[Accountancy Solved Question Papers, AHSEC, Class 11, 2016]
ACCOUNTANCY SOLVED QUESTION PAPERS
AHSEC CLASS 11 ACCOUNTANCY' 2016
ACCOUNTANCY
Full Marks: 100
Time: 3 hours
REPEATED IN 2018 EXAM
The figures in the margin indicate full marks for the questions.
1. (a) Fill in the blanks: 1x4=4
i. Every business transaction has Two (Dual) aspects.
ii. Trial Balance is a Proof only of the Arithmetical accuracy of the accounts.
iii. Single Entry System is an Incomplete and Unscientific system.
iv. The full form of CPU is Central Processing Unit.
(b) State whether the following are true or false: 1x2=2
i. Accounting is both a science and an art. True
ii. Accountants regard a business separate from its proprietors. False
(c) Rewrite the sentences with appropriate alternatives: 1x2=2
i. Credit note is prepared by Debtor(Purchaser) / Creditor (Seller).
ii. Computerized Accounting System is a system of maintaining records of financial / non-financial transactions in electronic form.
2. What do you understand by the terms “Debit” and “Credit”? 2
Ans: An account is divided into two parts. The left hand side of an account is called “debit” and the right hand side of the account is called “credit”. Debit is abbreviated as “Dr.” and credit as “Cr.” in accounting.
3. What is a Trial Balance? 2
Ans: After posting the accounts in the Ledger, a statement is prepared to show separately the debit and credit balances and to check the arithmetic accuracy of the accounts of a certain periods such a statement is known as the Trial Balance.
4. Mention the various kinds of Reserve. 2
Ans: Examples of reserves are: General reserve; Workmen compensation fund; Investment fluctuation fund; Capital reserve; Dividend equalization reserve; Reserve for redemption of debenture.
5. State the two points of difference between “Bill of Exchange” and “Promissory Note”. 2
Ans: Difference between bill of exchange and Promissory Note
Basis
|
Bill of Exchange
|
Promissory Note
|
Drawer
|
It is drawn by the creditor
|
It is drawn by the debtor
|
Order or Promise
|
It contains an order to make payment. There can be three parties to it, viz. the drawer, the Drawee and the payee.
|
It contains a promise to make payment. There are only two parties to it, viz. the drawer and the payee.
|
Acceptance
|
It requires acceptance by the Drawee or someone else on his behalf.
|
It does not require any acceptance.
|
Payee
|
Drawer and payee can be the same party
|
Drawer cannot be the payee of it
|
Set
|
A bill of exchange can be drawn in sets.
|
Promissory note cannot be drawn in sets.
|
6. Mention two distinctions between Book Keeping and Accounting. 2
Ans: Difference Between book keeping and accountancy
Basis of Difference
|
Book – Keeping
|
Accountancy
|
a) Functions
|
Its function is to record business transaction.
|
The function of accounting is the recording, classifying, summarizing, interpreting business transaction and communicating result.
|
b) Transactions
|
Recording of transactions in books of original entry.
|
To examine these recorded transactions in order to find out their accuracy.
|
c) Posting
|
To make posting in ledger.
|
To examine this posting in order to ascertain its accuracy.
|
d) Income Statement and Balance Sheet
|
Preparation of trading, Profit & loss account and balance sheet is not book keeping.
|
Preparation of trading, profits and loss account and balance sheet is included in it.
|
e) Special skill and knowledge
|
It does not require special skill and knowledge.
|
It requires special skill and knowledge.
|
7. Write three characteristics of a cheque. 1x3=3
Ans: Features of cheque
a) A cheque is always drawn on a bank or banker.
b) A cheque does not require any acceptance.
c) A cheque is payable immediately on demand without any days of grace.
Or
Mention three advantages of Bank Reconciliation Statement. 1x3=3
Ans: Utility of B.R.S
a) It gives an authentic proof of the accuracy of the cash and pass book balances.
b) Entries in both the book are automatically checked.
c) The cash book may be made up- to-date by recording some hitherto unknown entries.
d) It helps to detect any mistake in the cash book and pass book
8. State three objectives of providing depreciation. 1x3=3
Ans: Objectives or causes for providing depreciation
a) To find out correct cost of goods manufactured.
b) To find out correct profit for the year.
c) To provide for replacement of assets.
d) To find out correct financial position.
e) To reduce tax burden.
Or
What do you mean by Bad debt and Doubtful Debt? 1 ½ x2=3
Ans: A bad debt is an account receivable that has been clearly identified as not being collectible.
A doubtful debt is an account receivable that might become a bad debt at some point in the future.
9. State three reasons of dishonour of a bill. 1x3=3
*****************************
Also Read:
*****************************
Ans: (a) Insufficient balance, (b) Fraudulent signature and (c) Amount in words and number do not match.
Or
State three differences between Trade Bill and Accommodation Bill. 1x3=3
Ans: Difference between Trade Bill and Accommodation Bill
Basis
|
Trade Bill
|
Accommodation Bill
|
Purpose
|
There are drawn for trade purposes.
|
These are drawn and accepted for financial assistance.
|
Consideration
|
These are drawn against proper consideration.
|
These are drawn in the absence of any consideration.
|
Proof
|
These bills are proof of debt.
|
These bills are not a proof of debt.
|
Legal action
|
For obtaining the debt from Drawee, Drawee can resort to legal action.
|
Legal action cannot be resorted the recovery of amount against these bills by the immediate parties.
|
10. What are the various kinds of Single Entry System? 3
Ans: Types of Single Entry System
a) Pure Single Entry System:-Under this type of Single entry, the dual aspect of each transaction is ignored. Only personal account of debtors and creditors are kept but no record is kept for Real or Nominal Account.
b) Simple Single Entry System:-Under this system, (i) Personal Account and (ii) Cash book are kept.
c) Quasi Single Entry System:-Under this System, (i) Personal Account, (ii) Cash book and (iii) Some other subsidiary books are kept.
Or
“Though Single Entry System is full of defects, yet it is still seen in Practice”. Explain in brief. 3
Ans: Single Entry System is suffered from various limitations but it is still in use because of the following merits:
a. It is an easy and simple method of maintaining books of accounts.
b. It is conventional and economical.
c. It is less time consuming.
11. Discuss the Data Processing Cycle. 3
Ans: Data-processing cycle refers to the process of transforming raw data into useful information. The cycle entails a process of sequential steps, including input, processing, output and interpretation.
Or
Mention three Distinctions between information and data. 1x3=3
Ans: Differences between data and information:
a) Data is used as input for the computer system. Information is the output of data.
b) Data is unprocessed facts figures. Information is processed data.
c) Data doesn’t depend on Information. Information depends on data.
d) Data is not specific. Information is specific.
12. What is “Generally Accepted Accounting Principle”? Explain “recognize all losses anticipate no gain”. 2+3
Ans: Generally Accepted Accounting Principles are the rules and concepts which have been accepted by accounting community for sound accounting practice. Their usefulness depends on ‘general acceptability’ rather than ‘individual acceptability’ of accounting concepts. They (GAAP) have been formalised on the basis of usage, reason and experience.
Convention of Conservatism or Prudence: This convention follows the policy of caution or playing safe. It takes into account” all possible losses but not the possible profits or gains”. The implication of this principle is to give a pessimistic view of the financial position of the business.
Or
Explain Business Entity Assumption and its utility. 2+3=5
Ans: Business entity concept implies that the business unit is separate and distinct from the persons who provide the required capital to it. This concept can be expressed through an accounting equation, viz., Assets = Liabilities + Capital. The equation clearly shows that the business itself owns the assets and in turn owes to various claimants.
13. Mention two errors of omission and three errors of commission. 2+3=5
Ans: Errors of omission: Purchase of goods not recorded in books, Sales to Ram omitted to be posted in Ram’s A/c.
Errors of commission: Cash Sales to Ram of Rs. 545 was posted to Ram’s A/c as Rs. 455, Purchases book overcast by Rs.50, Sales to Shyam posted on the credit side of Shyam’s A/c.
Or
Give Journal entries to rectify the following errors: (Any two) 2 ½ x2=5
a) Cash Sales to Ram of Rs. 545 was recorded as Rs. 455.
b) Purchase of machinery for Rs. 6,000 was entered in the purchase account.
c) Rs. 2,000 paid as rent to Rahim, a landlord, was debited to Rahim account.
d) Rs. 500 received by sale of an old machine has been treated as cash sale.
Journal Entries
Date
|
Particulars
|
L/F
|
Amt. (dr.)
|
Amt. (cr.)
|
(i)
|
Cash A/c Dr.
To Sales A/c
(Being the Cash sales to Ram Rs. 545 was recorded as Rs. 455, was rectified)
|
90
|
90
| |
(ii)
|
Machinery a/c Dr.
To Purchases A/c
(Being the purchases of machinery recorded in purchases account, now rectified)
|
6,000
|
6,000
| |
(iii)
|
Rent A/c Dr.
To Rahim
(Being the rent paid to Rahim debited to his personal A/c, now rectified)
|
2,000
|
2,000
| |
(iv)
|
Sales A/c Dr.
To Machinery A/c
(Being the sales of old machinery treated as cash sales, now rectified)
|
500
|
500
|
14. A firm purchases a Plant for a sum Rs. 1,00,000 on 1st April, 2010. Installation charges are Rs. 2,000. The plant is estimated to have a scrap value of Rs. 10,000 at the end of its useful life of five years. You are required to prepare Plant Account for the first two years charging depreciation according to Straight Line method. Accounting year ends on 31st March. 5
Machinery A/c
Date
|
Particulars
|
Amount
|
Date
|
Particulars
|
Amount
|
1-4-10
|
To Bank A/c
|
1,02,000
|
31-3-11
31-3-11
|
By Depreciation a/c
By Balance c/d
|
18,400
83,600
|
1,02,000
|
1,02,000
| ||||
1-4-11
|
To Balance b/d
|
83,600
|
31-3-12
31-3-12
|
By Depreciation A/c
By Balance c/d
|
18,400
65,200
|
83,600
|
83,600
|
Or
Following is the extract of the Trial Balance of Guwahati Stores as on 31st March, 2015:
Trial Balance as on 31st March, 2015
| ||
Debit (Rs.)
|
Credit (Rs.)
| |
Sundry Debtors
Bad Debts
|
80,600
800
| |
Write off further Bad Debts Rs. 600 and create a provision for Doubtful Debts @ 5% on Sundry Debtors. Pass journal entries. The financial year ends on 31st March every year.
Journal Entries
Date
|
Particulars
|
L/F
|
Amt. (dr.)
|
Amt. (cr.)
|
Bad debts A/c Dr.
To Sundry Debtors A/c
(Being the further bad debts written off.)
|
600
|
600
| ||
Provision for bad debts A/c Dr.
To Bad debts A/c
(Being the total bad debt transferred to provision for bad debt A/c)
|
1,400
|
1,400
| ||
P/L A/c Dr.
To Provision for bad debt A/c
(Being the provision for bad debt transferred to P/L A/c [1,400 + 4,000]
|
5,400
|
5,400
|
15. Arun drew a bill for Rs. 2,000 on Barun on 15th March, 2015 for three months. Barun duly accepted the bill and returned it to Arun.
Arun discounted the bill with his banker at 10% p.a. Pass Journal entries in the books of Arun, if
a) The bill is honoured on due date; and
b) The bill is dishonoured on due date and noting charges of Rs. 40 paid by bank. 5
Journal Entries
In the books of Arun
Date
|
Particulars
|
L/F
|
Amt. (dr.)
|
Amt. (cr.)
|
15-3-15
|
Bills Receivable A/c Dr.
To Barun A/c
(Being the bills receivable received from Barun)
|
2,000
|
2,000
| |
15-3-15
|
Bank A/c Dr.
Discount A/c Dr.
To Bills Receivable A/c
(Being the bills receivable discounted @ 10% p.a.)
|
1,950
50
|
2,000
| |
(a)
|
If the bills received honoured on due date,
No entry required
| |||
(b)
|
Barun A/c Dr.
To Bank A/c
(Being the bills receivable dishonoured on due date and noting charges paid)
|
2,040
|
2,040
|
Or
Define a bill of exchange. State its four features. 1+4=5
Ans: Bills of Exchange: A bill of exchange as, "an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a sum of money only to or to the order of a certain person or to the bearer of the instrument." A bill of exchange is also called a draft.
Features of bills of exchange:
a) A bill of exchange must be in writing.
b) It is an order to make payment.
c) The order to make payment is unconditional.
d) The maker of the bill of exchange must sign it.
e) The payment to be made must be certain.
16. Give five points of difference between a Trading Account and Profit and Loss Account. 1x5=5
Ans: Difference between Trading and Profit and loss Account
Trading Account
|
Profit and Loss Account
|
1. Trading Account is the first part of Trading and Profit & Loss Account.
2. Trading Account is prepared to calculate gross profit of the business enterprise.
3. In the Trading Account, items related to direct expenses and direct incomes are recorded.
4. The balance of Trading Account viz. gross profit or gross loss is to be transferred to the Profit & Loss Account.
|
1. Profit & Loss Account is the second part of the Trading and Profit & Loss Account.
2. Profit & Loss Account is prepared to calculate the net profit of the business enterprise.
3. In the Profit & Loss Account, items related to indirect expenses and indirect incomes are recorded.
4. The balance of Profit & Loss Account viz., net profit or net loss is to be transferred to the Balance Sheet by way of adjustments in the capital of the proprietor.
|
Or
What do you mean by Financial Statements? State their three uses. 2+3=5
Ans: The financial statement provide a summary of the accounts of a business enterprise. Financial statement include two statements include two statements:
a) Trading and Profit and Loss Account‟ or Income Statement‟ (To Know Profit or loss)
b) Balance Sheet (To know value of assets and liabilities on the closing date of an accounting period)
Objectives and Uses of Financial Statements
a) To provide information about economic resources and obligations of a business.
b) To provide information about earning capacity of the business.
c) To provide information about cash Flows.
d) To judge effectiveness of management.
17. Mr. Bora started business on 1st April 2014. The following are his trading transaction during the year ended 31st March, 2015. Prepare trading account:
Purchases
Carriage Inward
Carriage Outward
Return Outward
Sales
Return Inward
Royalty
Clearing charges
Octroi duty
Closing stock
|
Rs.
20,000
1,000
600
500
30,000
800
200
300
500
2,000
|
Trading Account of Mr. Bora
For the year ended on 31st March, 2015
Particulars
|
Amount
|
Particulars
|
Amount
|
To Purchases 20,000
Less: 500
To Carriage Inward
To Royalty
To Clearing Charge
To Octroi Duty
To Gross Profit
|
19,500
1,000
200
300
500
10,700
|
By Sales 30,000
Less: Return 800
By Closing Stock
|
29,200
2,000
|
31,200
|
31,200
|
18. “Computerized Accounting systems are the best form of accounting system.” Do you agree? Comment. 5
Ans: Computerized accounting system are the best because of the following uses:
1. Better Quality Work: The accounts prepared with the use of computers are usually uniform, neat, accurate, and more legible than manual job.
2. Lower Operating Costs: Computer is a labour and time saving devise.
3. Improved Efficiency: Computer brings speed and accuracy in preparing the records and accounts and thus, increases the efficiency of employees.
4. Greater Accuracy: Computerized accounting ensures accuracy in accounting records and statements. It prevents clerical errors and omissions.
5. Minimizing Mathematical Errors.
Or
What is Management Information System? State its three utilities. 2+3=5
Ans: Management Information system can defined as the system that gathers data describing the firm’s activities, transforms the data into information and makes the information available to the management.
Functions of Management Information System
1) Data Gathering: The data processing system gathers data that describe the various transactions that had taken place whether internally or externally.
2) Data Manipulation: Data manipulation operations include classification of entries, sorting of accounts and calculation like totaling of different ledger accounts.
3) Data Storage: For the purpose of future security and control the data is stored on storage media like magnetic tapes, floppies, etc.
4) Document Preparation: AIS produce outputs for individuals and organisations both inside and outside the firm.
19. Prepare Petty Cash book from the following transactions under imprest system.
Jan 1. 2015
Jan 3. 2015
Jan 4. 2015
Jan 5. 2015
Jan 6. 2015
Jan 6. 2015
Jan 6. 2015
Jan 6. 2015
|
Received from head Cashier
Paid rickshaw charge
Paid for Stationery
Paid for Cartage
Paid for bus fare
Paid for Postage
Paid for repairing of Typewriter
Paid for Telephone bill
|
Rs. 300.00
Rs. 32.00
Rs. 25.00
Rs. 62.00
Rs. 18.00
Rs. 15.00
Rs. 70.00
Rs. 20.00
|
Analytical Petty Cash Book
Receipts
|
Date
|
Particulars
|
L/F
|
Payment
|
Carriage
And
Cartage
|
Printing
And
Stationery
|
Travelling
expenses
|
Postage
And
Telegram
|
Repairing
|
Telephone
Bill
|
300
|
1
3
4
5
6
6
6
6
|
To Cash A/c
To Rickshaw
To Stationery
To Cartage
To Bus Fare
To Postage
To Repairing
To Telephone bill
|
32
25
62
18
15
70
20
|
32
62
|
25
|
18
|
15
|
70
|
20
| |
6
|
By balance c/d
|
272
58
|
94
|
25
|
18
|
15
|
70
|
20
| ||
300
|
300
| |||||||||
58
272
|
To balance b/d
To Cash A/c
|
Or
Is Cash Book a Journal or a Ledger? Give ruling of a Triple Column Cash Book and show therein five imaginary entries. 3+5=8
Ans: Cash Book is both journal and a ledger.
Cash Book is a journal in the sense that all the transactions relating to receipt or payment of cash are recorded only in Cash Book and not in the journal. Cash Book is a ledger also because there is no need to open a separate account in the ledger. In case of Cash Book, only one posting is required unlike in journal where two postings are required. Cash Book is ruled like a ledger account.
Three-column Cash Book: Three-column Cash Book is prepared when there are a large number of cash and banking transactions. This Cash Book has three amount columns on each side namely cash column, bank column and discount column.
Prepare a Triple Column Cash Book from the following information
2014
|
Particulars
|
Rs.
|
October 1
|
Cash in hand
Cash at bank
|
6,000
38,000
|
October 4
|
Cash Sales
|
25,000
|
October 7
|
Deposited into Bank
|
15,000
|
October 9
|
Received cheque from Mr. Baruah which is deposited into bank on the same day
|
8,000
|
October 10
|
Rent paid by cheque
|
3,000
|
October 18
|
Paid be cheque to Mr. Kishore Rs. 6,700 in full settlement of his debt
|
7,000
|
October 23
|
Withdraw from bank for office use
|
3,000
|
October 25
|
Withdraw from bank for personal use
|
2,000
|
October 30
|
Salaries paid
|
6,000
|
Triple Column Cash Book
Date
|
Particulars
|
Cash
|
Bank
|
Dis.
|
Date
|
Particulars
|
Cash
|
Bank
|
Discount
| ||
Oct. 1
4
7
9
23
|
To Balance b/d
To Sales A/c
To Cash A/c
To Mr. Barua
To Bank A/c
|
(c)
(c)
|
6,000
25,000
3,000
|
38,000
15,000
8,000
|
7
10
18
23
25
30
31
|
By Bank A/c
By Rent A/c
By Mr. Kishore
By Cash A/c
By Drawings
By Salaries
By balance c/d
|
(c)
(c)
|
15,000
6,000
13,000
|
3,000
6,700
3,000
2,000
46,300
|
300
| |
34,000
|
61,000
|
300
| |||||||||
To Balance b/d
|
13,000
|
46,300
|
20. Prepare a Bank Reconciliation Statement as on 31st March, 2015 from the following particulars. 8
a) Bank balance as per Cash Book Rs. 1,630.
b) Cheques issued but not presented for payment Rs. 4,050.
c) Cheques deposited but not entered in the Pass Book Rs. 4,000.
d) Bank debited Rs. 80 as bank charges.
e) Rs. 5,000 wrongly credited by bank in our Pass Book.
f) Bank interest credited by bank Rs. 250.
g) Bill Receivable Rs. 950 discounted but later dishonoured and no entry has been passed for this.
Ans:
Bank Reconciliation Statement
As on 31st March, 2015
Particulars
|
Amount
|
Amount
|
Balance as per C/B
Add:
a) Cheques issued but not presented for payment
b) Wrongly credited by bank in pass book
c) Bank Interest credited by bank
|
4,050
5,000
250
|
1,630
9,300
|
Less:
a) Cheques deposited but note entered in the pass book
b) Bank charges debited by bank
c) B/R discounted with bank but later dishonoured
|
4,000
80
950
|
10,930
5,030
|
Balance as per P/B
|
5,900
|
Or
Distinguish between Pass Book and Bank Reconciliation Statement. Discuss the procedures of preparing a Bank Reconciliation Statement. 4+4=8
Ans: Difference between Cash book and Pass Book
Cash Book
|
Pass Book
|
It is written by the depositor.
Money deposited is recorded on the debit side and money withdrawn on credit side.
A check deposited for collection is recorded on the date of deposit.
A check when issued to a creditor is recorded on the date of issue.
Its debit balance shows cash at bank and credit balance shows bank overdraft.
|
It is written by the bank but remains in the depositor’s possession.
Money deposited is entered on the credit side and withdrawn on the debit side.
It is recorded on the date when it is actually collected from the debtor’s bank.
It is recorded when it is paid by the bank to the creditor.
Its debit balance shows bank overdraft and credit balance shows cash at bank.
|
The following procedures are followed while preparing the bank reconciliation statement:
a) Compare cash book and pass book items.
b) Give sign to all the items of cash book and pass book which are matched with each other.
c) Make a list of unmatched items found in cash book and pass book.
d) Prepare bank reconciliation statement taking balance either from cash book or pass book as a basis.
e) Adjust the items which cause the disagreement in the balances. Add the items which have decreased the balance on the book with which reconciliation is to be made. On the contrary subtract the amount of those items which have increased the balance.
These procedures should be followed only when the cash book and pass book are to be compared. But if causes of differences are already given, the above procedures need not be followed. If the causes of disagreement between the cash book and pass book balances are given, the bank reconciliation statement can be prepared either by taking the balance of cash book or pass book. The bank reconciliation statement can be prepared by using either of the following bases.
a) Debit balance shown by cash book
b) Credit balance shown by cash book (bank overdraft)
c) Credit balance shown by pass book
d) Debit balance shown by pass book (bank overdraft)
21. From the following information, prepare necessary accounts to ascertain the amount of total sales. 8
Balance of Debtor on 1-1-2014
Balance of Bills Receivable 1-1-2014
Cash received from debtors during the year 2014
Cash received against Bills Receivable
Bad debts
Return Inward
Discount Allowed to Debtors
Balance of Debtors on 31.12.2014
Balance of Bill Receivable on 31.12.2014
Cash Sales during the year
|
1,20,000
30,000
3,00,000
80,000
10,000
30,000
3,000
1,00,000
24,000
1,30,000
|
Total Debtors A/c
Rs.
|
Rs.
| ||
To Opening balance
To Credit sales
|
1,20,000
3,97,000
|
By Cash
By Bad debts
By Return Inward
By Discount
By Bills Receivable
By Closing Balance
|
3,00,000
10,000
30,000
3,000
74,000
1,00,000
|
5,17,000
|
5,17,000
|
Bills Receivable A/c
Rs.
|
Rs.
| ||
To Opening balance
To Total Debtors A/c
|
30,000
74,000
|
By Cash
By Closing balance
|
80,000
24,000
|
1,04,000
|
1,04,000
|
Total Sales = Cash Sales + Credit Sales = 1,30,000 + 3,97,000 = 5,27,000
Net Sales = Total sales – Return = 5,27,000 – 30,000 = 4,97,000
Or
M/s Kalita commenced business on 1.4.2014 with Cash Rs. 20,000 and on that day he bought furniture for Rs. 4,000. He took a bank loan of Rs. 5,000 on 1.10.2014. During the year he introduced Rs. 3,000 as additional Capital but withdrew Rs. 500 per month for family expenses. 4+4=8
*****************************
Also Read:
*****************************
His other assets and liabilities as on 31-03-2015 were as follows:
Cash in hand
Stock
Debtors
Creditors
Outstanding bank interest loan
Furniture to be depreciated by 10% p.a.
|
1,000
20,000
10,000
5,000
200
|
You are required to prepare a Statement of Affairs as on 31.03.2015 and also a Statement of Profit and Loss of the business for the year ended 31.03.2015.
Statement of Affairs
As on 31-03-2015
Liabilities
|
Amount
|
Assets
|
Amount
|
Creditors
Loan 5,000
Add: Outstanding Int. 200
Closing Capital
|
5,000
5,200
24,400
|
Cash in hand
Stock
Debtors
Furniture 4,000
Less Depreciation @ 10% 400
|
1,000
20,000
10,000
3,600
|
34,600
|
34,600
|
Statement of Profit or Loss
For the year ended on 31-03-2015
Particulars
|
Amount
|
Amount
|
Closing Capital
Add: Drawings (500x12)
|
24,400
6,000
| |
Less: (i) Opening Capital
(ii) Additional Capital
|
20,000
3,000
|
30,400
23,000
|
Profit for the year
|
7,400
|
22. From the following Trial Balance of M/s Rita Misra. You are required to prepare Profit & Loss Account for the year ended 31st March, 2015 and a Balance Sheet as on that date.
TRIAL BALANCE
Debit Balance
|
Amount
|
Credit Balance
|
Amount
|
Rent
Discount
Cash in hand
Cash at Bank
Furniture
Sundry Debtors
Drawings
Building
Bad Debts
Closing Stock
Salaries
Bills Receivable
|
6,000
1,000
9,000
47,000
14,000
16,000
4,000
80,000
1,250
7,500
18,000
3,000
|
Capital
Sundry Creditors
Bank Loan
Commission
Trading A/c
(Gross Profit)
|
1,50,000
5,000
7,000
2,500
42,250
|
2,06,750
|
2,06,750
|
Adjustment:
a) Furniture is to be depreciated by 5% p.a.
b) Salaries Outstanding Rs. 2,000.
c) Rent includes Rs. 1,000 paid is advance.
d) Make Provision for Bad Debt Rs. 500.
Profit and Loss A/c
For the year ended on 31st – March, 2015
Particulars
|
Amount
|
Particulars
|
Amount
|
To Rent 6,000
Less: Adv. Rent 1,000
To Discount
To Depreciation on furniture
To Bad debts
To Salaries 18,000
Add: Outstanding 2,000
To Bad debts
To Net Profit
|
5,000
1,000
700
500
20,000
1,250
16,300
|
By Gross Profit
By Commission
|
42,250
2,500
|
44,750
|
44,750
|
Balance Sheet
As on 31st March, 2015
Liabilities
|
Amount
|
Assets
|
Amount
|
Capital 1,56,000
Add: Net Profit 16,300
1,72,300
Less: Drawings 4,000
Sundry Creditors
Bank Loan
Outstanding Salary
|
1,68,300
5,000
7,000
2,000
|
Adv. Rent
Cash in hand
Cash at bank
Furniture 14,000
Less: Depreciation 700
Sundry Debtors 16,000
Less: Bad debts 500
Bills Receivable
Building
Closing Stock
|
1,000
9,000
47,000
13,300
15,500
3,000
80,000
7,500
|
1,76,300
|
1,76,300
|