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intuitions academia (Imparting Education To Lives) FY Bcom 2011-12 Fundamentals of Accountancy Chapter 1 . Accounting Standards Questions based on AS-1:- Q.1 Which different accounting policies may be adopted in the areas of method of depreciation. Q.2 Which different accounting policies may be adopted in the areas of valuation of stock. Q.3 Comment on the basis of AS-1 on the following – Jyotiba phule trust sent a copy of final accounts to all its members. The managing trustee sent a separate letter to each member containing the note on the accounting policies followed for preparing the final A/c’s. Q.4 Comment on the basis of AS-1 on the following – The accounting policies for recording income & expenses were given below the Income & Expenditure A/c & the accounting policies for recording assets & liabilities were given below the Balance Sheet by the Gyaneshwar Trust. Q.5 Comment on the basis of AS-1 on the following – Abhishek & Co. prepares its accounts on cash basis. Q.6 Comment on the basis of AS-1 on the following – Ketan & Co. having sales of Rs. 100 crores shows an item of expenditure under a separate head of account only if it exceeds Rs. 5,000. All such items below Rs. 5,000 each are combined together and shown as ‘General expenses’ in the profit & Loss A/c. Q.7 Comment on the basis of AS-1 on the following – M/s. Sayali & Co. have changed the method of valuation of stock from FIFO to Weighted Average w.e.f the current year. However, this change has no effect on the accounts for the current year though it may have a big effect in future. Therefore M/s. Sayali & Co. have not made any disclosure about this change in the A/c of the current year. Questions based on AS-2:- Q.8 Salman Ltd. Purchased 2,000 units of raw materials @ list price of Rs. 100 p.u. The excise duties amounted to Rs. 50,000 (out of which Rs. 20,000 was refundable). The CST amounted to Rs. 30,000. The seller gave a rebate of Rs. 10,000 on the list price. The company spent Rs. 10,000 on transportation & Rs. 5,000 for loading & unloading. Ascertain the costs of purchase.
Transcript of Ac FY Bcom (Raj) 8
intuitions academia(Imparting Education To Lives)
FY Bcom 2011-12Fundamentals of Accountancy
Chapter 1. Accounting Standards
Questions based on AS-1:-
Q.1 Which different accounting policies may be adopted in the areas of method of depreciation.
Q.2 Which different accounting policies may be adopted in the areas of valuation of stock.
Q.3 Comment on the basis of AS-1 on the following – Jyotiba phule trust sent a copy of final accounts to all its members. The managing trustee sent a separate letter to each member containing the note on the accounting policies followed for preparing the final A/c’s.
Q.4 Comment on the basis of AS-1 on the following – The accounting policies for recording income & expenses were given below the Income & Expenditure A/c & the accounting policies for recording assets & liabilities were given below the Balance Sheet by the Gyaneshwar Trust.
Q.5 Comment on the basis of AS-1 on the following – Abhishek & Co. prepares its accounts on cash basis.
Q.6 Comment on the basis of AS-1 on the following – Ketan & Co. having sales of Rs. 100 crores shows an item of expenditure under a separate head of account only if it exceeds Rs. 5,000. All such items below Rs. 5,000 each are combined together and shown as ‘General expenses’ in the profit & Loss A/c.
Q.7 Comment on the basis of AS-1 on the following – M/s. Sayali & Co. have changed the method of valuation of stock from FIFO to Weighted Average w.e.f the current year. However, this change has no effect on the accounts for the current year though it may have a big effect in future. Therefore M/s. Sayali & Co. have not made any disclosure about this change in the A/c of the current year.
Questions based on AS-2:-
Q.8 Salman Ltd. Purchased 2,000 units of raw materials @ list price of Rs. 100 p.u. The excise duties amounted to Rs. 50,000 (out of which Rs. 20,000 was refundable). The CST amounted to Rs. 30,000. The seller gave a rebate of Rs. 10,000 on the list price. The company spent Rs. 10,000 on transportation & Rs. 5,000 for loading & unloading. Ascertain the costs of purchase.
Q.9 A Co. deals in three products, A,B & C, which are neither similar nor interchangeable. At the time of closing its accounts for the year 2010-11, the historical cost & Net realizable value of the items of closing stock are determined as follows:Items Historical cost Net Realizable values
(Rs. In lakhs) (Rs. In lakhs)ABC
403216
283224
What will be the value of closing stock?
Q.10 Small Mart has closing stock of several retail items having a MRP of Rs. 20,000. The average rate of gross profit on cost is 25%. Calculate the cost of closing stock using the retail method.
Questions based on AS-6:-
Q.11 The estimated working life of the machine (cost Rs. 60,000) is 6 years. The estimated working life of its engine (cost Rs. 6,000) is 10 years. The scrap value for both is nil. Compute the depreciation for the year, if the engine has a separate identity and can be sold independently.
Q.12 Refer the above question. Compute the depreciation for the year, if the engine has no separate identity. It is an integral part of the machine & cannot be sold separately.
Q.13 Purchased price of a plant is Rs. 3,80,000. Expenses incurred for transport, installation, trial run, etc. are Rs. 30,000. Estimated useful life is 10 years & estimated scrap realization is Rs. 20,000. The plant being depreciated on SLM basis is, during the 5 th year , re-estimated to have a useful life of 11 years.
What is the effect of this re-estimation on the depreciation for the remaining years ?
Q.14 A plant was depreciated under two different methods as under :Year SLM (Rs. In
lakhs)WDV (Rs. In lakhs)
1234
7.807.807.807.80
31.20
21.3815.8011.688.64
57.50
What should be the amount of resultant surplus/deficiency, if the company decides to switch over from WDV method to SLM method in the 5th year? Also state, how will you treat the same in A/c’s.
Questions based on AS-9:-
Q.15 Comment on the basis of AS-9 : Included in “Sales & other Income”, is a sum of Rs. 100 lakhs to be received in US$, being royalty receivable, for supply of Know-how, from a Co. in Iraq. However, due to uncertain conditions in the country, permission has been denied for remittance of foreign currency from Iraq.
Q.16 Mr. Satrughan, proprietor of Johnson & Johnson Co. has sent some goods on consignment basis to his agent Mr. Mashuk Khan & Bros. on 1.3.2010. Till 31.3.2010, the
goods have not been sold to any third party. Mr. Satrughan would like to know whether, the sales should be recorded in the current year ended 31.3.2010 or the next year.
Q.17 Mr. Sanatan, proprietor of KBC Ltd. Has sent some goods to Mr. Rajesh Mishra on cash on delivery basis on 25th March, 2010. State whether sales should be booked in the current year ended 31.3.2010 or not if –
(a) cash has been received on 29th march, 2010 ; (b) cash has been received on 2nd April, 2010.
Q.18 Miss Pooja, proprietor of Times of India is a publisher of Bombay Chartered Accountant’s journal. The journal received Rs. 5,000 as subscription in Current year on 1.4.2010 for next 5 years. Under a special scheme. Miss Pooja would like to know whether the entire income should be recorded in the current year ended 31.3.2011.
Q.19 M/s. intuitions academia, a renowned coaching class, has received Rs. 1,20,000 in February 2010 as tuition fees for a course beginning in March, 2010 & ending in February, 2011. It would like to know whether the income should be recorded. The books are closed on 31st March.
Questions based on AS-10:-
Q.20 State whether the following expenditure is a capital, revenue or deferred revenue expenditure. Give reasons:
(1) Legal expenses incurred in connection with issue of capital.(2) Cost of replacement of a defective part of the machinery.(3) Expenditure incurred in preparing a project report.(4) Expenditure for training employees for better running of machinery.(5) Expenditure incurred for repairing cinema screen.
Q.21 State whether the following expenditure is a capital, revenue. Give reasons:(1) Amount spent on uniform of workers.(2) White washing of the factory building.(3) Cost of stores consumed in manufacturing machinery for installation in own factory.(4) Wages paid for construction of the building extension.(5) Import duty on raw material purchased.
Q.22 Determine whether the following are Capital or revenue. Give Reasons :(1) A sum of Rs. 10,000 paid for obtaining a license to carry on business.(2) A fine of Rs. 505 paid for contravening Municipal rules & regulations.(3) Rs. 7,000 was incurred for issue of shares.(4) Productive wages of Rs. 50,000 paid for the month of December, 2010(5) Umbrellas were purchased for the employees @ cost of Rs. 3,000.(6) A second hand typewriter was purchased for Rs. 1,200 & Rs. 500 were spent for
bringing it into working condition.
Q.24 State with reasons the nature of the following expenses/receipts :(1) Sold 4% Government securities (Investment) for Rs. 1,40,000.(2) Preliminary expenses paid Rs. 42,000.(3) Carriage outward paid Rs. 40,000.(4) Import duty paid on purchase of Computer equipment Rs. 85,000 to be used in the
office.(5) Received Rs. 5,00,000 on the issue of 5% debentures.(6) Paid Rs. 10,000 underwriting commission on issue of shares.
(7) Legal expenses Rs. 6,000 paid in connection with purchase of land.(8) repairing charges Rs. 15,000 paid for keeping the machinery in working condition.
Q.25 Classify the following into Capital/Revenue expenditure :(1) Spent towards additions to machinery in order to double the production by Rs.
40,000.(2) Incurred for repairs to machinery, necessitated by the negligence of the employees, Rs. 24,000.(3) Paid for painting the factory premises. Rs. 10,000.
Chapter 2. Capital, Revenue & Deferred Revenue : Expenditure & Receipts.
Q.1 State with reasons, whether you would consider the following as capital expenditure or revenue expenditure :(1) Raw material was imported when 1$ was worth Rs. 40; when payment was actually made the foreign exchange was @ of 1$ equal to Rs. 40.(2) Premium paid in connection with acquisition of leasehold premises.(3) Renovation of factory canteen.(4) Fees paid for renewal of license for factory.
Q.2. Pradeep Pvt Ltd. Removed their factory to a more suitable premises in Navi Mumbai. State with reasons the accounting treatment for the following items :(1) A sum of Rs. 99,500 was spent for dismantling, removing and re-installing plant, machinery & fixtures.(2) The removal of stock from the old factory to the new at a cost of Rs. 1,000.(3) Plant & Machinery which stood in the books @ Rs. 1,50,000 included a machine at a BV of Rs. 3,400. This being obsolete, was sold off @ Rs. 900 and was replaced by a new machine which cost Rs. 4,800.(4) The freight & cartage on the new machine amounted to Rs. 300 & erection charges Rs. 550.(5) The furniture appeared in the books @ Rs. 15,000. Of these some portion of the BV @ Rs. 3,000 was discarded & sold @ Rs. 1,200. New furniture of the BV of Rs. 2,400 was acquired.
(6) A sum of Rs. 2,200 was spent on painting the new factory.
Q.3 State with reasons whether the following are capital or revenue expenditure :(1) Freight & Cartage on new machine Rs. 150 & erection charges Rs. 200.(2) Fixtures of the BV of Rs. 1,500 was sold off @ Rs. 600 & fixtures of the value Rs. 10,000 was acquired, cartage on purchase Rs. 50.(3) A sum of Rs. 100 was spent on painting the factory.(4) Rs. 5,500 spent on repairs before using a second-hand car purchased recently to put it in usable condition.
Q.4 Mr. Raj & Co. Chartered Accountant seeks your help on the following transactions/events. How will you treat them.(1) Gave Rs. 1 lakh as custom duty on the machinery imported.(2) Invested Rs. 2 lakhs on the purchase of 2,000 equity shares of Rs. 100 each of a subsidiary Co.(3) Spent Rs. 57,600 on the construction of a platform for the installation of machinery imported from abroad.(4) Placed a deposit of Rs. 3 lakhs with the bankers as margin money for obtaining guarantee of Rs. 10 lakhs in favour of Bharat Petroleum Ltd. (5) Furniture worth Rs. 19,500 destroyed by fire, which was not insured.(6) Goods worth Rs. 27,000 distributed as free amongst the workers on Diwali Pooja day (7) Spent Rs. 39,600 on research, but subsequently the project was abandoned by the management.
Q.5 State with reasons whether the following items relating to a sugar mill Co. are capital or revenue :(1) A motor truck costing Rs. 15,000 and standing in the books @ Rs. 7,250 was sold for Rs. 12,000.(2) Rs. 20,000 received from the issue of further shares, the expenses of the issue being Rs. 2,500.(3) Rs. 75,000 being cost of land purchased for agricultural farm & Rs. 450 was paid for land revenue.(4) Rs. 1,50,000 paid for excise duty on sugar manufactured.(5) Rs. 50,000 invested in a Government loan.(6) Rs. 60,000 spent on construction of railway siding.
Q.6 State which of the following expenses are capital, revenue & deferred revenues. Give reasons :(1) Expenditure incurred on overhauling of machinery.(2) Taxes paid.(3) Wages paid to the workers for the erection of machinery.(4) Cost of goodwill.(5) Heavy expenditure incurred on advertisements.(6) Cost of construction of a building.(7) Machinery costing Rs. 10,000 sold for Rs. 12,000.(8) Purchased machinery for Rs. 15,000.
Q.7 State whether the following expenditure is a capital, revenue or deferred revenue expenditure. Give reasons :(1) Purchase of machinery for sale.(2) Daily wages paid to office peon.
Q.8 State with reasons, whether the you would consider the following as capital or revenue expenditure :(1) Stock of Rs. 25,000 was destroyed by fire of which Rs. 15,000 was received from insurance Co.(2) Cost of transporting newly purchased furniture.
(3) Amount spent by factory in overhauling its plant which has enhanced the life of the plant by 5 years.(4) Travelling expenses for a trip abroad for purchase of capital goods.
Q.9 State with reasons, whether you would consider the following as capital or revenue expenditure :(1) Professional fees paid in connection with acquisition of leasehold premises.(2) Cost of registration & documentation of a newly formed Co.(3) Compensation paid to a retrenched employee for loss of employment.
Q.10 State with reasons, whether the following items are capital, revenue or deferred revenue :(1) Cost of purchasing copyright from author.(2) Installed freezer container in place of ordinary container in a truck to enable transport of milk.(3) expenses on planting of rose bushes in office compound.(4) brokerage paid in connection with issue of debentures repayable after 6 years.(5) Contribution to Co-operative society managing the industrial estate in which factory is located, for construction of internal roads in the estate.(6) Cost of filing case in courts for infringement of copyright purchased.(7) Amount received from landlord as compensation for surrender of tenancy rights to the shops of the concern.(8) Compensation received from Government for compulsory acquisition of land.(9) Claim amount received from insurance Co. for loss of profit under loss of profit policy when business was suspended due to loss by fire.(10) Cost of training engineers in USA regarding emergency repairs of a new machine to be purchased from USA Co.(11) Donation given to Army Central Welfare Fund.(12) Gift received from father of proprietor deposited in bank A/c of concern.(13) Interest received on loans given.(14) Bank loan was repaid.(15) Profits before incorporation of the Co.(16) Profits on re-issue of forfeited shares.(17) Redemption of debentures at a discount.(18) Contribution to state housing board for construction of house colony for employees.(19) Payment for acquiring rights for a sole selling agency.(20) Expenditure on converting a textile mill into a cinema theatre.(21) Compensation paid to a tenant to vacate land purchased by the concern.(22) Amount received from a Sundry debtor.(23) Brokerage paid on sale of old machinery.(24) Entrance fees paid for an employee to become a member of a club.(25) Expenses on celebration of annual day / staff picnic / sports day.(26) Gratuity & Pension paid to employees after retirement.(27) Payment made to partners of another firm for acquiring the business of that firm.(28) Transport expenses on shifting of employees from H.O to Branch office on their transfer.(29) Cost of extension to building occupied on lease for 5 years.(30) Compensation paid for breach of contract for purchase of machinery.(31) Travelling expenses by managing director for setting up joint ventures abroad.(32) Life membership fees received by a club.
(33) Depreciation charged on plant & Machinery.(34) Rent paid for residential house of proprietor.(35) Amount transferred to create reserve for doubtful debts.
Chapter 3. Depreciation.
Q.1 An asset is purchased for Rs. 2,50,000. Depreciation is to be provided annually according to SLM method. The useful life of the asset is 10 years and the residual value is Rs. 50,000. You are required to find out the rate of depreciation.
Q.2 Calculate the rate of depreciation under SLM in the following case :Purchase priceOf machine
Expenses to beCapitalized (Rs.)
Estimated residual value (Rs.)
Expected useful life (Rs.)
4,80,000 1,20,000 2,40,000 4 years
Q.3 A machine is purchased for Rs. 80,000. Expenses incurred on its cartage & installation Rs. 20,000. The residual value at the end of the expected useful life of 4 years is estimated at Rs. 40,000. Calculate the amount of depreciation for the first year ending 31.3.2005, if this machine is purchased on :a) 1.4.2004 b) 1.7.2004 c) 1.10.2004 d) 1.1.2005
Q.4 Ajay Ltd. Purchased a second-hand machine for Rs. 5 lakhs & spent Rs. 1 lakh on its repairs. Depreciation is to be provided @ 10% p.a. according to SLM. This machine is sold for Rs. 4,50,000. Accounting year is financial year. Calculate the profit/loss on sale of machine in each of the following alternative cases :Case (a) : If date of purchase is 1.4.2001 & the date of sale is 31.3.2004Case (b) : If date of purchase is 1.4.2001 & the date of sale is 30.9.2003Case (c) : If date of purchase is 1.7.2001 & the date of sale is 31.3.2004Case (d) : If date of purchase is 1.7.2001 & the date of sale is 30.9.2003
Q.5 The following plant & machinery was purchased by Jitu & Co.Date Specification of the machine Amount (Rs.)1.4.2001 A-1 60,0001.4.2001 B-1 30,0001.4.2001 B-2 40,0001.4.2001 C-1 60,00031.3.2004 D-1 1,00,000Prepare Machinery A/c in the ledger of Jitu & Co. for the years 2001-02, 2002-03 & 2003-04. After considering the following points. :He sold machine A-1 on 1.10.2003 for Rs. 50,000.Depreciation is charged @ 10% on the original value p.a.
Q.6 From the books of Roshan Ltd. The following details regarding its machinery A/c are available :1. Balance on Jan 1, 2003 Rs. 1,00,0002. Purchase of machinery on Jul 1, 2003 Rs. 40,0003. Sale of machinery on Oct 1, 2003 Rs. 32,000The original cost of machinery sold was Rs. 40,000 on Jul 1, 2000.4. Installation charges of Rs. 8,000 on purchase of new machinery.5. Machinery is being depreciated @ 10% p.a. on FIM basis.6. The opening balance includes Rs. 70,000 worth machinery purchased on Dec 31, 2002.
Prepare Machinery A/c in the books of Roshan Ltd.Q.7 A Co. whose accounting year is Calendar year purchased on 1st April, 2001 machinery costing Rs. 60,000. It further purchased machinery on 1st October 2001 costing Rs. 40,000 and on 1st July 2003, 1/3rd of the machinery which was installed on 1st April, 2001. Became obsolete and was sold for Rs. 6,000.Show how the machinery A/c would appear in the books of the Co. for all the above years. Depreciation is charged @ 20% p.a. on original cost.
Q.8 Shona enterprises have imported a machine on 1st July, 2000 for Rs. 1,60,000. They also paid custom duty & freight Rs. 80,000 and incurred installation charges Rs. 60,000. Another indigenous machinery costing Rs. 1,00,000 was purchased on 1st January, 2001.On 1st July, 2002, 1/3rd of the imported machinery was sold for Rs. 34,800 having become obsolete. Another machinery was purchased to replace the same for Rs. 50,000.Depreciation is to be calculated @ 20% p.a. under WDV.Show machinery A/c for all the years.
Q.9 M/s. Rahul Bros. provides you with the information regarding their Plant & Machinery A/c :Date Particulars Rs.1.01.20011.01.20011.07.20021.07.20021.10.2003
1.10.20031.10.2003
Purchase of machineryInstallation expensesPurchase of additional machineryInstallation expenses1st machine totally damaged due to floods & insurance Co. Admitted claim for.Purchased second-hand machinePaid repairs charges of the above machine
85,00015,00047,000 3,000
20,00060,00040,000
Depreciation to be provided @ 20% p.a. on RBM on 31st December every year. Prepare machinery A/c for the years 2001, 2002 & 2003.
Q.10 M/s. Aarti Ltd a manufacturing concern whose books are closed on 31st march, purchased machinery for Rs. 3 lakhs on 1st April, 2001. Additional machinery was acquired for Rs. 3,00,000 on 30.9.2002 & for Rs. 50,000 on 1.04.2004. Machinery which was purchased for Rs. 3,00,000 on 30.9.2002 was sold for Rs. 2,55,000 on 30.9.2004.You are required to give machinery A/c for the years ended 31.3.2002, 31.3.2003, 31.3.2004 & 31.3.2005 taking into account depreciation @ 10% p.a. on WDV basis is charged.
Q.11 In 1st July, 2001, Mr. Sumedh purchased a new machinery for Rs. 95,000 and paid Rs. 5,000 as installation charges for the same. On 1st Jan, 2002, he purchased another machinery for Rs. 50,000. On 30th June, 2003, first machine was badly damaged due to riots and had to be discarded for Rs. 15,000. Another machine was purchased on the same day for Rs. 80,000. Depreciation is to be provided @ 20% reducing balance on 31st December.Prepare Machinery A/c & Depreciation A/c for the three years ending on 31st December,2001, 31st December, 2001 & 31st December, 2003 in the books of Mr. Sumedh
Q.12 On 1.4.2001 a firm purchased a machinery for Rs. 2,00,000. On 1st October in the same accounting year, additional machinery costing Rs. 1,00,000 was purchased. On 1st October, 2002, the machinery purchased on 1st April, 2001, having become obsolete was sold off for Rs. 90,000. On 1st October, 2003 new machinery was purchased for Rs. 2,50,000 while the machinery purchased on 1.10.2001, was sold for Rs. 85,000 on the same day. The firm provides depreciation on its machinery @ 10% p.a. on original cost on
31st March every year. Show machinery A/c, Provision for depreciation A/c & Depreciation A/c for the period of three accounting years ending on 31.3.2004.
Q.13 Lady Gaga Ltd. Purchased a machinery on 1.1.2001 for Rs. 5,50,000 and spent Rs. 50,000 on its installation. On September 01, 2001 it purchased another machine for Rs. 3,70,000. On 1.5.2002, it purchased another machine for Rs. 8,40,000 (including installation expenses). Depreciation was provided on machinery @ 10% p.a. on original cost method annually on 31st December.Prepare i) Direct method as well as under (ii) Provision method for the years 2001, 2002, 2003 & 2004.
Q.14 On 1.4.2001, M/s Vandana & Co. purchased four machines for Rs. 50,000 each. His accounting year ends on 31st March. Depreciation @ 20% on original cost has been charged to Profit & Loss A/c & credited to a separate provision for depreciation A/c.On 1.4.2002, one machine was sold for Rs. 35,000 & on 1.4.2003, a second machine was sold for Rs. 33,000. A new machine which cost Rs. 80,000 was purchased on 1st October, 2002. The same rate of depreciation was decided for the new machine as well.Prepare : (i) Machinery A/c (ii) Machinery Disposal A/c (iii) Provision for depreciation A/c.
Q.15 Carriage transport Co. purchased 5 trucks at the cost of Rs. 2,00,000 each on 1.4.2001. The Co. writes off depreciation @ 20% p.a. on the original cost & closes its books of A/c’s on 31st December, every year. On 1.10.2003, one of the trucks is involved in an accident and is completely destroyed. Insurance Co. has agreed to pay Rs. 70,000 in full settlement of the claim. On the same date Co. purchased a second hand truck for Rs. 1,00,000 & spent Rs. 20,000 on its overhauling. Prepare Truck A/c & Provision for Depreciation A/c for the three years ended December 31, 2003. Also give truck A/c if Truck Disposal A/c is prepared.
Q.16 Saraswati Ltd purchased a machinery costing Rs. 10,00,000 on 1.1.2001. A new machinery was purchased on 1.5.2002 for Rs. 15,00,000 & another on 1.7.2004 for Rs. 12,00,000. A part of the machinery which originally cost Rs. 2,00,000 in 2001 was sold for Rs. 75,000 on 31.10.2001. Show the machinery A/c, Provision for depreciation A/c & Machinery disposal A/c from 2001 to 2005. If depreciation is provided @ 10% p.a. on original cost & A/c’s are closed on 31st December every year.
Q.17 On 1.1.2001, Arya Ltd purchased a machinery for Rs. 12 lakhs. On 1.7.2003 a part of the machinery purchased on 1.1.2001 for Rs. 80,000 was sold for Rs. 45,000 and a new machinery at a cost of Rs. 1,50,000 was purchased on the same date. The Co. has adopted the method of providing 10% depreciation on the original cost of the machinery.Show the necessary ledger A/c’s assuming that :-
a) Provision for depreciation A/c is not maintainedb) Provision for depreciation A/c is maintained.
Also prepare the Balance Sheet under both options.
Q.18 Azad Ltd. Purchased furniture on 1.10.2002 for Rs. 4,50,000. On 1.3.2003 it purchased another furniture for Rs. 3,00,000. On 1.7.2004 it sold off the first furniture purchased in 2002 for Rs. 2,25,000. Depreciation is provided @ 15% p.a. on WDV method each year. Accounts are closed each year on March, 31. Prepare furniture A/c, Accumulated depreciation A/c & Asset disposal A/c for the years ended 2003, 2004 & 2005.
Q.19 On 1.7.2000 Jaanu Pvt Ltd. Purchased a machinery for Rs. 6 lakhs. On 28.2.2002, a part of the machinery purchased on 1.7.2000 for Rs. 80,000 was sold for Rs. 30,000. On the same date a fresh machinery was purchased for Rs. 1,50,000. Depreciation is provided @ 20% p.a. on the WDV method & the books are closed on December 31, each year.
You are required to prepare : (a) Machinery A/c (b) Provision for depreciation A/c &( c) Machinery Disposal A/c.
Q.20 Sony Pvt Ltd. Purchased on 1.1.2000 a small plant for Rs. 10,000. On 1.7.2000 additional plant was acquired costing Rs. 5,000. On 1.7.2001, the plant purchased on 1.1.2000, having become obsolete, was sold for Rs. 4,000. On 1.7.2002, a fresh machinery was purchased for Rs. 12,000 & the plant purchased on 1.7.2000 was sold for Rs. 4,200 on the same date.Depreciation is provided @ 10% p.a. on WDV every year. Show Machinery A/c, Provision for depreciation A/c & Machinery disposal A/c.
Q.21 On 1.1.2001, Gupta & Sons purchased a second hand plant costing Rs. 2,00,000 & spent Rs. 10,000 on its overhauling. It also spent Rs. 5,000 on transportation & installation of the plant. It was decided to provide depreciation @ 20% on WDV basis. The plant was destroyed by fire on 31.7.2004 and insurance Co. admitted a claim of Rs. 60,000. Prepare : (i) Plant A/c (ii) Accumulated depreciation A/c & (iii) Plant Disposal A/c.The Co. closes its books of A/c’s on 31st December every year.
Q.22 Mantri builders, Nagar purchased machinery for Rs. 50,000 on 1.1.2006. It was decided to write off machine on FIM basis @ Rs. 5,000 a year. After writing off for two years it was decided to change the system to RBM by charging depreciation @ 20% p.a. giving a retrospective effect. The difference due to change is to be adjusted through P&L A/c of the third year. The A/c’s are closed on 31st December, every year.Prepare machinery A/c & depreciation A/c for 3 years.
Q.23 Shri Vinayak traders, Pune purchased machinery worth Rs. 80,000 on 1.1.2006, and decided to depreciate it at 10% p.a. on FIM basis.On 1.1.2008, they decided to depreciate it at 20% p.a. on DBM giving a retrospective effect and to adjust the difference in depreciation arising from the change of method is to be charged to P&L A/c in the year 2008.The F.Y ends on 31st December each year.Prepare Machinery A/c & Depreciation A/c for 3 years. i.e. 2006, 2007 & 2008.
Q.24 A Co. purchased a second hand machine on 1st January, 2000 for Rs. 37,000 & immediately spent Rs. 2,000 on its repairs & Rs. 1,000 on its erection. On 1.7.2001, purchased another machine for Rs. 10,000 & on 1.7.2002 it sold off the first machine for Rs. 28,000 & bought another for Rs. 25,000. On 1.7.2003, the second machine was sold off for Rs. 2,000.Depreciation was provided on Machinery @ 10% p.a. on the original cost annually on 31st December. In 2001, however the Co. changed the method of providing depreciation & adopted the WDV method, rate of depreciation being 15% p.a. Prepare Machinery A/c for 4 years.Q.25 On 1.10.2001 a new plant was purchased by Ganesh Ltd. For Rs. 25,000. On 21.2.2003, a second hand plant was purchased for Rs. 30,000 & a further sum of Rs. 5,000 was spent for bringing the same under working condition, the same was used from 15.3.2003. depreciation has been provided @ 10% p.a. on SLM. It was the practice to provide depreciation for full year on all acquisitions made at any time during the year. The A/c’s were closed annually on 31st March. On 1.4.2002, it was decided to follow the rate of 15% on WDV right from the beginning inrespect of the existing items of plant & to make the necessary adjustment on 31.3.2003. Show the Plant A/c & Provision for depreciation A/c for all the 3 years.
Q.26 Akhilesh purchased a machine worth Rs. 2,00,000 on dated 1.7.2005. They decided to charge depreciation on 31st December every year @ 10% p.a. under RBM. On 1.1.2007, they decided to change the method of charging depreciation to FIM @ 15% p.a. from the date of purchase. Difference due to change in method is to be adjusted to P&L
A/c. during the year 2007. On 31.12.2007 a new machine was purchased of Rs. 1,00,000. Prepare Machinery A/c & Depreciation A/c for the years 2005, 2006 & 2007.
Q.27 On 1.7.2005, Hari trading Co. purchased machinery for Rs. 80,000. On 31st December, 2005, they purchased further machinery worth Rs. 40,000. They charged depreciation @ 10% p.a. by DBM on 31st December every year. On 31st December, 2008, they decided to change the method of depreciation to FIM giving a retrospective effect @ 10% p.a. The difference is to charged to P&L A/c of 2008. Prepare Machinery A/ & Depreciation A/c for the years from 2005 to 2008.
Q.28 On 30.62002, Sanju Baba & Co. bought some machinery worth Rs. 2,45,000 & spent rs. 5,000 for its erection.Co. decided to depreciate the machinery @ 10% p.a. under RBM.On 1.1.2004, the Co. decided to change the method of depreciation and accepted FIM @ 10% p.a. from the very beginning. The difference arising due to change in method being transferred to P&L A/c of 2004.The accounts of the Co. are closed on 31st December every year.Show machinery A/c & depreciation for the years 2002, 2003, 2004 & 2005.
Q.29 M/s. Ravindra Trading Co. Ambajogai purchased machinery for Rs. 60,000 on 1.1.2002 & decided to depreciate machinery @ 10% p.a. under DBM.However on 1.1.2005, the Co. decided to change rate of depreciation @ 15% p.a. on FIM right from the beginning & to adjust the difference arising from change of methods to be charged to P&L A/c for the year 2005.Assuming that the FY. is 31st December every year. Show Machinery A/c & depreciation a/c for 2002, 2003, 2004 & 2005.
Q.30 Furniture A/c of a businessman had a debit balance of Rs. 1,47,390 on 1.1.2004. He started business in the year 2001 on the 1st day of the calendar & has been following the practice of charging full years’ depreciation every year on WDV basis @ 15% p.a.In the year 2004, however it was decided to change the method to SLM with retrospective effect from 2001 & to give effect of the change while preparing the Final A/c’s for the year ended 31st December, 2004. The rate of depreciation was constant as before.On 1.1.2004, new furniture was purchased at a cost of Rs. 50,000. All other furniture was acquired in the year 2001.Prepare Furniture A/c for the years ended 31.12.2001 to 31.12.2004.Chapter 4. Final Accounts of a Sole Proprietor .
Q.1 The cost of closing stock as on 31.3.2004 is Rs. 5,000. Its MV is Rs. 6,500. Show how it will be accounted for in the books & the final A/c’s at the end of the year.
Q.2 Account for outstanding rent when rent paid during the year @ Rs. 1,000 p.m. amounts to Rs. 11,000, and rent of Rs. 1,000 is outstanding.
Q.3 Account for prepaid insurance for the year ended 31.3.2004, from the following information : Insurance paid Rs. 12,000 for 1 year from 1st October 2003, out of which prepaid is Rs. Rs. 6,000.
Q.4 Account for income received in advance for the year ended 31.3.2004, from the following information : Rent received Rs. 26,000 including rent received in advance Rs. 2,000.
Q.5 Account for accrued income for the year ended 31.3.2004, from the following information as on 31.3.2004 : Rent received (upto February, 2004) Rs. 11,000, accrued rent Rs. 1,000.
Q.6 The Sundry debtors as on 31.3.2004 are Rs. 1,55,000 out of which Rs. 5,000 are bad debts. Show how it will be accounted for in the books & the final A/c’s at the end of the year.
Q.7 From the following particulars (a) Write up the journal and the ledger A/c’s for the year ending March 2004, and (b) Show the relevant part of the final A/c’s :Balances shown in Trial Balance as on 31.3.2004 :Reserve for doubtful debts (Opening on 1.4.2003 b/d)Sundry Debtors (before adjustments)Adjustments to be made :Write off bad debtsCreate Reserve for Doubtful debts @ 10%.
Q.8 In the above question, assume that Sundry Debtors (before adjustments) as on 31.3.2004 amounted to Rs. 45,000.
Q.9 From the following particulars (a) Write up the journal and the ledger A/c’s for the year ending March 2004, and (b) Show the relevant part of the final A/c’s :Balances shown in Trial Balance as on 31.3.2004 : Rs.Provision for discount on debtors (Opening on 1.4.2003 b/d) 2,000Sundry Debtors (before discount) 1,51,000Adjustments to be made :Discount allowed 1,000Create provision for discount on debtors @ 2%.
Q.10 In the above question, assume that Sundry debtors (before adjustments) as on 31.3.2004 was Rs. 41,000.
Q.11 From the following particulars (a) Write up the journal and the ledger A/c’s for the year ending March 2004, and (b) Show the relevant part of the final A/c’s :Balances shown in Trial Balance as on 31.3.2004 : Rs.Provision for discount on creditors (Opening on 1.4.2003 b/d) 2,000Sundry creditors (before adjustments) 1,51,000Adjustments to be made :Discount obtained 1,000Create provision for discount on creditors @ 2%.
Q.12 In the above question, assume that Sundry creditors (before adjustments) as on 31.3.2004 was Rs. 41,000.
Q.13 Record depreciation for a machinery purchased on 1.4.2003 for Rs. 12,000 having a useful life of 10 years, in the journal, the ledger & the final A/c’s for the year ending 31.3.2004. Amount of depreciation for the year is Rs. 1,200.
Q.14 M/s Tendulkar & Co. lost goods worth Rs. 10,000 in a fire. Show the entries in its books assuming :Case (a) the goods were not insured at all.Case (b) the goods were fully insured & the claim was accepted and paid by the insurance Co.Case (c) the claim was accepted by the insurance Co. only for Rs. 4,000 & the insurance Co. has yet to pay the claim.
Q.15 From the following trial balance of Mr. Santosh as at 31.12.2003, prepare final A/c’s after passing the adjustment entries and the closing entries.Particulars Dr. Rs Cr. Rs Particulars Dr. Rs Cr. RsSantosh Capital A/cSantosh Drawings A/cPlant & Machinery
2,60012,000
30,000 Factory rentOffice rentInsurance
200 500 500
A/cOpening StockPurchaseSalesReturn InwardsReturn OutwardsSundry DebtorsSundry CreditorsCarriage inwardsCarriage outwardsWagesSalaries
5,00035,000
2,000
8,000
500 500 3,000 2,000
50,000
1,000
6,000
Discount receivedDiscount allowedFurnitureBad debtsCommissionBuildingBills payableBills receivableCash on handCash at bank
300 2,000 400 300 8,000
6,000 200 600
600
2,000
Adjustments :1. Closing stock Rs. 20,000.2. Prepaid insurance Rs. 200.3. Outstanding wages Rs. 300.4. Outstanding salary Rs. 200.5. Interest on capital @ 5%.6. Additional bad debts Rs. 400.7. Reserve for bad debts @ 5%.8. Reserve for discount on debtors @ 5%.9. Reserve for discount on creditors @ 2%.10.Interest on drawings @ 6% p.a. for 6 months.11.Commission earned but not received Rs. 200.12.Rent outstanding (office) Rs. 400.13.Depreciation on furniture @ 10%.14.Depreciation on plant & machinery @ 10%.
Q.16 From the following particulars presented by Sandeep Bros. Prepare a manufacturing A/c for the year ended 31.3.2004.Particulars Rs. Particulars Rs.Opening stock :
- Raw materials- Work-in-progress- Finished goods
Closing stock :- Raw materials- Work-in-progress- Finished goods
Purchase of Raw materialsWages of workersLight, Gas, etc. (factory)
3,000 4,000 8,000
1,000 5,000 4,00040,00020,000 2,000
Carriage inwardHire of Special plantFactory rentRepairs to plantRepairs to factorySupervisor’s salaryWages to durwan at factoryRoyalties on productionWorks manager’s salarySalary to works staff
1,000 2,000 4,000 2,000 1,000 8,000 1,000 2,000 6,000 3,000
Q.17 From the following particulars, prepare a manufacturing A/c & a Trading A/c for the year ended 31.3.2004.Particulars Rs. Particulars Rs.Raw materials (1.4.2003)Work-in-progress (1.4.2003)Finished goods (1.4.2003)Purchased raw materialDirect wagesIndirect wagesSalesReturns inwardDepreciation on factory
12,000 8,000 9,000 80,000 10,000 8,0001,74,000 5,000 4,000
Carriage inwardsReturns outwardRoyalty on productionPurchase of finished goodsCarriage outwardsFuel & powerRepairs & MaintenanceRaw materials (31.3.2004)Work-in-progress
1,000 2,000 1,000 8,000 500 2,500 1,500 6,000 2,500
assets (31.3.2004)Finished goods (31.3.2004)
5,000
Adjustments :(1) Outstanding direct wages amounted to Rs. 3,000.(2) Prepaid fuel & power amounted to Rs. 500.
Q.18 From the following items for the year ended 31.3.2004. prepare Manufacturing, Trading & P& L A/c. of Mr. Munshiji :Particulars Rs. Particulars Rs.Opening stock :
- Raw materials- Work-in-progress- Finished goods
Purchase of raw materialSalesPurchase returnsSales returnsCarriage inwardCarriage outwardDuty & clearing chargesFactory rentOffice rent
60,000 50,000 75,000 3,20,000 6,25,000 5,000 4,000 1,500 1,000 2,000 3,000 2,000
Electric & water chargesWagesSalary & works managerOffice salariesAdvertisementDepreciation :
- On plant- On factory shed- On office furniture
Closing stock :- Raw materials- Work-in-progress- Finished goods
4,0001,40,000 6,000 5,000 2,000
3,000 1,000 600
40,500 60,000 55,000
Q.19 The following information is given to you from the books of a manufacturer in respect of the year ending 31st march, 2004.Particulars Rs. Particulars Rs.Stock of raw material (1-4-03)
25,000 Electricity & telephone 6,000
Freight inward 8,500 Selling expenses 6,000Freight outward 6,000 Miscellaneous expenses 14,000Direct wages 18,000 Stock of finished goods (31-3-
03)30,000
Indirect wages 14,000 Provision for doubtful debts 8,500Sales 4,18,00
0Dep. Of plant & machinery 4,000
Stationery 1,500 Dep. Of office furniture & equip.
3,000
Travelling expenses 5,000 Repairs to plant & machinery 4,650Salaries (H.O.) 26,000 Scrap sales 3,700Factory expenses 26,000 Purchases of raw materials 2,50,00
0Interest on loan paid 1,800 Coal consumed 9,000Returns inward 5,000 Work-in-progress (1-4-03) 7,000Returns outward 3,500 Bank interest received 2,600Power & fuel 8,000Adjustments :-(a)Finished goods worth Rs.5,000 were distributed as free samples.(b)A loan was obtained on 1st October, 2003 for Rs. 50,000 carrying interest @ 10% p.a.(c )Bad debts to be written off Rs.750 & provision for doubtful debts to be maintained at Rs.7,000.(d)Electricity & telephone to be apportioned as factory 3/5th & office 2/5th .
(e)A fire occurred destroying finished goods worth Rs. 15,000. Insurance co. admitted a claim of Rs.12,000 not yet received.(f)Stock on 31-3-2004 stationery in hand Rs. 150, raw materials Rs.22,000. Work-in-progress Rs.4,000; finished goods Rs.40,000.You are required to prepare the manufacturing account & trading account & profit & loss account for the year ended 31st march, 2004.
Q.20 Vinayaka’s Trial balance as on 31st march 2004 is as follows :Particulars Dr. Rs. Cr.
Rs.Particulars Dr. Rs. Cr. Rs.
Opening stock :- Printing & stationary 5,200Raw materials 2,50,000 Bank charges 2,500Work in progress 80,000 Travelling expenses 10,000Finished goods 2,20,000 Discount 3,300Purchases 2,15,000 Sales return 11,000Buildings 1,50,000 Advertisement 5,500Plant & machinery 3,60,000 Sales 7,80,000Furniture 40,000 Capital 8,50,000Trade mark 30,000 Sundry creditors 52,000Wages 83,000 Sundry debtors 82,500Factory taxes 4,000 Discount 2,500Motive power 9,000 Miscellaneous
expense5,500
Factory insurance 5,000 Bills payable 34,000Salary to office staff 11,000 Bills receivable 16,000Office rent 10,500 Corporation bank 98,000Carriage inward 2,500 Cash on hand 9,000
17,18,500
17,18,500
Adjustments:-(a)Closing stock :- Raw materials – Rs.85,000 ; Work in progress – Rs.30,000 ; Finished goods – Rs.2,05,000(b)Factory taxes prepaid Rs.2,000.(c )Depreciation :- Furniture 10% ; Plant & machinery 15% ; Trade mark 20% ; Building 5%.Prepare manufacturing, trading & profit & loss account for the financial year 2003-04 & Balance sheet as on 31-3-2004.
Q.21 Amar chemicals has the following ledger balances as on 31st march, 2004.Particulars Dr. Rs. Cr. Rs. Particulars Dr. Rs. Cr. Rs.Goodwill 50,000 Net sales 11,00,000Factory shed 20,000 Miscellaneous
income4,000
Machinery 1,30,000
Bad debts reserve 5,000
Furniture 8,000 Purchase of materials
8,60,000
Investments 10,000 Freight on materials 50,000Capital 1,95,00
0Factory power 15,000
Bank loan 3,00,000
Salaries & wages :-
Creditors 1,50,000
- Factory 1,50,000
Debtors 1,35,000
- Office 65,000
Stock on 1-4-03: Repairs & renewals 2,500-materials 1,30,00
0Rent & taxes 16,500
-work in progress 7,500 Insurance 3,900-finished goods 82,500 General expenses 18,100
17,54,000
17,54,000
Adjustments :-(a)Closing stock :- Materials Rs. 2,10,000 ; Work-in-progress Rs.12,500 & Finished goods Rs.2,07,500.(b)Depreciation to be provided at 2½% on factory shed, 10% on machinery & 15% on furniture.(c )Repairs & rent & taxes are to be apportioned between factory & office in the ratio of 3:2(d)Reserve for bad & doubtful debts to be provided at 4% on debtors.(e)Insurance premium covers a period of one month in advance.You are required to prepare manufacturing, trading & profit & loss account for the year ended 31st march, 2004 & balance sheet as on that date.
Q.22 The trial balance of Mrs. Deepali as on 31st December, 2005 was as follows :-Debit balance Rs. Credit balance Rs.Raw material 23,000 Sundry creditors 17,000Work in progress 10,000 Bills payable 8,500Finished goods 15,500 Sales of scrap 1,500Sundry debtors 27,000 Commission 400Carriage inward 1,000 Provision for doubtful
debts1,600
Carriage outward 1,000 Deepali’s capital A/c 1,00,000
Bills receivable 16,000 Sales 2,00,000
Wages 12,000Salaries 10,000Repairs to plant 1,200Repairs of office furniture 600Purchase 1,00,000Cash at bank 2,300Plant & machinery 90,000Office furniture 9,000Rent 5,000Lighting expenses 1,800Factory insurance 2,000General expenses 1,600
3,29,000 3,29,000
Adjustments :-(a)closing stock as on 31st December, 2005 was :- Raw materials Rs.15,800 ; Finished goods Rs.18,200 ; Semi-finished goods Rs.7,000.(b)Salaries Rs.2,000 & wages for December, 2005 Rs.2,000 was paid in January 2006.(c )Lighting expenses were outstanding Rs.600 whereas insurance was prepaid Rs.500.(d)25% of lighting expenses & rent is to be charged to office premises & the remaining amount is to be charged to factory.(e)Depreciation is to be written off on machinery at 10% p.a. & on furniture at 5% p.a.(f)Provision for doubtful debts is to be maintained at 10%.You are required to prepare manufacturing, trading & profit & loss account for the year ended 31-12-2005 & balance sheet as on that date.
Q.23 From the following trial balance of Deep Enterprises, prepare manufacturing, trading & profit & loss account for the year ended 31st December, 2003 & the balance sheet as on that date.Particulars Rs. Particulars Rs.Drawings 30,000 Capital 5,00,000Manager’s salary 6,000 Sundry creditors 1,00,000Cash in hand 2,000 Loan 80,000Cash at bank 35,000 Reserve for bad debts 6,000Sundry debtors 95,000 Purchases returns 7,000Patents 4,000 Sales 2,64,000Plant & machinery 1,00,00
0Land & building 2,00,00
0Extension to buildings 20,000Legal charges for acquisition of building
5,000
Purchases of raw materials 1,00,000
Raw materials (1-1-2003) 40,000Work in progress (1-1-2003)
75,000
Finished goods (1-1-2003) 95,000Carriage inward 8,000Wages & salaries 90,000Factory expenses 8,000Factory rent & rates 10,000Office expenses 5,000Printing & stationery 10,000Discount 6,000Advertisement 5,000Bad debts 4,000Goodwill 4,000
9,57,000
9,57,000
Adjustments:-(a)On 31-12-2003 stocks were valued as :- Raw material Rs.50,000; Work in progress RS.80,000; & Finished goods Rs.1,00,000.(b)Outstanding expenses – Advertisement Rs.500 & printing Rs.300.(c )Stock of stationery on hand Rs.1,000 on 31-12-2003.(d)Depreciation :- Plant & Machinery at 10% & patents at 20%.(e) Manger is entitled for a commission of 5% on net profit before charging his commission.(f)Increase reserve for bad debts by Rs.3,000.(g)Interest on loan of Rs.1,000 is still unpaid.
Q.24 Prepare manufacturing, trading & profit & loss account for the year ended 31st march, 2004 & balance sheet as at that date of Shri. S. Singh, manufacturer, from the following Trial balance & information :-Particulars Dr. Rs. Cr. Rs. Particulars Dr. Rs. Cr. Rs.Advertising 1,660 Purchases 67,336Bad debts 1,210 Packing & transport 2,170Bad debts provision 2,000 Rent & rates 2,972Bank charges 240 Repairs to plant 1,570Capital account of Singh 70,000 Salaries –office 7,380Current account of Singh 3,246 Sales 1,58,34
8
Drawing A/c of Singh 16,000 Stock 1-4-03 :-Discount 824 -Raw materials 10,460Factory power 7,228 -Finished goods 14,760General expenses (factory)
410 -Work in progress 3,340
General exp. (office) 692 Wages- factory 41,400Insurance 1,804 Debtors 21,120Light & heat 964 Creditors 12,300Plant & machinery (1-4-03)
30,000 Cash at bank 7,852
Plant & machinery bought 30-9-03
4,000 Cash in hand 350
Furniture 1,8002,46,718 2,46,71
8(a)Stock at 31st march, 2004 :- Raw materials – Rs.7,210 ; Work in progress – Rs.3,480 ; Finished goods Rs.19,300 ; packing materials RS.250.(b)The following liabilities are to be provided for :- (i)Factory power – RS.1,124 ; (ii)Rent & rates – Rs.772 ; (iii)Light & heat – Rs.320 ; (iv)General expenses (office) – Rs.80 ; (v)General expenses (Factory) – Rs.50.(c )Insurance prepaid Rs.340.(d)Provide depreciation at 10% p.a. on plant & machinery & 5% p.a. on furniture.(e)Increase the bad debts provision by Rs.1,000.(f)5/6th of rent & rates, light & heat & insurance are to be allocated to the factory & 1/6th to the office.
Q.25 Following is the trial balance of Mrs. Rashmi as on 31-3-2004 :-Particulars Dr. Rs. Cr. Rs. Particulars Dr. Rs. Cr. Rs.Capital 8,00,000 Bills receivable 3,01,000Drawing 40,000 Bills payable 1,00,000Opening stock Sundry debtors 6,00,000-Raw materials 50,800 Sundry creditors 4,00,000-Work in progress 25,800 Plant & machinery 16,00,00
0-Finished goods 2,18,000 Motor car 6,00,000Purchase of raw material
22,24,000
Returns 24,000 30,000
Wages 79,200 Interest @ 14% on investment
22,000
Power & fuel 48,500 Investments (1-4-03) 2,00,000Factory rent 25,000 Bad debts 10,000Carriage outward 34,700 Provision for bad &
doubtful debts6,000
Sales 48,74,000
LIC premium paid 8,000
Insurance premium
51,000 Office rent 64,600
Discount 5,000 19,000 Printing & stationery 41,40062,51,000
62,51,000
(a)Closing stock cost market value Raw materials 90,000 1,00,000 Work in progress 50,000 50,000 Finished goods 4,00,000 3,60,000(b)Depreciation of plant & machinery @15% p.a. & Motor car @ 20% p.a.(c )General insurance prepaid was Rs.9,000.(d)Provide for outstanding factory rent Rs.13,000.
(e)Finished goods costing Rs.20,000 & Raw materials costing Rs.30,000 were destroyed by fire. Insurance co. admitted claim of Rs.15,000 for finished goods & Rs.20,000 for raw materials by the date of balance sheet.(f)Write off Rs.20,000 as bad debts (g)Create provision for doubtful debts & provision for discount on debtors @ 5% & 2% .(h)On 30-3-2004 goods costing Rs.40,000 were purchased on credit (included in closing stock)which remained unrecorded.(i)Purchases include Rs.80,000 in respect of plant & machinery purchased on 1-10-2003.(j)Proprietor had withdrawn goods at sale price of Rs.30,000 which included profit element of 20% on cost. This amount was recorded through sales register & was wrongly debited to Mrs. Rama’s (debtor) account.Being the accountant of Mrs. Rashmi you are required to prepare manufacturing, trading & profit & loss account for the year ended 31st march, 2004 & balance sheet as at the date.
Q.26 The following balances are extracted from the ledger account of Mr. Bharat as on 31st December,2003 Particulars Dr. Rs. Cr. Rs. Particulars Dr. Rs. Cr. Rs.Mr. Bharat’s Capital
1,40,000
Wages 30,000
Plant & Machinery 45,000 Salaries 22,000Opening Stock Trade expenses 9,000-Raw materials 20,000 Rent 12,000Finished goods 5,000 Consignment (Mr.X)
A/c33,000
Purchases & sales 3,74,000
4,60,000
cash 5,000
Debtors & Creditors
1,35,000
90,000
6,90,000
6,90,000
Adjustment :-(a)Opening stock of finished goods include stock of stationery of RS.200.
(b)Closing stock of raw materials Rs.10,000; Closing stock of finished goods RS.20,000 (including stock of stationery Rs.100).
(c )Trade expenses include payment of stationery of Rs.2,000.(d)Closing creditors include creditors for stationery of Rs.500 for credit purchases.(e)Mr. Bharat sent goods costing RS.33,000 to Mr. X (Consignee) who sold 2/3rd of the quantity
for Rs.35,000. The consignee has incurred expenses of Rs.2,000 & is entitled for commission of 5% on sales .
(f)Sales include a sum of Rs.32,000 received on sales of all goods received on behalf of Mr. Y(consignor). Mr. Bharat is entitled to a commission of 10% on these sales for which no entries were passed. The expenses of Rs.1,000 for sales of behalf of Mr. Y are debited to trade expenses (the expenses to be incurred by Mr. Y)
(g)Provide 10% depreciation on plant & machinery.Prepare manufacturing, trading & profit & loss account for the year ended 31st December,2003
&the balance sheet on that date.
Q.27 From the following trial balance of Shri Kamal, prepare manufacturing, trading, & Profit & loss A/c for the year ended 31st December, 2002 & the balance sheet as on that date.
Particulars Dr. Rs. Particulars Cr. Rs.Drawings 36,000 Capital 4,50,000Goodwill 40,000 Sundry creditors 1,25,000Plant & machinery 2,00,000 Bank loan 75,000Land & building 1,20,000 Reserve for bad debts5,500Cash & bank balances37,000 Sales 3,24,000Sundry debtors 59,000 Discount 3,500
Trade marks 9,000 Returns outwards 6,500Salary to managers 16,000Purchase of raw material1,50,000Opening stock :--Raw materials 35,000-Work in progress 60,000-Finished goods 90,000Carriage inwards 10,000Wages & salaries 75,000Factory expenses 12,000Factory rent & rates 15,000Office expenses 8,000Printing & stationery 7,500Discount 5,500Bad debts 4,500
9,89,500 9,89,500Adjustments :-(a)On 31st December,2002 stocks were valued as :- Raw material RS.55,000; Work in progress
Rs.75,000; Finished goods Rs.95,000.(b)Outstanding expenses : Printing & stationery Rs.1,500.(c )Prepaid expenses : Factory rent & rates Rs.2,000.(d)Manager is entitled to a commission@ 2% of net profits, before charging his commission.(e)Increase reserve for bad debts by Rs.5,000 (f)Interest on bank loan still unpaid RS.1,200.(g)Depreciate :- Plant & machinery @ 10% p.a.(h)Write off trade marks @ 33 1/3 % p.a.
Q.28 The Trial balance of Ketan on 31st December, 2002 is as follows:- Particulars Dr. Rs. Particulars Cr. Rs.Opening stock: Sundry creditors 17,000Raw materials 23,000 Bills payable 8,500Work in progress 10,000 Sale of scrap 1,500Finished goods 15,500 Commission 350Sundry debtors 27,000 Provision for doubtful debts 1,650Carriage on purchase 1,500 Capital account 1,00,000Bills Receivable 18,000 Sales 2,00,000Wages 12,000 Current account of Ketan 9,700Salaries 10,000Telephone charges 500Postage 500Repairs to plants 1,200Repairs to office furniture 600purchases 1,00,000Cash at bank 12,000Plant and machinery 90,000Office furniture 9,000Rent 5,000Lighting 1,300General Expenses 1,600
3,38,700 3,38,700
The following additional information is provided to you:1)closing stock :Raw materials Rs. 15,800Finished goods Rs.18,200Semi-finished goods Rs.7,000
2)Salaries updated for December, 2002 Rs. 1,0003)Wages updated for December, 2002 Rs.3,000.
4)Machinery to be depreciated by 10% 5)Office furniture is to be depreciated by 5%6)Provision for doubtful debts is to be maintained at 10%7)Lighting is to be divided between office premises & factory. Lighting is to be charged to
office premises forRs.300 & remaining Rs.1,000 are to be charged at factory. 8)Factory premises occupy 1/4th of the total area.You are requested to prepare the manufacturing, trading & profit & loss A/c & balance
sheet relating to 2002.
Q.29 The following balances on 31st march,2002 are extracted from the books of Mr. Amritlal, a manufacturer- Cum- Trader.
Particulars Rs Particulars Rs.Stock of raw material april 1,2003:
25,500 Travelling expenses 4,300
Stock of work in progress 30,700 Brokerage & purchase (Raw material)
3,100
Stock of finished goods 40,500 Commission on sales 2,600Stock of stores factory 2,100 Advertisement 12,400Cash in hand 1,600 Sales 10,36,50
0Cash in bank 32,800 Returns outwards (finished
goods)12,200
Purchase of raw materials 3,12,000 Returns inwards (finished goods)
23,700
Purchase of finished goods 1,27,400 Repairs & renewals (factory) 8,500Purchase of factory stores 12,300 Trade expenses 10,200Factory wages 2,94,600 Provision for bad debts 2,600Salary of works manager 15,000 Bad debts 1,800Office salary & wages 86,000 Plant & machinery 3,26,400Carriage inward(raw material)
32,300 Furniture & fixture 57,300
Carriage inward (finished goods)
10,600 Sundry trade debtors 65,800
Carriage outward 3,700 Sundry trade creditors 1,53,400Rent & rates :factory 2,800 Loose tools 8,400
- General 2,400 Bills receivable 4,600Electric charges : Factory 3,800 Bills payable 5,400
- General 1,700 Loan from bank (Oct 1, 2003@ 6% p.a.)
1,20,000
Insurance : Factory 2,100 Amritlal’s capital 2,80,000- General 700 Amritlal’s drawing 40,000
Adjustments :-(a)Closing stock on 31st march, 2004 : Raw material Rs. 38,700; Work in progress
RS.33,300; Finished goods Rs.43,800; Factory stores RS.2,900.(b)Purchase of finished goods for Rs.500 utilized for private use of Amritlal has not been
duly adjusted.(c )To bills receivable for RS.200& 300 respectively has been dishonoured & await
adjustment.(d)A quarter of advertisement represent payment in advance to adverting agent.(e)Depreciation on plant & machinery & furniture & fixture @ 10% & on loose tools @
20% to be provided.(f)Provision for bad debts should be maintained at 5% of debtors. You are required to prepare manufacturing, trading & Profit & loss A/c for the year ending
31st march,2004 & the balance sheet as at that date.
Q.30 From the following particulars of shri Jay , prepare the manufacturing, trading & P&L A/c for the year ended 31st march,2004 & a balance sheet as on that date after giving effect to the adjustments indicated below:
Particulars Rs Particulars RsCapital A/c 3,66,000 Sundry expenses 1,750Drawings A/c 50,000 Patents 6,000Purchases 10,52,50
0Postage & telegrams 6,500
Rates and taxes 12,500 Wages 17,500Salaries 50,000 Factory building 1,00,000Carriage 10,000 Furniture & fixture 25,750Fuel & coal 7,000 Cash discount received 7,500Factory insurance 3,000 Plant and machinery 47,500Advertisement 10,000 Sundry debtors 93,500Factory power 8,000 4% govt. promissory
notes (subscribed on 1/4/03)
10,000
Bad debts w/o 5,000 Sundry creditors 52,500Cash discount allowed 1,000 sales 12,66,50
0Opening stock: Cash in hand 22,750Raw materials 30,000 Cash at bank 97,250Finished goods 25,000Adjustments:1)Depreciation to be provided at the following rates: plant & machinery 10%, patents
10%, buildings 21/2% , furniture 5%2) Provide 2 ½% on debtors for doubtful debts 3)Purchase invoices aggregating Rs. 12,500 were omitted to be entered in the purchase
day book.4) Debtors include Rs. 2,500 due from the proprietor 5)An amt of Rs 2,500 received in respect of private loans advanced by the proprietor
was wrongly credited to sundry debtors A/c 6) Purchase invoices of the value of Rs.37,500 were entered in the purchase day book on
29th march ,03 but the goods in respect there of were received on 3rd April , 2004. These goods were not included in the closing stock.
7)An amt of Rs 1750 received from a debtor was wrongly credited to sales A/c . 8) The annual interest on govt. promissory notes accrued due on 31st march, 2004 but
was collected only after 31st march ,2004 9)Carriage includes Rs. 4,000 towards outwards charge.10) Stock in trade as at 31st march ,2004 : raw material Rs.25,000, finished goods Rs
20,000.
Q.31 The undernoted balances are extracted from the books of Aakash for the year ending December 31, 2003 :
Particulars Rs. Particulars Rs.Advertisement 6,000 Investment at cost
(M.V Rs.2,950)3,500
Bad debts 6,312 Loan 45,000Bank overdraft 33,412 Patents & Trade
marks7,200
Bills payable 18,315 Plant & Machinery 43,939Bills receivable 12,846 Power 9,835Buildings 49,500 Purchases 3,12,411Capital 1,00,000 Purchase returns 2,513Carriage inwards 2,215 Rent, rates & taxes 7,358Carriage outwards 3,780 Salaries 14,915Cash in hand 535 Sales 4,88,632
Dividends 4,500 Sales returns 4,635Drawings 23,309 Stock on 1-1-2003:Furniture 10,000 -Raw materials 29,158Insurance 2,912 -Finished goods 95,718Wages 56,812 Sundry creditors 95,493Sale of machinery 7,500 Sundry debtors 92,475 Adjustment :(a)Depreciation is to be provided on building at 10%, Plant & Machinery 15% & Furniture
at 10%.(b)Dividends were received after deduction of tax of Rs.1,500 at source .(c )Interest on loans for Rs.45,000 amounting to 2,500 had not been accounted for.(d)Patents & Trademarks were acquired at a cost of Rs.11,200 in 1999 & every year 1/14th
is being written off.(e)Prepaid rent amounting to Rs.300 has been included in Rs.7,358.(f)A machine acquired at a cost of RS.10,000 in 1999 & depreciated every year at 15%
were sold during the year . Its written down value is included in plant & machinery of Rs.43,939. (g)Stock in hand on December 31,2003 was as under : Raw materials Rs.31,345; Finished
goods Rs.98,412.(h)Sundry debtors include a date of Rs.18,000 of which only Rs.12,500 is likely to be
recovered. A provision has to be made for the balance.(i)Purchase includes cost of two typewriters amounting to Rs.3,000.(j)Shri. Aakash had withdrawn for personal use some raw materials for which the cost was
Rs.3,500 but the M.V. on the date of withdrawal was Rs.4,000. Sales were credited by Rs.3,500. Prepare the manufacturing, Trading & Profit & Loss A/c & the Balance Sheet of Shri.
Aakash utilizing the above mention data.
Q.32 From the following balance extracted at 31st march,2004 prepare accounts in search form as to disclose :a) coast of raw materials consumed , b)gross profit on manufacture , c)gross profit on sales & d) % on net profit to sales
Particulars Rs Particulars RsStock on 1/4/03: Office rents & rates 1,300Raw materials 600 Coal 1,158Manufactured goods
1,948 Carriage inward 782
Dep. Plant & machinery
2,600 Office salaries 1,880
Printing & stationary
186 Carriage outwards 466
Discount allowed 748 General expenses 634Purchases: Factory rent &
rates4,542
Raw materials 17,452 Manufacturing salaries & wages
22,058
Manufactured goods
2,548 Travelling expenses
558
Repairs to machinery
500 Sales 59,884
Adjustments:1)Stock on 31st march ,04 : manufactured goods Rs 5,588(all stock from the goods
supplied by the manufacturing department); raw materials Rs 400 2)Goods manufactured are supplied by the manufacturing department at current sales
price Rs 54,300 3)Stock of finished goods as at April 2002 belonged to that category of goods which were
purchased from the open market
Q.33 Sri Roy carries on business as a clothing manufacturer with two managers, Guha who is responsible for the factory & Gandothra who is responsible for the sales department.
Each manager is entitled to a commission of 20% of the net profit of his department before charging such commission. Finished goods are transferred from the factory to the sales department at factory cost plus 20%. Sri Roy is to be credited with interest @8% p.a. on his fixed capital of which 3 quarters are to be taken as been employed by the factory & a quarter by the sales department .
Particulars Dr. Rs.
Cr. Rs. Particulars Dr. Rs.
Cr. Rs.
Capital A/c- Roy 30,000
Finished goods stock prov. 1-4-03
420
Freehold factory at cost (including land Rs.4,000)
20,000
Trade debtors & creditors 3,600 4,200
Factory plant & machinery at cost
4,800 Prov.for doubtful debts 280
Traveller’s cars 2,600 Purchase of raw materials 36,600
Prov. For dep. 1-4-03:
Wages & salaries 19,800
-Freehold factory 1,920 Rates & insurance (incl.factory Rs.1,160)
1,510
-Factory plant & machinery
1,600 Sundry expenses (incl.factory Rs.1100)
1,500
-Traveller’s cars 1,200 Motor expenses 400Stock 1-4-03: Sales 72,00
0-Raw materials at cost
6,800 Balance at bank 11,490
-Finished goods at transfer value
2,520
Adjustments:-(a)Stock on hand as on 31st march, 2004 were as follows: Raw materials at cost Rs.8,400;
Finished goods at transfer value Rs.2,400.(b)Wages& salaries including the following : salaries of: Guha Rs.1,400; Gandothra
Rs.1,500 & Roy’s Drawing Rs.2,400. Sales department wages & salaries Rs.1,800; the balance represented factory wages.
(c )Provision is to be made for dep. On the freehold factory, Plant & machinery & travelers cars at 2%, 10%, & 25% respectively calculated on cost.
(d)On 31st march, 2004 Rs.120 was owing for sundry expenses (sales department) & rates paid in advance amounted to Rs.260 (sales department Rs.50)
(e)Of the trade debtors Rs.60 for which provision had previously been made, is to be written off.
You are required to prepare :- (1)A/c for the year ended 31st march, 2004 showing : (i)Material cost, (ii)Factory cost of goods produced, (iii)Profit of the factory & of the sales department & (iv)appropriation of profits &
(2)The balance sheet as on that date.
Q.34.From the following trial balance of shri shubham as on 31st march ,2004 , you are required to prepare a trading & P&L A/c for the year ending 31st march ,2004 & balance sheet as on that date , after making the necessary adjustments :
Particulars Dr.Rs Cr.Rs Particulars Dr.Rs Cr.RsCapital A/c 80,000 Postage &
telegram1,500
Drawing A/c 12,000 Rent ,rates & taxes
3,600
Furniture & fixtures
4,000 Bad debts 400
Plant & 30,000 Sundry 12,000
machinery creditorsPatents rights (10 yrs to run from 1/4/03)
20,000 Loan from ram @6%p.a from 1/10/03
10,000
Stock 20,000 Discount 600Purchases 85,000 Trade
expense200
Salaries 7,400 Interest on loan from ram
150
Wages 15,000 Insurance 800Sundry debtors
20,400 Travelling expenses
500
sales 1,32,000 Sundry expenses
300
Cash in hand
3,050 Cash at bank
10,300
1) Stock as on 31ST march 04 valued at Rs 27,2002) A new machine was installed on 1ST Jan 04 for Rs 3000. No entry in this respect was
passed in the books. Wages of Rs 1000 paid for installing machine were debited to wages A/c 3) Of the sundry debtors is 400 are bad & are to be written off. You are required to
maintain a reserve of 5% on debtors for doubtful debts & a reserve 2% on debtors for discount on debtors.
4) Goods of value of Rs 1000 were given away free as advertising matters 5) Depreciate plant & machinery at 20% & furniture & fixture @ 10 % p.a.
Q.35 Following is the Trial balance of Mr.Y a cloth merchant as at 31-12-2003.Particulars Dr. Rs. Particulars Cr. Rs.Drawings 36,000 Capital 3,00,00
0Cash in hand 3,600 Loan (taken on 1-7-03
@18% p.a.)30,000
Cash at bank 43,050 Creditors 50,400Plant & machinery 1,80,000 Sales 4,80,00
0Furniture & Fixture 18,000Insurance charges 2,400Miscellaneous expenses
1,200
Trademark rights (10 yrs from 1-1-03)
60,000
Stock (1-1-03) 81,000Salaries & wages 54,600Sundry debtors 68,400Rent, Rates & Taxes 18,600Carriage inwards 1,800Purchases 2,85,600Postage & telegram 2,400Bad debts 1,600travelling 800Interest on loan(1-7-03)
1,350
8,60,400 8,60,400
You are required to prepare a Trading, P & L A/c for the year ended 31-12-2003 & a balance sheet as at that date after making the following adjustment:-
(1)Stock as on 31-12-2003 valued at Rs.76,400.(2)Depreciate plant & machinery at 10% & furniture & fixture at 5% p.a.(3)Invoices of the value of Rs.7,200 were recorded in the sales books on 27th
December,2003 but goods were not dispatched until 5th jan, 2004 & were included in the closing stock, at that value.
(4)Of the sundry debtors Rs.2,400 are bad & should be written off.(5)Create a reserve for 5% on sundry debtors for bad & doubtful debts .
Q.36 The following is the trial balance of Mr. Raj as on 31st march,2004. You are required to prepare the final A/c after giving effect to the adjustments :Particulars Dr. Rs. Cr. Rs.Capital A/c 1,00,000Furniture 20,000Purchases 1,50,00
0Debtors 2,00,00
0Interest earned 4,000Salaries 30,000Sales 3,21,000Purchases returns 5,000Wages 20,000Rent 15,000Sales returns 10,000Bad debts W/o 7,000Creditors 1,20,000Drawings 24,000Provision for bad debts 8,000Printing & stationery 8,000Insurance 12,000Opening stock 50,000Office expenses 12,000
5,58,000
5,58,000
Adjustment :-(a)Depreciate furniture by 10% p.a.(b)Provision for doubtful debts is to be created to the extent of 5% of debtors.(c )Salary for the month of march, 2004 amounting to Rs.3,000 was unpaid which must be
provided for. However salaries included Rs.2,000 paid in advance.(d)Insurance amounting to Rs.2,000 is prepaid.(e)Provide for outstanding office expenses RS.8,000.(f)Stock used for private purposeRS.6,000.(g)Closing stock in trade Rs.6,000 .
Q.37 From the following Trial balance of Shri Telly as at 31st December 2003, you are required to prepare his trading & P& L A/c for the year ended 31st December, 2003 & a balance sheet as at that date after making the necessary adjustments:-Particulars Dr. Rs. Cr. Rs.Telly’s capital 1,60,000Telly’s drawings 16,000Machinery : Balance 1st jan,2003
40,000
Additions 1st july 2003 10,000Stock 1st jan,2003 26,000Purchases & sales 1,64,000 2,40,000
Returns 4,000 2,000Sundry Debtors & creditors 41,200 20,000Furniture & fixtures 10,000Freight inward 4,000Carriage outward 1,000Rent, Rates & taxes 9,200Printing & stationery 1,600Trade expenses 800Postage & telephone 1,600Prov. For doubtful debts 800Insurance charges 1,400Salaries & wages 42,600Cash at bank 49,400
4,22,800 4,22,800(a)Stock at 31st December, 2003 were valued at RS.29,200 – M.V. Rs.30,000(b)Write off RS.1,200 as bad debts (c )The provision for doubtful debts is to be maintained at 5% on sundry debtors(d) Create a provision for discount on debtors & reserve for discount on creditors at 2%
each.(e)Provide for dep. On Furnitures & fixtures at 5% p.a. & on plant & machinery at 20%
p.a.(f)Insurance prepaid was Rs.200.(g) A fire occurred on 25th December,2003 in the godown & stock of value of Rs.10,000
was destroyed. It was fully insured & a insurance co. admitted the claim in full.
Q.38 From the following balances & information, prepare Trading & P&L A/c of Mr. X for the year ended 31.3.2004 & the Balance Sheet as on that date :Particulars Dr. Rs. Cr. Rs. Particulars Dr. Rs. Cr. Rs.X’s Capital A/cPlant & MachineryDepreciation on P&MRepairs to plantWagesSalaryIncome tax of Mr. XCash in hand & at bankLand & buildingDepreciation on buildingPurchasesPurchase return
3,6004005205,4002,10010040014,90050025,000
10,000
300
SalesBank OverdraftAccrued incomeSalaries outstandingBill receivableProvision for bad debtsBills payableBad debtsDiscount on purchasesDebtorsCreditorsOpening stock
300
3,000
200
7000
7,400
70,820
49,800760
400
1,0001,600
708
6,252
70,820
Additional information:1.] Stock on 31.3.2004 was Rs. 6,0002.] W/Off further Rs.600 for bad debts & maintain a provision for bad debts @ 5% on
debtors.3.] Goods costing Rs.1,000 were sent to customer for Rs. 1,200. On 30th March 2004 on
sale or return basis. This was recorded as actual sales.4.] Rs. 240 paid as rent of the office were debited to land lord A/c & were included in the
list of debtors.5.] General manager is to be given a commission @ 10% of net profit after charging the
commission of the works manager & his own.
6.] Works manager is to be given commission @ 12% of net profit before charging the commission of general manager & his own.
Q.39 Mr. Boke is a shopkeeper he had prepared the following trial balance from his ledger as at 31st march 05Head of A/c Rs Head of A/c RsPurchases 3,10,000 Motor car 48,000Sales 4,15,000 Bad debts 2,000Stock (1-4-2004) 50,000 Cash discount (Dr.) 4,000Cash in hand 2,100 General expenses 14,000Cash at bank 12,000 Carriage Inward 10,000Boke’s capital 2,88,600 Carriage outward 22,000Drawing 4,000 Printing & stationary
(for last yr.)11,000
Rates/taxes 5,000 Creditor 40,000Salaries 32,000 Debtor 1,00,000Postage & fax 11,500 Advertising 17,000Commission of sales 35,000 Furniture 22,000Insurance 9,000 Printing & stationary
(for current yr.)3,000
Wages 20,000Adjustment :(1)Cost of goods in stock on 31st march, 2005 was Rs.1,45,000.(2)Goods withdrawn by Mr. Boke for personal use RS.5,000.(3)Rs.11,000 Printing &stationary for the last year was not provided in the last year but
was provided & paid in this year.(4)Purchases include purchases of furniture Rs.10,000.(5)Debtors include Rs.5,000 bad debts. Provision for bad debts to be created @ 5%.(6)Depreciate furniture by 10%, Motor car by 20%.(7) The salesman were infact entitled to commission of Rs. 40,000 in aggregate.
Q.40 From the following particulars for the year ending 31st march,2004 of M/s ABC Co. , Prepare Trading, P& L, & Balance sheet as on that date :-Particulars Rs. Particulars Rs.Stock 1-4-2003 23,200 Advertisement 15,950Capital 1-4-2003 1,45,000 Apprenticeship
premium3,480
Purchases 58,000 Bills receivable 10,150Sales 2,32,000 Bills payable 7,250Office expenses 23,345 Sundry debtors 58,000Return inward 4,350 Plant & machinery 13,050Interest on loan 870 Sundry creditors 45,820Return outward 1160 Loan (Dr. )@ 10% on
1.4.200314,500
Drawings 8,700 Investment 8,700Wages 20,010 Cash at bank 10,150Land & building 1,59,500 Cash in hand 725Furniture & fixture 7,250 Stock (31.3.2004) 20,300
Adjustment:-(a)Interest on capital to be allowed at 5% for the year.(b)Interest on drawings to be charged to him as ascertain for the year Rs.232.(c )Apprenticeship premium is for 3 years received in advance on 1.4.2003.(d)Stock valued at Rs.8,700 destroyed by fire on 25-3-2004, but the insurance co.
admitted a claim of Rs.5,800 Only to be paid in the year 2004.(e)Rs.14,500 out of advertisement expenses have to be carried forward. (f)The manager is entitled to a commission of 10% at the net profit calculator after
charging such commission.
(g)The stock include material worth Rs.2,900. For which bill had not been received & therefore not yet accounted for.
Chap – 5. Final Accounts of Non-Profit making Organisation.
Q.1 Prepare Receipts & Payments accounts from the following details taken from the cash book of a Health Club.Particulars Rs.Opening balance :-Cash in hand 5,000Cash at bank 25,000Subscriptions 1,65,000Donations 35,000Investment purchase 80,000Rent paid 20,000General expenses 21,500Postage & stationery 2,000Courier charges 1,000Sundry expenses 2,500Closing cash in hand 12,000
Q.2 Prepare the income & expenditure A/c from the following details :Particulars Rs.Fees collected including Rs.80,000 on A/c of the P.Y
5,20,000
Fees for the year outstanding 30,000Salary paid including RS.5,000 on A/c of the P.Y
60,000
Salary outstanding at the end of the year 3,000Entertainment expenses 8,000Tournament expenses 25,000Meeting expenses 18,000Travelling expenses 7,000Purchase of books & periodical including Rs.31,000 forPurchase of books 40,000Rent 15,000Postage, telegram & telephone 6,000Printing & stationery 18,000Donation received 25,000
Q.3 How will you deal with the following in the income & expenditure A/c & balance sheet of a Club as at 31-12-2003.
Subscription received during 2003 Rs.25,000. Subscription outstanding of 31-12-2002 Rs.5,000. Subscription outstanding om31.12.2003 Rs.10,000. Subscription received in advance as on 31-12-2002 Rs.7,500.
Subscription received in advance as on 31-12-2003 Rs.5,000.
Q.4 The receipt & payment A/c shows RS.1,00,000 received on A/c of Life membership fees during the year. How will you show this item in the final A/c of a NPO for the year ending 31st march,2007 ?
Q.5 The receipt & payment A/c shows Rs.10,00,000 received on A/c of legacies for general purpose of the NPO during the year. How will you show this item in the final A/c of a NPO for the year ending 31st march, 2007 ?
Q.6 The Receipts & Payments A/c shows RS.10,00,000 received on A/c of legacies for the specific purpose of construction of Building of the NPO during the year. How will you show this item in the final A/c of a NPO for the year ending 31st march,2007 ?
Q.7 The receipts & payments A/c shows Rs.10,000 received on A/c of entrance fees during the year. How will you show this item in the final A/c of a NPO for the year ending 31st march,2007 ?
Q.8 The receipts & payments A/c shows RS.50,000 received on A/c of donations for general purpose during the year. How will you show this item in the final A/c of a NPO for the year ending 31st march, 2007 ?
Q.9 The receipts & payments A/c shows RS.50,000 received in A/c of donations for specific purpose of a lecture series during the year. How will you show this item in the final A/c of a NPO for the year ending 31st march, 2007 ?
Q.10 How will you deal with the following item while preparing Final A/c of a NPO for the year ending 31-3-2007. Prizes awarded RS.5,000 ?
Q.11 How will you deal with the following item while preparing Final A/c of a NPO for the year ending 31-3-2007: (1)Prizes awarded 5,000 (2)Prize fund RS.40,000 (3)Donations towards prize fund Rs.7,200.
Q.12 How will you deal with the following item while preparing Final A/c of a NPO for the year ending 31-3-2007 :
(1)Prizes awarded 5,000 (2)Prize fund RS.40,000 (3)Donations towards prize fund RS.7,200 (4)Investment RS.40,000 (5)Interest received on investment RS.3,600.
Q.13 How will you deal with the following item while preparing Final A/c of a NPO for the year ending 31-3-2007 :
(1)Prizes awarded 3,000 (2)9%Prize fund investment RS.40,000 (3)Prize endownment fund Rs.40,000 (4)Donations towards prize fund RS.7,200 (5)Interest received on investment Rs.3600.
Q.14 How will you deal with the following item while preparing Final A/c of a NPO for the year ending 31-3-2007 :
(1)Prizes awarded 5,000 (2)9%Prize fund investment RS.40,000 (3)Prize endownment fund Rs.40,000 (4)Donations towards prize fund RS.7,200 (5)Interest received on investment Rs.3600.
Q.15 How will you deal with the following item while preparing Final A/c of a NPO for the year ending 31-3-2007: (1)Receipt from charity show RS.7,000 (2)Expenses on charity show RS.3,000.
Q.16 How will you deal with the following details while preparing the final A/c’s as on 31st December,2003:
Balance as on 1-1-2003Liabilities Rs. Assets Rs.Creditors for sports materials
300 Sports materials 400
Dr. Receipts & Payments A/c for the year ended 31 st December,2003 Cr.Receipts Rs. Payments Rs.
Sports material 7,000Additional information : Sports material on hand 31st December,2003 Rs.1,100.
Q.17 Details available areas follows:(1)Opening balance of machinery RS.10,000 (from the opening balance sheet)(2)Sale of assets for Rs.20,000. The WDV of the assets was RS.15,000.(3)Depreciation for the year RS.1,000 (from the income & expenditure A/c)
(4)Closing balance C/d RS.19,000( from the closing balance sheet).Find out machinery purchased during the year.
Q.18 (1)R & P A/c shows salary paid during 2003 RS.2,150.(2)”Adjustment 1”:- Shows that salary due for 2003 but not paid yet is RS.450. “Adjustment 2” :- shows that salary due for 2002 but paid during 2003 is RS.40; & “Adjustment 3” :- Shows that salary for 2004 paid in 2003 is Rs.60;
Q.19 How will you deal with the following item while preparing Final A/c of a NPO for the year ending 31-3-2007: (1)opening balance of the stationery RS.10,000 (2)Purchase of stationery RS.20,000 (3)Closing stock of stationery Rs.9,000.
Q.20 The following Balance sheet, Receipts & Payments A/c & adjustments relate to SAGAR academy prepare the income & expenditure A/c for 2003 & the balance sheet as on 31st December,2003:
Balance sheet as on 1 st January, 2003 Liabilities Rs. Assets Rs.Capital fund 1,80,000 Premises 1,20,000Equipment fund 20,000 Furniture 30,000Scholarship fund 4,000 Books 16,000creditors 6,000 Fixed deposits 20,000
Prepaid salaries 2,000Bank 20,000
2,10,000 2,10,000
Receipts & payments A/c for 2003 Receipts Rs payments RsTo opening bank balance 22,000 By salaries 72,000To fees received 1,20,000 By scholarship awarded 3,000To interest 4,000 By purchase of equipments 16,000To sundry receipts 2,000 By repayment to creditors 6,000
By miscellaneous exp. 25,000By purchase of books 6,000By closing bank balance c/d 20,000
1,48,000 1,48,000
Adjustments;1)Dep. Furniture by 20% & books by Rs. 4,0002) provide for outstanding salaries Rs. 4,000
Q.21 From the following information relating to TVA Club , prepare income & expenditure A/c for the year ended
31-3-04 & balance sheet as on that date:Receipts Rs. Payment Rs.To subscription from members 10,000 By tournament exp. 1,800To admission fees 300 By ground upkeep 1,500To miscellaneous receipts 400 By rates /insurances 600To hire of ground 1000 By telephones 150To tournament subscription 3000 By printing & stationary 300
To donation 16,000 By general exp. 500By salary 1,300By bank (fixed deposit) 6,000By investment 9,550By sports equipments 2,000By balance c/d 7,000
30,700 30,700 Balance sheet of TVA Club as on 1-4-03
Liabilities Rs. Assets Rs.Capital funds 3,60
0sports equipments 3,000
Outstanding salaries 100 Subscription due from members
600
Outstanding printing 100 Prepaid insurance 2003,800
3,800
You are also given that 1)Donation Rs 10,000 be kept in a separate A/c 2) Members subscription include Rs 1000 for the next year & Rs 400 is due for this year 3) Write-Off sports equipment by 5% p.a. 4) As on 31-3-2004 insurance is prepaid Rs.2505) Bonus of Rs 500 is outstanding & it is payable to the secretary for the year 2003-04
Q.22 the following is the receipts & payment A/c of a Indian Cultural society for the year ended 31st dec 03 & the balance sheet as on 1-1-03 Receipts Rs payments RsCash (1-1-03) 1,500 Bank over draft (1-1-03) 3,100Subscription: Investment in securities 3000-2002 200 Furniture 1450-2003 16,200 Salaries 6200-2004 250 Printing & stationary 890Entertainment show proceeds 2,000 Entertainment show
expenses1710
Entrance fees 670 Sundry exp. 1000Interest on securities 480 Telephone 420Sale of old chairs(book value nil ) 120 Cash (31-12-2003) 550
Bank (31-12-2003) 310021,420 21,420
Balance Sheet As On 1-1-03 Liabilities Rs Assets Rs.Capital fund 29,808 Cash 1500Bank over draft
3100 Investments 6500
Outstanding exp.
132 Premises 24500
Subscription in arrears (200+90)
290
Stock of stationary 125Prepaid telephones charges 125
33,040 33,040You are required to prepare the income & expenditure A/c of the society for the year
ended 31st December, 2003 & Balance sheet as on that date after considering the following :(1)The society has 1,800 members each paying annual fees of RS.10. subscription
amounting to Rs.90 were still in arrears for the year 2002.(2)Stock of stationery on 31st December, 2003 was Rs.87.(3)Entrance fees are to be capitalized.(4)Salary of Rs.550 for December, 2003 is outstanding. The society had paid Rs.500 in
dec. , 2002 for telephone charges out of which Rs.125 related to the year 2003.
(5)Depreciate fixed assets by 5%.
Q.23Following is the Receipts & Payments A/c of the Delhi Club for the year ended 31st December, 2003.Receipts Rs. Payments Rs.To balance b/d By secretary’s remuneration 5,000Cash 2,000 By salary to staff 5,000Bank 10,000 12,000 By canteen expenses 12,000To subscription By newspapers & magazines 1,000-2003 15,000 By construction of bldg. 25,000-2002 200 By balance c/d:-2001 100 15,300 -cash 800To interest on 5% govt. security (purchased in the past at a discount of 1%)
2,000 -bank 2,000
To sale of old furniture 1,000To sale of old newspaper 500To canteen collection 10,000To donation for bldg. fund 10,000
50,800 50,800 Balance sheet as on 1-1-2003
Liabilities Rs. Assets Rs.Capital fund 61,400 Cash 2,000Subscription in advance
200 Bank 10,000
Outstanding staff salary
2,000 5% govt. security 39,600
Furniture 10,000Subscription in arrears 1,000Prepaid canteen expenses
1,000
63,600 63,600 Adjustments :-(1)Subscriptions receivable RS.5,500.(2)Salary to staff outstanding RS.1,000.(3)Canteen expenses prepaid RS.500.(4)Construction expenses outstanding RS.2,000.(5)The book value of the furniture sold was RS.3,000.(6)Charge depreciation on furniture @ 10% on the closing net balance.You are required to prepare Income & Expenditure A/c for the year ended 31-12-2003 &
the Balance sheet as on that date.
Q.24 From the following particulars relating to Rama Krishna Mission Charitable Hospital, prepare Income & Expenditure A/c for the year ended 31st December,2003 & Balance sheet as on that date:
Receipts & Payments A/c for the year ended 31-12-2003Receipts Rs. Payments Rs.To cash in hand b/d 7,130 By medicines 30,59
0To subscriptions 47,996 By doctor’s honorarium 9,000To donations 14,500 By salary 27,50
0To interest on invest. @ 7% for full year
7,000 By petty expenses 461
To proceeds from charity show 10,450 By equipments 15,000
By expenses on charity 750
showBy cash in hand c/d 3,775
87,076 87,076
On 1-1-03 on31-12-03(1)Subscription due 240 280(2)Subscription received in advance 64 100(3)Stock of medicines 8,810 9,740 (4)Estimated value of equipments 21,200 31,600(5)Buildings (Cost less depreciation) 40,000 38,000
Q.25 Following is the Receipts & Payments A/c of Diamond Literary Club for the year ended on March 31, 2004:Receipts Rs. Payments Rs.To cash at bank 12,500 By salaries 2,500To subscriptions 52,500 By Printing &
Stationery1,250
To Annual day receipts
26,800 By Annual day expenses
2,500
To Mushaira receipts 22,000 By Telephone charges 2,500To Dividend receipts 2,000 By Sundry Expenses 2,000
By Investments in shares
75,000
By Postage & Telegrams
2,250
By Building maintenance
6,000
By Rent of theatre 10,000By Cash at bank 11,800
1,15,800
1,15,800
Adjustment:-(1)On 1st april,2003, building stood in the books at Rs.50,000 & investments in shares at
Rs.5,000 buildings are subject to depreciation @ 5% p.a.(2)There were 200 members paying subscription at the rate ofRS.250 p.a. each. Some
members have paid their annual subscription in advance during the year.(3) As on 1.4.2003, no subscription had been received in advance, but subscription were
outstanding to the extent of Rs.1,000 as at March 31st, 2003. Subscription accrued as on 31.3.2004 was Rs. 1,500.
(4) Postage & stamps worth Rs. 250 were in stock with secretary as on 1.4.2003 & as on 31.3.2004 they were valued at Rs. 150.
(5) Telephone charges paid in advance were Rs. 300.You are required to prepare Income & Expenditure for the year ending 31.3.2004 & the
B/S as on that date.
Q.26 Following is the Amir Khan’s library Cash A/c for the year ended 31.12.2001 :Receipts Rs. Payments Rs.To bal B/FTo admission feesTo subscriptionTo lecture hall hire chargesTo Misc.To interest on investment
4,5003,50019,5002,500
350600
30,950
By Salaries & WagesBy RentBy InvestmentBy StationeryBy Electric chargesBy BooksBy Outstanding expensesBy Bal C/F
6,8008,2503,5001,2507306,0007003,72030,950
You are required to prepare an Income & Expenditure A/c for the year ended 31.12.2001 & a B/S as on that date.
Adjustment:(1) On 31.12.200 the library had the following assets also :
Furniture Rs. 5,500, Books valued at Rs. 35,000 & Investment at a cost of Rs. 20,000.(2) Subscription received in advance this year amounted to Rs. 600 & outstanding liabilities on
31.12.2001 for salaries & wages Rs. 1,200 & for rent Rs. 750.(3) 60% of the admission fees is to be capitalized.(4) Furniture & library books are to be depreciated @ 6% & 10% respectively.
Q.27 following is the Receipts & Payment A/c of the leo Club for the year ended 31st dec 2002 Receipts Rs Payment RsTo opening balance 8,400 By rent & taxes 28,000To donations 28,000 By salaries :To subscription: -2001 5,600-2001 4,200 -2002 16,800-2002 79,800 By sports material 25,200-2003 5,600 By interest (6%
loan )21,000
To interest on investment
5,600 By tournament exp. 11,200
To entrance fees 9,600 By books & periodical
2,800
By closing balance ?1,41,200 1,41,200
Adjustments1) Outstanding subscription & entrance fees for the year Rs. 5,600 & Rs 2,800 resp. 2) A special donation for tournament fund Rs 14,000 is included in donations 3) Outstanding exp. : rent Rs 2,800 , salaries Rs5,600, Repairs Rs 1,400 4) The ledger A/c disclosed following balances on 1-1-02 : Building Rs. 56,000, Sports
material Rs 28,000, Furniture Rs 28,000 , tournament fund Rs 42,000,tournament funds investment Rs42,000
5) Sports material were valued at Rs 35,000 on 31-12-04 Prepare income & expenditure A/c for the year ended 31-12-02 & a B/S as on that date Q28.From the following Receipts & Payment A/c of a Kalyan Cricket club & the additional
information, prepare Income & Exp. A/c for the year ended 31st December,2000 & a balance sheet as on that date
Receipts Rs Payment RsTo balance : By crockery purchased 265-cash 352 By maintenance 682-bank 2,738 By match Exp. 1,324-fixed deposit @ 10 % 3,000 By salaries 1,100To membership subscription (including Rs. 600 for 1999)
4,000 By conveyance 82
To entrance fees 275 By upkeep of lawn 424To donation 501 By postage stamps 105To int. on F.D 150 By purchase of cricket goods 972To tournament fund 2,000 By sundry Exp. 200To sale of crockery (B.B Rs.120 ) 200 By investments 570
By tournament Exp. 1,880By balance :-cash 280-bank 2,332
-F.D 3,00013,216 13,216
Information :-(1)Monthly salary is Rs.100.(2)The value of unused postage stamps is as follows:- 31-12-2000 Rs.90 & 31-12-1999 is
RS.75.(3)Stock of Cricket Equipment is as follows:- 31-12-1999 is RS.321 & 31-12-2000 is
RS.280(4)Arrears of membership subscription :-Year 1999 RS.600 & year 2000 RS.800(5)Donation & entrance fees are not to be capitalized .
Q.29 Following is the Yuvraj’s library’s cash A/c for the year ending 31-12-2004.Receipts Rs. Payments Rs.To balance B/d 9,000 By Salaries & wages 13,800To Admission fees 8,000 By Books 17,500To Subscription 40,000 By Electric charges 1,500To Lecture hall hire charges
6,000 By O/s expenses 1,400
To Miscellaneous receipts
600 By Rent 17,500
To Int.on Invest. 1,000 By 5% investment (purchased on1-7-2004)
20,000
To Donations 10,000 By Stationery 2,500To Book fair profit 12,000 By Balance C/d 12,400
86,600 86,600You are required to prepare Income& Expenditure A/c for the year ended 31-12-2004 &
Balance sheet as on that date. The following further information are also made available to you:-(a)ON 31-12-2003 the library had the following assets also:- Furniture Rs.11,000, Books
valued at RS.1,00,000& Investments at accost of RS.30,000 carrying interest at 5% p.a.(b)Subscription realized in advance this year amounted to RS.5,000 an outstanding
liabilities on 31-12-04,for salaries & wages RS.1,200 & for rent Rs.1,500(c )60% of the admission fees should be capitalized.(d)Furniture & library books are to be depreciated at 6% & 10% p.a. respectively.
Q.30 Following is the receipts & payments A/c of Rajkumar Dispensary for the year ended on 31-12-2003 :-Receipts Rs. Payments Rs.To Balance b/d 6,000 By Purchase of
medicines60,000
To Subscriptions 1,00,000
By Printing & Stationery
3,000
To Entrance fees 18,000 By Furniture purchased 10,000To Interest received on invest. 14,000 To Honourium to
Doctor20,000
To Charity show realization 30,000 By Salaries 45,000To collection from patients on issue of case papers
12,000 By Miscellaneous exp. 1,000
By Equipments 30,000By charity show expenses
2,000
By Telephone exp. 5,000By Balance c/d 4,000
1,80,000
1,80,000
Other transactions :- 1-1-2003 31-12-2003 (a)Subscription due 1,000 5,000
(b)Subscription received in advance 2,000 2,500(c )Stock of medicines 20,000 30,000(d)Value of equipment (WDV) 42,000 60,000(e)Building (wdv) 80,000 76,000(f)Telephone exp. Outstanding - 1,000 (g)Misc. Expenses o/s 500 2,200(h)O/s printing & stationery 300 200(i)Medicine bills O/s 16,000 24,000Adjustments :-
(1) 50% of entrance fees are to be capitalized.(2) Interest @ 14% p.a. is received on investment which have been remained unchanged(3) Provide10% depreciation on furniture purchased during the year.
You are required to prepare Income & Expenditure A/c For the year ended 31-12-2003 & Balance sheet as at that date.
Q.31Fromthe following Income & Expenditure A/c of the Club in respect of the year ended 31-3-2004 & Balance sheet as on that date. You are required to prepare Receipts & payments A/c for the year ending 31st march, 2004 :Expenditure Rs. Income Rs.To Salaries 4,160 By subscription 4,500To stationery 720 By Profit on sports
meeting3,100
To rates 1,200 By Dividend received 2,000To Telephone 270To Sundry exp. 1,710To depreciation on building 1,000To excess of income over expenditure
540
9,600 9,600 Balance sheet as on 31-3-2004
Liabilities Rs. Assets Rs.Capital fund : 62,400 Building on1-4-03
20,000Add:- Income 540 62,940 Less: depreciation
1,00019,000
Subscription received in advance
160 Investment on 1-4-03 40,000
Telephone accrued 70 Add: During the year 2,500
42,500
Stock of stationery 180Rates prepaid 300Subscription O/s 290Cash at bank & in hand 900
63,170 63,170You are informed that :(1)Subscription of Rs.90 was in arrears on 1-4-2003 (2)ON1-4-2003 stock of stationery was worth RS.100.(3)On 1-4-03 expenses O/s were RS.140(4)On 1-4-2003 rates prepaid were RS.300.
Q.32 From the following income & Expenditure A/c & B/S of a club. prepare its Receipts & Payments A/c & Subscription A/c for the year ended 31.3.2004.
Income & Expenditure A/c for the year ended 31.3.2004Dr. Cr.
Expenditure Rs. Income Rs.To up keep of ground
10,000 By subscriptions 17,320
To printing 1,000 By sale of news papers (old) 260To salaries 11,000 Bt lectures 1,500To dep. On furniture 1,000 By entrance fees 1,300To rent 600 By Misc. income 400
By deficit 2,82023,600 23,600
Balance Sheet as at 31.3.2004Liabilities Rs. Assets Rs.Subscription in advance 100 Furniture 9,000(2004-05) Price fund : Ground & building 47,000Op. bal 25,000 Prize fund
investment20,000
Add : interest 1,000 Cash in hand 2,300 26,000 Subscriptions (2003-
04)700
Less : prizes 2,000 24,000General fund :Op. bal 56,420Less : deficit 2,820 53,600Add : entrance fees 1,300 54,900
79,000 79,000Adjustments :
1) Upkeep of ground Rs. 600 & printing Rs.240 relating to 2002-03 were p[aid in 2003-04.2) One half of entrance fees has been capitalized by transfer to general fund.3) Subscriptions O/s. in 2002-03 was Rs. 800 & for 2003-04 Rs. 700.4) Subscription received in advance in 2002-03 was Rs. 200 & in 2004-05 Rs. 100
Q33 following is the income & Expenditure A/c of united club for the year ended on 31-30-04:
Dr. Income & Expenditure A/c for the year ended on 31-30-04: cr. Particulars Rs. Particulars Rs.To salaries 15,750 By Subscription 45,000To stationary 1250 By donation 7,500To postage 800 By sale of furniture
(profit)1,000
To sundry exp. 4700 By govt. grant 4,000To repairs and maintenance 3600 By interest on F.D 800To sports Exp. 1800 By interest on fixed
depositTo swimming pool Exp. & maintenance
2000
To affiliation fee 500To electricity 3250To billiard room Exp. 1250To periodicals 1200To audit fees 250To depreciation :-sports equipment 1000-building 2500-furniture 450To surplus-being excess of incomeover expenditure
18000
58,300 58,300The above A/c is prepared after considering the information mentioned below:
Particulars As on
1-4-03Rs
31-3-04Rs
1)Building 1,00,000 97,5002)Sports Ground 1,00,000 1,00,0003) Sports Equipment 6,000 90004)Furniture 5,000 -5) F.D. In Banks 8,000 80006)Bank A/C –Savings Deposit - 5250007) Subscriptions Outstanding 5,000 20008) Subscriptions Received In Advance 3,000 10009)Stock Of Stationary 250 50010)Audit Fees Outstanding 200 25011)Salaries Outstanding 500 100012)Affiliation Fee Paid In Advance - 250
Cash on hand on 1-4-03 was Rs 1,250. New furniture of Rs. 9000 has been purchased on credit but not entered in books. Depreciation has been charged on this furniture at 5%
You are required to prepare :1) Receipts & payment A/c for the year ended 31.3.20042) B/s as on31.3.2004
Q.34 following is the income & Expenditure A/c of Tendulkar hospital :Dr. Cr.
Expenditure Rs. Income Rs.To salaries 23,500 By subscriptions 25,000To surgery & dispensary
3,000 By interest 9,000
To rent & taxes 500 By donation 4,000To insurance 200 By Misc. receipts 300To office exp. 800To dep. On :Building 3750Furniture 120Instruments 100
3970
To surplus 633038,300 38,300
Additional information Particulars 31-3-01
Rs.31-3-02Rs.
Cash in hand ? 18,700Govt. securities (F.V. Rs 2,00,000) 1,80,000 1,80,000Outstanding subscription 7,000 10,000Subscription received in adv. 500 600Outstanding salaries 1000 1500Furniture 2000 1980Land & building 2,00,000 1,96,250Instruments 3,500 3,900Outstanding surgery exp. 200 300Stock of medicines 300 100
Prepare a receipt & payment A/c for the year 2001-02 & B/s as on 31-3-02
