- The balance sheet of Son 1st April, 2021 was as follows:
Particulars Amount (Rs). Particulars Amount (Rs.) Trade Payables 6,50,000 Furniture and Fixtures 6,50,000 Expenses Payable 75,000 Vehicle 2,75,000 Capital 22,00,000 Trade Receivable 11,00,000 Cash at Bank 4, 75,000 Inventories 4,25,000 29,25,000 29,25,000 During 2021-22, his profit and Loss Account revealed a net profit of Rs. 6,70,000. This was after allowing for the following :
(i) Commission paid to selling agent Rs. 65,000
(ii) Discount received from creditors Rs. 75;000
(iii) Purchased a vehicle of Rs. 50,000 on 31st March, 2022
(iv) Depreciation on Furniture and Fixtures@ 10% and on Vehicle@ 20%
(v) A provision for doubtful debts@ 3% of the trade receivables as at 31st March, 2022
But while preparing the Profit and Loss Account he had forgotten to provide for
(1) prepaid expenses Rs. 15,000 and
(2) outstanding commission Rs. 35,000.His current assets and liabilities on 31st March, 2022 were: Inventories Rs.6,50,000. Trade Receivables Rs.13,00,000 (before provision for doubtful debts), cash at Bank Rs.5,50,000 and Trade Payable Rs.1,46,000.
During the year he introduced further capital of Rs.3,00,000 into the business. You are required to prepare the balance sheet as at March 31, 2022.
[2022 December 10 Marks]
- The following is the trial balance of Mr. B for the year ended 31st March, 2021:
Particulars Dr. Particulars Cr. Opening Stock: Sundry Creditors 1,75,000 Raw Material 5,25,000 Purchase Return 17,500 Finished Goods 2,62,500 Capital 3,50,000 Purchase of Raw Material 17,50,000 Bills Payable 84,000 Land & Building 3,50,000 Long Term Loan 7,00,000 Loose Tools 1,05,000 Provision for bad and doubtful debts 7,000 Plant and Machinery 1,05,000 Sales 29,75,000 Investments 87,500 Bank Overdraft 80,500 Cash in Hand 70,000 Cash at Bank 17,500 Furniture and Fixtures 52,500 Bills Receivables 52,500 Sundry Debtors 1,40,000 Drawings 70,000 Salaries 70,000 Coal and Fuel 52,500 Factory rent and rates 70,000 General Expenses 14,000 Advertisement 17,500 Sales Return 35,000 Bad Debts 14,000 Direct Wages (Factory) 2,80,000 Power 1,05,000 Interest paid 24,500 Discount allowed 10,500 Carriage inwards 52,500 Carriage outwards 24,500 Commission paid 17,500 Dividend paid 14,000 43,89,000 43,89,000 Additional Information:
(i) Stock of finished goods at the end of the year was Rs.3,50,000.
(ii) A provision for doubtful debts is to be created@ 5% on Sundry Debtors. Provide Depreciation on building 3,500 and Machinery 10,500.
(iii) Accrued commission is Rs.43,750. Interest has accrued on investment 52,500.
(iv) Salary Outstanding is Rs.7,000 and Prepaid Interest is Rs. 5,250.
You are required to prepare Manufacturing, Trading and Profit & loss account for the year ended 31•t March, 2021 and Balance Sheet as at that date.[2022 December 10 Marks]
- On 31st March, 2021 the Trial Balance of Mr: Black was as follows:
Particulars Debit Particulars Credit (Rs.) Stock on 1/4/2020 : Sundry Creditors 1,50,000 Raw Materials 2,10,000 Bills Payables 75,000 Work-in-Progress 95,000 Sale of scrap 25,000 Finished Goods 1,55,000 Commission received 4,500 Sundry Debtors 2,40,000 Provision for doubtful debts 16,500 Carriage on Purchase 15,000 Capital account 10,00,000 Bills Receivables 1,50,000 Sales 16,72,000 Wages 1,30,000 Bank Overdraft 85,000 Salaries 1,00,000 Telephone and Postage 10,000 Repairs to office furniture 3,500 Cash ·at Bank 1,70,000 Office Furniture 1,00,000 Repairs to Plant 11,000 Purchases 8,50,000 Plant and Machinery 7,00,000 Rent 60,000 Lighting 13,500 General Expenses 15,000 30,28,000 30,28,000 The following additional information is available: Stocks on 31st March, 2021 were:
Raw materials 1,62,000
Finished goods 1,81,000
Work-in-progress 78,000
Salaries and wages unpaid for the year ended 31st March, 2021 were respectively, 9,000 and 20,000. Machinery is to be depreciated by 10% and office furniture by 7.5%. A provision for doubtful debts is to be maintained @ 1% of sales. Rent is to be charged as to 3/4 to factory and 1/4 to office. Lighting is to be charged as to 2/3 to factory and 1/3 to office.Prepare the Manufacturing Account, Trading Account and Profit and Loss Account for the year ended on 31st March, 2021.
[2021 December 15 Marks]
- Karuna decided to start business of fashion garments under the name of M/s. Designer Wear on pt April, 2020. She had a saving of about Rs.10,00,000. She invested 3,00,000 out. of her sa ings and borrowed equal amount from Bank. She purchased a commercial space for 5,00,000 and further spent 1,00,000 on its renovation to make it
ready for busine s.Loan and interest repaid by her in the first year are as follows: 30th June, 2020 15,000 principal+ 9,000 interest
30th September, 2020 – f 15,000 principal+ 8,550 interest•..• 31st December, 2020
31st March, 202115,000 principal+. 8,100 interest
” f 15,000 principal+ 7,650 interest.
In view of further capital requirement, .she transferred 2,00,000 from her saving bank account to the bank account of the business. She paid security deposit of 7,000 for telephone .connection. Furniture of 10,000 was purchas.ed. All payments were made by cheque and all
receipts in cash were deposited in the bank.At the end of the year, her business showed the following results:
Particulars Amount Particulars Amount Total Sales 20,00,000 Total Purchase 17,00,000 Electricity Expenses paid 40,000 Telephone Charges 50,000 Cartage Outwards 60,000 Travelling Expenses 45,000 Entertainment Expenses 5,000 Maintenance Expenses 25,000 Misc. Expenses 15,000 Electricity Expenses 20,000 Payable