Accounts Final

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CH. 1. VALUATION OF GOODWILL [Q. 2 (A): 5 MARKS]

Note: - One practical problem on Valuation of Goodwill carrying 5 marks and one theory question on Computer Awareness carrying 5 marks will be asked in Q. 2 of the Board Paper in option to one practical problem on Depreciation carrying 10 marks. The students may either attempt problem on Depreciation or Goodwill and theory question on Computer Awareness. Valuation of Goodwill: - As prescribed in the syllabus, the value of goodwill as on a particular date is ascertained by using any one of the following methods: i. The Average Profit Method and ii. The Super Profit Method.
INTRODUCTION Goodwill is an intangible (non visible) fixed asset having a realisable (economic) value. It is the reputation of business. Valuation of goodwill is very important in the case of admission, retirement and death of partners. DEFINITION OF GOODWILL Eric L. Kohler defined goodwill as under: Goodwill is the excess of the price paid for the business as a whole over the book value or over the computed value of all tangible assets purchased. Normally, goodwill thus acquired is only one type appearing on book of account and in financial statement. We can define goodwill as under:
Goodwill is a monetary value of the reputation of a concern in terms of its future earning capacity.
PROBLEMS 1. The profits of the firm for the last five years are 2002 Rs. 20,000; 2003 Rs. 16,000; 2004 Rs.
24,000; 2005 Rs. 8000; 2006 Rs. 12,000. Calculate the goodwill of the firm. [Ans. Rs. 16,000]
2. Mona, Reena and Sona have been carrying on a partnership business and good will of their firm is
to be valued at three years purchase of the average profit for the last five years. The profit and losses for the last five years have been. 1st Year Rs. 16,000, 2nd Year, 15,000, 3rd Year, 8,000(Loss), 4th Year, 7,000, 5th Year, 10,000. [Ans. Rs. 24,000] 3. Calculate the good will from the following information goodwill is valued at three years purchase of average profit of the last six years. Profit and losses of the business in the last six years are as follows, 1st year, Rs, 40,000(Profit) 2nd Year, Rs, 60,000(Profit) 3rd Year, Rs, 10,000(Loss) th 4 Year, Rs, 50,000(Profit) 5th Year, Rs, 30,000 (Loss) 6th Year, Rs, 80,000(Profit) [Ans. Rs. 95,000]
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4. Calculate the value of goodwill according to average profit method. Goodwill is valued at three
years purchase of last four year average profit. The profits and losses for the last four years are. 1st Year Rs, 10,000(Profit) nd 2 Year Rs, 12,000(Profit) 3rd Year Rs, 4,000(Loss) 4th Year Rs, 18,000(Profit) [Ans. Rs. 27,000]
5. The profit of a firm for the four years from 1991 to 1994 where_
1991 Rs, 40,000 1992 Rs, 45,000 1993 Rs, 55,000 1994 Rs, 53,000 Calculate the goodwill of the firm at 2yrs. Purchase of the average profit for the last three years. [Ans. Rs. 1, 02,000]
6. Mr. X a businessperson has earned the following profits in the last five years.
1995 1, 05,800 1994 1, 02,600 1993 98,400 1992 96,800 1991 95,500 Value goodwill of Mr. X on the basis of three years purchase of average of the past five years. [Ans. Rs. 2, 99,460]
7. Good will is valued at three years purchase of last five years average profit. The profits for the last
five years are 1st Year 2nd Year 3rd Year 4th Year 5th Year 4,800(p) 7,200(L) 10,000(L) 3,000(P) 5,000(L)
[Ans. 0] Note: - Since the companys average profit is negative. Therefore the firms goodwill is zero.
8. Compute the goodwill the following case good will is valued at three years purchase of average
profit of five years. The Profit of the five years were_ 1st Year 5,800 2nd Year 7,400 3rd Year 20,000 th 4 Year 3,500 5th Year 7,300 [Ans. Rs. 26,400]
9. Sales of trader for 3years ended 30th June 1995 are as follows
1995 Rs, 5, 50,000 1994 Rs, 5, 46,000 1993 Rs, 5, 25,000 The profit margin for the 3 years ended 30th June 1995 was 10%, 12%, 12% respectively. For the purpose of selling the business of the trader, goodwill is to be valued at 2years purchase of the average profit of the last 3years. Find the value of good will. [Ans. Rs. 1, 22,680]
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Year ended 31-12-1990 31-12-1991 31-12-1992 31-12-1993 31-12-1994 Turn over 5,15,000 5,45,600 5,35,800 5,40,900 5,60,800 Net profit 5% 6% 7% 7.5% 7%
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10. From the following particulars, value good will of 2yrs. Purchase of last 5 years.
[Ans. Rs. 70,326]
11. A firm with an average capital employed of Rs. 1, 60,000 is expected to earn Rs, 40,000 per annum
in future. Calculate goodwill at three times the super profit taking the normal rate of return as 15%. [Ans. Rs. 48,000]
12. Capital employed on 31st December, 1990 was Rs, 1, 00,000/-. The Profits earned by the business
for the last 5 years where. 1986 1987 1988 1989 1990 Normal rate of return is 15%. Good will is valued at 3 years business. Find out the value of goodwill. 30,000 40,000 50,000 40,000 60,000 purchase of the super profits of the [Ans. Rs. 87,000]
13. The books of a business showed that the capital employed on 31 st December, 1992 was Rs.1,
00,000/-. Profits for the last five years are_1988, 1989, 1990, 1991 & 1992 were Rs, 60,000, Rs, 55,000, Rs, 75,000, Rs, 85,000 & Rs, 65,000 respectively. Goodwill is valued at 2 years purchase of the Super profit of the business. NRR is 10%. [Ans. Rs. 1, 16,000] 14. M/s XYZ partnership firm earned net profit during the last four years were Rs, 7,000. Rs, 13,000. Rs, 12,000 and Rs, 8,000. The capital investment made in the firm was Rs, 50,000. N.R.R on capital is 15%. The remuneration of the partners during the period is Rs, 500 p.a. Good will is valued at 2 Yrs purchase of Average super profit of the above mentioned years. [Ans. Rs. 4,000]
15. M/s Vijay trading company earned net profit during the last four years was follows.
1st Yea r Rs, 57,000 nd 2 Year Rs, 44,000 3rd Year Rs, 61,000 4th Year Rs, 58,000 The capital investment made by the company is Rs, 1, 50,000. Normal Rate of return on capital is 20%. The remuneration of the partners during this period is Rs, 500 p.m. Good will is valued at 2years purchase of Average Super profit of above mentioned period. [Ans. Rs. 38,000]
16. The average net profit expected in the business by ABC firm is Rs, 36,000 per year. The average
capital employed in the business by the firm is Rs, 2, 00,000. The Rate of interest expected from capital invested in the business is 10%. The remuneration of the partners is estimated to Rs, 6,000 P.a. Calculate the value of goodwill based on 2years purchase of super profit. [Ans. Rs. 20,000]
17. M/s Rajesh Trading company earned net profit during the last four years were Rs, 15,000, Rs,
28,000, Rs, 30,000 & Rs, 40,000. The capital investment made by the company is 1, 00,000. Normal rate of return on capital is 15 %. The remuneration of the partners during this period is Rs, 1,000p.a. Good will is valued at 2 years purchase of average super profit of the above mentioned period. [Ans. Rs. 24,500] 3 BOOK KEEPING & ACCOUNTANCY
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18. The present average net profit of Braful, Shobha partnership firm before detecting partners
remuneration is Rs, 27,000 p.a. The capital employed in the business by the partner Braful Rs, 1, 00,000 & Shobha Rs, 50,000. The profit expected from the total capital invested is 10% p.a. The total remuneration is estimated to be Rs, 6,000 per annum. Find out the value of goodwill on the basis of 2years purchase of super profit. [Ans. Rs. 12,000]
19. The following balance sheet of Kantilal, Chandrakant.

Balance sheet as on 31st March, 1995 Liabilities Amount Assets Amount Capital Machinery 50,000 Kantilal 90,000 Building 41,000 Chandrakant 70,000 Investments 30,000 Reserve Fund 44,000 Stock 20,000 Creditors 38,000 Debtor 66,000 Bank 30,000 Profit/loss A/c 5,000 2,42,000 2,42,000 The net profits of the firm for the year ended 31st March, 1995 were Rs, 15,000 Rs, 25,000 Rs, 26,000. Ascertain the value of good will at 2 years purchase of the super profit of the 3years taking the normal rate of return on capital employed is 10%. [Ans. Rs. 4,200]
20. The following is the balance sheet of M/s Anna and Chunna as on 31st March 1995.
Balance sheet as on 31st march, 1995. Liabilities Amount Assets Amount Capital Machinery 10,000 Anna 1,64,000 Building 26,000 Chunna 40,000 Plant 56,000 Creditors 35,000 Stock 56,000 Profit/ Loss A/c 3,040 Debtor 19,040 Bank 75,000 2, 42, 040 2, 42, 040 Net profits for the past 3years are 1st year Rs, 43,350, 2nd year Rs, 36870, 3rd year Rs, 32,280 Normal rate of return on capital employed is 10%. Calculate the value of goodwill at 2years purchase of the average super profit. [Ans. Rs. 33,592]
21. The average annual profit earned by a firm is Rs. 30, 000 including Rs. 2,000 p.a. received as
interest on Non Trading Investment and this average is expected to continue in the future except for the following. a. Rent paid in the past for temporary premises at Rs. 500 per month will no longer have to be paid as the firms own premises are now ready. b. b. Salaries Rs. 7,000 p.a. paid in the past will increase by 20% in the future. Calculate goodwill at 3 times the Average Expected Profit. [Ans. Rs. 97,800] 22. The firm of Mr. X and Mr. Y earned average annual profit of Rs. 60,000. The profit includes Rs. 5,000 p.a. as interest on non trading investment. The firm is expected to maintain the profit except the following. 1. The firm was conducting the business from rented premises. Rent paid Rs. 600 p.a. The premises of the firm are now ready for conducting the business.
2. The business of the firm was managed by one manager who was paid salary of Rs. 6,000 p.a. Mr. X has decided to manage the firm and replace the manager. Services of Mr. X will be worth Rs. 1,000 p.a.
Calculate Goodwill at 2 years purchase of average profit.
[Ans. Rs. 1, 21,200]
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23. Priti and Pritam are partners sharing profits and losses in the ratio of 3:2. They admit Prasad for
1/6th share. For the purpose of admission of Prasad, goodwill of the firm should be valued on the basis of 3 years purchase of the last 5 years average profit. The profits were. [Ans. Rs. 27,000]
Year Profits Rs.
1990 91 60,000
1991 92 62,500
1992 93 45,000(L)
1993 94 42,500
1994 95 80,000
24. Raghunaths revenue statements for the 3 years ended 31st Dec. were as under: Particulars 1995 (Rs.) 1996(Rs.) 1997(Rs.)
Sales Less: Cost of Sales Gross Profit Less : Expenses Net Profit 50000 (30000) 20000 (24000) (-) 4000 70000 (50000) 20000 (10000) (+)10000 100000 (50000) 50000 (20000) (+)30000
Calculate the value of good will at 2 years purchase of the average profit, earned in the past 3 years. [Ans. Rs. 24,000] 25. Raj Kumar revenue statements for the 3 years ended 31 Dec. were as under: Particulars 1995 (Rs.) 1996(Rs.) 1997(Rs.)
Sales Less: Cost of Sales Gross Profit Less : Expenses Net Profit 50000 (10000) 40000 (22000) (+)22000 70000 (50000) 20000 (10000) (+)10000 100000 (50000) 50000 (20000) (+)30000
Calculate the value of good will at 2 years purchase of the average profit, earned in the past 3 years. [Ans. Rs. 41,334]
HOME WORK SECTION

1. Mahipati and Ganpati are partners sharing profits and losses in the ratio of 4:3. They admitted in partnership Shripati for 1/8 share. For the purpose of admission of Shripati, goodwill of the firm should be valued on the basis of 2 years purchase of the last 5 years average profit.
1991 92 1992 93 1993 94 1994 95 1995 96 Rs. 75,000 Rs. 1,00,000 Rs. 1,25,000 Rs. 85,000 Rs. 1,15,000
Calculate the goodwill of the firm.
[Ans. Rs. 2,00,000]
2. Jaya and Maya are carrying on a business in partnership for last 12 years. Goodwill of the firm is to be valued at 3 years purchase of the average profit of last 6 years.
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Rs. 2,20,000(Profit) Rs. 1,20,000(Loss) Rs. 2,60,000(Profit) Rs. 1,80,000(Loss) Rs. 2,90,000(Profit) Rs. 3,20,000(Profit) Rs. 2,10,000(Profit)
You are required to calculate the value of Goodwill of the firm. [Ans. Rs. 4,55,000] [Note: - Last 6 years are to be counted in reverse order of years given. Therefore, profit given for the year (2000 01) is to be ignored]. 3. Vijay and Azim carrying on a business in partnership for last 5 years. Goodwill of the firm is to be valued at 3 years purchases of the average profits of last 5 years. 5 BOOK KEEPING & ACCOUNTANCY
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The profits and losses for the last 5 years were:
1996-97 1997-98 1998-99 1999-2000 2000-01 (Profit) Rs. 32,000 (Profit) Rs. 30,000 (Loss) Rs. 16,000 (Profit) Rs. 14,000 (Profit) Rs. 20,000
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You are required to calculate the value of goodwill of the firm. [Ans. Rs. 48,000] 4. The following is the Balance Sheet of Ashok and Nayan: Balance Sheet as on 31st March 2007. Liabilities Amount Assets Amount Capital Plant and Machinery 1,78,000 Ashok 1,00,000 Furniture 62,000 Nayan 1,20,000 Stock 48,000 General Reserve 78,000 Debtors 40,000 Profit & Loss A/c 56,000 Bank 35,000 Sundry Creditors 36,000 Prepaid Expenses 27,000 3,90,000 3,90,000 The trading result for the last four years was 2003 04: Rs. 65,000 (Profit), 2004 05: Rs. 5,000(loss), 2005 06: Rs. 78,000 (Profit) and 2006 07: Rs. 92,000 (Profit). Calculate the value of goodwill of the firm at 2 years purchases of the super profit considering the Normal rate of return on the capital employed is 13%. [Ans. Rs. 24,975] 5. Calculate the value of goodwill of the firm from the following information: i. Total capital employed in the business Rs. 4,00,000. ii. Net profits of the firm or the past three years were Rs. 53,800, Rs. 45,350, Rs. 56,250. iii. Normal rate of return at 10%. iv. Goodwill is to be valued at three years purchase of super profit. [Ans. Rs. 35,400] 6. Following is the Balance Sheet of Mr. Atul as on 31st March, 1993: Liabilities Amount Assets Amount Capital 77,500 Fixed Assets 85,000 General Reserve 22,500 Current Assets 50,000 Creditors 40,000 Prepaid Advertisement 10,000 Bills Payable 5,000 1,45,000 1,45,000 The net profits for the last three years were Rs. 19,500; Rs. 22,500; Rs. 30,000. Calculate the value of goodwill at two times of super profit, taking into consideration the standard rate of return on the capital employed is 15%. [Ans. Rs. 21,000] Note: Capital Employed = Partners Capital + General Reserve + Accumulated Profit Unadjusted losses Expenses yet to be written off.
1. 2. 3. 4.
IMPORTANT POINTS TO REMEMBER Any Number which is followed by the word Years Purchase / Times / Thrice / Twice are considered as number of years purchase. If Number of Years of purchase is not given then assume it as 1 years purchase. If there is a continuous loss in the Firm then the Good will of the Firm would be Zero (0). If the total Profits/ Loss are negative then also the goodwill will be Zero.
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CH. 2. COMPUTER AWARENESS [Q. 2 (B): 5 MARKS]

Answer the following questions
1. What is the computer hardware? Ans. Computer hardware refers to physical components like input devices, central processing unit and output devices of a computer system. 2. Explain about the components of computer hardware? Ans. The computer hardware comprises of the following components. i. Input devices: - The data is required to be transmitted to computer for processing. It is done with the help of input devices like punch card reader, paper tape reader, mark and character reader, keyboard, speech recognizer etc. ii. Central processing Unit: - This unit processes raw data according to the instructions given to the computer. It has mainly three parts. Control unit, Arithmetic / Logic unit and memory unit. iii. Output devices: - The processed data is to be made available to the user in the form required by him.
For this purpose the following devices are used. Printers, visual display unit etc. This is necessary to provide back up storage. It may be in the form magnetic tapes, magnetic dises, floppies, C.D.s etc.
3. Write a short note on second generation computers. Ans. The computers of the second generation: - We are initially characterised by either magnetic drum or magnetic core storage later on they used transistors in place of vacuum tubes the transistors being small in size occupied lesser space and power. They were less expensive and generated less heat as compared to the vacuum tubes. The computer became compact. These computers were also applied in other field such as scientific and mathematical application in addition to application in the fields of business and industry. The United states of America had more than 5000 computers. Some of the important second generation computers are IBM 1620, IBM 1401, IBM 7094, CDC 1604, CDC 3600, RCA 501 and UNIVAC 1108 of these the most popular model of the second generation was IBM 1401. 4. Write short notes on Third Generation Computers (1965 71) Ans. In the early sixties integrated circuits were developed which were later on used in computers. Integrated circuits (I.C.) improved secondary stage devices, new input output devices such as Visual Display Unit (V.D.U) and high speed printers. These computers came to be known as Mini computers. I.C.s were more efficient and they were having much higher speed than transistors. Because of the I.C.s it became possible to have lot of functions from computers. They had a very large memory. Also many computer languages were introduced. 5. Write short note on Fourth Generation of Computers (1971 85) Ans. In 1971, Intel corporation developed and I.C. which was a revolutionary in a computer world. Later in 1974, another breed of computer known as Micro computers came into existence and which became popular during the fourth phase. The computer which used large scale integrated circuits used micro processor chips like 8080, 8085, 8086, 6800, 68000 of this 8086 and 68000 are 16 Bit chips and rest are 8 Bit chips. It reduced the size and increased the number of functions. Secondary devices are further developed. These computers left no field in human life uncovered. Some of the important models of fourth generation are Intel 4004, Apple I & II, DCM Spectrum, 2X Spectrum, BBCs ACCOM, IBM Compatibles etc. and sinclairs ZX 81. 7 BOOK KEEPING & ACCOUNTANCY
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6. Write a short notes on First generation Computers. Ans. The first generation computers were voluminous computers in which electronic valves were used. They were built by using vacuum tube. As the vacuum tubes were used as an electronic component, the computers were very large in size. ENIAC was the first computer of this category. Thus, the computer from ANIAC to IBM 650 belongs to this generation. The data manipulation capacity of ENIAC was thirty times more than the previous computers vacuum tubes were replaced by the transistors. Transistors were very small in size and weighs as compared to vacuum tubes and consumed very low power. 7. Write short notes on Central Procession Unit. Ans. It is popularly known as the heart, Brain and Nervous system of the computer. It provides central control of the operation of the whole computing machine. The CPU is known as a part of the computer system. The CPU consists of a memory unit, control unit and An Arithmetic and logic unit. i. Memory unit: - A memory unit of the central processing unit is a place where the computer program and data are stored during processing. A memory unit is a random access storage device comprising number of storage locations. The data which is to be stored in the memory unit for processing are fixed by the computer program. The main or internal memory is called as primary storage. It normally consists of the program to be executed and the data required by the program. ii. The Control Unit: - All the operations carried out by the computer are directed by the control unit. A control unit is called as the nerve centre of the computer since it controls and co ordinates all hardware operations. The program and data are transferred from the input device into the memory as directed by the control unit during the execution of the program each instruction is retrieved in turn from the memory and interpreted. A control unit informs the Arithmetic logic unit as to how precisely the operation to be preformed. It directs the transfer to the Arithmetic logic unit of any item of data that is required for operation. iii. The Arithmetic Logic Unit (ALU): - The arithmetic logic unit comprises a number of accumulators and registers. Accumulator means a register and associated equipment in the arithmetic unit of the computer where arithmetic and logical operations are performed. A register is a hardware device for holding data to be operated upon. The ALU obtains the data from the main memory as per the direction given by the controlling unit based on the program given to it. This data is loaded into accumulators in the ALU. The ALU operates on the
data which is available in the main memory. The ALU after processing the data sent to output device.
8. EXPLAIN THE IMPORTANCE OF COMPUTER IN MODERN AGE. Today computers are put to a variety of uses. They have been designed with highly improved performances. Computers can be used to process voluminous data at a high speed. As regards its application in the field of accounting, a computer should be able to deal with routine accounting. It means all normal accounting processes such as financial transactions should be dealt with the use of a computer. All cash and bank transactions, handling of accounts of debtors and creditors and calculation of wages and salaries etc should be handled with the use of computer. In addition, computers can be put to other popular uses such as production, programming and control, flexible budgetary control, variance analysis, sales and forward trends etc. Following points explain the importance of computer in modern age. Speed: - In the modern world, the desire of a man to complete tasks within the stipulated time limits has been, to a large extent, fulfilled by using a computer. Computers enable us to do arithmetical computations with a high degree of speed and ease. It has enables us to do things, which would have been almost impossible earlier. The speed which computers functions are measured in Pico seconds (1/1000 of Nano second). Thus, computers are capable of making millions of computations per 8 BOOK KEEPING & ACCOUNTANCY
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second. Hence, a powerful computer is capable of completing the tasks in less than an hour, which could have taken a year for a group of people to compute. Accuracy: - Computers are not only fast in completing a job at a great speed, but it is also performed with a high degree of accuracy. Sometimes, it is common to say that there is a Computer error. As a matter of fact, it is Human error and not a Computer error since a computer carries out the instructions efficiently given by the programmer. As such, if the instructions are faulty, the errors creep in the computers output. Therefore, if the computer is provided with accurate data and instructions, there will be no error in the output given by a computer. Thus, a computer offers the greatest advantage of achieving high degree of accuracy in accounting processes. Diligence: - By doing similar job continuously, human beings get tired which results into some mistakes. As against this, a computer is capable of doing the same job continuously error free. A computer takes the same time to complete the first calculation as well as the 10000th calculation. Thus, the degree of diligence possessed by a computer is impossible in case the same job is done by human beings. Storage: - Another advantage offered by a computer is that of its enormous capability to store data. A computer is capable of storing data along with the instructions given by the programmer in the primary (main) memory. In case, the primary memory is not sufficient it can be stored in its secondary (auxiliary) memory. There are various devices used for storing the secondary memory. Some of the common devices used in secondary memory are Compact Disks, Tapes, Drums, pen Drives etc. Having large capacity to store data. Versatility: - A computer possesses great versatility, which is capable of performing arithmetic calculations, logic operation of comparison and moving data within different sections of the computer and in input and output operations. Although, a computer lacks a brain of its own, it can be put to a varied uses such as preparation of mark lists, financial accounting, share analysis etc. Further, a computer can produce results almost in whatever form it is most suitable. Miscellaneous: - In addition to the above mentioned advantages, a computer can offer economies in the form of effective managerial control, saving in labour cost because it is fully automatic. 9. EXPLAIN THE ROLE OF COMPUTER IN ACCOUNTING. Ans. The role of computer in accounting is explained as follows. 1. For various reasons, every business organization is required to prepare and maintain various books of account. The computer is used by many business organizations to carry out accounting operations at a greater speed and accuracy. 2. The computer is useful for classifying, processing, analyzing, tabulating, recording and interpreting the accounting data for various purposes. 3. It is useful for improving the financial system of the organization. 4. With the help of the computer, accountants can easily, accurately and speedily prepare the different source documents like voucher, invoice, quotation, receipt, etc. 5. The computer is useful for recording accounting entries in the journal and posting such entries in the ledger. It is also used to prepare trial balance, final account, accounting statements like Balance sheet, etc. ********************************************************************************
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CH. 2. BILLS OF EXCHANGE [Q. 3: 12 MARKS]

Note: - In Q.3 of the Board paper, one problem on Renewal of bills of exchange and another problem on dealing of multiple bills by a drawer (one drawer and multiple drawees) will be asked. Students are required to attempt any one out of these two. BILLS OF EXCHANGE: - A Bills of Exchange is a Negotiable (exchangeable) Instrument, containing an unconditional order signed by the maker (drawer) directing a certain person (drawee) to pay a certain sum of money only to the bearer of the Instrument. ESSENTIAL FEATURES OF BILL OF EXCHANGE 1. A bill of exchange must be in written form. 2. It must contain an order. It should not be in the form of a request. The order may be in the shape of a request but it must be imperative (very important or compulsion). 3. It should be an unconditional order. There should be no condition for making payment. 4. It must be signed by the maker. A bill of exchange without the signature of the maker becomes invalid. 5. It must specify the definite amount to be paid. 6. It must contain an order to pay a certain sum of money only. 7. The amount must be payable to a person whose name is specified in the bill or to his order or to the bearer. 8. A bill of exchange must be dated. THERE ARE THREE PARTIES IN THE BILL OF EXCHANGE. DRAWER: - The drawer is the person or the party who draws the bill. He is the creditor and he has to receive the money from other person. DRAWEE: - The drawee is the person or the party on whom the bill is drawn. He is a debtor and he has to pay the amount to the drawer. Once he accepts the bill he becomes and Acceptor. PAYEE: - The payee is the person or the party to whom the bill is made payable. If the bill is made payable to the drawer himself, the drawer and the payee are the same person. TERM OF THE BILL: -A bill of exchange is subject to certain terms and conditions. Such terms and conditions include period of the bill, place of payment, amount of the bill, etc. GRACE DAYS/ DAYS OF GRACE: - While calculating the due date of any time bill, three extra days knows as days of grace should be added to the specified period mentioned in the bill. For example, a bill drawn on 15th January, 2007 for two month will become due on 18th March, 2007. DUE DATES / MATURITY DATES: - The date on which the Bill is ready for the payment is known as due date or maturity date of that Bill. If the due date falls on Sunday or any other public holiday the payment of the bill should be made on the immediately preceding working day. If a bill falls due for payment on 15 th August, it must be paid on 14th August. If a bill falls due on 26th January, it must be paid on 25th January. In case 25th January is Sunday the payment must be made on 24th January. HONOUR OF THE BILL: - When the bill is paid on the due date is known as honour of the Bill. DISHONOUR OF THE BILL: - When the Bill is not paid on the due date then it is known as dishonour of the bill. 10 BOOK KEEPING & ACCOUNTANCY
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RETIREMENT OF THE BILL: - When the Bill is paid before the due date then it is known as retirement of the Bill. HUN DIES: - When the subject matter of the Bill is in Indian language say Tamil, Telungu, Guajarati, Hindi etc. then it is known as hundies. ACCEPTANCE OF THE BILL: - When the drawee puts the signature on the bill then it is known as acceptance of the bill. THERE ARE TWO TYPES OF ACCEPTANCE GENERAL ACCEPTANCE: - When the bill is accepted without any terms and conditions then it is known as general acceptance. QUALIFIED ACCEPTANCE: - When the bill is accepted with certain terms and conditions then it is known as qualified acceptance. THE QUALIFIED ACCEPTANCE MAY BE DONE IN ANY ONE OF THE FOLLOWING WAYS. i. Qualified as to the amount:- The drawee may not agree to pay the full amount mentioned in the bill. He may agree to pay only a part of the amount mentioned in the bill. This type of acceptance is called qualified as to the amount. Qualified as to the Time: - If the drawee changes the period of the bill, it is called qualified acceptance as to the time. Qualified as to the place: - In this case, the drawee agrees to pay the amount at a particular place and there only. Qualified as to parties: - In this case, the bill is accepted by one or more of the drawees and not by all the drawees. Conditional Acceptance: - When the drawee accepts the bill subject to the fulfilment of a condition, it is called a conditional acceptance.
ii. iii. iv. v.
DRAFT: - Before the acceptance of the bill, it is known as draft. ENDORSEMENT OF BILL: - When the ownership of the bill is transferred then it is known as endorsement of Bill. There are two parties in the endorsement of Bill. ENDORSER: - A person who transfers the ownership of the bill is known as endorser. ENDORSEE: - A person on whom the bill has been transferred is known as endorsee. TYPES OF BILL: - There are two types of Bill INLAND BILL: - A bill which is drawn & made payable in the same country, it is known as Inland bill. FOREIGN BILL: - A bill which is drawn in one country & made payable in another country then it is known as foreign bill. NOTING CHARGES: - It is a fee charged by the Notary Public, In case of dishonour of Inland bill. Notary Public is a government officer who is appointed to register the dishonour bill. PROTESTING: - It is also a fee charged by the government in case of foreign bill.
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________________ ________________ (Drawers Name & Address) _______________ (Date of Bill drawn) ______________ after date, pay __________________________________________________ _________________________ or his / her order, the sum of Rupees _____________________ _______________________________________________ only for value received. Rs. ______________/Sd /_______________ (Drawers Name) Accepted Sd/_______________ (Drawees name) _______________ (Date of acceptance)
STAMP
To ___________________ (Drawees Name) ___________________ ___________________ (Drawees Address)
Notes: 1. If the question includes Prepare a demand bill or if the term is On demand, or if the period is not given at all, the wording will be: On demand, pay 2. If the term given in 45 days after acceptance/sight, the wording will be: Forty five days after acceptance / sight, pay 3. If instead of the term, the due date itself is given the wording will be: On such and such a date, pay
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1. Drawer Drawee Payee Period Amount Date of bill Accepted on : : : : : : :
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Soundariya, Neelam Bhawan, Kalyan Sugandi, Dastur Nagar, Amaravati Umesh Narigrekar, Deogad 90 days Rs. 7,555 15th March 1995 20th March 1995
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PREPARE A BILL OF EXCHANGE FROM THE FOLLOWING DETAILS. [Q. 1. (F) - 5 Marks]
2. On 10th March, 1995 Rajesh Bhoyar, Gandhinagar, Nagpur draws a 2 months bill for Rs. 3,000 on
Samir Choudhary, Main Road, and Belapur. Samir Choudhary accepted the bill on 15th March 1995
3. Drawer Drawee Payee Period Amount Date of Bill Accepted on 4. Drawer Drawee Payee Amount Period Date of Bill Accepted on 5. Drawee Drawer Period Date of Bill Amount of the Bill Accepted On
: : : : : : : : : : : : : : : : : : : :
Elavarasi, 35, Lakhani Apartment, Ulhasnagar Elavarasan, 23, Prasad Bhawan, Thane (East) Subita Ambarnath 90 days Rs. 9,755 15th March, 1995 20th March, 1995 Shri Narayandas Kela, Gandhi Chauk, Dhamangaon Shri Atul Khatke, Mandrup Road, Solapur Shri Ranjeet Chavan, Ambajogi Rs. 5,000 90 days. 15th March, 1995 20th March, 1995 K . Prabhakar, Nehur Road, Solapur. M. Sudhakaran, Shivaji Nagar, Nanded. 3 Months. 5th February,1996 Rs. 4000/9th February,1996 Vilas Ptil, 44, M.G. Road, Nanded. Pankaj Pawar, 70, Bhavani Galli, Solapur. Ramchandra Rampure, Rampur. 60 days. 28th January, 1995 29th January, 1995 Rs. 2,800/13 BOOK KEEPING & ACCOUNTANCY
6. Drawer : Drawee : Payee : Period : Date of Bill : Date of Acceptance : Amount of the Bill :
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7. Drawer : Drawee : Payee : Amount : Period : Date of Bill : Date of Acceptance: 8. Drawer Drawee Payee Amount Period Date of Bill Bill accepted 9. Drawer Drawee Payee Amount Period Date of Bill Accepted on 10. Drawer Drawee Payee Amount Period Date of Bill Date of Acceptance 11. Drawer Drawee Payee Amount of Bill Period Date of Bill Date of Acceptance : : : : : : : : : : : : : : : : : : : : : : : : : : : :
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Rekha, Main Road, Jalgaon. Basant, Sandesh, Nandura. Uma Chandak, Khamgaon. Rs. 2500/2 months. 21st January, 1995 25th January, 1995 Shekhar Desai, Shastri Road, Mahad. Sharad Verma, Narayanpeth, Pune Mukund Pande, Panel. Rs. 3,500/3months. 21st June, 1995 for 3,000 on 25th June, 1995. Vijay Bhat, Main Road, Nagpur. Ashok Kulkarni, M.G. Road, Nagpur. Anil Jadhav, Pune. Rs. 6,950. 80 days. 7th March, 1996. 10th March, 1996. For 90 days. Namdev Tukaram, Paithan. Nivruti Sopan, Dehu. Vitthal Pandurang, Pandharpur. Rs. 5,111 3 months 17th August, 1995 20th August, 1995 Priti Chavan, Chandika Road, Malvan. Snehlata Patil, Prashant Nagar, Ambajogai Archana Ghime, Amaravati Rs, 10,000/2 months. 1st January, 1996 5th January, 1996
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12. Drawer Drawee Payee Amount Period Date of Bill Date of Acceptance 13. Drawer Drawee Payee Amount Period Term Date of Bill Drawn Date of Acceptance Accepted bill for Rs. : : : : : : :
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Shri Ravindra Patil, Housing Society, Ambajogai Shri Bhaurao Deshmukh, Bazar Chauk, Dhamangaon Shri Prasad Shendage, Malvan Rs. 7,500/3 months 1st January, 1995 5th January, 1995
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: Abhijit Patil, Vikram nagar, Patna. : Tejas Kapare, Kothrud, Pune. : Amey Patki, Nagpur. :Rs. 7500 :60 days :After sight : 1st June 2006 : 11th June 2006 : 7000 only.
14. Drawer: Yamini Gupta, Sarvapriya Vihar, Delhi Drawee Kamini Sharma, Raj baug, Agra. Period 100 days. Term After A\acceptance Date of Bill 1st January, 2007 Amount Rs. 10,500/Date of Acceptance 3rd January, 2007 15. Drawer : Vilas Patil, 20, M.G. Road, Pune. Drawee: Vikas Pawar, 31, S.V. Road, Nashik Payee: Viraj Potade, 41, A.B. Road, Sholapur, Period, 3 months Amount Rs. 7500 Date of Bill, 1st January, 2007 Date of Acceptance: - 3rd January, 2007 16. On 10th March, 1995, Rajesh Bhoyar, Gandhinagar, Nagpur draws a 2 months bill for Rs. 3,000 on Samir Chaudhary Main Road, Belapur. Samir Chaudhary accepted the bill on 15 th March, 1995.
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TRADE BILLS {IN THE BOOKS OF DRAWER} & TRADE BILLS {IN THE BOOKS OF DRAWEE}
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1. On 1st March, Sudhir sells goods worth Rs. 10,000 to Narendra. On the same day, Sudhir draws a bill on Narendra for the amount at 3 months. Narendra accepts the bill. On the date of maturity, Narendra honoured the bill. Give journal entries in the books Sudhir. 2. On 1st July, Sham sells goods worth Rs. 20,000 to Ram. On the same day, Sham draws a bill on Ram for the amount at 2 months. Ram accepts the bill. Ram pays the amount of the bill on due date. Give journal entries in the books of Sham. 3. On 1st January, 2005; Bhaskar purchased goods from Randhir on credit worth Rs. 5,000. On the same day Bhaskar gave an acceptance to the Bill drawn by Randhir at 3 months for Rs. 5,000. Randhir discounted the bill with his Bank at 6% p.a. on 4th January, 2005. On the maturity of the Bill, Bhaskar paid the amount of Bill. Give journal entries in the Books of Randhir Note: - Here the bill accepted by Randhir was discounted with the Bank. Hence, there will be no entry on the maturity as the amount will be received by the Bank. 4. Anand brought goods worth Rs. 4,500 from Samant on August 1, 2006. On the same day, Anand accepted the bill for Rs. 4,500 at 3 months drawn by Samant. Samant got the bill discounted with his bank at 6%. Before the due date, Anand informed Samant about his inability to pay the amount of bill. He further requested him to accept Rs. 2,500 in cash and immediately draw upon him a new bill for the remaining amount at 2 months together with interest at 8% p.a. Samant agreed. The second bill was duly paid on maturity. Give journal entries in the books of Samant. Note: - Here 1st part payment is made and then the interest is charged. 5. On 1st March, Ramchandra sold goods to Raman worth Rs. 8,000/- and Raman accepted the Bill for Rs. 8,000/- at 3 months drawn by Ramchandra. Ramchandra discounted the bill with his bank @ 6% p.a. On due date the bill was dishonoured and Raman requested Ramchandra to accept Rs. 4,000/- immediately and draw upon him a new bill for the remaining amount at 3 months together with an interest at 10% p.a. Ramchandra agreed. The second Bill was duly honoured. Give Journal entries in the books of Ramchandra. Note: - Here 1st part payment is made and then the interest is charged. 6. Premlal sold goods to Sunderlal worth Rs. 10,000/- and Sunderlal accepted the bill for Rs. 10,000/at 3 months drawn by Premlal. Premlal Discounted the bill with his bank @ 6 % p.a. on due date the bill was dishonoured and Sunderlal requested Premlal to accept Rs. 4,000 immediately and draw upon him a new bill for the remaining amount at 3months together with an interest at 10% p.a. Premlal agreed and the second bill was duly honoured. Give the Journal entries in the books of Premlal. Note: - Here 1st part payment is made and then the interest is charged. 7. Archana purchased goods from Babita on Credit for Rs. 20,000. On next day Archana paid Rs. 10,000 to Babita and accepted a bill drawn by Babita for the balance amount for four months. Babita discounted the bill with her bank for Rs. 9600/- Before the due date Archana approached Babita with a request to renew the Bill Babita agreed with the condition that Archana should pay Rs. 6000 with interest of Rs. 120 and accept a new bill for the balance. The arrangement was duly carried out. New bill is met on the due date. Pass journal entries in the books of Babita. Note: - Here 1st interest is charged and then the part payment is made.
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8. Baloo owes Kaloo Rs.8000. Kaloo then draws a bill for Rs. 8000 on Baloo for a period of three months. Baloo accepts and return it to Kaloo. Kaloo discounted the bill with his bank at 12 % p.a. On due date, the bill was dishonoured noting charges amount to Rs. 30. Kaloo then draws a bill for the balance plus interest of Rs. 170. Before the due date of this bill Baloo pays the amount at a discount of Rs. 40 to retire the bill. Pass Journal Entries in the books of Kaloo. Note: - Here only the interest is charged and there is no part payment occurs. 9. Minal draws a bill on Usha for Rs. 5,000 at 3 months. Usha accepts the bill and return to Minal. Minal discounted the bill @ 12 % p.a. with the bank. On Maturity Usha finds herself unable to make payment of the bill and requested Minal to renew the bill. Minal accepts the proposal on the condition that Usha should Pay Rs. 2,000 in cash and accept a new bill at one month along with interest at 10% p.a. These arrangements were carried through. Usha retires the bill by paying Rs. 3015/- Pass Journal Entries in the books of Minal. Note: - Here 1st part payment is made and then the interest is charged. 10. On 15th March, Ahmed sold goods worth Rs. 1,600 to Awasthi and draws upon him a bill
at 4 months for the amount. Awasthi returned the bill to Ahmed with his due acceptance. On 15th April, Awasthi retired the bill under rebate of 5% per annum. Give Journal entries in the books of Ahmed. MISCELLANEOUS PROBLEM
11. On 1st April 1979, Pawan draws a bill for Rs. 6,000/- on Sanjay for a period of 4 months. The bill is duly
accepted by Sanjay. On 5th April, Pawan endorses the bill in favour of Lalit. However on 25 th July, Sanjay approaches Pawan and requests that the bill is to be renewed for a further period of 4 months at 12% interest p.a. Pawan agrees and Pays the necessary amount to Lalit. The new bill is duly accepted and paid by Sanjay. Pass journal entries in the books of Pawan.
12. Rupali accepted a bill for Rs. 2,000/- drawn by Deepali at three months. Deepali got the bill discounted with
her bank for Rs. 1,900. Before the due date Rupali approached Deepali for renewal of the bill. Deepali agreed on the condition that Rs. 1,000/- be paid immediately together with interest on the remaining amount at 6% p.a. For balance Rupali should accept a new bill for three months. These arrangements were carried through but afterwards, Rupali become Insolvent and only 40 % of the amount could be recovered from her estate. Give journal entries in the books of Deepali.
13. Chanda accepted a bill for Rs. 6,000 drawn by Nanda at three months. Nanda got the bill discounted with his
bank for Rs. 5,700. Before the due date, Chanda approached Nanda for renewal of the Bill. Nanda agreed on the condition that Rs. 3,000 is paid immediately together with an interest on remaining amount at 18% p.a. for four months and for the balance Chanda should accept a new bill. But afterwards Chanda become insolvent and only 25% of the amount could be recovered from her estate. Pass journal entries in the books of Nanda.
14. Pankaj draws a bill on Anil worth Rs. 8,000 for three months which was accepted by Anil. On the same date
Pankaj discounted the bill with his bank @ 10 % p.a. On the due date Anil dishonoured his acceptance. Anil paid Rs. 4,000/- to Pankaj and accepted a fresh bill for two months for the balance including interest of Rs. 40. Anil became insolvent before the maturity of the bill and 50 paise in a rupee was received at first and final dividend from his estate. Give Journal entries in the books of Pankaj.
15. Bhagwan sold goods to Deo for Rs. 3,000. On the same date Deo accepted a bill for 2 months. Bhagwan
endorsed the bill to Ishwar. On the due date of the bill, Ishwar informed that the bill is dishonoured and the noting Charges were Rs. 20. Bhagwan drew a new bill on Deo for the amount due including noting charges and an interest of Rs. 130. Before the due date of the second bill Deo become bankrupt and 20 paise in a rupee was received from his estate as first and final dividend. Pass the necessary journal entries in the books of Bhagwan.
16. Mahendra sold goods to Ravindra worth Rs. 6000 and for that Ravindra accepted a bill drawn by Mahendra
for 3 months. After a month Mahendra discounted the bill with his bank at 10 % p.a. On the due date
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Ravindra dishonoured his acceptance. Ravindra paid Rs.3, 000 to Mahendra and accepted a fresh bill for 3 months for the balance including interest @ 8% p.a. Before Maturity of the Bill Ravindra become insolvent and 50 paise in a rupee was discovered from his estate as first and final dividend. Give Journal entries in the books of Mahendra and Ravindra.
17. Prakash drew a bill for Rs. 4,000 on Anand on 1st May, 1976 for three months. This was for the amount
which Anand owed to Prakash. Anand accepts the same and return it to Prakash who discounted at his bank st for Rs. 3,900. On 1 Aug, 1976 Anand requested Prakash to renew the bill and Prakash agreed on the condition that Rs. 1,000 is paid immediately and Anand should accept the new bill for 3 months for the balance payable plus interest of Rs. 45. These arrangements were carried through. However, on 1 st October, 1976, Anand retired his acceptance for Rs. 3, 035. Pass journal entries in the books of Prakash and Anand.
18. On 1st January, 1988 Vandana drew a bill for Rs. 6,000 for 2 months periods on Lata. Lata duly accepted the
bill. On 4th January 1988 Vandana discounted the bill with her bank for Rs. 5850. However, on the due date the bill was dishonoured. Lata agreed to accept a new bill with an interest of Rs. 100 for a period of one month. The bill was duly met on the due date. Give the journal entries in the books of Vandana and show Vandanas account in the books of Lata.
19. Mukund owes (be obligated) Prakash Rs. 4000 for which Prakash draws a bill for 2 months on 1st February,
1989. Mukund accepts it and returns it to Prakash. On 4th March, 1989, Mukund approaches Prakash and request him to accept Rs. 1000 in cash and draw a fresh bill for 3 months for the balance plus interest @ 10% p.a. Prakash accepts the request and draw a bill accordingly which is accepted by Mukund. On 1 st June 1989 Mukund retired his acceptance under discount of Rs. 30/-. Pass journal entries in the books of Prakash and prepare Prakash account in the ledger of Mukund. 20. Abhay draws a bill on Ajay for Rs. 1,400 at 3 months. Ajay accepts the bill and returns it to Abhay. The bill is sent to the bank for collection. On maturity Ajay finds he unable to make payment of the bill and request Abhay to renew it. Abhay accepts the Proposal on the condition that Abhay should pay Rs. 700 in cash along with noting charges of Rs. 10 and draw a renew bill for one months for the balance. These arrangements were carried through. Afterwards Ajay retired the bill by paying Rs. 695. Give journal entries in the books of Abhay and Ajay.
21. Krishna accepted a bill for three months drawn by Rama for Rs. 4000. Rama discounted the bill with the
bank at Rs. 3900. On the date of maturity, the bill was dishonoured. Rama paid noting charges for Rs. 20 Krishna paid half the mount for the bill and full amount of the noting charges and accepted a bill for the balance including interest of Rs. 50. The second bill was duly honoured. Pass necessary journal entries in the books of Rama and show Krishnas account.
22. Jain purchased goods worth Rs. 3,000 from Sharma on 1st June 1977 and gave him acceptance on 3rd June
for a period of three months. On 15th June Sharma discounted the bill for Rs. 2980. On 6th September, when the bill was presented for payment. Jain dishonoured the same. Rs. 20 was paid as noting charges. Pass journal entries in the books of Sharma and Sharmas account in the books of Jain.
23. Sagar owes Sindhu Rs. 8000 Sagar accepted a bill for 3 months by Sindhu for Rs. 8000. Sindhu discounted
the bill with bank at Rs. 7800. On the due date, the bill was dishonoured. Noting charges amounted to Rs. 20. Sagar Paid half the amount of the bill and full amount of the noting charges including interest of Rs. 100. Pass journal entries in the books of Sindhu and show the account of Sagar.
24. On 1st January, 1982 Shri Jameersheth of Jalgaon sold goods to Shri Nanchand of Nanded for Rs. 80,000. On
the same date Shri Jameersheth drew a bill on Shri Nanchand for the same amount for three months. Shri Nanchand accepted the bill and returned the same to Shri Jameersheth on 4th January, 1982. Shri Jameersheth discounted the bill with the banker at 10 % p.a. On the due date bank informed that the bill was dishonoured and Shri Nanchand requested Shri Jameersheth to accept Rs. 40000 immediately and draw upon him the new bill for the remaining amount for two months together and interest at 12% p.a. Shri Jameersheth agreed and the second bill was duly honoured. Pass the necessary Journal entries in the books
of Shri Jameersheth of Jalgaon and show Shri Jameersheths account in the books of Shri Nanchand of Nagpur.
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25. Ameet draws a bill for Rs. 7500 on Tushar for four months. Ameet discounts the bill with the bank at 8%p.a.
On the due date Tushar requested Ameet to accept Rs. 4,700 (including Rs. 200 for interest) and to draw a bill for the balance of three months. Ameet agrees this proposal. Before the due date of the new bill Tushar retires the bill for Rs. 2960. Pass the journal entries in the books of Tushar and open Tushars account in the books of Ameet.
26. Akbar owed to Barbar Rs. 6,000. Akbar accepted the bill drawn by Barbar for the amount at four months.
Barbar discounted the bill with his bank for Rs. 5850. Before the Due date, Akbar approaches Barbar with the request for renewal of the bill. Barbar agreed on the condition that Rs. 4,000 is paid immediately in cash together with an interest on the remaining amount at 12%p.a. for three months and for the balance Akbar should accept a new bill at three months. These arrangements were carried through. Barbar endorsed the new bill to Kadar. Akbar met the bill on due date. Give the transaction in the books of Akbar and prepare Akbars account in the books of Barbar.
27. Sonia draws a bill on Moni for Rs. 6,000 at 4 months. Moni accepts the bill and returns it to Sonia who
discounts the bill with the bank at a discount of 8%p.a. Before the due date of Bill Moni requested Sonia to accept Rs. 4000 in cash and draw a bill for the balance plus interest at 12%p.a. for two months. Sonia draws a bill as the request is agreed. The bill is sent to bank for collection. On the due date the bill was honoured. Pass the necessary journal entries in the books of Sonia and Moni. 28. Journalize the following transactions in the books of Kamesh: a. Nanda informs Kamesh that Shantis acceptance for Rs. 4,000 endorsed to Nanda has been dishonoured and noting charges have been Rs. 100 b. Ashok renews his acceptance to Kamesh for Rs. 2400 by paying Rs. 800 in cash and accepting a new bill for the balance plus interest @ 12 p.a. for 3 months. c. Devas acceptance to Kamesh Rs. 12,000 is retired one month before its due date at a discount of 12% p.a. d. The bank informs Kamesh that Sudhakars acceptance for Rs. 4,000 has been dishonoured and it has paid noting charges Rs. 80.
29. Journalise the following transactions in the books of Kailash.

a. b. c. d. Sandeep informs Kailash that Vilas acceptance for Rs. 8,000 endorsed to Sandeep has been dishonoured. Noting Charges amounted to Rs. 200. Kalpana renews her acceptance to Kailash for Rs. 7,500 by paying Rs. 3,500 in cash and accepting a fresh bill for the balance plus interest at 10% p.a. for 3 months.
Uma retired her acceptance to Kailash for Rs. 3,000 by paying Rs. 2,900 in cash. Kailash sent a bill of Anita for Rs. 6,000 to bank for collection. But Bank informed that the bill has been dishonoured by Anita.
30. Journalise the following transactions in the books of Rahul.

a. Pradeep informed Rahul that, Vijays acceptance for Rs. 1,000 endorsed to Pradeep has been dishonoured. Noting charges amounted to Rs. 50. b. Nilesh renews his acceptance to Rahul for Rs. 600 by paying Rs. 200 in cash and accepting a fresh bill for balance plus interest at 12% p.a. for 3 months. c. Prashants acceptance to Rahul for Rs. 3,000 retired one month before due date at a discount of 12% p.a. d. Bank informs Rahul as to the dishonour of Avirajs acceptance for Rs. 1,000 to Rahul, discounted with the bank. Noting charges are Rs. 20. 31. Journalize the following transactions in the books of Maharaja. a. Ayub informs Maharaja that Sadashivs acceptance for Rs. 2,000 endorsed by Ayub has been dishonoured, noting charges amounted to Rs. 150 b. Pankaj renews his acceptance to Maharaja for Rs. 1200 by paying Rs. 400 in cash and accepting a fresh bill for the balance plus interest at 12% p.a. for 3 months. c. Vaibhavs acceptance to Maharaja for Rs. 6000 retired one month before the due date at a discount of 12%p.a. d. Bank informs Maharaja as to the dishonour of Kasams acceptance for Rs. 2000 to Maharaja discounted with Bank noting charges Rs. 200.
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collection had been honoured and bank charges debited were Rs. 60.
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32. Journalise the following transactions in the books of Mr. Ashok Agrawal. a. The bank informed Mr. Ashok Agrawal that Kamleshs acceptance for Rs. 12,000 sent to bank for b. Discharged Dr. Ashok Agrawals acceptance to Mahesh for Rs. 15,250 by endorsing Prakashs
acceptance to Mr. Ashok Agrawal for Rs. 15,100.
c. Vishal renewed his acceptance to Mr. Ashok AGrawal for Rs. 11,200 by paying Rs. 6000 in cash and
accepting a fresh bill for the balance plus interest @ 12% p.a. for three months. d. Dinesh who had accepted Mr. Ashok Agrawals bill of Rs. 14,000 was declared bankrupt and only 45% of the amount due could be recovered from his estate.
33. Journalise the following transactions in the books of Ashwin. a. Bank informed that Sachins acceptance for Rs. 5,750 sent to bank for collection had been honoured
and bank charges debited were Rs. 50.
b. Nitin renewed his acceptance for Rs. 7,200 by paying Rs. 2,200 in cash and accepting a new bill for the
balance plus interest @8% p.a. for 3 months.
c. Discharged our acceptance to Pravin for Rs. 4,250 by endorsing Bhavins acceptance to us for Rs. 4,000. d. Jatin who had accepted Ashwins bill of Rs. 8,500 was declared insolvent and only 40% of the amount
due could be recovered from his estate.
34. Journalise the following transactions in the books of Kamalakar. a. Nisha informs Kamalakar that Shantis acceptance for Rs. 14,000 endorsed to Nisha has been
dishonoured and noting charges have been paid Rs. 200.
b. Asha renews hare acceptance to Kamalakar for Rs. 12400 by paying Rs. 6000 in cash and accepting a
new bill for the balance plus interest @ 12% p.a. for 3 months.
c. Devikas acceptance to Kamalakar for Rs. 42000 is retired one month before its due date at a discount
of 12% p.a.
d. The bank informs Kamalakar that Sindhus acceptance for Rs. 15000 has been dishonoured and it has
paid noting charges Rs. 100.
e. Bank informs Kamalakar that Sangitas acceptance for Rs. 12000 which was sent to bank for collection
has been dishonoured. 35. Journalise the following transactions in the books of Ranbir. a. Sonam informs Ranbir that Salmans acceptance for Rs. 3200 endorsed to Sonam has been dishonoured and the noting charges amounted to Rs. 80. b. Ravindra renews his acceptance to Ranbir for Rs. 4,800 by paying Rs. 1800 in cash and accepted a fresh bill for the balance, plus interest @ 12% p.a for 2 months. c. Dilips acceptance to Ranbir for Rs 8000 is retired one moth before the due date at a discount of 12% p.a. d. The bank inform Ranbir that Shirins acceptance for Rs 5500 to Ranbir discounted with the bank earlier has been dishounred and the noting charges
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CH. 3. DEPRECIATION [Q. 2: 10 MARKS]

Note: - As per the syllabus a Standard XII (SYJC), the students are required to study the following two methods of depreciation only, viz. i. ii. Fixed Instalment Method / Original Cost Method / Straight Lime Method / Equal Instalment method. Reducing Balance Method / Written Down Value Method / Diminishing Balance Method.
PROBLEMS 1. A company purchased Machinery worth Rs. 2, 00,000 on 1st January, 1974. Accounting year of the Company closes on 31st December every year. Company provides depreciation at 10% p.a. on the original cost. On 31st December, 1976 the machinery was sold for Rs. 1, 20,000. Give the machinery Account for three years. [F.I.M]
2. Aurangabadkar purchased furniture worth Rs. 20,000 on 1-4-73. He charges depreciation at the rate of
10% on the Reducing Balance method. On 1 7 75, he sold out a part of the Furniture for Rs. 2,000, the original cost of which on 1 4 73 was Rs. 4,000. The financial year of Aurangabadkar ends on 31st March every year. You are required to prepare his furniture account for the first four years, and to pass journal entries for the transactions of the third year. [W.D.V.]
3. A Good luck manufacturing Co. Ltd. Luck now purchased new machinery for Rs. 45,000 on 1st
January, 1975 and immediately spent Rs. 5,000 on its fixation and erection. In the same year on 1st July additional machinery costing Rs. 25,000 was purchased. On 1st July 1977 the machinery purchased on 1st January, 1975 became obsolete and was sold for Rs. 30,000. Depreciation was provided for annually on 31st December at the rate of 10% per annum on Fixed Instalment method. You are required to prepare Machinery Account for the period from 1975 to 1977. [F.I.M]
4. A company purchased a machine worth Rs. 2,00,000 on 1st Jan. 1976. On 1st Jan 1977, the company
purchased an additional machine for Rs. 40,000. On 1 st July 1978, the company sold the machine purchased on 1st Jan 1977 for Rs. 32,000. Company writes off depreciation at the rate of 10% on the original cost and the accounts are closed every year on 31st Dec. Show the Machinery Account and Depreciation Account for the three years ending 31st Dec. 1976, 1977 and 1978 under Fixed Instalment Method. [F.I.M]
5. Vishal Traders, Bombay, purchased Machinery on 1-1-1970 for Rs. 68,000 and paid installation charges
Rs. 2,000 and decided to depreciate the machinery at 10% per annum under the fixed instalment system. On 1-7-1972 machinery having an original cost of Rs. 10,000 was sold for Rs. 5,000 and on the same date new machinery was purchased for sr. 10,000. Give the required journal entries and also write up the Machinery Account for 1 1 1970 to 31 12 72 assuming the accounts of the firm are closed on every 31st December. [F.I.M]
6. M/s Amol Industries, Pune, purchased machinery for Rs. 19,400 on 1st January, 1976, and spent Rs. 600
for its erection. On 1st July 1976, additional machinery costing Rs. 10,000 was acquired. On 1st July 1978 the machinery purchased on 1st January, 1976 was sold for Rs. 12,000 and on the same date fresh machinery was purchased at a cost of Rs. 16,000. Depreciation was provided annually on 31st December at the rate of 10% on the original cost. Give the machinery account and deprecation account for 1976, 1977 and 1978. [F.I.M]
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7. M/s. Deepali International bought furniture worth Rs. 24,000 on 1 4 1977 and additional furniture on 1
10 1977 worth Rs. 16,000. They charged depreciation at 15% p.a. on Fixed Instalment basis. On 1 10 1979 they sold out one cupboard for Rs. 2,200 original cost of which on 1-4-1977 was 4,000. On the same date a new cupboard was purchased for Rs. 8,000. Show the furniture account and depreciation account for st the year 1977-78, 1978-79 and 1979-80 assuming that the financial year closes on 31 March every year. [F.I.M]
8. Kamlesh bought the machine costing Rs. 11,000/ - on 1st January, 1977. He had to pay Rs. 1,000/- towards
its installation. He writes off depreciation @ 10% of the original cost every year. His books are closed on 31 December every year. On 1st July, 1979 he disposed off the machine for Rs. 6,000/- Give journal entries in the books of Kamlesh for all these years till 31st December, 1979. [F.I.M]
st
9. M/s Tarachand Traders purchased machinery worth Rs. 45,000 on 1st January, 1978. On 30th June, 1978
additional machinery worth Rs. 25,000 was purchased. On 31 December, 1979 machinery which had cost Rs 4,000 on 1st January, 1978 was sold for Rs. 3,200. On 31st December, 1980 a machinery costing Rs. 10,000 st on 1 January, 1978 was sold for Rs. 6,250. Prepare Machinery account and depreciation account for the years ending 31-12-1978, 31-12-1979 and 31-12-1980 after providing depreciation @ 10% p.a. on straight line method. [F.I.M]
st
10. M/s B. Bijapure and Co. Ltd. Of Ahmednagar purchased on 1st January, 1978 the machinery costing Rs.
1,00,000. On 1st July, 1979 additions were made worth Rs. 20,000. On 1st March, 1980 additions were made to the amount of Rs. 12,000. On 30th June, 1981, machinery which had original value of Rs. 16,000 on 1st January, 1978 was sold for Rs. 10,000. Depreciation was to be charged @ 10% p.a. on original cost. Show Machinery account in the book of M/s B. Bijapure and Co. Ltd., of Ahmednagar for the years from 1978 to 1981. The financial years closes on 31st December, every year. [F.I.M]
11. M/s Joshi Bros., Jalgaon purchased on 1st January, 1967 a cost of Machinery for Rs. 17,400 and spent Rs. 600
on its erection. On 1st January, 1968, another set of machinery was purchased at Rs. 10,000. On 1st July, 1969, the machinery purchased on 1st January, 1967, was sold at Rs. 8,000 and the same date a fresh machinery was purchased at Rs. 15,000. Depreciation was charged at 10% p.a. under straight line method on the original cost of asset on 31st December every year. Prepare Machinery account for the three years, i.e. 1967, 1968 and 1969 and Depreciation account for the same period in the books of Joshi Bros. Jalgaon. [F.I.M]
12. M/s Sharad Agency showed a debit balance of Rs. 36,000 to the Machinery account on 1-7-1978. The
original cost of machinery was Rs. 60,000. On 1st January, 1979 Sharad Agency bought an additional machinery of Rs. 48,000 and spent Rs. 2,000 for its installation. One more machinery costing Rs. 25,000 was st purchased on 30 6 1979. On 30-6-1980 a part of machinery acquired on 1 January, 1979 was sold for st Rs. 7,250 the original cost of which was Rs. 10,000. On 31 -12-1981 the Agency sold out the machinery for Rs. 16,000 which was purchased on 30-06-1979. Agency charged 10% Depreciation on fixed instalment basis and their financial year closes on 30th June every year. Show machinery account for the years 1978-1979, 1979-1980, 1980-1981 and 1981-1982. [F.I.M]
13. Janab Hasansab of Hyderabad made furniture for his own office on 1st October 1975. For this he had spent
Rs. 36,000 on materials and Rs. 16,000 on wages. He estimated he life of the furniture to be 10years. He also estimated that its expected scrap value at the end of its life would be Rs. 12,000. He closed his books of st st accounts on 31 March every year. He sold the entire furniture for Rs. 40,000 on 1 October 1978. Show the st st st furniture account and depreciation account for the year ended 31 March, 1976, 31 March 1977, 31 st December 1978 and 31 December 1979. [F.I.M]
14. The accounting year of M/s Kothari Fine Printers ends on 31st December every year. They decided to
depreciate their machinery at 10% p.a. on fixed instalment system. Taking into consideration the following information, prepare machinery account and depreciation account for the three years ending 31 st December, 1982, 1983 and 1984. On 1st January, 1982 machinery worth Rs. 20,000 was purchased. On 1st July, 1982, another machinery costing 12,000 was purchased. Machinery the cost of which on 1st January, 1982 was Rs. 5,000 was sold for Rs. 3,000 on 1st July 1983. A few machine of the value of Rs. 8,000 was purchased on 30th June, 1984. [F.I.M]
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15. M/s Mallikarjun Bros. Washim purchased on 1st January 1982 machinery for Rs. 47,000 and spent Rs.
3,000 on its erection. On 1st July, 1982 additional machinery costing Rs. 5,000 was purchased. On 1st April, 1983 the machinery purchased on 1st July, 1982 was sold for Rs. 3,000 and on the same date new machinery was purchased for Rs. 12,000. Depreciation is to be charged at 10% p.a. under straight line method on 31st December, every year. Prepare machinery account for 3 years from 1 st January, 1982 and pass journal entries for the year 1983 in the books of M/s Mallikarjun Bros. [F.I.M]
16. Goodluck Manufacturing Co. Ltd., Jalgaon purchased new machinery for Rs. 45,000 on 1st January 1981
and immediately spent Rs. 5,000 on its fixation and erection. In the same year on 1st July additional machinery costing Rs. 25,000 was purchased. On 1st July 1983 the machinery purchased on 1st January 1981 become absolute and was sold for Rs. 30,000. Depreciation was provided for annually on 31st December at the rate of 10% p.a. on Fixed Instalment Method. You are required to prepare machinery account and depreciation account for the period from 1981 to 1983. [F.I.M]
17. On 1st January, 1981 Messrs Heera and Co. Kalyan purchased machinery for Rs. 80,000 and spent Rs.
5,000 on its installation. On 1st July in the same year they purchased another machine for Rs. 60,000. On 31st December, 1982 the machinery purchased on 1st January 1981 was sold for Rs. 68,000. On 1st January 1983 a new machine was installed at a cost of Rs. 70,000. Messrs Heera and Co. Charge depreciation @10% p.a. on the original cost. The accounts are closed on 31st December every year. Show Machinery account and Depreciation account for the year 1981, 1982 and 1983. [F.I.M]
18. Arun Traders, Nasik, purchased machinery on 1st July, 1984 for Rs. 14,000 and decided to depreciate
the machinery at 10% p.a. under straight line method. On 1st January, 1985, new machinery was purchased for Rs. 20,000. On 1st July, 1986, machinery purchased on 1st July, 1984, was sold for Rs. 10,000 and on 31st December, 1986, new machinery was purchased for Rs. 25,000. Prepare machinery account and deprecation account for the years 1984, 1985 and 1986 assuming that the financial year ends on 31st December every year. [F.I.M]
19. Ameet Traders, Sinnar, purchased furniture on 1-1-1984 for Rs. 15,000. In the same year on 1st July
additional furniture was purchased for Rs. 8,000. On 1-7-1985, the furniture purchased on 1-1-1984 was sold for Rs. 10,000 and on the same day new furniture was purchased for Rs. 12,000. The firm charged depreciation at 10% p.a. on Reducing Balance method. Prepare Furniture account deprecation account for the years ending on 31st December 1984, 1985 and 1986. [W.D.V.]
20. Deepak Washing Company, Shahpur, purchased a washing machine on 1st January 1980 for Rs. 40,000.
On 1st July, 1980 another machine costing Rs. 20,000 was purchased. On 1st July, 1982, the machine acquired on 1st January, 1980 was sold off for Rs. 27,000 and on the same date a new machine was purchased at a cost of Rs. 15,000. Depreciation was provided annually on 31st December @ 10 % p.a. on the original cost. Show machinery account and Depreciation account for the years 1980, 1981 and 1982. [F.I.M]
21. Sangam Trading Co. purchased some machinery on 1st Jan. 1986 costing Rs. 88,000 and spent Rs. 2,000
on its erection. On 30th June, 1986, additional machinery is purchased for Rs. 10,000. On 31st December, 1987 a part of the machinery was sold for Rs. 2,100 which had a cost price of Rs. 4,000 on 1st January, 1986. Prepare Machinery account for the years 1986, 87 and 88 and pass journal entries for the year 1987 assuming that Machinery is depreciated at 10% p.a. on Diminishing balance method on 31st December, each year. [W.D.V.]
firm spent Rs. 2,000 for its erection. On 1st July, 1983 additional Machinery was purchased for Rs. 20,000. The machine costing Rs. 10,000 on 1st January, 1983 was sold out on 30th June 1985 for Rs. 6,250. On the th same date a new machine costing Rs. 32,000 was purchased. Every year on 30 June, depreciation at the rate of 10% on cost price of machinery was charged. Prepare Machinery account and deprecation account for three years i.e. 1982 83, 1983-84 and 1984-1985 in the books of the firm. [F.I.M]
22. M/s Joshi and company purchased one machinery on 1st January, 1983 costing Rs. 8,000. On the same date
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23. Ram and Shyam Co. Purchased machinery on 1-1-1986 for Rs. 2,00,000 and spent Rs. 10,000 on its
installation. On 1st July, 1986 they purchased another machine for Rs. 1,50,000. On 31-12-1987 the machinery purchased on 1st January, 1986 was sold for Rs. 1,60,000. On 1-1-1988 another new machine was purchased at cost of Rs. 1,75,000. Depreciation was charged @ 10% p.a. on the original cost. The account st are closed on 31 December every year. Show Machinery account and deprecation account for the year 1986, 1987 and 1988. [F.I.M]
24. The company purchased machinery worth Rs. 36,000 on 1-4-1987 and spent Rs. 4,000 towards installation
charges. The company depreciates the machinery at the rate of 10% p.a. on original cost. On 1-10-1989 the company sold out a part machinery for Rs. 3,200. The original cost of the sold machinery on 1-4-1987 was Rs. 6,000. On 1-10-89 the company purchased machinery for Rs. 10,000. As the company closes the financial st year 31 March every year. Prepare Machinery account and the deprecation account for the years 1987-88, 1988-89 and 1989-90. [F.I.M]
25. Seema automobiles Ltd. purchased a machine for Rs. 60,000 on 1st July, 1988. On 1st January, 1989 Company
purchased an additional machine costing Rs. 20,000. On 31 December, 1990 the machinery purchased on 1st July 1988 become obsolete and was sold for Rs. 40,000. Depreciation was provided annually on 31st December at the rate of 10% p.a. on the Reducing Balance method. Prepare Machinery account and Depreciation Account for the period from 1988 to 1990. [W.D.V.]
st
26. On 1st January, 1988, Nitin and Co. Bombay purchased Machinery for Rs. 50,000. On 1st July 1988 additional
machinery purchased for Rs. 20,000. On 30th June 1990, the company sold a machine costing Rs. 10,000 on 1st January 1988 for Rs. 6,000. Company closes the account on 31st December, every year decided to charge 10% p.a. deprecation on original cost of the machinery. Prepare Machinery account and Depreciation account for 1988, 89 and 90. [F.I.M]
27. On 1st January, 1985, Sunil Traders purchased machinery for s. 20,000. On 1st July 1985, they purchased
further machinery costing Rs. 10,000. On 1st July, 1987 they sold for Rs. 6,000 the machine purchased on 1st January, 1985, and bought another machine for Rs. 12,000 on the same date. Depreciation was provided on machinery @ 10% p.a. on the Diminishing Balance method and the financial year closes on every 31 st December. Prepare the Machinery account and the Depreciation account for the years 1985, 1986, 1987 and 1988. [W.D.V.]
28. Dhoni Manufacturing Co. purchased a Machine worth Rs. 77,600 and installs it at a cost of Rs. 2,400 on 1st
July 1986. On 1st January 1987 an additional Machine costing Rs. 40,000 was purchased. The machine purchased on 1st January, 1987 having become obsolete was sold for Rs. 22,000 on 1st July 1989 and a new st st machine worth Rs 60,000 was purchased on 1 August, 1989. The deprecation is provided annually on 31 December, at 10% p.a. on original cost of machinery. Show machinery account for the years 1986, 1987, 1988 and 1989. [F.I.M]
29. Shirish Enterprises purchased a machinery costing Rs. 36,000 on 1-4-1989 and was installed on the same
date. The installation expenses amounted to Rs. 4,000. The firm decided to charge depreciation at 10% p.a. on straight line method. On 1-10-91 a part of machinery with an original price of Rs. 6,000/- (including the installation charges) was sold for Rs. 3,200 and a new machinery costing Rs. 10,000 was purchased on the same date. The firm closes its books of accounts on 31st March every year. Prepare Machinery account and Depreciation account for the year 1989-90, 1990-91 and 1991-92 in the books of the firm. [F.I.M]
30. S. Narayan from Bombay purchased Furniture for his office costing Rs. 1,04,000 on 1 st July 1987. Estimated
life of the Furniture is 10 years and scrap value Rs. 24,000. The Furniture was sold on 31 December 1990 st for Rs. 70,000. The accounts are closed on 31 December every year. From the above information prepare Furniture account and Depreciation account for the years 1987, 1988, 1989 and 1990, by charging depreciation under Fixed Instalment Method. [F.I.M]
st
31. On 1st January 1990 Ashok and Co. Ltd., Aurangabad, purchased Machinery for Rs. 1,00,000. On 1 st July 1990
additional Machinery purchased for Rs. 40,000. On 30th June 1992, the company sold a machine (costing Rs. st st 20,000 on 1 January 1990) for Rs. 12,000. Company closes the accounts on 31 December every year and decided to charge 10% p.a. depreciation on original cost of the machinery. Write Machinery account for the year 1990, 1991 and 1992. Give journal entries for the year 1992 only. [F.I.M]
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32. Rahul Gupta Trading Co., Kalyan purchased furniture on 1.1.1992 for Rs. 25,000. In the same year
on 1st July additional furniture was purchased for Rs. 10,000. On 1st July 1993 the furniture purchased on 1.1.1992 was sold for Rs. 15,000 and on the same date new furniture was purchased for Rs. 12,000. The company charges depreciation at 8% p.a. on reducing balance method. Prepare Furniture account and deprecation account for 3 years. Assuming that the accounting year of the company closes on 31st December every year. [W.D.V.]
33. On 1st July, 1992, Ajanta Traders, Pune, acquired a building for Rs. 8,00,000. On 1st April, 1993, an
extension was made to the above building by spending Rs. 4,00,000. On 1st October 1994, half of the building was sold through a broker for Rs. 5,60,000 and brokerage at 2% of the selling price was paid. Depreciation is charged on 31st March every year at 10% p.a. under the Diminishing
Balance Method. Prepare the Building Account and the Depreciation account for three years. [W.D.V.]
34. Mona Trading Company of Amravati purchased machinery for Rs. 65,000 on 1 st January, 1992 and
immediately spent Rs. 5,000 on its fixation and erection. In the same year on 1 st July, additional machinery costing Rs. 30,000 was purchased. On 1st July 1994 the machinery purchased on 1st January, 1992 became obsolete and was sold for Rs. 51,000. On 1-10-94 a new machine was also purchased for Rs. 41,000. Depreciation was provided annually on 31st December at the rate of 12% Per annum on fixed instalment method. Prepare Machinery account and depreciation account from 1992 1994. [F.I.M]
35. On 1 1 1992 Vijay Traders purchased furniture for Rs. 15,000. On 1 7 1992 additional
furniture was purchased for Rs. 8,000. On 30 6 1993 the furniture purchased on 1 1 1992 was sold for Rs. 10,000 and on 1 7 1993 new furniture was purchased for Rs. 12,000. The firm charged depreciation at 10% p.a. under the reducing balance method. Prepare furniture account and deprecation account for the years 1992, 1993, 1994 assuming that the accounting year of the firm is calendar year. [W.D.V.]
36. M/s Jalaram Mill, Mulund, showed a debit balance of Rs. 32,000 to the Machinery A/c on 1st April,
2001(Original cost of the Machinery was Rs. 40,000). On 1st October, 2001 the Mill bought additional Machinery for Rs. 15,000 and spent Rs. 1,000 for its installation. One more machinery costing Rs. 20,000 was purchased on 31st March, 2003. Depreciation is charged on 31st March, every year at 10% p.a. under the Diminishing Balanced Method. On 31 st March, 2004, the machinery which was purchased on 1st October, 2001 was sold for Rs. 12000. Prepare Machinery A/c and Depreciation A/c for the years 2001 2001, 2002 2003 and 2003 2004. (February, 2008) [W.D.V.]
37. On 1st April, 2004 Saikripa enterprises purchased two computers of Rs. 40,000 each. On 1st
October, 2004 they purchased one more computer for Rs. 40,000. On 1st October, 2006 they sold one computer, which was purchased on 1st April, 2004 for Rs. 18,780. Depreciation on computers was provided @ 10% p.a. on diminishing balance method and the financial year closes on 31st March every year. Prepare computer A/c depreciation A/c for years 2004 05, 2005 06 and 2006 07. (September. 2008) [W.D.V.]
38. M/s J.K. Company, Maroda, purchased machinery for Rs. 80,000 on 1 st April 2002. Company
purchased additional machinery for Rs. 36,000 on 1st October, 2003. The company charges depreciation @10% p.a. on the original cost. The financial year of the Company ends on 31 st March every year. On 30th September, 2004 a part of the machinery, original cost of which was Rs. 30,000 on 1st April, 2002 was sold by the Company for Rs. 22,000. Prepare Machinery account for 3 years and give journal entries for the year 2002 2003. [F.I.M] [MARCH 2009]
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CH. 4. JOINT VENTURE ACCOUNTS [Q. 4: 12 MARKS]

Method I When Separate set of Books is maintained.
1. Dimple and Simple entered into a joint venture. They agreed to share profits and losses in the proportion of their initial contributions to the joint venture. They opened a joint Bank A/c. and deposited Rs. 60,000 and Rs. 40,000 respectively as initial contributions. They made cash purchases of Rs. 70,000. They also paid Rs. 4,500 for insurance and freight and Rs. 1,750 for sundry expenses. At the end of the venture, the sales amounted to Rs. 1, 10,000/- There was unsold stock of goods worth Rs. 5000. Simple took over the unsold stock. The Joint Venture was closed. You are asked to prepare Joint Venture A/c. Joint Bank A/c and Co ventures A/c. Also pass journal entries. 2. A and B entered in to Joint Venture to construct a building for X enterprises limited. The contract price was Rs. 2, 50,000. They opened joint bank account and deposited Rs. 1,20,000 and Rs. 60,000 respectively and agreed to share profits and losses in the ratio 3 : 2. The following transactions were made from Joint Bank A/c: Wages Rs. 70,000 and Material purchases Rs. 1,25,000. Apart from this A supplied material of Rs. 12,000 and B paid the architect fees of Rs. 2,500 on completion of construction. X enterprises Ltd. paid the full amount and unsold stock was taken over by B at an agreed value of Rs. 15,000. Prepare Joint venture A/c, Joint Bank A/c and Co venturers A/c. Also pass journal entries. 3. Suresh and Ramesh entered into a joint venture to construct a building at a contract price of Rs. 7,00,000. They agreed to share profits and losses in the ratio of 2:1. Suresh deposited Rs. 5,00,000 and Ramesh Rs. 1,00,000 into joint bank. The transactions were as follows. 1. 2. 3. 4. 5. Purchase of materials Rs. 3,50,000 Tools and equipment Rs. 1,00,000. Wages Rs. 1,20,000 Architect fees Rs. 25,000 Besides these, Suresh supplied material worth Rs. 15,000 and Ramesh supplied material worth Rs. 13,500. Building was ready and contract price received. Prepare Joint venture A/c, Joint Bank A/c & Co Venturers A/c. Also pass journal entries.
4. Ashok, Kishor & Anup undertook the construction of an office building at a contract price of Rs. 10,00,000. Receivable in cash Rs. 6,00,000 and Rs, 4,00,000 in shares. They agreed to share profits and losses equally. They opened the joint bank a/c and contributed the following amount. Ashok Rs. 3,00,000, Kishor - Rs. 3,00,000, and Anup Rs.2,00,000. Ashok paid Rs. 10,000 as architect fees, Kishor brought in the venture mixture of Rs. 25,000 and Anup brought in motor truck of Rs. 55,000. The following transactions were made from Joint bank A/c. Purchase of material Rs. 4, 50,000, Plant Rs. 30,000 and freight and wages Rs. 1, 50,000. At the close of the venture, Ashok took away the unused material worth Rs. 8,000. Kishor took away the mixture worth Rs. 15,000 and Anup took away the truck worth Rs. 35,000. The scrap value realised of the plant was Rs. 6,000. The Contract price was received in full and Kishor took over the shares for Rs. 4,10,000. Prepare Joint Venture A/c, Joint Bank A/c & co ventures A/c. Pass journal entries. 5. Sanjay, Ajay and Vijay entered into a Joint venture for construction of a building for contract price of Rs. 6, 00,000. Payable in cash Rs. 4,00,000 and Rs. 2,00,000 in debentures. They decided to share profits and losses in the ratio of their initial contributions. They opened Joint Bank A/c. where Sanjay deposited Rs. 3,00,000 Ajay Deposited Rs. 2,00,000 and Vijay deposited Rs. 1,00,000. The following payments are made out through Joint Bank A/c . Purchase of material Rs. 2,50,000, Plant Rs. 45,000, Wages Rs. 77,000 and other charges Rs. 11,000. Sanjay brings truck of Rs. 40,000. Ajay brings materials of Rs. 55,000 and Vijay brings mixture of Rs. 10,000. At the end of the venture unused materials of Rs. 55,000 and Vijay brings mixture of Rs. 10,000. At the end of the venture unused material was taken over by Sanjay for Rs. 5,000. Ajay took over mixture for Rs. 15,000 and Vijay took over Plant for Rs. 12,000. The truck was sold in the market for Rs. 22,000. Contract price was received and debentures were taken over by Vijay for Rs. 1,90,000. Prepare Joint Venture A/c., Joint Bank A/c., Co ventures A/c and also passes journal entries.
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6. Harish, Iqbal and Joseph undertook to construct a building for Prabhu & Co. at a contract price of Rs. 2, 50,000. The price was to be paid as follows: Rs. 2,00,000 in cash and balance in preference shares of the company. Profit was agreed to be divided in the ratio of 2:2:1. The participants contributed cash as follows. Harish Rs. 30,000 Iqbal Rs. 25,000 and Joseph Rs. 20,000. These amount were credited to a joint bank A/c. Iqbal was to be paid a remuneration of Rs. 1,500 for managing the business. Harish prepared the plats and paid Rs. 3,500 for them. Iqbal brought a concrete mixture for Rs. 12,000 and Joseph brought a truck for Rs. 25,000. They brought Plant for Rs. 15,000 Material for Rs. 1,20,000 and paid wages Rs. 1,05,000. When the contract was completed Harish took over unused material for Rs. 10,000. Iqbal took back the concrete mixture for Rs. 11,000 and Joseph agreed to take back the truck for Rs. 18,000. The plant was sold as scrap for Rs. 6,000. When the contract price was received, Harish agreed to take over preference shares at a discount of 20%. All the accounts were closed. Prepare Joint venture A/c, Joint Bank Account and the Co venturers account also pass journal entries. 7. X and Y enter into a joint venture to build a multi storied building. They agree to share the profit and losses equally upto Rs. 50,000 of the profit or loss from the venture. Thereafter, the profit and losses are to be shared in the following proportion. X = 3/5; Y = 2/5. X contributes plant and machinery worth Rs. 40,000 and meets registration expenses worth Rs. 10,000. Y contributes the plot on which the building is to be built, valued at Rs. 1,00,000. Other expenses incurred are : Fuel and electricity charges : Rs. 40,000; Raw Materials : Rs. 1,60,000; Labour charges : Rs. 75,000; Advertisement expenses : Rs. 5,000. All the above expenses were met from the Bank A/c. opened for the joint venture. At the end of the venture, X agreed to take the plant and machinery valued at Rs. 10,000. Y sold off the multi storied building for a total of Rs. 7,20,000 and collected all dues from the buyers, except for one flat, valued at Rs. 1,80,000 which he kept for himself in lieu of his expected share of profit. The ventures who had agreed to maintain their venture accounts in separate sets of books, ask you to prepare the Joint venture A/c, Joint Bank A/c and Venturers Capital A/c. Also pass journal entries. 8. X, Y and Z entered into a joint venture to construct a premises and the contract price was Rs. 4,00,000. Payable Rs. 2,00,000 in cash and Rs. 2,00,000 in shares. X,Y and Z contributed Rs. 1,00,000 each. The following payments were made through bank: Raw materials Rs. 75,000; Transportation charges Rs. 25,000; Machinery Rs. 50,000; Insurance Rs. 25,000. Besides this X paid other expenses Rs. 20,000. Y paid for mixture worth Rs. 20,000 and Z brought in materials of Rs. 20,000. After completion X and Z took over unused materials of Rs. 5,000 each and Y took over the mixture for Rs. 10,000. The scrap of plant was sold for Rs. 8,000. Due to a certain defect, contract price was reduced by Rs. 10,000 and shares were taken over by X at a premium of 5%. Prepare Joint Venture A/c. Joint Bank A/c and Co venturers. 9. X,Y and Z entered into a Joint Venture to sell a certain plot of land. They contributed Rs. 25,000 each. They purchased land of 5,000 sq. m. at Rs. 10 per sq. m. 1/5 th of the land was left over for public roads and the balance was divided into 8 plots of equal size. A plan was got prepared for Rs. 2,000 and other expenses were Rs. 3,500. 5 plots were sold @ Rs, 15 per sq. m. and 3 plots were sold @ Rs. 14 per sq. m. Prepare joint venture A/c Joint Bank A/c and Co Venturers A/c. Pass journal entries. 10. A, B & C entered into a joint venture sharing profits and losses in the ratio of their initial contributions. They opened a Joint Bank A/c. wherein they deposited Rs. 1,00,000 Rs. 1,50,000 and Rs. 2,00,000 respectively. Expenses made through Joint Bank were as follows. Purchase of Raw material Rs. 50,000. Paid architect fees Rs. 10,000, Plant Rs. 25,000 Besides this, A brought in mixture of Rs. 20,000, B paid insurance charges Rs., 5,000 and C brought in machinery worth RS. 12,000. At the end of the venture, A took back the mixture worth Rs. 5,000, B took back the unused materials for Rs. 4,000 and C took back the machinery for Rs. 8,000. Scrap of plat realized Rs. 2,000. On completion they received the contract price Rs. 1,00,000 in cash and Rs. 1,00,000 in debenture which where taken over by A at a loss of Rs. 10,000. Prepare Joint Venture A/c Joint Bank A/c and Co venture A/c. Pass Journal entries.
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TH
11. Ram and Rajiv entered into a Joint venture to construct a conference hall at a contract price of Rs.
3,00,000. Ram contributed Rs. 1,00,000 and Rajiv contributed Rs. 1,50,000. Ram brought in material worth Rs. 2,000 and Rajiv Paid transportation charges worth Rs. 6,000 Plant was purchased for Rs. 50,000 and material worth Rs. 2,00,000 were also purchased. On completion, plant was sold for Rs. 20,000. Due to certain defect, one bill of Rs. 20,000 was not recovered and the balance was received in cash. Venturers share profits in the ratio of their initial contributions. Prepare Joint Venture A/c, Joint Bank A/c and Co venturers A/c and pass Journal entries. 12. X and Y entered into a Joint Venture to construct a building for Rs. 4,00,000. Rs. 1,00,000 was to be received in shares. X contributed Rs. 1,50,000 and Y contributed Rs. 1,00,000. X brought in Plant of Rs. 30,000 and Y brought in mixture of Rs. 10,000. Following expenses were paid from Joint Bank A/c. Insurance Rs. 5000 wages Rs 10,000 and other expenses Rs. 5,000. Materials worth Rs. 2,10,000 were purchased on credit from Z. After contract was over X took over plant for Rs. 5,000. Y took back the mixture for Rs. 5,000. Materials (unused stock) was sold for Rs. 10,000. Contract price was received and Zs A/c was settled for Rs. 2, 00,000. They shared profit in the ratio of their initial contributions and shares were taken over by X at a profit of Rs. 5,000. Prepare Joint Venture A/c Joint Bank A/c Co venturers A/c. Also pass journal entries. 13. A and B entered into a joint venture to construct a building for Rs. 1,00,000. Both contributed Rs. 30,000 each. A brought in material of Rs. 5,000 and B brought in plant of Rs. 10,000. Material of Rs. 40,000 were purchased on credit from C. Insurance charges Rs. 500 and transportation cost Rs. 2,500 were paid from Joint Bank A/c. Settle Cs A/c by accepting a bill. After contract was over plant was depreciated by 30%, half of it was taken over by A at book value other half was sold for Rs. 2,000. Contract price was received in full. The bill was duly honoured. Prepare Joint venture A/c Joint Bank A/c and Co venturers A/c. Also pass journal entries. 14. A and B entered into a Joint Venture. They agreed to share profits and losses in the proportion of their initial contributions. They opened a Joint bank A/c. And deposited Rs. 1,50,000 out of which A deposited Rs. 1,00,000. Cash purchases worth Ts. 90,000 were made. They also paid Rs. 10,000 for other expenses. B was to be paid a remuneration of Rs. 4,000 for managing the business. At the end of the venture the sales amounted to Rs. 1,40,000 out of which Rs. 40,000 was sold on credit to C. B was also to be paid a commission of 5% on Sales. C was allowed a discount of 5% while receiving the payment from him. The unsold stock of goods amounting to Rs. 2,000 was taken over by A. the joint venture was closed. You are asked to prepare Joint Venture A/c Joint Bank A/c Co venturers A/.c. Also pass journal entries. 15. Rahul and Kunal entered in to a joint venture and both contributed Rs. 1,00,000 each. They decided to share profits and losses equally up to Rs. 20,000 and any further profits or losses would be shared in the ratio of 3:2. Cash purchases were Rs. 1,20,000 while credit purchases from Vivek amounted to Rs. 50,000. Rahul paid Rs. 5,000 for insurance while Kunal Paid Rs. 8,000 for transportation. All the goods were sold on credit to Arun for Rs. 1,70,000 who accepted a bill of exchange for the same. The bill was discounted with the bank at a discount of 5%. Kunal was to be given a commission of 2% on sales. Viveks A/c was settled for Rs. 48,000. The Joint venture was closed. Prepare Joint Venture A/c; Joint bank A/c; Co venturers A/c. Also pass journal entries. 16. A and B entered into a Joint venture. They contributed Rs. 75,000 each and purchases a plot of 6,000 sq. m. @ Rs. 20 per sq. m. Besides this A got the plat prepared for Rs. 2,000 and B paid the stamp duty of Rs. 3,000. Fencing expenses were Rs. 5,000 and other expenses amounting to Rs. 3,000 were paid from Joint Bank A/c Later on , 1/6th of the land was left over for roads and the balance was divided into 10 equal plots. 5 plots were sold for Rs. 30 per sq. m. and 4 plots were sold for Rs. 40 per sq. m. Remaining one plot was taken over by A for Rs. 10,000. Prepare Joint Venture A/c. Joint Bank A/c and Co Venturers A/c. Also pass the necessary Journal Entries.
17. Anik and Sridhar entered into a joint venture to deal in a certain plot of land. Both contributed Rs. 1,00,000 each towards the Joint Bank A/c. The plot which measured 12,000 sq. m. was purchased for Rs. 1,50,000. The various expenses amounted to Rs. 15,000. According to the plan, 3,000 sq. m. was used for roads and the remaining area was divided into 3 plots of 2,000 sq. m. each and 3 plots of 1,000 sq. m. each. The bigger plots were sold @ Rs. 18 per sq. m. each and the smaller plots @ Rs. 22 per sq. m. Anik was to get a commission of 3% on sale of big plots and Sridhar 5% on sale of the smaller plots. Their profit sharing ratio was equal. Prepare Joint Venture A/c Joint Bank A/c. and Co venturers A/c Also pass journal entries. 28 BOOK KEEPING & ACCOUNTANCY
H.S.C
OMTEX CLASSES
HOME WORK
6 YEAR
TH
18. Pramod and Amit jointly undertook to construct a factory building for a limited company. The contract price was Rs. 5, 00,000 and was received after work has been completed. They contributed_ Pramod Rs. 80,000 & Amit Rs. 40,000 and deposited in Joint Bank Account. They agreed to share profit or Loss in the capital ratio. Pramod got plans ready and paid Rs. 5, 000 for that Amit brought into the venture Plant and Machinery valued at Rs. 20, 000 and a motor truck at Rs. 16, 000. For the purpose of erection of factory building, materials of the value of Rs. 3, 50, 000 were purchased and wages paid Rs. 60, 000. They also paid other sundry expenses amounting to Rs. 25, 000. The contract was completed and the company settled their account fully. Uninsured Material valued at Rs. 4, 000 was taken over by Pramod. The plant and Machinery was sold as scrap for Rs. 3, 000 and Amit took back the motor truck at an agreed value of RS. 5000. You are required to show Joint venture A/c, Joint Bank A/c in the books of the Joint venture. 19. Raj and Dev entered into a Joint venture to prepare film for the Government which agrees to pay Rs. 2, 00, 000. A Bank account was opened in their joint names. Raj contributing Rs. 20, 000 and Dev Rs. 30, 000. They are to share the profits and losses in proportion of 2/5th and 3/5th respectively. Payments made out of Joint Banking Accounts were_ Purchase of Equipments Rs. 12, 000 Hire charges of Equipments Rs. 10, 000 Wages Rs. 90, 000 Materials Rs. 20, 000 Office Expenses Rs. 10, 000 Raj Paid Rs. 4, 000 for other expenses. The film was completed and the Government paid the amount by cheque. The joint venture was closed, Dev taking up equipment at a valuation of Rs. 6, 000. Show Joint venture A/c & Joint Bank A/c after the final distribution. 20. Raghu and Ramesh entered into a joint venture to produce an advertisement film for Bharati Traders, at a contract price of 40,000. Raghu contributed Rs. 10, 000 and Ramesh Rs. 20,000 and opened a joint account in the bank with these contributions. Raghu purchases from his own funds raw film for Rs. 8, 000 and a Camera for Rs. 7,000 for joint venture. They Paid from the Joint Bank Account: Artists fees Rs. 18, 000, Hire of sets Rs. 2,000 and technician Charges RS. 10,000. The firm was completed but due to certain defects in the firm, the contract Price was reduced by 10% the amount being received by cheque from Bharati Traders. At the end of venture, the camera was sold for Rs. 5,000 and Ramesh took over the unused film for Rs. 400. Raghu and Ramesh shared profit and losses in the proportion of 1:2 and settled account of the venture. Prepare the Joint venture Account the Joint Bank account and the accounts of the Co ventures. 21. Suratwala and Bodochwala entered into a joint venture to construct a bridge of Koyna river at a contract price of Rs. 7, 00, 000. Suratwala and Bodochwala introduced Rs. 1,50,000 and Rs. 1, 00, 000 and opened a joint account in the bank. Suratwala supplied material worth Rs. 60, 000 and Bodochwala brought a Motor Truck costing Rs. 50, 000. Total Material used amounted to Rs. 2,50,000; payment for wages Rs. 3,00,000 and other expenses amounted to Rs. 40,000. Suratwala took over unused material at Rs. 5, 000. Motor truck was sold as a scrap of Rs. 4,000 contract prices was received in full on completion of contract. Prepare Joint Venture A/c, Co- ventures accounts and Joint Bank Account. 22. Shri Nandkarni of Nanded and Shri Kulkarni of Kolhapur undertook in January 1983 the construction of Ajanta Market Hall for Rs. 5, 00, 000 to be completed within one year. On the same date Nandkarni brought in Rs. 5, 000 and Kulkarni brought Rs. 10,000. These amounts were deposited in a Joint Bank account which was newly opened by them for the purpose. Both agreed to share profits and losses equally. The work was completed in time and the following expenses were incurred and paid from Bank accounts, Material Rs. 2,30,000; Wages, Rs. 1,90,000 and Plant Rs. 40,000. The payments were received in instalments but due to certain defects a bill of Rs. 15,000 was not paid. When the work was over, as half of plant was taken over by Nandkarni @ 20% below while the other half could be sold for Rs. 15,000. Prepare: Joint venture A/c, Joint Bank A/c, Accounts of Co- ventures. 23. Doshi and Soman entered into a joint venture and agreed to share profits and losses in proportion of their initial contribution to the joint venture. They opened a joint bank account and deposited Rs. 60,000 and 40,000 respectively as initial contribution. They made cash purchases of Rs. 70,000 and paid Rs. 4,500 for Insurance and freight and Rs. 1750 for sundry expenses. At the end of the venture the sales amounted to Rs. 1, 10,000. The unsold stock of goods worth Rs. 5,000 was taken over by Soman. Prepare Joint venture A/c, and Joint Bank A/c assuming that Joint venture is closed and final settlement was made by the Co
ventures. 29 BOOK KEEPING & ACCOUNTANCY
H.S.C
OMTEX CLASSES
6 YEAR
TH
24. Latha and Kalai, entered into a joint venture. They agreed to share profits and losses in the proportion of their initial contribution to the joint venture. They opened a joint Bank account and deposited Rs. 60, 000 and 40,000 respectively as initial contribution. They made cash purchases of Rs. 70,000. They also paid Rs. 4,500 for insurance and freight and Rs. 1,750 for sundry expenses. At the end of the venture, the sales amounted to Rs. 1, 10,000. There was unsold stock of goods worth Rs. 5,000. Kalai took over the unsold stock. Prepare Joint Venture A/c, Joint Bank A/c and Co Ventures A/c. 25. Manoj and Ambalal enter into a joint venture to prepare a building for the government, who agrees to pay Rs. 2,00,000. A Bank Account is opened in their joint names; Manoj contributing Rs. 25,000 and Ambalal Rs. 25,000 and it is agreed that they will share the profit and losses in the proportion of 2/5 th and 3/5th respectively. Payment made out of the Joint Bank accounts were: Purchases of Equipments : Rs. 14,000 Hire Purchases of Equipments : Rs. 13,000 Wages : Rs. 85,000 Purchases of Materials : Rs. 18,000 Office expenses : Rs. 8,000 Manoj and Ambalal then paid Rs. 5, 000 and Rs. 3,000 respectively for other expenses. The building was completed the government paid the amount by cheque and the joint venture was closed. Ambalal taking up the equipments at Rs. 4,000 and Manoj taking up the unused material at Rs. 2, 000. Prepare Joint Venture A/c, Joint Bank A/c and Co-Ventures A/c. 26. Anand and Vijay entered into a joint venture and agreed to share profits and losses in the ratio 3:4 respectively. Anand contributed Rs. 10,000 and Vijay Rs. 8,000 which they deposited into a joint bank account. Goods worth Rs. 16,000 were purchased expenses of the venture amounted to Rs. 800. Goods were sold for Rs. 21,700. The account between the parties was duly settled. Pass journal entries and open the necessary ledger accounts. 27. Ram and Shyam entered into a Joint venture and under took a building construction contract of M/s Anand Traders Limited, Mumbai for Rs. 1,00,000. Ram brought in Rs. 25,000 and Shyam Rs. 15,000. They agreed to share profit and losses equally. They also agreed to accept contract amount Rs. 80,000 cash and 20,000 in the form of companys fully paid up shares. After the completion of work they received the amount other details are as under. Wages Rs. 40,000, Material Rs. 60,000. Ram supplied material for Rs. 5,500 and paid legal charges Rs. 1,500. Shyam paid labour charges for Rs. 4,000. Ram agreed to take all shares for Rs. 16,000 and Shyam took over material for Rs. 3,000 Draw Journal entries and write ledger A/c 28. Rajiv and Ashok enter into a joint venture as dealers in land and opened a joint Bank Account with Rs. 60, 000 forwards which Rajiv contributed Rs. 40, 000 and Ashok Rs. 20,000. They agree to share profits and losses in proportion to their cash contribution. They purchased a plot of Land measuring 5,000 sq. yards for Rs. 50,000. It was decided to sell the Land in smaller plots and a plan was got prepared at the cost of Rs. th 1,200. In the said plan 1/5 of the total area of the land was left over for public roads and the remaining land was divided into 8 plots of equal size. Out of 8 plots 3 plots were sold @ Rs. 15 per square yard and the remaining 5 plots were sold @ Rs. 14 per square yard. Expenses incurred in connection with the plots were registration expenses Rs. 4,000 stamp duty, Rs. 400. and other expenses Rs. 1,000. Allow 2% on the sale proceeds as commission to Rajiv. 29. Suresh Somani and Bhagwan Jambe of Gangapur entered into a joint venture to sell computers and share profits or loss in proportion of 1: 2 Suresh Somani contributes Rs. 5,00,000 and Bhagwan Jambe contributes Rs. 10,00,000. The amount was deposited in a joint Bank A/c. Suresh Somani bought 40 computers at Rs. 30,000 each and paid for them for the Joint Bank A/c. Freight and Insurance premium of Rs. 4,000 and Rs. 12,000 respectively were paid by Bhagwan form his private cash. 35 computers were sold at a price of Rs. 40,000 each 5 computers, which were damaged in transit, were repaired by Bhagwan Jambe at a cost of Rs. 5,000 from his private cash. They were finally sold by Bhagwan Jambe at Rs. 35,000 each and the proceeds were deposited in the Joint Bank A/c. Pass the Journal entries assuming that the joint venture is closed.
H.S.C
OMTEX CLASSES
6 YEAR
TH
30. Abuja and Saluja entered in a Joint Venture to purchase and sell plots. Abuja Contributed Rs. 4, 00, 000 and Saluja Rs. 2, 00, 000 and the amount was deposited into a joint Bank Account. The transactions of the venture were as follows. a. Purchased Land Rs. 2, 00, 000/b. Incurred development expenses Rs. 80, 000/c. Saluja paid registration fees Rs. 10, 000/d. th of land was sold at Rs. 3,05,000/e. The remaining land was taken over by Abuja at Rs. 80, 000/f. The accounts between co ventures were settled at the end of the joint venture. Pass Journal entries to record the above transactions. 31. Sanjay, Ajay & Vijay undertook the construction of a building at a contract price of Rs. 10,00,000 payable in cash Rs. 7,50,000 and in 15%debentures Rs. 2,50,000/a. They decided to share the profits and losses in the proportion to their initial contribution. They opened a joint Bank account where they have deposited the following initial amounts. Sanjay Rs. 4, 00,000, Ajay Rs. 3, 00,000, Vijay Rs. 2, 00,000. The following payments are made out through the Joint Bank Account. Purchase of Materials Rs. 2, 50,000 Purchase of Plant Rs. 45,000 Payment of Wages Rs. 77,000 Payment towards other charges Rs. 11,000 Sanjay brings in material of Rs. 40,000 Ajay brings in material of Rs. 55,000 Vijay brings mixer worth Rs. 10,000 At the close of venture, Sanjay took the unused material for Rs. 5,000. Ajay took over the mixer and plant for Rs. 27, 000/- The truck was sold in the market for Rs. 22,000. The contract price was received as per the agreement and Vijay agreed to take over the Debentures for Rs, 1,90,000. Prepare Joint venture A/c, Joint Bank A/c and Co Ventures A/c. 32. Girish, Manisha and Rajnish undertake the construction of an office building at a contract price of Rs. 8, 00,000. The contract price is to be received Rs. 6,00,000 in cash and Rs. 4,00,000 in fully paid shares of that company. They decide to share profits and losses equally. They opened a joint bank account and contributed the following amounts: Girish Rs. 2,00,000 Manish Rs. 2,00,000 Rajnish Rs. 1,00,000. Girish pays Rs. 10,000 as the fees of the Architect. Manish Brings into the venture Mixer worth Rs. 25,000. Rajnish brings into the venture the motor truck worth Rs. 55,000. The following expenses were made from the Joint Bank Accounts. Purchase of Materials Rs. 3, 50, 000,Purchase of Plant Rs. 30, 000, Freight and Wages Rs. 1, 50, 000. At the close of the venture, Girish took over the unused material worth Rs. 8,000; Manish took back mixer worth Rs. 15000 and Rajnish took back the truck worth Rs. 35,000. The scrap value of the plant was realised at Rs. 6,000. The contract price was received in full and Manish took over the shares at the value of Rs. 4, 10,000 Prepare the Joint venture A/c, Co Ventures A/c and Joint Bank A/c. 33. Sagar and Pankaj entered into a joint venture and undertook building construction of Patel and company Ltd., Bombay for Rs. 5, 00,000. They agreed to accept Rs. 1,00,000 in the form of shares of the company and balance to be received in cash. Sagar contributed Rs. 1,25,000 Pankaj contributed Rs. 75,000 and deposited the same in the joint bank account. Sagar supplied materials of Rs. 35,000 and Pankaj paid Rs. 20,000 for Architects fees. They paid from joint bank account for materials Rs. 2,80,000 and for wages Rs. 1,20,000. On completion of work, they received contract price as per the agreement. Sagar took ass the shares for Rs. 80,000 and Pankaj took over the unused material for Rs. 15,000 prepare joint venture, joint bank and co ventures accounts in the books of the Joint venture. 34. Ram, Bharat & Laxman undertook the construction of a Bridge at a contract price of Rs. 5,00,000 payable in cash Rs. 4,00,000 and in debentures Rs. 1,00,000. They decided to share the profits and losses in the proportion of their initial contribution. They opened a joint Bank account wherein they deposited they deposited the following amounts Ram; Rs. 2,00,000, Bharat; Rs. 2,00,000 & Laxman Rs. 1,00,000.The following payments are made through the Joint Bank Accounts, Purchases of cement Rs. 2,00,000. Purchases of Steel Rs. 50,000. Payment of wages Rs. 75,000. and other charges of Rs. 15,000 Ram brings truck of Rs. 60,000. Bharat brings materials of Rs. 80,000 and Laxman bring over the mixer worth Rs. 20,000.At the close of the venture, the unused materials were taken over by Ram for Rs. 10,000; Bharat took over the mixer and steel for Rs. 35,000. The truck was sold in the market for Rs. 40,000. The contract price was received as per the agreement and Laxman agreed to take over the debentures for Rs. 1,10,000.
H.S.C
OMTEX CLASSES
6 YEAR
TH
35. Harban Singh and Jogendra Singh entered into a Joint venture agreement to construct a modern building for Mehta trading co, Amaravati at a price of Rs. 2,00,000. This price was to be paid in cash Rs. 1,50,000 and Rs. 50,000 by the issue of preference shares of his renowned company. They opened a joint account with Punjab National Bank in which Harban Singh deposited Rs. 1, 00,000 and Jogendra Singh Rs. 75,000. They agreed to share profit and losses equally. Harban Singh paid Rs. 10,000 as architects fees for preparing plan of building. Jogendra Singh brought concrete mixer of Rs. 25,000. They paid Rs. 20,000 for Plant; Rs.50,000 for purchase of materials; Rs. 25,000 for wages and Rs. 20,000 for freight insurance and other charges. After the completion of contract, Harban Singh took over the unused material of Rs. 5,000 Jogendra Singh took back the concrete mixer at a valuation of Rs. 7,000. Harban Singh agreed to take over the preference share at S. 45,000. Prepare joint venture A/c, Joint Bank A/c and Coventurers A/c 36. Anand, Balaji & Maganlal jointly signed a contract to construct a bridge for ABC OIL Co., Ltd. The contract price was Rs. 7,00,000; Payable in cash Rs. 4,00,000 and Rs, 3,00,000 in debentures of the company at par. Anand, Balaji and Maganlal deposited Rs. 1,00,000 Rs. 50,000 and Rs. 50,000 respectively in the Joint Bank Account as their contributions. They are to distribute profit in the proportion of their contribution. Anand paid Rs. 5,000 for the blue prints of the Bridge. Balaji acquired the plant and equipments for Rs. 60,000 and paid for the same. Maganlal brought in vehicle worth Rs. 22,000. The construction material was purchased for Rs. 4,20,000. The salaries and wages paid amounted to Rs. 30,000. The miscellaneous expenses paid were Rs. 2,000. On completion of the construction of the bridge, the company settled the accounts as per the contract. At the end, the unused construction material was taken over by Anand for Rs. 5,000. The plant and equipment were deposited of for Rs. 40,000. The vehicle was taken over by Maganlal for Rs. 12,000. The debentures were taken over by Balaji at a discount of 10% . You are required to prepare: Joint Venture Account, Joint Bank account and Co Venture Account and debentures Account. 37. Sudhir and Narendra Signed a contract jointly to construct an office building for Abhay Enterprises Ltd. The contract price was Rs. 2,50,000. They opened a Joint Bank Account and deposited Rs. 1, 20,000 and th th Rs. 60,000 respectively. They agreed to share the profits and losses in the ration of 3/5 and 2/5 respectively. The following transaction was made from the Joint Bank Account. Wages Rs. 70,000 Materials purchased Rs. 1,25,000 Apart from the above transactions, Sudhir supplied material of Rs. 12,000 and Narendra paid the architects fees Rs. 2500. On completion of the construction, Abhay Enterprises Ltd. paid full amount. There was unused stock of materials which was taken over by Narendra at Rs. 15000. Prepare Joint Venture Account, Joint Bank Account and Co ventures Account.
H.S.C
OMTEX CLASSES 6 YEAR Method II: When no Separate set of Books is maintained.
TH
I.e. Individual Books of Accounts are maintained. 1. Abhay Kumar and Jaywant entered into a joint venture to share profits and losses in equal proportion. The following transactions were made: a. Abhay Kumar brought goods for Rs. 60,000/b. Abhay Kumar paid for expenses incurred on the above purchases Rs. 3,500/c. Jaywant supplied goods of Rs. 24,000 from the stock. d. Jaywant had to pay Rs. 600/- and Rs. 700/- for loading and freight respectively on supply of goods. e. Abhay Kumar paid Rs. 350/- and Rs. 250/- for warehousing charges and other expenses respectively. f. Abhay Kumar sold goods for Rs. 1,20,000/g. Jaywant sold goods for Rs. 10,000/h. The unsold stock of goods was taken over by Jaywant for Rs. 5,000/You are asked to prepare Joint Venture account and Co venturers A/c in the books of both the parties. Also pass journal entries. 2. A and B entered into a joint venture to sell carpets. A purchased 200 carpets at Rs. 20 each and B purchased 100 at Rs. 25 each. A paid transportation expenses Rs. 500 and also paid freight Rs. 200. B Paid advertising expenses Rs. 100. Later on A sold 150 carpets for Rs. 35 each and B sold 125 carpets for Rs. 30 each. Remaining 25 carpets were taken over by B for Rs. 500. Venturers settle their accounts. Pass journal entries and ledger accounts in both the books. 3. Humayun and Phiroz entered into a joint venture. They agreed to share the profits and losses equally. Following transactions were made by them. i. Humayun bought goods Rs. 90,000 ii. Phiroz paid for freight Rs. 7000 iii. Phiroz sold goods Rs. 75,000 iv. Phiroz paid commission on sales Rs. 2500 v. Humayun paid for warehousing charges Rs. 3500 vi. Humayun sold rest of the goods Rs. 45,000 vii. Humayun paid commission on sales Rs. 3500 You are asked to show as to how the above transactions will be entered in the books of Humayun and Phiroz and prepare journal entries. 4. Ramrao and Shamrao decided to undertake a business venture jointly. They agreed to share the profits and losses in the proportion of 2/3 and 1/3 respectively. Ramrao supplied goods for the joint venture worth Rs. 15,000 and paid Rs. 650 for carriage and freight. Shamrao supplied goods worth Rs. 12,000 and spent Rs. 500 for sundry expenses. Shamrao sold goods for Rs. 35,000. Shamrao is entitled to get a commission of 10% on sales as per agreement. Shamrao settled the account of Ramrao by remitting the amount due by bank draft. Open the necessary ledger account in the books of Ramrao and Shamrao and prepare journal entries. 5. East and West entered into a joint venture to share profits and losses in the ratio 2:1 to sell rice. East purchased 100 bags of rice at Rs. 200 each. He also paid packing charges Rs. 2000 and freight Rs. 300. West paid warehousing charges Rs. 1000 and sold all the bags for Rs. 300 each. He was entitled to a commission of 5% on sales. They settled their account by a draft. Prepare necessary ledger accounts and pass Journal entries also. 6. Kapil and Rohan entered into a joint venture to deal in computers. They agreed to share profits and losses in the ratio 3:2. Kapil purchased 20 computers @ Rs. 25,000 each and supplied 5 computers @ Rs. 20,000 each from his own shop while Rohan purchased 15 computers @ Rs. 24,000 each and got 5 computers from his godown @ Rs. 20,000 each. Kapil paid for the transportation charges amounting to Rs. 30,000 while Rohan paid for insurance and other charges totally amounting to Rs. 40,000. Finally all the computer were sold except 4 computers out of which both took back 2 computer each @ Rs. 17,000 each. Kapil sold 16 computers and Rohan sold the remaining computers. The selling price of each computer was Rs. 32,000 each. Both the venturers were to get 4% commission on the sales made by them. The venturers settle their accounts by a draft. You are required to prepare Joint venture A/c and Co Venturers account in the books of both the parties. Also pass journal entries in both books. 33 BOOK KEEPING & ACCOUNTANCY
H.S.C
OMTEX CLASSES
6 YEAR
TH
7. Jaganlal of Mumbai purchases cotton goods and supplied them to Babanlal of Delhi for sale on joint
venture basis. They have agreed to share the profits and losses equal proportion. Jaganlal bought goods worth Rs. 35,000/- and sent them to Babanlal in Delhi. Jaganlal paid Rs. 2500 towards the freight charges. Jaganlals bill of exchange for Rs. 20000 payable after 3 months drawn on Babanlal was accepted by Babanlal. Jaganlal discounted the same bill with bank for Rs. 18200. Babanlal informed Jaganlal that he had incurred Rs. 4500 expenses and the entire goods were sold for Rs. 50,000. Babanlal remitted the required amount to Jaganlal. You are required to prepare Joint venture A/c and Coventurers account in the books of both the parties. Also pass journal entries. 8. Satish and Ramesh enter into a joint venture to deal in TV. Sets. Satish is to purchase TV sets in Mumbai and sent it to Ramesh in Pune. They agreed to share profits and losses in the ratio of 3:1. Satish purchased 50 TV sets in Mumbai costing Rs. 7000 each and paid Rs. 10,000 as transportation cost. Ramesh received the consignment and sold all the TV sets at a lump sum price of Rs. 4, 45,000. Ramesh sent a draft of Rs. 75,000 to Satish as an advance. The expenses incurred by Ramesh were Rs. 6000 to sell the TC sets. Venturers settle their accounts. You are requested to open necessary ledger accounts in the books of both the parities. Also pass journal entries. 9. Mahesh and Kalpesh enter into a joint venture to share profits and losses in the proportion of 3:2. Mahesh paid Rs. 25,000 for purchases of goods and supplied goods of Rs. 3500 from his stock. Kalpesh made purchases of R. 78000 for the joint venture in addition to goods supplied from his godown worth Rs. 14000. Mahesh accepted a bill drawn by Kalpesh of Rs. 25000 which was discounted by Kalpesh for Rs. 24000 and the discount to be treated as an expense of the joint venture. Kalpesh also received Rs. 5000 cash as an advance from Mahesh. The expenses of the joint venture amounted to Rs. 10000 which were paid by Mahesh and Kalpesh equally. Mahesh sold goods amounting to Rs. 3000 and Kalpesh could sell goods worth Rs. 70000. The unsold goods were taken away by Mahesh for Rs. 4000. The Coventurers are entitled for a commission of 10% of sales made by them. Venturers settled their accounts by cheque. Prepare Joint venture account and coventurers account in the books of both the parties and also pass journal entries. a. Usha and Sulbha decided to undertake a venture jointly. They agreed to share profits and losses in the ratio of and respectively. Usha supplied from her own stock goods worth Rs. 90,000 and paid Rs. 3,600 for freight. Sulbha supplied goods worth Rs. 72,000 and spent Rs. 3,000 for sundry expenses. Usha drew a 4 months bill on Sulbha for Rs. 12,000 as an advance. The same was discounted by her at 15% p.a. and discount was charged to Joint Venture A/c. Sulbha sold all the goods for Rs. 2,10,000. At the end of the venture, the accounts were settled. Give journal entries in the books of Usha. b. Narayani and Indrayani entered into a joint venture to buy and sell second hand motor cars and agreed to share profits & losses equally. Narayani purchased two cars for Rs. 75,000 and Rs. 78,000 respectively, paid Rs. 4,000 for repairing these cars and sold them for Rs. 1,30,000 and Rs. 1,40,000 respectively. Indrayani purchased three cars for RS. 2,70,000 in all, incurred an expense of Rs. 4,000 for reconditioning these cars, sold two cars at a total price of Rs. 2,40,000 and took over the third car at an agreed price of Rs. 90,000. Prepare the Joint Venture A/c and the Co Ventures A/c in the books of
each party assuming that the accounts between the co ventures were settled by cheque. 10. Pritam of Sindhudurg and Prasad of Ratnagiri entered into a joint venture to consign 100 computers to Priti of Mumbai to sell at their joint risk which is in proportion of 2/3 and 1/3 respectively. Pritam supplied 55 computers at Rs. 25,000 each paying freight of Rs. 7,500 and other charges Rs. 1,500. Prasad suppled 45 computers at Rs. 24,000 each paying insurance Rs. 750, freight Rs. 350 and other charges Rs. 1,800. Pritam advanced to Prasad Rs. 25,000 on account of venture. All the computers were sold by Priti for Rs. 28,00,000 out of which she deducted 2% for her expenses and 2% for her commission on total sales. Priti remitted Rs. 13,00,000 to Pritam by bank draft and balance to Prasad by accepting a bil drawn by Prasad for one month. Pass Journal Entries in the books of Pritam assuming that all accounts have been finally settled. 11. Ramsingh of Rampur and Narsingh of Nagpur entered into Joint Venture. They decided to send 500 TV sets to Harsingh of Hyderabad on their joint risk. They share profits and losses in the ratio of 3/5 and 2/5 respectively. Ramsingh sent 300 sets at Rs. 2,500/- each and paid Rs. 17,000/- for the expenditure of sending the goods. Narsingh sent 200 TV sets at Rs, 2,000/- each and paid Rs. 13,000 for the expenditure of sending the goods. Ramsingh advanced to Narsingh Rs. 50,000/- on account of Joint Venture. All the TV sets were sold by Harsingh for Rs. 14,00,000/- from which he deducted 3% for his expenses and 2% commission on total sales and he remitted Rs. 10,00,000 to Ramsingh and the
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balance amount to Narsingh. The co venturers closed their venture and settled their accounts. Prepare: Joint Venture A/c, Narsingh A/c, Harsingh A/c in the books of Ramsingh. 12. Anil and Sunil entered in to a joint venture to consign 500 bales of cotton to Mukesh to be sold on their joint risk. Anil sends 150 bales at Rs. 300 each and pays Rs. 2000 for freight and insurance. Sunil purchases 350 bales at Rs. 250 each paying for insurance and other charges Rs. 4000. Anil advances a cheque of 12,000 to Sunil and also accepts a bill for the same amount drawn by Sunil which was discounted by Sunil@ 90% of its value. Mukesh sold all the bales @ Rs. 400 each. The expenses incurred by Mukesh are Rs. 5000 and his commission was 10% of the sales value. Mukesh remits Rs. 100000 to Sunil and the balance to Anil by a cheque. Venturers settle their accounts by a draft. Prepare joint ventures account and coventurers account in the books of both the parties and pass journal entries. 13. Nagpurkar of Warud and Warudkar of Akola entered into joint venture to sent oranges to M/s Modern Fruit Co., Amrutsar on their Joint risks for sale. They decided to share profits and losses equally. Nagpurkar purchased oranges of Rs. 2,40,000and paid for transportation, packing and insurance Rs. 70,000. Warudkar purchased oranges of Rs. 3,70,000 and paid for transportation, packing and insurance Rs. 1,00,000. All the oranges were sold by M/s Modern Fruit Co. For Rs. 10,00,000 from which company deducted Rs. 25,000 for expenses and 5% commission on sale proceeds and remitted Rs. 5,00,000 to Warudkar and remaining amount to Nagpurkar. The co ventures closed their venture and settled their accounts. Prepare Joint venture account, Warudkar account, M/s Modern Fruit co. Account in the books of Nagpurkar. 14. Arun of Solapur and Dhanaji of Sangli entered into Joint venture to send 100 bales of cotton to Shivaji of Mumbai to be sold at their equal joint risks. Arun sends 60 bales at Rs. 12,000 each and pays Rs. 18000 for freight and other charges. Dhanaji sends 40 bales at Rs. 11,000 each and pays Rs. 10,000 for freight and other charges. Shivaji sold all the bales of cotton at Rs. 15,00,000. He charges Rs. 10,000 as his commission and other expenses and remits the balance due fully to Dhanaji. Dhanaji settled account of Arun by remitting to him the balance due. You are required to prepare Joint venture account, Dhanaji account, Shivaji account in the books of Arun. 15. Akash, Sameer and Sidharth entered into a joint venture to buy and sell leather goods sharing profits and losses equally. Akash purchased and sent to Sidharth for selling 200 belts @ Rs. 90 each and 150 wallets @ Rs. 75 each. He spent Rs. 750 on transport. Sameer purchased 200 pouches @ Rs. 120 each, paid Rs. 1,000 for packing and transport and sent them to Sidharth. Sidharth sold al the leather goods at the total amount of Rs. 60,000. His selling expenses amounted to Rs. 1,100. Prepare Joint Venture Account, Sameer Account and Sidharth Account in the books of Akash presuming that Sidharth paid the amount due to both Sameer and Akash. 16. Methe and Mane decided to undertake the business jointly. They agreed to share the profits and losses in the ratio of and respectively. Methe supplied goods from his own stock for joint venture worth Rs. 4,50,000 and paid Rs. 15,000 for carriage and freight. Mane supplied goods worth Rs. 3,60,000 and spent Rs. 15,000 for sundry expenses. Methe drew a bill on Mane for Rs. 60,000 as an advance. Mane sold goods for Rs. 10,50,000. AT the end of venture the accounts were settled. Give Journal entries in the books of Methe. 17. Vithal of Bombay and Kailash of assai entered into Joint Venture to purchase and sell cycles. They decided to share profits and losses equally. Vitthal purchased 200 cycles at Rs. 500 each and spent Rs. 2000 for carriage, Rs. 4000 for insurance and draws a bill for Rs. 20000 on Kailash, which is duly accepted by Kailash. Kailash purchased 140 cycles at Rs. 600 each and spent Rs. 10 per cycles for carriage and Rs. 2000 for selling expenses. Vitthal sold 180 cycles at Rs. 750 each. All the remaining cycles of venture were sold by Kailash at Rs. 550 each. Joint venture was completed and both the parties settled their accounts. You are required to pass journal entries in the books of Vitthal. 18. Yashpal of Udgir and Balu of Latur entered into Joint Venture to consign 300 machines to Amol of Amravati to be sold on their joint risk which is in the proportion of 2:3 respectively. Yashpal sent 180 machines at Rs. 300 each and paid freight Rs. 700 and sundry expenses Rs. 300. Balu sent 120 machines at Rs. 250 each and paid for insurance Rs. 500 and carriage Rs. 500. Amold sold all the machines at Rs. 400 each. He spent Rs. 4,000 for advertisement and Rs. 1,000 for godown charges. Amol deducted 5% commission on sales and sent Rs. 80,000 to Yashpal and balance to Balu by bank draft. Prepare: Joint venture A/c, Balus A/c, Amols A/c in the ledger of Yashpal.
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CH. 5. SINGLE ENTRY SYSTEM [Q. 5: 10 MARKS]

Proprietary concerns
1. Rao commenced business on 1st April,06 with cash of Rs. 20,000. On 1st April Oct, 06; he
introduced a further capital of Rs.5,000 .During the year he with drew Rs.400 p.m. for personal use. On 31st march, 07 his asset and liabilities were:
Stock in trade 20,000 Debtor 15,000 Furniture 4,000 Cash at bank 3,000 Unpaid expense 1,000 Sundry creditors 8,000 Prepare closing statement of affairs and profit earned by Mr.Rao for the year ended 31/3/07. 2. The following info. Is available from Rajendras records: Particular 1.4.06 31.3.07 Creditor 5,000 8,000 Bank overdraft 15,000 Bank balance 10,000 Plant and machinery 10,000 20,000 Furniture 4,000 4,000 Debtors 30,000 52,000 Stock 34,000 28,000
Ram had withdrawn Rs.5000 for personal expenses and Rs. 4000 for sons marriage. Out of business funds, he had also purchased a residential building costing Rs.20000; which is not shown in the above balance. Additions to Machinery were made on 1/04/06. Dep. at 10 %p.a. should be provided on plant and machinery. Find out Rams net profit for the year ended 31st march 07.
3. On 01/04/06; Mr. Bannerjee commenced business with a capital of Rs.25,000. During the year 2006-07, he with drew for his personal use goods worth Rs.2, 000 and cash Rs.3,000. He also gave a donation of Rs. 500 to shri Ramakrishna mission. He paid Life Insurance premium of Rs.1000.During the year, he received a gift of Rs.5000 from his father by cheque which was deposited in the bank account of the business. On 31/3/07; his position was as under: Particulars RS Machinery 20,000 Furniture 2,000 Stock 5,000 Debtors 8,000 Balance at bank 1,500 Prepaid insurance 200 Payable to creditors 3,000 Liabilities for expenses 700 Find out the profit earned by him after providing for depreciation at %10 on plant and Machinery and furniture and Rs.400 as reserve for Doubtful Debt. Also prepare statement of affair as on 31.03.07
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4. Ash keeps her books on single entry & following information is disclosed. Particulars 31.3.06 31.3.07 Cash 18,000 27,000 Stock 15,000 18,750 Debtors 30,000 45,000 Furniture 7,500 7,500 Sundry creditors 26,250 31,500 Bills payable 9,000 Loan from y 3,000 Investments - 15,000 Miss Ash transferred Rs150 each month during first half year and Rs.100 each month for the remaining period from her business to her private banking account by way of drawing, and took away Rs.350 worth of goods for private use. She sold her private car for Rs.3, 500 and proceeds were utilised for business. Furniture to be depreciated by 10% and Reserve for Doubtful debts to be maintained at 5% on debtors. Prepare opening and closing statement of affairs and also profit and loss statement for the year ending 31/03/07. 5. Mr.Mukesh maintains single entry books of accounts. From the following details, determine profit for the year and statement of affairs at the end of year: Rs.1000 (cost) furniture was sold for Rs.5,000 on 1st April,06 ; 10% depreciation is to be charged on furniture . Mr.Mukesh has drawn Rs.1000 per month and Rs.2,000 was invested in 2006. Particulars 1.04.06 31.3.07 Stock 40,000 60,000 Debtors 30,000 40,000 Cash 2,000 1,000 Bank 10,000 5,000( O. D ) Creditors 15,000 25,000 Outstanding expenses 5,000 8,000 Furniture(cost) 3,000 2,000 st Bank balance on 1 April 06 is as per cash book, but the bank overdraft on 31.03.07 is as per bank statement. Rs2,000 cheques drawn in March 07 have not been en cashed with in the year. Provide interest on Drawing @ 10%p.a. 6. Mr. Ganesh keeps his books by single entry method. His financial position on 1.01.03 and 1.1.04 was as under. Particulars 1.1.04 31.12.04 Cash 10,000 16,000 Bank 20,000 36,000 Stock 16,000 24,000 Debtors 24,000 30,000 Creditors 15,000 18,000 Plant and machinery 60,000 90,000 Furniture and fitting 18,000 18,000 During the year Mr.Ganesh withdrew Rs.8,000 for his private purpose and he had used 2,000 worth of stock also for his private purpose. On 1.10.03 he sold some of his house hold furniture for Rs.2,000 and paid this amount into his Bank A/c of business. Prepare a statement of profit & loss for the year ended 31.12.04 and a statement of affairs after taking into consideration the following: 1. Provide interest on capital @ 5% p.a on opening balance and Interest on drawing ( only on cash drawings) @10% p.a. (on an average of 6 months)
2. Depreciate plant and machinery @10 %(assuming addition were made on 1.10.04) and furniture at 5%
3. stock on 31.12.04 was overvalued by Rs.2,000 4. Write off bad debts Rs.2,000 and provide Reserve for Doubtful debts at 7.5% on debtors 37 BOOK KEEPING & ACCOUNTANCY
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7. Mohan keeps his books under single entry system. Prepare: Statement of affair as an 31.12.00 &
31.12.01. Statement of profit/loss for the year ending 31.12.01. He gives the following information: Particulars 31.12.01 31.12.00 Bank balance 4,500 Cr. 1,000 Dr Stock 12,000 15,000 Debtors 9,300 10,400 Furniture 9,600 9,600 Creditors 10,900 14,300 Loose tool 2,700 2,700 Outstanding salary 1,000 1,500 Prepaid insurance 300 200 Add information: 1.He has withdrawn from business Rs 2,500 of which he spent Rs2,000 For investing in securities in the name of the business. 2. Provide depreciation at 20% on loose tools and 7% on furniture.
8. Premjeet a trader keeps his books by the single entry Method. His financial position on 1st April 06 and 31.3.07 were as follows: Particulars 1.04.06 31.03.07 Cash in hand 1,500 1,600 Bank balance 1,200(Dr.) 1,800(Cr.) Stock in trade 4,000 4,650 Debtors 3,400 3,800 Creditors 2,400 3,600 Plant and machinery 6,000 8,000 Furniture 1,200 1,600 During the year, Sri Premjeet had withdrawn Rs.75 per month for his household use. From the above information ascertain his profit or loss for the year ended and also give his statement of affairs as on 31.03.07 after taking into account the following further information: 1. Depreciate plant and machinery by 15% and furniture by 121/2% p.a(assume the addition on 30th
September,2006)
2. Of the debtors Rs100 are bad and to be written off. 3. Create a reserve for Discount on Debtors at 2% and a reserve for Doubtful debts at 5%. 4. Allow interest on capital at 5% and charge interest on Drawing at 6%p.a 9. Mr.Gopal maintained his books on single entry. The following statement of affairs had been Prepared as on
31.03.06 Amt 2,075 4,940 9,673 15,550 1,082 33,320 33,320 On 31.03.07 it was learnt that he had introduced further capital of Rs1,000 on 1 st july,06 and he drawn Rs1,580 on various dates during the year. It was also ascertained that the proprietor had taken Rs.75 worth of goods for his own use. Statement prepared on the same date disclosed that book debts were Rs.14,640, Creditors were Rs.2,309 and Bills payable were Rs.1,775. The stock was valued at Rs.11,417 and cash in hand amounted Rs.917 on the same date. Prepare: 1. Statement of profit for the year 06-07 Liabilities Capital account Sundry creditors Bill payable Amt 28,000 3,170 2,150 Asset Leasehold land Plant and Machinery Stock in trade Book debts Cash in hand
2. Statement of affairs as on 31.03.07 taking in to consideration the following:

5% Reserve to be created on Book debts. 5% Depreciation to be written off on plant and machinery. Rs.125 to be written off the lease. Interest at 5% p.a to be provide on the capital.
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Partner ship firm

10. Rose and Jack is partner in a firm sharing profit and losses in the proportion of 3:2. They keep their books on the single entry system. On 31/03/06 the following statement of affairs was extracted from their books: Liabilities Amt Assets Amt Capital Account: Plant and machinery 30,000 Rose 25,000 Stock 20,000 Jack 20,000 Sundry debtors 35,000 Loan jack 25,000 Cash at bank 15,000 Sundry creditors 30,000 On 31/03/07 their asset and liabilities were : Debtors Rs.40,000 , Creditors Rs.25,000 , plant and machinery Rs 50,000 (Addition to plant and machinery was on 01/07/07) stock Rs 30,000 , Bills receivable Rs.5,000 , cash at bank Rs.25,000 , Loan jack Rs. 25,000. st Prepare a profit and loss statement for the year ended 31 march07 and a statement as at that date after taking into consideration the following: 1. Plant and machinery is to be depreciated by 10% p.a 2. Stock is to be reduced to Rs.25, 000 3. A provision for Bad Debts to be raised at 5% on sundry debtors. 4. Interest on loan is to be allowed at 6% p.a 5. During the period Rose and Jack draw Rs 5,000 and Rs3,00 respectively. 11. X and Y are carrying on business in partnership sharing profit and losses equally. They were unable to maintain full and complete records. From the following available information, compute the profit of the firm and prepare a balance sheet: Particulars 1.04.06 31.03.07 Land and Building (cost) 50,000 50,000 Machinery (cost) 60,000 75,000 Furniture(cost) 20,000 25,000 Stock 12,000 30,000 Debtors 17,000 22,000 Bank 4,900 5,000 Cash 1,100 5,000 Prepaid insurance Premium 5,000 Bills Receivable 8,000 Creditors 60,000 50,000 Bills payable 10,000 At the beginning of the year, the capitals of the partner were equal. During the year, X brought in Rs.15, 000 and Y has withdrawn Rs.5, 000. An insurance policy matured during the year for Rs10, 000. A sum of Rs4, 000 has become bad out of debtors. Provision has to be made for depreciation @ 10% on land & building, Machinery and furniture. 12. Naresh, Ramesh and Dinesh are partners in a firm sharing profit and losses in the ratio 5 :3 : 2 respectively. They kept their books on the single entry system. . On 31st march 06; the following statement of affair are extracted from their books: Liabilities Amt Asset Amt Creditors 20,000 Plant 45,000 Ramesh loan A/c 10,000 Land and building 30,000 Capital: Stock 20,000 Naresh 50,000 Debtors 15,000 Ramesh 40,000 Cash 8,000 Capital Dinesh 2,000 1,20,000 1,20,000 On 31/03/07 the asset and liabilities were as follows. Plant Rs50,000 ; land and building Rs30,000 ; Stock Rs30,000 , Debtors Rs25,000 , Creditors Rs25,000 ,Cash Rs15,000. Prepare a profit and loss statement for the year ended 31st march 07 and a statement of affairs as at date after taking into consideration the following additional information:
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plant is to depreciated by 10% p.a(addition was as on 31/09/07) A Reserve for bad debts is to raised at 2.5% Interest on partners capital is to be allowed at % p.a During 06-07, Naresh and Ramesh withdrew from the business Rs7,500 and Rs5,000 respectively .
13. Ajay and Babita are in partnership sharing profit and losses in 2/3 and1/3 respectively. The books are kept on the single entry system and their statement of affairs dated 31st March 06 showed their position to be as follows: Statement of affairs of Ajay and Babita as at 31st march 06 Liabilities Amt Asset Amt Capital Freehold building 6,000 Ajay 10,000 Plant and machinery 2,000 Babita 4,000 Office furniture 500 Creditors 5,000 Stock 4,000 Loan 1,000 Debtors 6,000 Bill payable 500 Bills receivable 1,500 Cash 500 20,500 20,500 On 31st March 07 the books disclosed the following facts: Debtors Rs8, 000. Creditors on open account Rs 8,500. Creditors for loan Rs 1,600 and cash Rs 800. The stock was valued at Rs4, 200 and bills receivable amounted Rs 1,400. An examination of the cash book showed that during the year, Ajay had drawn on account of profit Rs 1,500 and Babita Rs600. Ajay had ,in addition withdrawn Rs2,000 from his capital account on 30th June 07. The partners agree to reduce the existing valuation of the plant and machinery by 5% and the office furniture by 10% by way of depreciation. Charge 5% by way of interest of interest on capital and 2% interest on drawing Kindly draw: 1. A statement of profit ,dividing the balance between Ajay and babita 2. A statement of affairs, showing the position as at 31st march 07. 14. The following is the balance sheet of M/s A, B, and C as on 31st march 06: Liabilities Amt Sundry creditors 12,600 Bills payable 8,4000 Capital A/c A 45,000 B 30,000 C 15,000 90,000 Current A/c A 1,440 B 1,020 2,460 1,13,460 Asset Amt Cash in hand 1,200 Cash at bank 11,400 Sundry debtors 25,200 Stock 20,100 Furniture 6,000 Plant and machinery 48,000 Current A/c - C 1,560
1,13,460
A, B and C share profit and losses in the ration of 3:2:1 after charging interest on capital at 5%p.a. During 07, the monthly drawing on the partners were: A-1,200 , B-900,C-750. On 31st march 07, the asset and liabilities of the firm were : Cash in hand Rs.900; stock Rs 30,600; Plant and machinery Rs 75,000; Bill payable Rs7,200; sundry debtors Rs 28,800 , Furniture Rs5,400 , sundry creditors Rs 10,200 and Bank overdraft Rs 18,000. You are asked to: 1. Ascertain the profit or loss made by the firm as on 31/03/07 2. Show the Balance sheet of the firm 31.03.07
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15. The books of P and S are kept on the single entry system and the profit and losses are shared as to 2/3 and 1/3 respectively. Their capital were also in profit sharing proportion on 31stmarch 07. The position of affair on 31st march 07 was as a follows: Creditors Rs 6,250, loan Rs 1,500 , Bills payable Rs 750 ,Building Rs7,000, Machinery and plant Rs 1,500, Furniture Rs 500 , stock Rs 3,500, sundry Debtors Rs7,000, Bills receivable Rs 550 , cash Rs 450. At 31st march 08 the following figures were extracted : Debtors Rs 6,500, Creditors Rs.5,000 , cash Rs 650 , Stock Rs4,350 , Bills Receivable Rs.400, Mortgage Rs2,600 , Drawing on account of profit : P- Rs600 , S- Rs200. P also withdraws Rs 1,000 Capital on 31stoct 07.Allow 10% per annum depreciation both on machinery and furniture and 5% p.a interest on capital . Each partner is entitled to salary of 500 p.a. Show the statement of affairs on 31st march 07 and on31st march 08 and statement of profit earned during the year . 16. Priya and Supriya are equal partners, who maintain their books under single entry. Their position as on 1st April 02 are as follows: Liabilities Amt Asset Amt Capitals : Plant 1,60,000 Priya 2,00,000 Furniture 10,000 Supriya 1,20,000 Stock 67,600 Creditors 40,000 Debtors 97,300 Bills payable 12,400 Bills receivable 9,200 Cash 540 Bank 27,760 3,72,400 3,72,400
On 31st march 03 their statement of affairs was as follows : Cash Rs.800 , Bank Rs 31,600 , Creditors Rs 42,400 , Stock Rs 73,400 , Debtors Rs 1,32,600, Bills payable Rs 1,200, Bills receivable Rs 17,600 . Plant and Furniture are to be depreciated by 10% From the debtors Rs 4,600 are considered irrecoverable and R.D.D at 5% is to be created. An amount of Rs1,600 is to be set aside from bills receivable. Priya and Supriya have withdrawn Rs20,000 and Rs 16,000 for their personal use. Interest at 5% on the opening balances of partners capital is to be. st Prepare : statement of affairs as on 31 March 02 and statement of profit and loss for the year ending 31.03.03
17. A and B are partners in a firm sharing profits and losses as A 60% and B 40%. The statement of affairs as at 31st March 06 was given below : Liabilities Amt Assets Amt Creditors 20,000 Plant 40,000 As loan account 20,000 Land and building 20,000 Capital : Stock 30,000 A 50,000 Debtors 20,000 B 30,000 80,000 Cash 10,000 1,20,000 1,20,000 The partners keep their books by single Entry system. On 31st March 2007 ; the position of the business was as follows : Plant Rs 50,000 , Land and Building Rs 20,000 , Stock Rs 40,000 ,Debtors Rs 25,000; Creditors Rs 25,000 ; cash Rs 20,000. You are required to ascertain the amount of the firms Profit or loss for the year ended 31 st March 07 and a statement of affairs as on that date after taking into consideration the following
1. 2. 3. 4. 5. Depreciate plant @ 10% p.a including additions. On 1st January,2007 ; A increased his loan by Rs 10,000 in order to pay for additional machinery which was installed on the same day. Interest on loan is to be allowed @6% p.a. During the year A and B drew Rs 12,000 and Rs 9,000 respectively. Provide interest on capital @ 5% p.a and interest on Drawing @10% p.a(on an average for 6M)
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18. A, B, and C were in partnership and towards the end of 2004 most of their books and records were destroyed in a fire. The balance sheet as on 31st March 2003 was as follows: Liabilities Amt Assets Amt Creditors 5,500 Cash 2,400 Debtors 3,600 Capital A 4,500 Stock 6,500 B 3,000 Machinery 1,440 C 1,500 Fixtures and Fittings 600 Advance payment 35 Current account A 145 Current Account B 100 C 170 14,745 14,745 The partners drawing in 2004 have been proved at A Rs.1,400, B Rs.1,000 and C Rs650. On 31st March, 2004, cash Rs 3,200 , Debtors Rs 4,025 ; Stock Rs 5,900 Advance payment Rs 25, and creditors Rs 6,040 . Machinery is to be depreciated by 10 % per annum and Fixtures and fittings at 7% 5% interest is to be allowed on capitals. The partners share profits in proportions of , 1/3 and 1/6 respectively. Prepare a statement showing net profit for the year 2004 and the division of the same between the partners, together with the balance sheet as on 31st march 2004
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CH. 6. FINAL ACCOUNTS OF NPO

[NOT FOR PROFIT ORGANISATION]
[Q. 6: 16 MARKS]
1. From the following Receipts and payments account of Western Gymkhana for the year ended 31 st March, 2007 and other information, prepare Income and Expenditure account for the year ended on and a Balance Sheet as at that date.
Receipts Amount Payments Amount To Balance B/F 1,040 By salaries 1300 T Subscriptions for: By Entertainment Expenses 645 2006 85 By Electric charges 234 2007 4000 By General Expenses 350 2008 103 By Rates and Taxes 120 To Donations 1200 By Investments 3000 To Entertainment Receipts 876 By Stationery and Printing 241 To Interest 81 By Expenses of 2006 600 To Entrance Fees 1000 By Fixed Deposit 1000 By Balance c/f 895 8385 8385
The Gymkhana has 450 members paying an annual subscription of Rs. 10/- each. Rs. 20/- is still in arrears
towards subscription for the year 2006 carry forward Rs. 20/- or rates paid in advance. Provide Rs. 200/- for salaries outstanding. The Gymkhana owns Land and Building standing in the books of Rs. 15,000/- and Furniture standing at Rs. 1,150, on which depreciation at 5% and 15% respectively is to be written off. Interest for 3 months at 12% p.a. is accrued on Investments. The Capital Fund as on 1st April, 2006 was Rs. 16,695/- 50% of the Entrance Fees is to be capitalised. Donations are capitalised.
2. From the following Receipts and Payments Account of a charitable Institution and other additional information supplied to you, prepare an Income and Expenditure account for the year ended 31st March, 2007.
Receipts and Payments A/c For the year ended 31st March , 2007
Receipts To Balance b/d Cash in hand Cash in deposit A/c Cash in Current A/c To Donations To Subscriptions To Endowment Fund Receipts To Legacies To Interest on Investments To Interest on Deposits To Sale of Old Furniture
Amount 150 2500 1200 4000 2000 16000 8000 8000 200 50 42100
Payments By Charities By Salaries By Rent and Taxes By Printing & Stationery By Postage By Advertisements By Purchase of Furniture By Investments By Advance against contract for extension of premises By Balance c/d Cash in hand Cash in Deposit A/c Cash in Current A/c
Amount 8500 2500 1300 400 150 350 850 16000 2500
1050 6000 2500 42100
Adjustments:
1. 2. 3. 4. Treat 50% of donations and legacies received as income. Outstanding rent for the year Rs. 300. Salaries unpaid fro the year amounted to Rs. 500. Interest on investments due but not received Rs. 500.
H.S.C
OMTEX CLASSES
6 YEAR
TH
3. The following is the Receipts and Payments Account of Pensioners Association for the year ending 31st March, 2007. Receipts & Payments A/c For the year ending 31st March, 2007.
Receipts Amount Payments Amount To Balance: 1.4.2006 1500 By Travelling Expenses 2000 To Entrance Fees 375 By Stationery 1500 To Subscriptions: By salaries 3700 2005 06 200 By wages 8000 2006 07 15000 By repairs 1250 2007 08 700 By interest 470 To special subscription for Chairmans Party 3250 By Balance 31.3.2007 4105 21025 21025
Stationery expenses include Rs. 300 for the year 2006 07. Similarly, salary for the month of March 2007 Rs. 700 is yet not paid. Subscription unpaid for the current year is Rs. 300. Special subscription for the Chairmans party Rs. 100 is yet outstanding. From the above information, you are requested to make out an Income and Expenditure Account of the Association for the year ending 31st March, 2007.
4. Receipts & Payments A/c for the year ended 31st March, 2007. Receipts Amount Payments To Subscriptions 1100 By Salaries To Bar Receipts 600 By Printing & Stationery To Interest on Securities 150 By Telephone To Cricket Fees 250 By Gardening To Tennis Fees 300 By Cricket To Billiard Fees 250 By Insurance To Life Members Fees 2000 By Tennis To Donations 24800 By Billiards To Entrance Fees 3000 By Bar Expenses To Tournament Fund 1000 Bu Investments By Land and Building By Tournament Expenses By Furniture By sports Material By Current A/c Balance By Cash in hand 33450
Additional Information
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Amount 1000 100 150 120 200 100 300 400 1200 5000 20000 1000 1200 1000 1000 680 33450
Subscriptions outstanding for the year Rs. 550 Subscriptions of Rs. 100 were received in advance. Salaries unpaid fro 2007 amounted to Rs. 200 Insurance prepaid Rs. 50 Half of the entrance fees received was to be capitalised. Donations and Life members fees were to be capitalised. Interest due but not received Rs. 100. Sports Materials were valued at Rs. 800 Depreciate furniture by 5% and land and building by 2 %. From the above information, prepare an Income and Expenditure account for the year ended 31st March, 2007.
H.S.C
5.
OMTEX CLASSES
6 YEAR
TH
From the following information, prepare Income and Expenditure account for the year ended 31st March, 2008 and a Balance Sheet as on that date.
Receipts To Cash in hand (1.4.2007) To Subscriptions 2006 07 2007 08 2008 09 To proceeds from Drama To Entrance Fees To Interest on Securities To sale of Old Furniture
Amount Payments Amount 1750 By Bank Overdraft 2500 By Salaries 5300 150 By Furniture 2000 14100 By Investments in Securities 4000 75 By Printing and Stationery 800 2500 By Cost of Staging drama 1500 800 By Sundry Expenses 1300 500 By Cash at Bank 2500 200 By Cash in Hand 175 20075 20075
1. The society has 1500 members, each paying an annual subscription of Rs. 12. 2. Subscriptions of Rs. 100 pertaining to the year 2006 07 are still in arrears.
3. Value of Stationery at hand on 31st March, 2007 was Rs. 200 and on 31st March, 2008 was Rs. 150.
4. 5. 6. 7.
6.
Entrance fees are to be treated as Capital receipts. Salary of Rs. 700 for the current year is unpaid. Balances as on 31st March, 2007: Investment Rs. 4500, Building Rs. 25000, Furniture Rs. 200. Depreciate building by 2 % and furniture by 5%.
Dr. Narendra commenced practice in the month of April 2007. He prepared the following Receipts & Payments Account for the year ended 31st March, 2008. Receipts and Payments A/c For the year ended 31st March, 2008
Receipts Amount Payments Amount To Cash 10000 By Furniture 1500 To Visits 7000 By Equipment 2500 To Sundry Receipts 400 By Drugs 2000 By Salaries 1000 By Rent 500 By conveyance 700 By Stationery 100 By Lighting 125 By periodicals 100 By Drawings 4375 By Balance c/d 4500 17400 17400
1. 2. 3. 4. 5. 6. Rs 200 were to be received on account of visits. Unpaid Salaries Rs. 200 60% of conveyance is for private purposes. Value of drugs on hand was estimated at Rs. 1,000. Depreciate furniture and equipment by 10% Prepare Income and Expenditure account and balance sheet.
H.S.C
OMTEX CLASSES
Receipts To Balance b/d To donations To Subscriptions: 2006 07 2007 08 2008 09 To Entrance Fees To Interest on Investments
6 YEAR
TH
7. From the following information, prepare Income and Expenditure account for the year ended 31st march, 2008 and a Balance Sheet as on that date.
Amount Payments Amount 3500 By Salaries 1500 2007 08 250 2008 09 2250 250 By Rent 4300 3500 By Postage 300 750 By Printing & Stationery 3000 1000 By Balance c/d 2400 2000 12500 12500
1. 2. 3. 4.
Salaries unpaid Rs. 250. Printing unpaid includes Rs. 600. Printing paid includes Rs. 500 pertaining to the previous year. Subscriptions outstanding Rs. 650 Balance on 1st April, 2007: Furniture Rs. 6000, Investments Rs. 50,000, Buildings Rs. 20,000.
8. The following is the Receipts and payments account of the Smart club in respect of the year ending 31st March, 2007: Receipts and Payments account for the year ended 31st March, 2007
Receipts To opening Balance To Subscriptions: 2005 06 2006 07 2007 08 To Sports Meeting Surplus To Interest on Investments
Amount Payments 2050 By Salaries By Printing & Stationery 80 By Rates and Taxes 4220 By Telephone 160 By Purchase of 4% Govt. Securities at par on 3100 31st march 2007. By sundry Expenses 2000 By Balance at close 11610
Amount 4160 800 1200 200 2500 1850 900 11610
In addition to the information contained in the above account, the following additional facts are ascertained. 1. There are 450 members each paying an annual subscription of Rs. 10, Rs. 90 being in arrears for 2006 at the beginning of 2007. 2. Stock of stationery at 31st March, 2006, was Rs. 100/- and at 31st March, 2007 Rs. 180. 3. At 31st March, 2007 the rates were prepaid up to the following 30th June, the yearly charge being Rs. 1,200/- A quarters charge for telephone Rs. 70/- is outstanding. Sundry expenses outstanding on 31st March, 2006 were Rs. 140/4. On 31st March, 2006; the Building stood in the books at Rs. 20,000 and it is required to write of depreciation at 5% per annum. Investments at 31st March were Rs. 40,000. You are required to prepare an Income and Expenditure account for the year ended 31 st March, 2007 and Balance sheet as at that date.
H.S.C
OMTEX CLASSES
6 YEAR
TH
9. From the following information relating to Thane Cricket Association, prepare the income & Expenditure account for the year ended 31st March, 2008 and the Balance sheet at that date. The following is the abstract from the Cash book of the year.
Receipts Amount Payments Amount To Members subscriptions 1000 By Tournaments Expenses 1800 To Members admission Fees 300 By Maintenance charges of ground 1500 To Miscellaneous Receipts 400 By Rates and Insurance 600 To Hire of Ground 1000 By Telephone Charges 150 To subscription Fee for Tournaments 3000 By printing and Stationery 300 To Cash drawn from Bank 6000 By General charges 500 To Donations for instituting a prize. 10000 By Honorarium to Secretary 1300 By Fixed Deposit in Bank 6000 By Investment 9550 By Sports equipment 2000 By payment into Bank 7000 30700 30700
Assets on 1st April, 2007 were: Sports and Equipments Rs. 3000; Cash at bank Rs. 6000; Prepaid Insurance Rs. 200; Subscription due to the association Rs. 600; Liabilities on 1s April, 2007 were Printing and Stationery Rs. 100; Honorarium to Secretary Rs. 100; You are furnished the following further information. Donations of Rs. 10,000 should be kept in a separate account. Subscription received for the year 2008 09 are Rs. 1,000/- while subscriptions outstanding on 31st March, 2008 was Rs. 400/Investments are of the face value of Rs. 10, 000/ - and were purchased on 1st October. 2007. Interest thereon at 12% per annum has accrued due. Write off 50% of Sports Equipment, Prepaid Insurance amounts to Rs. 250/- and the Secretary is to be given a bonus of Rs. 500/-.
10. From the following Receipts and payments account of a Credit Club and the subjoined information, prepare Income and Expenditure Account for the year ended 31st March, 2007. Receipts and payments A/c
Receipts To Balance Cash To Current A/c With Bank To Foxed Deposit at 6% To Membership Subscription (Including Rs. 600 for 2006) To Entrance Fees To Donation To Interest on Fixed Deposit To Tournament Fund To Sale of Crockery (Book value Rs. 120)
Amount 352 2738 3000 4000 275 501 90 2000 200
Payments By Crockery Purchases By Maintenance By Match Expenses By Salaries By conveyance By Upkeep of Lawn By Postage Stamps By Purchase of Cricket Goods By Sundries By investments By Tournaments Expenses By Balance : Cash in Hand Current A/c By Fixed Deposit
Amount 265 682 1324 1100 82 424 105 972 200 570 1880
13156
220 2332 3000 13156

47
BOOK KEEPING & ACCOUNTANCY
H.S.C
Additional Information:
1. 2. 3. 4.
OMTEX CLASSES
6 YEAR
TH
Monthly Salary is Rs. 100. st st The value of unused postage stamps is as follows: 31 March, 2006 Rs. 75; 31 March, 2007 Rs. 90. Stock of Cricket Equipment are as follows:31st March, 2006 Rs. 321; 31st March, 2007Rs. 280. st st Arrears of Membership Subscriptions: 31 March, 2006 Rs. 660; 31 March, 2007 Rs. 800.
11. The following is the Receipts and payments Account of Madras Junior Club for the year ended 31st March, 2007.
Receipts To Balance at bank of 1.4.2006 To Entrance Fees To subscriptions: 2006 2007 2008 To Sale of Investments To Loan Taken from Krishnaswamy on 1.10.2006 at 10% interest p.a.
Amount Payments 1020 By Salaries 1000 By Rent By Electricity 250 By Postage and Stationery 3050 By Insurance Premium 350 By General Expenses 7500 By Part Payment on account 2000 of new furniture. By Balance at Bank. 15170
Amount 4160 1860 1280 330 180 460 4500 2400 15170
The following information is also available Particulars 31.3.2006 31.3.2007 Rent Due Rs. 180 Rs. 360 Electricity Rs.640 Rs. 200 Subscriptions due Rs.250 Rs. 400 Insurance paid in advance Rs.50 Rs. 70 The cost of the investments sold was Rs. 5000. The surplus is to be treated as income. Furniture was valued at Rs. 3000 on 31st March, 2006. On 30th September, 2006; he club purchased additional new furniture at a cost of Rs. 5,200. Depreciation at the rate of 10% is to be provided on all furniture. The entrance fees are not be capitalised. Prepare an Income and Expenditure account for the year ended 31st March, 2007. 12. From the following information, prepare Income and Expenditure account for the year ended 31 st March, 2008 and a Balance Sheet as on that date.
Receipts To Cash in hand (1.4.2007) To Subscriptions 2006 07 2007 08 2008 09 To proceeds from Drama To Entrance Fees To Interest on Securities To sale of Old Furniture
Amount Payments Amount 1775 By Bank Overdraft 2300 By Salaries 5500 150 By Furniture 2000 14100 By Investments in Securities 4000 75 By Printing and Stationery 1000 2500 By Cost of Staging drama 1300 800 By Sundry Expenses 1300 500 By Cash at Bank 2500 200 By Cash in Hand 200 20100 20100
1. The society has 1800 members, each paying an annual subscription of Rs. 10. 2. Subscriptions of Rs. 200 pertaining to the year 2006 07 are still in arrears. 3. Value of Stationery at hand on 31st March, 2007 was Rs. 100 and on 31st March, 2008 was Rs. 150. 48 BOOK KEEPING & ACCOUNTANCY
H.S.C
4. 5. 6. 7.
OMTEX CLASSES
6 YEAR
TH
50% of Entrance Fees are to be treated as Capital receipts. Salary of Rs. 700 for the current year is unpaid. Balances as on 31st March, 2007: Investment Rs. 5000, Building Rs. 25000, Furniture Rs. 200. Depreciate building by 10 % and furniture by 5%.
13. From the following information, prepare Income and Expenditure account for the year ended 31st
March, 2008 and a Balance Sheet as on that date.
Receipts Amount Payments Amount To Cash in hand (1.4.2007) 2000 By Bank Overdraft 2300 To Subscriptions By Salaries 6000 2006 07 150 By Furniture 2500 2007 08 14100 By Investments in Securities 3000 2008 09 75 By Printing and Stationery 1000 To proceeds from Drama 2475 By Cost of Staging drama 1200 To Entrance Fees 600 By Sundry Expenses 1300 To Interest on Securities 500 By Cash at Bank 2500 To sale of Old Furniture 100 By Cash in Hand 200 20000 20000
1. The society has 2000 members, each paying an annual subscription of Rs. 10. 2. Subscriptions of Rs. 10 pertaining to the year 2006 07 are still in arrears. 3. Value of Stationery at hand on 31st March, 2007 was Rs. 500 and on 31st March, 2008 was Rs. 350. 4. 75% of Entrance Fees are to be treated as Capital receipts. 5. Salary of Rs. 700 for the current year is unpaid. 6. Balances as on 31st March, 2007: Investment Rs. 5000, Building Rs. 25000, Furniture Rs. 200. 7. Depreciate building by 10 % and furniture by 5%.
14. From the following information, prepare Income and Expenditure account for the year ended 31 st
March, 2008 and a Balance Sheet as on that date.
1. The society has 1000 members, each paying an annual subscription of Rs. 12. 2. Subscriptions of Rs. 10 pertaining to the year 2006 07 are still in arrears. 3. Value of Stationery at hand on 31st March, 2007 was Rs. 500 and on 31st March, 2008 was Rs. 350. 4. 90% of Entrance Fees are to be treated as Capital receipts. 5. Salary of Rs. 4700 for the current year is unpaid. 6. Balances as on 31st March, 2007: Investment Rs. 15000, Building Rs. 50000, Furniture Rs. 500. 7. Depreciate building by 7 % and furniture by 10%. 49 BOOK KEEPING & ACCOUNTANCY
H.S.C
OMTEX CLASSES
6 YEAR
TH
15. From the following information, prepare Income and Expenditure account for the year ended 31st March, 2008 and a Balance Sheet as on that date.
Receipts Amount Payments To Cash in hand (1.4.2007) 2000 By Bank Overdraft To Subscriptions By Salaries 2006 07 150 By Furniture 2007 08 4100 By Investments in Securities 2008 09 75 By Printing and Stationery To proceeds from Drama 2475 By Cost of Staging drama To Entrance Fees 600 By Sundry Expenses To Interest on Securities 500 By Cash at Bank To sale of Old Furniture 100 By Cash in Hand 10000
Amount 2300 1000 2500 1000 1000 1200 300 500 200 10000
1. The society has 300 members, each paying an annual subscription of Rs. 15. 2. Subscriptions of Rs. 100 pertaining to the year 2006 07 are still in arrears. 3. Value of Stationery at hand on 31st March, 2007 was Rs. 500 and on 31st March, 2008 was Rs. 350. 4. 75% of Entrance Fees are to be treated as Capital receipts. 5. Salary of Rs. 800 for the current year is unpaid. 6. Balances as on 31st March, 2007: Investment Rs. 15000, Building Rs. 125000, Furniture Rs. 600. 7. Depreciate building by 10 % and furniture by 5%. 16. From the following information, prepare Income and Expenditure account for the year ended 31 st March, 2008 and a Balance Sheet as on that date.
1. 2. 3. 4. 5. 6. 7. The society has 290 members, each paying an annual subscription of Rs. 15.5. Subscriptions of Rs. 100 pertaining to the year 2006 07 are still in arrears. Value of Stationery at hand on 31st March, 2007 was Rs. 500 and on 31st March, 2008 was Rs. 350. 80% of Entrance Fees are to be treated as Capital receipts. Salary of Rs. 80 for the current year is unpaid. Balances as on 31st March, 2007: Investment Rs. 15000, Building Rs. 125000, Furniture Rs. 600. Depreciate building by 10 % and furniture by 5%.
H.S.C
OMTEX CLASSES
6 YEAR
TH
17. The following is he Receipts and payments account of Charitable Hospital for the year ending 31st March, 2007.
Receipts Opening Balance: Cash Bank Govt. Securities Receipts: Subscription Interest Donations Sundry Receipts
Amount Rs. Payments Amount Rs. Furniture 50 625 Salaries 11500 3625 Surgical Instruments 250 90000 Diet Expenses 1175 Surgical & Dispensary 1750 12500 Rent & Rates 500 4500 Insurance 350 5750 Office Expenses 600 325 Travelling Expenses paid to 750 Doctors Sundry Expenses 300 Medicines 750 Closing Balance: Cash 725 Bank 8625 Govt. Securities 90000 117325 117325
You are asked to prepare the Income & Expenditure Account for the year ended on 31st March, 2007 and the Balance Sheet as on that date after taking into account the following information. 1. The assets on 1st April, 2006 were as follows: Furniture Rs. 1,000; Land Rs. 25,000; Building Rs. 75,000; Surgical instruments Rs. 1,750. 2. Write off depreciation at 2 % on Building; 6% on Furniture and 20% on surgical instruments. The Govt. Securities were of the face value of Rs. 1,00,000 and represents the investments of the Endowment fund. 3. The subscription received included Rs. 5,000 for the previous years, whereas the outstanding subscriptions for the current year amounted to Rs. 3,500. Salaries of staff include Rs. 500 for the last year and salaries Rs. 750 is outstanding for the current year. 4. Interest received included Rs. 1,000 for the year 2005 and Rs. 1,150 are outstanding for the current year. 18. From the following balance Sheet and Receipts and Payments account of Nanavati Hospital, Bombay, prepare Income and Expenditure account for the year ending on 31st March, 2007 and the Balance sheet as on that date. Balance Sheet as on 1st April, 2006
Liabilities Salaries Unpaid Medicines Bill Unpaid Capital Fund
Amount 2000 1500 383000
Assets Cash Securities Furniture Land and Buildings Equipments Subscription Due Interest Accrued
Amount 11000 150000 4000 200000 15000 5000 1500 386500
386500
H.S.C
OMTEX CLASSES
6 YEAR
TH
Receipts and Payment Account Receipts Amount Payments Cash 11000 Furniture purchased on 1-4-2006 To subscription 30000 Salaries including Rs. 2000/- of last year. Interest (Rs. 1500/- last year) 5000 Equipment purchased on 1-4-06 Donations(Revenue) 4300 Dispensary expenses Life Membership Fee 10000 Medicines Taxes Cash 60300
Amount 1900 2300 7500 4700 5500 500 17200 60300
Adjustments. 1. Capitalise the amount of life membership fees. 2. Interest earned but not received Rs. 1,000/3. Subscription include Rs.1000/- for 2008 and outstanding subscription for 31st march, 2007 is 4,200 4. Unpaid salary for the year 2007 is Rs. 2500/5. Provide for depreciation on furniture 10%, Land and Building 5%, Equipments 20%. 6. Prepaid taxes Rs. 100/19. The Balance Sheet as at 1st April, 2006 and the Receipts and Payments account for the year ended 31st March, 2007 of the Young Sports Club, Dadar are as under. Young Sports Club Balance Sheet as on 1st April, 2006
Liabilities Amount Capital Fund 30000 Outstanding Expenses: Salaries 400 Printing 300 700 Income and Expenditure A/c 23300
Assets Building Furniture Entrance Fee receivable Subscriptions Fee receivable Sports Material & Equipments Cash in Hand Cash at Bank
54000 Receipts To Opening Balance 4200 Cash in Hand 6300 To Subscriptions To Receipts from Cricket Tournament To Interest on Bank A/c
Amount 9500 5000 200 800 28000 4200 6300 54000 Amount 16460 860 1600 500 470 300 400 15000
Young Sports Club, Dadar, Receipts and Payments A/c for the year ending 31st March, 2007
Amount Payments By Cricket Tournament 10500 Expenditure 18000 By Printing & Stationery 4000 By Salaries & Honorarium 14520 By Repairs to Building 300 By Newspapers and Periodicals By Advertising Expenses By Insurance By Investments By Closing Balance Cash in Hand 5280 Cash in Bank 6450 47320
11730 47320
You are also given the following additional information. 1. Subscriptions of the amount of Rs. 800 were receivable as on 31 st March, 2007 2. Subscriptions Rs. 200 and Entrance Fees Rs. 300 were received in advance. 52 BOOK KEEPING & ACCOUNTANCY
H.S.C
OMTEX CLASSES
6 YEAR
TH
3. Outstanding Expenses were: Salaries and Honorarium Rs. 100; Insurance Rs. 50; Cricket Tournament Expenses Rs. 250. You are required to prepare Income & Expenditure account for the year ending 31st March, 2007 and a Balance Sheet as on that date. 20. OMTEX sports club, Presented their Receipts and payments account for the year ended 31 st March, 2006 are as follows. Receipts and Payments account for the year ended 31st March, 2006
Receipts To cash opening Balance as on 1-4-2005 To Subscriptions: 2004 05 2005 06 2006 07 To Locker Rent To Entrance Fees To Interest on Investments To Donations for Prize Distribution. To Sale of Furniture (Cost Price Rs. 160 on 1-4-2005) To Legacies.
Amount Payments 5000 By Bank Overdraft as on 14-2005. 400 By Prize Distribution Exp. 31000 By Investments 1900 By Furniture (on 1-4-2005) 1000 By Salaries 1400 By Fax Charges 1000 By Printing 5000 By postage 200 By Stationery 3100 By Telephone Charges By Municipal Taxes By Rent By Expenses on Annual get together By balance C/d Cash in hand Cash at bank 50000
Amount 5000 2000 7000 10160 6200 540 400 1200 700 700 600 25800 2000
300 10400 50000
In addition to the information contained in the above account, the following additional facts are ascertained. 1. The stock of stationery on 31-3-2005 and 31-3-2006 amounted to Rs. 100 and Rs. 200 respectively. 2. Outstanding Salaries on 31-3-2006 were Rs. 800. 3. Half of entrance Fees and full amount of Legacies are to be capitalized. 4. The Club had 320 members paying an annual subscription of Rs. 100 per member. 5. On 31-3-2005, the assets and liabilities were as follows. Premises Rs. 50,000 Investments Rs. 12,000 Furniture Rs. 6,000 Prize Distribution Fund Rs. 8,500 Capital Fund Rs. 60,000 6. Depreciation of Premises is to be provided @ 10% p.a. and on Furniture @ 5% p.a. Prepare Income and Expenditure account for the year ended 31 3 2006 and a balance sheet as on that date.
H.S.C
OMTEX CLASSES
6 YEAR
TH
21. From the showing Receipts & Payments account for the year ended 31-3-2006. You are required to prepare an Income and Expenditure account for the year ended 31st March, 2006 & Balance sheet as on that date. (16 marks) Receipts and payments Account for the year ended 31st March, 2006
Receipts Amount Payments Amount To Balance b/d 4160 By Salaries 5500 To Subscriptions By Entertainment Expenses 2500 2005 06 16000 By Lighting 1080 2006 07 412 By General Expenses 1536 To Donation 5000 By Taxes 500 To Receipts From Entertainment 3644 By Investments 12000 To Interest 324 By Expenses of 2004 06 2400 To Entrance Fees 4500 By Printing & Stationery 944 By Fixed Deposit 4000 By Balance C/d 3580 34040 34040
Adjustments 1. There are 450 members paying an annual subscription of Rs. 40 each. 2. The salaries outstanding on 31 3 2006 was Rs. 1000 3. Land and Building stood in the book at Rs. 60,000 and Furniture at Rs. 4,600 on 1 st April 2005 write off depreciation at 2% on land and building and at 10% on furniture. Capital fund as on 1st April 2005 was Rs. 66,360. 4. Interest on Investments @ 5% p.a. has accrued for 3 months. 5. 50% of the entrance fees is to be capitalized.
22. The following is the Receipts and Payments Account of Youngsters Club for the year ending 31 st December, 2001. (16 marks) Receipts Amount Payments Amount To Bal. b/d Cash 2150 By Salaries 4160 To Subscriptions By Printing & Stationery 800 2000 80 By Rates & Taxes 1200 2001 4220 By Television Charges 200 2002 160 4460 By Investment in Govt. Securities. 2500 To Sport meeting surplus 3250 By Sundry Expenses 1850 To interest on investments 2000 By Balance C/d Cash. 1150 11860 11860
Adjustments
1. There are 450 members paying an annual subscription of Rs. 10 each. Rs. 90 being in arrears for the year 2000, at the beginning of the year 2001. 2. Stock of stationery on 31 12 2000 was Rs. 100 and that of 31 12 2001 is Rs. 180. 3. On 31 12 2001 prepaid rates & taxes are Rs. 300 up to 31 3 2002. Yearly charges Rs. 1,200. Outstanding television charges are Rs. 70. 4. On 31 12 2000 outstanding sundry expenses are Rs. 140. 5. On 31 12 2000 book value of building was Rs. 20,000 & it is to be depreciated @ 5% p.a. & Investments were valued at Rs. 40,000 on the above date. 6. Prepare (1) Balance sheet as on 31 12 2000. (2) Balance sheet as on 31 12 2001. (3) Income and Expenditure account for the year ending 31 12 2001.
H.S.C
23. From the following information prepare Income and Expenditure account for the year ended 31 st March, 2008 of Youth Association and a balance sheet as on that date. (16 marks) Receipts To Bal. b/d To Subscriptions 2006 - 07 250 2007 - 08 3500 2008 - 09 750 To Entrance Fees To interest on investments Adjustments 1. 2. 3. 4. 5. Salaries unpaid Rs. 250, printing unpaid includes Rs. 600 for the year. Printing paid includes Rs. 500 pertaining to the previous year. Subscriptions outstanding Rs. 650 for the year. st Balances on 1 April 2007, Furniture Rs. 6000, Investment Rs. 50,000, Building - Rs. 2000 Provide 5% depreciation on furniture and building.
st
OMTEX CLASSES
6 YEAR
TH
Amount 3500
Payments By Salaries 2007 2008 250 2250
Amount
4500 1600 2900 12500
By Rent By Postage By Printing and Stationary By Balance C/d
2500 4300 300 3000 2400 12500
24. From the following receipts and payments account for the year ended 31 March, 2006 and additional information of Mumbai Sports Club, Mumbai prepare Income and Expenditure account for the year ended 31st March, 2006 and a Balance sheet as on that date. (16 marks) Receipts To Opening Cash Balance To Donations To Subscriptions To Locker Rent To Entrance Fees To Interest on Investments To sale of Old Newspapers To Hire of Ground Amount 8600 12000 15600 1550 1300 600 200 4000 Payments By Sports Materials Purchased By Wages By insurance By Stationery Expenses By Furniture By Rent By Investments By Newspapers and Periodicals By playground Expenses By Interest By Salaries By Postage By Printings By Repairs of Sports Material By Expenses on Matches By Sundry Expenses By closing Cash balance Amount 10000 3000 500 800 2900 1000 5000 800 1700 700 3200 450 480 820 850 1000 10650 43,850
43,850
Adjustments 1. The assets and liabilities on 1-4-2005 were as follows. a. Land and buildings Rs. 300000 b. Furniture Rs. 10000 c. Playground Rs. 25000 d. Sports Material Rs. 22000 e. Investments Rs. 8000 f. Capital fund Rs. 373900 2. Subscriptions received include Rs. 300 for 2004 05, Rs. 800 for 2006 07 whereas subscription s of Rs. 2500 are outstanding for 2005 06. 3. Half of the donations and full amount of entrance fees are to be capitalised. 4. Outstanding salaries amounted to Rs. 650 5. Depreciate Land and Building @ 2.5%, Furniture @ 7.5% and Sports material @ 12.5% on the opening balance.
H.S.C
OMTEX CLASSES
Receipts and Payments Account for the year ended on 31 March, 2007. Receipts Amount Payments Amount To Balance b/d 1490 By Upkeep of Garden 9500 To Subscription 13600 By wages 2360 To Entrance Fees 520 By Salary 7000 To Interest on Investments 840 By Ground rent 210 To Proceeds from Matches 5180 By Printing 930 To Life member fees 5000 By Postage 190 By Bank balance 5000 By Balance c/d 1440 26630 26630
st
6 YEAR
TH
25. The following is the Receipts and payments Account of Modern Sports Club, Satara, for the year ended on st 31 March, 2007.
Adjustments: 1. Ledge balances of the club as on 31.3.2006 were Capital fund Rs. 66,430, Club house and ground Rs. 40,000, Investments Rs. 48,640, furniture Rs. 6,400, Outstanding subscription Rs. 600. 2. Printing includes Rs. 200, Upkeep of garden includes Rs. 500 and Subscription includes Rs. 400 for the previous year. 3. Entrance fees are to be capitalized. 4. The Rotary club of Satara owed Rs. 210 for the use of club hall. 5. Provide 10% depreciation on furniture. 6. Subscriptions outstanding for the current year were Rs. 1,000. Prepare _ Income and Expenditure account for the year ended 31st March, 2007 and Balance Sheet as on that date.
HOME WORK
26. Dr. Subhash Raje started practice as a medical practitioner on 1st April, 2007. He gives you the Receipts & Payments Accounts for the year 2007 08 and the adjustments to be made. Prepare his Income and Expenditure Account and Balance sheet for 2007 -08. Receipts and payments account for the year ended 31st March, 2008. Receipts Amount Payments Amount To Cash Introduced 107500 By Furniture 50000 To Visits 84000 By Equipment 40000 To Receipts From Dispensary 64000 By Drugs 35000 To Sundry Receipts 12000 By Salary 24000 By Rent 6000 By Conveyances 18000 By Stationery 5600 By Lighting 10000 By Journals 1200 By Drawings 37700 By Balance c/f 40000 267500 267500 Adjustments: 1. 2. 3. 4. 5. 6. Receipts in arrears are: Visits Rs. 11,500 and Dispensary Rs. 9,000. The outstanding salaries are Rs. 1,800 and the outstanding expenses on drugs are also Rs. 3,000. 40% of the amount spent on conveyance was for domestic use. Stock of drugs in hand at the close of the year was worth Rs. 4,200. Depreciate furniture at 5% p.a. and equipments at 10% p.a. Furniture and equipment purchased on 1st April 2007.
H.S.C
OMTEX CLASSES
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27. The following is the Receipts and Payments A/c of the Saraswati Vidya Mandir, Latur. Receipts and Payments Account for 2007 08. Receipts Amount Payments Amount To Cash Balance b/f 32,000 By Furniture (31-12-2007) 80000 To Admission Fees 68,000 By Salaries 124000 To Tuition Fees 46,000 By Office Expenses 42000 To Donations 90,000 By Sports Material 18000 To Govt. Grant 1,00.000 By Printing & Stationery 17000 To Life Members Fees 62,000 By Fixed Deposit(@10% on 1.10.2008) 100000 To Term Fees 24,000 By Cash Balance c/f 41000 To Examination Fees 30,000 452000 452000 Additional Information: st 1. The assets of the society on 1 April, 2007 were: Building Rs. 50,000 Furniture Rs. 47,000 Library Rs. 40,000 Laboratory Rs. 48,000 2. The tuition fees receivable from students for 2007 08 is Rs. 12,000. 3. Furniture and Building are to be depreciated at 10% p.a. each. 4. The 50% of donations and entire amount of Life Members Fees are to be capitalized. 5. Sports material is valued at Rs. 42,000 on 31-03-08. 6. The capital fund on 1st April, 2007 was Rs. 2,17,000. st Prepare Income and Expenditure Account for the year ended 31 March, 2004 and a Balance sheet as on that date. 28. From the following Receipts and Payments Account of Ajanta Club, Ratnagiri and additional information, prepare an Income and Expenditure Account for the year ended 31st March, 2008 and Balance Sheet as on that date. Receipts and Payments A/c for the year ended 31st March, 08 Receipts Amount Payments Amount To Balance b/d By Balance b/d Cash 30000 Bank 25000 To Receipts from entertainment programme 84000 By Stationery A/c 11500 To Entrance Fees By Furniture A/c 40000 To Interest on Investments 26000 By Investments A/c 60000 To Charity 36000 By Salaries A/c 45000 To Subscriptions 12000 By Expenses of entertainment programme 50000 2006 07 By Balance c/d 2007 08 12100 Cash Balance 2008 09 40300 Bank Balance 8500 11600 12000 252000 252000 Additional Information. 1. 2. 3. 4. 5. Capitalize 50% of the entrance fees. Outstanding salary is Rs. 8,700 while outstanding interest on investment is Rs. 1500. There are 500 members of the club, each of them is paying an annual subscription of Rs. 100. Opening stock of stationery was Rs. 1,800 and closing stock of stationery is Rs. 1900. The assets of the Ajanta club on 1st April 2007 were Building: Rs. 1,50,000. Furniture Rs. 50,000 and Equipment Rs. 30,000. The capital Fund as on 1st April 2007 was Rs. 2,48,900. New Furniture was st purchased on 1 October, 2007. Provide depreciation on Building and Furniture @10% and 5% respectively. Equipment valued at Rs. 26,000 at the end of the accounting year 2007 08.
6.
Note: In the absence of any information to the contrary, entrance fees should be treated as revenue receipt. If any specific instruction is given in the problem, entrance fes should be treaed accordingly.
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29. Girgaon Library showed the following position on 1st April, 2007. st Balance Sheet as on 1 April, 2007 Liabilities Amount Assets Rs. Capital Fund 267650 Furniture Outstanding Liability for Expenses 2350 Books Investments Cash at Bank
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Amount Rs. 82500 120000 45000 22500
270000 270000 st Receipts and Payments Account for the year ended 31 March, 2008 Receipts Amount Payments Amount To Opening Balance 22500 By Electric Charges 2360 To Entrance Fes 41500 By Postage & Stationery 1250 To subscriptions 50000 By Telephone Charges 6250 To Sale Proceeds of old papers 1275 By Purchase of Books 33000 To Hire of Lecture Hall 21000 By Expenses of 2006 07 2350 To interest on investments 3400 By Rent 14400 By Investments 42000 By closing Balance 23300 14765 139675 139675 You are asked to prepare an Income and Expenditure A/c of the Library for the year ended 31 st March, 2008 and a Balance Sheet as on that date after making the following adjustments. 1. Subscriptions include Rs. 12500 received in advance and subscriptions of Rs. 27500 in respect of current year are still receivable. 2. Outstanding Liabilities on 31st March, 2008 were Rent Rs. 4,000 and Salaries Rs. 3,000. 3. Books, excluding any additions during the year, are to be depreciated at 10% p.a. 4. 50% of the Entrance Fees are to be capitalized. 30. From the following Balance Sheet and Receipts and Payments Account of Ashwini Hospital, Mumbai, prepare an Income and Expenditure Account for 2007 08 and a Balance Sheet as on 31-03-2008. Balance Sheet as on 1-04-2007 Liabilities Salaries unpaid Medicines bill unpaid Capital fund Amount 12000 11500 446000 Assets Cash Securities Furniture Land and buildings Equipment Subscriptions due Interest accrued Amount 41000 150000 24000 200000 45000 5000 4500 469500
469500
st
Receipts and payments A/c for the year ended 31 March, 08 Receipts To Cash Balance b/f To Subscriptions To interest (including Rs. 4500 of last year) To Donations (Revenue) To Life Membership Fees Amount 41000 60000 15000 14300 40000 Payments By Furniture (Purchased on 1-4-07) By Salaries (Including Rs. 12000 of last year) By Equipment (purchased on 1-4-07) By Dispensary Expenses By Medicines By Taxes By Cash Balance c/f Amount 11900 48000 7500 24700 45500 4500 28200 170300
170300
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Adjustments: Capitalize the entire amount of life membership fees. Interest earned but not received is Rs. 2,000. Subscriptions for 2007 08 are Rs. 4,200. Unpaid salary for the year 2007 08 is Rs. 12,500. Provide for depreciation on furniture at 10%, on land and buildings at 5% and on equipment at20%. Prepaid taxes are Rs. 400. 31. The following is the Receipts and Payments Account of the Shree Sports Club, Ahmednagar. Receipts and payments account for the year ended 31st March, 2008. Receipts Amount Payments Amount To balance b/d By Salaries 8500 Cash 7000 By Badminton court (1.4.07) 22000 To subscriptions 20000 By Insurance 3000 To interest on investments 3000 By Furniture (1.4.07) 17000 To Rent 6000 By Sundry Expenses 6000 To Badminton Fees 12000 By Tournament Expenses 8000 To Tournament Fees 19000 By Printing Charges 1500 To Admission Fees 22000 By Newspapers & Magazines 600 To Donations. 45000 By 12% Investments 50000 By Balance c/d Cash 17400 134000 134000 st On 31 March, 2007, the club owned a building worth Rs. 1,50,000. The capital fund on the same date was Rs. 1,57,000. Prepare and Income and Expenditure account for the year ended 31st March, 2008 and a Balance sheet as on that date after considering the following additional information. 1. Subscriptions received for 2008-09 Rs. 1500; subscriptions still due for 2007 08: Rs 4,000. 2. Outstanding salaries on 31st March, 2008: Rs. 3000 and Insurance premium is paid for one year ending 30th June, 2008. 3. Depreciation on building, badminton court and furniture @10%, p.a. each. 4. Capitalize 70% of the admission fees. 5. Donations are received for endowment fund. 6. Investments purchased on 1st July 2007. 32. From the following Receipts and payments Account of South Indian Cultural Society, Matunga, Mumbai, prepare Income and Expenditure Account for the year ended 31st March 2008 and a Balance Sheet as on that date: Receipts Amount Payments Amount To Opening Cash in Hand 7420 By Opening Bank Overdraft 92700 To Subscriptions By Investments in Securities 53000 2006 07 7300 By Purchase of Furniture 41450 2007 08 185500 By Salaries 36200 2008 - 09 5000 By Printing & Stationery 1890 To Proceeds from Dramas 70000 By Cost of Staging Dramas 21710 To Entrance Fees 30000 By Sundry Expenses 14420 To Interest on Securities 4200 By Closing Balances To Miscellaneous Income 7500 Cash in hand 55550 3,16,920 3,16,920 Additional Information: 1. The society has 1000 members each paying an annual subscription of Rs. 200. Subscriptions of Rs. 9,000 are still in arrears in respect of 2006 07. Capital fund as on 1st April, 2007 was 1,22,950. 2. Stock of stationery amounted to Rs. 1,125 on 31-3-2007 and Rs. 2,087 on 31-3-2008. 3. Half the entrance fees are to be capitalized. 4. Salary for the year 2007 08 Rs. 1550 is outstanding. 5. Outstanding Sundry Expenses on 31-3-2007 had amounted to Rs. 1320. 6. Sundry expenses paid in 2006-07 included telephone charges Rs. 1125 relating to 2007-08. 7. On 31-3-2007, the society owned premises worth Rs. 124500. Billiard Table worth Rs. 40,000 and investments worth Rs. 26,500. 8. Both the premises and the Billiards Table at the end of the year are to be depreciated at 10% on the opening balances.
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CH. 6. FINAL ACCOUNTS OF PARTNERSHIP FIRM [Q. 7: 20 MARKS]

1. From the following Trial Balance of M/s Sonia and Sufi, you are required to prepare Trading Profit and Loss Account for the year ended 31st December, 2004 and the Balance sheet as on that date. Trial Balance as on 31.12.2004
Particulars Sonias Capital Sufis capital Sonias Drawing Sufis Drawing Stock on 1 1 2004 Bills Receivable Purchases Sales Bills Payable Return In ward Return Outward Plant and Machinery Loose Tools Patents Sundry Debtors Sundry Creditors Cash at Bank Wages Salaries Rent and Taxes Insurance Printing and Stationery Power and Fuel
Debit (Rs.) Credit (Rs.) 1, 80, 000 1, 50, 000 14, 450 10, 000 2, 00, 000 25, 000 2, 75, 000 4, 00, 000 60, 000 5, 000 4, 500 1, 00, 000 25, 000 25, 000 1, 25, 000 1, 40, 000 77, 550 19, 000 17, 500 7, 500 3, 000 2, 000 3, 500 9, 34, 500 9, 34, 500
Adjustments: 1. Stock as on 31st December, 1978 Rs. 1, 30,000 and its market value were Rs. 1, 40,000. 2. Write off Rs. 1000 for bad & Provide for Bad and Doubtful debts at 5% on Sundry Debtors. 3. Goods worth Rs. 1000 were distributed as free samples. 4. Prepaid Insurance Rs. 750. 5. Depreciate Plant and Machinery by 10% p.a. and Patent by 15% p.a. 6. Outstanding expenses Write Answers. G.P. = Salaries Rs. 2,500 Wages Rs. 1,000 N.P. = Printing and Stationery Rs. 500. 7. Uninsured goods worth Rs 1200 were lost by fire. P.C.A. Balance = Tally Amount = 60 BOOK KEEPING & ACCOUNTANCY
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2. Misha and Latha are partners sharing profits and losses in the ratio of 2 : 1. From the following Trial Balance prepare Trading and Profit and loss account for the year ending 31 st December, 2004. Trial Balance as on 31.12.2004
Particulars Debit (Rs.) Credit (Rs.) st Stock (1 January) 10, 000 Sundry Debtors 28, 000 Bills payable 10, 101 Purchases 40, 000 Wages 8, 500 Returns Outward 2, 500 Salaries 2, 700 Office Expenses 2, 446 Insurance 1, 300 Plant & Machinery 30, 000 Sundry Creditors 21, 500 Rent 1, 800 Sales 60, 000 Reserve for Doubtful Debts 400 Travelling Expenses 1, 400 Returns Inward 3, 500 Land and Building 44, 800 Bills Receivable 3, 400 Bank 6, 655 60, 000 Mishas capital 30, 000 lathas capital 1, 84, 501 1, 84, 501
Adjustments: 1. Closing stock was valued at Rs. 26,500. 2. Provide 10% Depreciation on Plant and Machinery. 3. Goods worth Rs. 1000 were distributed as free samples. 4. Prepaid Insurance Rs. 300. 5. Maintain Reserve for Doubtful debts at 1% of Sundry debtors. 6. Outstanding rent for the current year Rs. 200. 7. Goods worth Rs. 100 were taken over by Latha for her personal use, but no entry is made in the books. Write Answers. G.P. = N.P. = P.C.A. Balance = Tally Amount = 61 BOOK KEEPING & ACCOUNTANCY
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3. Surya and Abhijeet are in a Partnership firm. The trial Balance of the firm on 31 st December, 2004 was as follows. Trial Balance as on 31st December, 2004
Particulars Capitals: Surya Abhijeet Drawings: Surya Abhijeet Buildings Plant and Machinery Cash at bank Purchases and Sales Returns Carriage Opening stock Wages Debtors & Creditors Salaries Rent and Insurances Postage and Telegrams Bad Debts Discounts Reserve for Bad Debts Outstanding Salaries Trade Expenses
Debit (Rs.)
Credit (Rs.) 15, 000 10, 000
500 200 20, 000 6, 000 600 47, 500 1, 500 350 11, 000 6, 000 17, 600 2, 500 400 200 250 100
75, 500 1, 000
12, 600
50 750 100 1, 15, 000
300 1, 15, 000
Adjustments: 1. Partners share Profits and Losses in the ratio of their capitals. 2. Write off Rs. 450 for Bad debts & Reserve for Bad and Doubtful Debts is to be maintained at 5% on the Debtors. 3. Depreciate Building @ 5% and Machinery @ 10% p.a. 4. Goods worth Rs. 1, 000 were destroyed by fire and the insurance company admitted a claim for Rs. 800. 5. Stock as on 31st December, 2004 was valued at Rs. 8, 000. 6. Goods worth Rs. 1000 were distributed as free samples. 7. Wages outstanding Rs. 1000. Prepare Trading and Profit & Loss account for the year ended 31st December, 2004 and a Balance sheet as on that date. Write Answers. G.P. = N.P. = P.C.A. Balance = Tally Amount = 62 BOOK KEEPING & ACCOUNTANCY
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4. Agarkar and Dravid are in partnership sharing profit and losses in the ratio of 2: 1 from the following information of Trial balance and adjustments you are required to prepare profit and loss account, trading account and Balance sheet as on 31st march 2003. Trial Balance as on 31st December, 2003 Particulars Prepaid Insurance Insurance R.B.D.D Discount Postage and Telephones Salaries Debtors Creditors Wages Opening Stock Carriage Return Inward Return Outward Purchase and sales Bank Overdraft Plant and Machinery Land and Building Drawings:Agarkar Dravid Capitals:Agarkar Dravid Debit (Rs.) Credit (Rs.) 400 1, 000 500 400 1, 600 28, 000 33, 000 34, 000 12, 000 24, 000 500 2,800 4, 600 96, 600 1, 50, 800 60, 400 12, 000 88, 000 4,000 2,000 30, 000 26, 000 3, 06, 300
3, 06, 300
Adjustments: 1. Write off Rs. 1,000 for bad debts and provide for R.B.D.D @ 5% on debtors. 2. Goods worth Rs. 2,000 were distributed as free samples. 3. Closing Stock 31 12- 2003 was valued at cost Rs. 28, 000 while its market value is Rs. 30,000/-. 4. Salaries were outstanding Rs. 1,000. 5. Depreciate Land and Building @ 5% p.a. and Plant and Machinery @ 10% p.a. 6. Goods worth Rs. 3,000 were destroyed by fire, but insurance company admitted the claim for Rs. 400 only. 7. Dravid had taken goods worth Rs. 1000 for his own use, but no entry is made in the books.
Write Answers. G.P. = N.P. = P.C.A. Balance = Tally Amount = BOOK KEEPING & ACCOUNTANCY 63
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5. From the following Trial Balance and adjustments you are required to prepare the Trading account, Profit and loss account and Balance sheet as on 31st December, 2004. Trial Balance as on 31st December, 2004 Credit (Rs.) Particulars Debit (Rs.) 2, 00, 000 Aishwaryas Capital 1, 30, 000 Revathis Capital 14, 000 Aishwaryas Drawing 10, 000 Revathis Drawing Stock on 1 1 2004 2, 00, 000 Bills Receivable 15, 000 Purchases 2, 85, 000 Sales 3, 90, 000 Bills Payable 70, 000 Return In ward 15, 000 Return Outward 4, 000 Plant and Machinery 1, 00, 000 Loose Tools 25, 500 Patents 15, 000 Sundry Debtors 1, 25, 000 Sundry Creditors 1, 40, 800 Cash at Bank 78,00 0 Wages 19, 000 Salaries 17, 500 Rent and Taxes 7, 000 Insurance 3, 000 Printing and Stationery 2, 000 Power and Fuel 3, 800 9, 34, 800 9, 34, 800 Adjustments 1. Stock on 31st December, 2004 is valued at Rs. 50,000 but is market value is Rs. 45,000. 2. Depreciate plant and machinery @ 5% p.a. Patents by 10%. 3. Write off Rs. 1,000 for bad debts and provide for R.B.D.D @ 5% on debtors. 4. Insurance were prepaid for Rs. 200. 5. Salaries outstanding amounted to Rs. 800. 6. Goods worth Rs. 5000 were destroyed by fire. 7. Goods worth Rs. 400 were distributed as free samples.
Write Answers. G.P. = N.P. = P.C.A. Balance = Tally Amount = 64 BOOK KEEPING & ACCOUNTANCY
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6. From the following Trial Balance and Adjustments of Kumbhar and Maroti you are required to prepare Trading and Profit and Loss Account for the year ended on 31 st March, 2005 and Balance Sheet as on that date. Trial Balance as on 31st March, 2005 Rs. Debit Balance Rs. Credit Balance Stock (1.4.2004) 35000 Sales 330000 Salary and Wages 4200 Discount 4000 Cash 10000 Creditors 20000 Purchases 225200 Bank Overdraft 10000 Sundry expenses 13600 Interest on Investment 8000 Wages 12000 Capitals: Bills Receivable 6000 Kumbhar 60000 Travelling Expenses 2000 Maroti 40000 Bad Debts 3000 Factory Expenses 8000 Commission 4000 Investments 20000 Debtors 40000 Tools and Equipments 6000 Furniture 12000 Goodwill 21000 Building 50000 472000 472000 Adjustments 1. Partners share Profits and Losses in the ratio of their capitals. 2. Closing stock is valued at Cost Price Rs. 40,000 and at Market Price Rs. 45,000. 3. Kumbhar has withdrawn goods worth Rs. 1,200 for his own use, but no entry is made in the books. 4. Uninsured goods worth Rs. 12,000 were lost by fire. 5. Rs. 450 is to be written off as bad debts. 6. Unpaid expenses: Salary and Wages Rs. 800 Rent Rs. 1,200 7. Depreciate building @ 7 % p.a.
Write Answers. G.P. = N.P. = P.C.A. Balance = Tally Amount = BOOK KEEPING & ACCOUNTANCY 65
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7. From the following information you are required to prepare the Trading account, profit and loss account and Balance sheet as on 31st March, 2005. Trial Balance as on 31st March, 2005 Credit (Rs.) Particulars Debit (Rs.) 1, 00, 000 Sachins Capital 2, 30, 000 Gangulys capital 4, 000 Sachins Drawing 1, 000 Gangulys Drawing Stock on 1 1 2004 2, 20, 000 Bills Receivable 5, 000 Purchases 2, 95, 000 Sales 2, 00, 000 Bills Payable 1, 60, 000 Return In ward 5, 000 Return Outward 4, 500 Plant and Machinery 1, 00, 000 Loose Tools 24, 000 Patents 25, 000 Sundry Debtors 1, 25, 000 Sundry Creditors 2, 40, 000 Cash at Bank 77, 550 Wages 19, 000 Salaries 17, 500 Rent and Taxes 7, 950 Insurance 3, 000 Printing and Stationery 2, 000 Power and Fuel 3, 500 9, 34, 500 9, 34, 500 Adjustment 1. Stock on 31st March, 2004 is valued at Rs. 30,000 but is market value is Rs. 35,000. 2. Depreciate plant and machinery @ 5% p.a. Patents by 20%. 3. Insurance were prepaid for Rs. 200. 4. Salaries outstanding amounted to Rs. 800. 5. Maintain Reserve for Doubtful debts at 10% of Sundry debtors. 6. Goods worth Rs. 5000 were destroyed by fire and the insurance company admitted a claim for Rs. 3000 only. 7. Sachin has withdrawn goods worth Rs. 500 for his own use, but no entry is passed in the books.
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8. Abhijit, Pawan and Vikram are partners. The following balanced were extracted from the books of a partnership firm as on 31st March, 1999. Trial Balance As On 31st March, 1999 Debit Balance Purchases Debtors Stock (1st April, 1998) Wages Salaries Furniture Building Insurance Loan at 5% to Vijay (1st Dec. 98) Rent and Taxes Investment Cash in Hand Bills Receivable Current Account : Abhijit Rs. Credit Balance Rs.
165000 Capital Accounts: 6000 Abhijit 25000 Vikram 20000 Pawan 8000 Current Accounts: 8000 Vikram 45200 Pawan 3500 Sales 4000 Reserved for Doubtful Debts 2000 Interest on Investment 10000 Creditors 8820 Bills Payable 10000 Return Outwards 2000 371520 371520 2000 3000 250000 7800 720 25000 14000 3000 24000 12000 30000
Adjustment 1. Closing stock Rs. 13,000. 2. Partners are allowed a salary at Rs. 3000 p.a. 3. Rs. 1200 paid during the year as building repairs wrongly debited to building account. 4. Depreciate furniture at 12% p.a. and Building at 10% p.a. 5. Rs. 1000 due from customer is not recoverable and create R.D.D. at 5% on debtors. 6. Goods of Rs. 12,000 were destroyed by fire. The insurance company admitted a claim for Rs. 7,410. 7. Prepare Final Accounts for the year ending 31st March, 1999.
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9. Mr. Kale and Mr. Gore were partners sharing profits and losses equally. The Trial Balance of their firm was as under: Prepare Trading and Profit and Loss Account for the year ended on 31st March, 2004 and Balance Sheet as on that date: Trial Balance as on 31st March, 2004. Rs. Debit Balance Rs. Credit Balance Opening Stock 30000 Capitals: Wages 9500 Mr. Kale 30000 Purchases 52500 Mr. Gore 60000 Investments 10000 Current Accounts: Postage 1000 Mr. Kale 2100 Printing & Stationery 2500 Mr. Gore 1400 Carriage Outwards 1300 Bills Payable 7500 Insurance 3200 10% Bank Loan(Taken on 1.10.2003) 10000 Debtors 35000 Bank Overdraft 6500 Furniture 5500 Creditors 25000 Bad Debts 1200 Sales 70500 Carriage Inwards 1800 R.D.D. 3000 Cash in Hand 5400 Returns Outward 500 Machinery (Purchased on 1.7.03) 32000 Salaries (For 10 months) 15000 Sundry Expenses 2100 Bills receivable 8500 216500 216500
Adjustment 1. Closing stock was valued at Rs. 61,500. 2. Printing and Stationery included Rs. 500 paid for purchase of postal stamps. 3. Depreciate Furniture and Machinery at 10% p.a. 4. 5% interest is to be allowed on capital. 5. Of the debtors Rs. 500 were bad and should be written off, and R.D.D. should be maintained at 5%. 6. Goods of Rs. 7,500 were purchased on 30th March, 2004 and included in the closing stock but those purchases were not recorded in the books of accounts. 7. Bills receivable include a dishonoured bill of Rs. 500.
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10. From the following Trial Balance of Ramesh and Reshma and given adjustments, prepare final accounts for the year ending 31st March, 2007. Ramesh and Reshma share profits and losses in the ratio of 2:1. Trial Balance as on 31st March, 2007. Rs. Debit Balance Rs. Credit Balance Land & Buildings 250000 Capital A/c. Plant & Machinery 150000 Ramesh 270000 Salaries 45000 Reshma 200000 Productive Wages 35000 Current A/c Delivery Van 80000 Ramesh 13000 Office Expenses 26000 Reshma 17000 Purchases 125000 Sales 290000 Returns 2500 Returns 4000 Bad debts 1000 Reserve For Bad debts 6000 Sundry Debtors 24000 Sundry Creditors 64000 Rent (for 10 months) 12000 Bills Payable 40000 12% Investments 18000 Bank Overdraft 10% p.a. 20000 Stock 26000 (Taken on 1st Jan 07) Insurance 3600 Interest on Investments 1700 Unproductive Wages 1000 Write Answers. G.P. = Advertising 4000 Furniture & Fixtures 38000 N.P. = Printing & Stationery 4600 Power & fuel 10000 P.C.A. Balance = Patent 15000 Tally Amount = Cash at Bank 18000 Cash in Hand 27000 925700 925700 Adjustment 1. The stock of goods on 31st March, 2007 was valued at Rs. 66,000 at cost while its market price was Rs. 70,000. 2. Write off Rs. 2,000 as further bad debts and maintain 5% R.D.D. on debtors and maintain 3% Reserve for discount on debtors and 2% Reserve for discount on Creditors. 3. Depreciate Plant and Machinery by 10%; Delivery Van by 15%; Patent by 20%. Furniture costing Rs. 8,000 sold for Rs. 5000 was wrongly included in sales and remaining furniture & fixtures are valued at Rs. 22,000. [less Rs. 8,000 from furniture, less Rs. 5,000 from sales and
record loss on sale of furniture worth Rs. 3,000 in P&L A/c Dr. Side & Depreciation on furniture is Rs. 8,000]
4. Outstanding expenses: Productive Wages Rs. 5400; Salaries Rs. 4500; Insurance premium is paid for the year ended 31st December, 2007. 5. Goods worth Rs. 6,500 were distributed as free samples for which no record has been made. 6. Bills Payable includes a dishonoured bill of Rs. 12,000. 7. Sale of goods of Rs. 10,000 was wrongly considered as sale of machinery.
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11. Following is the Trial Balance of Kalavati and Lilavati as on 31st March, 2005 who share Profits and Loses to the ratio of 3:2. Interest on capital was allowed at 5% p.a. Trial Balance as on 31st March, 2005 Rs. Debit Balance Rs. Credit Balance Opening Stock 10000 Return Outward 1250 Sundry Debtors 14100 Sundry Creditors 15800 Purchases 20000 Sales 35000 Wages 4250 R.B.D.D. A/c. 200 Salaries 1350 Capital A/c. Office expenses 1223 Kalavati 35000 Discount 650 Lilavati 10000 Rent, Rates & Taxes 900 Loan at 9% 2000 Plant & Machinery 15000 (Taken on 1.10.2004) Return Inward 1750 Land & Building 20000 Cash at Bank 7327 Current A/c : 2100 Kalavati 600 Lilavati 99250 99250 Additional Information 1. Closing stock was valued at Rs. 20,500. 2. Unpaid wages Rs. 750. 3. Outstanding salary Rs. 657. 4. Provide depreciation on Plant & Machinery at 10% p.a. and on land & building at 5% p.a. 5. Write of Rs. 100 as bad debts and provide R.B.D.D. at 5% on debtors. 6. Rent, Rates and Taxes prepaid Rs. 100. 7. Prepare Trading A/c and Profit & Loss A/c for the year ending 31st March, 2005 and a balance sheet as on that date.
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12. Given below is the Trial Balance of M/s Radha and Krishna on 31st March, 2004. Partners share profit & losses in the ratio of 3:2 respectively. From the following trial balance and additional information, prepare a Trading & Profit & Loss account for the year ended 31 st March, 2004 and a Balance sheet as on that date. Trial Balance as on 31st March, 2004. Particulars(Debit) Amount Particulars(Credit) Amount Partner's Current A/c Partners Capital Account Radha 16000 Radha 80000 Partner's Drawings Krishna 50000 Radha 15000 Partners Current Account Krishna 10000 Krishna 10000 Purchases 120000 Sales 365000 Returns 2500 Returns 3500 Debtors 65000 Creditors 10000 Furniture 50000 RDD 2000 Premises 160000 Provident fund 65000 Bad debts 7500 Interest on P.F. Investment 6000 Discount 5000 Outstanding Salaries & Wages 6500 Provident Fund Contribution 15000 General Reserve 45003 Provident Fund Investment 60000 Salaries & Wages 15003 Opening Stock 80000 Cash in hand 18000 Royalties 4000 643003 643003
Adjustments:
1. 2. 3. 4. 5. 6.
The closing stock was valued at marked price Rs. 90,000 which is 20% above cost. Write off bad debts Rs. 1500 and make a provision for doubtful debts @5% on debtors. Provide 2% Reserve for discount on debtors and creditors. Depreciate Furniture @ 15% and Premises @ 20%. Interest on capital is allowed @ 105 p.a. and interest on drawings be charged @ 15% p.a. Radha is entitled to receive rent for her premises at Rs. 300 p.m. where business is carried out and Krishna is to be given 5% commission on Gross Profit.
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13. X, Y & Z are partners in a firm of following terms. a. Y and Z to get salaries of Rs. 10,000 and Rs. 5,000 respectively for the year. b. Interest on Capital and on drawings is to be calculated at 10% p.a. c. They share profits and losses as X 50%, Y 30%, Z 20%.
The Trial Balance of the firm as on 31st March 1996 was as follows.
Debit Balance Furniture Premises Plant & Machinery Purchases Opening Stock Works Managers Salary Office Expenses Rent & Insurance Legal Fees Debtors Balance at bank Drawings: X Y Z
Rs. 22,000 60,000 70,000 2,80,000 42,000 64,000 45,200 10,500 3,500 20,600 43,700 17,000 11,000 9,000 6,98,500
Credit Balance Capital A/c X Y Z Current A/c X Y Z Sales Creditors
Rs. 80,000 50,000 30,000 6,000 12,000 18,000 4,65,000 37,500
6,98,500
Your are informed that:
Stock on 31st march, 1996 is valued at Rs. 36,000 Outstanding expenses are Works Managers salary Rs. 6,000, Rent Rs. 1,000 Prepaid insurance Rs. 500 Machinery of Rs. 2,000 is included in Purchases. Depreciate all fixed assets at 10% Provide for commission receivable Rs. 2,000 On 31st March 1996 goods worth Rs. 5,000 were destroyed by fire and insurance co. Admitted claim for Rs. 2,000. 8. Goods distributed as free samples Rs. 1,000 were not recorded. 1. 2. 3. 4. 5. 6. 7.
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14. Following is the Trial Balance of Vinod and Vikas sharing profits and losses equally. Prepare a Trading and Profit & Loss account for the year ending 31st March, 1996 and a Balance Sheet as on that date after considering the adjustment given below. Trial Balance as on 31st March, 1996
Particulars(Debit) Amount Particulars(Credit) Amount Stock (1-4-1995) 44000 Capital A/c Purchases 170000 Vinod 80000 Returns Inwards 10000 Vikas 80000 Carriage 4000 Sales 320000 Motive Power 6000 Creditors 40000 Wages 56000 Commission 4000 Trade Expenses 4000 Bank Loan 32000 Sundry Debtors 72000 Salaries 38000 Insurance 2400 Postage 3600 Commission 5000 Plant & Machinery 60000 Furniture 16000 Advertising 8000 Office Rent (10 months) 10000 Drawings Vinod 14000 Vikas 6000 Building 24000 Cash in Hand 3000 556000 556000
Adjustments
1. Stock on 31.3.1996 was valued at cost price Rs. 80,000 and market price Rs. 72,000. 2. Depreciate Plant & Machinery and Building at 20% and 10% respectively. 3. Insurance has been paid for one year ending 31.6.1996. 4. Goods withdrawn by Vinod amounting to Rs. 10,000 during the year were not recorded in the
books.
5. Bad debts were Rs. 2000 and an R.D.D. is to be created at 5% on debtors. 6. Goods of Rs. 6000 were purchased on 30.3.1996 and also included in the closing stock, but the
purchase was not recorded in the books of account. Write Answers. G.P. = N.P. = P.C.A. Balance = Tally Amount = 73 BOOK KEEPING & ACCOUNTANCY
H.S.C
OMTEX CLASSES
6 YEAR
TH
15. From the following Trial Balance of Somnath and Ambadas being equal partners, you are required to prepare Trading and Profit & Loss A/c for the year ended 31st March, 1996 and Balance Sheet as on that date after taking into consideration the additional information. Trial Balance as on 31st March, 1996
Particulars(Debit) Amount Particulars(Credit) Amount Opening Stock 60000 Capital A/c Drawings: Somnath 22000 Somnath 1000 Ambadas 18000 Ambadas 1500 Reserve Fund 21600 Insurance 600 Sales 130000 Salaries and Wages 4500 Bills Payable 1000 Carriage 2500 Creditors 16000 Purchase 65000 Reserve for Bad and Doubtful Debts 800 Bills Receivable 600 Returns 500 Rent 3500 Debtors 18000 Returns 1000 Machinery 12000 Travelling Expenses 3000 Cash at Bank 1000 Building 30000 Office Expenses 2700 Advertisement (for 3 years) 3000 209900 209900
Adjustments: 1. Closing stock: cost Rs. 25,000 and market price Rs. 30,000. 2. Allow interest on capital at 10% p.a. 3. Prepaid insurance Rs. 50. 4. Provide for R.B.D.D. at 5% on debtors. 5. Uninsured goods costing Rs. 3000 were destroyed by fire. 6. Outstanding expenses: Salaries Rs. 1000; Rent Rs. 500. 7. Provide depreciation on Machinery at 20%; Building 2 %.
H.S.C
OMTEX CLASSES
6 YEAR
TH
16. Pradeep and Prashant are partners sharing profits and losses in equal ratio. From the following Trial Balance you are required to prepare Trading and Profit & Loss account for the year ended 31st March, 1998 and Balance Sheet as on that date after taking into consideration the additional information. Trial Balance as on 31st March, 1998
Particulars(Debit) Amount Particulars(Credit) Amount Land and Building 44500 Capitals st Plant(Addition on 1 Jan. 98, Rs. 3,000) 9750 Pradeep 60000 Drawings Prashant 40000 Pradeep 3000 Sales 57000 Prashant 2000 Suppliers Account 9500 Opening Stock 26000 Reserve for Doubtful Debts 500 Wages 5000 Outstanding Expenses 500 Purchases 34500 Carriage 700 Office Expenses 2270 Rent, Rates and Taxes 1750 Insurance 480 Motor van 20000 Salaries 1750 Bad debts 950 Customers Account 14600 Cash at Bank 250 167500 167500
Additional Information: 1. 2. 3. 4. 5. Closing stock on 31st March, 1998 was at cost Rs. 40,000 and Market price Rs. 50,000. Provide 10% p.a. interest on Capital. Charge interest on drawings: Pradeep Rs. 100 and Prashant Rs. 150. Depreciate plant at 10% p.a. Prashants withdrawal of goods worth Rs. 1,000 for personal use but not recorded in the books.
H.S.C
OMTEX CLASSES
6 YEAR
TH
17. Given below is the Trial Balance of Sagar and Sindhu who are partners sharing profits and losses in equal ratio. You are required to prepare a Trading and Profits and Losses in equal ratio. You are required to prepare a Trading and Profit & Loss A/c for the year ended 31 st March, 2006 and a balance sheet as on that date after taking into account the given adjustments. Trial Balance as on 31st March, 2006.
Particulars(Debit) Purchases Patent Rights Buildings Opening sock Printing & Stationery Sundry Debtors Wages & Salaries Partners Drawings Sagar Sindhu Audit Fees Sundry Expenses Furniture & Fixtures 10% Investments (Purchased on 1st Oct. 2005) Conveyance Expenses Cash Provident Fund contribution Carriage Inwards Trade Expenses Goodwill Machinery Shop Fittings Bad Debts Bills Receivable
Amount 98000 4000 100000 15000 1750 35000 11000 4500 6500 700 3500 8000 10000 2000 4000 800 1300 2700 20000 20000 18000 250 9000 376000
Particulars(Credit) Capitals Sagar Sindhu Provident Fund Creditors Bank Loan Sales Reserve for Doubtful Debts Purchases Returns General Reserve Commission Bills Payable
Amount 30000 40000 17000 45000 42000 163250 6250 3500 10000 9000 10000
Write Answers. G.P. = N.P. = P.C.A. Balance = Tally Amount =
376000
Adjustments 1. The closing stock at the end of the year was valued at market price Rs. 1,44,000 which is 205 above cost. 2. Commission includes Rs. 1,400 received in advance. 3. Goods worth Rs. 15,000 were sold on 30th March 2006, but not yet recorded in the books of accounts. 4. 1/6th shop fittings and 20% of goodwill were to be written of. The provision for Bad debts was to be maintained @ 5% on debtors. 5. Provide interest on Partners capital @ 10% p.a. and charge interest on drawings @ 12% p.a. 6. Sagar is allowed a commission @ 2% on Gross profit. 7. Machinery and Buildings were to be depreciated at 15% and 205 respectively. Patent Rights and Furniture and Fixtures were valued at Rs. 2,000 and Rs. 5,000 respectively. 8. Bills Receivable include a dishonoured bill for Rs. 2500. An amount of Rs. 2,000 spent on repairs on machinery was wrongly included in machinery account.
H.S.C
OMTEX CLASSES
6 YEAR
TH
18. Asha and Nir0sha are the partners sharing profits and losses equally. You are required to prepare the Trading and profit and loss account for the year ended 31st December, 1997 and a Balance sheet as at that date after making the necessary adjustments. Trial Balance as on 31st December, 1997
Debit Balance Buildings Plant and Machinery Furniture Sundry Debtors Return Inwards Discount Printing and Stationery Insurance Charges Bad debts Salaries Purchases Cash at Bank Stock ( on 1.1.97) Carriage Inwards Legal Charges Ashas Drawings Niroshas Drawings
Amount 70,000 60,000 16,000 28,800 6,000 2,600 1,500 1,600 1,400 19,300 98,000 25,800 20,000 2,500 500 8,000 6,000 3,68,000
Credit Balance Ashas Capital Niroshas Capital Discount Received Loan From Vijay Sales Sundry Creditors Reserve for Bad Debts Return Outward
Amount 80,000 1,00,000 1,800 30,500 1,20,000 30,000 2,000 3,700
3,68,000
Adjustments: 1. The stock on 31.12.97 was of the value of Rs. 44,000 which is less than its market value by 2,000. 2. On 24th December, 1997 stock of the value of Rs. 6,000 was stolen Insurance company admitted the claim for Rs. 4,000 only and paid the amount on 7th Jan 1998. 3. Goods worth Rs. 4,000 were received on 31st December, 1997 and were included in the closing stock, but purchase invoice was omitted to be entered in the books. 4. The partnership firm distributed goods worth Rs. 1,500 as free samples and Asha withdrew goods worth Rs. 3,000 for personal use, but no record was made of the same in the books. 5. Of the sundry Debtors Rs. 800 were bad debts and should be written off. 6. Make reserve for discount at 5% on debtors and creditors. 7. Depreciation Plant and Machinery by 10% and Furniture by 5%. Write Answers. G.P. = N.P. = P.C.A. Balance = Tally Amount = 77 BOOK KEEPING & ACCOUNTANCY
H.S.C
OMTEX CLASSES
6 YEAR
TH
19. Following is the Trial balance of a firm as on 31 st December, 1997 Trial Balance as at 31st December, 1997
Debit Balance Bank Bills Receivable Sundry Debtors Stock on 31.12.96 Purchases(net) Petty cash A/c Wages Salaries Rent (for 10 months) Electricity Charges Drawings A Drawings B Buildings Furniture Carriage Inwards Donations Carriage Outwards Miscellaneous Expenses Printing and Stationery Postage and Telegram Fuel and power
Amount 2,000 8,000 23,000 31,000 1,80,000 4,000 38,300 20,800 1,000 2,180 6,000 4,000 34,000 4,000 2,000 1,000 3,500 1,500 2,300 1,430 1,390 3,71,400
Credit Balance As Capital Bs Capital Bills Payable Sundry Creditors Reserve for bad debts Sales
Amount 25,000 15,000 7,500 33,300 600 2,90,000
3,71,400
Adjustments: 1. Wages include Rs. 3,300 paid for the construction of a part of the building. 2. Provide for outstanding rent 3. Depreciation is to be provided on furniture@ 10% and Building @ 5% 4. Bills Receivable and Bills Payable include dishonoured bills for Rs. 2,000 and Rs. 1,500 respectively. 5. Bad debts to be written off Rs. 500. Provide reserve for doubtful debts @ 5% on debtors. 6. Petty cash A/c shows the amounts transferred from cash book. Actual petty cash expenses are Rs. 3,100. You are required to prepare Trading and profit and loss account for the year ended 31st December 1997 and a balance sheet as on that date. Write Answers. G.P. = N.P. = P.C.A. Balance = Tally Amount = 78 BOOK KEEPING & ACCOUNTANCY
H.S.C
OMTEX CLASSES
6 YEAR
TH
20. From the following Trial Balance of M/s Kale and Gore your are required to prepare Trading and Profit and Loss account for the year ended 31st December, 1997 and the Balance sheet as on that date after taking into account the necessary adjustments. Trial Balance as on 31st December, 1997
Particulars Kales Capital Gores capital Kales Drawing Gores Drawing Stock on 1 1 2004 Bills Receivable Purchases Sales Bills Payable Return In ward Return Outward Plant and Machinery Loose Tools Patents Sundry Debtors Sundry Creditors Cash at Bank Wages Salaries Rent and Taxes Insurance Printing and Stationery Power and Fuel
Debit (Rs.)
Credit (Rs.) 1, 80, 000 1, 50, 000
14, 450 10, 000 2, 00, 000 25, 000 2, 75, 000 4, 00, 000 60, 000 5, 000 4, 500 1, 00, 000 25, 000 25, 000 55, 000 40, 000 47, 550 19, 000 17, 500 7, 500 3, 000 2, 000 3, 500 8, 34, 500
8, 34, 500
Adjustments: 1. Depreciate Plant and Machinery by 5% and Patents by 15%. 2. Provide for Bad and Doubtful debts @ 5% on Sundry debtors. 3. Prepaid Insurance Rs. 750 4. Outstanding expenses a. Salaries Rs. 2,500 b. Wages Rs. 1,000 c. Printing and Stationery Rs. 500. st 5. Stock as at 31 December 1997 Rs. 1,30,000. 6. Kale and Gore have taken goods worth Rs. 2,000 and Rs. 3,000 respectively for their personal use. No entry has been passed in the books. 7. Sales include Rs. 5,000 for goods sent on sale or return basis at 25% profit on cost. Write Answers. G.P. = N.P. = P.C.A. Balance = Tally Amount = BOOK KEEPING & ACCOUNTANCY 79
H.S.C
OMTEX CLASSES
6 YEAR
TH
21. Keshav & Devidas are partners and the Trial Balance and the necessary adjustments of their firm are given below. Trial Balance as at 31st March 1998
Debit Balance Amount Purchases 1,25,225 Sales return 4,250 Debtors 50,200 Opening Stock 28,788 Wages 20,167 Salaries 13,677 Furniture( Balance as on 1.4.98) Rs. 6750 Add: Purchases On 31.2.98 Rs. 700 7,450 Machines 7,500 Bad Debts 315 st Advt. (for 3years w.e.f. 1 Oct. 97) 3000 Investments 9,500 Insurance 320 Drawings 3,000 Keshav 1,500 Devidas Cash and Bank Balances 27,981 3,02,873
Adjustments: 1. Closing Stock Rs. 15,000
Credit Balance Amount Capital 27,000 Keshav 35,000 Devidas Sales 2,05,000 Purchase Returns 3,230 Commission 245 Creditors 21,073 Dividend in Investments 825 Reserve for Doubtful debts 500 Devidas Loan 10,000
3,02,873
2. Depreciation on Machines @ 5% and on furniture @ 10% p.a. 3. Deduct Rs. 200 for bad debts and provide 2% R.D.D 4. Interest on capital (Opening Balance) at 5% p.a. but on drawings at 10% p.a. 5. Keshav is to get 1% commission on Gross profit and Devidas is to be paid at Rs. 2,000 p.a. as a salary. 6. Goods of Rs. 3,000 sold on sale or return basis. Goods are sold at 25% profit on sale. Customer has not yet taken any decision. 7. After considering the adjustment, prepare the Trading, Profit and Loss A/c for the year ending 31st March 1998 and a Balance sheet on that date. Write Answers. G.P. = N.P. = P.C.A. Balance = Tally Amount = 80 BOOK KEEPING & ACCOUNTANCY
H.S.C
OMTEX CLASSES
6 YEAR
TH
22. Pankaj and Bindas are partners sharing profits in the ratio of their capital. Their Trial Balance as on 31.03.1997 is as under. Trial Balance as on 31.3.1997 is as under
Debit Balance Land and Building Plant and Machinery Purchases Wages Opening Stock Carriage Outward Sundry Debtors Interest on Loan Prepaid taxes Salary Commission Loss by fire Travelling Expenses Electricity Pankajs Drawings Bindass Drawings Cash on hand Sales Returns
Amount 1,00,000 30,000 1,20,000 3,500 10,000 400 25,000 250 200 4,500 700 2,000 3.400 650 2,000 3,000 10,000 2,000 3,17,600
Credit Balance Pankajs Capital Bindass Capital Bills Payable Creditors Outstanding commission 10% Loan (taken on 1.7.96) Sales Discount Commission Reserve for bad debts General Reserve
Amount 30,000 50,000 6,000 12,000 500 10,000 2,00,000 1,100 4,000 3,000 1,000
3,17,600
Prepare Trading and Profit and loss A/c for the year ended 31st March 1997 and the Balance sheet as on that date after taking into account the following adjustments. 1. Closing stock cost price Rs. 20,000 and Market price is less than the cost price by 5000. 2. Goods distributed as free samples Rs. 1,000. 3. Purchase returns of Rs. 2,000 on 30th March, 1997 have not been recorded in the books. 4. Wages included Rs. 1,000 paid for installation of Plant and Machinery. 5. Bills payable include a dishonoured bill of Rs. 1,000 6. Depreciate Machinery by 10% and Land & Building by 5% 7. Reserve for Bad debts is to be maintained at 5% on Debtors. 8. Sales include, sale of Rs. 6,000 on approval basis. The cost of such goods is Rs. 5,000
H.S.C
OMTEX CLASSES
6 YEAR
TH
23. Dalal & Raja are partners sharing profit and losses equally. From the following Trial Balance of the firm, prepare Trading a/c Profit and Loss A/c and Balance sheet for the year ending 31.12.1997. Trial Balance as on 31.12.1997
Debit Stock Purchases Sales Return Debtors Wages Royalties Furniture Machinery Advertisement for 4 years Salary Provident fund contribution Provident fund investment Insurance Cash Drawings : Dalal Raja
Rs. 20,000 1,30,200 500 20,000 6,000 1,000 5,000 30,000 4,000 3,000 500 2,000 500 3,000 3,500 1,500 2,30,700
Credit Capital Accounts: Dalal Raja Current Accounts Dalal Raja Sales Purchase Return Commission Provident Fund Interest on Provident fund investments. Reserve for Doubtful debts Creditors
Rs. 15,000 15,000 2,000 2,000 1,70,500 3,200 300 2,000 200 500 20,000
2,30,700
Adjustments. 1. Closing stock: Cost price Rs. 25,000. Market Price Rs. 30,000/2. Dalal has taken goods worth Rs. 500 for his personal use. 3. Goods amounting Rs. 3,000 were sold and dispatched on 27.12.1997 but no entry was made in the sales book. 4. Prepaid insurance Rs. 100. 5. Depreciation Furniture by 15%, Machinery by 20% 6. Write off bad debts Rs. 400/- and provide for reserve for doubtful debts at 3% on debtors.
H.S.C
OMTEX CLASSES
6 YEAR
TH
24. Hira and Manik are partners in a firm sharing profits and losses in the ratio of their opening capitals. Below given is their Trial Balance as on 31st March 1998. Trial Balance as at 31st March 1998
Debit Plant and Machinery Opening Stock Purchases Freehold Land & Building Carriage inwards Carriage outwards Wages Sundry Debtors Salaries Furniture Trade Expenses Return Inwards Advt. Suspense A/c Discount Partners Drawings: Hira Manik Bills Receivable Insurance Bad debts Cash at Bank
Rs. 50,000 30,000 80,000 85,000 1,700 2,500 16,000 50,000 12,000 18,000 6,000 950 12,500 900 3,000 2,000 20,000 1,200 1,000 5,000 3,97,750
Credit Sales Discount Sundry Creditors Bills Payable Hiras Loan A/c Capital A/c Hira Manik
Rs. 2,40,000 2,000 20,000 10,750 50,000 50,000 25,000
3,97,750
You are required to prepare the Trading and Profit and Loss account of the firm for the year ended 31 st March 1998 and the Balance sheet as at that date after taking into consideration the following adjustments. 1. Closing stock Rs. 45,000 2. Depreciate Plant @10% p.a. and Furniture @20%p.a. 3. Appreciate Freehold Land & Building to Rs. 90,000 4. Bad debts reserve to be written off against 2 % on sundry debtors. 5. Advertisement Suspense A/c is to be written off against revenue over five years. 6. Partners Drawings are to bear interest @10% p.a. amounts were withdrawn evenly throughout the year. 7. Annual charge for insurance is Rs. 1,000 the balance represents amount paid in advance 8. Hira gave loan @ 10% to the firm on 30th September, 1997. 9. Manik was to be allowed a partnership salary of Rs. 250/- p.m. Write Answers. G.P. = N.P. = P.C.A. Balance = Tally Amount = 83 BOOK KEEPING & ACCOUNTANCY
H.S.C
OMTEX CLASSES
6 YEAR
TH
25. Sridevi & Jayaprada were partners sharing profits and losses in ratio 3/5 & 2/5. Interest on Capital was allowed @ 5% p.a. but interests on drawings were ignored. The following balances of accounts were given on 30.9.1997.
Debit Opening Stock Sundry Debtors Purchases Wages Salaries Office Expenses Conveyance Insurance Plant & Machinery Return Inward Land & Building Cash at Bank Bills Receivable Drawings : Sridevi Jayaprada
Rs. 20,000 28,200 40,000 8,500 2,700 2,446 1,300 1,800 30,000 3,500 40,000 2,654 12,000 4,200 1,200 1,98,500
Credit Return Outward Sundry Creditors Sales Reserve for Bad Debts Capital Account: Sridevi Jayaprada Loan @ 10% p.a. (Taken on 1.4.97)
Rs. 2,500 31,600 70,000 400 70,000 20,000 4,000
1,98,500
You are given the following additional information. 1. Closing stock was valued at Rs. 52,000/2. Wages unpaid was Rs. 2,000/- & outstanding salaries were Rs. 1,600/3. Bills Receivable includes a dishonoured bill of Rs. 2,000 4. Write off Rs. 200/- as further bad debts and provide 6% reserve for bad debts on Sundry debtors. 5. Depreciation Plant & Machinery @ 10% and Land & Building @ 5% 6. Goods distributed as free samples amounted to Rs. 2,000 were not recorded. 7. Sridevi was entitled to a salary @ Rs. 500 p.m. and Jayaprada was entitled to a commission of 5% on Gross profit. 8. Carriage inward included Rs. 1, 000 paid for transport charges and octroi on new machinery purchases on 1- 10 1996.
H.S.C
OMTEX CLASSES
Rs. 4,000 4,000 21,000 12,600 8,000 12,000 5,000 500 400 1,260 7,500 560 300 5,080 9,000 460 240 1,750 400 1,240 1,600 96,890 Credit Balance Kaveri Capital Narmadas Capital Bills Payable Creditors Purchase Returns Sales Rs.
6 YEAR
TH
26. Prepare Trading and Profit & Loss account for the year ended 31st December, 1996 and Balance sheet as on that date from the following Trial Balance of Kaveri and Narmada
Debit Balance Kaveris Drawings Narmadas Drawings Land & Building Plant & Machinery Stock(1.1.1996) Purchases Wages Carriage Outward Carriage Inward Coal Salary Rent, Rates & Taxes Discount Allowed Cash & Bank Balance Sundry Debtors Printing & Stationery Bad Debts Advertisement Sales Return Furniture Bills Receivable
12,000 20,000 6,790 14,600 500 43,000
96,890
Adjustments: 1. Closing Stock is valued at Rs. 10,000/- at cost whose market value was Rs. 15,000/2. Depreciation Land & Building and Plant & Machinery by 10% & Furniture by 5%. 3. Provision for doubtful debts should be maintained at 5% on sundry debtors. 4. Kaveri has withdrawn goods for his personal use Rs. 500 for which no entry is passed. 5. Fire occurred in the Godown and goods worth Rs. 5, 000 were destroyed, but Insurance Company admitted Claim for Rs. 3, 500. 6. Salary outstanding Rs. 1,500. 7. Wages outstanding Rs. 1,000 and 8. Rates prepaid Rs. 60.
H.S.C
OMTEX CLASSES
6 YEAR
TH
27. Kamesh and Mani are partners sharing profits and losses in equal ratio. From the following Trial Balance you are required to prepare Trading and profit and Loss Account for the year ended 31 st December, 2005 and Balance sheet as on that date after taking into consideration the additional information.
Debit Balance Land and Building Plant (addition on 1st October, 2005 Rs. 3,000) Drawings: Kamesh Mani Opening Stock Wages Purchases Carriage inwards Office expenses Rent, Rates and Takes Insurance Motor Van ( addition on 1st June Rs. 10, 000) Salaries Bad debts Debtors Cash at Bank
Amount Credit Balance 44, 500 Capitals Kamesh 9, 750 Mani Sales 3, 000 Sundry Creditors 2, 000 Reserve for Doubtful Debts 26, 000 Outstanding Expenses 5, 000 34, 500 700 2, 270 1, 750 480 20, 000 1, 750 950 14, 600 250 1, 67, 500
Amount 60, 000 40, 000 57, 000 9, 500 500 500
1, 67, 500
Additional Information: 1. Closing stock on 31st December, 2005 was at cist Rs, 40, 000/- and Market price Rs. 50,000/2. Depreciate Plant at 10% p.a. and Land and Building @ 20% p.a. 3. Mani withdrawal of goods worth Rs. 1, 000 for personal use but not recorded in the books. 4. Depreciate Motor van by 10% p.a. 5. The goods for Rs. 5, 600 purchases and received on 25th December, 2002 were not recorded in the purchase book. 6. Goods worth Rs. 3, 000 were destroyed by fire but insurance company admitted claim for the full amount. 7. Insurance is paid for the year ended 31st March 2005.
H.S.C
OMTEX CLASSES
6 YEAR
TH
28. From the following Trial Balance of SKY Traders, you are required to Prepare Trading and profit and Loss Account for the year ended 31st March, 2005 and the Balance sheet as on that date. Trial Balance as on 31st March 2005
Debit Balance Machinery Wages Purchases Stock ( 1- 4 - 2004 ) Carriage inwards Office Expenses Leasehold property Furniture Insurance Bad debts Discount Rent ( 10 month) Drawing: Maridas Nambirajan Packing expenses Cash at Bank Salaries Bills receivable Sundry debtors Cash in hand
Amount 12, 000 4, 000 41, 000 7, 000 400 2, 600 10, 000 2, 000 2, 000 250 350 1, 000 4, 000 6, 000 200 5, 700 4, 000 6, 000 5, 300 3, 500 1, 17, 300
Credit Balance Discount Sales Unpaid Salaries Capital: Maridas Nambirajan Creditors Bills Payable Return Outwards
Amount 400 60, 000 200 30, 000 15, 000 6, 900 4, 300 500
1, 17, 300
Adjustments: 1. Maridas and Nambirajan share profits and losses in the ratio 3: 2. 2. On 31st March 2005 Stock was valued at Rs. 11, 000/3. Rent is payable for two months. 4. On 29th March, 2005 goods were sold to a customer on credit for Rs. 2, 000 no entry has been passed in the books for sale. 5. Machinery to be depreciated at 10% p.a. 6. R.D.D is to be created at 5% on sundry debtors.
H.S.C
OMTEX CLASSES
6 YEAR
TH
29. From the following Trial Balance of Shyam and Sundar, You are required to prepare a Trading and Profit and Loss account for the year ended 31st December, 2002 and Balance sheet as on that date after taking into consideration the additional information. They share profits and losses in their capital ratio. Trial Balance as on 31st December, 2002
Particulars Drawings: Shyam Sundar Opening Stock Purchases Office Salaries Royalties Trade Expenses Advertisement Wages and Salaries Cash in Hand Debtors Bad Debts Investments Motor Van Furniture Office Rent Plant and Machinery Freehold Property Bills Receivable Discount
Amounts 2, 000 1, 000 12, 000 80, 000 6, 000 2, 000 1, 400 5, 200 10, 400 8, 000 50, 000 400 16, 000 30, 000 10, 000 3, 400 24, 000 16, 000 4, 000 1, 600 2, 83, 400
Particulars Capital Accounts: Shyam Sundar Creditors Sales R.D.D Return Outwards Bills Payable Reserve Fund
Amounts 40, 000 60, 000 30, 000 1, 40, 000 1, 000 2, 400 6, 000 4, 000
2, 83, 400
Adjustments: 1. Closing stock was valued at Rs. 17, 600 2. Audit Fee for the year was outstanding Rs. 2, 400 3. Create R.D.D at 5% on Debtors. 4. The goods for Rs. 5, 600 purchased and received on 25th December, 2002 were not recorded in the purchase book. 5. Depreciate freehold property at 10% and Motor Van at 25%
H.S.C
OMTEX CLASSES
6 YEAR
TH
30. Ram and Sham are partners sharing Profits & Losses in the ratio of 2:3. Their trial balance as on 31st March, 2005 is given below. You are required to prepare Trading A/c and Profit & Loss A/c For the year ending 31st March, 2005 and a Balance sheet as on that date after taking into account the given adjustments. Trial Balance as on 31st March, 2005
Particulars Purchases Patent rights Buildings Stock(1-4-2004) Printing & Stationery Sundry Debtors Wages & Salaries Audit Fees Sundry Expenses Furniture 10% investment (purchased on 1-10-2004) Cash Provident fund contribution Carriage inward General expenses
Amounts 98, 000 4, 000 1, 00, 000 15, 000 1, 750 35, 000 11, 000 700 3, 500 8, 000 10, 000 4, 000 800 1, 300 2, 700 295750
Particulars Capitals: Ram Sham Provident Fund Creditors Bank Loan Sales Reserve for doubtful debts Purchase Returns.
Amounts 30000 40000 7000 45000 12000 158000 250 3500
295750
Adjustments
1. Closing stock is valued at cost Rs. 15, 000 while its market price Rs. 18, 000. 2. On 31st December 2004 the stock of stationery was Rs. 500. 3. Reserve for bad and doubtful debts at 5% on debtors. 4. Depreciate building at 5% and Patents at 10% 5. Interest on capital is to be allowed @5%. 6. Goods worth Rs. 10, 000 were destroyed by fire. The insurance company admitted a claim for Rs.
8, 000/-.
H.S.C
OMTEX CLASSES
6 YEAR
TH
CH. 7. OBJECTIVES [Q. 1: 20 MARKS]

SET I Q1. Answer Any four of the following. A. Answer the following. (5) 1. What is Balance Sheet? 2. Who is co venture? 3. What is Super Profit? 4. What is Endorsement of Bill? 5. What is Good will of the firm. B. Write word/term/phrase which can substitute each of the followings: 1. Reputation of a firm expressed in terms of money. 2. Payment of expenses before they have become due. 3. Payment of bill of exchange before its due date at rebate. 4. The person on whom the bill of exchange is drawn. 5. The account that is credited when depreciation is charged. C. Match the pairs. (5) A 1. 2. 3. 4. 5. Depreciation Dishonour of bill Joint Venture Goodwill Co Venturers (20 marks)
(5)
B 1. Temporary Partners 2. Intangible Asset 3. Wear and tear 4. Notary public 5. Temporary partnership 6. Tangible Asset D. Select the most appropriate alternative from those given below: (5) 1. Debit Balance in Profit and Loss Account shows _______________ a. Net profit b. Gross profit c. Net loss d. Gross loss 2. A bill of exchange must be accepted by _______________ a. A drawer b. A payee c. An endorsee d. A drawee 3. At the end of the financial year balance of Depreciation account is transferred to _______ a. Depreciation account b. Asset account c. Trading account d. Profit and loss account. 4. In the absence of partnership deed the partners share the profit and loss of the firm ____ a. In the ratio of capital b. Equally c. As per rights in management d. On the basis of experience. 5. ____________ has to ultimately bear the noting charges. a. Drawer b. Drawee c. Endorser d. Bank
H.S.C
OMTEX CLASSES
6 YEAR
TH
E. State True / False with reasons. (Any Two) (5) 1. Under fixed capital method for each partner two accounts are maintained. 2. Under fixed instalment method depreciation is charged on the diminishing value of the asset. 3. Interest on partners drawings is debited to Profit and loss appropriation account. F. Prepare a bill of exchange from the following information: Drawer: Vilas Patil, 21. M.G. Road, Pune Drawee: Vikas Pawar, 31. S.V. Road, Nasik. Payee: Viraj Potade, 41, A.B. Road, Sholapur, Period: 2 months Amount: Rs. 7,500/st Date of Bill: 1 January, 2007. rd Date of acceptance: 3 January, 2007. SET II Q1. Answer any four of the following. (20 marks) A. Answer the following. (5) 1. Under single entry system if the assets is undervalued, how it is treated in the statement of profit / loss? 2. What is the minimum, and maximum number of partners allowed by the Indian Partnership Act, 1932? 3. What is meant by dishonouring of a bill? 4. What do you mean by revenue receipts? 5. Which Account is credited when depreciation is charged? B. Write word/term/phrase which can substitute each of the followings: (5) 1. A bill before acceptance. 2. Amount by which book value of fixed assets exceeds its selling price. 3. Expenses due but not paid. 4. Partners of joint venture business. 5. Normal Rate of Return x Capital employed. C. Match the pairs. (5) 1. 2. 3. 4. 5. A Interest on partners loan Excess of income over expenditure Legal due date Printing and Stationery Goods sold by consignee B 1. 2. 3. 4. 5. 6. 7. 8. Deficit Before adding three grace days Not Exceeding 6% After adding three grace days. Surplus Trading Account Debited to Consignees Account. Profit / loss account.
D. Select the most appropriate alternative from those given below: (5) 1. The Indian Partnership Act came into force in ____________________. a. 1942 b. 1932 c. 1953 d. 1956 2. Excess of assets over liabilities is termed as ___________________. a. Endowment Fund b. Capital Fund c. Special Fund d. None of these 3. Fixed Instalment method of depreciation is also called as _______________ a. Straight Line Method. b. Reducing Balance Method.
H.S.C
OMTEX CLASSES
6 YEAR
TH
c. Written down value method. d. Depreciation Fund Method. 4. Drawing a fresh bill in cancellation of old bill is called as _________________. a. Retirement of Bill. b. Discounting of bill. c. Endorsement of Bill. d. Renewal of bill. 5. When the co ventures incur the joint venture expenses from his pocket _________ A/c is credited. a. Joint Venture A/c b. Joint Bank A/c c. Co ventures A/c d. Consignees A/c E. State True / False with reasons. (Any Two) (5) 1. The liability of a partner is limited to his capital contribution. 2. In the Absence of partnership deed partners share the profit and loss equally. 3. A bill of exchange is discounted on due date. F. Prepare a bill of exchange from the following information: Drawer: Vilas Patil, 44, M.G. Road, Nanded. Drawee: Pankaj Pawar, 70 Bhavani Galli Solapur. Payee: Paresh Patkar, Rampur. Period: 40 days. Amount: Rs. 2,800/Date of Acceptance: 28th March, 2002. Accepted: 29th March, 2002. SET III Q1. Answer Any four of the following. (20 marks) A. Answer the following. (5) 1. Which types of expenses are debited to Trading Account? 2. What are Not for Profit Concerns? 3. How are drawings treated in preparing statement of Profit or Loss? 4. Who is an endorsee? 5. What is depreciation? B. Write the word/term/phrase which can substitute each of the following statements? 1. Expenses paid in advance for the period which has not expired. 2. Fees paid to the Notary Public for noting of a bill. 3. Fees received for the entire life in lump sum on one occasion only from the members. 4. The relationship between persons who have agreed to share profit or loss in Joint Venture business. 5. A statement prepared to find out the closing capital at the end of the year. C. Match the following pairs.
A Group
1. 2. 3. 4. 5.
Not for profit concerns. Fixed Capital method. Unexpired expenses. Temporary partnership Pure single entry system.
a. b. c. d. e. f. g. h.
B Group Capital account of partner Current account of partner Joint venture Asset Liability Only Personal account Profit and Loss account. Income and expenditure account.
D. Select the correct choice and complete the statement. 1. The Indian Partnership Act is in force since ____________ a. 1932 b. 1942 c. 1952 d. 2002 2. Normally, Receipts and payments account shows ____________ balance.
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a. Debit b. Credit c. Nil d. Overdraft 3. Excess of opening capital over the closing capital is considered as a. Income b. Profit c. Gain d. Loss 4. Making payment of the bill before the due date is known as ____________ of a bill. a. Retirement b. Honouring c. Dishonouring d. Renewal 5. If two or more persons come together to carry on a business activity for a short period, it is known as ____________ a. Joint venture b. Consignment c. Partnership firm. d. Co operative society. E. State True or False with reasons. 1. The Receipts and payments account record receipts and payments of revenue nature only. 2. Scrap value of asset reduces the amount of annual depreciation. F. Prepare bill of exchange from the following details. 1. Drawer : Vilas Patil, 44, M.G. Road, Nanded. 2. Drawee : Pankaj Pawar, 70, Bhavani Galli, Solapur. 3. Payee : Ramachandra Rampure, Rampur. 4. Period : 60 days. 5. Date of Bill : 28th January, 2005 6. Date of Acce. : 29th January, 2005 7. Amt. of Bill : Rs. 2,800. SET IV Q1. Attempt any four of the following. A. Answer in one sentence each. 1. What is dishonour of bill? 2. What is the fixed instalment method of depreciation? 3. What does a credit balance on the Joint Venture Account show? 4. What is an average profit? 5. What do you mean by statement of Affairs? B. Write the word/term/phrase which can substitute each of the following statement: 1. A partnership for specific purpose and for temporary period. 2. List of debit and credit balances of the ledger accounts. 3. A person who accepts the bill. 4. Written agreement among the partners. 5. The balance which cannot be recovered from the debtors. C. Match the following pairs.
1. 2. 3. 4. 5. Group A Co - Venturer Rebate Credit balance of Income & Expenditure Account Dormant Partner Trading Account a. b. c. d. e. f. g. h. Group B Limited liability Surplus Temporary partner Retirement of a bill Deficit Does not take active part in the business Account showing the net profit / net loss Power and Fuel / Gross profit.
D. Select the most appropriate alternative from hose given below each statement. 1. The interest on capital of a partner is _______ to profit & loss account. a. Credited b. Added c. Debited d. Divided 2. If fixed capital method is adopted, Net profit is transferred to _______ account of the partner. a. Current b. Capital c. Balance sheet
H.S.C
3.
OMTEX CLASSES
6 YEAR
TH
E.
F.
d. Trading Not for profit organisation prepares _________ to find out its financial position. a. Balance sheet b. Receipts & payments accounts. c. Trading account d. Income & Expenditure account. 4. Wages paid for Installation of Machinery should be debited to the ____________ account. a. Installation b. Wages c. Salaries d. Machinery. 5. There are ___________Parties to a bill of exchange. a. Four b. Three c. Two d. One. State with reason whether the following statements are true of false. 1. Partnership is a non trading concern. 2. A bill of exchange is a negotiable instruments. On 10-Feb-1999, Thomas Kuruvilla, Mira Road, Draws a 3 months bill for Rs. 9000 on Poonam Ghadi, B.M.C. Road, Mahim. Poonam Ghadi, accepts the bill on 15th March, 1999. Draft a bill of exchange.
SET V Q1. Attempt any four of the following. (20 marks) A. Answer in one sentence each. (5 marks) 1. What is depreciation? 2. What do you mean by qualified acceptance? 3. Why is Joint Venture Account opened? 4. What do you mean by capital fund? 5. What is carriage inward? Ans. 1. Gradual continuous and permanent reduction in the value of fixed assets on account of usage, wear and tear or passage of time is called as depreciation. 2. Qualified acceptance means acceptance of a bill of exchange by the drawee with addition of certain phrases that change the effect of the bill as to time, place, amount. 3. Joint venture Account is opened to record the joint venture transactions so as to find out joint venture profit / loss. 4. The excess of assets over liabilities of a non profit organisation is called as capital fund. 5. Carriage Inward is expenditure incurred on purchase of goods that is debited to Trading Account. B. Write the word/term/phrase which can substitute each of the following statement: (5 marks) 1. The account that serves the purpose of P&L A/c for non trading organisation. 2. The system of book keeping under which only one aspect of the transactions is recorded. 3. The person on whom the bill of exchange is drawn. 4. The account that is credited when depreciation is charged. 5. The present value of tangible trading assets less all the liabilities, which is required for valuation of goodwill. C. Match the following pairs. (5 marks)
1. 2. 3. 4. 5. Group A RAM Co Ventures Goodwill Receipts & Payment A/c Single Entry System of Book Keeping. i. j. k. l. m. n. o. p. Group B Intangible Asset Records all cash transactions Trading A/c cant be prepared Current asset Temporary memory Uniformity maintaining accounts. Temporary partners Nominal A/c
H.S.C
OMTEX CLASSES
6 YEAR
TH
D. Select the most appropriate alternative from hose given below each statement. (5 marks) 1. Persons entering into a joint venture are called _______________ a. Partners b. Co partners c. Co venturers d. Consignees 2. The _________ has to ultimately bear the noting charges. a. Drawer b. Endorser c. Bank d. drawee 3. The component of CPU that controls the various input output devices is ___________ a. Memory unit, b. Control unit, c. arithmetic logical unit d. Key board 4. Loss on sale of asset is debited to _______________ a. Assets A/c b. P&L A/c c. Depreciation A/c d. Trading A/c 5. In the absence of partnership deed the partners share profit & loss of the firm ___________ a. In the ratio of capital b. Equally c. As per rights in management d. On the basis of experience E. State with reason whether the following statements are true of false. (5 marks) 1. Income & Expenditure account does not have any opening balance. Ans. True: - Income & Expenditure A/c of Non Trading Organisation is a nominal account prepared from Receipts and payment A/c and additional information. It is like a profit & loss A/c. where there can be closing balance but there is no opening balance. 2. Under fixed Capital method for each partner two accounts are maintained. Ans. True: Under fixed capital method, the amount of partners capital in the trial balance & that in the balance sheet is same and fixed. The appropriations as per the partnership deed are accounted through the current account of the partners. Thus there are two accounts i.e. Capital account and Current account. 3. Under fixed instalment method depreciation is charges on the diminishing value of the asset. Ans. False: Under fixed instalment method, a fixed percentage of the original cost of the asset is charged as depreciation for each year during the life of the asset. Diminishing value of the asset is considered under diminishing balance method of depreciation. F. Drawer: Abhijit Patil, Vikram nagar, Patna. (5 marks) Drawee Tejas Kapare, Kothrud, Pune. Payee Amey Patki, Nagpur. Amount Rs. 7500 Period, 60 days Term After sight Date of Bill Drawn 1st June 2006 th Date of Acceptance 11 June 2006 Accepted bill for Rs. 7000 only.
H.S.C
OMTEX CLASSES
SET VI
6 YEAR
TH
Q1. Attempt any four of the following. (20 marks) A. Answer in one sentence each. (5 marks) 1. What do you mean by scrap value? 2. What are noting charges? 3. What is the relationship between coventurers? 4. What is partnership deed? 5. State the formula for calculating Normal Profit? Ans. 1.Market value of the asset after its use or when it becomes obsolete is known as scrap value. 2. The fees charged by the notary public for noting and protesting the dishonoured bill are termed as noting charges. 3. The relation between coventurers is that of partners. 4. Partnership deed is a written document in which terms of agreement are given in writing. 5. Formula for calculating normal profit = Capital employed x Normal rate of return. B. Write the word/term/phrase which can substitute each of the following statement: (5 marks) 1. Goods returned to the supplier. 2. It is a stick or lever used to change the position of the cursor on a screen. 3. A bill in which the period of the bill is counted from the date of the bill accepted. 4. The receipts that are an unusual nature not arising through named activities of the business. 5. A fixed asset which is not essential for conduct of business. A. Match the following pairs. (5 marks)
1. 2. 3. 4. 5. Group A Partners Salary Subscription received in advance for the current year. Dishonour of bill. Cash in hand. Unsold goods taken over by co ventures a. b. c. d. e. f. g. h. Group B Balance sheet asset side. Current asset. Deducted from gross profit. Credited to joint venture account. Credited to coventurers A/c Noting Charges. Closing balance sheet liability side. Fixed assets.
B. Select the most appropriate alternative from hose given below each statement. (5 marks) 1. Partners drawings are transferred to his __________ a/c under fixed capital method. a. Capital A/c b. Current A/c c. Trading A/c d. Profit and loss A/c 2. Sale of old materials must be shown on credit side of ____________ a. Cash book b. Income and expenditure account c. Balance sheet d. Receipt and Payments account 3. Cost of asset = _____________ a. Purchase price + scrap value b. Purchase price + depreciation c. Purchase price + incidental cost d. None of the above 4. A person in whose favour the bill is endorsed is called ___________ a. Endorsee b. Endorser c. Drawer d. None of the above 5. Expenses incurred by coventurers is debited to ___________
a. b. c. None of the below Consignees account Co venturers account
H.S.C
d.
OMTEX CLASSES
Joint venture account.
6 YEAR
TH
C. State with reason whether the following statements are true of false. (5 marks) 1. Balance sheet is a statement and not an account. Ans. True: - Balance sheet takes into consideration balance of real and personal accounts which are to be carried forward. Nominal accounts are closed by transferring their balances either to trading account or profit & loss account. So balance sheet is a statement prepared on the last date of accounting year and not an account. It is prepared to know the financial position of the concern. 2. Partnership firm enjoys business continuity. Ans. False: - Partnership firm is a personal organisation. Hence it stands dissolved in case of insolvency, insanity or death of any partner. Hence partnership firm does not enjoy business continuity. 3. When the bill is sent to bank for collection, bank A/c is credited. Ans. False: - When bill is sent to bank for collection, bills receivable account is credited. Bills receivable account being a real account the rule applicable is credit what goes out. Hence when bill is sent to bank for collection, bank account is not credited. F. Drawer: Shekhar Desai, Spastic Road, Mahad. (5 marks) Drawee Sharad Verma, Narayan Peth, Pune. Payee Mukund Pande, Panvel. Amount Rs. 5775/Period 50 days Date of Bill Drawn 15th March, 1995 Date of Acceptance 19th March, 1995 (Accepted for only Rs. 5700) SET VII Q1. Attempt any four of the following. (20 marks) A. Answer in one sentence each. (5 marks) 1. Why Partnership Deed in necessary? 2. What is Capital Receipt? 3. What is Single Entry System of Book Keeping? 4. Who is drawer? 5. What is qualified acceptance? B. Write the word/term/phrase which can substitute each of the following statement: (5 marks) 1. Debit balance of trading account. 2. Written terms of agreement between the partners. 3. Summary of actual cash receipts and cash payments. 4. A system in which accounts are prepared from incomplete records. 5. An account opened by coventure in the bank for recording cash transactions. C. Match the following pairs. (5 marks)
1. 2. 3. 4. 5. Group A Goodwill Discount to customers Statement of Affairs Income and Expenditure account Fixed Instalment Method. a. b. c. d. e. f. g. h. Group B Book Debts Sundry Creditors Tangible Asset Intangible Asset Single Entry System Double Entry System Original Cost Not for Profit concerns
D. Select the most appropriate alternative from hose given below each statement. (5 marks) 1. Reserve for discount on ______________ has a debit balance. a. Debtors b. Creditors c. Bills Receivable d. Loan advanced. 2. Income and Expenditure Account is a _______________
H.S.C
OMTEX CLASSES
6 YEAR
TH
a. Personal account b. Real account c. Nominal account d. Asset account 3. Under ____________ single entry system, no records are kept separately for impersonal accounts. a. Quasi b. Pure c. Simple d. Modern 4. There are ___________ parties to a bill of exchange. a. Two b. Three c. Four d. Five 5. Persons who enter into Joint Venture are called ___________ a. Co ventures b. Partners c. Shareholders d. Loan holders E. State with reason whether the following statements are true of false. (5 marks) 1. Goodwill is a tangible asset of the business. 2. Under fixed capital method, current accounts of partners must be opened. F. Drawer: Vikas Jagtap, Guruwar Peth, Satara. (5 marks) Drawee Dadasaheb Kavthekar, Ramnagar, Chapal. Amount Rs. 5555/Period 60 days Date of Bill Drawn 1st February, 2008 Date of Acceptance 3rd February, 2008 SET VIII Q1. Attempt any four of the following. (20 marks) A. Answer in one sentence each. (5 marks) 1. Which types of expenses are debited to trading account? 2. What is Reserve Fund? 3. Who is an endorser? 4. What is non profit organisation? 5. Why is Joint Bank Account opened? B. Write the word/term/phrase which can substitute each of the following statement: (5 marks) 1. A statement showing financial position of the business. 2. Making the payment of bill before its due date. 3. Summary of actual cash receipts and cash payments. 4. The relationship between persons who have agreed to share profit or loss in Joint Venture Business. 5. A Partner who only lends his name to the firm. C. Match the following pairs. (5 marks)
1. 2. 3. 4. 5. Group A Not for profit concerns Fixed capital method. Unexpired expenses Temporary Partnership Pure Single Entry System a. b. c. d. e. f. g. h. Group B Capital A/c. of partner. Current A./c of Partner. Joint venture Asset Liability Only personal A/cs. Profit & Loss A/c. Income and Expenditure A/c.
D. Select the most appropriate alternative from hose given below each statement. (5 marks) 1. Reserve for discount on ______________ has a debit balance. a. Debtors b. Creditors c. Bills Receivable
H.S.C
2.
OMTEX CLASSES
6 YEAR
TH
d. Loan advanced. Income Statements and Balance Sheet are prepared in a systematic and scientific manner under ________________ a. Double Entry System. b. Single Entry System c. Partial Entry System. d. Indian System. 3. Before accepting a bill, it is called a _________ a. Note b. Draft c. Hundi d. Request. 4. Valuation of goodwill depends upon ________ capacity of business. a. Normal b. Repaying c. Earning d. Capital 5. If two or more persons come together to carry on a business activity for a short period, it is known as ___________ a. Joint venture b. Consignment c. Partnership d. Stock exchange E. State with reason whether the following statements are true of false. (5 marks) 1. Scrap value of asset reduces the amount of annual depreciation. 2. When the amount of the bill is paid on the due date, it is said to be retired. F. Prepare bill of exchange from the following details. Drawer Shekhar Desai, Shastri Road, Mahad. (5 marks) Drawee Sharad Verma, Narayan Peth, Pune. Amount Rs. 3500/Period 3 months. Payee Mukund Pande, Panvel Date of Bill Drawn 21st June, 2007 SET IX Q1. Attempt any four of the following. (20 marks) A. Answer in one sentence each. (5 marks) 1. What is Balance Sheet? 2. What is Single Entry System? 3. What do you mean by Fixed Instalment Method? 4. What is Good will? 5. When Joint Bank A/c is opened? B. Write the word/term/phrase which can substitute each of the following statement: (5 marks) 1. A Partner who lends only his name to the firm. 2. Concerns established for providing services. 3. Profit earned over and above normal profit. 4. A temporary partnership without firm name. 5. A person who endorses the bill. C. Match the following pairs. (5 marks)
1. 2. 3. 4. 5. Group A Unpaid expenses Single Entry System Computer Co Venturer Maker of a bill a. b. c. d. e. f. g. h. Group B Electronic device Partnership firm Drawee Asset side Unscientific Liability side Drawer Joint venture
H.S.C
OMTEX CLASSES
6 YEAR
TH
D. Select the most appropriate alternative from hose given below each statement . (5 marks) 1. Subscription received in advance during the accounting year is ____________ a. an income b. an expense c. an asset d. a liability 2. Depreciation is charged only on the ____________ a. Current asset b. Intangible assets c. Immovable assets d. Fixed assets 3. Brain of computer is _____________ a. Micro processor (march 2008) b. RAM c. DRAM d. DOS 4. Unsold stock of Joint Venture taken over by Co venturer is credited to ___________ a. Co venturers A/c b. Joint Venture A/c c. Joint Bank A/c d. Stock A/c 5. A one months bill drawn on 31st January, 2007 will be matured on ___________ a. 3rd March, 2007 b. 28th February, 2007 c. 29th February, 2007 d. 2nd March, 2007 E.
State with reason whether the following statements are true of false .
1. 2. Receipts and Payments A/c is a Nominal A/c Drawee has no right to discount the bill with Bank.
(5 marks)
F.
Prepare bill of exchange from the following details.

Shri Amar Patil, Guruwar Peth, Karad, draws a Two months bill on Mehul Maniyar, Mul, payable to Yogesh Ghatkar, CIDCO, Aurangabad, on 31st December, 2007 for Rs. 9,500. nd Shri Mehul Maniyar accepted it on 2 January, 2008. SET X
(March 2009 Paper)

Q1. Attempt any four of the following. (20 marks) A. Answer in one sentence each. (5 marks) 1. What is Statement of Profit or Loss? 2. What is Reducing Balance method? 3. What is the Method of Valuation of Goodwill? 4. What do you mean by Debit balance of Joint venture account? B. Write the word/term/phrase which can substitute each of the following statement: (5 marks) 1. The balance which cannot be recovered from the debtors. 2. An accounting system where rules of debit and credit are not followed. 3. Money value of business reputation. 4. A person entered into a joint venture. 5. The Gifts received from legal representative as per the will of a deceased person. C. Match the following pairs. (5 marks)
1. 2. 3. 4. 5. Group A Opening Stock Fixed instalment method Software Joint Bank Account Subscription a. b. c. d. e. f. g. h. Group B Amount of depreciation remains constant. Trading account Revenue income Capital income Balance sheet Converting symbolic language Separate set of books Utility programme
H.S.C
1.
OMTEX CLASSES
Interest on the capital of partner is debited to _______________ a. Trading account b. Profit and loss account c. Partners capital account d. Partners current account Computer is a / an ______________ a. Mechanical device b. Automation device c. Electronic device d. Electric device Joint venture is a ________________ a. Trading concern b. Non trading concern c. Religious concern d. Public concern A donation received for a specific purpose is a _______________ a. Capital receipt b. Revenue receipt c. Liability d. Asset
6 YEAR
TH
D. Select the most appropriate alternative from hose given below each statement.
(5 marks)
2.
3.
4.
5.
A bill drawn and accepted on 12th June 2007 for two months will be due for payment on ___________ th a. 12 August, 2007 b. 15th August, 2007 c. 16th August, 2007 d. 14th August, 2007 (5 marks)
E.
State with reason whether the following statements are true of false. 1. 2.
Non commercial concerns with no profit base prepare income and expenditure account in place of profit and loss account. Noting charges are bone by Drawer. (5 marks)
F.
Prepare bill of exchange from the following details. 1. 2. 3. 4. 5. 6. 7. 8. Drawer Drawee Payee Amount Period Date of Bill Accepted on Accepted for : Mrs. Archana Patil, Vikram Nagar, Patan. : Mrs. Nalini Maniyar, Jalaram Krupa, Mulund.
: Mrs. Sugandhi Ghatkar, Mangal Yog, CIDCO, Aurangabad. : Rs. 17,575. : 60 days. : 28 December, 2007. : 2 January, 2008. : 90 days.
nd th
OMTEX WISHING YOU ALL THE VERY SUCCESS IN YOUR FORTH COMING BOARD EXAMINATON
B ISMILL AH
H.S.C
Dr Particulars To Opening Stock To Purchases (-) Returns To wages/ Wages & Salaries To Productive wages To Octroi Duty
OMTEX CLASSES
Format of Trading Account
Amount Particulars (Rs.)
6 YEAR
TH
Cr Amount (Rs.)
To Royalties/Royalties on purchase
To carriage inward To cleaning Charges To Factory Expenses To Motive Power To lighting & heating To Power & Fuels To factory insurance To custom duty To Factory electricity To Factory Manager expenses To Factory Rent To Factory Repairs To wages & Salaries To carriage To carriage on purchases To freight Charges To excise duty To Import duty To dock Charges To Cartage charges To Manufacturing expenses To Gas, Fuel To coal & Coke
Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx
By Sales (-) Returns By Goods loss by fire By Goods lost by theft By Goods Withdrawn by partner By Goods distributed as free samples By Closing Stock
Xxx Xxx Xxx Xxx Xxx Xxx Xxx
To Gross Profit c/d
Xxx By Gross loss c/d Xxx
Xxx Xxx
H.S.C
Dr Particulars
OMTEX CLASSES
Format of profit & loss Account
Amount Particulars (Rs.)
6 YEAR
TH
Cr Amount (Rs.)
To Gross loss b/d To salaries To carriage outward To sundry expenses To printing & Stationery To electricity charges To miscellaneous expenses To advertisement To office expenses To office rent To office insurance To Royalty on sales To salary & Wages To Commission To Interest To Discount To Bad Debts (+) F.B.D. (+) N.R.D.D. (-) O.R.D.D. To entertainment expenses To Telephone Charges To Rent & Rates To Sales Tax. To Postage & Telegram To Office Manager Salary To Unproductive Wages To freight on sales To legal fees To Delivery van expenses To conveyance Expenses To Petty Cash expenses To Administrative expenses To Refreshment Expenses To loss on sale of asset To publicity expenses To loading charges To depreciation To loss on sale of assets
Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx
By Gross Profit b/d By income received By commission By interest By discount By premium By Rent By Sundry receivable By appreciation By Profit on sales of Assets By Sale of scrap
Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx
To net profit c/d
Xxx Xxx
Xxx Xxx
H.S.C
Dr Liabilities
OMTEX CLASSES
Format of Balance Sheet
Amount Assets (Rs.)
6 YEAR
TH
Cr Amount (Rs.)
Capital A/c A B Current A/c A B Reserves General Reserves Fund Reserve Fund Loan Loan from partners Bank Loan Bank overdraft Sundry Creditors Bills Payable Outstanding expenses Income received in advance
Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx xxx xxx xxx
Good will Land & Buildings Free hold Premises Machinery Furniture Lease Hold Premises Office Equipments Sundry Debtors Cash in hand Cash at Bank Bill Receivable Live stock Shares & securities Prepaid expenses Loan Given Computer Copy right Patients Trade Mark Brand Name Loose Tools Fittings Fixed assets Current Assets Vehicles Income receivable Closing Stock Insurance claim receivable Patents & Patterns Premises
Xxx
Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx

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H.S.

CH. 1. VALUATION OF GOODWILL [Q. 2 (A): 5 MARKS]

1 BOOK KEEPING & ACCOUNTANCY

2 BOOK KEEPING & ACCOUNTANCY

[Ans. Rs. 70,326]

19. The following balance sheet of Kantilal, Chandrakant.

Calculate Goodwill at 2 years purchase of average profit.

[Ans. Rs. 1, 21,200]

4 BOOK KEEPING & ACCOUNTANCY

Year Profits Rs.

HOME WORK SECTION

Calculate the goodwill of the firm.

[Ans. Rs. 2,00,000]

6 BOOK KEEPING & ACCOUNTANCY

CH. 2. COMPUTER AWARENESS [Q. 2 (B): 5 MARKS]

9 BOOK KEEPING & ACCOUNTANCY

CH. 2. BILLS OF EXCHANGE [Q. 3: 12 MARKS]

ii. iii. iv. v.

11 BOOK KEEPING & ACCOUNTANCY

OMTEX CLASSES Pro Forma of a bill of exchange

To ___________________ (Drawees Name) ___________________ ___________________ (Drawees Address)

12 BOOK KEEPING & ACCOUNTANCY

14 BOOK KEEPING & ACCOUNTANCY

15 BOOK KEEPING & ACCOUNTANCY

16 BOOK KEEPING & ACCOUNTANCY

17 BOOK KEEPING & ACCOUNTANCY

18 BOOK KEEPING & ACCOUNTANCY

29. Journalise the following transactions in the books of Kailash.

30. Journalise the following transactions in the books of Rahul.

19 BOOK KEEPING & ACCOUNTANCY

20 BOOK KEEPING & ACCOUNTANCY

CH. 3. DEPRECIATION [Q. 2: 10 MARKS]

21 BOOK KEEPING & ACCOUNTANCY

22 BOOK KEEPING & ACCOUNTANCY

23 BOOK KEEPING & ACCOUNTANCY

24 BOOK KEEPING & ACCOUNTANCY

25 BOOK KEEPING & ACCOUNTANCY

CH. 4. JOINT VENTURE ACCOUNTS [Q. 4: 12 MARKS]

26 BOOK KEEPING & ACCOUNTANCY

27 BOOK KEEPING & ACCOUNTANCY

ventures. 29 BOOK KEEPING & ACCOUNTANCY

30 BOOK KEEPING & ACCOUNTANCY

31 BOOK KEEPING & ACCOUNTANCY

32 BOOK KEEPING & ACCOUNTANCY

34 BOOK KEEPING & ACCOUNTANCY

35 BOOK KEEPING & ACCOUNTANCY

CH. 5. SINGLE ENTRY SYSTEM [Q. 5: 10 MARKS]

2. Statement of affairs as on 31.03.07 taking in to consideration the following:

38 BOOK KEEPING & ACCOUNTANCY

Partner ship firm

39 BOOK KEEPING & ACCOUNTANCY

40 BOOK KEEPING & ACCOUNTANCY

41 BOOK KEEPING & ACCOUNTANCY

42 BOOK KEEPING & ACCOUNTANCY

CH. 6. FINAL ACCOUNTS OF NPO

1050 6000 2500 42100

43 BOOK KEEPING & ACCOUNTANCY

44 BOOK KEEPING & ACCOUNTANCY

45 BOOK KEEPING & ACCOUNTANCY

Amount 4160 800 1200 200 2500 1850 900 11610

46 BOOK KEEPING & ACCOUNTANCY

Amount 352 2738 3000 4000 275 501 90 2000 200

220 2332 3000 13156

To _________ (Drawees Name) _ ___________ (Drawees Address)