Advertisements
Advertisements
Question
To find out Net Profit or Net Loss of the business __________ account is prepared.
Options
Trading
Capital
Current
Profit & Loss
Advertisements
Solution
To find out Net profit or Net loss of the business Profit and Loss Account is prepared.
APPEARS IN
RELATED QUESTIONS
Write a short note on E-Commerce ?
Write the word/phrase/term, which can substitute the following sentence.
Credit balance of Profit and Loss 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.
Given below is the Trial Balance of M/s Seeta and Geeta as on 31st March, 2010. You are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2010 and Balance Sheet on that date.
Trial Balance as on 31st March, 2010
| Debit Balance |
Amount
(Rs)
|
Credit Balance |
Amount
(Rs)
|
| Current A/c- | Capital A/c- | ||
| Geeta | 4000 | Seeta | 120000 |
| Opening stock | 88,000 | Geeta | 120000 |
| Purchases | 1,76,000 | Current A/c- Seeta | 5000 |
| Wages | 23,500 | Sundry Creditors | 103000 |
| Salaries | 15,000 | Bank overdraft | 60000 |
| Office Expenses | 8000 | Sales | 308000 |
| Bank Charges | 2600 | ||
| Legal Charges | 3000 | ||
| Machinery | 90000 | ||
| Land and building | 130000 | ||
| Interest | 3600 | ||
| Export Duty | 3800 | ||
| Bad -Debts | 4000 | ||
| Sundry Debtors | 82000 | ||
| Travelling Expenses | 3200 | ||
| Electricity charges | 2300 | ||
| Furniture | 37000 | ||
| 8% Debentures (Purchased on 1.10.2009) |
40000 | ||
| 716000 | 716000 |
Adjustments:
1) Stock on hand on 31st March, 2010 was valued at Rs 80,000.
2) Goods costing Rs 16,000 destroyed by fire and Insurance Company admitted a claim of Rs 13,000.
3) Provide for outstanding expenses: Salaries Rs 3,000, Wages Rs 2,400.
4) Depreciate Machinery at 10% p.a. Land and Building at 5% p.a.
5) Create Reserve for Bad and doubtful debts at 5% on Sundry Debtors.
6) Legal charges paid in advance Rs 1,200.
7) Provide interest on capital at 8% p.a.
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.
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.
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 |
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.
Order in which fixed assets are recorded first in the Balance Sheet.
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.
R.D.D. is created on Creditors.
State whether the following statement is True or False with reasons.
Depreciation is not calculated on Current Assets.
State whether the following statement is True or False with reasons.
Goodwill is an intangible asset.
Find odd one.
Find odd one
Find odd one.
Partners are _____ liable for the debts of the firm.
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 ______.
Trading Account is prepared on the basis of ______ expenses.
Answer in one sentence only.
Why partners capital is treated as long-term liability of business?
Current account always shows a debit balance.
Do you agree/disagree with the following statement:
Carriage Inward is a selling and distribution overhead.
Calculate 12.5% P.A. depreciation on Furniture:
- on ₹ 2,20,000 for 1 year
- 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 |
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
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:
- The Closing Stock is valued at ₹ 15,400.
- Outstanding Wages ₹ 500.
- Create provision for Bad debts ₹ 800 and maintain R.D.D. 3% on Sundry Debtors.
- Goods of ₹ 1,800 distributed as a free sample.
- Goods of ₹ 2,000 were sold and delivered on 31st March 2019 but no entry is passed in the Books of Account.
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.
Kavya and Bhavya are partners, sharing profits and losses in the ratio 3 : 2. From the following Trial Balance and adjustments, prepare: Trading and Profit and loss Account for the year ending and Balance Sheet as on that date.
| Trial Balance as on 31st March, 2020 | ||
| Particulars | Debit Amount (₹) | Credit Amount (₹) |
| Capital: | ||
| Kavya | 7,50,000 | |
| Bhavya | 5,00,000 | |
| Sundry Debtors | 2,25,000 | |
| Sundry Creditors | 1,50,000 | |
| Rent (10 Months) | 5,000 | |
| Opening Stock | 2,67,750 | |
| Building | 4,25,000 | |
| Salaries | 25,000 | |
| Commission | 400 | 475 |
| Vehicles | 1,85,000 | |
| Sales | 4,20,250 | |
| Purchases | 3,20,250 | |
| Wages | 5,000 | |
| Office Expenses | 10,000 | |
| Bank Overdraft | 75,000 | |
| Goods Returns | 2,750 | 1,750 |
| Provident Fund Investment | 4,00,000 | |
| Cash in Hand | 20,000 | |
| Provident Fund Contribution | 50,000 | |
| Provident Fund | 1,40,000 | |
| Cash at Bank | 1,00,000 | |
| Interest on P.F. Investment | 21,000 | |
| Drawing: | ||
| Kavya | 10,000 | |
| Bhavya | 7,500 | |
| Bad-debts | 1,675 | |
| R.D.D. | 1,850 | |
| Total | 20,60,325 | 20,60,325 |
Adjustments :
- Closing Stock ₹ 1,80,000.
- Outstanding wages ₹ 1,500 and Salaries ₹ 1,000
- Depreciate Vehicles @ 5% p.a.
- Write off Bad debts of ₹ 2,500 and provide for R.D.D at 5% Sundry Debtors.
- Bhavya withdrew Goods of ₹ 3,000 for her personal use.
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:
- Closing stock is valued at cost ₹ 88,000 and market price ₹ 90,000.
- Asha and Nisha withdrew goods from business ₹ 3,000 and ₹ 2,000 respectively for their personal use.
- Depreciate Motor Van by 5% and Plant and Machinery by 7%.
- Reserve for Doubtful debts on Debtors at 5% is to be created.
- Outstanding Wages ₹ 800.
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 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.
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:
Profit and Loss Account is a Real Account.
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 | ? |
Find odd one.
Undervaluation of closing stock by 10%, closing stock was of ₹ 54,000. Find out the value of closing stock.
Royalty paid on production is shown in the ______.
Credit balance of Profit and Loss Suspense Account is shown in the Balance Sheet on ______ side.
Find an odd one.
Find an odd one.
Find the odd one.
