000.
Kavya and Bhavya are partners, sharing profits and losses in the ratio 3 : 2. From the following Trial Balance and adjustments, prepare: Trading and Profit and loss Account for the year ending and Balance Sheet as on that date.
Trial Balance as on 31st March, 2020 | ||
Particulars | Debit Amount (₹) | Credit Amount (₹) |
Capital: | ||
Kavya | 7,50,000 | |
Bhavya | 5,00,000 | |
Sundry Debtors | 2,25,000 | |
Sundry Creditors | 1,50,000 | |
Rent (10 Months) | 5,000 | |
Opening Stock | 2,67,750 | |
Building | 4,25,000 | |
Salaries | 25,000 | |
Commission | 400 | 475 |
Vehicles | 1,85,000 | |
Sales | 4,20,250 | |
Purchases | 3,20,250 | |
Wages | 5,000 | |
Office Expenses | 10,000 | |
Bank Overdraft | 75,000 | |
Goods Returns | 2,750 | 1,750 |
Provident Fund Investment | 4,00,000 | |
Cash in Hand | 20,000 | |
Provident Fund Contribution | 50,000 | |
Provident Fund | 1,40,000 | |
Cash at Bank | 1,00,000 | |
Interest on P.F. Investment | 21,000 | |
Drawing: | ||
Kavya | 10,000 | |
Bhavya | 7,500 | |
Bad-debts | 1,675 | |
R.D.D. | 1,850 | |
Total | 20,60,325 | 20,60,325 |
Adjustments :
- Closing Stock ₹ 1,80,000.
- Outstanding wages ₹ 1,500 and Salaries ₹ 1,000
- Depreciate Vehicles @ 5% p.a.
- Write off Bad debts of ₹ 2,500 and provide for R.D.D at 5% Sundry Debtors.
- Bhavya withdrew Goods of ₹ 3,000 for her personal use.
Asha and Nisha are partners sharing profits and losses in equal ratio. From the following Trial Balance and adjustments you are required to prepare Final Accounts:
Trial Balance as on 31st March, 2019 | |||
Debit Balance | Amount (₹) | Credit Balance | Amount (₹) |
Purchases | 48,000 | Capital accounts: | |
Salaries | 7,500 | Asha | 80,000 |
Wages | 2,800 | Nisha | 40,000 |
Advertisement (2 years) | 4,000 | Bank Overdraft | 34,000 |
Sales Return | 8,000 | Sales | 1,48,000 |
Motor Van | 63,000 | R.D.D. | 1,200 |
Stock (1. 4. 2018) | 94,500 | Purchase Return | 6,000 |
Sundry Debtors | 62,800 | ||
Coal, Gas and Fuel | 1,000 | ||
Plant and Machinery | 17,600 | ||
3,09,200 | 3,09,200 |
Adjustments:
- Closing stock is valued at cost ₹ 88,000 and market price ₹ 90,000.
- Asha and Nisha withdrew goods from business ₹ 3,000 and ₹ 2,000 respectively for their personal use.
- Depreciate Motor Van by 5% and Plant and Machinery by 7%.
- Reserve for Doubtful debts on Debtors at 5% is to be created.
- Outstanding Wages ₹ 800.
Sun and Moon are partners sharing profits and losses equally. From the following trial balance and additional information prepare trading and Profit and Loss Account for the year ended 31st march 2020 and balance sheet as on that date.
Trial Balance as on 31st March, 2020 | |||
Debit Balance | Amount (₹) | Credit Balance | Amount (₹) |
Stock (1/4/2019) | 65,000 | General Reserve | 14,500 |
Bills Receivable | 28,000 | Capital: | |
Wages and Salaries | 9,000 | Sun | 1,60,000 |
Sundry Debtors | 1,32,500 | Moon | 1,20,000 |
Bad-debts | 1,000 | Creditors | 98,000 |
Purchases | 1,48,000 | R.D.D. | 1,800 |
Motor car | 68,000 | Sales | 2,85,500 |
Machinery | 1,14,800 | Outstanding Wages | 700 |
Audit Fees | 1,200 | Purchases Returns | 4,000 |
Sales Return | 2,000 | Discount | 1,800 |
Discount | 2,300 | ||
Building | 75,000 | ||
Cash at Bank | 12,000 | ||
10% Investment | 20,000 | ||
Advertisement (Paid for 9 months) | 4,500 | ||
Royalties | 3,000 | ||
6,86,300 | 6,86,300 |
Adjustment and Additional Information:
- Closing Stock ₹ 40,000.
- Depreciate Building and Machinery @ 5% and 3% respectively.
- Bills Receivable included dishonoured bill of ₹ 3000.
- Goods worth ₹ 1000 taken by sun for personal use was not entered in the books of accounts.
- Write off ₹ 1800 as Bad debts and maintain R.D.D. at 5% on Sundry Debtors.
- Goods of ₹ 6000 were sold but no entry was made in the books of accounts.
From the following Trial Balance of Riddhi and Siddhi, you are required to prepare Trading and Profit & Loss Account for the year ended 31st March, 2020 and Balance Sheet as on that date after considering the additional information given below.
Trial Balance as on 31st March, 2020 | ||
Debit Balance | Debit (₹) | Credit (₹) |
Stock (1/4/2018) | 48,000 | |
Capital - Riddhi | 50,000 | |
Siddhi | 30,000 | |
Purchases | 22,500 | |
Wages | 800 | |
Carriage Inward | 1,000 | |
Sundry Creditors | 27,600 | |
Bills Payable | 20,000 | |
Cash in hand | 2,850 | |
Insurance | 1,200 | |
Sundry Debtors | 32,000 | |
Bank Overdraft | 18,000 | |
Carriage outward | 900 | |
Land and Building | 42,500 | |
Furniture | 38,700 | |
Sales | 47,000 | |
Purchase Return | 500 | |
Sales Return | 400 | |
Rent | 1,800 | |
Bad-debts | 300 | |
R.D.D | 350 | |
Discount | 700 | 1,000 |
Travelling Expenses | 250 | |
Advertisements | 4,150 | |
1,96,250 | 1,96,250 |
Adjustments:
- Closing stock ₹ 48,700.
- Outstanding Expenses - Wages ₹ 700 and Travelling Expenses ₹ 200.
- Depreciate Land and Building by 10% and Furniture by 5%.
- Insurance Paid in Advance ₹ 300.
- Goods of ₹ 3,000 destroyed by fire and Insurance Company rejected the claim fully.
State whether the following statement is True or False with reason:
Carriage Inward is carriage on purchases.
State whether the following statement is True or False with reason:
Profit and Loss Account is a Real Account.
Find odd one
Find odd one.
Find the odd one:
Asha and Nirasha are partners sharing profits and losses in the ratio of 1 : 1. From the following Trial Balance and additional information, prepare Trading and Profit and Loss account for the year ended 31st March, 2023 and Balance Sheet as on that date.
Trial Balance as on 31st March, 2023 | |||
Debit Balance | Amount (₹) | Credit Balance | Amount (₹) |
Stock (1/4/2022) | 1,30,000 | General Reserve | 29,000 |
Bills Receivable | 56,000 | Capital: | |
Wages and Salaries | 18,000 | Asha | 3,20,000 |
Sundry Debtors | 2,65,000 | Nirasha | 2,40,000 |
Bad Debts | 2,000 | Creditors | 1,96,000 |
Purchases | 2,96,000 | R.D.D. | 3,600 |
Motor Car | 1,36,000 | Sales | 5,71,000 |
Machinery | 2,29,600 | Outstanding Wages | 1,400 |
Audit Fees | 2,400 | Purchases Returns | 8,000 |
Sales Return | 4,000 | Discount | 3,600 |
Discount | 4,600 | ||
Building | 1,50,000 | ||
Cash at Bank | 24,000 | ||
10% Investment | 40,000 | ||
Advertisement (Paid for 9 months) | 9,000 | ||
Royalties | 6,000 | ||
13,72,600 | 13,72,60 |
Adjustment and Additional Information:
(1) Closing Stock ₹ 80,000.
(2) Depreciation Building and Machinery @ 5% and 3% respectively.
(3) Bills Receivable included dishonoured bill of ₹ 6,000.
(4) Goods worth ₹ 2,000 taken by Asha for personal use was not entered in the books of accounts.
(5) Write off ₹ 3,600 as Bad debts and maintain R.D.D. at 5% on Sundry Debtors.
(6) Goods of ₹ 12,000 were sold but no entry was made in the books of accounts.
Undervaluation of closing stock by 10%, closing stock was of ₹ 54,000. Find out the value of closing stock.
From the following Trial Balance and Adjustments of Rushabh and Yesha, you are required to prepare final accounts as on 31st March, 2023. Profit and Loss sharing ratio of partners is their capital ratio.
Trial Balance as on 31st March, 2023 | ||
Particulars (Name of Accounts) | Debit (₹) | Credit (₹) |
Capital and Drawings : | ||
Rushabh | 40,000 | 2,00,000 |
Yesha | 28,000 | 1,00,000 |
Purchases and Sales | 2,80,000 | 5,21,000 |
Debtors and Creditors | 1,80,000 | 1,20,000 |
Sales Return and Purchase Return | 4,000 | 6,000 |
Bills Receivable and Bills Payable | 30,000 | 41,600 |
Cash Balance and Bank Overdraft | 2,000 | 28,000 |
Bad Debts and Provision for Doubtful Debts | 800 | 2,600 |
Wages and Outstanding Wages | 70,000 | 4,000 |
Machinery | 80,000 | |
Furniture | 24,000 | |
Opening Stock of Goods | 92,200 | |
Prepaid Insurance | 400 | |
Salaries | 46,000 | |
Insurance Premium | 4,000 | |
Rent -Taxes | 24,000 | |
Advertisement Expenses | 5,800 | |
Goodwill | 1,44,000 | |
Leasehold Building | 28,000 | |
8 % Loan (From 1111/22) | 60,000 | |
10,83,200 | 10,83,200 |
Adjustments :
(1) Closing stock is of ₹ 2,20,000. Its market value is 20 % more than its value.
(2) Calculate interest on capital @ 6 % p.a.
(3) Interest on drawings to be charged from partners: Rushabh ₹ 1,800, Yesha ₹ 1,200
(4) Provision for doubtful debts is to be kept at 5 %.
(5) Outstanding expenses at the end of the year: Rent ₹ 600, Salary ₹ 1,900.
(6) Provide depreciation at 10 % on machinery and at 5 % on furniture.
(7) Write off ₹ 8,000 from Leasehold Building.
Royalty paid on production is shown in the ______.
Credit balance of Profit and Loss Suspense Account is shown in the Balance Sheet on ______ side.
Zalak and Kalpana are partners sharing Profit and Losses in their Capital ratio. You are required to prepare Trading Account and Profit and Loss Account for the year ended 31st March, 2023 and Balance Sheet as on that date.
Trial Balance as on 31st March, 2023 | |||
Debit Balance | Amount (₹) | Credit Balances | Amount (₹) |
Sundry Debtors | 56,000 | Sales | 2,40,000 |
Purchases | 1,10,000 | Rent | 3,600 |
Furniture | 77,000 | Sundry Creditors | 77,000 |
Plant and Machinery | 1,20,000 | Purchase Return | 2,000 |
Wages | 1,600 | Discount | 1,000 |
Salaries | 7,000 | Bills Payable | 18,000 |
Discount | 1,600 | Capital A/c: | |
Bills Receivable | 28,800 | Zalak | 1,80,000 |
Carriage Outward | 2,000 | Kalpana | 60,000 |
Postage | 1,000 | Current A/c: | |
Sales Return | 1,000 | Zalak | 10,000 |
Cash in Hand | 8,000 | Kalpana | 6,000 |
Cash at Bank | 94,000 | ||
Insurance | 4,000 | ||
Opening Stock | 35,600 | ||
Trade Expenses | 3,000 | ||
Warehouse Rent | 5,000 | ||
Advertisement | 2,000 | ||
Building | 40,000 | ||
5,97,600 | 5,97,600 |
Adjustments:
(1) Stock on 31st March, 2023 was at ₹ 74,000.
(2) Sales includes, sale of machinery of ₹ 4,000, which is sold on 1st April, 2022.
(3) Depreciation on fixed assets @ 5%.
(4) Each partner is entitled to get commission at 1 % of Gross profit and interest on Capital 5 % p.a.
(5) Outstanding Expenses: Wages ₹ 400 and Salaries ₹ 1,000.
6) Create provision for Doubtful debts @ 3 % on Sundry Debtors.
From the following Trial Balance and Adjustments given below of Rutul and Atul, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2023 and Balance Sheet as on that date.
Trial Balance as on 31st March, 2023 | |||
Debit Balances | Amount (₹) | Credit Balances | Amount (₹) |
Purchases | 71,000 | Sales | 1,16,400 |
Sundry Debtors | 80,000 | Sundry Creditors | 51,400 |
Sales Returns | 2,000 | Purchase Returns | 1,000 |
Opening Stock | 36,200 | R.D.D. | 1,600 |
Bad Debts | 1,000 | Discount | 100 |
Land & Building | 50,000 | Commission | 500 |
Furniture | 40,000 | Capital A/cs: | |
Discount | 2,000 | Rutul | 1,00,000 |
Royalties | 1,400 | Atul | 60,000 |
Rent | 3,800 | ||
Salaries | 6,000 | ||
Wages | 1,600 | ||
Insurance | 3,000 | ||
Drawing: | |||
Rutul | 4,000 | ||
Atul | 2,000 | ||
Cash at Bank | 23,000 | ||
Cash in Hand | 4,000 | ||
3,31,000 | 3,31,000 |
Adjustments:
(1) Closing stock valued at ₹ 44,000.
(2) Write off ₹ 1,800 for bad and doubtful debts and create a provision for reserve for doubtful debts ₹ 2,000.
(3) Create a provision for discount on debtors @ 3% and on creditors @ 5%.
(4) Outstanding expenses: Wages ₹ 1,400 and Salaries ₹ 1,600.
(5) Insurance is paid for 15 months, w.e.f. 1st April, 2022.
(6) Depreciate Land and Building @ 5%.
(7) Rutul and Atul are sharing Profits and Losses in their Capital Ratio.
Find odd one.
Find odd one.
Find odd one.