Professional Documents
Culture Documents
Question-1
Like
Share
Question-2
Question-3
Like
Share
NCERT Questions
relates partially to the next year. The income which has been received during
the current accounting year but relates to the next accounting year is called
Unearned Income or Income Received in Advance.
(d) Accrued income
accrued incomes are those incomes which have been earned during the
accounting period but have not been received till the end of the accounting
period. Such incomes are called Outstanding incomes or
Incomes earned but not yet received.
Comment
Like
Share
Question-4
The correct accounting is to make provision for such likely bad debts every
NCERT Questions
year.
Comment
Like
Share
Question-5
Share
Comment
NCERT Questions
Question-6
Debtors outstanding at the end of the year make payment in the next
year and they may be entitled to cash discount if they make the payment
by the due date. Because, the debt has arisen during the year, the
discount is to be taken as expense for the year. Thus, a provision for
discount on debtors is made.
Comment
Like
Share
Question-7
NCERT Questions
To purchases 7,000
Comment
Like
Share
Question-8
What are adjusting entries? Why are they necessary for preparing final
accounts?
Solution:
As we know, basic accounting records are on the basis of Going
Concern Assumption. But the Final Accounts are prepared every year
on the basis of Accounting Period Assumption, Revenue
NCERT Questions
Like
Share
Question-9
What is meant by provision for doubtful debts? How are the relevant
accounts prepared and what journal entries are recorded in final
accounts? How is the amount for provision for doubtful debts
calculated?
Solution:
We know that in accounting we follow the Convention of
Conservatism while recording business transactions. This means
that we make provisions for expected losses but we do not take credit
for expected profit. A firm, therefore, make provision at the ned of the
accounting year for likely bad debts in the next year. This is for the
simple reason that out of the credit sales made during the particular
year, some debts are likely to become bad in the next year due to non
payments. The correct accounting is to make provision for such
likely bad debts every year. The entry for creating a provision is:
Profit and loss A/c Dr.
To Provision for Doubtful Debts
The debit to the Profit and Loss Account will reduce the years
profit suitably for the possible loss and the amount will be carried
forward to the next year. Next year, when bad debts actually occur
and are written off, the Bad Debts accounts will be debited to the
Provision for Bad Debts Account; the amount of the bad debts will
not be debited to the Profit and Loss Account since a debit was
already given for it last year. It should be noted that the
customers account or sundry debtors account is not affected by
NCERT Questions
Like
Share
Question-10
Prepare a trading and profit and loss account for the year ending
December 31, 2005. from the balances extracted of M/s Rahul Sons.
Also prepare a balance sheet at the end of the year.
Account Title
Stock
Wages
Salary
Purchases
Sales return
Sundry Debtors
Discount allowed
Insurance
Amount
Rs.
50,000
3,000
8,000
1,75,000
3,000
82,000
1,000
3,200
4,300
20,000
1,500
2,000
32,000
1,600
Account Title
Sales
Purchases return
Discount received
Bills payable
Commission received
Rent
Loan
Amount
Rs.
1,80,000
2,000
500
2,500
3,00,000
22,000
4,000
6,000
35,000
Travelling expenses
NCERT Questions
4,200
Telegram expenses
200
Postage
Legal fees
Bills receivable
Building
Adjustments
300
500
50,000
1,10,000
5,51,800
5,51,800
31, 2005
Expenses / Losses
Opening Stock
Wages
Purchases 1,75,000
Less
Purchase return 2,000
Amount
(Rs.)
50,000
3,000
1,73,000
2,26,000
Revenues / Gain
Sales 1,80,000
Less
Sales return 3,000
Closing Stock
Gross loss
Cr.
Amount
(Rs.)
1,77,000
32,000
17,000
2,26,000
17,000
Less
Adv recd
1,000
Salary 8,000
Add
Outstanding sal 1,000
9,000
1,600
Trade expenses
1,500
Travelling expenses
Postage
Telegram expenses
Legal fees
4,200
4,550
4,300
Depreciation
6,600
Discount allowed
Net loss
500
43,189
500
Add
new provision 4,050
(5% on 81,000) 7,050
Less
Discount on debtors
Discount received
8,000
200
2,400
Provision for
bad debts 2,500
Rent received
6,000
Add
Accrued rent
2,000
3,000
300
Insurance 3,200
Less: Prepaid 800
Bad debts 2,000
Add
Provision 1,000
3,000
Commission recd
4,000
1,539
1,000
54,689
54,689
NCERT Questions
Liabilities
Capital
3,00,000
Less
Net Loss
43,189
Amount (Rs)
2,24,811
2,56,811
Less Drawings
32,000
Bills Payable
22,000
Loan
35,000
O/s Salary
1,000
Assets
Sundry Debtors
82,000
75,411
Fixtures and
fittings
20,000
Building
1,03,400
Bills receivable
1,10,000
Less depcn
6,600
Closing Stock
2,82,811
Amount (Rs)
Rent accrued
Comment
50,000
32,000
2,000
2,82,811
Like
Share
Question-11
Prepare a trading and profit and loss account of M/s Green Club Ltd.
for the year ending December 31, 2005. from the following figures
taken from his trial balance :
Account Title
Amount
Rs.
Account Title
Amount
Rs.
Opening stock
NCERT Questions
Purchases
Return inwards
Postage and
Telegram
Salary
Wages
Rent and Rates
Packing and
Transport
General expense
Insurance
35,000
Sales
25,000
Creditors
1,25,000
600
12,300
3,000
1,000
500
Cash at bank
40,000
Lighting and
Heating
Discount
Bad debts
Discount
10,000
20,000
1,000
4,500
Capital
75,000
Interest received
5,400
4,000
50,000
Machinery
Bills payable
6,000
400
Debtors
Cash in hand
Purchase return
2,50,000
20,000
20,000
5,000
3,500
3,500
23,100
3,71,900
3,71,900
Adjustments
1. Depreciation charged on machinery @ 5% p.a.
2. Further bad debts Rs.1,500, discount on debtors @ 5% and make a
provision on debtors @ 6%.
3. Wages prepaid Rs.1,000.
4. Interest on investment @ 5% p.a.
5. Closing stock 10,000.
Solution:
Trading and profit and Loss Account for the year ended December
31, 2005
Dr.
Cr.
Expenses / Losses
NCERT Questions
Amount
(Rs.)
Revenues / Gain
Purchases
1,25,000
Less P/R
6,000
1,19,000
Closing Stock
Gross profit
79,000
600
500
Interest on
investment
Opening stock
Wages
3,000
Less prepaid wages
1,000
Salary
35,000
2,35,000
12,300
400
Discount
3,500
1,000
7,425
Less
Prov for bad debts 4,500
2,925
Insurance
4,000
2,25,000
10,000
2,000
General expense
Depreciation
Sales 2,50,000
Less S/R 25,000
Amount
(Rs.)
1,000
2,35,000
Discount
Interest received
79,000
1,000
1,155
5,400
5,000
2,765
52,565
86,555
86,555
Creditors
Bills payable
Amount
(Rs)
1,27,565
10,000
20,000
Assets
Debtors 50,000
Less
Bad debts 1,500
48,500
Less
Prov for bad debts
2,425
46,075
Less
Prov for discount
On debtors 2,765
43,310
Cash at bank
40,000
Cash in hand
20,000
Machinery 20,000
Less
Depcn 1,000
19,000
Investment 23,100
Add
Interest on invt
24,255
Closing Stock
10,000
1,155
1,57,565
Comment
Amount
(Rs)
Prepaid wages
1,000
1,57,565
Like
Share
NCERT Questions
Question-12
The following balances has been extracted from the trial of M/s
Runway Shine Ltd. Prepare a trading and profit and loss account and a
balance sheet as on December 31, 2005.
Account Title
Purchases
Opening stock
Return inwards
Carriage inwards
Cash in hand
Cash at bank
Wages
Amount
Rs.
1,50,000
50,000
2,000
4,500
77,800
60,800
2,400
4,500
400
Bad debts
1,500
Investment
32,000
Bills receivable
20,000
Insurance
Debtors
Lighting Charges
Telephone charges
2,500
53,000
400
200
1,000
440
500
100
Account Title
Amount
Sales
2,50,000
Return outwards
Interest received
Discount received
Creditors
Bill payable
Capital
Rs.
4,500
3,500
400
1,25,000
6,040
1,00,000
Carriage outward
NCERT Questions
400
25,000
4,89,440
4,89,440
Adjustments
1. Further bad debts Rs. 1,000. Discount on debtors Rs. 500 and
make a provision on debtors @ 5%.
Solution:
Trading and profit and Loss Account for the year ended December
31, 2005
Dr.
Expenses / Losses
Amount
Revenues / Gain
Opening stock
50,000
Sales 2,50,000
Less
S/R 2,000
(Rs.)
Purchases 1,50,000
1,45,500
Carriage inwards
4,500
Lighting charges
500
Wages 2,400
Add O/s wages 100
Amount
(Rs.)
2,48,000
32,500
2,500
Gross profit
77,500
4,500
Discount
Closing Stock
Cr.
2,80,500
400
2,80,500
Gross profit b/d
Interest received
77,500
3,500
Interest received on
investment
5,100
Insurance
2,500
Commission
200
400
440
Discount on debtors
500
Depreciation on Motor
car
Telephone charges
Net profit
Discount received
400
1,250
100
66,010
83,000
400
1,200
Repair
Carriage outward
1,600
Amount
(Rs)
1,66,010
Assets
Debtors 53,000
Less:
Further bad debts
1,000
83,000
Amount
(Rs)
52,000
Less:
Prov for debt 2,600
49,400
Less
Discount on
Debtors 500
48,900
Creditors
NCERT Questions
Bills Payable
O/s wages
O/s interest
1,25,000
Cash in hand
77,800
100
Bills receivable
20,000
6,040
200
Cash at Bank
Investment 32,000
Add:
Interest on invt 1,600
2,97,350
Closing Stock
Comment
60,800
23,750
33,600
32,500
2,97,350
Like
Share
Question-13
The following balances have been extracted from the trial of M/s
Haryana Chemical Ltd. You are required to prepare a trading and profit
and loss account and balance sheet as on December 31, 2005 from
the given information.
Account Title
Amount
Rs.
Account Title
Amount
Rs.
Opening stock
NCERT Questions
Purchases
Sales return
Cash in hand
Cash at bank
Carriage
Free hold land
Patents
General Expenses
Sundry Debtors
Building
Machinery
Insurance
Drawings
Motor vehicle
Bad debts
Light and Water
Trade expenses
Power
Salary and Wages
50,000
1,25,500
2,000
21,200
12,000
100
3,20,000
1,20,000
2,000
32,500
86,000
34,500
Sales
Purchases return
Creditors
Rent
Interest
Bills payable
Capital
12,400
10,000
10,500
2,000
1,200
2,000
3,900
5,400
3,000
8,56,200
3,50,000
2,500
25,000
5,000
2,000
1,71,700
3,00,000
8,56,200
Adjustments
1. Closing stock was valued at the end of the year Rs. 40,000.
2. Salary amounting Rs. 500 and trade expense Rs. 300 are due.
Expenses / Losses
Amount
(Rs.)
Revenues / Gain
Cr.
Amount
(Rs.)
Opening Stock
NCERT Questions
50,000
Purchases 1,25,500
Less P/R
2,500
Carriage
3,48,000
Closing stock
40,000
Less: S/R
2,000
1,23,000
100
Power
3,900
Gross profit
2,11,000
3,48,000
General expenses
Insurance
Sales
3,50,000
2,000
12,400
3,48,000
Gross profit b/d
2,11,000
Interest
2,000
Rent
5,000
3,525
5,900
1,200
2,300
5,165
1,85,510
2,18,000
2,18,000
NCERT Questions
Liabilities
Capital 3,00,000
Amount
(Rs)
4,75,510
Bills Payable
1,71,700
Creditors
O/S Salary
25,000
500
300
Assets
Amount
(Rs)
Cash in hand
21,200
Cash at Bank
12,000
Patents
1,20,000
3,20,000
Sundry Debtors
32,500
Less provision
1,525
30,975
Building 86,000
Less depcn 3,440
Machinery 34,500
Less: depcn
1,725
Motor vehicle
Loan
10,500
40,000
6,73,010
Question-14
32,775
3,000
Closing Stock
Comment
82,560
6,73,010
Like
Share
From the following information prepare trading and profit and loss
account of M/s Indian sports house for the year ending December
31, 2005.
Account Title
NCERT Questions
Drawings
Sundry debtors
Bad debts
Trade Expenses
Amount
Rs.
20,000
80,000
1,000
2,400
Printing and
Stationery
2,000
Feright
Account Title
Capital
Return outwards
Bank overdraft
60,000
15,400
Return inwards
4,000
7,000
Sales
1,80,000
Plant and
Machinery
1,00,000
Cash in hand
Discount allowed
Investments
2,76,000
25,000
Purchases
Wages
12,000
Sundry creditors
Bills payable
Bills receivable
2,000
4,000
5,000
Furniture and
Fixture
2,00,000
Provision for
bad debts
Opening stock
Amount
Rs.
20,000
14,000
10,000
6,000
2,000
40,000
51,000
5,69,400
5,69,400
Adjustments
1. Closing stock was Rs.45,000.
2. Provision for bad debts is to be maintained @ 2% on debtors.
3. Depreciation charged on : furniture and fixture @ 5%, plant and
NCERT Questions
Solution:
Trading and profit and Loss Account for the year ended December
31, 2005
Dr.
Expenses / Losses
Amount
(Rs.)
Revenues / Gain
Purchases 1,80,000
Less: P/R
2,000
1,78,000
Closing Stock
Gross profit
1,01,000
Opening Stock
Wages
25,000
Sales 2,76,000
Less: S/R
7,000
Cr.
Amount
(Rs.)
2,69,000
45,000
10,000
3,14,000
2,600
Trade expenses
2,400
Printing and
Stationary
2,000
Freight
4,000
5,000
Discount allowed
2,000
3,14,000
Gross profit b/d
1,01,000
4,000
Depreciation
NCERT Questions
Furniture and fixture
1,000
Plant and machinery
6,000
Motor car 5,100
Gross Profit
12,100
74,900
Amount
(Rs)
Assets
Amount
(Rs)
2,54,900
Bank overdraft
12,000
Bills receivable
14,000
Bills Payable
15,400
19,000
2,74,900
Less: drawings
20,000
Sundry creditors
60,000
Cash in hand
1,000
78,400
6,000
94,000
NCERT Questions
45,900
Closing Stock
45,000
Investments
40,000
3,42,300
3,42,300
Comment
Like
Share
Question-15
Prepare the trading and profit and loss account and a balance
sheet of M/s Shine Ltd. from the following particulars.
Account Title
Amount
Account Title
Amount
Sundry debtors
1,00,000
Bills payable
85,550
Trade expenses
2,500
Provision for
bad debts
1,500
2,50,000
Bad debts
Rs.
3,000
Sundry creditors
25,000
Printing and
Stationary
5,000
3,450
Capital
Freight
2,250
Discount
3,500
Sales return
6,000
Interest
11,260
Motor car
Opening stock
25,000
75,550
Return outwards
Rs.
received
received
Sales
4,500
1,00,000
Furniture and
NCERT Questions
Fixture
15,500
Purchases
75,000
Investments
65,500
Drawings
Cash in hand
Adjustments
13,560
36,000
53,000
4,81,310
4,81,310
Solution:
Trading and profit and Loss Account for the year ended
December 31, 2005
Dr.
Expenses / Losses
Amount
Revenues / Gain
Opening stock
75,550
Sales 1,00,000
Less: S/R 6,000
Purchases 75,000
Less: P/R 4,500
(Rs.)
70,500
1,46,050
Cr.
Amount
(Rs.)
94,000
Closing Stock
35,000
Gross loss
17,050
1,46,050
17,050
Trade expenses
Printing and
Stationary
Depreciation
Furniture and fixture
775
Motor Car 2,500
2,500
1,500
Interest received
11,260
Discount received
3,500
3,650
Interest on
drawings
814
2,250
Net Loss
27,482
5,000
8,950
1,881
3,275
44,556
44,556
2,22,518
Less drawings 13,560
2,08,958
Less:
Interest on
drawings
814
Amount
(Rs)
2,08,144
Assets
Cash in hand
Amount
(Rs)
36,000
Sundry Creditors
NCERT Questions
Bills payable
25,000
85,550
200
Cash at bank
Debtors
1,00,000
Less:
3,18,894
Comment
Question-16
Closing Stock
53,000
92,169
14,725
22,500
65,500
35,000
3,18,894
Like
Share
NCERT Questions
Account Title
Opening stock
Purchases
Drawings
Buildings
Motor van
Freight inwards
Sales return
Trade expense
Amount
Rs.
2,26,000
4,40,000
75,000
1,00,000
30,000
3,400
10,000
15,000
Creditors
50,000
Interest
received
20,000
Bills payable
Capital
63,700
3,50,000
5,000
3,000
1,000
6,500
Sundry debtors
25,000
Insurance
Return
outwards
6,80,000
8,000
79,000
Investments
Sales
Amount
Rs.
3,300
Cash in hand
Cash at bank
Account Title
98,000
40,000
3,500
22,000
11,78,700
11,78,700
NCERT Questions
Sundry Debtors.
4. Unexpired insurance was Rs. 600.
Solution:
Trading and profit and Loss Account for the year ended
December 31, 2005
Dr.
Expenses / Losses
Amount
(Rs.)
Revenues / Gain
Purchases 4,40,000
Less: P/R 15,000
4,25,000
Closing Stock
8,000
Opening Stock
2,26,000
Freight inwards
3,400
Gross profit
37,600
7,00,000
Trade expense
3,300
Legal expense
3,000
Insurance 3,500
Less:
Unexpired insurance
5,000
1,000
2,900
600
Depreciation
Building 5,000
Motor van 3,000
Sales 6,80,000
Less: S/R 10,000
8,000
Cr.
Amount
(Rs.)
6,70,000
30,000
7,00,000
Gross profit b/d
Interest received
37,600
20,000
7,750
26,650
57,600
57,600
Amount
(Rs)
Assets
Amount
(Rs)
Cash in hand
79,000
Cash at bank
98,000
3,01,650
50,000
63,700
Building 1,00,000
Less: depcn 5,000
Motor van 30,000
Less: depcn 3,000
Debtors 25,000
Less
Prov for bad debts
1,250
27,000
23,750
Investment
40,000
Unexpired
600
Machinery
insurance
4,15,350
95,000
Closing Stock
22,000
30,000
4,15,350
Like
Share
Comment
NCERT Questions
Question-17
Sales return
Bank charges
Trade Expenses
Amount
Rs.
20,000
Sales
40,000
Discount
12,000
100
500
2,000
200
Purchases
return
1,260
5,230
1,28,870
10,000
3,800
870
Sundry debtors
Bills payable
1,01,110
1,50,000
Cash in hand
Apprentice
premium
2,20,000
1,200
76,800
Bills receivable
Capital
Amount
Rs.
200
Stock (Opening)
Cash at bank
Account Title
50,000
24,500
30,000
54,300
466470
466570
1. Closing stock was valued at the end of the year Rs, 20,000.
NCERT Questions
Solution:
Trading and profit and Loss Account for the year ended
December 31, 2005
Dr.
Expenses / Losses
Opening Stock
Purchases 1,50,000
Less: P/R 10,000
Amount
(Rs.)
Revenues / Gain
1,40,000
Closing Stock
76,800
Carriage inwards
100
Wages 500
Less: prepaid 40
460
Sales 2,20,000
Less: S/R
200
21,240
Salary 2,000
Add: O/S 100
2,100
Gross profit
Trade expenses
200
3,800
Discount
Amount
(Rs.)
2,19,800
20,000
1,200
Gross profit
Bank charges
Cr.
2,39,800
870
2,39,800
Apprentice premium
21,240
1,260
5,230
Depreciation
NCERT Questions
Plant and
machinery 2,000
Land and
building 1,200
3,200
Discount on debtors
1,548
Net Profit
13,297
2,715
27,730
27,730
Amount
(Rs)
13,297
1,14,407
Less: drawings
20,000
94,407
O/S salary
100
Bills Payable
1,28,870
Assets
Amount
(Rs)
Cash in hand
30,000
Cash at Bank
50,000
Plant and
machinery 40,000
Less: depcn 2,000
38,000
Land and
building 12,000
Less: depcn 1,200
Bills receivable
Sundry Debtors
54,300
Less: prov 2,715
51,585
Less discount
1,548
10,800
24,500
50,037
Prepaid wages
NCERT Questions
2,23,377
Closing Stock
Comment
40
20,000
2,23,377
Like
Share
Question-18
Account Title
Sundry debtors
Opening stock
Purchases
Carriage inwards
Debit
Amount
Rs.
9,600
22,800
34,800
450
Wages
1,770
Insurance
1,440
Office rent
Factory rent
Cleaning charges
Salary
Building
Plant and
Machinery
Cash in hand
820
390
940
1,590
24,000
3,600
2,160
240
Account Title
Sundry creditors
Credit
Amount
Rs.
2,500
Sales
72,670
Bills payable
15,600
Purchases returns
Capital
2,430
42,000
Octroi
NCERT Questions
Furniture
Patents
60
20,540
10,000
135200
135200
Solution:
Dr.
Trading and profit and Loss Account for the year ended
December 31, 2005
Expenses / Losses
Opening stock
Purchases 34,800
Less: P/R 2,430
Carriage inwards
Wages 1,770
Add: O/S 500
Octroi
Amount
(Rs.)
22,800
32,370
450
2,270
60
290
940
240
Revenues / Gain
Sales
Closing Stock
Cr.
Amount
(Rs.)
72,670
10,000
Gross profit
NCERT Questions
23,250
82,670
Office rent
Insurance 1,440
Add: O/S 100
Salary 1,590
Add: O/S 350
820
82,670
Gross profit b/d
23,250
1,540
1,940
Bad debts
Depreciation
Plant and Machinery
180
Building 2,400
Net Profit
480
2,580
15,890
23,250
23,250
Amount
(Rs)
Assets
Amount
(Rs)
Capital 42,000
Add: Net profit
15,890
57,890
Cash in hand
2,160
Bills payable
15,600
9,120
Sundry creditors
2,500
Sundry Debtors
9,600
Less: prov for
debtors 480
3,420
950
Building 24,000
Less: depcn 2,400
21,600
Furniture
20,540
NCERT Questions
Patents
10,000
Closing Stock
10,000
Comment
100
76,940
Like
Share
Question-19
Amount
Rs.
Account Title
Amount
Rs.
Purchases
NCERT Questions
Bank balance
Wages
Debtors
Cash in hand
Legal expenses
Building
Machinery
Bills receivable
Office expenses
Opening stock
Gas and fuel
Freight and
Carriage
Factory lighting
Office furniture
Patent right
80,000
11,000
Capital
4,000
Return
34,000
70,300
1,200
60,000
120,000
7,000
3,000
45,000
2,700
Bills payable
Sales
Creditors
2,10,000
6,500
2,00,000
50,000
4,000
outwards
3,500
5,000
________
5,000
18,800
________
4,70,500
_______
Adjustments
(a) Machinery is depreciated at 10% and buildings
4,70,500
depreciated at 6%.
(b) Interest on capital @ 4%.
(c) Outstanding wages Rs. 50.
(d) Closing stock Rs.50,000.
Solution:
Trading and profit and Loss Account for the year ended
December 31, 2005
Dr.
NCERT Questions
Expenses / Losses
Opening Stock
Purchases 80,000
Less: P/R 4,000
Amount
(Rs.)
Revenues / Gain
76,000
Closing Stock
45,000
Wages 34,000
Add: O/S wages 50
34,050
2,700
Factory Lighting
5,000
Depreciation
Machinery 12,000
Buildings 3,600
15,600
Net profit
2,00,000
50,000
83,750
4,000
Interest on capital
Amount
(Rs.)
3,500
Legal expenses
Office expenses
Sales
Cr.
3,000
83,750
8,400
52,750
83,750
83,750
Amount
(Rs)
Assets
Amount
(Rs)
Capital 2,10,000
NCERT Questions
Add:
Interest on capital
8,400
Cash in hand
1,200
Cash at Bank
11,000
2,71,150
2,18,400
Outstanding wages
6,500
50,000
50
Building 60,000
Less: depcn
3,600
Machinery
1,20,000
Less: depcn
12,000
1,08,000
Bills receivable
7,000
Patent right
18,800
Office furniture
Debtors
3,27,700
56,400
Closing Stock
Comment
5,000
70,300
50,000
3,27,700
Like
Share
Question-20
Amount
Amount
NCERT Questions
Opening stock
Misc. Income
Rs.
10,000
40,000
200
6,000
500
2,000
Cash
3,000
Investment
Patent
600
6,000
2,000
Drawings
80,000
4,000
Rent
Capital
Rs.
6,000
40,000
7,000
6,000
4,000
43,000
600
11,300
136600
1,000
136600
Trading and profit and Loss Account for the year ended
December 31, 2005
Cr.
Expenses / Losses
NCERT Questions
Opening Stock
Purchases 40,000
Less: P/R 600
Wages
Gross profit
Amount
(Rs.)
10,000
39,400
Revenues / Gain
Sales 80,000
Less: S/R 200
Closing Stock
79,800
2,000
6,000
4,000
500
21,900
81,800
81,800
600
2,715
income
Depreciation
Amount
(Rs.)
Interest on capital
2,000
Net Profit
25,985
31,300
Miscellaneous
Rent 2,000
Less: unexpired
rent
100
21,900
6,000
1,900
Interest on drawing
140
1,000
Interest on
investment
360
31,300
Amount
(Rs)
Assets
Amount
(Rs)
Capital 40,000
NCERT Questions
Less: int on
capital 2,000
38,000
Less drawings
Cash
3,000
Debtors
6,000
Patent
4,000
Furniture
11,300
10,735
Unexpired rent
100
35,860
2,000
36,000
Less:
int on drawings
140
Creditors
Sales tax
collected
7,000
1,000
Investment
6,000
Add: int on invt
360
Land and
machinery
43,000
Less: depcn
2,150
Less: depcn
565
Closing stock
Comment
Question-21
6,360
40,850
2,000
Like
Share
NCERT Questions
Account Title
Opening stock
Purchases
Return Inwards
Carriage
inwards
Debit
Amount
Rs.
16,000
67,600
4,600
1,400
Account Title
Sales
Return outwards
Discount
Bank overdraft
General
expenses
2,400
Commission
Insurance
Scooter
expenses
4,000
200
Creditors
Salary
8,800
Scooter
8,000
Cash in hand
Furniture
Buildings
Debtors
Wages
Capital
Credit
Amount
Rs.
1,12,000
3,200
1,400
10,000
1,800
16,000
50,000
4,000
5,200
65,000
6,000
1,200
1,94,400 1,94,400
Prepare the trading and profit and loss account for the year
ended December, 31 and a balance sheet as on that date.
(a) Unexpired insurance Rs 1,000.
(b) Salary due but not paid Rs. 1800.
(c) Wages outstanding Rs. 200.
(d) Interest on capital 5%.
(e) Scooter is depreciated @ 5%.
(f) Furniture is depreciated Rs.@ 10%.
Solution:
Trading and profit and Loss Account for the year ended
NCERT Questions
Dr.
Expenses / Losses
Opening stock
Purchases 67,600
Less: P/R 3,200
64,400
Wages
1,200
Add: O/S wages
200
1,400
Carriage inwards
1,400
Gross profit
39,200
General expenses
2,400
Insurance
4,000
Less: unexpired
1,000
Scooter expenses
Salary
8,800
Add: salary due
1,800
Depreciation
Scooter
400
Furniture
520
Interest on capital
Net profit
Revenues / Gain
Sales 1,12,000
Less: S/R 4,600
Closing stock
1,22,400
3,000
200
10,600
920
2,500
22,780
Cr.
Amount
(Rs.)
1,07,400
15,000
1,22,400
Gross profit b/d
39,200
Commission
1,800
Discount
1,400
42,400
NCERT Questions
42,400
Amount
(Rs)
10,000
Creditors
16,000
O/S wages
200
1,800
1,03,280
Comment
Question-22
Amount
(Rs)
Cash in hand
4,000
Sccoter 8,000
Less: depcn
400
7,600
Buildings
65,000
Unexpired
insurance
1,000
75,280
Bank overdraft
O/S salary
Assets
Furniture 5,200
Less: depcn
520
4,680
Debtors
6,000
Closing Stock
15,000
1,03,280
Like
Share
Prepare the trading and profit and loss account and balance
sheet of M/s Control Device India on December 31, 2006 from
the following balance as on that date.
NCERT Questions
Account Title
Debit
Amount
Rs.
19,530
25,470
45,000
2,700
27,000
Opening stock
42,300
Furniture
Insurnace premium
Interest
Bank overdraft
Returns
Carriage outwards
General expenses
Investment
Credit
Amount
Rs.
67,500
1,12,500
1,575
6,750
2,700
2,160
11,215
7,425
24,660
2,385
1,440
36,000
58,500
1,485
6,975
530
41,400
273600
273600
Trading and profit and Loss Account for the year ended
NCERT Questions
Dr.
Expenses / Losses
Amount
Revenues / Gain
Opening Stock
42,300
Sales 1,12,500
Less: S/R 2,385
(Rs.)
Purchases 45,000
Less: P/R 1,440
43,560
Wages 11,215
Add: O/S 50
11,265
Carriage
Octroi
Gross profit
Salary and
Commission 25,470
Ad; O/S
20
Closing Stock
Cr.
Amount
(Rs.)
1,10,115
20,000
2,700
530
29,760
1,30,115
1,30,115
25,490
29,760
Insurance premium
2,700
Interest on
977
2,160
Interest
Interest on capital
6,750
Provision on
debtors
1,800
Carriage outwards
Depreciation
General expenses
1,485
1,350
6,975
48,710
drawing
Salary and
Commission
Net Loss
7,425
1,575
8,973
48,710
NCERT Questions
Liabilities
Capital 67,500
Add: int on Capital
6,750
74,250
Less: drawings
19,530
54,720
Less: int on
Drawings
977
53,743
Less: Net Loss
8,973
Bank Overdraft
Creditors
O/S wages
O/S Salary
Amount
(Rs)
Assets
Debtors 36,000
Less:
Provision for
bad debts 1,800
Amount
(Rs)
34,200
44,770
24,660
58,500
50
20
Plant and
Machinery 27,000
25,560
Furniture
6,750
Closing stock
20,000
1,28,000
41,400
1,28,000
Comment
Like
Question-23
Share
Sundry
debtors
NCERT Questions
Bad debts
30,500
Provision
for bad
debts
500
2,000
Date
Particulars
J.F
Amount
(Rs)
Date
Particulars
March
31,
2006
Bad debts
Further
bad debts
300
March
31,
2006
Provision
for bad
debts @
3,020
March
31,
2006
Dr.
Particulars
March
Balance
b/d
J.F
Date
Particulars
30,500
March
Bad debts
31,
2006
(Rs)
10%
Amount
(Rs)
Amount
500
Date
31,
2006
J.F
Cr.
J.F
Cr.
Amount
(Rs)
500
March
Provision
NCERT Questions
31,
for bad
2006
debts
2,000
March
31,
Further
bad debts
300
March
Provision
3,020
2006
31,
2006
for bad
debts @
10%
Profit and Loss Account for the year ended March 31, 2006
Dr.
Expenses / Losses
Bad debts 500
Add: further bad
debts 300
800
Amount
(Rs.)
3,820
Revenues / Gain
Cr.
Amount
(Rs.)
2,000
Balance c/d
1,820
3,820
Amount
(Rs)
Assets
Debtors 30,500
Less:
further
bad debts 300
30,200
Less:
prov for bad
debts
3,020
Comment
Amount
(Rs)
27,180
Like
Share
NCERT Questions
Question-24
Bad debts
Provision
for bad
debts
Rs.
80,000
2,000
5,000
Adjustments :
Bad debts Rs.500 Provision on debtors @ 3%.
Solution:
Profit and Loss Account for the year ended March 31, 2006
Dr.
Expenses / Losses
2,500
Add: prov doe bad
debts 2,385
Balance c/d
Amount
(Rs.)
4,885
Revenues / Gain
Provision for bad
debts
115
5,000
Amount
(Rs)
Assets
Cr.
Amount
(Rs.)
5,000
5,000
Amount
(Rs)
Debtors 80,000
Less:
NCERT Questions
further
bad debts 500
79,500
Less:
77,115
Comment
Like
Share
Next
About Us (/mainsite/aboutus)
Contact Us (/mainsite/contact)
Developers (/mainsite/developer)
News (/mainsite/news)
Blog (/blog/)