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Write the word/phrase/term, which can substitute the following sentence. The account to which all adjustments are made when capital is fixed.

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

The account to which all adjustments are made when capital is fixed.

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The account to which all adjustments are made when capital is fixed. - Current Account

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अध्याय 1: Introduction to Partnership and Partnership Final Accounts - Exercise 1.1 (Objective Questions) [पृष्ठ ५१]

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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. B. 10) | पृष्ठ ५१

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संबंधित प्रश्न

Sanjay and Sudhir are partners sharing profit and losses in the ratio 3: 2. The Trial Balance of the firm on 31st March, 2010 was follows:

Trial Balance as on 31st March, 2010
Particulars Amount
(Rs.)
Particulars Amount
(Rs.)
Opening stock 20,000 Capital A/c's  
Purchases 30,000 Sanjay 40,000
Debtors 12,000 Sudhir 30,000
Wages 5,000 Sales 70,000
Salaries 10,000 Sundry Creditors 21,000
Land and building 30,000 Bills Payable 20,000
Plant and machinery 25,000 Discount 5,000
Furniture 16,000 Outstanding Rent 1,500
Advertisement (for 2 years) 6,000    
Bills Receivable 8,000    
Insurance 2,000    
Drawings:      
Sanjay 2,000    
Sudhir 3,000    
Cash in hand 5,500    
Rent 10,000    
Power and Fuel 3,000    
  1,87,500   1,87,500

Adjustments:

1) Stock on hand on 31st March, 2010 was at Rs. 35,000.

2) Write off Rs. 2,000, for further Bad debts and maintain R.D.D. at 5% on debtors.

3) Depreciate Land and Building at 5% and Machinery at 10%.

4) Outstanding expenses were wages Rs 2,000 and salary Rs 1,000.

5) Credit purchases amounted to Rs 4,000 were not recorded in the books of accounts.

6) Provide interest on Partners Capital at 5% p.a.

From the above Trial Balance and adjustments prepare Trading and Profit and Loss Account for the year ended 31st March, 2010 and Balance Sheet as on that data.


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.

From the following Trial Balance of M/s Sanjay and Vijay, 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 after taking into consideration the adjustments given below.

                 Trial Balance as on 31st March, 2013

 

Debit Balance
Amount
Rs
Credit Balance
Amount
Rs
Salaries and wages 12000 Sales 110000
Postage and Telegram 1,750 Sundry Creditors 72700
Opening Stock 23,500 Bills Payable 40000
Plant and Machinery 70,000 10% Bank loan (Taken on 1st Oct 2012) 60000
Advertisement 5,000 Outstanding Audit fees 5900
Import duty 2,100 Capital A/c-  
Bad debts 1000 Sanjay 45000
Purchases 98500 Vijay 45000
Sundry Debtors 45800    
Bills Receivable 16700    
Carriage outward 1800    
Wages and stationery (Note 2) 14000    
Printing and stationery 4600    
Cash in hand 1850    
Leasehold Premises 80000    
  378600   378600

Adjustments:
1) Closing stock was valued at Rs 30,000.

2) Postage stamps of Rs 250 and stationery of Rs 400 are unused.

3) Goods of Rs 2,500 distributed as free samples.

4) Leasehold property is to be run for 10 years w.e.f. 1st October, 2012.

5) Depreciate Plant and Machinery at 10% p.a.

6) Mr. Rajan, our customer become insolvent and could not pay his debts of Rs 1,500.


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.


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.

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


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

An asset which can be converted into cash easily.


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.

Prepaid expenses are treated as liabilities.


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.

Goodwill is an intangible asset.


Partners are _____ liable for the debts of the firm.


The withdrawal by partner for personal use from the firm is ________ to his account.


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


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


Return outward are deducted from ______.


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:

Profit and Loss Account reflects the true Financial position.


Do you agree/disagree with the following statement?

All direct expenditures are debited to profit and loss account.


Sucheta and Gayatri are Partners sharing Profit and Loss in the ratio 3:2. From the following Trial Balance and additional information, 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

Particulars Debit ₹ Credit ₹
Purchases and Sales 65,000 1,85,500
Works Manager's Salary 2,300  
Capital:    
- Sucheta   75,000
- Gayatri   40,000
Opening Stock 18,700  
Debtors and Creditors 47,500 35,000
Wages and Salaries 4,000  
Bills Receivable 22,000  
Bills Payable   27,300
Discount   400
Motive Power 1,350  
Custom duty 1,500  
Interest   1,300
Unproductive Wages 3,000  
Audit fees 2,500  
Rent 1,800  
Conveyance 2,000  
Goodwill 25,000  
Copyrights 20,000  
Building 88,000  
Partner (Sucheta's) Loan   6,150
Investments 40,000  
Cash at Bank 26,000  
  3,70,650 3,70,650

Adjustments:

  1. Stock on 31st March 2019 was valued at ₹ 19,700.
  2. Goods costing ₹ 3,000 distributed as a free sample.
  3. Motive Power includes ₹ 500 paid for the deposit of the Power Meter.
  4. Depreciate Building @ 5%.
  5. Write of ₹ 2,000 for Bad debts and maintain R.D.D at 3% on Debtors.
  6. Bills Receivable included dishonored of Bill of  ₹ 4,000.

Archana and Prerana are partners, sharing Profits and Losses in the ratio 2: 1 with the help of 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 ₹ 

Stock (1/4/2018)

8,560

Capital:

 

Patents

2,000

Archana

40,000

Sundry Debtors

18,500

Prerana

20,000

Stock of Stationary

3,000

Other Loans

3,000

Trade Mark

2,000

Reserve fund

1,000

Bills Receivable

6,300

Sundry Creditors

17,500

Electricity charges

1,450

Bills Payable

5,000

Wages

950

Purchase Return

1,000

Heating & Lighting

1,000

R.D.D

500

Trade Expenses

850

Sales

30,200

Sales Return

400

Interest

310

Land & Building

22,000

   

Furniture

13,000

   

Cash at Bank

5,000

   

Investments

7,500

   

Drawings :

     

Archana

1,200

   

Prerana

900

   

Bad debts

200

   

Purchases

23,700

   
 

1,18,510

 

1,18,510

Adjustments:

1) Stock on 31st March 2019 is valued at Cost Price ₹ 12,000 and Market Price ₹ 17,000.

2) Our customer Mr. Shekhar failed to pay his dues of ₹ 800.

3) 1/8th of Patents are to be written off.

4) A part of Furniture ₹ 5,000 is purchased on 1st Oct 2018.

5) Depreciation on Land & Building 10% and on Furniture 5%.

6) Outstanding Expenses Wages ₹ 300 and Electricity Charges ₹ 200.

7) Allow Interest on Capital 3%. 


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.

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:

  1. Stock on 31st March 2019 was at ₹37,000.
  2. Sales include the sale of machinery of ₹ 2,000, which is sold on 1st April 2018.
  3. Depreciation on fixed assets @ 5%.
  4. Each Partners is entitled to get Commission at 1% of Gross Profit and Interest on Capital 5% p.a.
  5. Outstanding Expenses Wages ₹ 200 & Salaries ₹ 500.
  6. Create provision for doubtful debts @ 3% on Sundry Debtors.

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.


Borrowed loan from Bank of Maharashtra ₹ 2,00,000 on 1st October 2019 at a rate of 15% p.a. Calculate Interest on Bank Loan for the year 2019-20 assuming that the financial year ends on 31st March, every year.


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.

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:

  1. Closing Stock is valued at Cost Price ₹ 28,000 and Market Price ₹ 32,000.
  2. Insurance is paid up to 30th June 2019. 
  3. Outstanding Expenses - Wages ₹ 800, Salaries ₹ 700.
  4. Book value of Plant and Machinery is reduced to ₹ 13,000.
  5. Depreciate Furniture by 5% p.a.
  6. Provide further Bad debts of ₹ 800.
  7. Goods of ₹ 3,000 distributed as a free sample.

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 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:

  1. Closing stock ₹ 48,700.
  2. Outstanding Expenses - Wages ₹ 700 and Travelling Expenses ₹ 200.
  3. Depreciate Land and Building by 10% and Furniture by 5%.
  4. Insurance Paid in Advance ₹ 300.
  5. Goods of ₹ 3,000 destroyed by fire and Insurance Company rejected the claim fully.

Varsha and Harsha are partners sharing profits and losses in their capital ratio. You are required to prepare Trading Account, Profit and Loss Account for the year ending 31st March, 2020 and Balance sheet as on that date:

 Trial Balance as on 31st March, 2020
Debit Balance  Amount ₹ Credit Balance  Amount ₹
sundry Debtors 56,000 Sales  2,40,000
Purchases 1,10,000 Sundry Creditors 99,600
Plant & machinery 1,60,000 Purchases Return 2,000
Furniture 1,05,800 Capital accounts  
Salaries 8,600 Varsha 1,80,000
Sales return 1,000 Harsh 60,000
Cash in hand 1,02,000 Current Accounts:  
Opening stock 35,600 Varsha 10,000
Rent, Rates & Taxes 9,000 Harsha 6,000
Advertisement 9,600    
  5,97,600   5,97,600

Adjustments:

  1. Stock on 31st March, 2020 was valued at ₹ 74,000.
  2. Depreciation on Plant and Machinery @ 5% p.a.
  3. Partners are entitled to get Interest on Capital at 5% p.a.
  4. Outstanding expenses: Salaries ₹ 700.
  5. Provide further Bad debts of ₹ 1,680 on Sundry debtors.

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

The account in which selling expenses of the business are recorded.


State whether the following statement is True or False with reason:

Carriage Inward is carriage on purchases.


Find odd one.


Find odd one.


Complete the following Table:

Creditors Bills Payable Third-Party Liabilities
16,000 12,000 ?

Find the odd one:

Building, capital, reserve fund, bank loan


Provident fund amount is a ______ for the firm.


Find an odd one.


Find odd one.


Find odd one.


Find odd one.


Find odd one.


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