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.
From the following Trial Balance and adjustments of M/s Apeksha and Pratiksha; 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:
Trial Balance as on 31.03.2013
|
Particulars
|
Debit
Amount (Rs.)
|
Credit
Amount (Rs.)
|
|
Capital Accounts
|
|
|
|
Apeksha
|
|
60000
|
|
Pratiksha
|
|
35000
|
|
Purchases and Sales
|
46700
|
85000
|
|
Sundry Debtors and Creditors
|
28000
|
25000
|
|
Bills Receivable and Bills Payable.
|
9600
|
7800
|
|
Opening Stock
|
18000
|
|
|
Wages
|
9900
|
|
|
Investment
|
13500
|
|
|
Postage and Telegrams
|
3600
|
|
|
Insurance
|
1200
|
|
|
Plant and machinery
|
40700
|
|
|
Furniture
|
18000
|
|
|
Cash in hand
|
2500
|
|
|
Carriage
|
3200
|
|
|
Bad debts
|
400
|
|
|
Prepaid rent
|
7000
|
|
|
Salaries
|
10500
|
|
| |
212800
|
212800
|
Adjustments:
(1) The closing stock is valued at Rs. 31,000
(2) Outstanding wages Rs. 1,400.
(3) Depreciate furniture at 10% p.a.
(4) Insurance Rs. 500 is paid in advance.
(5) Provide for further bad debts of Rs. 1,500.
(6) Goods worth Rs. 2,000 withdrawn by Apeksha for her domestic use but not recorded in the books of account.
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
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.
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
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.
Closing stock is valued at ______.
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?
Arvind and Anand are partners sharing profits and losses in the ratio 8 : 3 : 1 Balances in their capital accounts on April 01, 2019 were, Arvind- Rs. 4,40,000 and Anand Rs. 2,60,000. As per their agreement, partners were entitled to interest on capital @ 5% p.a., and interest on drawings was to be charged @ 6% p.a. Arvind was allowed an annual salary of Rs. 35,000/- for the additional responsibilities taken up by him. Partners drawings for the year were, I Arvind Rs. 40,000 and Anand Rs. 28,000. Profit and loss account of the firm for the year ending March 31, 2020 showed a Net Loss of Rs. 32,400. Prepare Profit and Loss Appropriation Account.
