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Question
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.
Solution
In the books of Gunjal Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
Joint Venture A/c |
Dr. |
|
4,00,000 |
|
|
To Rokadimal |
|
|
|
4,00,000 |
|
(Goods sent for Joint Venture) |
|
|
|
|
|
|
|
|
|
|
|
Joint Venture A/c |
Dr. |
|
11,500 |
|
|
To Rokadimal |
|
|
|
11,500 |
|
(Expenses paid) |
|
|
|
|
|
|
|
|
|
|
|
Rokadimal A/c |
Dr. |
|
95,000 |
|
|
To Bills Payable A/c |
|
|
|
95,000 |
|
(Acceptance given) |
|
|
|
|
|
|
|
|
|
|
|
Joint Venture A/c |
Dr. |
|
3,000 |
|
|
To Discount A/c |
|
|
|
3,000 |
|
(Discount charges charged to Joint venture) |
|
|
|
|
|
|
|
|
|
|
|
Joint Venture A/c |
Dr. |
|
13,500 |
|
|
To Bank A/c |
|
|
|
13,500 |
|
(Expenses paid) |
|
|
|
|
|
|
|
|
|
|
|
Joint Bank A/c |
Dr. |
|
5,00,000 |
|
|
To Joint Venture A/c |
|
|
|
5,00,000 |
|
(Goods sold) |
|
|
|
|
|
|
|
|
|
|
|
Joint Venture A/c |
Dr. |
|
7,000 |
|
|
To Bank A/c |
|
|
|
7,000 |
|
(Selling expenses paid) |
|
|
|
|
|
|
|
|
|
|
|
Joint Venture A/c |
Dr. |
|
25,000 |
|
|
To Gunjal’s A/c |
|
|
|
25,000 |
|
(Commission charged in Joint Venture) |
|
|
|
|
|
|
|
|
|
|
|
Joint Venture A/c |
Dr. |
|
40,000 |
|
|
To Rokadimal |
|
|
|
32,000 |
|
To Profit & Loss A/c |
|
|
|
8,000 |
|
(Profit shared on Joint Venture) |
|
|
|
|
|
|
|
|
|
|
|
Rokadimal |
Dr. |
|
1,48,500 |
|
|
To Bank A/c |
|
|
|
1,48,500 |
|
(Final Payment made to Rokadimal) |
|
|
|
|
Working Notes:
1. Calculation of commission on sale
\[\text{Commission on Sale} = 5, 00, 000 \times \frac{5}{100} = Rs 25,000\]
2.Calculation of profit and distribution amongst the co-venturers
\[\begin{array}{ccl}Profit & = & 5, 00, 000 - 4, 00, 000 - 11, 500 - 3, 000 - 13, 500 - 7, 000 - 25, 000 \\ = & 40, 000\end{array}\]
3. Calculation of final payment to Rokadimal by Gunjal
Gunjal’s Account |
|||||
Dr. |
Cr. |
||||
Date |
Particulars |
Amount (Rs) |
Date |
Particulars |
Amount (Rs) |
|
Joint Bank (Final Payment) |
1,48,500 |
|
Joint Venture (Commission) |
25,000 |
|
|
|
|
Joint Venture (Expenses) |
13,500 |
|
|
|
|
Joint Venture (Selling Expenses) |
7,000 |
|
|
|
|
Bills Receivable |
95,000 |
|
|
|
|
Joint Venture (Profit) |
8,000 |
|
|
1,48,500 |
|
|
1,48,500 |
APPEARS IN
RELATED QUESTIONS
Sanjay and Sudhir are partners sharing profit and losses in the ratio 3: 2. The Trial Balance of the firm on 31st March, 2010 was follows:
Trial Balance as on 31st March, 2010 | |||
Particulars | Amount (Rs.) |
Particulars | Amount (Rs.) |
Opening stock | 20,000 | Capital A/c's | |
Purchases | 30,000 | Sanjay | 40,000 |
Debtors | 12,000 | Sudhir | 30,000 |
Wages | 5,000 | Sales | 70,000 |
Salaries | 10,000 | Sundry Creditors | 21,000 |
Land and building | 30,000 | Bills Payable | 20,000 |
Plant and machinery | 25,000 | Discount | 5,000 |
Furniture | 16,000 | Outstanding Rent | 1,500 |
Advertisement (for 2 years) | 6,000 | ||
Bills Receivable | 8,000 | ||
Insurance | 2,000 | ||
Drawings: | |||
Sanjay | 2,000 | ||
Sudhir | 3,000 | ||
Cash in hand | 5,500 | ||
Rent | 10,000 | ||
Power and Fuel | 3,000 | ||
1,87,500 | 1,87,500 |
Adjustments:
1) Stock on hand on 31st March, 2010 was at Rs. 35,000.
2) Write off Rs. 2,000, for further Bad debts and maintain R.D.D. at 5% on debtors.
3) Depreciate Land and Building at 5% and Machinery at 10%.
4) Outstanding expenses were wages Rs 2,000 and salary Rs 1,000.
5) Credit purchases amounted to Rs 4,000 were not recorded in the books of accounts.
6) Provide interest on Partners Capital at 5% p.a.
From the above Trial Balance and adjustments prepare Trading and Profit and Loss Account for the year ended 31st March, 2010 and Balance Sheet as on that data.
Mohini and Rohini are in partnership firm 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, 2010 and Balance Sheet as on that date.
Trial Balance as on 31st March, 2010
Particulars | Debit Amount Rs. | Credit Amount Rs |
Partner’s Capital A/c- | ||
Mohini | 120000 | |
Rohini | 90000 | |
Purchases and Sales | 220000 | 430000 |
Sundry Debtors and Creditors | 45000 | 35000 |
Bills Receivable and Bills Payable | 45000 | 50000 |
Discount | 4000 | 3500 |
Opening stock | 25000 | |
Wages and Salaries | 23000 | |
Manufacturing Expenses | 9,000 | |
Factory Insurances |
5,000 |
|
Factory Building | 1,40,000 | |
Plant and Machinery |
75,000 |
|
Advertisement (for 2years w.e.f. 1st Jan. 2010) | 10,000 | |
Salaries and Wages |
45,000 |
|
Warehouse rent |
6,000 |
|
Import duty |
11,500 |
|
Cash in hand | 5,000 | |
10% Government Bond (Purchased on 1st July 2009) | 60000 | |
728500 | 728500 |
Adjustments:
1) Closing stock was valued at market price Rs 92,000 which is 15% above its cost price.
2) Goods costing Rs 3,000 purchased and received on 31st March, 2010 were not recorded in purchase book.
3) Depreciate Machinery at 10% p.a.
4) Outstanding Wages were Rs 2,500.
5) Goods of Rs 2,000 were taken by Mohini for personal use but no entry was made in the books of account.
6) Maintain R.D.D at 5% on Sundry Debtors.
From the following Trial Balance of M/s Sanjay and Vijay, 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 consideration the adjustments given below.
Trial Balance as on 31st March, 2013
Debit Balance |
Amount
Rs
|
Credit Balance |
Amount
Rs
|
Salaries and wages | 12000 | Sales | 110000 |
Postage and Telegram | 1,750 | Sundry Creditors | 72700 |
Opening Stock | 23,500 | Bills Payable | 40000 |
Plant and Machinery | 70,000 | 10% Bank loan (Taken on 1st Oct 2012) | 60000 |
Advertisement | 5,000 | Outstanding Audit fees | 5900 |
Import duty | 2,100 | Capital A/c- | |
Bad debts | 1000 | Sanjay | 45000 |
Purchases | 98500 | Vijay | 45000 |
Sundry Debtors | 45800 | ||
Bills Receivable | 16700 | ||
Carriage outward | 1800 | ||
Wages and stationery (Note 2) | 14000 | ||
Printing and stationery | 4600 | ||
Cash in hand | 1850 | ||
Leasehold Premises | 80000 | ||
378600 | 378600 |
Adjustments:
1) Closing stock was valued at Rs 30,000.
2) Postage stamps of Rs 250 and stationery of Rs 400 are unused.
3) Goods of Rs 2,500 distributed as free samples.
4) Leasehold property is to be run for 10 years w.e.f. 1st October, 2012.
5) Depreciate Plant and Machinery at 10% p.a.
6) Mr. Rajan, our customer become insolvent and could not pay his debts of Rs 1,500.
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.
Following is the Balance sheet of Harsha and Versha's firm on 31st March, 2016. They share profit and losses in the ratio of 3 : 2.
Balance sheet as on 31st March, 2016
Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
Capital A/c: | Land & building | 2,00,000 | |
Harsha | 2,80,000 | Furniture | 76,000 |
Varsha | 2,80,000 | Sundry debtors | 3,00,000 |
Sundry creditors | 4,00,000 | Stock | 1,60,000 |
Cash at bank | 2,24,000 | ||
9,60,000 | 9,60,000 |
They decided to admit Asha on 1st April, 2016, into partnership on the following terms:
1) Asha should bring Rs. 80,000 as her share of goodwill, which is to be retained in the business.
2) She should bring Rs. 1,00,000 as her capital for 1/4th share in future profits.
3) land and building to be valued at Rs. 2,40,000 and furniture be reduced by 10%.
4) A provision of 5% on debetors to be made for doubtful debts.
5) The stock is to be taken at a value of Rs. 2,00,000.
6) The excess of capital of Harsha and Varsha over their due proportion of sharing profits in the firm is to be transferred to their respective loan accounts.
Prepare :
Profit and Loss Adjustment Account, Partner's Capital Account and new Balance Sheet of the 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.
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.
Prepaid expenses are treated as liabilities.
State whether the following statement is True or False with reasons.
Balance Sheet is an Account.
State whether the following statement is True or False with reasons.
Wages paid for the installation of Machinery is a Revenue expenditure.
State whether the following statement is True or False with reasons.
Goodwill is an intangible asset.
State whether the following statement is True or False with reasons.
Bank loan is a current liability.
Find odd one.
Find odd one.
If partners Current Account shows ______ balance it is shown to the liability side of Balance sheet
Return outward are deducted from ______.
Expenses which are paid before due date are called as _____.
Answer in one sentence only.
As per which principle of accounting, closing stock is valued at cost price or at market price whichever is less?
Answer in one sentence only.
Why wages paid for installation of machinery are not shown in Trading Account?
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:
Carriage Inward is a selling and distribution overhead.
Do you agree/disagree with the following statement:
Free distribution of goods is debited to the trading account.
Calculate 12.5 % P.A. depreciation on Furniture :
(a) on ₹ 2,20,000 for 1 year
(b) on ₹ 10,000 for 6 months
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 Mitesh and Mangesh, 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 as on (1/4/2018) | 25,000 | Sundry Creditors | 38,000 |
Building | 48,500 | Sales | 1,75,000 |
Carriage | 1,780 | Capital: | |
Factory Insurance | 2,700 | Mitesh | 1,50,000 |
Postage | 1,600 | Mangesh | 50,000 |
Bills Receivable | 13,700 | Outstanding Salaries | 2,000 |
Sundry Debtors | 52,200 | Bills Payable | 18,000 |
Return Inward | 1,600 | Return outword | 1,800 |
Purchases | 68,900 | ||
Audit fees | 1,800 | Current A/c: | |
Loose tools | 32,000 | Mitesh | 3,000 |
Manufacturing Expenses | 1,820 | Mangesh | 2,000 |
Electricity Charges | 2,600 | ||
General Expenses | 3,400 | ||
Export duty | 1,000 | ||
Cash in hand | 75,000 | ||
Bank Balance | 29,000 | ||
Conveyance | 4,100 | ||
Furniture | 64,000 | ||
Salaries | 2,000 | ||
Rent, Rate & Taxes | 3,700 | ||
Drawings: | |||
Mitesh | 1,200 | ||
Mangesh | 2,200 | ||
4,39,800 | 4,39,800 |
Adjustments :
1) Mitesh and Mangesh are sharing Profit and losses in the ratio 3: 1.
2) Partners are entitled to get Commission @ 1% each on Gross Profit.
3) The closing stock is valued at ₹ 23,700.
4) Outstanding Expenses - Audit fees ₹ 400; carriage ₹ 600.
5) The building is valued at ₹ 46,500.
6) Furniture is depreciated by 5%.
7) Provide Interest on Partner's capital at 2.5% pa.
8) Goods of ₹ 900 were taken by Mangesh for his personal use.
9) Write off ₹ 1,000 as Bad Debts and maintain R.D.D at 3% on Sundry Debtors.
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.
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%.
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.
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.
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.
A ______ is an Intangible Asset.
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 ______.
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.
Advertisement expense ₹ 80,000 paid for 2 years from 1st Jan. 2022. Calculate prepaid advertisement expense for the year ended on 31st March, 2022.
Provident fund amount is a ______ for the firm.
Find odd one.
Find odd one.
Find odd one.
Find the odd one.
Find odd one.