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Trading Account is prepared on the basis of ______ expenses. - Book Keeping and Accountancy

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Question

Trading Account is prepared on the basis of ______ expenses.

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Solution

Trading Account is prepared on the basis of direct expenses.

Explanation:

A trading account is prepared based on direct expenses, which are incurred in the process of purchasing and manufacturing goods, such as wages, carriage inward, and freight, to determine the gross profit or gross loss of a business.

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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. 18) | Page 52

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RELATED QUESTIONS

Select the most appropriate alternative from those given below and rewrite the statement.

Return outward are deducted from __________________.


Rohan and Roshan are partners in ‘Shan Traders’ 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, 2011 and Balance Sheet as on that date

Trial Balance as on 31st March, 2011
Particulars Amount (₹) Particulars Amount (₹)
Opening stock 32,000 Sales 1,93,500
Purchases 64,000 Sundry Creditors 15,000
Plant and Machinery 30,000 Unpaid Wages 1,500
Furniture 18,500 Return outward 2,500
Carriage 1,500 Capital A/c:  
Wages and Salaries 35,000 Rohan 90,000
Bills Receivable 5,000 Roshan 50,000
Sundry Debtors 32,000    
Conveyance 4,000    
Rent, Rates and Taxes 2,000    
Return Inward 3,500    
Cash in hand 14,750    
Land and Building 83,500    
Bad debts 1,750    
Patents 25,000    
  3,52,500   3,52,500

Adjustments:

  1. Closing stock: Cost price Rs 25,000 and market price Rs 30,000.
  2. An amount of Rs 3,500 spent for repairs to Building is debited to Building account.
  3. Depreciate plant and Machinery and Building at 5% p.a.
  4. Goods of Rs 750 taken by Roshan for this personal use.
  5. Included in wages advances given to workers Rs 3,000.
  6. Provide Rs 1,500 for bad and doubtful debts on Debtors.

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.


Mohini and Rohini are in partnership firm 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, 2010 and Balance Sheet as on that date.

            Trial Balance as on 31st March, 2010

Particulars Debit Amount Rs.  Credit Amount Rs
Partner’s Capital A/c-    
Mohini   120000
Rohini   90000
Purchases and Sales 220000 430000
Sundry Debtors and Creditors 45000 35000
Bills Receivable and Bills Payable 45000 50000
Discount 4000 3500
Opening stock 25000  
Wages and Salaries 23000  
Manufacturing Expenses 9,000  
Factory Insurances

5,000

 
Factory Building 1,40,000  
Plant and Machinery

75,000

 
Advertisement (for 2years w.e.f. 1st Jan. 2010) 10,000  
Salaries and Wages

45,000

 
Warehouse rent

6,000

 
Import duty

11,500

 
Cash in hand 5,000  
10% Government Bond (Purchased on 1st July 2009) 60000  
  728500 728500

Adjustments:

1) Closing stock was valued at market price Rs 92,000 which is 15% above its cost price.

2) Goods costing Rs 3,000 purchased and received on 31st March, 2010 were not recorded in purchase book.

3) Depreciate Machinery at 10% p.a.

4) Outstanding Wages were Rs 2,500.

5) Goods of Rs 2,000 were taken by Mohini for personal use but no entry was made in the books of account.

6) Maintain R.D.D at 5% on Sundry Debtors.


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.


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:

  1. Asha should bring Rs. 80,000 as her share of goodwill, which is to be retained in the business.
  2. She should bring Rs. 1,00,000 as her capital for 1/4th share in future profits.
  3. land and building to be valued at Rs. 2,40,000 and furniture be reduced by 10%.
  4. A provision of 5% on debtors to be made for doubtful debts.
  5. The stock is to be taken at a value of Rs. 2,00,000.
  6. 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.


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.

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

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


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.

Prepaid expenses are treated as liabilities.


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.

Income received in advance is a liability.


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.

Goodwill is an intangible asset.


Find odd one.


Find odd one.


Partners are _____ liable for the debts of the firm.


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.

Why is Balance Sheet prepared?


Answer in one sentence only.

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


Do you agree/disagree with the following statement:

Gross profit is an operation profit.


Undervaluation of Closing Stock by 10%. Closing Stock was ₹30,000 find out the value of Closing Stock.


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.

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.


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 :

  1. Closing Stock ₹ 1,80,000.
  2. Outstanding wages ₹ 1,500 and Salaries ₹ 1,000
  3. Depreciate Vehicles @ 5% p.a.
  4. Write off Bad debts of ₹ 2,500 and provide for R.D.D at 5% Sundry Debtors.
  5. Bhavya withdrew Goods of ₹ 3,000 for her personal use.

Returns outward are deducted from ______.


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 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.


A ______ is an Intangible Asset.


Find odd one


Find odd one.


Find odd one.


Find the odd one:


Find the odd one:

Building, capital, reserve fund, bank loan


Undervaluation of closing stock by 10%, closing stock was of ₹ 54,000. Find out the value of closing stock.


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.


Advertisement expense ₹ 80,000 paid for 2 years from 1st Jan. 2022. Calculate prepaid advertisement expense for the year ended on 31st March, 2022.


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:


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:

  1. Gross profit amounted to ₹ 69,000.
  2. Prepaid insurance ₹ 7,500.
  3. Depreciate Land and Building at 10% p.a. and Furniture 5% p.a.
  4. Write ₹ 2,000 for bad debts and maintain R.D.D. at 5% on sundry debtors.
  5. Closing stock is valued at ₹ 69,000.

Find odd one.


Find the odd one.


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