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प्रश्न
State whether the following statement is True or False with reasons.
R.D.D. is created on Creditors.
विकल्प
True
False
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उत्तर
This statement is False.
Explanation:
R.D.D. stands for Reserve for Doubtful Debts. It is created on the value of debtors. Such provision is made against profit and loss account. In the future if the loss is incurred on account of bad debts, such amount is used to run the business.
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.
Credit balance of Profit and Loss Account.
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.
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:
- Asha should bring Rs. 80,000 as her share of goodwill, which is to be retained in the business.
- She should bring Rs. 1,00,000 as her capital for 1/4th share in future profits.
- land and building to be valued at Rs. 2,40,000 and furniture be reduced by 10%.
- A provision of 5% on debtors to be made for doubtful debts.
- The stock is to be taken at a value of Rs. 2,00,000.
- 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:
- Write off Rs. 8,000 for bad debts and provide R.D.D. @ 5% on debtors.
- Goods worth Rs. 16,000 were distributed as free samples.
- 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.
- The salaries were outstanding at Rs. 8,000.
- Depreciation: Land and Building @ 5% p.a. and Plant and Machinery @ 10 % p.a.
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 |
To find out Net Profit or Net Loss of the business __________ account is prepared.
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.
Write the word/phrase/term, which can substitute the following sentence.
Order in which fixed assets are recorded first in the Balance Sheet.
Write the word/phrase/term, which can substitute the following sentence.
The account in which selling expenses of the business are recorded.
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.
Net profit is a debit balance of Profit and Loss Account.
Find odd one.
Find odd one
Find odd one.
Find odd one.
The withdrawal by partner for personal use from the firm is ________ to his account.
Cash receipts which are recurring in nature are called as__________ Receipts.
Return outward are deducted from ______.
Expenses which are paid before due date are called as _____.
When goods are distributed as free samples, it is treated as ___________of the business.
Answer in one sentence only.
Why is Balance Sheet prepared?
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.
Do you agree/disagree with the following statement:
Carriage Inward is a selling and distribution overhead.
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.
Kshipra and Manisha are Partners sharing Profit and Loss in their Capital Ratio. You are required to prepare Trading Account 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 (₹) |
|
Sundry Debtors |
28,000 |
Sales |
1,20,000 |
|
Purchases |
55,000 |
Rent |
1,800 |
|
Furniture |
38,500 |
Sundry Creditors |
38,500 |
|
Plant & Machinery |
60,000 |
Purchase Return |
1,000 |
|
Wages |
800 |
Discount |
500 |
|
Salaries |
3,500 |
Bills Payable |
9,000 |
|
Discount |
800 |
Capital A/c: |
|
|
Bills Receivable |
14,400 |
Kshipra |
90,000 |
|
Carriage Outward |
1,000 |
Manisha |
30,000 |
|
Postage |
500 |
Current A/c: |
|
|
Sales Return |
500 |
Kshipra |
5,000 |
|
Cash in Hand |
4,000 |
Manisha |
3,000 |
|
Cash at Bank |
47,000 |
||
|
Insurance |
2,000 |
||
|
Opening Stock |
17,800 |
||
|
Trade Expenses |
1,500 |
||
|
Warehouse Rent |
2,500 |
||
|
Advertisement |
1,000 |
||
|
Building |
20,000 |
||
|
2,98,800 |
2,98,800 |
||
Adjustments:
- Stock on 31st March 2019 was at ₹37,000.
- Sales include the sale of machinery of ₹ 2,000, which is sold on 1st April 2018.
- Depreciation on fixed assets @ 5%.
- Each Partners is entitled to get Commission at 1% of Gross Profit and Interest on Capital 5% p.a.
- Outstanding Expenses Wages ₹ 200 & Salaries ₹ 500.
- Create provision for doubtful debts @ 3% on Sundry Debtors.
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:
- Closing Stock ₹ 40,000.
- Depreciate Building and Machinery @ 5% and 3% respectively.
- Bills Receivable included dishonoured bill of ₹ 3000.
- Goods worth ₹ 1000 taken by sun for personal use was not entered in the books of accounts.
- Write off ₹ 1800 as Bad debts and maintain R.D.D. at 5% on Sundry Debtors.
- Goods of ₹ 6000 were sold but no entry was made in the books of accounts.
State whether the following statement is True or False with reason:
Carriage Inward is carriage on purchases.
State whether the following statement is True or False with reason:
Profit and Loss Account is a Real Account.
A ______ is an Intangible Asset.
Find odd one
Find odd one
Find odd one.
Find the odd one:
Building, capital, reserve fund, bank loan
Asha and Nirasha are partners sharing profits and losses in the ratio of 1 : 1. From the following Trial Balance and additional information, prepare Trading and Profit and Loss account for the year ended 31st March, 2023 and Balance Sheet as on that date.
| Trial Balance as on 31st March, 2023 | |||
| Debit Balance | Amount (₹) | Credit Balance | Amount (₹) |
| Stock (1/4/2022) | 1,30,000 | General Reserve | 29,000 |
| Bills Receivable | 56,000 | Capital: | |
| Wages and Salaries | 18,000 | Asha | 3,20,000 |
| Sundry Debtors | 2,65,000 | Nirasha | 2,40,000 |
| Bad Debts | 2,000 | Creditors | 1,96,000 |
| Purchases | 2,96,000 | R.D.D. | 3,600 |
| Motor Car | 1,36,000 | Sales | 5,71,000 |
| Machinery | 2,29,600 | Outstanding Wages | 1,400 |
| Audit Fees | 2,400 | Purchases Returns | 8,000 |
| Sales Return | 4,000 | Discount | 3,600 |
| Discount | 4,600 | ||
| Building | 1,50,000 | ||
| Cash at Bank | 24,000 | ||
| 10% Investment | 40,000 | ||
| Advertisement (Paid for 9 months) | 9,000 | ||
| Royalties | 6,000 | ||
| 13,72,600 | 13,72,60 | ||
Adjustment and Additional Information:
(1) Closing Stock ₹ 80,000.
(2) Depreciation Building and Machinery @ 5% and 3% respectively.
(3) Bills Receivable included dishonoured bill of ₹ 6,000.
(4) Goods worth ₹ 2,000 taken by Asha for personal use was not entered in the books of accounts.
(5) Write off ₹ 3,600 as Bad debts and maintain R.D.D. at 5% on Sundry Debtors.
(6) Goods of ₹ 12,000 were sold but no entry was made in the books of accounts.
Undervaluation of closing stock by 10%, closing stock was of ₹ 54,000. Find out the value of closing stock.
Do you agree or disagree with the following statements:
Bills receivable is a current asset.
Credit balance of Profit and Loss Suspense Account is shown in the Balance Sheet on ______ side.
Zalak and Kalpana are partners sharing Profit and Losses in their Capital ratio. You are required to prepare Trading Account and Profit and Loss Account for the year ended 31st March, 2023 and Balance Sheet as on that date.
| Trial Balance as on 31st March, 2023 | |||
| Debit Balance | Amount (₹) | Credit Balances | Amount (₹) |
| Sundry Debtors | 56,000 | Sales | 2,40,000 |
| Purchases | 1,10,000 | Rent | 3,600 |
| Furniture | 77,000 | Sundry Creditors | 77,000 |
| Plant and Machinery | 1,20,000 | Purchase Return | 2,000 |
| Wages | 1,600 | Discount | 1,000 |
| Salaries | 7,000 | Bills Payable | 18,000 |
| Discount | 1,600 | Capital A/c: | |
| Bills Receivable | 28,800 | Zalak | 1,80,000 |
| Carriage Outward | 2,000 | Kalpana | 60,000 |
| Postage | 1,000 | Current A/c: | |
| Sales Return | 1,000 | Zalak | 10,000 |
| Cash in Hand | 8,000 | Kalpana | 6,000 |
| Cash at Bank | 94,000 | ||
| Insurance | 4,000 | ||
| Opening Stock | 35,600 | ||
| Trade Expenses | 3,000 | ||
| Warehouse Rent | 5,000 | ||
| Advertisement | 2,000 | ||
| Building | 40,000 | ||
| 5,97,600 | 5,97,600 | ||
Adjustments:
(1) Stock on 31st March, 2023 was at ₹ 74,000.
(2) Sales includes, sale of machinery of ₹ 4,000, which is sold on 1st April, 2022.
(3) Depreciation on fixed assets @ 5%.
(4) Each partner is entitled to get commission at 1 % of Gross profit and interest on Capital 5 % p.a.
(5) Outstanding Expenses: Wages ₹ 400 and Salaries ₹ 1,000.
6) Create provision for Doubtful debts @ 3 % on Sundry Debtors.
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 odd one.
Find odd one.
Find odd one.
Find odd one.
