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

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Solution

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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Partnership Final Accounts

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Chapter 1: Introduction to Partnership and Partnership Final Accounts - Exercise 1.1 (Objective Questions) [Page 52]

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Balbharati Book-Keeping and Accountancy [English] Standard 12 Maharashtra State Board

Chapter 1 Introduction to Partnership and Partnership Final Accounts
Exercise 1.1 (Objective Questions) | Q I. E. 16) | Page 52

2025-2026 (March) Board Question Paper (with solutions)

Q 1. (D) (5) | 1 mark

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RELATED QUESTIONS

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

Debit balance of trading account.

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 31^st March, 2012

Debit Balance	Amount Rs	Credit Balance	Amount Rs
Stock on 1^st 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.

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:

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.
Assets to be revalued as under:
Stock ₹6,300; Machinery ₹10,000; Furniture ₹10,200.
R.D.D. to be maintained at 10% on debtors.
₹100 to be written off from creditors.
The amount payable to Mrs. Kavita is to be transferred to her loan account.

Prepare:

Profit and loss adjustment account.
Partner’s capital account, and
Balance Sheet of new firm as on 01.04.2013.

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.

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

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

Carriage inward is a carriage on purchase.

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.

Bank loan is a current liability.

Find odd one.

Partners are _____ liable for the debts of the firm.

Trading Account is prepared on the basis of ______ expenses.

Answer in one sentence only.

What is the effect of the adjustment of provision for discount on debtors in the final accounts of partnership?

Answer in one sentence only.

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

Answer in one sentence only.

What do you mean by indirect incomes?

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:

Sold but undispatched goods must be part of valuation of closing stock.

Do you agree/disagree with the following statement:

Carriage Inward is a selling and distribution overhead.

Do you agree/disagree with the following statement?

All direct expenditures are debited to profit and loss account.

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 31^s^t 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 31^st 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) 1/8^th of Patents are to be written off.

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

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 1^st July 2018)		Nani	50,000
Salaries	5,000	10% Bank loan taken on 1^st 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.

Sun and Moon are Partners in Partnership Firm sharing Profits and Losses equally. You are required to give the effects of Adjustments with the help of the following information.

Trial Balance as on 31st March 2019

Debit Balance	Amount ₹	Credit Balance	Amount ₹
Land & Building	40,000	Capital A/C
Furniture	18,000	Sun	33,500
Machinery	40,000	Moon	33,500
(Purchased on 1/7/18)		Current A/c: Sun	6,000
Goodwill	2,000	Sundry Creditors	25,000
Wages	2,000	Bank Overdraft	10,000
Current A/c: Moon	4,000	Reserve Fund	5,000
8% Debentures	8,000	Providend Fund	5,000
(Purchased on 1/10/18)
Providend Fund Investment	3,500
Stock of Postal stamps	500
	1,18,000		1,18,000

Adjustments:

1) Partners are entitled to get salary ₹ 6,000 p.a. in addition to their profit & loss sharing.

2) Depreciation on Land & Building, Furniture & Machinery @10%, 5% and 3% respectively.

3) Interest on Capital 5% p.a.

4) Closing Stock ₹ 60,743.

5) Wages included ₹ 1,000 as advance is given to workers.

6) Interest due but not paid ₹ 800.

7) Total Net Profit amounted to ₹ 38,113.

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.

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.

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.

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.

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.

A ______ is an Intangible Asset.

Find odd one.

Find odd one.

Find odd one.

Find the odd one:

Royalty paid on production is shown in the ______.

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.

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.

Provident fund amount is a ______ for the firm.

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 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 the odd one.

Find odd one.

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

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