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महाराष्ट्र राज्य शिक्षण मंडळएचएससी वाणिज्य (इंग्रजी माध्यम) इयत्ता १२ वी

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 _____.

रिकाम्या जागा भरा
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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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पाठ 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
पाठ 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

What do you mean by intangible asset?

Given below is the Trial Balance of M/s Roma and Mona partnership firm. Prepare Trading and Profit and Loss Account for the year ended 31st March, 2012 and Balance Sheet as on that date

                  Trial Balance as on 31st March, 2012

Debit Balance
Amount
Rs
Credit
Balance
Amount
Rs
Stock on 1st April, 2011 52000 Provident fund 50000
Sundry Debtors 84000 Interest on P.F. Investment 2800
Bad debts 3000 Sundry Creditors 84000
Premises 78000 Rent received 9600
Salaries 28000 Reserve for Doubtful Debts 2000
Motor Vehicles 50000 Discount received 3600
Purchases 176000 Sales 320000
Provident Fund Investment 50,000 Capital A/c-   
Provident Fund contribution 5500 Roma 50000
Wages 22000 Mona 50000
Rent (for 10 months) 16,000    
Office Expenses 5,000    
Discount allowed 2,500    
  572000   572000

Adjustments:

1) Stock on 31st March, 2012 was valued at Rs 80,000.

2) Goods of Rs 6,000 were sold and despatched on 27th March, 2012, but no entry was made in the books of accounts.

3) Write off Bad debts of Rs 4,000 and provide for R.D.D. at 5% on sundry debtors.

4) Provide reserve for discount on debtors at 2% and on creditors at 3%.

5) Outstanding wages Rs 4,000 and outstanding salaries Rs 3,066.

6) Depreciate Motor Vehicle at 5% p.a.


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.

Anita, Sunita and Kavita were partners sharing profits and losses in the ratio 3:3:2. Their Balance Sheet as on 31st March 2013 is as below:

Balance Sheet as on 31st March, 2013.
Liabilities
Amount
(₹)
Assets
Amount
(₹)
Capital Accounts
11,000
Building
10,000
Anita
15,000
Machinery
10,700
Sunita
8,000
Furniture
10,000
Kavita
10,000
Debtors
5,000
Creditors
10,900
Stock
6,600
Reserve fund
4,000
Cash
6,600
 
On 1st April, 2013, Mrs. Kavita retired from the firm on the following terms:
  1. Goodwill of the firm is to be valued at ₹4,000, however, only Kavita’s share in it is to be raised in the books and written off immediately.
  2. Assets to be revalued as under:
    Stock ₹6,300; Machinery ₹10,000; Furniture ₹10,200.
  3. R.D.D. to be maintained at 10% on debtors.
  4. ₹100 to be written off from creditors.
  5. The amount payable to Mrs. Kavita is to be transferred to her loan account.
Prepare:
  1. Profit and loss adjustment account.
  2. Partner’s capital account, and
  3. Balance Sheet of new firm as on 01.04.2013.

A ______ is an intangible asset.


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.

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.

Wages paid for the installation of Machinery is a Revenue expenditure.


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

R.D.D. is created on Creditors.


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


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


If partners Current Account shows ______ balance it is shown to the liability side of Balance sheet


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 ______.


Answer in one sentence only.

What do you mean by pre-received income?


Current account always shows a debit balance.


Do you agree/disagree with the following statement?

All direct expenditures are debited to profit and loss account.


Do you agree/disagree with the following statement:

Free distribution of goods is debited to the trading account.


Calculate 12.5% P.A. depreciation on Furniture:

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

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
(Purchased on 1st Oct 2018)

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 of M/S Meera and Madhav. 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)

25,000

Bank overdraft

5,000

Debtors

80,500

Bills Payable

12,500

Bills Receivable

10,000

Creditors

68,000

Purchases

2,08,500

Sales

3,25,000

Returns

1,000

Outstanding Rent

2,000

Carriage Inward

3,000

Unpaid Wages

1,500

Carriage Outwards

4,500

Capital :

 

Motor Vehicle

55,000

Meera

75,000

General Expenses

1,800

Madhav

75,000

Export Duty

900

Purchase Return

1000

Advertisement

4,800

   

(For 3 years from 1/10/2018)

     

Printing & Stationery

1,200

   

Drawings :

     

Meera

3,500

   

Madhav

2,000

   

Leasehold Premises

1,10,000

   

Cash at Bank

45,000

   

Furniture

8,300

   
 

5,65,000

 

5,65,000

Adjustments :

1) Closing Stock is valued at  ₹32,000.

2) Provide Provision for Doubtful Debts ₹ 2,000.

3) Create reserve for Discount on Debtors @ 3%.

4) Valued of Leasehold Premises on 31st March 2019 ₹1,00,000.

5) Outstanding Expenses Printing & Stationary ₹500.


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%. 


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.


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.

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.


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.


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


A ______ is an Intangible Asset.


A ______ is an Intangible Asset.


Find odd one.


Find odd one.


Registration of Partnership is ______ in India.


Find the odd one:


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.


From the following Trial Balance and Adjustments given below of Rutul and Atul, you are required to 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 Balances Amount (₹) Credit Balances Amount (₹)
Purchases 71,000 Sales 1,16,400
Sundry Debtors 80,000 Sundry Creditors 51,400
Sales Returns 2,000 Purchase Returns 1,000
Opening Stock 36,200 R.D.D. 1,600
Bad Debts 1,000 Discount 100
Land & Building 50,000 Commission 500
Furniture 40,000  Capital A/cs:  
Discount 2,000 Rutul 1,00,000
Royalties 1,400 Atul 60,000
Rent 3,800    
Salaries 6,000    
Wages 1,600    
Insurance 3,000    
Drawing:      
Rutul 4,000    
Atul 2,000    
Cash at Bank 23,000    
Cash in Hand 4,000    
  3,31,000   3,31,000

Adjustments:

(1) Closing stock valued at ₹ 44,000.

(2) Write off ₹ 1,800 for bad and doubtful debts and create a provision for reserve for doubtful debts ₹ 2,000.

(3) Create a provision for discount on debtors @ 3% and on creditors @ 5%.

(4) Outstanding expenses: Wages ₹ 1,400 and Salaries ₹ 1,600.

(5) Insurance is paid for 15 months, w.e.f. 1st April, 2022.

(6) Depreciate Land and Building @ 5%.

(7) Rutul and Atul are sharing Profits and Losses in their Capital Ratio.


Find the odd one:


From the following Trial Balance of Hira and Manek, 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 Balances Amount (₹) Credit Balances Amount (₹)
Stock (1 /4/2022) 50,000 Bank Overdraft 10,000
Debtors 1,61,000 Bills Payable 25,000
Bills Receivable 20,000 Creditors 1,36,000
Purchases 4,17,000 Sales 6,50,000
Sales Returns 2,000 Outstanding Rent 4,000
Carriage Inward 6,000  Unpaid Wages 3,000
Carriage Outward 9,000 Capital A/cs:  
Motor Vehicle 1,10,000 Hira 1,50,000
General Expenses 3,600 Manek 1,50,000
Export Duty 1,800 Purchase Returns 2,000
Advertisement (For 3 years from 1/10/2022) 9,600    
Printing and Stationery 2,400    
Drawings:      
Hira 7,000    
Manek 4,000    
Leasehold Premises 2,20,000    
Cash at Bank 90,000    
Furniture 16,600    
  11,30,000   11,30,000

Adjustments:

(1) Closing stock is valued at ₹ 64,000.

(2) Provide provision for doubtful debts ₹ 4,000.

(3) Create reserve for discount on debtors @ 3%

(4) Value of leasehold premises on 31st March, 2023 ₹ 2,00,000.

(5) Outstanding expenses: Printing and Stationery ₹ 1,000.


Find odd one.


Find odd one.


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