Micheal Vaz solutions for Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board chapter 2 - Partnership Final Accounts [Latest edition]

Answer in one sentence only. 
What is the Balance Sheet?

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State the meaning of debit balance of Trading Account.

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When is partner’s current account opened?

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To which account Gross Profit transferred?

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What is closing stock?

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How is closing stock valued?

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What is Final Accounts?

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What do you mean by direct expenses?

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What do you mean by indirect expenses?

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What do you mean by accrued Income?

Answer the following question in one sentence.
What is Trial Balance?

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What is bad debts?

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In the absence of partnership deed, what is profit sharing ratio of the partners?

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What do you mean by carriage inward?

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What do you mean by freight?

Give the word / term or phrase which can substitute the following statement.
A statement showing financial position of the business on a particular date.

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The amount which is not recoverable from debtors.

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Stock in hand at the end of the accounting year.

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The transport expenses incurred to carry the goods purchased by the firm.

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Income which is received before its due date.

Write the word/phrase/term, which can substitute the following sentence.

Debit balance of Trading Account.

Give the word / term or phrase which can substitute the following statement.

The credit balance of Trading Account.

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A provision which is created on sundry debtors.

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The amount withdrawn by the partners from the business for their personal use.

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The accounts which are prepared at the end of each financial year.

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Expenses which are paid before due.

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The statement showing list of all ledger balances.

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Credit balance of Profit and Loss Account.

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Expenses which are due but not paid at the end of the year.

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Assets which are held in the business for a long period.

Select the most appropriate alternative from those given below and rewrite the statement.

The gross profit is transferred to _________________ account.

Select the most appropriate alternative from those given below and rewrite the statement.

Wages paid for installation of machinery should be debited to _________________ account.

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 those given below and rewrite the statement.

A statement showing financial position of the business is called as _________________.

Select the most appropriate alternative from those given below and rewrite the statement.

To find out net profit or net loss of the business _________________ account is prepared.

Select the most appropriate alternative from those given below and rewrite the statement.

A_________________ is an intangible asset.

Select the most appropriate alternative from those given below and rewrite the statement.

Trading account is prepared on the basis of __________________ expenses.

Select the most appropriate alternative from those given below and rewrite the statement.

The interest on drawings is transferred to _________________ side of the profit and loss account.

Select the most appropriate alternative from those given below and rewrite the statement.

Final accounts are prepared on the basis of _________________ and adjustments.

Select the most appropriate alternative from those given below and rewrite the statement.

_________________ is the list of all ledger balances.

Select the most appropriate alternative from those given below and rewrite the statement.

Return outward are deducted from __________________.

Select the most appropriate alternative from those given below and rewrite the statement.

The withdrawals of partner from the business for their personal use is called as……………..

Select the most appropriate alternative from those given below and rewrite the statement.

Income received in advance is shown on the __________________.

Select the most appropriate alternative from those given below and rewrite the statement.

Prepaid expenses are shown on the __________________ side of the balance sheet.

State whether the following statement is True or False.

All direct expenses are debited to Trading account.

State whether the following statement is True or False.

The Balance Sheet is a nominal account.

State whether the following statement is True or False.

Discount allowed to debtors is called as bad debts.

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.

The interest on drawings is an income of the firm.

State whether the following statement is True or False.

The interest on capital is an income of the firm.

State whether the following statement is True or False.

Trading account is a nominal account.

State whether the following statement is True or False.

Prepaid expenses are shown on the asset side of the Balance Sheet.

State whether the following statement is True or False.

Closing stock is always valued at market price.

State whether the following statement is True or False. 

Outstanding expenses are shown on the liability side of the Balance Sheet.

State whether the following statement is True or False.

Partners must share profits and losses equally.

State whether the following statement is True or False.

Trial Balance is the base of Final account.

State whether the following statement is True or False.

Debit balance of Trading account shows gross profit.

State whether the following statement is True or False.

Credit balance of profit and loss account shows net profit of the business.

State whether the following statement is True or False.

Return Inward is deducted from purchases.

From the following Trading Balance of M/s Ajay and Vijay you are required to prepared Trading and Profit and Loss Account for the year ended 31st March, 2009 and Balance Sheet as on that date 

            Trial Balance as on 31st March , 2009

Adjustments:

1) The closing stock is valued at Rs 31,000.

2) Outstanding expenses were wages Rs. 1,400, salaries Rs 800.

3) Depreciate Plant and Machinery by 10%.

4) Insurance at Rs 500 is paid in advance.

5) Provide for further bad debts of Rs 1,500.

6) Commission due but not received Rs 1,200.

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:

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.

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

Adjustments:

1. Closing stock: Cost price Rs 25,000 and market price Rs 30,000.
2. An amount of Rs 3,500 spent for repairs to Building is debited to Building account.
3. Depreciate plant and Machinery and Building at 5% p.a.
4. Goods of Rs 750 taken by Roshan for this personal use.
5. Included in wages advances given to workers Rs 3,000.
6. 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 31^st March, 2012

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.

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 31^st March, 2011

On 1^st 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.

Given below is the Trial Balance of M/s Seeta and Geeta as on 31^st March, 2010. You are required to prepare Trading and Profit and Loss Account for the year ended 31^st March, 2010 and Balance Sheet on that date.

                   Trial Balance as on 31^st March, 2010

Adjustments:

1) Stock on hand on 31st March, 2010 was valued at Rs 80,000.

2) Goods costing Rs 16,000 destroyed by fire and Insurance Company admitted a claim of Rs 13,000.

3) Provide for outstanding expenses: Salaries Rs 3,000, Wages Rs 2,400.

4) Depreciate Machinery at 10% p.a. Land and Building at 5% p.a.

5) Create Reserve for Bad and doubtful debts at 5% on Sundry Debtors.

6) Legal charges paid in advance Rs 1,200.

7) Provide interest on capital at 8% p.a.

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 31^st March, 2012

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.

From the following Trial Balance of M/s Mahesh and Umesh, 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. Profit sharing ratio of Mahesh and Umesh was 3/5th and 2/5th respectively.

Adjustments:

1) Stock on hand on 31st March, 2013 was valued at Rs 76,000.

2) Interest on partner’s capital at 5% p.a. was allowed.

3) Goods worth Rs 2,000 and Rs 1,500 withdrawn by Mahesh and Umesh respectively for their personal use.

4) Mahesh is entitled to get salary of Rs 6,500 and Umesh is to be given 20% commission on sales.

5) Rs. 2,500 due from customer is not recoverable.

6) Depreciate Motor Van at 8% p.a. and Building at 7% p.a.

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 31^st March, 2010

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 31^st March, 2013

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.