fybcon acc finance 0001 new

7/27/2019 Fybcon Acc Finance 0001 NEW

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Seri.es

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<lE'oool

600I,ol

120

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1

I

Ils.9s8 |

,o,rooI

,,rooI

a,oooI

zo,ooo

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u,rr, I

6,000I

zooI

200I

8ooI

40.000 I- ,;.6e1--'- ------1

--_l

Accountancg & Finanrciat Mgmt' - F'Y'B'Com' (Sem' - I)

(Bf Short Notes:

(il Maqufacturing A/c(iif Trading and Profit & Loss A/c

(iii) Balance Sheet

iivi eajusting & Closing entries i

(ulslmpleSumlFromthefollowingparticulars,PrepareaManufacturingI;o."t f* the lrear endlug 31'3'2oo7'

,

frf fSi=rtt-""tl"rom

the following particulars prepare Manufacturing and

Trading Account for the year ended 319I1-U9O7'

*e. eSSICNMENTS: (Practical Aspect)

5,000

3,000

10,000

3,500

3,500

8,000

50,000

35,000

3,000

2,500

1,500

3,500

5,500

2,500

8004,200

2,500

Factory Rent

Repairs to Factory Building

Repairs to Plant

Factory Manager's Salary

Repairs to Office Building

(Ans: Cost of Ptod-"dg--{j,07,999)

21,000

9,000

20,000

2,50,0002,000

1,500

22,000

1,02,000

5,000

3,000

28,000

Raw Materials

Work in Progtess

Finished Goods

Sales

Factory Rent

Purchase Returns @aw Materials)

Manufacturing Wages

Purchase of Raw Materials

Carriage on Raw Materials



Senes

crt

<lEpool

600I,,I

120

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I

1

I

Ils-9s8 |

,0,*ooI

,,rooI

8,000I

zo,ooo

!

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6,000I

zooI

200I

8ooI

40.000 I

-n4.6lp1--'- -------1

--_l

Accountancg & Finanrciat Mgmt' - F'Y'B'Com' (Sem' - I)

(Bf Short Notes:

(i| Manufacturing A/c(iif Trading and Profit & Loss A/c

(iii) Balance Sheet

iivi eajustlng & Closing entries i" M"t"'f""t"ti"g Fild A""o,'il

(ulslmpleSumlFromthefollowingparticulars'PrepareaManufacturingI;o."t f* the lrear endlng 3l.'3'2oo7'

,

frf f$i=r&-""t]"rom

the following particulars prepare Manufacturing and

Trading Account for the year ended 31e I1-U9O7'

*e. ASSICNMENTS: (Practical Aspect)

5,000

3,000

10,000

3,500

3,500

8,000

50,000

35,000

3,000

2,500

1,500

3,500

5,500

2,500

8004,200

2,500

Factory Rent

Repairs to Factory Building

Repairs to Plant

Factory Manager's Salary

Repairs to Office Building

(Ans: Cost of Ptod-"do--jj,07,999)

21,000

9,000

20,000

2,50,0002,000

1,500

22,000

1,02,000

5,000

3,000

28,000

Raw Materials

Work in Progtess

Finished Goods

Sales

Factory Rent

Purchase Returns @aw Materials)

Manufacturing Wages


Carriage on Raw Materials



162 Reliable Series

Finished Goods 44,000

Taxes & Insurance

(Ans. Cost of Production - < 1,18,500/-, Gross Profit t 1,52,500)

(31 lSlmple Suml From the following patrieulars, prepare Manufacturing endTradtng Account for the year ended 31st March, 2OO7.

Particulars (Opening Stock:

Raw Materials

Work in Progress

Finished Goods

Closing Stock:

Raw Materials

Work in Progress

Finished Goods

Purchases:Raw Materials

Finished Goods

Purchase Returns:

Raw Materials

Finished Goods

Carriage Inward:'On Raw Materials

On Finished Goods

Productive Wages

Rent (1/4 Factory)

Factory Insurance

Power & Fuel

Packing Materials (productive)

Machinery RepairsDepreciation on Machinery

Stores consumed

Sales

Sales Retum

Freight:

On Raw Materials Purchased

On Finished Goods Purcha^sed

70,000

50,000

1,0s,000

45,500

25,000

1,20,000

3,03,000

1,22,000

6,000

6,500

3,000

1,500

28,000

80,000

4,000

8,000

2,000

3,2504,250

10,000

7,60,000

17,500

7,500

1 000

(Ans. Cost of Production-( 4,36,5001-; Gross Profit-t 2,O1,000/-)

(4| lSimple Suml From following partlculars, prepare a Manufacturlng and aTrading Account for the year ended 31st March, 2OO7.

Amu

IwtEFlCeht

lkeln"nnlru"tlc-iarlsrrolsrror

lp.er*lfuettI r"r".ti

0

cost 1

I{

(

E;t_I

=Capitlcred.i

lN"t s

luir"lnaa t

lcoo.IFactc

lMacl

l'"',

lon,I Repr

lRent

lr'."0

larxt

Is'o'

I

loet

l-*h=

Particulars (Stock (1.4.2006):

Raw Materials

Work in Progress

Finished Goods

Stock (31.3.2007):

Raw Materials

Work in Progress

Finished Goods

Purcha^se of Raw Materials

10,000

8,000

9,000

6,000

2,500

5,000

82-000



and

I

I

|

|

|

I

|

I

I

I

6,000 |

6,500I

,,00,I

t,soo I

I

I

4,000I

8,000 |

z,oooI

3,250 |

+,zsoI

I

|

I

I

z,sooI

r.ooo I

and a

I

|

8,000|

9,000

|

6,000I

z,soo I

s,oooI

|

Accountancg & Financial Mgmt. - F.Y.B.Com. (Sem. - I)

(Note: Goods are transferred from production department to sales department atcost plus 207o)

AdJustments:(al Outstanding Wages < 3,000/-(bl Prepaid Power & Fuel < 5OOl-.

(Ans: Cost of Production - t 7,44,OOO I -; Factory Profit - < 24,OOO (2Oo/o on 1,20,000,GrossProfit-< 12,500.)

(51 lNlocation of Exrrenses / Outstandiag Exp. / Interest on Loan &Investment givenl From the followiag particulars prepare aManufacturing A/c, Trading and Profit and Loss A/c for the year ended31st December, 1989 and a Balance Sheet as on that date of Mr.Chanakya aad also pass AdJusting & Closing entries.

Wages

Carriage Inward (Materials)

Purchase Return (Materials)

Royalty on ProductionPurchased of Finished Goods

Carriage of Finished Goods

Sales

Sales Refurn

Depreciation on Plant & Machinery

Fuel & Power

18,000

1,000

2,000

l,o0o8,000

500

1,74,000

5,000

4,000

2,500

Particulars

Capital Account

Creditors

Net Sales

Miscellaneous Receipts

Bad Debts Reserve

Goodwill

Factory Shed

Machinery

Furniture:Factory

Office

4% G.P. Notes

Repairs and Renewals

Rent, Rates & Taxes

Factory lnsurance

6YoLoan from Abhimanyu (1.1.89)

Stock (1.1.1989):

Materials & Stores

Work in Progress

Finished Goods

Debtors

Purchases: .

Materials & Stores

Finished Goods

Freisht & Dutv on Materials

19,500

15,000

I,10,000

400

500

5,000

2,000

13,000

500

300

1,000

2s0

1,650

390

30,000

13,000

750

8,250

13,500

85,000

1,000

5-000

*ry



164 Reliable Senes

(Ans: Cost of Production - ( l,Ol,S92/-; G.p.> Balance Sheet -< 76,373/-)

Accou

trp"",loirectI sul". o

ln"b,o.

lcredit<lsurk rI P.orisi

lcuoiurlkrt".",

lriet t r

I ror,.r

I rreieh

A

(j

(:

(

(

(

Electricity & Power

Salaries, Wages & Bonus:

Factory

Office

1,500

15,000

6,500General 1^810

AdJustments:

Particulars ((i) Closing Stock:

Materials & Stores

Work in Progress

Finished Goods

(ii) Depreciation:

Factory Shed

Machinery

Fumiture(iii) Outstanding Expenses:

Salaries, Wages & Bonus

Factory

Office

General Expenses

(rD [nsurance premium is paid for the year ending 3lst January, 1990.(v) Electricity & Power, Repairs & Renewals, Rent, Rates & Taxes are to be apportioned between

factory & office in the ratio 4:1.(vr) Interest to be provided on capital at 4% and also on loans and invesfuents.(vii) Reserve for Bad-debts to be provided at4yo onDebtors.

21,000

1,250

20,750

2%

t0%

l5o/o

400

100

r00

(6t Machineglveul From the following particulars prepare nr@and Profit and Loss Account for the year ended Blst March, 199o andalso a Balance Sheet as on that date.

EPlant

lom"lor..llraot.ls,-alc*nlcu.tlwun

lOffic

ParticularsCapital Account of Vikram Shah

Drawings Account of Vikram Shah

Sundry Expenses

Discount Allowed

Rent, Rates & Taxes

Power & Fuel

Fumiture

AdvertisementBad-Debts

Discount Received

Salaries

Stock on lst April, 1989:

Raw Materials

Work in Progress

Finished Goods

Plant & Machinery


8,00,000

25,6A0

16,500

9,500' 36,000

36,500

1,44,200

69,40012,400

s,565

43,200

15,000

29,800

78,200

2,56,400

1s.64.300



Repairs to Machinery

Direct Wages

Sales of Finished Goods

Debtors

Creditors

Bank Balance

Provision for Bad-Debts

Carriage on Purchase of Raw Materials

lnterest Paid

Light & Heat

Insurance (for 15 months)

18,500

72,400

19,25,200

3,26,200

1,87,600

r,27,365

13,600

10,500

3,000

25,600

5,000

Freisht Inward

Series

"9,000I

6,500 |

l;810 I

l.oooI

1,250 I

0,750|

Ur"ll0o/o I

$%l

I

4ooI

100 I

100 I

I

I

__lI alc

adlng) and

0,000I

5,600 I

6,500I

e,500 |

6,000|

6,500|

.4,200|

9,400 I

2,400|

5,565I

3,200 |

5,000I

9,800I

8,200I

6,400I

4,300 |


Adjustments:(il Depreclation: Plant and Machinery Lso/o; Furniture 97o.

(iif Included in creditors is an zrmount of ( 50,000/- borrowed from Mr. Shiamik

Desai on 3oth September, 1989 on which interest ispayable

at9Vo p.a.

(iiif A machine costing < 24,8OO was purchased on lst July, 1989 and debited toFurchases A/c and Furniture costing < 2,OOO|- purchased on lst October,1989 was charged to Sundry Expenses A/c.

(ivf Write off{ 15,700/- as bad and irrecoverable.(vl Make provision for doubtful debts at 5o/o on Debtors.(vil 3/5th of expenditure on account of Light & Heat, Insurance, Rent & Rates

and Sundry Expenses are to be allocated to factory and remaining to office.(viif Outstanding Expenses:

Particulars (Wages

Advertisement

Rent & Rates

Power

Lisht & Heat

7,800

4,300

3,500

2;,300

6 )On

(viiif Closing Stock:Raw Materials 19,OOO; Work in Progress 21,530; Finished Goods 2,0O,OOO.

(Ans: Cost of Production ? 17,93,200; G.P. t 2,53,800; N.P. t 48,602;Balance Sheet { 10,36,952)

t7l lOutstanding Expenses / Prepaid Expenses / Bad debts & R.D.D" givenlFollowing is the Trlal Balance of Mr. Darshan at 31st December, 2006.You are require to prepare linal accouat showing the result of thetransaction for the year.

Il. .-,"

,*r*rr**Mwr*M

Debit Balance ? Credit Balance {Plant & MachineryOffice Furniture & Fitting

Opening Stock

Motor Vans

Sundry Debtors

Cash in Fiand

Cash at Bank

Wages: Factory

C)ffice F.xnenses

15,000780

14,400

3,600

13,710

120

1,950

45,0004 )OO

CapitalSales

Bills Payable

Sundry Creditors

Provision for Doubtful Debts

Discount Received

Refurns Outwards

12,000t,44,000

1,680

15,600

750

1,1 10

1,650

;i,ilutrJi,i@li:l



RelinbLe Series

The following adJustments are to be made:(il Stock on 3lst December, 2O06: < 15,600.(iif Rent due but not paid 31st December,2O06: t 600.(iiil 3 months factory lighting and heating due but not paid : ( 90.(lvf Insurance paid in advance : { 30.(vl 1O7o depreciation to be written off Plant & Machinery.(vil 5% depreciation to be written ofrfurniture.lviil25o/o depreciation to be written offmotor vans.(viiif Write offturther bad debts : t 21O.

(ix) The provision for doubttul debts to be increased to < 900. (M.U. Oct. 2OO7!

(Ans: Gross Profrt t 34,680, Net Profit { 21,531, Balance Sheet Total t 49,4O1)

(81 lAllocatlon of Expenses / Outstanding Expenses / Bad debts & R.D.D.grvenl The Triat Balance of Mrs. Deepali as oa 31st December, 2OO7 wasas follows:

Accot

I

I

ProlShe

F*L-

ope

Pun

BuiPlat

Fur

Tra

Wa

Fac

Mo

I Fac

I sur

los

1.",lPri

ls,lr,,loiIsa

lo.lSu

lc,lSu

ItuIDi

I r,,r

PurchasesBills Receivable

Refums Inwardsp6yings

Rent

Factory Lighting & Heating

Telephone

Insurance

Advertising

General Expenses

Bad Debts

Discount Allowed

64,0502,160

2,790

2,100

1,800

240

105

90

1,69s

300

750

Raw Materials

Work in Progress

Finished Goods

Sundry Debtors

Carriage Inward

Carriage Outward

Bills Receivable

Wages

Salaries

Repairs of PlantRepairs of Office Furniture

Purchase

Cash at Bank

Plant andMachinery

Office Fumiture

Rent

Lighting Expenses

Factory Insurance

General Expenses

23,000

10,000

15,500

27,000

1,000

1,000

16,000

12,000

10,000

t,200600

1,00,000

2,300

90,000

9,000

5,000

1,800

2,000

Sundry Creditors

Bills Payable

Sales of Scrap

Provision for Doubtful Debts

Deepali's Capital A"/c

Sales

17,000

8,500

1,500

400

1,600

1,00,000

2,00.000



ile SeriesAccountancg & FinanciatMgmt. - F.Y.B.Com. (Sem' - I) 167

Adjustments:

{if closing stock as on 3lst December,2ooT : Raw Materials < 15,800' Finished

Goods < 18,200, Semi Finished Goods < 7,000'(iil salaries < 2,OOO and Wages for December,2oo7 ( 2,000 was paid in January

2008.(iii) Lighting Expenses were outstanding t 6o0 whereas Insurance was prepaid

< 500.

livl 25% of the Lighting Expenses and' rent is to be charged to office premises and

the remaining amount is to be charged to factory'

(vl Depreciation is to be written off in machinery at lOo/o p.a. and on Furniture at

5o/o P.a.(vlf Provision for doubtful debts is to be maintained at lo%o.

You are required to prepare Manufacturlng Account, Trading Account and

ProIit & Loss Account for the year ended 31st December, 2OO7 and Balance

Sfiaar aF ttrr thet date- (M'U' March'2OOS)

Vinayaka's Trial

*,.2OO71

)--l3 R.D.D.OO7 was

17,000I

8,500I

1,500I

400 I

1,600 I

1,00,000I

2,oo,ooo

I

I

I

I

I

I

I

I

3.2e.000 I

Sheet as on that date.(Ans: COP < 1,40,950; Gross Profit t 61,750; Net Profit ( 43,550;

Balance Sheet < 1,73,650.)

galance as on 31st Marchr 2OOT ls as follows:

Pnrficrrlars Dr.? I Cr.(

Opening Stock:

Raw Materials

Work in Progress

Finished Goods

Purchases

Buildings

Plant & MachineryFurniture

Trade Mark

Wages

Factory Taxes

lMotive Power

IFactory Insurance

lSalu.y to Office Staff

lofiice Rent

lcuolug" Inward

lrrintingand Stationery

lBank Charges

ITravelling Expenses

lDiscount

lsol", Return

lAdvertisementI sales

lCapital

ISundry Creditors

ISundry Debtors

lDiscount

I Miscellaneous Expenses

lRill. Po.ahle

2,50,000

80,000

2,20,000

2,15,000

1,50,000

3,60,00040,000

30,000

83,000

4,000

9,000

5,000

11,000

10,500

2,500

s,200

2,500

10,000

3,300

11,000

5,500

82,500

5,500

7,80,000

8,50,000

52,000

2,500

34-000

-.,'" Nk#s&Nseddfr elfi4ffi SMry



Bills Receivable

Corporation BankCash in hand

Acct

(il closing stock : Raw Materials T g5,o0o; work in progress ( 30,0o0; FinishedGoods t 2,05,000.(iil Factory taxes prepaid t 2,OOO.(iitf Depreciation: Furniture 7oo/o, prant & Machinery 15%, Trade Mark 2oo/o,Building 5%. T"ll

TellMar

Prepare Manufactultng, Trading and Profit & Loss Account for the financlals on Blst March, iooz. (M.u: u"i.n, 2ooo,

(Ans: COP ( 5,8S,SOO; Gross profit i 1,68,500; Net profit T 1,O0,OOO,Balance Sheet T 10,36,000.)

purpose givenl The foflowi"S i" tU.March, 2oo7. you are required to prepare the frnal accounts after giving

Sto<

Pun

Rett

Sun

FuIFrei

Car

Rer

Prir

Tra

Pos

Pro

lnsrSat

Cas

(il Depreciation furniture by 1O% p.a.(iif Provision for doubtlul debts is to be created to ttre extent of s%oof debtors.(iii| salary for the month of March 2ooz

.amounting to ? 3,000 was unpaid whichust be provided for. However, salaries include?i Z,OOO p"idi;;;;;.(ivf Insurance amounting to { 2,000 is prepaid.{vl Provide for outstanding office expenses { g,OO0.(vif Stock used for private purpose f O,OOO.

20,000

1,50,000

2,00,000

30,000

20,000

15,000

10,000

7,000

24,000

8,000

12,000

50,000

12.000

1,00,000

4,000

3,21,000

5,000

1,20,000

8,000



e Series

inished


(vitf Closing stock in trade t 6,000.

169

(M.U.April 2OO7l

reserve for discount on

5% p.a. and on Plant &

trl'l

'< 200/0,

ranclal,2OOOI

I

rsonala 31stgring

a;E_lpopoo l

I

I

4,000|

I

,21,000 |

5,000|

I

I

I

,20,000I

I

8,000I

I

I

l.58.000 I

S.

which:e.

(Ans: Gross Profit < 1,08,000; Net Profit { 17,000; Balance Sheet < 2,1B,OOO.)

(1U lFinished goods loss by lire / Discount allowed & Dlscount earned givenlFrom the following Trial Balance of Shri Telly as at 31st December,2OO7; you are required to prepare his Trading and Profit & Loss Accountfor the year ended 31st December,2OOT and a Balance Sheet as at thatdate, after making the necessary adjustments.

AdJustments:(il stock on 31st December, 2007 was valued at ? 29,200. Market value

{ 30,000.

liif Write off { 1,200 as Bad Debts.(iiif The provision for doubtful debts is to be maintained at 5o/o on sundry debtors.(lvf Create a provision for discount on debtors and

creditors at 2o/o cash.

{vl Provide for depreciation on Furniture & Fixture atMachinery at 2O%o p.a.

(vif Insurance prepaid was ( 200.(viilA fire occurred on 25th December, 2OO7 in the godown and stock of the value

of t 10,000 was destroyed. It was fulIy insured and the Insurance Companyadmitted tl:e claim in tull. (M.U. Oct. 2OO4f

(Ans: Gross Pro{it ( 83,200; Net Profit t 13,510; Balance Sheet < l,77,llo.)(121[Bllls Payable dishonoured / Lease wrltten qffgivenl From the following

particulars extracted from the books of Shri Prakash, prepare Tradingand Profit & Loss Account for the year ended 31st Decomber, 1989 and iBalance Sheet as on that date.

Telly's Capital

Telly's Drawings

Machinery:

Balance 1st January, 2007

Addition lst July,2007

Stock - lst January, 2007

Purchases and Sales

Returns

Sundry Debtors & Creditors

Fumiture and Fixfures

Freight Inward

Carriage Outward

Rent, Rates and Taxes

Printing & Stationery

Trade Expenses

Postage & Telephone

Frovision for Doubtful Debts

Insurance Charges

Salaries and WagesCash at Bank

16,000

40,000

10,000

26,000

1,64,000

4,000

41,200

10,000

4,000

1,000

9,200

1,600

800

1,600

7,400

42.600

1,60,000

2,40,000

2,000

20,000

-,.-.. r'*,*rur*ormism*w$i#(



170

10,000

49,000

15,000

15,000

50,000

42,700

2,800

1,000

9,000

900

500

15,000

1,28,60015,000

8,000

2,000

300

6,000

2,000

s6,000

Accott

tF*"h,Isut",

lCarrial

lBadDr

lDebtor

lcreoitr

Inant C

lRent (

LP

Dece:

T

(i

(i

(i

(i

('

('

(,

('

@(

rIstoct

IPurcha

lsales

ivrar,.rrlReturn

lsur*i.lRent 8

I

lot"r",lRn.h,lcreoit,l_I lravel

iom""lrr,*,lauo-o

lCommlPlant Iieiu* p

b*q

'A{lustments:(il The Closing Stock on 31st Dec.(ii| Write off lOo/o Depreciation on

Fixtures.

5

1989 was t 9,800/-.Plant & Machinery and 5% on Furniture and

(iitf write off ? 6,0o0/- in the current year from the cost of lease.(ivf write of Bad-Debts t 700/- from Debtors and maintain Reserve for Bad Debtsat 60/o on Debtors.(vl Bills Payable dishonoured during the year.( g0O/-.(vif Interest on Capital at lOo/o.

Relinble Senes

Stock lstJanuary, 1989

Purchases less returns

Wages

Loan from Mr. Shri Madan at 5%Capital

Debtors

Reserve forBadDebts on lstJanuary, l9g9Rent Rates & Taxes

Salaries

General Expenses

Dscount Allowed

Creditors

Sales

Plant & MachineryFurniture & Fixtures

Cash at Bank

Bills Receivable

Drawings

Sales Returas

Cost oflease on lst January, l9g9

(Ans. G.P. - ( 62,400/-, N.p. - < 3Z,gSO/_, Balance Sh@

@r1st December, 1989.

Trade

Discount received

Salaries

Travelling Expenses

Discount AllowedCapital

Drawings

Leasehold Premises

Furniture

Stock on lst January, 1989

Cash in Bank

2,025

9,297

1,430

490

6,500

40,000

5,000

15,000

2,560

60,100



Purchases

Sales

Carriage Inward

Bad Debts

Debtors

Creditors

Bank Charges

Rent (for 9 months)

nes Accountarrcg & Financial Mgmt. - F.Y.B.Com. (Sem. - I)

Prepare Trading and Profit & Loss Accoupt for the year ended 31st,

Decemblr, 1989 and\a Balance Sheet as on that date'

The following matters are to be taken into account:

(il Mr. White's wife work in the business and is allowed a salary of ? 2,400 p.a.

This amount has been included in Drawings Account'(iil Leasehold premises is to be written off over a period of 2o years

(itif Depreciate furnitute by lOo/o.

{ivf Sundry Debtors & Sundry Creditors both include the account of Mr. Black' '

showing debit balance of ( 2,500/- and credit balance at? 2,ooo/-.

(vl Of the Debtors due on 3lst December, L989, 4o/o ate irrecoverable and should

be written off.

(vif The Reserve for doubtful debts should be maintained at 57o.

(viil Salaries include < 25O l- paid as advance to staff.

(viii) Stock on 31st Dec. 1989 is valued as under cost 15,500/-. Market Price

t 18,500/-.

(Ans: G.P. - < 26,165/-; N;P. - < 5,481 I -, Balance Sheet Totat < 75'402 I )(141 Receivable Unrecorded

frepare tiading and Prolit ind Loss Account and the Balance Sheet as

on 31st December, 1989.

171

I

j

l

:

i

I

,i

:

,l

I

i

=0

I

00I

00 I

,00I

,00I

'00I

;00I

n0 I

)00 I

)00 I

;00 I

)00 I

;00 I

)00 I

)ooI

)00I

100 I

)00 I

oooI

oo0|

000 I

and

ebts

I,fr1son

d

,r^l

I

),100

I

I

;

Particulars Debit ( Credit ?

Stock lst January, 1989

Purchases

Sales

Manufacturing Wages

Refurns Inward

Salaries

Rent & Taxes

Interest & Discount

Roshanlal' s Capital AccountCreditors

Travelling Expenses

Office Repairs & Renewals

Insurance.

Bad-Debts

Commission Received

Plant & Machinery

lBills Pavable

lFlrnihrre & Fittinss

89,500

2,56,600

41,000

2,800

11,000

5,600

5,900

1,900

3,400

400

3,600

28,800

9,000

3,56,400

1,19,40050,000

5,600

9,600

&eM



Reliable Series Acct

Adjustments:(il Stock in Hand on 3lst December, 1989 was ? l,28,9OOl-.(ii) Invoices for goods worth < 9OO/- purchased before 31st December, 1989 had

been omitted from the book. These goods were included in the Closing Stock.(iiif Create a provision of SYo on Debtors for Doubtful Debts.(ivf Depreciate: Plant and Machinery \oh, Furniture & Fittings 1oolo.

(vl Interest on loan for the last 2 months is not paid.(vif Insurance premium per year ( 300/- was paid upto 30th June, 1990.(viif Bills receivable dishonoured < 2,OOO/- and Bills Payable dishonoured

< 4,600 /- during the year have not been recorded in the books.(viiif Roshanlal had issued a cheque for ( 1,000/- to chimanlal on 26.12.7999

Chimanlal is one of tl:e creditors of Roshanlal. But no entry had been passedin the books as the cheque was debited in the Bank Passbook on 1stJanuaqr, 1990.

|(Ans: G.P. - ( 94,500/-; N.P. - ( 65,310)

(15f (C.A. Entrance| lR""tifi."tior of Tor.rr"it." affiShri Madunath, the proprietor of the small retail shop, submits to youthe follouring Trial Balance as on 31st March, 1982 which he has notbeen able to agree. You are requlred -to rewrite the Trial Balance correcting the mistakes committed by him andto prepare a Profit and Loss Account & a Balance sheet therefrom , aftergling effect to the adjustments stated below and other necessaryadjustments.

E."dl.qa.',,

lm*leud-

lru,",I Saler

loi..lSala

lCasl

lGoo

L-

Dr"Cas

CasPlal

Fur

Insr

Mir

Tra

(10

Sto

Int(

Sal

Sur

Rer

Tra

Pur

Por

BaCh

thrfol

(il(ul

Roshanlal's Drawings

6o/oLoan from Maganlal

Cash

Bank

Debtors

Bills Receivable

Reserve for Doubtfirl Debts

10,500

3,000

19,000

60,000

I 1,500

20,000

2.500

5-63-500 5"63.500

Particulars Debit t Credit tCapital Account

Drawings Account

Stock (1.4.1981)

Retums lnwardsCarriage lnwards

Deposit with Landlord

Returns outwards

Carriage outwards

Loan to Surinder (given on 1.4.1981, interest 6% p.a.)

Interest on above

Rent for Shop premises

Rent outstanding and payable

Stock (31.3.1982)

Purchases

Debtors

3,250

17,445

1,240

840

820

130

12,970

4 000

15,000

554

1,000

1,100

1,000

25

18"792



Creditors

Advertisement Expenses

Loan fromMohinder(Taken on 30.9.1981 interest at6%p.a.)Bad-Debts

Patents & Patterns

Sales

Discount allowed

Salaries

Cash

Goodwill

Total

954

400

500

754

62

t-'t30

3,000

1,200

27,914

330

45.095 69.915

ronoured

.L2.t989n passed

: on lst

le Seies Accountancg & Financial Mgmt. - F.y.B.Com. (Sem. - I)

Adjustments:(il < 2OO l- out of advertisement expenses to be carried forward to next year.(iil A sum of ? 600/- paid for purchase of a typewriter on 1st October,

1981 hasbeen wrongly debited to purchases account. This is to be rectilied anddepreciation on the typewriter is to written off at l}o/o p.a.

(161[9oods Sold but not despatched glvenl The following is the Trial Balanceof P. Kunar, a stationery merchant as at 81.12.19g2.

_ You are required to prepare a Trading Account, Prolit and Loss Account forthe year ended 31.12.1982 and a Balance Sheet as on that date after making thefollowlng adJustments:

(il Stock on 31.t2.L982 ( 38,200/-.(ttf Depreciate Plant & Machinery at 1,Oo/o and F\rrniture & Fixture at 5olo p.a.(iiif Invoices of value < 3,600/- were recorded in the Sales Book on 27th

December, 1982, but goods were not despatched until 5th Januaqr, 1983 and

t. glvenls to youhas not

r andm , afterrecessary

cr"ilt< I---lss4 I

1,000 I

I

1,100 |

1,000|,rl

fi,7g21

I

(Ans: Trial Balance Total - 7 4B,lO9; G.p. - <Balance Sheet - < 27,874.)

Drawings

Cash in Hand

Cash at Bank

Plant & Machinery

Furniture& FixtureInsurance Charges

Miscellaneous Expenses

Trademark Rights(10 years from 1.1.82)

Stock (1.1.82)

lnterest on Loan from Hari Gopal

Salaries and Wages

Sundry Debtors

Rent, Rates & Taxes

Purchases

Postages & Telegram

Bad-debts

Charities & Donations

19,000

1,800

21,900

90,000

9,0001,200

600

30,000

40,500

300

27,300

34,200

9,300

900

1,42,800

1,200

800

400

Loan from Hari Gopal(taken on 1.7.82 @ 6% p.a.)

Creditors

Sales

1,50,000

15,000

25,200

2,40,000

*qr



174 Reliable Series

were included in the closingstock.(ivf of the sundry debtors < t,2oo / - are bad and should be written off.

(vl Create a reserve of 5o/o on Sundry Debtors for Bad and Doubtful debts

- {Hints: For adjustment (3) ? 3,600 to be deducted from closing stock; i.e. ClosingStock to be taken at ( 34,600 /- (< 38,2A0 - T 3,600)l

(171(c.4. rnterf [IYpicat suml From the following Trial Balance andaccompanying of Jailal Billu & sons, prepare Trading and profit & LossAccount for the year ended 31st December, 1972 and Balance Sheet ason that date.

Additional Information:

E

Dr

LtPt

R(

Tr

Pr

Ci

D

M

St

Pr

Fr

C

lv

DB

S

II

S

E

C

l(s

(il on investigation, it was found tJrat goods costing < 4o,ooo/- were sent tochotilal under consignment; 3/4 of the goods were sold by him for t60,000/-. Remaining stock was valued at cost. A cheque of ( do,o00/- wasreceived from Chotilal. Entry for cash received was passed and creditea to ni"suspense Account. commission of 50% on sale is payable to chotilal.

(iil Similarly, a joint venture agreement was made with Motilal for which anadvance of { 10,000/- was entered. It is now ascertained that the venture

earned a profit of t 6,OOO/- of which Jailal Billu & Sons are entitled to get2/3rd share.(iiif Debtors included an arnount due from Chandi Ram 2,OOA/- and creditors

included amount due to Chandi Ram t 3,OOO/-.(ivf Purchases included purchase of materials used for the building < 2,oool-.(vl During the year a new plant was erected and firm,s o*r, -rt had spent time

thereon amounting to 7 2OO / -. The amount was included in wages adcount.

Debit Balances t Credit Balances {Plant & Machinery

Purchases less retums

Factory Buildings

Wages

Fuel and Power

Comrnission paid to pruchase manager

Insurance & Taxes

Life Insurance

Goodwill

Debtors

Bad-Debts

Income Tax advance payment

lncome Tax

Cash in Hand & at Bank

Stock on 31st December, 1972Suspense Account of MotilalCommission paid in advance

10,000

90,000

50,000

10,000

2,000

1,000

4,000

1,000

30,000

70,000

1,000

4,000

10,000

15,000

20,00010,000

1.000

Sales

Capital

Interest on Income-tax paid in advance

Suspense account of Chotilal

Interest received in advance

Creditors

2,00,000

80,000

400

30,000

3,600

15,000

3.29.00O 3.29-000



t.e Series

Closing

Accountancg & Financial Mgmt. - F.Y.B.Com. (Sem. - I) 175

(vtf Goods costing ? 600/- (Sales Price t 900/-) were sent on approval on 28thDecember and recorded as sale, but no consent has been received up to 31stDecember.

(viif Make provision for doubtful debts at 1Vo and depreciate plant at 7Oo/o andbuildings at 5o/o.

(Ans: Gross Profit < 1,38,900/- Net Profit < 1,26,925/-;BlS-< 2,39,9251

(181(C.A. Interf JTypical Suml Mr. Fairdealer is the proprietor of the largebusiness of Cotton price goods. The following Trial Balance was preparedfrom his books as on 31st December, 1978.

Particulars {Debit Balances:

Land & Buildings

PurchasesRetums InwardTravelling Expenses

Printing & Stationery

Cash at Bank

Discount Allowed

Miscellaneous Expenses

Sundry Debtors

Postage

Furniture

Cash in Hand

Motor Car

Investment (Market value < 14,000/-)

Drawings

Bills ReceivableStock (1.1.78)

lnterest on Baak loan

Salaries (including advance < 1,500)

Establishment Expenses

Carriage Inward

Advertisements

Credit Balances:

Sales

Income from Investments

l2%oBankloan secured on Fixed Assets (no movement during the year)Mr. Fairdealer's Capital A/cBills Payable

Sundry Creditors

Returns OutwardDiscount Received

40,000

3,26,7002,500

6,900

1,600

30,79s

1,800

18,620

64,000

800

8,000

5,900

16,000

12,000

10,000

4,80063,680

3,000

22,000

1,595

3,000

16,000

4,68,100

990

40,000

80,000

2,600

63,100

3,7001 ?On

The following further information was obtained:(il Stock as on 3Lst December,1978 was ( l,2O,OOO/-.

(iil Sundry Debtors include a sum of t 3,OOO/- due from Mr. B and SundryCreditors include a sum of t 4,OOO due to Mr. B.

(iitf The Reserve for Doubtful Debts is to be maintained @ to% on sundryDebtors. Reserve for Discount on Debtors and Discount on Creditors are to becreated @ 5%.

(ivf Bills Receivable include a dishonoured bill of { 600/-.

ce and& Loss

;heet as

<l2,00,000

I

80,000 |

400 I

30,000I

3,600 I

15,000I

I

I

I

I

I

I

I

I

3.29.000 I

: sent tomfor{)0/- wased to his

vhich an: venture

ed toget

creditors

ool-.rent timercount.

..-* *.,*ru*ruul*iWiMM



176 Reliable Senes

(vl Stock worth ( 10,000/- destroyed by fire on 25.17.1978 in respect of which

insurarrce company admits a claim for only < 7,5AOl-.(vif The manager of Mr. Fairdealer is entifled to a commission of lO%o of Net Profit

calculated after charging such commission.(viif /oth of the Advertisement Expenses is to be carried forward.

lviill 2yfh of the Net Profit is to be carried to Reserve Fund.(ixf Depreclation to be charged on:

(A) Land & Building @2 l/2o/o (Bf Furniture @ lOo/o and (C| Motor Car @2Oo/oYou are required to prepare a Trading and Prolit & Loss A/c. for the year

ended 31st December, 1978 and to draw up the Balance Sheet as on that date.

(Ans: G.P. -< 2,05,920, Net Profit { 1,21,880; Balance Sheet Total - < 3,05,563)

(191(C.A|: lTvpical Suml You are given a Trial Balance as at 31.10.1961

drawn by the accountant of Mr. X You are required to prepare Tradingand Prolit & Loss Account for the year ended 31.10.6L and BalanceSheet as at that date. But on scnrtiny, you have found the followingerrors in the Trial Balance and also the following adjustments requiredto be done.

(fl Drawings account was debited to the extent of { 500/- which should becharged to Furniture & Fittings.

(ii| Purchases Account was debited with < 1,000 which should have been chargedto materials purchased for the erection of Building.

(flfl { 5OO/- cash paid by Mr. X was credited to Sales.(ivf Provide depreciation on Buildings 2Il2%. Furniture & Fittings 6%.(vl Bad Debts ( 1OO/- should be written off.

(vif Provide Bad-Debts Reserve 5%o on Sundry Debtors, Discount on SundryCreditors @ 2yr"/r.

{vtif salaries unpaid ? 2OO/-; Rates prepaid { 60, Insurance prepaid ( i00/-,Carriage Inward unpaid { 100/-.

Capital

Curent Accoutrt

Sales

Adjusted Purchases

Salaries

Carriage Inward

Cariage Outward

Lighting

Rates & InsuranceDiscount

Building

Sundry Debtors

Furniture

Sundry Creditors

Petty Cash

Cash at Bank

Stock at 31.10.61

Accour

tt*;lr12

lphnt &

lcapitatlu*rtlcreditr

lsluri.ls*kIlr"*it,iPurchzI Freish

ISales

lReserlBuild

I rreisl

lr*,IInsurr

lcooolGenelFact(

lo"u,I prctr

I stoc:

lrraoolPurclsd"leuo

lmr",

lcus:

lca"l_L9'fol

FL-

1,500

6,99,200

1,200

400

500

300

400

30,000

8,000

6,000

6t-250

50,000

7,40,004

20,000



Senes

which

Profit

r.1961

radingilanceowlngluired

rld be

rarged

Accountancg & Financial Mgmt. - F.Y.B.Com. (Sem' - I)

prepare Trading and Prolit & Loss A/c. for the year ended 31st December,

fg7a and Batance-Sheet as on that date after taking into consideratlon the

following information:

(ilstock on hand on 31st December, 1973 was valued at { 80,500/-.

. (iil Depreciate Plant & Machinery by 10% & Furniture by 5% & Motor Car by

< l,OOO/-.

{iitf Bring Reserve for Bad-debts to 57o on Sundry Debtors'

(tvf A commission of lo/o on gross profit has to be provided for work manager'

(vl A commission of 2o/o on net Profit (after charging the work manager

commission) is to be credited.

iundry

lool-,

50,000

I

,40,000

I

I

,rl

I

20,000

I

l;.10.500

|

(Ans: Gross Profit - < 4O,8OO/-; Net Profit - 1 37,7OO /-;Balance Sheet Total - < 1,07,000/-)

80,000

44,560

15,000

1,740

2,50,850

2,000

20,000

34,500

15,850

10,000

1,860

24,000

2,140

9,500

4,250

25,000

8,200

1,280

78,200

950

34,200

12,000

1,02,000

3,100

1,400

400

4,200

(Ans: N.P. - < 55,915, Work Manager commission - ( 957, General Manager

Commission - ( 1,l42,Balartce Sheet Totai - ( 1,97,610')

-



178 Reliable Series

(2U [Calculation of Commissionl On the 31st December, L996, the following

Trial Balauce was extracted from the books of Mohan:

You are requlred to prepare Trading and Profit & Loss Account for the yearended 31st December, L996 and a Balance Sheet as on that date and also passadjusting and closing entries.

Adjustments:(il Buitdings is to be depreciated @ lOo/o and Motor Car @2OYo.(iil Interest at 5o/o for 6 months on Bank Loan remained unpaid.(iitf Salaries amounting to { 5OO and Rates amounting to t 2OO were outstanding.(tvf Prepaid insurance amounted to { 250.

(vl Stock on December, 31, 1996 was valued at { 13,000.(vif Reserve for Bad debts was to be maintained at 5%o.

(viif The ma,nager of the concern was entitled to receive a commission @ 5% on netprofits after charging such commission.

(Ans: Gross Profit ( 68,084; Net Profit 7 17,963; Balance Sheet { 1,16,070;Manager's Commission : ( 898/-)

Accout

12

r--lGooduI Factor

luu"nilro-iolmv"*,

lcapitaleuok

lcreoirlDebtc

lstocrr

I

l*o,lui."leuoIp,,."

lr'.irlFact,

lsata

l**ln"o

l*'L

A(

r

Trial Balance as on December 31, L996

Capital

Drawings

Sundry Debtors and Creditors

Bank Loan

Interest on Loan

Cash at Bank

Reserve for Doubtful Debts

Stock on lst January, 1996

Motor Car

Buildings

Purchase and Sales

Sales Returns

Purchase Returns

Carriage Ourwards

Establishment Expenses

Freight Inward

Salaries

Rent and Rates

Insurance

Advertising

General Expenses

Discount

Rent

Bills ReceivableBills Payable

Machinery

5,000

4t,200

600

tt,2t0

13,500

19,000

25,000

t,33,094

15,642

6,002

17,000

5,858

2,000

1,000

2,792

6,9',78

6,578

6.770

56,000

20,800

19,000

1,422



Accountancg & Financial Mgmt. - F.y.B.Com. (Sem. _ I) 179ble Seies

following

C*dtt <-l

-*']

20.800 I

u,oooI

I

1,4r,

I

I

I

2,692|

I

I

I

600I

e8oI

5,n4|

-r2r2t4I::=

the yearflso pass

tanding.

givenlMarch,

1221 onfollowing Ledger Balance as on 31st

The following addltional information is avallable:(il Closing Stock: Material ( 2,10,000, Work in Progress t 12,500 and Finished

Goods < 2,OZ,SOO.

(itf Depreciation to be provided at 2r/f/o on Factory Shed, loo/o on Machinery and15%o on Furniture.

(tiif Repairs and Rent and taxes are to be apportioned between Factory and officein the ratio of 3:2.

(ivfReserve for bad and doubtful debts to be provided at 4o/o ondebtors.(vl Insurance P:emium covers a period of one month in ad.vance.

- You are requlred to prepare Manufacturing, Trading and profit and LossAccount for the year ended Sist March, ]rgg7"rrl-B"l"rree

Sheet as on that date.(M.U. November, 19981

(23f Pass adjusting entries for the following:(il Rent outstanding for December,20O6 t S,O0O.(ii) Insurance for 3 months < 6,000 paid in advance.

Amar Chemleals hasL997.

o/o On nlet

_l

Particulars Debit t Credit (lGoodwillIFactory Shed

lMachineryFurniture

Investments

Capital

Bank Loan

Creditors

Debtors

Stock on 1.4.1996Materials

Work in Progiess

Finished goods

Net Sales

Miscellaneous Income

Bad Debts Reserve


Freight on Materials

Factory Power

Salaries and Wages

Factory

Office

Repairs and Renewals

Rent and Taxes

lnsurance

General Expenses

I s0,000

| 20,000

I r,30,000

I s,ooo

I 10,000

1,35,000

1,30,000

7,500

82,500

8,60,000

50,000

15,000

1,50,000

65,000

2,50016,500

3,900

I 8.100

1,95,000

3,00,000

1,50,000

I1,00,000

4,000

5,000

17.54.000 17_54 000

(Ans: Cost of Production - ( 10,14,900; Gross profit _ < ZJO, tOO;Net Profit - ( 1,18,200, Balance Sheet - < 2,63,200.)

fybcon acc finance 0001 new

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