Ans. (Total Sales Rs. 136200) (III) Q. 17 The Books of Mr. Rachit on 1st Jan. 2003, disclosed the following position: Particulars Amount Particulars Amount Capital Sundry Creditors 80,000 75,000 1,55,000 Furniture Sundry creditors Stock Cash at bank 20,000 90,000 40,000 5000 1,55,000 During the year 2003, the books were imperfectly kept, but the analysis of the bank transaction reveled the following: Rs. Receipts from customers 350000 Drawings for personal expenses 60000 Payments of salaries 30000 Payments to creditors 220000 Payments of rent Miscellaneous expenses 4000 The schedules on 31-12-2003 of the debtors totaled Rs. 95,000 and of the creditors Rs. 64,000. No inventory of the was taken on 31-12-2003, but it was stated that a gross profit of 40 percent on turnover was made during the year. Prepare trading and profit and loss account for the year and a balance sheet as on 31-12-2003. Ans. (G.P. Rs. 142000, N.P. Rs. 93000, B/S Total Rs. 177000) (2010) Q. 18 Sonam Keeps his books on single entry and provides you the following information: Particulars 31-12-2006 31-12-2007 Furniture and fittings Sundry debtors Sundry creditors Prepaid expenses Outstanding expenses Cash in hand Receipts and payments in 2007; Receipts from debtors 50,000 30,000 60,000 20,000 Nil 6,000 11,000 60,000 10,000 70,000 Nil 2,000 10,000 3,000 2,10,000 Trial trial
Creditors for stationery on January 1, 2006 2000 Advance paid for stationery carried forward from 2005 200 Amount paid for stationery during the year 2006 10800 Stock of stationery on 31st December 2006 500 Creditors for stationery for 2006 1300 Advance paid for stationery on 31st December 2006 300 Q. 9 The following is the summary of cash transactions for the year 2002. Dr. Cr. Receipts Rs. Payments Rs. To Balance b/d To Entrance fees To Subscriptions: 2001 3,000 2002 13,000 2003 1,000 To sale of furniture To Sale of old furniture To Rent of library hall To Proceeds from Entertainment (net) To Special Subscription For Governor’s party 6,000 5,200 17,000 1,200 120 2,080 6,000 2,000 39,600 By Salaries By Additions to Library By Payments to Creditors By repair By Electric fittings By Printing & Stationery By Misc. expenses By Balance c/d 6,200 13,500 1,300 500 9,000 1,900 300 6,900 39,600 From the above Receipts and Payments Account prepare Income and Expenditure account. Q. 10 The following is the receipts and payments account of a charitable hospital for the year ended 31st March 2002: Receipts Rs. 000 Payments Rs. 000 To Balance b/f: Cash in hand 50 By Medicines By Honorarium to doctors 1,500 500
Cash at bank To subscriptions To Donations To Interest for full year on investments @ 7% per annum To charity show receipts 300 2,500 725 350 500 4,425 By Salaries By Sundry expenses By Equipments purchased By Charity show expenses By balances e/f: Cash in hand Cash at bank 1,375 25 750 50 25 200 4,425 Additional information On 31.3.2001 On 31.3.2002 [Rs. ‘000] [Rs. ‘000] Subscription outstanding 25 50 Subscription received in 50 25 Stock of medicines 500 750 Amounts due to suppliers of medicines 400 600 Value of equipments 1,050 1,500 of buildings 2,000 1,900 You are required to prepare income and expenditure account for the year ended 31st March, 2002 and the balance sheet as on that date. Q.11 A summary of Receipts and Payments of Bakers Club for the year 31st March, 2008 Receipts Rs. Payments Rs. To Opening Balance “ Subscription “ Donations “ Entrance Fees “ Interest “ Charity show Receipts 3,000 20,000 5,000 1,000 1 0 0 2,400 By Salaries & Rent “ Electric Charges ‘’ Sports Expenses “ Sports goods purchase ‘‘ Books purchase “ Miscellaneous Expenses “ Charity show Expenses “ Investment “ Closing balance 1,500 3 0 0 1,000 9,000 5,000 7 0 0 2,000 8,000 4,000 31,500 31,500 Following information are available at the end of the year : (i) Of the subscriptions received Rs. 500 for 2006-07 and Rs. 600 for 2008-09 but Rs. 100 is due for 2007-08.
March, 2008 and the Balance Sheet as on that date. Q.13 From the following particulars related to Anand Charitable Hospital, prepare an Income and Expenditure Account for the year ended 30th June, 08 and a Balance Sheet on that date. Receipts & Payments Account for the year 30.6.08 Dr. Cr. Receipts Rs. Payments Rs. Balance in hand on 1.7.07 Subscriptions Donations Interest on Investment @ 7% Proceeds from Annual Day 7,130 48,000 14,500 7,000 10,450 Payments for Medicines Honorarium to Medical staff Salaries to House Staff Petty Expenses Equipment Purchase Expenses for Annual Day Closing Balance (30.6.08) 30,590 9,000 27,500 4 6 0 15,000 7 5 1 3,779 87,080 87,080 Additional information : On 30.6.07(Rs.) On 30.6.08 (Rs.) Subscription Receivable Subscription Received in Advance Stock of Medicines Value of equipment Buildings Outstanding liability to Medicine suppliers 2 4 0 6 4 8,810 21,200 40,000 10,000 2 8 0 1 0 0 9,740 31,600 38,000 8,000
Rs. Rs. Salaries Printing & Stationery fees Advertising Fire Insurance Depreciation: On sports equipment Excess of income over expenditure 11500 2200 500 1600 1000 9000 14300 40100 Subscription Entrance fees Rent received 25600 10500 4000 40100 Q. 24 From the following Receipts and payments Account of Cricket Club and the additional information given, prepare the Income and Expenditure account for the year ending 31-12-99 and the Balance Sheet on that date: RECEIPTS AND PAYMENTS A/C for the year ending 31-12-1999 To Bal. b/d Cash Bank Deposit @ 6% To Subscription (including Rs. 6,000 for 1998) To Entrance Fees To Donation To Interest on Fixed Deposits Rs. 3,520 27,380 30,000 40,000 2,750 5,010 900 By Maintenance By Crockery Purchased By Expenses By salaries By Conveyance By Upkeep of Lawns By Postage Stamps By Purchase of Cricket goods By Sundry Expenses By Investments Rs. 6,820 2,650 13,240 11,000 820 4,240 1,050 9,720 2,000 5,700
4,35,850 4,35,850 Additional Information 31-3-2002 31-3-2003 Rs. Rs. (i) Subscription due 600 800 (ii)Subscription received in advance 320 500 (iii)Electricity and outstanding 460 575 (iv)Stock of medicines 39,100 48,750 (v)Estimated value of equipments 58,000 69,500 (vi)Furniture cost less depreciation 1, 05,000 94,500 (vii)Land -- 50,000 (viii)Interest accrued on investments in 11% Bonds costing Rs. 5, 12,500 (face value Rs. 5, 00,000) 13,750 13,750 (ix)Cash in hand 1,700 800 (x)Cash at bank 45,000 ? 3. FINAL ACCOUNT Q. 1 From the following Balance of Mr. Gupta , Prepare Trading, Profit & Loss Account for the year ending on 31st March 2008 and Balance sheet as on that date: Particulars Debit Credit Capital and Drawing Opening stock Purchase and Debtors and Creditors Discounts Commission 100000 150000 840000 240000 32000 24000 800000 1620000 150000
Creditors include a balance of Rs. 4,000 to the credit of Mr. B in respect of it has been decided and settled with the party to pay only Rs. 1,000. Sales include goods worth Rs. 15,000 sent to Ram and Co. on approval and remaining unsold as on 31st March 1989 the cost of goods was Rs. 10,000 Provision for bad debts is to be created at 5% on Sundry Debtors. Depreciate Furniture by 15% and Car by 20%. The Salesmen are entitled to a commission of 10% on sales. Q. 8 Given below is the balance of Mr. Alok, a trader, as on 31st March, 2006: Particulars Debit Credit Cash in hand Land and building and Machinery Debtors and Creditors on 1.4.2005 15% investment on 1.4.2005 Purchase and Bank Overdraft Wages Salaries Rent, Rates and Taxes Bad Debts Drawings Bills receivable and bills payable Carriage inwards Custom duty on purchases Life insurance premium Advertisement Provision for doubtful debts Interest on investment Trade expenses Furniture Sales tax payable Capital 5000 80000 50000 10000 20000 28000 16000 15000 6000 5000 15000 6000 16000 4000 30000 11000 20000 457000 40000 190000 20000 2000 2000 25000 157000 457000 Additional informations: on 31.3.2006 was valued at Rs. 40000. Included in debtors are Rs. 8000 due from Ram and included in creditors are Rs. 6000 due to Ram. Bills receivable include a bill of Rs. 5000 received from Varun, which has been dishonored. Trial
Manager is entitled to a commission of 5% on net profits after charging his commission. Q. 10 From the following balance of a trader on 31st March, 2005, prepare Trading and Profit and Loss account for the year ending 31st March, 2005 and Balance Sheet as at that date after giving effect to the under mentioned adjustments: Debit Balances Rs. Credit Balance Rs. Drawings Wages Stock Loan to X Rent General Expenses Investments Purchases Freight and cartage Goodwill Bills Receivable Rates and Taxes Sales Returns Insurance Cash and Bank Balance Postage and Telegram Land and Building Plant and machinery Sundry Debtors Packing charges Bad Debts 6000 12800 4000 5000 1480 60000 160000 2100 40000 6200 1800 2100 900 3700 3800 25000 10000 16500 400 1280 378560 Bank Overdraft Interest on investment Bills Payable Interest on loan to X Capital Reserve for Bad Debts Sales Sundry Creditors 5800 4600 320 100000 250 230000 378560 Adjustments:
Increase the bad debts provision to 6% of Debtors. On 31st March, 2003 Rs. 570 was outstanding for Salaries. Rent Receivable Rs. 200. Interest on Capital at 5%. On 31st March, 2003 stock is valued at Rs. 14290. Unexpired insurance Rs. 240. Q. 12 From the following Balance of Mr. S, You are required to prepare Final Account for the year ended 31st March, 2003 after making the necessary adjustments: Particulars Debit Credit Capital and Drawings Account Freehold Property Plant and Machinery Salaries Printing and stationery Furniture and Fixtures Discount Bills payable Debtors and Creditors Insurance Bad Office Rent Loose Tools Provision for doubtful debts Loan to Sudhir @ 10% on 1.10.2002 Interest on loan to Sudhir Cash at Bank Cash In hand Stock 31.3.2003 Trading profits Outstanding wages on 31.3.2003 10000 60000 100000 14000 2000 4000 1500 - 25000 3000 600 2600 2000 - 40000 - 25000 10500 74000 - - 200000 - - - - - - 5700 - - - - 4800 - 1000 - - - 117200 500 Trial
Capital C’s Loan A/c (taken on 1.10.2002@ 18%p.a.) Insurance Commission Plant and Machinery Furniture and Fixtures Bills Receivable Sundry Debtors Sundry Creditors Cash at Bank Office equipment Payable Expenses Payable - - 1500 - 50000 20000 20000 40000 - 16000 12000 - - 570850 115000 - 1500 - - - - 25000 - - 12350 3300 570850 The following adjustments be taken care of: Depreciate Land and Building @ 6%, Plant and Machinery @ 10% , office Equipment @ 20% and furniture and fixtures @ 15%. Create a provision for bad and doubtful at 2% on debtors. Insurance premium includes Rs. 250 paid in advance. Provide interest on capital @ 10% p.a. and salary to Mr. B Rs. 15000 p.a. 10% of final profit is to be kept in general reserve. Q. 15 From the following Balance of Mr. Bharat , Prepare Trading, Profit & Loss Account for the year ending on 31st March 2001 and Balance sheet as on that date: Particulars Credit Capital and Drawing Opening stock Purchase and sales Debtors and Creditors Discounts Commission Returns Salaries Rent, Rates and taxes Postage, Telegram and Telephone 50000 75000 420000 120000 16000 16000 120000 40000 25000 400000 810000 75000 18000 20000
Motor Car Sundry Creditors Loan Reserve for bad debts Purchases Purchase returns Sales Sales returns Salaries Rent for godown Interest on loan Rates and taxes Discount allowed to debtors Discount received from creditors Freight on purchases Carriage outwards Drawings Printing and stationery Electric charges Insurance premium General office expenses Bad debts Bank charges Motor car expenses Capital account 20000 - - - 140000 - - 4200 11000 5500 2700 2100 2400 - 1200 2000 12000 1800 2200 5500 3000 2000 1600 3600 - 472200 - 43000 30000 3000 - 2600 230000 - - - - - - 1600 - - - - - - - - - - 162000 472200 Prepare Trading and Profit and Loss account for the year ended 31.3.2001 and the Balance sheet as on that date after making provision for the following: Depreciate Building by 5%, Furniture and Fixture by 10%, Office Equipment by 15% and Motor car by 20%. Value of stock at the close of the years was Rs. 44000. Reserve for bad debts is to be maintained at 5% of sundry debtors. Insurance premium includes Rs. 4000 paid towards proprietor’s life insurance policy and the balance of the insurance charges cover the period from 1.4.2000 to 30.6.2001. 17. From the following Balance of Mr. Gaurav Singh for the year ending 31.3.2000 and additional information given, prepare Trading and Profit and Loss account and Balance Sheet as on 31.3.2000: Particulars Credit Opening stock Capital Debtors and Creditors - 75000 - 464000 43750
Furniture Building Machinery Capital Bad debts Bad debts reserve Debtors and Creditors Stock (1.1.2001) Purchases and Sales Bank overdraft Returns Advertisement Interest Cash Commission Tax and Insurance General expenses Salary 640 7500 6250 - 125 - 3800 3460 5475 - 200 450 118 650 - 1250 782 3300 34000 - - - 12500 - 200 2500 - 15450 2850 125 - - - 375 - - - 34000 Stock on 31st December , 2001 was valued at Rs. 3250. Depreciate building at 5%, furniture at 10% and machinery at 20%. Interest Rs. 85 is payable on bank overdraft. Salary Rs. 300 and tax Rs. 120 are outstanding. Insurance prepaid is Rs. 100 and one third of the commission is received in advance. Furniture purchased in January 2001 worth Rs. 100 is included in purchases. Write off Rs. 100 as further bad debts and reserve for doubtful debts is to be made equal to 5% on debtors. 19.
cash daily to the head office. All expenses are paid by the head office except petty expenses which are met by the branch Manager. From the following particulars , you are required to draw up branch account as it would appear in the books of the head office, i.e. Modern shoe store: Stock on January 1, 2006 (invoice price) Sundry debtors on January 1, 2006 Cash in hand on January 1, 2006 Office furniture on January 1, 2006 Goods supplied by the head office (invoice price) returned to head office Goods returned by debtors Cash received from debtors Cash sales Credit Discount allowed Expenses paid by the head office: Rent Salary Stationery and printing expenses paid by the branch Manager Provide depreciation on furniture @ 10% p.a. Stock on 31.12.2006 (invoice price) Rs. 1200 2400 300 Rs. 15000 9000 400 1200 80000 1000 480 30000 30000 300 3900 280 14000 Q. 9 From the following particulars , prepare Delhi Branch Account showing profit or Loss from the branch in the books of Kolkata head office: Opening stock at the branch 7,500 Goods sent to branch 22,500 Expenses: Salaries 2,500 Rent 800 Other expenses 188 Sales (cash) 30,000 Closing stock could not be ascertained , but it is known that the branch usually sells at cost plus 20 percent. The Branch Manager is entitled to a commission of 5% on the profit of the Branch before charging such commission. Q. 10 A trader has its branch at Kolkata to which the goods are invoiced at cost plus 20%. Prepare Branch account in the books of head office from the following :
C 10,000 48,500 56,000 Furniture Sundry assets 1,200 20,000 56,000 It is agreed that: A is to take over all the furniture at Rs. 1,000 and Debtors amounting to Rs.20,200 at Rs.18,000. A also agrees to pay the creditors. B is to take over all the stock at book value and some of the Sundry Assets at Rs. 7,200 (being book value less 10%). C is to take over the remaining Sundry Assets at 90% of the book value and assume responsibility for the discharge of the loan. The remaining debtors were over by a Debt collecting agency at 80% of book value . The expenses of dissolution amounted to rs.200. Prepare Realization Account , Bank Account and Capital Accounts of the partners. Q .4 P,Q and R are partners sharing profits and losses equally. On 31st March, 2002. Their balance sheet stood as follows: Liabilities Amount Assets Amount Bills Payable Creditors Loan from Q General Reserve P’s current Account Q’s current Account P’s capital Account Q’s Capital Account R’s capital Account 16,000 1,19,000 25,000 30,000 15,000 15,000 2,00,000 1,00,000 1,00,000 6,20,000 Cash at Bank Debtors Stock Furniture Machinery R’s current Account 15,000 1,25,000 2,90,000 40,000 1,20,000 30,000 6,20,000 The firm was dissolved on the above mentioned date. P agreed to pay creditors at par. Q took over the entire furniture for Rs.36,000. The remaining assets were sold for Rs. 5,53,000. Bills payable were retired for a discount Rs. 100 received for payment before the due dates of maturity expenses of dissolution amounted to Rs. 1,200. Prepare important ledger accounts and cash book. The current accounts and the capital accounts may be prepared in columnar form. Q .5 A,B and C are partners sharing profits and losses as to 2:2:1. their Balance sheet as at 30th September 2002 is as follows: Liabilities Amount Assets Amount Sundry creditors 4,000 Bank 5,000