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प्रश्न
Write the word/phrase/term, which can substitute the following sentence.
Expenses which are paid before they are due.
उत्तर
Expenses which are paid before they are due. - Prepaid Expenses
APPEARS IN
संबंधित प्रश्न
Select the most appropriate alternative from those given below and rewrite the statement.
Return outward are deducted from __________________.
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.
Rokadimal of Rajkot and Gunjal of Pune, entered into a Joint Venture to purchase and sale goods and agreed to share profit and losses in the proportion of 4 : 1 respectively.
Rokadimal paid Rs 11,500 for carriage.
Rokadimal discounted this bill with the bank for Rs 92,000.
Gunjal paid Rs 13,500 got advertisement.
Gunjal paid Rs 7,000 for selling expenses and he is entitled for a commission on sales at 5% Co-venturers settled their accounts.
Write the word/phrase/term, which can substitute the following sentence.
Debit balance of Trading 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.
Given below is the Trial Balance of M/s Roma and Mona partnership firm. Prepare Trading and Profit and Loss Account for the year ended 31st March, 2012 and Balance Sheet as on that date
Trial Balance as on 31st March, 2012
Debit Balance |
Amount
Rs
|
Credit Balance |
Amount
Rs
|
Stock on 1st April, 2011 | 52000 | Provident fund | 50000 |
Sundry Debtors | 84000 | Interest on P.F. Investment | 2800 |
Bad debts | 3000 | Sundry Creditors | 84000 |
Premises | 78000 | Rent received | 9600 |
Salaries | 28000 | Reserve for Doubtful Debts | 2000 |
Motor Vehicles | 50000 | Discount received | 3600 |
Purchases | 176000 | Sales | 320000 |
Provident Fund Investment | 50,000 | Capital A/c- | |
Provident Fund contribution | 5500 | Roma | 50000 |
Wages | 22000 | Mona | 50000 |
Rent (for 10 months) | 16,000 | ||
Office Expenses | 5,000 | ||
Discount allowed | 2,500 | ||
572000 | 572000 |
Adjustments:
1) Stock on 31st March, 2012 was valued at Rs 80,000.
2) Goods of Rs 6,000 were sold and despatched on 27th March, 2012, but no entry was made in the books of accounts.
3) Write off Bad debts of Rs 4,000 and provide for R.D.D. at 5% on sundry debtors.
4) Provide reserve for discount on debtors at 2% and on creditors at 3%.
5) Outstanding wages Rs 4,000 and outstanding salaries Rs 3,066.
6) Depreciate Motor Vehicle at 5% p.a.
Darshan and Amar were partners sharing profit and losses in the proportion of 2: 1. Their balance sheet is as follows:
Balance sheet as on 31st March 2016
Liabilities | Amt(Rs) | Amt(Rs) | Assets | Amt(Rs) | Amt(Rs) |
Capital A/cs: | Building | 1,00,000 | |||
Darshan | 96,000 | Furniture | 20,000 | ||
Amar | 64,000 | 1,60,000 | Equipments | 10,000 | |
General reserve | 18,000 | Debtors | 63,000 | ||
Profit and Loss A/c | 6,000 | Less: R.D.D | 3,000 | 60,000 | |
Creditors | 80,000 | Stock | 84,000 | ||
Pawans loan A/c | 26,000 | Cash | 16,000 | ||
2,90,000 | 2,90,000 |
On 1st April, 2016 Ranjit is admitted in the partnership on the following terms.
(1) Ranjit should bring in cash Rs 48,000 as capital for 1/5th share in future profits.
(2) Goodwill was raised in the books of the firm for Rs 18,000
(3) Building is revalued st RS 1,12,000 and tghe value of stock to be reduced by Rs 6,000
(4) Reserve for doubtful debts be maintained at Rs 1,800.
(5) Pawans loand is to be repaid.
Prepare:
(1) Revaluation A/c
(2) Capital A/cs of partners and
(3) Balance sheet of the new firm
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
|
To find out Net Profit or Net Loss of the business __________ account is prepared.
A ______ is an intangible asset.
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.
Carriage inward is a carriage on purchase.
State whether the following statement is True or False with reasons.
Bank loan is a current liability.
Partners are _____ liable for the debts of the firm.
If partners Current Account shows ______ balance it is shown to the liability side of Balance sheet
The expenses paid for trading purpose are known as _______ expenses.
Cash receipts which are recurring in nature are called as__________ Receipts.
Assets which are held in the business for a long period are called ______.
Answer in one sentence only.
Why partners capital is treated as long-term liability of business?
Current account always shows a debit balance.
Do you agree/disagree with the following statement:
Sold but undispatched goods must be part of valuation of closing stock.
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.
Undervaluation of Closing Stock by 10%. Closing Stock was ₹30,000 find out the value of Closing Stock.
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
From the following Trial Balance of M/S Meera and Madhav. 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) |
25,000 |
Bank overdraft |
5,000 |
Debtors |
80,500 |
Bills Payable |
12,500 |
Bills Receivable |
10,000 |
Creditors |
68,000 |
Purchases |
2,08,500 |
Sales |
3,25,000 |
Returns |
1,000 |
Outstanding Rent |
2,000 |
Carriage Inward |
3,000 |
Unpaid Wages |
1,500 |
Carriage Outwards |
4,500 |
Capital : |
|
Motor Vehicle |
55,000 |
Meera |
75,000 |
General Expenses |
1,800 |
Madhav |
75,000 |
Export Duty |
900 |
Purchase Return |
1000 |
Advertisement |
4,800 |
||
(For 3 years from 1/10/2018) |
|||
Printing & Stationery |
1,200 |
||
Drawings : |
|||
Meera |
3,500 |
||
Madhav |
2,000 |
||
Leasehold Premises |
1,10,000 |
||
Cash at Bank |
45,000 |
||
Furniture |
8,300 |
||
5,65,000 |
5,65,000 |
Adjustments :
1) Closing Stock is valued at ₹32,000.
2) Provide Provision for Doubtful Debts ₹ 2,000.
3) Create reserve for Discount on Debtors @ 3%.
4) Valued of Leasehold Premises on 31st March 2019 ₹1,00,000.
5) Outstanding Expenses Printing & Stationary ₹500.
Sucheta and Gayatri are Partners sharing Profit and Loss in the ratio 3:2. From the following Trial Balance and additional information, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March 2019 and Balance Sheet as of that date.
Trial Balance as on 31st March 2019
Particulars | Debit ₹ | Credit ₹ |
Purchases and Sales | 65,000 | 1,85,500 |
Works Manager's Salary | 2,300 | |
Capital: | ||
- Sucheta | 75,000 | |
- Gayatri | 40,000 | |
Opening Stock | 18,700 | |
Debtors and Creditors | 47,500 | 35,000 |
Wages and Salaries | 4,000 | |
Bills Receivable | 22,000 | |
Bills Payable | 27,300 | |
Discount | 400 | |
Motive Power | 1,350 | |
Custom duty | 1,500 | |
Interest | 1,300 | |
Unproductive Wages | 3,000 | |
Audit fees | 2,500 | |
Rent | 1,800 | |
Conveyance | 2,000 | |
Goodwill | 25,000 | |
Copyrights | 20,000 | |
Building | 88,000 | |
Partner (Sucheta's) Loan | 6,150 | |
Investments | 40,000 | |
Cash at Bank | 26,000 | |
3,70,650 | 3,70,650 |
Adjustments:
- Stock on 31st March 2019 was valued at ₹ 19,700.
- Goods costing ₹ 3,000 distributed as a free sample.
- Motive Power includes ₹ 500 paid for the deposit of the Power Meter.
- Depreciate Building @ 5%.
- Write of ₹ 2,000 for Bad debts and maintain R.D.D at 3% on Debtors.
- Bills Receivable included dishonored of Bill of ₹ 4,000.
Satish and Pramod are Partners. Prepare Trading Account and Profit and Loss Account for the year 31st March 2019. You have to find out Gross Profit and Net Profit only.
Trial Balance as on 31st March 2019
Debit Balance |
Amount ₹ |
Credit Balance |
Amount ₹ |
Stock (1/4/2018) |
8,700 |
Sales |
68,000 |
Purchases |
18,300 |
Dividend |
2,000 |
Wages |
1,000 |
Purchases Return |
500 |
Insurance |
800 |
Sundry Creditors |
13,000 |
Unproductive Wages |
1,400 |
10% Bank Loan (w.e.f. 1/7/2018) |
8,000 |
Warehouse Rent |
600 |
||
Carriage Outward |
1,200 |
Other Receipts |
1,000 |
Sales Return |
600 |
||
Export Duty |
1,400 |
||
Customs Duty |
800 |
||
Sundry Debtors |
40,000 |
||
Investments |
15,700 |
||
Factory Rent |
1,600 |
||
Postage & Telegram |
400 |
||
92,500 |
92,500 |
Adjustments:
1) The Closing Stock is valued at ₹ 15,400.
2) Outstanding Wages ₹ 500.
3) Create provision for Bad debts ₹ 800 and maintain R.D.D. 3% on Sundry Debtors.
4) Goods of ₹ 1,800 distributed as a free sample.
5) Goods of ₹ 2,000 were sold and delivered on 31st March 2019 but no entry is passed in the Books of Account.
Nana and Nani are Partners in Partnership Firm sharing Profits and Losses equally. You are required to give effects of Adjustments in Profit & Loss A/c and Balance Sheet with the help of the following information.
Trial Balance as on 31st March 2019
Debit Balance | Amount ₹ | Credit Balance | Amount ₹ |
Insurance | 15,000 | Capital A/c | |
Land and building | 50,000 | Nana | 50,000 |
(Addition of 20,000 w.e.f 1st July 2018) | Nani | 50,000 | |
Salaries | 5,000 | 10% Bank loan taken on 1st Oct. 2018 | 30,000 |
Export Duty | 2,500 | Interest | 1,500 |
Interest | 1,000 | Bills Payable | 8,000 |
Furniture | 40,000 | ||
Debtors | 26,000 | ||
1,39,500 | 1,39,500 |
Adjustments :
1) Gross profit amounted to ₹ 34,500.
2) Insurance Paid for 15 months w.e.f. 1. 4. 2018.
3) Depreciate Land and Building at 10% p.a. and Furniture at 5% p.a.
4) Write off ₹ 1,000 for Bad Debts and maintain R.D.D at 5% on Sundry Debtors.
5) Closing Stock is valued at ₹ 34,500.
Sun and Moon are Partners in Partnership Firm sharing Profits and Losses equally. You are required to give the effects of Adjustments with the help of the following information.
Trial Balance as on 31st March 2019
Debit Balance |
Amount ₹ |
Credit Balance |
Amount ₹ |
Land & Building |
40,000 |
Capital A/C |
|
Furniture |
18,000 |
Sun |
33,500 |
Machinery |
40,000 |
Moon |
33,500 |
(Purchased on 1/7/18) |
Current A/c: Sun |
6,000 |
|
Goodwill |
2,000 |
Sundry Creditors |
25,000 |
Wages |
2,000 |
Bank Overdraft |
10,000 |
Current A/c: Moon |
4,000 |
Reserve Fund |
5,000 |
8% Debentures |
8,000 |
Providend Fund |
5,000 |
(Purchased on 1/10/18) |
|||
Providend Fund Investment |
3,500 |
||
Stock of Postal stamps |
500 |
||
1,18,000 |
1,18,000 |
Adjustments:
1) Partners are entitled to get salary ₹ 6,000 p.a. in addition to their profit & loss sharing.
2) Depreciation on Land & Building, Furniture & Machinery @10%, 5% and 3% respectively.
3) Interest on Capital 5% p.a.
4) Closing Stock ₹ 60,743.
5) Wages included ₹ 1,000 as advance is given to workers.
6) Interest due but not paid ₹ 800.
7) Total Net Profit amounted to ₹ 38,113.
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.
Borrowed loan from Bank of Maharashtra ₹ 2,00,000 on 1st October 2019 at a rate of 15% p.a. Calculate Interest on Bank Loan for the year 2019-20 assuming that the financial year ends on 31st March, every year.
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 information, calculate Current Assets:
Debtors ₹ 60,000, Creditors ₹ 30,000, Bills payable ₹ 20,000, Stock ₹ 30,000, Loose tools ₹ 10,000, Bank overdraft ₹ 10,000.
State whether the following statement is True or False with reason:
Profit and Loss Account is a Real Account.
A ______ is an Intangible Asset.
Find odd one.
Find odd one
Find odd one.
Registration of Partnership is ______ in India.
Undervaluation of closing stock by 10%, closing stock was of ₹ 54,000. Find out the value of closing stock.
Do you agree or disagree with the following statements:
Bills receivable is a current asset.
Credit balance of Profit and Loss Suspense Account is shown in the Balance Sheet on ______ side.
Find the odd one:
Mama and Kaka are partners in partnership firm sharing profits and losses equally. You are required to prepare 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 Balances | Amount (₹) | Cebit Balances | Amount (₹) |
Insurance | 30,000 | Capital Accounts: | |
Land and Building ((Addition of ₹ 40,000 wef. 1st July, 2018)) | 1,00,000 | Mama | 1,00,000 |
Salaries | 10,000 | Kaka | 1,00,000 |
Export duty | 5,000 | 10% Bank Loan (taken on1st Oct. 2018) | 60,000 |
Interest | 2,000 | Interest | 3,000 |
Furniture | 80,000 | Bills payable | 16,000 |
Debtors | 52,000 | - | |
2,79,000 | 2,79,000 |
Adjustment:
- Gross profit amounted to ₹ 69,000.
- Prepaid insurance ₹ 7,500.
- Depreciate Land and Building at 10% p.a. and Furniture 5% p.a.
- Write ₹ 2,000 for bad debts and maintain R.D.D. at 5% on sundry debtors.
- Closing stock is valued at ₹ 69,000.
Find odd one.
Find odd one.