1st Semester Accounts Selected Question PDF

Bhalotia Classes (9883034569): 1st Sem Acct crash course @ 1000
Accounts 1st Semester: [80 Marks]

Red: 1st Important
Blue: 2nd Important
Green: 3rd Important
3 days Crash course During Exams GAP

1st Semester Acct: ₹ 1000
[From 7th Feb (2 pm) to 9th Feb]
Whats'App ur name at 9883034569 to register
2nd Semester regular classes from 15th Feb:

Cost: ₹ 2500
Theory: 1500/subject
Whats'App ur name at 9883034569 to register
Classes at Girish Park:

72/B Tarak Pramanick Road,
2nd Floor, Opposite Metro Ice-cream distributor,
kolkata-700006
- 1 – No guarantee of any Question. Prepare as much as possible. Best of luck

Depreciation [10 Marks]

[P/B/D may be in option]
3. Depreciation: [S.L.M Method] [4th Important]****
Kalyani Industries depreciates its machinery at 10% p.a. on straight line basis. On 1st April, 2019 the balance in
Machinery Account was ₹ 8,50,000 (original cost ₹ 12,00,000). On 1st July, 2019 a new machine was
purchased for ₹ 25,000. On 31st December, 2019 an old machine having written down value of ₹ 40,000 on
1.4.2019 (original cost ₹ 60,000) was sold for ₹ 30,000. Show the Machinery Account for the year ended on
31st March, 2020.
4. Depreciation: [2nd Important]*********

On 1st January, 2016, machinery was purchased by X for ₹ 50,000. On 1st July, 2017, additions were made to
the extent of ₹ 10,000. On 1st April, 2018, further additions were made to the extent of ₹ 6,400. On 30th June,
2019, machinery, original value of which was ₹ 8,000 on 1st January, 2016, was sold for ₹ 6,000. Depreciation
is charged @ 10% p.a. on original cost. Show Machinery Account for the years from 2016 to 2019 in the books
of X. X closes his books on 31st December.
5. Depreciation: [SLM] [2nd Important]*********

On April 1, 2017 B. Sarkar and Co. bought a machine at ₹ 80,000. The Company had to pay ₹ 5,000 as its
installation charges. On July 1 of the same year another machine was bought at ₹ 1,00,000.
On 30th June, 2019 the first machine was sold out for ₹ 65,000 to replace a new machine costing ₹ 1,00,000.
Show the Machinery A/c as it would appear in the books of the Company during all these years upto 31st
December, 2019 assuming that the books of accounts are closed on 31st December every year and Depreciation
is to be written off @ 10% p.a. on the original cost of these machines.
6. Depreciation: [SLM] [2nd Important]*********

On 1.1.2016 Ronald company Ltd. purchased a machine for ₹ 10,000. On 1.7.2016 the company again
purchased another machine for ₹ 5,000. On 1.7.2017, the machine purchased on 1.1.2016 was sold for ₹
4,000. On 1.7.2018 a new machine was bought for ₹ 12,000. On the same day the machine purchased on
1.7.2016 was sold for ₹ 4,200. Depreciation was provided @ 10% p.a. on Straight Line Method. Show the
Machinery Account on the basis of Ronald Ltd. upto 31.12.2019.
7. Depreciation: [W.D.V Method] [3rd Important]********

A. Ltd. purchased the following machines:
On 1st January, 2018 40,000
On 1st July, 2018 20,000
On 1st October, 2019 10,000
Depreciation was provided @ 10% p.a. under the diminishing balance method. The machine purchased on 1st
July, 2018 was sold on 31st March, 2019 at ₹ 15,000.
Show the necessary ledger accounts in the books of A Ltd. for the years 2018 and 2019 assuming that the
accounts are closed on 31st December every year.
[Depreciation — 2018 ₹ 5,000 ; 2019 ₹ 475 on machine sold and ₹ 3,850 on others. ₹ Loss on sale ₹
3,525. Balance of Machinery A/c on 31.12.19 ₹ 42,150]

8. Depreciation: [W.D.V Method] [3rd Important]********
The book value of plant and machinery of a firm shows ₹ 2,40,000 on 1st January, 2019. The same includes the
depreciated value of a machine purchased on 1st January, 2014 for ₹ 30,000. It was sold on 1st April, 2019 for ₹
14,900. On the same date a new machine was purchased for ₹ 40,000.
Show the plant and machinery account for the year 2019 assuming depreciation is charged @ 10% p.a. under
diminishing balance method. [Depreciation for 2019 : ₹ 443 on machinery sold and ₹ 25,229 on others.
Loss on sale ₹ 2,372. Balance of Plant and Machinery A/c on 31.12.19 ₹ 2,37,056]
14.Depreciation: [Change of Method] [1st Important]*********

A company purchased machinery for ₹ 60,000 on 1st January, 2016 and followed the Diminishing Balance
Method of charging depreciation @ 15% p.a. At the end of 2019, it was decided to follow the straight line
Method of depreciation the machine at ₹ 6,000 per year from the date of purchase of the machinery and the
necessary adjustment for change of method of depreciation to be made in 2019.
Prepare the Machinery Account for the year 2016 to 2019. Show the necessary working in detail.
16.Depreciation: [Change of Method] [1st Important]*****************

M/S ABC Concern purchased machinery for Rs. 1, 80,000 on 1st January, 2016 and followed straight line
method of depreciating the machine charging depreciation @ 15% p.a. On 1.1.2019 it was decided to follow the
diminishing balance method charging depreciation @ 10% p.a. from the date of purchase of the machinery and
the necessary adjustment for change of method of depreciation to be made as on 31.12.2019.
Prepare the Machinery Account for the year 2016 to 2019. Show the detailed workings.
18. Depreciation: [Change of Method] [2nd Important]***************

H Ltd. charged depreciation at 10% p.a. on diminishing balances. On 01.01.2019 there was a balance of ₹
2,43,000 in Machinery Account.
On 01.07.2019 new machine costing ₹ 72,000 was installed. Installation charge amounted to ₹ 3,000.
On 01.07.2019 a machine was sold at ₹ 43,000 the cost of which was ₹ 60,000 as on 01.01.2017. It was
decided in 2019 to change the depreciation method from diminishing balance' to 'straight line' with effect from
01.01.2017, keeping the rate of depreciation same as before. Show the Machinery Account in the books of the
company for 2019.
[Additional Depre: 2,400; Loss on sale: 3,170; Book value: 239250]
Adjustment entries
1. Adjustment Entries: [B.com 2012] [3rd Important]
Pass necessary adjustment entries before preparing final accounts for the year ended 31.03.2019 in respect
of the following:
(i) Closing stock as on 31st March, 2019 ₹ 20,000;
(ii) Unpaid salary for ₹ 3,000 is to be provided for in the accounts;
(iii) To carry forward ¼ th of insurance premium paid at ₹ 4,000;
(iv) Goods costing ₹ 1,500 were distributed by way of free samples during the year.

Provision for Bad debts

1. Provision for Bad Debts: [1st Important]****************
The following figures appear in the books of Mr. X:
2018 ₹
June 1. Provision for Doubtful Debts 1,350
Provision for Discount Allowed 620
Bad Debts written-off during the year 395
Discount allowed during the year 845
Bad Debts recovered during the year 75
2019
May 31. Sundry Debtors 11,170
Write-off further ₹ 240 (judged completely irrecoverable). Maintain the provision for doubtful debts @ 10 %
and provision for discount allowed @ 2%.
You are required to show the Bad Debts Account, Provision for Doubtful Debts Account. Discount Allowed
Account and Provision for Discount Allowed Account for the year in question.
[Transferred to P & L A/c for Prov. for Bad Debts ₹ 378; for Prov. for Discount on Debtors ₹ 422]
2. Provision for Bad Debts: [2nd Important]*****

A company maintains its Provision for Bad Debts @ 5% and Provision for Discount on Debtors @ 3%. From
the following particulars you are required to show (i) Provision for Bad Debts Account (ii) Provision for
Discount on Debtors Account for the year 2019.
Bad Debts – Rs. 800; Discount Allowed – Rs. 1,200; Recovery of Bad Debts written off in earlier years Rs. 500.
Sundry Debtors (before writing off bad debts and allowing discounts) amounted to Rs. 60,000 as on 31st
December, 2019. On 1.1.2019, Provision for Bad Debts was Rs. 4550 and Provision for Discount on Debtors
was Rs. 800.
6. Provision for Bad Debts: [2nd Important]*****

The following is the extract from the Trail Balance of Mr. A Banerjee as on 31st December, 2019:
Particulars Dr. Cr.
₹ ₹
Bad Debts 8,000 -
Sundry Debtors 3,00,000 -
Provision for Bad & Doubtful debts - 12,000
It is desired to maintain a provision of 5% for bad and doubtful debts.
Prepare the Bad Debts account and Provision for Bad and Doubtful Debts Account. Also show how the
relevant items would appear in the Profit and Loss Account and Balance Sheet.
8. Provision for Bad Debts: [3rd Important]*****

Abinash is a trader. He maintains provision for doubtful debts @ 5% and Provision for discount on
debtors @ 2%. On 1.1.2018, he had balances in these two accounts ₹ 3,000 and ₹ 1,000 respectively.
The following particulars are available from his Trial Balances as on 31.12.2018 and 31.12.2019.
31.12.18 31.12.19
₹ ₹
Bad debts written off 3,600 600
Discount allowed 1,200 400
Sundry Debtors 40,000 12,000
Prepare Provision for doubtful debts A/c and Provision for discount on debtors A/cs in the books of
Abinash for the years 2018 and 2019.

Capital & Revenue Exp [5 Marks]

[Inventory/Rectification may be in option]
1. Capital & Revenue Expenditure [5 Marks] [1st Important]*******
State which of the following expenditures are capital, revenue and deferred revenue expenditure and capital
loss:
(a) Cost of overhauling and painting a second hand truck newly purchased.
(b) ₹ 25,000 were spent on air conditioning the office of the General Manager.
(c) ₹ 30,000 were spent on heavy advertising in connection with the introduction of a new product.
(d) ₹ 500 was paid out in connection with carriage on goods purchased.
(e) Freight and cartage amounting to ₹ 4,000 were paid on purchase of a new plant and a sum of ₹
2,000 was spent as erection charges of that plant.
Solution:
(a) When a second hand machine is purchased, all expenditure incurred in the beginning to make it fit
for working is treated as capital expenditure. The value of the machine is increased by the amount
spent. Therefore the cost of overhauling and painting the truck will be treated as capital expenditure.
(b) The sum of ₹ 25,000 spent on air conditioning the office of General Manager is capital expenditure
because it represents a fixed asset. Moreover, the effect of air conditioning will be available for
several years to come, and it can possible by disposed of, if desired, at a future date, when it will
fetch some return.
(c) Since the benefit of ₹ 30,000 spent on advertising will occur for several years, it is of capital nature.
It may be treated as deferred revenue expenditure and be written off against the profit and loss
account of a number of years.
(d) The expenditure of ₹ 500 incurred on carriage on goods purchased is of revenue expenditure because
the goods are meant for resale.
(e) The expenditure incurred by way of freight and cartage amounting to ₹ 4,000 and the erection
charges of ₹ 2,000 are both of capital nature. The former has been incurred for erecting it so that it
may be used for business purposes.
2. Capital & Revenue Expenditure [2nd Important]*******

State with reason whether the following are capital expenditure or Revenue expenditure:
(i) ₹ 50,000 spent towards addition to the machinery;
(ii) Second-hand motor car purchased for ₹ 2,00,000and spent ₹ 20,000 for repairs immediately;
(iii) ₹ 10,000 spent for whitewashing the factory building;
(iv) Carriage of ₹ 15,000 spent on machinery purchased and installed.
3. Capital & Revenue Expenditure [3rd Important]*******

State with reasons whether the following are capital expenditure or revenue expenditure.
i. ₹ 1, 00,000 spent towards addition to the machinery.
ii. Second-hand furniture purchased for ₹ 50,000 and spent ₹ 12,000 spent for repairing before using it.
iii. ₹ 10,000 spent for repair works of the building.
iv. ₹ 10,000 spent for carriage of goods.

Inventory
8. Inventory: Valuation of Stock [B.com 2013 Pass] [3rd Important]
Calculate the value of closing stock as on 31.03.19 from the following information:
i. Value of physical stock taken on 10.04.19 (for the year ended 31.03.19) was ₹ 5 00,000.
ii. Purchased during the period from 01.04.19 to 10.04.19 was ₹ 50,000 out of which ₹ 10,000
worth of goods was received on 15.04.19.
iii. Freight paid on above purchases was ₹ 5,000
iv. Goods sold during the period from 01.04.19 to 10.04.19 (making a profit 25% on cost) were ₹
55,000.
11. Inventory: Valuation of Stock [B.com 2014 Honours] [4th Important]

From the following particulars for the year ended 31.03.19, determine the value of the closing stock at the
end of the year.
₹
Opening stock on 01.04.18 40,000
Purchases 2, 25,000
Sales 3, 00,000
At the end of the year goods purchased on credit for ₹ 25,000 were received but no entry passed for non-
receipt of invoice. Uniform rate of Gross Profit is 30%.
New Qn: Inventory: Valuation of Stock [Mock Test Paper Set 1] [2nd Imp]***
Z who was closing his hooks on 31.3.2018 failed to take the actual stock which he did only on 9th April,
2018 when it was ascertained by him to be worth Rs. 50,000.
(i) It was found that sales are entered in the sales book on the same day of dispatch and return inwards
in the returns book as and when the goods are received back.
(ii) Purchases are entered in the Purchase Day Book once the invoices are received.
(iii) It was found that sales between 31.3.2018 and 9.4.2018 as per the Sales Day Book are Rs. 3,440.
(iv) Purchases between 31.3.2018 and 9.4.2018 as per Purchase Day Book are Rs. 240, out of these
goods amounting to Rs. 100 were not received until after the stock was taken.
(v) Goods invoiced during the month of March, 2018 but goods received only on 4th April, 2018
amounted to Rs. 200. Rate of Gross Profit is 33 1/3% on cost.
Ascertain the value of stock as on 31.3.2018.
New Qn: Inventory: Valuation of Stock [2017 Pass] [1st Important]*********

A trader prepared his accounts on 31/3/2017. However stock taking was done on 10/04/2017 amounting ₹
40,000. The following transactions took place between 1/4/2017 to 10/04/2017:
a) Sales amounted to Rs. 75,000
b) Purchases during the period Rs. 30,000
c) Purchases Return Rs. 5,000
d) Sales Return Rs. 2,000
e) Rate of Gross profit on cost 25 %
Determine the value of closing stock as on 31/03/2017.

Rectification of Errors
7. Rectification of Errors: [After Trial Balance] [3rd Important]****
Rectify the following error after preparation of Trial Balance
(a) Goods taken by proprietor ₹ 2,5000 for gifts to his daughter, were not recorded at all.
(b) ₹ 2,000 received from Bimal against debts previously written off as bad debts have been credited to
his personal account.
(c) Received interest ₹ 1,500, posted to Loan Account.
(d) A cheque received from Amal, a debtor, for ₹ 4,000 was directly received by the proprietor who
deposited it into his personal bank account.
11. Rectification of Errors: [After Trial Balance] [2nd Important]*******

In taking out a trial balance, a book-keeper finds that debit total exceeds the credit total by ₹ 352. You are
required to pass the necessary entries for rectifying the mistakes, and show the Suspense Account.
(a) Sales Day Book was overcast by ₹ 100.
(b) A sale of ₹ 50 to Shri Ram was wrongly debited to Shri Krishna.
(c) General expenses ₹ 18 was posted ₹ 80.
(d) Cash received from Shri Govind was debited to his account ₹ 150.
(e) While carrying forward the total of one page of the Purchases Book to the next, the amount of
₹ 1,235 was entered as ₹ 1,325.
12. Rectification of Errors: [After Trial Balance] [2nd Important]*******

Ravi Shastri could not agree his Trial Balance. He transferred to Suspense A/c an account of ₹ 296 being
excess of the debit side total. The following errors were subsequently discovered :
(a) Sales Book was overcast by ₹ 300.
(b) Purchase of Furniture for ₹ 615 passed through Purchase Book.
(c) An amount of ₹ 55 received from Jograj Singh was posted to his account as ₹ 550.
(d) Purchase Return Book total on a folio was carried forward as ₹ 221 instead of ₹ 112.
(e) A cash sale of ₹ 1.235 duly entered in the Cash Book but posted to Sales Account as ₹ 235.
(f) Rest of the difference was due to wrong total in the Salaries Account.
Give Journal entries to rectify the above and prepare Suspense Account.
15. Rectification of Errors [After Final A/c] [1st Important] *******

In the books of Harinath Bhandar for the year ended 31.3.19, the following mistakes were committed and
the final accounts were completed with the help of a Suspense Account:
(i) Purchase Day Book was overcast by ₹ 600.
(ii) A credit sales of ₹ 780 was debited to the customer Account as ₹ 870
(iii) Credit purchase of ₹ 825 was debited to Supplier's Account ₹ 850.
(iv) Repairs to building ₹ 500 was charged to Building A/c on which depreciation was charged @5%.
Show necessary Journal Entries and Suspense Account
16. Rectification of Errors: [After Final A/c] [1st Important]*******

The following mistakes were committed in the books of Manish for the year ended 31.3.2019 and the final
accounts were completed with help of ‗Suspense‘ Account:
a. Sales Day Book was under cost by ₹ 2,000.
b. An office table was purchased for ₹ 5,000 but wrongly included in purchases.
c. Salary paid to the manager ₹ 10,000 but debited to his personal account.
d. A credit sale of ₹ 3,500 was debited to the customer‘s account as ₹ 5,300.
Show necessary journal entries and prepare Suspense Account.

Insurance claim [10 Marks]

1. Loss of stock : [4th Important]**********
The godown of Purple Ltd. caught fire on 31st March, 2019. As a result stock of goods in the godown
of the company were gutted. Goods worth ₹ 41,360 could, however, be saved from the accident. The
following particulars are supplied to you:
Stock on 1st January, 2019 60,000
Purchases to the date of fire 2,60,000
Carriage paid on purchases 1,600
Sales to the date of fire 1,80,000
Commission paid to the purchase manager at 2% on purchases. Average gross profit on sales 33 1/3%.
The company had a fire policy of ₹ 1,60,000 covering its stock of goods in the godown. The policy is
subject to average clause.
You are to ascertain (i) total loss of stock, and (ii) the amount of insurance claim to be made.
3. Loss of stock : [1st Important]**************

The stock in the godown of a trader was destroyed by fire on 16th September, 2019. However, the trader
took out a fire policy against its stock for ₹ 40,000. The following data were available from the books of
the trader for the period from 1st January to 16th September, 2019:
Opening Stock 25,000
Purchases 90,000
Purchase Return 5,000
Sales 1,68,000
Carriage Inward 15,000
Sales Return 10,000
Freight & Insurance 16,000
Expenses for extinguishing fire 2,000
It was also found that goods valuing ₹ 15,000 were purchased and took delivery before 16th September,
2019 but no entry was passed in the books. Again, a Sale of ₹ 8,000 to a customer was made and duly
entered in the books but not yet delivered till the date of fire. The rate of G.P. on cost followed in fixing up
selling price is 25 %. Amount realised from sale of damaged goods was ₹ 8,000.
You are required to draw a statement showing the amount of claim to be lodged with the Insurance
Company.
6. Loss of Stock : [2nd Important]**********

The godown of X Ltd caught fire on 31.03.19. As a result part of the stock was destroyed. Goods worth ₹
30,000 could, however, be saved from the accident.
The following particulars are supplied to you:
₹
Stock of goods at 10% lower than the cost as on 01.01.19 1,08,000
Purchases less returns to the date of fire 2,30,000
Sales less returns to the date of fire 3,00,000
1
Average rate of Gross Profit on sales 333%
Sales up to 31.03.19 included ₹ 30,000 for which goods had not been dispatched. Purchased up to 31.03.19
did not include ₹ 20,000 for which invoice had not been received from the suppliers, though goods have
been received at the godown.
The company had fire policy of ₹ 1,50,000 covering its stock of goods in the godown. The policy is
subject to Average Clause. Ascertain the amount of insurance claim to be made.
7. Loss of stock : [3d Important]**********
A fire was occurred in the store of M/s. Bhagwati Traders on 11th October, 2019. From the following
particulars compute the amount of claim to be submitted against the related insurance company for loss of
stock :
₹
Stock as on 1st April, 2018 74,800
Stock as on 31st March, 2019 66,000
Purchases for the year ended on 31st March, 2019 2,44,000
Purchases for the period 1.4.2019 to the date of fire 1,56,000
Sales for the year ended on 31st March, 2019 3,60.000
Sales for the period 1.4.2019 to the date fire 2,00,000
The concern valued its stock regularly at 10% above the cost price. Value of stock could be saved from the
heart of fire ₹ 15,000.
[Value of stock ₹ 76,000; Amount of claim ₹ 61,000; Rate of G.P. 30 % on Sales]
12. Loss of stock : [3rd Important]**********

A fire occurred in the godown of P Ltd. 20the March,2019 destroying the entire stock. The books and
records were salvaged from which the following particulars were ascertained:
Particulars ₹
Sales for the year 2018 6,20,100
Sales for the period from 1.1.19 to 20.3.19 1,82,000
Purchases for the year 2018 4,96,600
Purchases for the period from 1.1.19 to 20.3.19 75,600
Stock on 1.1.18 1,98,640
Stock on 31.12.18 2,33,090
The company has been following the practice of valuing the stock of goods at actual cost plus 10%.
Included in the stock on 1.1.18 were some damaged goods which originally cost ₹1,250 but were valued at
₹640. These goods were sold during the year 2018 for ₹500. Subject to this, the rate of gross profit and the
valuation of stock were uniform.
Ascertain the value of stock destroyed.
[Ans: GP: 25%; Stock Destroyed: 1,51,000]
15. Loss of profit [1st Important]**********

From the following particulars, compute a consequential loss claim :
(i) Date of fire: 30th June, 2019
(ii) Indemnity period — 6 months.
(iii) Sum assured — ₹ 40,000.
(iv) Turnover for the year ended June, 30 2019 ₹ 2,00,000
(v) Net profit for the accounting year ending on March 31, 2019 — ₹ 12,500.
(vi) Standing charges — ₹ 28,500
(vii) Turnover for the year ending March, 31 2019 ₹ 1,98,000
(viii) Turnover for the indemnity period from 01.07.2019 to 31.12.2019 — ₹ 56,000
(ix) Turnover for the period 01.07.2018 to 31.12.2018 ₹ 1,10,000
(x) It was agreed that the business trends would lead to an increase of 10% in the turnover.
[Loss of sale ₹ 65,000; Rate of G.P = 20.71 %; Gross claim ₹ 13,462, Net claim ₹ 11,818]

Consignment [10 Marks]

2. Consignment: [Cost Price] [2nd Important]
Arup consigned 2,000 kg of fine Basmati Rice @ ₹ 10 per kg to Sintu. He paid freight ₹ 3,000, dock charges ₹
2,500 and insurance ₹ 1,500. 800 kg Rice was destroyed in transit due to an accident. Claim admitted by the
Insurance Company was ₹ 4,500. Sintu sold in cash and on credit 1,000 kg Rice @ ₹ 15 per kg. He incurred the
following expenses : Clearing charges - ₹ 2,000; Carrying charges - ₹ 1,000; Godown rent - ₹ 1,200 and
selling expenses - ₹ 1,500. Sintu received commission @ 10% on sales. ₹ 2,000 could not be realised from a
debtor. Show the Consignment Account and determine profit or loss from consignment.
[Loss on consignment ₹ 7,200. Value of Goods destroyed ₹ 10,800 and amount charged to profit & loss
A/c ₹ 6,300 ; Value of unsold stock ₹ 3,200.]
10. Consignment: [Cost Price] [Normal Loss] [3rd Important]******

Prepare Consignment Account in the books of M/S Ramkrishna Concern as on 31st December, 2019 from the
following particulars given below:
On 1.1.2019, M/S Ramkrishna Concern of Kolkata consigned 20,000 kg of a particular variety of goods to M/S
Vasudha of Delhi at a cost of Rs. 120 per kg and paid Rs. 1, 20,000 on insurance and freight. 400 kg of the item
was lost – in – transit. M/S Vasudha took delivery of the remaining goods consigned and paid unloading charges
of Rs. 38,000. Printing and Advertisement expenses were Rs. 40,000 and godown rent Rs. 5,000. 450 kg was
lost due to leakage in the godown of M/S Vasudha. (Which was considered as normal loss). 16,600 kg of the
goods consigned was sold by M/S Vasudha @ Rs. 150 per kg. Commission @ 10% on sales is payable to M/S
Vasudha.
[Value of unsold Stock ₹ 3,33,910; Loss in Transit: 50,400; Net Profit ₹ 22,310]
14.Consignment: [Invoice Price] [4th Important]****

On 1st January, 2019 Lila & Co. of Kolkata consigned 100 cases of milk powder to Shila & Co. of Dhakha. The
goods were charged at a pro-forma invoice value of ₹ 10,000 including a profit of 25 % on invoice price. On the
same date the consignors paid ₹ 600 for freight and insurance. On 15th January, the consignees paid import
duty ₹ 1,000; dock dues ₹ 200 and sent to the consignor a bank draft for ₹ 4,000 as advance. By 31st December
they sold 80 cases for ₹ 10,500 and sent remittances for the balance due to the consignors after deducting
commission @ 5% on gross sale proceeds.
Show Ledger Accounts in the consignor‘s books.
[Profit on Consignment ₹ 2,535. Remittances by Sinha & Co. ₹ 4,775. Value of unsold stock ₹ 2,360]
15. Consignment: [Invoice Price] [1st Important]******

Sun of Siliguri consigned goods costing ₹ 90,000 to Moon of Mumbai. The invoice price was made so as
1
to show a profit of 33 % on cost. Sun paid ₹ 600 as carriage and ₹ 2,400 as Freight and Insurance. Goods
3
costing ₹ 10,000 were destroyed while in transit and the insurance company admitted the full claim.
In Mumbai, Moon paid ₹ 480 as carriage and ₹ 1,200 as godown rent. Two-third of the goods received by
Moon was sold by her at invoice price. Moon sent a cheque to Sun for the sale proceeds after deducting the
expenses incurred by her and the commission due to her-ordinary @ 5% and del-credere @ 2.5%.
Show the Consignment Account and Moon‘s Account in Sun‘s Ledger.
[Value of unsold Stock ₹ 36605; Loss in Transit: 13,666, Profit 9146, Final Remittance ₹ 64,097]

Sale on Approval [5 Marks]

2. Sale or return [2nd Important]****
On 1st November, 2019, M/s RK Traders sent goods valuing Rs 1,50,000 at invoice price to the customers
on sale or return basis. On 10th December, goods worth Rs 40,000 were returned by the customers On
23rd December, intimation was received that goods worth Rs 80,000 has been accepted by the customers
but at a reduced price of 5% which was agreed by the Trade₹ The customers could not yet decide anything
about the rest of the goods. Show the journal entries in the books of M/s RK Traders at the end of financial
year 31st December, 2019. Goods are invoiced to the customers at 25% above cost.
3. Sale or return [B.com 2011] [1st Important]*************

A trader sends out goods on approval to some customers and includes the same in the Sales account. On
31st December, 2019. the Sundry debtors balance (₹ 2,00,000) includes ₹ 14,000 regarding goods sent
on approval against, which no intimation was received as on 31st December, 2019. These goods were
sent out at 25 % above cost price and were sent to A ₹ 8,000 and B ₹ 6,000. Stock-in-trade in godown
was valued at ₹ 46,800 on 3 1st December, 2019. A sent intimation of acceptance on 31st January, 2011
and B returned the goods on 15th January, 2020. Pass adjustment entries on 31.12.2019. Show also the
entries during Jan 2020.
New Question: Sale or return [B.com 2017 Honours] [3rd Important]****

M/s Bose Brothers, a trader sends goods to his customers on ‗Sale of Return‘ basis. The following
transactions took place during 2017:
Rs.
25.9.2017 Sent goods to customers on sale or return basis at cost plus 30% 1,50,000
23.10.2017 Goods returned by customers 40,000
18.11.2017 Received letters of approval from customers confirming purchase
of goods 71,000
31.12.2017 Goods with customers awaiting approval (date of return has not yet 39,000
expired)
M/s Bose Brothers records sale or return transactions as ordinary sales.
You are required to pass necessary journal entries in the books of M/s Bose Brothers assuming that
accounting year closes on 31st December, 2017.
New Question: Sale or return [B.com 2018 Honours] [4th Important]****

On March 01, 2018 Mr. Basu sent goods valuing Rs. 1,50,000 at an invoice price (Cost plus 25%) to few
customers on sale or return basis having two months approval period. He records sale or return
transactions as ordinary sales transaction.
During March, goods having Invoice Price of Rs. 40,000 were returned by a customer and another
customer was willing to accept the goods at a price of Rs. 76,000 which was lower than the Invoice Price
by 5%. It was accepted by Mr. Basu. The other customers could not yet decide anything about the goods
sent.
Show the relevant extracts in the final accounts on 31.3.2018, if the balances of the sales Account and Sales
Ledger as on such date were Rs. 15,00,000 and Rs. 7,35,000 respectively.

Self Balancing [5 or 10 Marks]

[May be in option]
2. Self Balancing: [2nd Important]**********
From the following particulars for the year ended 31st March, 2019 extracted from the books of X Ltd.
prepare Sales Ledger Adjustment Account in the General Ledger:
₹
Sales Ledger Balances 1st April, 2018 (Dr.) 12,500
(Cr.) 300
Sales during the year (including cash sales of ₹ 2,000) 60,400
Cash received from customer 40,100
Return by customer 5,750
Discount Allowed 2,600
Bad debt written off 5,680
Bad debt previously written off recovered in cash during this year 900
Provision for Bad debts 5,950
Allowance to customers 740
Bills Receivable from customers 3,400
Bills Dishonoured 700
Transfer from sales ledger to purchase ledger 2,500
Payment to clear Credit Balance on sales ledger Accounts 100
Closing Credit Balance 1,440
[Ans: Closing Debit Balance: ₹ 12070]
5. Self Balancing: [1st Important]**********

The following details were extracted from the books of Traders Ltd., for the year ended 30.6.19:
July 1, 2018 ₹
Sales Ledger balance 62,710
Total Provision for doubtful debts 1,720
June 30, 2019
Sales 1,08,290
Returns from customers 4,710
Cheques received from customers 88,625
Cheques dishonoured 220
Bills accepted by customers 14,430
Bills dishonoured 540
Bad debts written off 1,610
Interest on customers overdue account 330
Carriage charged to customers 1,220
Cash discount allowed 2,460
Bad debts previously written off now recovered 850
Transfer from Bought ledger 780
Show the General Ledger Adjustment Account as it will appear in the Sales Ledger.
[Closing Balance of G. L. Adj. A/c in Sales Ledger ₹ 60,695 (Cr.)]
9. Self Balancing: [2nd Important]**********
From the following particulars which have been extracted from the books of Mr. ‗D‘, for the year
ended 31.03.19, prepare the ‗Nominal Ledger Adjustment‘ Account in the ‗Bought Ledger‘.
₹ ₹
Creditors Ledger balances on Acceptances renewed 2,000
01.04.18 (Dr.) 1,800 Interest on renewal of bills 500
(Cr.) 14,000 Sundry charges for dishonoured bills
Purchases (Including cash payable 100
purchases ₹ 2,000) 36,500 Bills receivable endorsed to
Cash paid to creditors 21,000 Creditors 4,500
Discount received 400 Bills receivable as endorsed
Return outward 1,500 dishonoured 1,000
Bills payable accepted Transfer from:
(including renewed bills and Debtors Ledger to Creditors Ledger 500
interest thereon) 14,000 Creditors Ledger to Debtors Ledger 700
Acceptances matured 5,000 Creditors Ledger balance on
Acceptances dishonoured 3,000 31.03.19 (Dr.) 1,200
[Ans; ₹ 11,900 (Credit)]
10. Self Balancing: [1st Important]**********

From the following particulars, prepare the relevant Debtors Ledger Adjustment A/c in General Ledger and
General ledger adjustment in Debtors Ledger.
₹
Debtors' Ledger Balance on 1.1.2019 (Dr.) 16,000
Debtors' Ledger Balance on 1.1.2019 (Cr.) 2,000
Transaction during the year
Sales (Including Cash Sales — ₹ 8,000) 80,000
Collection from Debtors 62,000
Discount Allowed 300
Returns Inward 2,500
Bills Receivable drawn 10,000
Bills Receivable dishonoured 2,500
Bills Receivable Discounted 4,000
Bills Receivable endorsed 4,500
Bills Receivable as endorsed dishonoured 1,000
Bad Debts 400
Provision for Doubtful Debts 1,500
Transfer from Debtors' Ledger to Creditors' Ledger 500
Transfer from Creditors' Ledger to Debtors' Ledger 700
Debtors' Ledger Balance on 31.12.2019 (Cr.) 1,300

Single Entry [10 Marks]

4. Single Entry: [3rd Important]***********
Sri Bose kept his books under Single Entry System. From the following particulars obtained from his
books, you are required to calculate: (a) Total Sales during the year 2018-19, and (b)Total Purchases during
the year 2018-19.
Balances as on 1.4.2018 : ₹
Debtors 56,250
Creditors 43,525
Bills Receivable 30,200
Bills Payable 15,275
Transactions during the year 2018-19 :
Cash Sales 10,280
Cash Purchases 18,530
Cash paid to Creditors 26,500
(Including ₹ 2,000 for purchase of office furniture)
Cash received from Debtors 31,960
Discount earned from suppliers 2,325
Bad Debt written off 3,200
Return Inward 2,650
Discount allowed to customers 3,150
Return Outward 2,000
Payment made against B/P 16,000
Cash received against B/R 28,300
Balances as on 31.03.2019 :
Debtors 52,450
Creditors 39,000
Bills Payable 27,900
7. Single Entry [2nd Important]***********

The following balances were extracted from the books of Mr. Y for the year ended 31-19-19:
1.1.19 31.19.19
₹ ₹
Stock 30,000 ?
Debtors 80,000 1,20,000
Creditors 40,000 80,000
i. During the year, he paid to creditors ₹ 1, 20,000 and received ₹ 1, 80,000 from Debtors
ii. Bad debts written off ₹ 10,000
iii. Discount received from creditors ₹ 2,000.
iv. Cash sales are 20% of total sales.
v. Credit purchases are 75% of total purchases.
vi. Rate of Gross Profit – 20% on Sales.
Calculate: (a) Total Sales (b) Total Purchases and (c) Value of stock on 31-19-19
[(a) ₹ 287500; (b) ₹ 2,16,000 (c) ₹ 16,000]

5. Single Entry: [1st Important]***********
Ratan Sarkar does not maintain proper books of account. From the following information, prepare Trading
and Profit and Loss Account for the year ended 31st December, 2019 and a balance sheet as on that date:
Assets and Liabilities On 31.12.2018 On 31.12.2019
₹ ₹
Debtors 10,000 14,500
Stock s 5,500 7,800
Furniture 1,000 1,250
Creditors 4,000 3,500
Analyses of the other transactions are:
₹
Cash collected from Debtors 32,500
Cash paid to Creditors 25,000
Salaries 9,000
Rent 900
Office expenses 1,200
Drawings 2,000
Fresh capital introduced 4,000
Cash Sales 1,500
Cash Purchases 3,000
Discount received 400
Discount allowed 250
Return inward 1,000
Return outward 500
Bad debts 250
He had ₹ 4,000 cash at the beginning of the year. Provide depreciation of furniture @ 10% p.a. Additional
of furniture was made on 31st December, 2019.
9. Single Entry: [2nd Important]***********

A. R. Sharma does not maintain regular books of accounts. From his incomplete records, the following
information could be available for the year ended 31.12.2019:
(i) Cash Sales ₹ 38,400
(ii) Total cash collection from Debtors ₹ 60,000
(iii) A summary of the Bank Account for the year ended 31.12.2019:
To Deposits (cash) 95,820 By Balance (Overdraft on 1.1.2019) 9,600
By General expenses 19,190
By Interest & Bank charges 180
By salaries 20,400
By Drawings 4,800
By Creditors 36,000
By Balance on 31.12.2019 5,820
95,820 95,820
Other Balances as on 1.1.2019 were as follows: Stock ₹ 21,600; Debtors ₹ 52,800; Furniture ₹ 2,400;
Building ₹ 36,000; Creditors ₹ 19,200; Cash in hand ₹ 200.
(iv) He purchased an old Motor Cycle at ₹ 2,400 on 1.10.2019.
(v) Besides the cash balance as above, other balances on 31.12.2019 were; Creditors ₹ 13,200; Stock ₹
24,480 and Debtors ₹ 72,000.
Prepare a Trading and Profit and Loss Account for the year ended 31.12.2019 and the Balance Sheet on
that date after charging depreciation @ 10% p.a. on Buildings, Furniture and Motor cycle.

10. Single Entry: [3rd Important]***********
Mr. P.K. Banerjee kept no books of accounts for his business. An analysis of his rough cash books for the
calendar year 2019 shows the following particulars:
Receipts ₹ Payments ₹
Received from Debtors 80,000 Overdraft on 01.01.19 5,000
Further capital introduced 10,000 Paid to Creditors 42,000
Business expenses 12,000
Wages paid 17,500
Proprietor‘s drawings 5,000
Balance at Bank on 31.12.19 6,500
Cash in hand on 31.12.19 2,000
90,000 90,000
The following particulars are also available:
31.12.18 31.12.19
₹ ₹
Debtors 60,000 90,000
Creditors 20,000 22,500
Stock in trade 16,000 18,000
Plant and Machinery 30,000 30,000
Furniture 2,000 2,000
All his sales and purchases were on credit. From the above particulars, prepare Trading Profit and Loss
Account for the year ended 31st December, 2019 a Balance Sheet as at that date. Provide depreciation on
Plant and Machinery @ 10% p.a. and on Furniture @ 5% p.a.
[Gross Profit ₹ 50,000; Net profit ₹ 34,900; Balance Sheet ₹ 1,45,400. Opening Capital (1.4.03) ₹
83,000]
12. Single Entry: [4th Important]*****

Imtiaz commenced business on 1st January, 2019, with a capital of ₹ 45,000. He immediately
purchased furniture for ₹ 24,000. During the year he received from his uncle a gift of ₹ 3,000 and he
borrowed from his father a sum of ₹ 5,000. He had withdrawn ₹ 600 per month for his household
expenses.
He had no bank account and all dealings were in cash. He did not maintain double entry books but the
following information is obtained from his records:
₹
Sales (including cash sales ₹ 30,000) 1,00,000
Purchases (including cash purchases ₹ 10,000) 75,000
Carriage inwards 700
Wages 300
Discount allowed to debtors 800
Salaries 6,200
Bad debts written off 1,500
Trade expenses 1,200
Advertisements 2,200
He used goods worth ₹ 1,300 for personal purposes and paid ₹ 500 to his son for examination and
college fees. On 31st December, 2019, his debtors were worth ₹ 21,000 and creditors ₹ 15,000. Stock -
in-trade was valued at ₹ 10,000. Furniture is to be depreciated by 10% p.a.
Prepare a trading and P/L a/c and a balance sheet
[Cash paid to Creditors ₹ 50,000; Cash Received from debtors ₹ 46,700; Closing cash balance ₹
27,400; Gross profit ₹ 35,300; Net profit ₹ 21,000; Balance Sheet total ₹ 80,000]

Non-trading [10 Marks]

[In option of Single Entry]
2. Non-trading [1st Important]**********
From the following particulars relating to RK Charitable Hospital, prepare Income and Expenditure
Account & for the year ended 31st December 2019 & Balance sheet as on 31/12/2019.
To Balance b/d 7,000 By Payments for Medicines 30,000
To Subscriptions 50,000 By Doctor's honorarium 10,000
To Donations 14,500 By Salaries 27,500
To Interest on Investments By Petty Expenses 500
(@ 7% for full one year) 7,000 By Equipment 15,000
To Proceeds from Charity Show 10,000 By Expenses on Charity Show 1,000
By Balance c/d 4,500
88,500 88,500
Additional Information: - 1.1.19 (in ₹ ) 31.12.19 (in ₹ )
Subscription Due 500 1,000
Subscription received in Advance 1,000 500
Stock of Medicine 10,000 15,000
Amount due to Medicine supplier 8,000 12,000
Value of Equipment 21,000 30,000
Value of buildings 40,000 38,000
4. Non-trading [2nd Important]**********

Prantik Boys Club prepared the following Receipts and Payments Account for the year ended 31 st
December, 2019 :
To Balance b/d 7,600 By Sports Equipment 30,000
To Subscription (Purchased on 1.10.2019)
2018 2,000 By Postage & Stationary 700
2019 37,000 By Salaries & Wages 5,000
2020 3,000 By Upkeep of Ground 1,000
To Admission fees 4,000 By Electric Charges 2,300
To Locker Rent 1,000 By Tournament Expenses 8,000
To Interest on Govt. Securities 1,200 By Balance c/d 8,800
55,800 55,800
The Fixed Assets of the club on 1st January, 2019, included the following : Sports Equipment ₹ 40,000;
Furniture ₹ 6,000, 10% Govt. Securities ₹ 16,000, and Club Ground ₹ 25,000.
Prepare Income and Expenditure Account of Prantik Boys' Club for the year ended 31st December, 2019
and a Balance Sheet as at that date after taking into account the following information :
(a) Subscriptions for 2019 collected in 2008 ₹ 1,500.
(b) Subscriptions for 2019 outstanding ₹ 1,000.
(c) Depreciation to be provided at 15% p.a. on Sports Equipment and at 7 1/2% p.a. on Furniture.

6. Non-trading [4th Important]**********
Following is the Receipts and Payments account of a library for the year ending 31st December, 2019:
To Balance 9,000 By Salary and Wages 13,600
To Admission fees 11,000 By Rent 16,500
To Subscription from members 39,000 By Investments 7,000
To Lecture Hall Hire Charges 5,000 By Postage & Stationery 2,500
To Miscellaneous Receipts 700 By Electric Charges 1,460
To Interest on Investments 1,200 By Books 12,000
By Outstanding Expenses 1,400
By Balance 11,440
65,900 65,900
You are required to prepare an Income and Expenditure account for the year 2019 and a Balance Sheet as
at 31.12.19. The following further information is also made available to you:
(a) On 31.12.18 the library had the following assets also:
Furniture ₹ 11,000; Books ₹ 90,000 and Investments ₹ 40,000.
(b) Subscriptions realised in advance this year amounted to ₹ 1,200 and outstanding liabilities on
31.12.19 are for salary and wages ₹ 2,400 and for rent ₹ 1,500.
(c) 60 % of the admission fees should be capitalised.
(d) Furniture and library books are to be depreciated at 6 % and 10 % p.a. respectively.
[Surplus ₹ 880; Opening Capital ₹ 1,48,600; Closing Balance sheet ₹ 1,61,180]
10. Non-trading [3rd Important]**********

Following is the Receipts and Payments Account of Viveknagar Social Club for the year ended 31st
December, 2019:
Receipts Rs. Payments Rs.
Balance as on 1.1.2019 3,560 Salaries 2,450
Subscriptions : Electricity 410
2018 180 Charity 1,680
2019 6,940 General expenses 320
2020 240 Rent and Taxes 450
Donations 2,500 Expenses of annual function 2,300
Sale of Tickets of annual function 2,800 Newspaper etc. 460
Sale of Waste Paper 130 Investments 5,000
Balance as on 31.12.2019 3,280
16,350 16,350
Additional Information:
a) Salaries outstanding for the year 2019 are Rs. 150.
b) Rent and Taxes include Rs. 75 for the year 2018.
c) Value of Building Rs. 12,000 as on 1.1.2019 and depreciation @ 5% to be provided.
d) Interest on investment is due for 3 months @ 10% p.a.
e) The club has 360 members and subscription is Rs. 20 per annum.
Prepare an Income & Expenditure a/c for the year ended 31st Dec, 2019 and a Balance Sheet as on that
date. [Surplus ₹ 4,010; Opening Capital ₹ 15,665; Closing Balance sheet ₹ 20,065]

Final Account [15 Marks]

2. Final Account: [1st Important]*****************
Prepare Trading Account and Profit and Loss Account for the year ended 31.12.2019 Mr. S and a Balance
Sheet as at that date from the Trial Balance given below after giving effect to the under mentioned
adjustments:
Trial Balance as at 31.12.2019
Debit ₹ Credit ₹
Drawings 3,250 Capital 15,000
Stock (1.1.19) 17,445 Returns Outwards 840
Return Inward 554 Interest on Loan 25
Carriage Inward 1,240 Rent outstanding 130
Deposit with Das Gupta 1,375 Creditors 3,000
Carriage Outward 725 Prov. For Doubtful debts 1,200
Loan to Chatterjee @ 5% p.a. 1,000 Sales 27,914
Rent 820
Purchases 12,970
Debtors 4,000
Advertisement Exp. 954
Bad debts 400
Patents and Pattern 500
Discount allowed 330
Wages 754
Cash 62
Goodwill 1,730
48,109 48,109
Adjustments:
(a) Closing Stock ₹ 18,792
(b) The manager of Mr. S is entitled to a commission of 10% of net profit calculated after charging such
commission.
(c) Increase Bad Debts by ₹ 600. Provision for Doubtful Debts is to be maintained at 10% and Provision for
Discount at 5% on Sundry Debtors.
(d) Stock valued at ₹ 1,500 was destroyed by fire on 25.12.19, but the insurance company admitted a claim
of ₹ 950 only and paid in 7th January, 2020.
(e) ₹ 200 out of Advertisement Expenses are to be carried forward to the next year.
[Ans. Gross Profit ₹ 16,083; Net Profit ₹ 11,510; Manager’s Commission ₹ 1,151; Total of Balance
Sheet ₹ 27,541]
3. Final Account: [2nd Important]*****

From the following balances extracted from the books of a trader on December 31, 2019, prepare a Trading
and Profit and Loss Account for the year ended on that date and also a Balance Sheet as on same date:
Debit Balance ₹ Credit Balance ₹
Drawings Account 7,100 Capital Account 42,500
Plant and Machinery 9,500 Sales 1,19,060
Stock on 01. 01.2019 14,600 Purchase Return 2,910

Purchases 1,03,620 Bank Overdraft 1,200
Sales Return 2,100 Creditors 10,000
General Expenses 2,000 Provision for Doubtful Debts 1,050
Wages 2,400
Rent and Rates 3,200
Bad Debts 1,720
Debtors 30,000
Cash in hand 480
1,76,720 1,76,720
Adjustments:
(a) Provide 10% depreciation on Plant and Machinery.
(b) Provision for Doubtful Debts is to be increased to 5% of Debtors.
(c) Plant and Machinery worth ₹ 1,000 purchased during the year (on September 30, 2019) has been
included in Purchases.
(d) Stock on 31.12.2019 has been valued at ₹ 17,300. This does not include the value of the Plant and
Machinery bought on 30.09.2019.
(e) Wages includes ₹ 200 for installation of Plant.
(f) On 31.12.2019, Rent outstanding was ₹ 400 and Rent paid in advance was ₹ 800;
[Gross profit ₹ 17,750; Net profit ₹ 9,800; Balance Sheet total ₹ 56,800]
4. Final Account: [3rd Important] [New]**

Mr. S. N. Roy started a business on 01.04.2018 with Rs, 10,000 cash, ₹ 5,000 in goods and ₹ 15,000 in
furniture. His Trial Balance as on 31.03.2019 was as follows:
Debit Balances:
Bad Debt ₹ 3,500: Stock-in-Trade ₹ 5,000 ; Furniture ₹ 15,000; Drawings ₹ 3,500; Wages ₹ 1,800;
Purchases ₹ 18,000; Advertisement ₹ 1,600; Debtors ₹ 9,000; Cash ₹ 4,700; Salaries ₹ 2,400; Interest on
Loan Rs, 200; Commission paid ₹ 800: Insurance Premium ₹ 800; Machinery ₹ 30,000.
Credit Balances:
Capital ₹ 30,000; Creditors ₹ 5,000; Bank Loan ₹ 32,400; Commission Received ₹ 200; Sales ₹ 28,700.
Additional Information:
(a) Mr. Roy used goods of ₹ 1,000 for personal consumption. The value of remaining stock ₹ 9,000.
(b) Goods valued at ₹ 5,000 were lost by fire for which insurance claim of ₹ 2,000 was to be received.
(c) Depreciate Furniture @5% p.a. and Machinery @ 10% p.a. The Machinery was purchased on
01.10.18.
(d) Interest on Bank Loan was payable @10 % p.a. The loan was taken at the beginning of the year.
(e) A further Bad Debt of ₹ 1,000 to be written off and a provision for doubtful debt is to be provided
@5%.
(f) 1/4th of the Advertisement Expenses is to be carried forward.
(g) Included in Debtors is ₹ 3,000 due from Mr. P, included in creditors ₹ 1,000 due to the same person.
Prepare Trading Account, Profit and Loss Account for the year ended 31.03.19 and a Balance sheet of Mr.
S. N. Roy as on that date.
[Gross profit ₹ 18,900; Net profit ₹ 560; Balance Sheet total ₹ 65,500]

New Question 1: MTP 1: Final Accounts [1st Important]*******

Following is the Trial Balance of Shri Saha on 31st December 2019:
Trial Balance
Debit Balance ₹ Credit Balance ₹
Opening Stock 45,840 Sales 2,99,000
Purchases (adjusted) 85,250 Capital 60,000
Wages 25,400 Bills Payable 31,000
Returns inward 8,560 Return Outwards 4,200
Carriage Inwards 4,340 Provision for doubtful debts 1,250
Salaries 10,620 Commission 14,550
Rent and Taxes 4,470 12% bank Loan 20,000
Freight and Duty 3,850
Income tax 3,500
Bad Debts 3,600
Machinery (including ₹ 17,600
for new machine) 37,600
Furniture 15,000
Advertisement 10,150
Closing Stock 65,000
Insurance Premium 2,500
Sundry Debtors 45,000
Interest on loan 2,000
Drawings 10,800
Cash in hand 5,020
Cash at Bank 23,500
4,30,000 4,30,000
st
Prepare a Trading and Profit and Loss Account for the year ended 31 December 2019 and a Balance Sheet
as on that date after taking into account the following information:
(a) Goods withdrawn by the proprietor for private use but not accounted for ₹ 1,500.
(b) Wages include ₹ 2,400 paid for installation of the new machine on 1st July, 2019.
(c) Carry forward the unexpired insurance premium ₹ 500.
(d) Write off further bad debts ₹ 5,000 and maintain provision for doubtful debts @ 5% on debtors.
(e) Charge 10% p.a. as depreciation on machinery and furniture.

New Question 2: MTP 2: Final Account [ 2nd Important]****

From the following Trial Balances of Mr. Riku prepare a Trading Account, Profit Account for the
year ended 31st March, 2019 and a Balance Sheet as on that date :
Debit ₹ Credit ₹
Opening Stock 36,000 Sundry Creditors 16,000
Sundry Debtors 28,000 Capital 80,000
Bills Receivable 16,000 Provision for Doubtful Debts 850
Carriage on Purchases 1,200 Miscellaneous Income 560
Wages 13,500 Commission (credit) 2,500
Salaries 9,900 Bills Payable 6,500
Telephone Expenses 900 Sales 1,59,050
Repairs 450
Sundry Expenses 900
Advertisement 5,000
Purchases 77,000
Plant 50,000
Furniture 9,600
Cash in hand and at Bank 17,010
2,65,460 2,65,460
Prepare the Trading and Profit and Loss Account and Balance Sheet of the shop after taking into
consideration the following :
(i) Closing Stock [Cost ₹ 60,000, Market price ₹ 70,000].
(ii) Unpaid expenses: Salaries ₹ 1,600; Wages ₹ 2,100; Rent ₹ 4,200.
(iii) Write off 10% on Plant and 5% on Furniture as depreciation.
(iv) Write off ₹ 500 on debtors as bad debts and Create. Provision for Doubtful debts @ 5% on
sundry Debtors
(v) Bills Receivable include a dishonoured bill for ₹ 600.
(vi) Cost of goods taken over by the proprietor for his private purpose is ₹ 3,000.
(vii) 3/4th of the advertisement expenses is to be carried forward.
(viii) Goods valued ₹ 8,000 were destroyed by fire and the Insurance Company admitted a claim
of ₹ 7,500.

Introduction: [5 Marks]
[Theory may be in option]
1. Introduction [B.com 2011] [4th Important]***********
Using accounting equation, calculate total assets if ——
(i) Capital Rs 5,00,000 ;
(ii) Creditors ₹ 3,00,000 ;
(iii) Revenue during the period ₹ 5,20,000;
(iv) Expenses during the period ₹ 3,80,000.
Question 3 & 7. Introduction [B.com 2011] [1st Important]***********

Mention the names of accounting concept or convention being followed in the following instances :
(a) Provision for depreciation is created:
(b) Unsold stock is valued at lower of cost or net realisable value.
(c) A business will continue its operation for an indefinite period and will not be dissolved in the
near future.
(d) A business is considered as an artificial person different from the owner.
(e) Profit is being determined by comparing the sales of an accounting period with the
corresponding cost of goods sold.
Question 2 & 4. Introduction [3rd Important]*****

From the following information, ascertain Subscription Income for the year ended 31.12.19 according to
(a)Accrual basis & (b) Cash Basis of accounting:-
₹
Subscription received in cash for the year ended 31. 12. 19 1,00,000
Accrued subscription as on 31. 12. 18 10,000
Subscription received in Advance during 2019 for 2020 30,000
Accrued Subscription as on 31.12.2019 14,000
9. Introduction [B.com 2013 Pass] [2nd Important]******

From the following information, ascertain income for the year ended 31.03.19, according to accrual basis
of accounting:
i. Income received in cash for the year ended 31.03.19 ₹ 1, 00,000
ii. Accrued Income as on 31.03.19 ₹ 35,000
iii. Income received in advance during the year ended 31.03.19 ₹ 10,000
iv. Outstanding expenses as on 31.03.19 ₹ 30,000
v. Prepaid expenses as on 31.03.18 ₹ 5,000
10. Introduction [B.com 2014 Honours] [2nd Important]*****

From the following information ascertain income for the year ended 31.03.2019 according to the cash
basis of accounting:
₹
(a) Income received in cash for the year ended 31.03.19 1,40,000
(b) Accrued income as on 31.03.19 2,500
(c) Income received in advance during the year ended 31.03.19 15,000
(d) Outstanding expenses as on 31.03.19 3,500
(e) Prepaid expenses as on 31.03.19 5,000
Introduction: Theory
7. Accounting Cycle [1st important]***********
An accounting cycle is the collective process of identifying, analyzing, and recording the accounting events
of a company. The series of steps begins when a transaction occurs and end with its inclusion in the
financial statements. Additional accounting records used during the accounting cycle include the general
ledger and trial balance.
Steps in the accounting cycle
#1 Transactions
Transactions: Financial transactions start the process. If there are no financial transactions, there would be
nothing to keep track of. Transactions may include a debt payoff, any purchases or acquisition of assets,
sales revenue, or any expenses incurred.
#2 Journal Entries
Journal Entries: With the transactions set in place, the next step is to record these entries in the company‘s
journal in chronological order. In debiting one or more accounts and crediting one or more accounts, the
debits and credits must always balance.
#3 Posting to the General Ledger (GL)
Posting to the GL: The journal entries are then posted to the general ledger where a summary of all
transactions to individual accounts can be seen.
#4 Trial Balance
Trial Balance: At the end of the accounting period (which may be quarterly, monthly, or yearly depending
on the company), a total balance is calculated for the accounts.
#5 Worksheet
Worksheet: When the debits and credits on the trial balance don‘t match, the bookkeeper must look for
errors and make corrective adjustments that are tracked on a worksheet.
#6 Adjusting Entries
Adjusting Entries: At the end of the company‘s accounting period, adjusting entries must be posted to
account for accruals and deferrals.
#7 Financial Statements
Financial Statements: The balance sheet, income statement and cash flow statement can be prepared using
the correct balances.
#8 Closing
Closing: The revenue and expense accounts are closed and zeroed out for the next accounting cycle. This is
because revenue and expense accounts are income statement accounts, which show performance for a
specific period. Balance sheet accounts are not closed because they show the company‘s financial position
at a certain point in time.

9. Accrual basis [2nd Important]**********

Accrual basis is a method of recording accounting transactions for revenue when earned
and expenses when incurred.
Under the accrual basis of accounting (or accrual method of accounting), revenues are reported on the
income statement when they are earned. When the revenues are earned but cash is not received, the asset
accounts receivable will be recorded. (Under the cash basis of accounting, revenues are not reported on the
income statement until the cash is received.)
Also under the accrual basis of accounting, expenses are reported on the income statement when they
match up with the revenues being reported, or when a cost has no future benefit that can be measured.
When an expense occurs and cash has not yet been paid, a liability account will also be recorded. (The
expenses that were not paid in the current accounting period will be reported through adjusting entries.)
In other words, under the accrual basis of accounting, the receipt of cash and the payment of cash are not
the focus of reporting revenues and expenses. Rather the focus is: 1) what revenues were earned, and 2)
what expenses were incurred. Therefore, the accrual basis of accounting provides a more accurate measure
of a company's profitability during an accounting period, and a more accurate picture of a company's assets
and liabilities at the end of an accounting period.
A key advantage of the accrual basis is that it matches revenues with related expenses, so that the complete
impact of a business transaction can be seen within a single reporting period.
Auditors will only certify financial statements if they have been prepared using the accrual basis of
accounting.

11. Entity Concept: [1st important]********

The business entity concept (also known as separate entity and economic entity concept) states that the
transactions related to a business must be recorded separately from those of its owners and any other
business.
Entity concept, in nature, is just reverse of proprietary concept. In this concept enterprise is viewed as a
distinct unit completely separate from its owners and all the accounting activities are centred around the
enterprise instead of its owners. Even the proprietor who is the supplier of capital is identified as one of the
creditors of the entity (enterprise). So capital is treated as a liability like other liabilities of the business.
12. Money measurement Concept: [3rd important]****

The money measurement concept states that a business should only record an accounting transaction if it
can be expressed in terms of money. This means that the focus of accounting transactions is on quantitative
information, rather than on qualitative information. Thus, a large number of items are never reflected in a
company's accounting records, which means that they never appear in its financial statements. Examples of
items that cannot be recorded as accounting transactions because they cannot be expressed in terms of
money include:
(a) Employee skill level
(b) Employee working conditions
(c) Expected resale value of a patent
(d) Value of an in-house brand
(e) Product durability
(f) The quality of customer support or field service
(g) The efficiency of administrative processes
13. Going concern Concept: [1st important]******

The going concern concept of accounting implies that the business entity will continue its operations in the
future and will not liquidate or be forced to discontinue operations due to any reason. A company is a going
concern if no evidence is available to believe that it will or will have to cease its operations in foreseeable
future.
An example of the application of going concern concept of accounting is the computation of depreciation
on the basis of expected economic life of fixed assets rather than their current market value.
Companies assume that their business will continue for an indefinite period of time and the assets will be
used in the business until fully depreciated. Another example of the going concern assumption is the
prepayment and accrual of expenses. Companies prepay and accrue expenses because they believe that they
will continue operations in future.

Unit 3: Acct Standard & Acct theory [5 + 5]

23. What is Accounting Standards? [1st imp]******
Accounting Standards (i.e. AS 1~32) are issued/ amended by the Accounting Standards Board of ICAI
from time to time, to establish uniform standards for preparation of financial statements, in accordance with
generally accepted accounting practices (GAAP) in India and for better understanding of the users.
These standards are mandatory on the dates specified either in the respective document or by notification
issued by the Council of the ICAI.
Accounting Standards (AS) are basic policy ]documents. Their main aim is to ensure transparency,
reliability, consistency, and comparability of the financial statements. They do so by standardizing
accounting policies and principles of a nation/economy. So the transactions of all companies will be
recorded in a similar manner if they follow these accounting standards.
24. Benefits of Accounting Standards [1st imp]******

Accounting Standards are the ruling authority in the world of accounting. It makes sure that the information
provided to potential investors is not misleading in any way. Let us take a look at the benefits of AS.
[1] Attains Uniformity in Accounting
Accounting Standards provides rules for standard treatment and recording of transactions. They even have
a standard format for financial statements. These are steps in achieving uniformity in accounting methods.
[2] Improves Reliability of Financial Statements
There are many stakeholders of a company and they rely on the financial statements for their information.
Many of these stakeholders base their decisions on the data provided by these financial statements. Then
there are also potential investors who make their investment decisions based on such financial statements.
So it is essential these statements present a true and fair picture of the financial situation of the company.
The Accounting Standards (AS) ensure this. They make sure the statements are reliable and trustworthy.
[3] Prevents Frauds and Accounting Manipulations
Accounting Standards (AS) lay down the accounting principles and methodologies that all entities must
follow. One outcome of this is that the management of an entity cannot manipulate with financial data.
Following these standards is not optional, it is compulsory.
So these standards make it difficult for the management to misrepresent any financial information. It even
makes it harder for them to commit any frauds.
[4] Assists Auditors
Now the accounting standards lay down all the accounting policies, rules, regulations, etc in a written
format. These policies have to be followed. So if an auditor checks that the policies have been correctly
followed he can be assured that the financial statements are true and fair.
[5] Comparability
This is another major objective of accounting standards. Since all entities of the country follow the same set
of standards their financial accounts become comparable to some extent. The users of the financial
statements can analyze and compare the financial performances of various companies before taking any
decisions.
Also, two statements of the same company from different years can be compared. This will show the
growth curve of the company to the users.
[6] Determining Managerial Accountability
The accounting standards help measure the performance of the management of an entity. It can help
measure the management‘s ability to increase profitability, maintain the solvency of the firm, and other
such important financial duties of the management.
Management also must wisely choose their accounting policies. Constant changes in the accounting
policies lead to confusion for the user of these financial statements. Also, the principle of consistency and
comparability are lost.

26. Need for a Global Accounting Standard. [2nd imp]**

International community has long back recognised the need for moving towards harmonisation of the
accounting standard across the globe. Obviously an individual country is always entitled to customize the
existing international accounting Standards according to its specific needs. Among other advantages of
harmonisation of accounting standards, the two benefits which tops the list are
(a) systematic review and evaluation of the performance of the multinational company having
subsidiaries and associates in various countries wherein each country has its own set of GAAP and
(b) It provides a level playing fields where no country is advantaged or disadvantaged because of its
GAAP
The Need for Harmonization
This harmonization is needed due to the globalization of businesses and services and increase in cross-
border investments and borrowings. Some of the benefits of harmonization are as under:
(a) It ensures reliable and high quality financial reporting and disclosures.
(b) In certain cases, it can prove to be crucial to the economic and financial development of a country
(c) It enables a systematic review and evaluation of the performance of a multinational company
having subsidiaries and associates in various countries wherein each country has its own set of
GAAP
(d) It makes the comparison of the performance of a company against its domestic and international
peers easier and more meaningful
(e) It adds to the international credibility of a company
(f) It is a precursor for accessing international capital markets which can, in turn, reduce the capital
cost and consequently, improve the performance of a company
(g) It provides a level playing field where no country is advantaged or disadvantaged by its GAAP.
27. Write a short Note on IFRS [2nd imp]******

What are International Financial Reporting Standards (IFRS)?
International Financial Reporting Standards (IFRS) set common rules so that financial statements can be
consistent, transparent and comparable around the world. IFRS are issued by the International Accounting
Standards Board (IASB). They specify how companies must maintain and report their accounts, defining
types of transactions and other events with financial impact. IFRS were established to create a common
accounting language, so that businesses and their financial statements can be consistent and reliable from
company to company and country to country.
Understanding International Financial Reporting Standards (IFRS)
IFRS are designed to bring consistency to accounting language, practices and statements, and to help
businesses and investors make educated financial analyses and decisions. The IFRS Foundation sets the
standards to ―bring transparency, accountability and efficiency to financial markets around the world,
fostering trust, growth and long-term financial stability in the global economy.‖ Companies benefit from
the IFRS because investors are more likely to put money into a company if the company's business
practices are transparent.

36. “Income is considered to be earned while capital is

maintained intact” Discuss [3rd Important]
OR
Write short notes on: Capital maintenance concepts
What is Capital Maintenance:
Capital maintenance is an accounting concept based on the principle that income is only recognized after a
full recovery of costs has been achieved or capital has been maintained. Capital maintenance has been
reached when the amount of a company's capital at the end of a period is unchanged from that at the
beginning of the period, with any excess amount treated as profit.
So maintenance of capital is closely related to the measurement of income and this is known as the Capital
Maintenance Approach of income. As per this approach before ascertaining the income, capital consumed
in the accounting period must be recovered and kept intact. This is to be done by deducting the capital at
the beginning of the accounting period from the capital at the end of the said period. If the closing capital is
more than the opening capital the capital of the firm is said to be intact. This concept is also known as
Balance Sheet Approach to the income measurement.
J.J. Forker said, "The capital maintenance concept is viewed merely as a neutral benchmark to be used in
determining the surplus which accrues to shareholders as income."
The two basic subsections of capital maintenance are financial capital maintenance and physical capital
maintenance.
There are three concepts of maintenance of capital. They are:
(i) Financial Capital Maintenance:
As per this concept the money value or recorded value of capital i.e. the amount of investment
originally made by the owners is maintained intact. Under this view income is the excess amount of
cash or equivalent received by the firm over the amount invested by owners. Income is determined
by finding out the difference between the money value of the wealth of the firm at the end and at the
beginning of the year. If the difference is positive in favour of closing value it is income or profit, in
the reverse, case it is loss.
(ii) Physical or Operating Capital Maintenance:
In this concept emphasis is put on the maintenance of the productive or operating capacity of the
enterprise. The followers of this concept state that the capital to be recovered is the current or
replacement costs of assets with same productive capacity as the present assets.
(iii) General Purchasing Power Financial Capital maintenance:
In this concept instead of money value of financial capital the general purchasing power of financial
capital is recovered to combat the problems of capital maintenance arising out of price level changes.
For taking into account the changes in value of money monetary financial capital or historical cost of
assets is continuously updated. Under this view income is determined by finding out the difference
between closing capital and capital at the beginning as is done in case of financial capital
maintenance concept. But in this concept the historical cost of both opening and closing capital are
expressed in terms of general purchasing power.

37. Limitations of Historic Cost accounting: [2nd imp]**

The following are the main limitations of historical accounts:
(a) Utility of accounting records seriously impaired: Financial statements or reports based on
historical cost fail to reflect the effect of such changes in purchasing power on the financial position
and profitability of the firm. Financial statements may be incorrectly interpreted unless adjustments
are made to place the data on the current price level.
(b) Unrealistic profits: Under the historical accounting system, depreciation calculated on the basis of
historical cost of old assets is usually lower than that of those calculated at current value or
replacement value. This results in more profits on paper.
(c) Insufficient provision of depreciation: Under the historical accounting system, depreciation is
calculated on the original cost of fixed assets with the result that only an amount equivalent to the
original cost of the fixed assets is available for its replacement when its life is over. But the
replacement cost of the asset will be more than the original cost on account of inflation.
(d) Fixed assets values are unrealistic: In times of rising prices, the conventional system of accounts
based on historical cost does not give a true and fair view of the business enterprise as is required
under the Companies Act, 1956 as fixed assets are shown at their historical cost and not at current
values.
(e) Different bases: In conventional system of accounting fixed assets are shown at the historical costs
whereas operating expenses and incomes are taken at current prices. Thus, different bases adopted are
not desirable for having correct and reliable information about the business.
(f) Return on capital employed misleading: Under historical cost accounting system the profits are
overstated and fixed assets are understated specially when there is increase in the price of the old fixed
assets. Such return on capital employed may lead to misleading decisions.
(g) Matching principle violated: Sales are shown at current purchasing power of the rupee while
stocks are shown at cost or market price, whichever is lower. Thus, profit disclosed by financial
accounting based on historical cost during inflation does not represent increase in wealth of the
business in terms of current purchasing power
(h) Difficulty in comparison of profitability of two plants: In case of price level changes,
comparison of profitability of two plants set up at different dates becomes difficult.
(i) Violation of the law of additivity: During inflation accounting data may not be additive. It is
argued that data may be added or subtracted if the purchasing power of the currency remains the same.
Since the value of the rupee does not remain the same on account of price level changes, the additivity
and subtraction of accounting data does not give meaningful results and violates the law of additivity.
(j) Mixing up holding gains and operating gains: Historical cost accounting mixes up the holding
gains and operating gains and does not help to take proper decision.
(k) Misleading inter-period and inter-firm comparison: For the purpose of inter-period and inter-
firm comparison, ratios are to be calculated. Financial ratios calculated based on historical costs will
not give correct view. No meaningful information will be available for correct decisions.
From the above discussion, it is clear that conventional accounting based on historical cost has outlived its
utility when prices are changing frequently. To overcome the drawbacks of conventional accounting, the
adoption of accounting for changing prices is advocated.

38. Introduction to Fair Value accounting: [1st imp]****

During the last few years it has been noticed that the basis of accounting is changing. For a long period of
time, accountants were used to record different assets and liabilities at their historical cost. Although this
method of recording assets and liabilities are meaningful when there is no change in the price level. To
overcome the weakness of historical cost method of recording assets and liabilities, many national and
international accounting standards body have moved towards a fair value approach.
Definition
Fair value is defined in IAS 39 as ―The amount for which asset could be exchanged, or a liability settled,
between knowledgeable, willing parties in an arm‘s length transaction.‖
Features
1. Fair value incorporates market information into the financial statements. The information contained
in the financial statements are useful to investors as all the values of assets and liabilities are close
to ‗current‘ values at the Balance Sheet date.
2. It focuses on the fair value of assets and liabilities.
3. Fair value is Balance Sheet based. The result of changes in the carrying values of assets and
liabilities are reflected in the Profit and Loss Statement.
4. Fair value accounting meets the conceptual framework criteria in terms of qualitative
characteristics of accounting information.
Advantages
1. Fair value accounting reflects present economic conditions relating to economic resources and
obligations.
2. The values of assets and liabilities are represented faithfully in the Balance Sheet which in turn
helps the investors to take informed decision.
3. Fair value accounting is unbiased.
4. Fair value accounting enhances consistency because it measures all assets and liabilities, acquired
or incurred during different periods, using the same base.
5. The use of fair value accounting would minimise the undesirable effects of the mixed measurement
approach to financial reporting as we use today.
Limitations
1. In a stable economy, this method of accounting is not cost effective.
2. There is no clear definition of fair value
3. Fair value of assets and liabilities may widely vary with future outlook of the economic condition
of the country. For example, during economic boom a plot of land of one acre could be sold for ₹
10 crore but during recession it may not fetch even ₹ 6 crore. Therefore, the reported profit will
fluctuate widely which may misguide the investors.
4. Management may not be in a position to fix fair value of highly technology based assets. For
example, valuation of 2G / 3G spectrum.
5. Lack of verifiability reduces the confidence of the investors.

Theory of other chapters:

46. Distinguish Reserve & Provisions [1st imp]******
Provisions Reserves
1. A provision is a charge against profit (a debit 1. A reserve is an appropriation of profit (a debit
in the profit & loss account) in the Profit & Loss Appropriation Account)
2. The creation of provisions has nothing to do 2. The creation of revenue depends on the
with the amount of net profit. In fact, amounts of profits earned by the business.
provisions are created in order to assist in the
calculation of a correct profit.
3. Provisions are created for future liabilities & 3. Reserves are created for safeguarding the
charges or for valuation adjustments of assets. business against unforeseen losses or with a
view to planning for further development of
the business.
4. Provisions are created for some specific 4. Reserves that are created are mostly general,
purpose and are utilized for that particular and/or in a few cases, particular (reserve
purpose. fund).
5. Provisions cannot be distributed as profits 5. Reserves, other than capital reserves, can be
except in cases where the actual liabilities or distributes as profits.
charges fall short of the amount provided for.
6. Provisions are adjustment entries – they are 6. Capital reserves may be internal or external
internal transaction and cause a reduction in transactions – they may reduce the net
the net profit. divisible profits or can cause an increase in
that or may not bear any relation with net
profit.
7. Provisions may appear in the liabilities side or 7. Reserves compulsorily appear in the liabilities
in the assets side of the balance sheet. side of the Balance Sheet alone.
50. Discuss the advantages & disadvantages of Self –

Balancing System. [3rd imp]
The following are the main advantages of sectional and self- balancing ledgers:
(a) Errors are easily located.
(b) The total amount receivable from trade debtors and the total amount payable to trade creditors can be easily
known from Total' accounts of 'Adjustment' accounts.
(c) A number of clerks can simultaneously work at ledgers and consequently the work of preparing ledger
accounts can be made in a comparatively short period of time.
(d) When different ledgers are maintained by different clerks - one maintains only one ledger the chances of
frauds are minimised,
(e) As each ledger is maintained by different set of persons and it is possible to fix responsibility in case some
errors are found in some ledgers.
(f) It is possible to obtain a regular or day by day progress of various items of expenditure and income.
But there are the following disadvantages also:
(a) Additional columns have to be maintained in subsidiary books which involve more clerical work,
(b) For small concerns the systems is too costly as compared to their advantages.

1st Semester Accounts Selected Question PDF

Загружено:

Сведения о документе

Исходное описание:

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

1st Semester Accounts Selected Question PDF

Загружено:

Авторское право:

Доступные форматы

Bhalotia Classes (9883034569): 1st Sem Acct crash course @ 1000

Accounts 1st Semester: [80 Marks]

3 days Crash course During Exams GAP

2nd Semester regular classes from 15th Feb:

Classes at Girish Park:

- 1 – No guarantee of any Question. Prepare as much as possible. Best of luck

Depreciation [10 Marks]

4. Depreciation: [2nd Important]*********

5. Depreciation: [SLM] [2nd Important]*********

6. Depreciation: [SLM] [2nd Important]*********

7. Depreciation: [W.D.V Method] [3rd Important]********

- 2 – No guarantee of any Question. Prepare as much as possible. Best of luck

14.Depreciation: [Change of Method] [1st Important]*********

16.Depreciation: [Change of Method] [1st Important]*****************

18. Depreciation: [Change of Method] [2nd Important]***************

- 3 – No guarantee of any Question. Prepare as much as possible. Best of luck

Provision for Bad debts

2. Provision for Bad Debts: [2nd Important]*****

6. Provision for Bad Debts: [2nd Important]*****

8. Provision for Bad Debts: [3rd Important]*****

- 4 – No guarantee of any Question. Prepare as much as possible. Best of luck

Capital & Revenue Exp [5 Marks]

2. Capital & Revenue Expenditure [2nd Important]*******

3. Capital & Revenue Expenditure [3rd Important]*******

- 5 – No guarantee of any Question. Prepare as much as possible. Best of luck

11. Inventory: Valuation of Stock [B.com 2014 Honours] [4th Important]

New Qn: Inventory: Valuation of Stock [2017 Pass] [1st Important]*********

- 6 – No guarantee of any Question. Prepare as much as possible. Best of luck

11. Rectification of Errors: [After Trial Balance] [2nd Important]*******

12. Rectification of Errors: [After Trial Balance] [2nd Important]*******

15. Rectification of Errors [After Final A/c] [1st Important] *******

16. Rectification of Errors: [After Final A/c] [1st Important]*******

- 7 – No guarantee of any Question. Prepare as much as possible. Best of luck

Insurance claim [10 Marks]

3. Loss of stock : [1st Important]**************

6. Loss of Stock : [2nd Important]**********

12. Loss of stock : [3rd Important]**********

15. Loss of profit [1st Important]**********

- 9 – No guarantee of any Question. Prepare as much as possible. Best of luck

Consignment [10 Marks]

10. Consignment: [Cost Price] [Normal Loss] [3rd Important]******

14.Consignment: [Invoice Price] [4th Important]****

15. Consignment: [Invoice Price] [1st Important]******

- 10 – No guarantee of any Question. Prepare as much as possible. Best of luck

Sale on Approval [5 Marks]

3. Sale or return [B.com 2011] [1st Important]*************

New Question: Sale or return [B.com 2017 Honours] [3rd Important]****

New Question: Sale or return [B.com 2018 Honours] [4th Important]****

- 11 – No guarantee of any Question. Prepare as much as possible. Best of luck

Self Balancing [5 or 10 Marks]

5. Self Balancing: [1st Important]**********

[Ans; ₹ 11,900 (Credit)]

10. Self Balancing: [1st Important]**********

- 13 – No guarantee of any Question. Prepare as much as possible. Best of luck

Single Entry [10 Marks]

7. Single Entry [2nd Important]***********

- 14 – No guarantee of any Question. Prepare as much as possible. Best of luck

9. Single Entry: [2nd Important]***********

- 15 – No guarantee of any Question. Prepare as much as possible. Best of luck

12. Single Entry: [4th Important]*****

- 16 – No guarantee of any Question. Prepare as much as possible. Best of luck

Non-trading [10 Marks]