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प्रश्न
Kranti & Sumangala are Partners sharing Profits and Losses in their Capital ratio. From the Trial Balance given below and Adjustments, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as of that date.
| Trial Balance as on 31st March, 2019 | |||
| Debit Balance | Amount (₹) | Credit Balance | Amount (₹) |
| Stock (1/4/2018) | 32,500 | Capital: | |
| Purchases | 40,000 | Kranti | 1,20,000 |
| Sundry Debtors | 1,00,000 | Sumangala | 40,000 |
| Bills Receivable | 8,500 | Sales | 60,000 |
| Wages | 3,000 | Sundry Creditors | 30,000 |
| Investment | 32,000 | Bills Payable | 15,000 |
| Postage | 2,700 | Commission | 325 |
| Insurance | 7,500 | Purchases Returns | 1,000 |
| Plant & Machinery | 15,000 | ||
| Salaries | 4,850 | ||
| Prepaid Rent | 2,000 | ||
| Bad-debts | 500 | ||
| Furniture | 12,500 | ||
| Cash in Hand | 3,775 | ||
| Sales Return | 1,500 | ||
| 2,66,325 | 2,66,325 | ||
Adjustments:
- Closing Stock is valued at Cost Price ₹ 28,000 and Market Price ₹ 32,000.
- Insurance is paid up to 30th June 2019.
- Outstanding Expenses - Wages ₹ 800, Salaries ₹ 700.
- Book value of Plant and Machinery is reduced to ₹ 13,000.
- Depreciate Furniture by 5% p.a.
- Provide further Bad debts of ₹ 800.
- Goods of ₹ 3,000 distributed as a free sample.
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उत्तर
| Dr. | In the Books of Kranti & Sumangala Trading and Profit and Loss A/c for the year ended 31st March 2019 |
Cr. | |||
| Particulars | Amount (₹) | Particulars | Amount (₹) | ||
| To Opening Stock | 32,500 | By Sales | 60,000 | 58,500 | |
| To Purchases | 40,000 | 36,000 | Less: Sales Return | 1,500 | |
| Less: Purchase Return | 1,000 | By Closing Stock | 28,000 | ||
| Less: Free Sample | 3,000 | ||||
| To Wages | 3,000 | 3,800 | |||
| Add: Outstanding | 800 | ||||
| To Gross Profit c/d | 14,200 | ||||
| 86,500 | 86,500 | ||||
| To Postage | 2,700 | By Gross Profit b/d | 14,200 | ||
| To Insurance | 7,500 | 5,625 | By Commission | 325 | |
| Less: Prepaid Insurance | 1,875 | By Net Loss (Transferred to Capital A/c's) | |||
| To Salaries | 4,850 | Kranti | 4,706 | 6,275 | |
| Add: Outstanding Salary | 700 | 5,550 | Sumangala | 1,569 | |
| To Depreciation on: | |||||
| Plant & Machinery | 2,000 | 2,625 | |||
| Furniture | 625 | ||||
| To Bad-debts (Old) | 500 | 1,300 | |||
| Add: Bad debts (New) | 800 | ||||
| To Advertisement (Goods distributed) | 3,000 | ||||
| 20,800 | 20,800 | ||||
| Balance Sheet as on 31st March, 2019 | |||||
| Liabilities | Amount (₹) | Assets | Amount (₹) | ||
| Capitals: Kranti | 1,20,000 | 1,15,294 | Plant & Machinery | 15,000 | 13,000 |
| Less: Net Loss | 4,706 | Less: Depreciation | 2,000 | ||
| Capital: Sumangala | 40,000 | 38,431 | Furniture | 12500 | 11,875 |
| Less: Net Loss | 1,569 | Less: Depreciation 5% | 625 | ||
| Outstanding Expenses: | Sundry Debtors | 1,00,000 | 99,200 | ||
| Wages | 800 | 1500 | Less: Bad Debts | 800 | |
| Salaries | 700 | Bills Receivable | 8,500 | ||
| Sundry Creditors | 30,000 | Investment | 32,000 | ||
| Bills Payable | 15,000 | Cash in Hand | 3,775 | ||
| Closing Stock | 28,000 | ||||
| Prepaid Insurance | 1,875 | ||||
| Prepaid Rent | 2,000 | ||||
| 2,00,225 | 2,00,225 | ||||
APPEARS IN
संबंधित प्रश्न
Select the most appropriate alternative from those given below and rewrite the statement.
Return outward are deducted from __________________.
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.
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.
Write the word/phrase/term, which can substitute the following sentence.
Debit balance of trading account.
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
| Particulars | Debit Amount Rs. | Credit Amount Rs. |
|
Capital A/c's Ajay Vijay |
60000 35000 |
|
| Purchases and Sales | 46,700 | 85,000 |
| Sundry Debtors and Creditors | 28000 | 25000 |
| Bills Receivable and payable | 5000 | 6000 |
| Commission | 4600 | 1800 |
| Opening stock | 18000 | |
| Wages | 9900 | |
| Investment | 13500 | |
| Postage and Telegrams | 3600 | |
| Insurance | 1200 | |
| Plant and Machinery | 40700 | |
| Furniture | 18000 | |
| Cash in hand | 2500 | |
| Carriage | 3200 | |
| Bad debts | 400 | |
| Prepaid Rent | 7000 | |
| Salaries | 10500 |
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.
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.
| Trial Balance as on 31st March, 2013 | |||
| Debit Balance | Amount (₹) | Credit Balance | Amount (₹) |
| Investments | 56,000 | Capital A/c: | |
| Carriage | 7,000 | Mahesh | 1,62,000 |
| Loose Tools | 17,000 | Umesh | 1,08,000 |
| Building | 1,50,000 | Current A/c: | |
| Salary | 13,000 | Mahesh | 16,200 |
| Audit fees | 8,500 | Umesh | 10,800 |
| Opening stock | 83,000 | Sundry Creditors | 99,000 |
| Wages | 7,500 | Sales | 4,20,000 |
| Purchases | 1,97,000 | Bank Overdraft | 56,400 |
| Motive Power | 15,000 | ||
| Bad Debts | 6,400 | ||
|
Printing and Stationery
|
4000 | ||
| Debtors | 96,000 | ||
| Cash at Bank | 52,000 | ||
| Machinery | 72,000 | ||
| Motor Van | 88,000 | ||
| 8,72,400 | 8,72,400 | ||
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.
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.
To find out Net Profit or Net Loss of the business __________ account is prepared.
A ______ is an intangible asset.
Write the word/phrase/term, which can substitute the following sentence.
The account to which all adjustments are made when capital is fixed.
Write the word/phrase/term, which can substitute the following sentence.
Expenses which are paid before they are due.
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.
Profit and Loss Account is a Real Account.
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.
Indirect expenses are debited to Trading Account.
Find odd one.
Find odd one.
Find odd one.
Return outward are deducted from ______.
Expenses which are paid before due date are called as _____.
Trading Account is prepared on the basis of ______ expenses.
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?
Current account always shows a debit balance.
Do you agree/disagree with the following statement:
Amount borrowed by partner from his business will be debited to Current Account.
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 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 :
- Closing Stock valued at ₹ 22,000.
- Write off ₹ 900 for Bad and doubtful debts and create a provision for Reserve for doubtful debts ₹ 1,000.
- Create a provision for Discount on Debtors @ 3% and creditors @ 5%.
- Outstanding Expenses - Wages ₹ 700 and Salaries ₹ 800.
- Insurance is paid for 15 months, w.e.f. 1st April 2018
- Depreciate Land and Building @ 5%
- Reena & Aarti are Sharing Profits & Losses in their Capital Ratio.
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.
The insurance premium is paid for the year ending 1st September 2019 amounted to ₹ 1,500. Calculate prepaid insurance assuming that the year ending is 31st March 2019.
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.
Returns outward are deducted from ______.
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.
Write the word/phrase/term, which can substitute the following sentences.
The account in which selling expenses of the business are recorded.
A ______ is an Intangible Asset.
Find odd one
Find odd one.
Find odd one.
Complete the following Table:
| Creditors | Bills Payable | Third-Party Liabilities |
| 16,000 | 12,000 | ? |
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.
Credit balance of Profit and Loss Suspense Account is shown in the Balance Sheet on ______ side.
Provident fund amount is a ______ for the firm.
Find an odd one.
Mama and Kaka are partners in partnership firm sharing profits and losses equally. You are required to prepare 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 Balances | Amount (₹) | Cebit Balances | Amount (₹) |
| Insurance | 30,000 | Capital Accounts: | |
| Land and Building ((Addition of ₹ 40,000 wef. 1st July, 2018)) | 1,00,000 | Mama | 1,00,000 |
| Salaries | 10,000 | Kaka | 1,00,000 |
| Export duty | 5,000 | 10% Bank Loan (taken on1st Oct. 2018) | 60,000 |
| Interest | 2,000 | Interest | 3,000 |
| Furniture | 80,000 | Bills payable | 16,000 |
| Debtors | 52,000 | - | |
| 2,79,000 | 2,79,000 | ||
Adjustment:
- Gross profit amounted to ₹ 69,000.
- Prepaid insurance ₹ 7,500.
- Depreciate Land and Building at 10% p.a. and Furniture 5% p.a.
- Write ₹ 2,000 for bad debts and maintain R.D.D. at 5% on sundry debtors.
- Closing stock is valued at ₹ 69,000.
Find the odd one.
Find odd one.
