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Expenses which are paid before due date are called as _____.

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प्रश्न

Expenses which are paid before due date are called as _____.

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उत्तर

Expenses which are paid before due date are called as prepaid expenses.

Explanation:

Prepaid expenses are those costs that have been paid in advance but the benefit of which will be received in the future. Since the payment is made before the actual due date or before the expense is incurred, it is treated as a current asset in the balance sheet until it expires.
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अध्याय 1: Introduction to Partnership and Partnership Final Accounts - Exercise 1.1 (Objective Questions) [पृष्ठ ५२]

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बालभारती Book-Keeping and Accountancy [English] Standard 12 Maharashtra State Board
अध्याय 1 Introduction to Partnership and Partnership Final Accounts
Exercise 1.1 (Objective Questions) | Q I. E. 16) | पृष्ठ ५२

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संबंधित प्रश्न

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

Return outward are deducted from __________________.


Write a short note on E-Commerce ?


Surekha and Sangita decided to undertake a venture jointly. They agreed to share profits and losses in the ratio of 3 : 2. Surekha supplied from her own stock goods worth Rs. 4,00,000 and paid Rs. 9,900 for freight and Rs. 2,400 for insurance. Sangita purchased goods of Rs. 3,90,000 for the venture and paid Rs 14,000 for selling expenses. Sangita accepted a bill for 3 months of Rs. 1,90,000 drawn by Surekha as an advance. The bill was discounted immediately by Surekha for Rs. 1,84,000 and the amount of discount was charged to Joint Venture Account. Sangita sold all the goods for Rs. 10,00,000. At end of the venture, the accounts were settled. Give journal entries in the books of Surekha.


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

Trial Balance as on 31st March, 2011
Particulars Amount (₹) Particulars Amount (₹)
Opening stock 32,000 Sales 1,93,500
Purchases 64,000 Sundry Creditors 15,000
Plant and Machinery 30,000 Unpaid Wages 1,500
Furniture 18,500 Return outward 2,500
Carriage 1,500 Capital A/c:  
Wages and Salaries 35,000 Rohan 90,000
Bills Receivable 5,000 Roshan 50,000
Sundry Debtors 32,000    
Conveyance 4,000    
Rent, Rates and Taxes 2,000    
Return Inward 3,500    
Cash in hand 14,750    
Land and Building 83,500    
Bad debts 1,750    
Patents 25,000    
  3,52,500   3,52,500

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.

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 31st March, 2012
Debit Balance
Amount
(₹)
Credit Balance
Amount
(₹)
Building 4,00,000 Capital A/cs -  
Plant and Machinery 1,20,000

Madhuri

3,00,000
Purchases 6,50,000 Minakshi 2,00,000
Carriage 7,000 Sales 8,10,000
Opening stock 90,000 Sundry Creditors 1,00,000
Wages 35,000 Outstanding salaries 4,200
Sundry Debtors 1,50,000 8% Bank loan
(Taken on 1.10.2011)
1,00,000
Salaries 28,000    
Postage and Telegram 4,000  
Insurance 5,000  
Bad debts 3,000  
Rent 4,000  
Discount 3,200  
Drawing A/c-    
Madhuri 10,000  
Minakshi 5,000  
  15,14,200   15,14,200

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.

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 (₹) Assets Amount (₹)
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 debtors 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
(₹)
Credit Amount (₹)
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 1,92,000  
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.

Darshan and Amar were partners sharing profit and losses in the proportion of 2: 1. Their balance sheet is as follows:

Balance sheet as on 31st March 2016

Liabilities Amt(Rs) Amt(Rs) Assets Amt(Rs) Amt(Rs)
Capital A/cs:     Building   1,00,000
Darshan 96,000   Furniture   20,000
Amar 64,000 1,60,000 Equipments   10,000
General reserve   18,000 Debtors 63,000  
Profit and Loss A/c   6,000 Less: R.D.D 3,000 60,000
Creditors   80,000 Stock   84,000
Pawans loan A/c   26,000 Cash   16,000
    2,90,000     2,90,000

On 1st April, 2016 Ranjit is admitted in the partnership on the following terms.

(1) Ranjit should bring in cash Rs 48,000 as capital for 1/5th share in future profits.
(2) Goodwill was raised in the books of the firm for Rs 18,000
(3) Building is revalued st RS 1,12,000 and tghe value of stock to be reduced by Rs 6,000
(4) Reserve for doubtful debts be maintained at Rs 1,800.
(5) Pawans loand is to be repaid.

Prepare: 
(1) Revaluation A/c 
(2) Capital A/cs of partners and 
(3) Balance sheet of the new firm


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
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) Included in wages in advance given to workers Rs. 3,000.
(5) Provide Rs. 1,500 for bad and doubtful debts on debtors.

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

The accounts that are prepared at the end of each accounting year.


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.

Indirect expenses are debited to Trading Account.


State whether the following statement is True or False with reasons.

Net profit is a debit balance of Profit and Loss Account.


Find odd one.


Find odd one.


Find odd one.


Find odd one.


Partners are _____ liable for the debts of the firm.


The expenses paid for trading purpose are known as _______ expenses.


Cash receipts which are recurring in nature are called as__________ Receipts.


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


Answer in one sentence only.

Why wages paid for installation of machinery are not shown in Trading Account?


Answer in one sentence only.

Why partners capital is treated as long-term liability of business?


Current account always shows a debit balance.


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:

Free distribution of goods is debited to the trading account.


Undervaluation of Closing Stock by 10%. Closing Stock was ₹30,000 find out the value of Closing Stock.


Calculate 12.5% P.A. depreciation on Furniture:

  1. on ₹ 2,20,000 for 1 year
  2. on ₹ 10,000 for 6 months

From the following Trial Balance and adjustments given below of Reena and Aarti, 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 ₹
Purchases 35,500 Sales 58,200
Sundry Debtors 40,000 Sundry Creditors 25,700
Sales Returns 1,000 Purchases Returns 500
Opening Stock 18,100 R.D.D 800
Bad debts 500 Discount 50
Land and Building 25,000 Commission 250
Furniture 20,000 Capital:  
Discount 1,000 Reena 50,000
Royalties 700 Aarti 30,000
Rent 1,900    
Salaries 3,000    
Wages 800    
Insurance 1,500    
Drawings:      
Reena 2,000    
Aarti 1,000    
Cash at Bank 11,500    
Cash in Hand 2,000    
  1,65,500   1,65,500

Adjustments :

  1. Closing Stock valued at ₹ 22,000.
  2. Write off  ₹ 900 for Bad and doubtful debts and create a provision for Reserve for doubtful debts ₹ 1,000.
  3. Create a provision for Discount on Debtors @ 3% and creditors @ 5%.
  4. Outstanding Expenses - Wages ₹ 700 and Salaries ₹ 800.
  5. Insurance is paid for 15 months, w.e.f. 1st April 2018 
  6. Depreciate Land and Building @ 5%
  7. Reena & Aarti are Sharing Profits & Losses in their Capital Ratio.

Satish and Pramod are Partners. Prepare Trading Account and Profit and Loss Account for the year 31st March 2019. You have to find out Gross Profit and Net Profit only.

Trial Balance as on 31st March 2019

Debit Balance

Amount  ₹

Credit Balance

Amount ₹

Stock (1/4/2018)

8,700

Sales

68,000

Purchases

18,300

Dividend

2,000

Wages

1,000

Purchases Return

500

Insurance

800

Sundry Creditors

13,000

Unproductive Wages

1,400

10% Bank Loan

(w.e.f. 1/7/2018)

8,000

Warehouse Rent

600

Carriage Outward

1,200

Other Receipts

1,000

Sales Return

600

   

Export Duty

1,400

   

Customs Duty

800

   

Sundry Debtors

40,000

   

Investments

15,700

   

Factory Rent

1,600

   

Postage & Telegram

400

   
 

92,500

 

92,500

Adjustments:

  1. The Closing Stock is valued at ₹ 15,400.
  2. Outstanding Wages ₹ 500.
  3. Create provision for Bad debts ₹ 800 and maintain R.D.D. 3% on Sundry Debtors.
  4. Goods of ₹ 1,800 distributed as a free sample.
  5. Goods of ₹ 2,000 were sold and delivered on 31st March 2019 but no entry is passed in the Books of Account.

Nana and Nani are Partners in Partnership Firm sharing Profits and Losses equally. You are required to give effects of Adjustments in Profit & Loss A/c and Balance Sheet with the help of the following information.

Trial Balance as on 31st March 2019

Debit Balance Amount ₹ Credit Balance Amount ₹
Insurance 15,000 Capital A/c  
Land and building 50,000 Nana 50,000
(Addition of 20,000 w.e.f 1st July 2018)   Nani 50,000
Salaries 5,000 10% Bank loan taken on 1st Oct. 2018 30,000
Export Duty 2,500 Interest 1,500
Interest 1,000 Bills Payable 8,000
Furniture 40,000    
Debtors 26,000    
  1,39,500   1,39,500

Adjustments :

1) Gross profit amounted to ₹ 34,500.

2) Insurance Paid for 15 months w.e.f. 1. 4. 2018.

3) Depreciate Land and Building at 10% p.a. and Furniture at 5% p.a.

4) Write off ₹ 1,000 for Bad Debts and maintain R.D.D at 5% on Sundry Debtors.

5) Closing Stock is valued at ₹ 34,500.


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 :

  1. Closing Stock ₹ 1,80,000.
  2. Outstanding wages ₹ 1,500 and Salaries ₹ 1,000
  3. Depreciate Vehicles @ 5% p.a.
  4. Write off Bad debts of ₹ 2,500 and provide for R.D.D at 5% Sundry Debtors.
  5. Bhavya withdrew Goods of ₹ 3,000 for her personal use.

Returns outward are deducted from ______.


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:

  1. Closing stock is valued at cost ₹ 88,000 and market price ₹ 90,000.
  2. Asha and Nisha withdrew goods from business ₹ 3,000 and ₹ 2,000 respectively for their personal use.
  3. Depreciate Motor Van by 5% and Plant and Machinery by 7%.
  4. Reserve for Doubtful debts on Debtors at 5% is to be created.
  5. Outstanding Wages ₹ 800.

Sun and Moon are partners sharing profits and losses equally. From the following trial balance and additional information prepare trading and Profit and Loss Account for the year ended 31st march 2020 and balance sheet as on that date.

Trial Balance as on 31st March, 2020
Debit Balance Amount (₹) Credit Balance Amount (₹)
Stock (1/4/2019) 65,000 General Reserve 14,500
Bills Receivable 28,000 Capital:  
Wages and Salaries 9,000 Sun 1,60,000
 Sundry Debtors 1,32,500 Moon  1,20,000
Bad-debts  1,000 Creditors 98,000
Purchases   1,48,000 R.D.D. 1,800
Motor car  68,000 Sales  2,85,500
Machinery  1,14,800 Outstanding Wages 700
Audit Fees   1,200 Purchases Returns 4,000
Sales Return 2,000 Discount 1,800
Discount  2,300    
Building 75,000    
Cash at Bank  12,000    
10% Investment  20,000    
Advertisement (Paid for 9 months) 4,500    
Royalties 3,000    
  6,86,300   6,86,300

Adjustment and Additional Information:

  1. Closing Stock ₹ 40,000.
  2. Depreciate Building and Machinery @ 5% and 3% respectively.
  3. Bills Receivable included dishonoured bill of ₹ 3000.
  4. Goods worth ₹ 1000 taken by sun for personal use was not entered in the books of accounts.
  5. Write off ₹ 1800 as Bad debts and maintain R.D.D. at 5% on Sundry Debtors.
  6. Goods of ₹ 6000 were sold but no entry was made in the books of accounts.

From the following information, calculate Current Assets:

Debtors ₹ 60,000,  Creditors ₹ 30,000, Bills payable ₹ 20,000, Stock ₹ 30,000, Loose tools ₹ 10,000, Bank overdraft ₹ 10,000.


To find out the Net Profit or Net Loss of the business ______ account is prepared.


Find odd one


Find odd one.


Find odd one.


Undervaluation of closing stock by 10%, closing stock was of ₹ 54,000. Find out the value of closing stock.


Royalty paid on production is shown in the ______.


Find the odd one:


Provident fund amount is a ______ for the firm.


Find odd one.


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