image

Solution of Assignment Synopsis & Project Dissertation Report


PRODUCT DETAILS

Online-Typing-and-Filling

Title Name Amity Solved Assignment B.Com 1st Sem for Financial Accounting
University AMITY
Service Type Assignment
Course B.Com
Semister Semester-I Cource: B.Com
Short Name or Subject Code Financial Accounting
Commerce line item Type Semester-I Cource: B.Com
Product Assignment of B.Com Semester-I (AMITY)

Solved Assignment


  Questions :-

                                                                                       FINANCIAL ACCOUNTING

 

1. (a) Explain the nature, uses and limitations of Financial Statements

(b) Prepare a Trading Account of Mr. Anil for the year ending 31st March, 2009

Q2. B and C enter a joint venture to prepare a film for the Government. The Government agrees to pay Rs.1, 00,000.B contributes Rs.10, 000 and C contributes Rs. 15,000.These amounts are paid into a Joint Bank Account. Payments made out of the joint account were:

Qus.3  Write short notes on any three of the following:-

A)        Dual Aspect Concept

B)        Accrued Income and Outstanding expenses

C)        Convention of Conservatism

4. Explain what is Bank Reconciliation statement? Draw a Proforma of a Bank Reconciliation statement with favorable balance as per cash book. Illustrate with the help of an example.

Qus.5   Prepare a Trial   Balance of Mohan& Co. as on March 31 2003 

Q6.  For the following transactions in ABC Ltd, prepare Accounting Equation.  

Started Business with Cash Rs 36,000

Purchased goods for cash  Rs 18,000 and credit Rs 12,000

Paid Rent in advance Rs 300

Paid Salary Rs.300 and Salary outstanding is Rs 60.

Bought motorcycle for personal use Rs.3,000

 

 

 

ASSIGNMENT B

 

Case Study 1

 

Q1      X, Y and Z were partners in a firm sharing profits in the proportions of 1/2, 1/3 and 1/6 respectively. The Balance Sheet of the firm on 31st March 2001 was as follows:

Liabilities

Amt.

Assets

Amt.

Trade Creditors

Employees Provident Fund

Reserve Fund

Capitals

X             65,000

Y             30,000

Z              20,000

15,000

6,000

18,000

115000

Cash at bank

Debtors                40,000

Less: Provision     2,000

Stock

Investments

Patents

Plant & Machinery

Goodwill 

5,000

38,000

30,000

15,000

10,000

50,000

6,000 

1,54,000

1,54,000


Z retired on the above date on the following terms:

a)     Goodwill of the firm was valued at Rs. 30,000

b)    Value of patents was to be reduced by 20% and that of plant & machinery to 90%.

c)     Provision for doubtful debts was to be raised to 6 %.

d)    Z took over the investments at a value of Rs.17,600.

e)     Liability for workmen’s compensation to the extent of Rs. 375 is to be created.

f)     Trade creditors to the extent of 2.5 % are not likely to claim their dues.

g)   Amount due to Z is to be settled on the following basis:

50 % on retirement, 50 % of the balance to be paid in 2 equal half yearly installments carrying interest at 5 % p.a. and the balance by a Bill of Exchange (without interest) at 3 months.

h)     The entire capital of the firm as newly constituted is fixed at Rs.100, 000 and the partners’ capital accounts are to be adjusted in the profit sharing ratio. Any excess is to be transferred to current account and any deficit is to be brought in cash.

 

Question

Prepare Revaluation account, Partners’ Capital accounts and Balance Sheet of X & Y after Z’s retirement. Also prepare Z’s Loan account till it is fully paid.

Case study 2

Qus.1.Anil sent on 1st July,2006 to Rahul goods costing Rs.50,000 and spent Rs.1,000 on packing etc. On 3rd July 2006, Rahul received the goods and sent his acceptance to Anil for Rs.30,000 payable at 3 months. Rahul spent Rs.2,000 on freight  and cartage,Rs 500 on godown rent and Rs.300 on insurance. On 31st December, 2006 he sent his Account Sales (along with the amount due to)Showing that 4/5 of the goods had been sold for Rs.55,000.Rahul is entitled to a commission of 10%.One of the customers turned insolvent and could not pay Rs.600 due from him. Show the necessary ledger accounts

 

 

 

 

ASSIGNMENT C

Question No.  1

Information that goes into __________ can be used to help prepare __________.      

 Options              

  1. a forecast balance sheet; a forecast income statement
  2. forecast financial statements; a cash budget     
  3. a cash budget; forecast financial statements     
  4. a forecast income statement; a cash budget

 

 

Question 2

Refers to part of current assets that fluctuates directly with changes in sales level.         

 Options              

  1. Financing           
  2. Investment     
  3. Permanent assets         
  4. Temporary assets          

 

 

Question 3

Profit and Loss Account is--       

 Options              

  1. Real Account    
  2. Nominal Account           
  3. Personal Account           
  4. None of the above

 

 

Question 4

According to the accounting profession, which of the following would be considered a cash-flow itemfrom a "financing" activity?             

 Options              

  1. A cash outflow to the government for taxes.    
  2. A cash outflow to repurchase the firm´s own common stock.    
  3. A cash outflow to lenders as interest.   
  4. A cash outflow to purchase bonds issued by another company

 

 

Question No.  5

Which of these items would be accounted for as an expense? 

 Options              

  1. Repayment of a bank loan.        
  2. Dividends to stockholders          
  3. The purchase of land.  
  4. Payment of the current period´s rent.

 

 

Question No.  6

Which of the following would not be included on a balance sheet?         

 Options              

  1. Accounts receivable.    
  2. Accounts payable          
  3. Sales.  
  4. Cash.

 

 

Question No.  7

The requirement that only transaction data capable of being expressed in terms of money be included in the accounting records relates to the --              

 Options              

  1. Cost principle   
  2. Monetary unit assumption        
  3. Economic entity assumption     
  4. Both a & b

 

 

Question No.  8

Revenue is generally recognized at the point of sales .Which principle is applied herein--             

 Options              

  1. Consistency principle   
  2. Matching principle         
  3. Revenue recognition principle 
  4. Cost principle

 

 

Question No.  9

Petty cash fund is--       

 Options              

  1. Used to pay relatively small amounts    
  2. Reimbursed when the amount of money in the fund is reduced to a predetermined minimum amount
  3. Established by estimating the amount of cash needed for disbursement of relatively small amounts during a specified period 
  4. All of the above

 

 

Question No.  10            

Which of the following errors will be disclosed in the preparation of a trial balance?       

 Options              

  1. Recording transactions in the wrong account.   
  2. Duplication of a transaction in the accounting records   
  3. Posting only the debit portion of a particular journal entry         
  4. Recording the wrong amount for a transaction to both the account debited and the account credited.

 

 

Question No.  11            

Book Value is--

 Options              

  1. The amount that is due at the maturity or due date of a note.  
  2. The process of transferring the cost of natural resources to an expense account.            
  3. The cost of a fixed asset minus accumulated depreciation on the asset
  4. The estimated value of a fixed asset at the end of its useful life.              

 

 

 

Question No.  12            

An examination of the sources and uses of funds is part of--     

 Options              

  1. a forecasting technique              
  2. A funds flow analysis    
  3. a ratio analysis 
  4. calculations for preparing the balance sheet

 

 

Question No.  13            

Which of the following is not a cash outflow for the firm?

 Options              

  1. Depreciation.   
  2. Dividends          
  3. Interest payments        
  4. Taxes

 

 

Question No.  14            

What must be known or estimated in order to calculate depreciation? 

 Options              

  1. The estimated useful life of the asset to the company  
  2. The acquisition cost of the asset.            
  3. The estimated residual value of the asset.         
  4. All of the above

 

 

Question No.  15

Information that goes into __________ can be used to help prepare __________.      

 Options              

  1. a forecast balance sheet; a forecast income statement
  2. forecast financial statements; a cash budget     
  3. a cash budget; forecast financial statements     
  4. a forecast income statement; a cash budget

 

 

Question No.  16            

Which of the following terms best relates to natural resources?              

 Options              

  1. Depreciation.   
  2. Depletion.         
  3. Amortization.  
  4. Accrual

 

 

Question No.  17            

A debit may signify--    

 Options              

  1. An increase in an asset account
  2. A decrease in an asset account
  3. An increase in a liability account              
  4. An increase in the owner´s capital Account         

 

 

Question No.  18            

When a partnership firm is to be dissolved, the following account is opened in the ledger--

 Options              

  1. Revaluation Account    
  2. Profit and Loss Adjustment Account     
  3. Realisation Account      
  4. Profit and Loss Appropriation Account 

 

 

Question No.  19            

Settlement of accounts on the dissolution of a partnership firm is governed by the following section of the Indian Partnership Act, 1932   

 Options              

  1.            
  2. 49
  3. 48         
  4. 10

 

 

Question No.  20            

A new partner brings in cash as his share of goodwill, this amount will be distributed among the old Partners--

 Options              

  1. In the old profit sharing ratio    
  2. In the ratio of their capital          
  3. Equally
  4. In the ratio of sacrifice of profit by them             

 

 

Question No.  21

In the absence of an agreement to the contrary, on drawings--

 Options              

  1. No interest is to be charged      
  2. Interest @5% per annum is to be charged          
  3. Interest @6% per annum is to be charged          
  4. Interest @12% per annum is to be charged

 

Solve by www.solvezone.in contact for more detail - 8882309876

 

Question No.  22            

For a charitable institution, subscriptions by its member constitute its-----.         

 Options              

  1. Asset   
  2. Income
  3. Expenditure     
  4. Liability

 

 

Question No.  23            

The most suitable method for providing depreciation on mines, oil wells and quarries--

 Options              

  1. Straight line method     
  2. Depletion method         
  3. Annuity method             
  4. Machine hour rate method       

 

 

Question No.  24            

In income and expenditure account, the excess of income over expenditure is called--

 Options              

  1. Surplus
  2. Deficit 
  3. Gross Profit      
  4. Net Profit

 

 

Question No.  25            

In consignment   the risk of loss is borne by--    

 Options               

  1. The consignor only        
  2. The consignee only       
  3. The consignor as well as the consignee
  4. Neither the consignor nor the consignee            

 

 

Question No.  26            

Carriage Outward Account will appear on the--

 Options               

  1. Debit side of the Trading Account           
  2. Debit side of the Profit and Loss Account            
  3. Credit side of the Trading Account         
  4. Credit side of the Profit and Loss Account

 

 

Question No.  27            

At the end of an accounting year, trade debtors total Rs.50, 000. Provisions for bad debts and discount on debtors are made @5% and @% respectively. Provisions on discount on debtors will be made for--

 Options              

  1. Rs.1000
  2. Rs.2,500              
  3. Rs.950 
  4. Rs.975

 

 

Question No.  28            

The primary record of a credit purchase of a fixed asset is made in--

 Options              

  1. Cash Book         
  2. Sales Book        
  3. Purchases Book              
  4. Journal Proper

 

 

Question No.  29             

Which one of the following assets could be described as a current asset?            

 Options              

  1. Machinery to manufacture goods for resale      
  2. Stock of goods for resale            
  3. Buildings to house the machinery           
  4. Land on which the buildings stand

 

 

Question No.  30            

Which of the following equations properly represents a derivation of the fundamental accounting equation?   

 Options              

  1. Assets + Liabilities = Capital       
  2. Assets + Capital = Liabilities       
  3. Assets = Liabilities + Capital       
  4. Assets = Capital – Liabilities

 

 

Question No.  31            

If we take goods for own use we should --         

 Options              

  1. Debit Drawings Account: Credit Stock Account 
  2. Debit Purchases Account: Credit Drawings Account        
  3. Debit Sales Account: Credit Stock Account          
  4. Debit Drawings Account: Credit Purchases Account        

 

 

Question No.  32            

Forfeited Shares Account is finally closed by the transfer of its balance to--        

 Options              

  1. Securities Premium Account     
  2. General Reserve Account          
  3. Debenture Sinking Fund Account           
  4. Capital Reserve Account

 

 

Question No.  33

Capital Expenditure is--

 Options              

  1. The costs of running the business on a day-to-day         
  2. Money spent on selling fixed assets      
  3. The extra capital paid in by the proprietor          
  4. Money spent on buying fixed assets or adding value to them   

 

 

Question No.  34

If it is required to maintain fixed capitals then the partners’ shares of profits must be--

 Options              

  1. Credited to capital accounts      
  2. Debited to partners’ current accounts  
  3. Debited to capital accounts       
  4. Credited to partners’ current accounts

 

 

Question No.  35

According to the money measurement concept, the following will be recorded in the books of accounts of the business--              

 Options              

  1. Health of the managing director of the company             
  2. Quality of the company’ goods
  3. Value of plant and machinery   
  4. Dedicated and trusted employees

 

 

Question No.  36            

Sales made to Mahesh for cash should be debited to--

 Options               

  1. Cash account   
  2. Mahesh account            
  3. Sales account   
  4. Purchase account

 

 

Question No.  37            

A bank reconciliation is prepared so that the difference in the under-mentioned balance is reconciled  

 Options              

  1. The difference in the balance of the bank and cash balances     
  2. The difference in the balance in the Pass Book in the beginning and at the end
  3. The difference in the Pass Book and Cash Book balance
  4. None of the above                        

 

Solve by www.solvezone.in contact for more detail - 8882309876

 

Question No.  38            

In the absence of any provisions in the partnership agreement, profits and losses are shared by the partners--

 Options              

  1. In the ratio of their capitals        
  2. Equally
  3. In the ratio of loans given by them to the partnership firm         
  4. None of the above

 

 

Question No.  39            

Under the Written down value method, the amount of depreciation goes on _________ from year to year      

 Options              

  1. Decreasing        
  2. Increasing         
  3. Fluctuating        
  4. None of the above

 

 

Question No.  40            

How will the purchase of an asset on credit affect the accounting equation?      

 Options              

  1. It will decrease the assets and decrease the capital        
  2. It will decrease the assets and decrease the liabilities   
  3. It will increase the assets and decrease another asset  
  4. It will increase the assets and increase the liabilities

 

 

41. Which of the following is the activity which finance people are involved?        

 Options          

  1. Investing decisions    
  2. Operation decisions   
  3. Promotion decisions   
  4. Marketing decisions
  Answers :-

                                                                                              FINANCIAL ACCOUNTING

 

  1. (a) Explain the nature, uses and limitations of Financial Statements

(b) Prepare a Trading Account of Mr. Anil for the year ending 31st March, 2009

Rs.

              Purchases                                                          3, 00,000

              Sales                                                                   5, 00,000

              Stock (April 1, 2008)                                             40,000

              Wages                                                                     30,000

              Return Outwards                                                    3.000

              Return inward                                                         2,500

              Freight and clearing charges                                  5.000

              Additional information:-

              Stock on 31st March, 2009                                   42,000                    

Ans.

In the Books of Mr.Anil

Trading Account for the year ending on 31st March,2009

 

Particulars

Amount(Rs)

Particulars

Amounts(Rs)

       

To Opening Stock

40,000

By Sales: 5,00,000

 

To Purchases:3,00,000

 

less: Return Inwards:2,500

4,97,500

less: Return Outwards:3,000

2,97,000

   

To Wages

30,000

By Closing Stock

42,000

To Freight and clearing charges

5,000

   
       

To Gross Profit c/d

1,67,500

   
 

5,39,500

 

5,39,500

       
       
       
       

 

 

Q2. B and C enter a joint venture to prepare a film for the Government. The Government agrees to pay Rs.1, 00,000.B contributes Rs.10, 000 and C contributes Rs. 15,000.These amounts are paid into a Joint Bank Account. Payments made out of the joint account were:

            Purchase of equipment Rs.6000

            Hire of equipment Rs.5, 000

            Wages Rs.45, 000

            Materials Rs.10, 000

            Other expenses Rs.5, 000      

B paid Rs.2, 000 as licensing fees. On completion, the film was found defective and Government made a deduction of Rs.10, 000.The equipment was taken over by C at a valuation of Rs.2, 000. Prepare P&L account in respect of the company.

Ans.

P&L A/C

Particulars    

Amount

Particulars    

Amount

To J.V. a/c (Equipment’s)      

6000

By C’s Capital a/c (Equipment taken over)

10,000

“          J.V.a/c (Hire Charges)

5000

By Joint Bank a/c (Amount received)

90,000

“          J.V.a/c (wages)

45,000

   

“          J.V.a/c (Materials)      

10,000

   

“          J.V .a/c (Other Expenses)

5000

   

“          B’s Capital a/c(Licence fees)

2000

   

“Profit on Joint venture trfd to:

            A (1/2): 13,500

            B (1/2):  13,500

27000

   
 

100,000

 

100,000

 

 

Qus.3  Write short notes on any three of the following:-

Ans.

  1. A) Dual Aspect Concept: According to this concept, every transaction of a business has two aspects i.e. debit and credit of equal amount. In other words, for every debit there is an equal credit and vice-a-versa. For example Mr. X bought goods for cash for his business. This transaction has two effects, one the goods (stock) is increasing which is debit and second the cash is reducing which is credit. Thus we can say

CAPITAL (EQUITY)        =          CASH (ASSETS)

  1. B) Accrued Income and Outstanding expenses: Accrued Incomes refers to those incomes which have become due but not yet received. For example, interest declared by bank is although due but is received after a period of time.

Outstanding Expenses: As against the accrued incomes, outstanding expenses are those expenses which have become due for payment but not yet paid off. For example, the electricity bill or the telephone bill which become due at the end of a period say a month but they are usually paid after the due date. Another example is salary, i.e. an employee works for 30 days a month and hence his salary for that month becomes due on last day of the month but the same is paid by the employer on some date of the next month.

  1. C) Convention of Conservatism: This principle says “Do not anticipate any future profits but provide for all possible losses”. The application of this convention ensures the true and fair picture of the financial statements and what it actually is and not what it ought to be. Thus this convention must be used very cautiously so that the true and fair picture of financial statement is not affected. For example closing stock is shown at cost or market price whichever is lower. Similarly adequate provisions must be made as for provisions for doubtful debts, reserves, etc.

 

 

  1. Explain what is Bank Reconciliation statement? Draw a Proforma of a Bank Reconciliation statement with favorable balance as per cash book. Illustrate with the help of an example.

Ans.

Bank Reconciliation Statement is a statement prepared on a particular date to reconcile the bank balance as per the cash book with the balance as per Bank Pass Book. In other words, BRS is a statement showing the causes of difference between the above two books.

The proprietor maintains his cash book in which receipts are recorded on the Debit side while the payments/withdrawals are recorded on the credit side. Similarly, bank also maintains the records of the proprietor. The debit side of the bank pass book records the withdrawals while the credit side records the deposits by the proprietor.

At the end of a period (usually every month) the balances as per the two books should be same. However, sometimes it may so happen that the two balances differ. Thus, there is a need to find out the cause of difference between the two books. The statement showing the reasons or causes of difference is known as Bank Reconciliation Statement.

Performa of Bank Reconciliation Statement showing Favourable Balance as per Cash Book:

Particulars

Add(+) Items

Less(-) Items

Balance as per Cash Book(Dr.)

+

 

Cheques issued not presented for payment

+

 

Cheques deposited in bank but not credited

 

_

Bank charges/Interest charged by bank

 

-

Direct deposits by customer

+

 

Dishonour of a cheque and bill discounted with bank

 

-

Cheques paid into bank but omitted to be entered in Cash Book

+

 

Interest credited by bank

+

 

Balance as per Pass Book(Cr)

   

TOTAL

=

=

     
 

 

The bank column of the cash-book of Sh. A.K. Verma showed a debit balance of Rs.2500 as per cash book on 31st January, 2014. Prepare a bank reconciliation statement and show the balance as per Pass Book on the same date.

  1. Cheques amounting to Rs.5000 deposited in bank but were not credited.
  2. Bank charges charged by the bank was Rs.100
  3. A Customer directly deposited a sum of Rs. 10,000 in the bank account of Sh.Verma.
  4. Interest credited by bank Rs.20
  5. Two cheques amounting to Rs. 3000 and 2500 were issued but not presented for payment.

 

Bank Reconciliation Statement for the month of January 2014

Particulars

Add items

Less Items

Balance as per cash book

2500

 

Cheques deposited but not credited

 

5000

Bank charges charged by bank

 

100

Direct deposit by the customer

10,000

 

Interest by bank

20

 

Cheques issued but not presented for payment

5500

 

Balance as per Pass Book(Cr)

 

12920

TOTAL

18020

18020

 

 

Qus.5   Prepare a Trial   Balance of Mohan& Co. as on March 31 2003 

Capital

9,20,000

Sundry creditors 

1,88,520

Bills Payable

69,300

Sales

12,18,500

Provision  for doubtful debts

13,200

Interest(Cr.)

3,400

Building

7,00,000

Machinery 

1,20,000

Sundry debtors                                      

1,56,000

Cash in hand

9,880

Cash at bank

1,45,340

Bills Receivable

58,440

Purchases

8,55,220

Carriage outwards

12,910

Bad Debts

6130

Discount(Dr.)

6200

Sales Return

2850                                                          


Ans.

                                               In the Books of Mohan & Co.

                                         Trial Balance as on 31st March,2013

   

 

 

 
 

Column1

Column2

Column3

Column4

Column5

 

S.No.

Heads of Accounts

Debit Balances

Credit Balances

 
 

1

Capital

 

9,20,000

 
 

2

Sundry Creditors

 

1,88,520

 
 

3

Bills Payable

 

69,300

 
 

4

Sales

 

12,18,500

 
 

5

Provision for Doubtful debts

13,200

 
 

6

Interest(cr)

 

3,400

 
 

7

Building

7,00,000

   
 

8

Machinery

1,20,000

   
 

9

Sundry Debtors

1,56,000

   
 

10

Cash in Hand

9880

   
 

11

Cash at Bank

1,45,340

   
 

12

Bills Receivables

58,440

   
 

13

Purchases

8,55,220

   
 

14

Carriage Outwards

12,910

   
 

15

Bad Debts

6130

   
 

16

Discount(Dr.)

6200

   
 

17

Sales Return

2850

   
 

18

Suspence A/c(Bal Fig)

339950

 

 
 

 

TOTAL

24,12,920

2412920

 

 

         

 

         

Solve by www.solvezone.in contact for more detail - 8882309876

 

 

Q6.  For the following transactions in ABC Ltd, prepare Accounting Equation.    

Started Business with Cash Rs 36,000

Purchased goods for cash  Rs 18,000 and credit Rs 12,000

Paid Rent in advance Rs 300

Paid Salary Rs.300 and Salary outstanding is Rs 60.

Bought motorcycle for personal use Rs.3,000

Ans.

   

Accounting Equation in the books of ABC Ltd.

 

   
                   

TRANSACTION

ASSETS

       

=

LIABILITIES

 

CAPITAL

 

CASH

Goods

Advance rent

   

Creditors

        Rent

 
                   

1. Started business with cash

36000

             

36000

2. purchased goods for cash and on credit

-18000

30000

       

12000

   
                   

New Equation

18000

30000

       

12000

+

36000

3.paid rent in advance

-300

0

300

     

0

 

0

New Equation

17700

30000

300

     

12,000

 

36000

4. Paid Salary and outstanding salary

-300

           

300

-600

New Equation

17400

30000

300

     

12000

300

35400

Bought motorcycle for personal use

-3000

             

-3000

New Equation

14,400

30000

300

     

12000

300

32400

 

 

 

 

ASSIGNMENT B

 

Case Study 1

Q1      X, Y and Z were partners in a firm sharing profits in the proportions of 1/2, 1/3 and 1/6 respectively. The Balance Sheet of the firm on 31st March 2001 was as follows:

Liabilities

Amt.

Assets

Amt.

Trade Creditors

Employees Provident Fund

Reserve Fund

Capitals

X             65,000

Y             30,000

Z              20,000

15,000

6,000

18,000

115000

Cash at bank

Debtors                40,000

Less: Provision     2,000

Stock

Investments

Patents

Plant & Machinery

Goodwill 

5,000

38,000

30,000

15,000

10,000

50,000

6,000 

1,54,000

1,54,000

 

Z retired on the above date on the following terms:

  1. a) Goodwill of the firm was valued at Rs. 30,000
  2. b) Value of patents was to be reduced by 20% and that of plant & machinery to 90%.
  3. c) Provision for doubtful debts was to be raised to 6 %.
  4. d) Z took over the investments at a value of Rs.17,600.
  5. e) Liability for workmen’s compensation to the extent of Rs. 375 is to be created.
  6. f) Trade creditors to the extent of 2.5 % are not likely to claim their dues.
  7. g) Amount due to Z is to be settled on the following basis:

50 % on retirement, 50 % of the balance to be paid in 2 equal half yearly installments carrying interest at 5 % p.a. and the balance by a Bill of Exchange (without interest) at 3 months.

  1. h) The entire capital of the firm as newly constituted is fixed at Rs.100, 000 and the partners’ capital accounts are to be adjusted in the profit sharing ratio. Any excess is to be transferred to current account and any deficit is to be brought in cash.

 

Question

Prepare Revaluation account, Partners’ Capital accounts and Balance Sheet of X & Y after Z’s retirement. Also prepare Z’s Loan account till it is fully paid.

Revaluation Account

Particulars                               Amount                    Particulars                                 Amount

To Patents                               2000                            By Investments                       2600

“Plant &Machinery                 5000                            By Trade Creditors                   375

“Prov. For Doubtful Debts     400                             By Loss transferred to:

“W.C. Fund                            375                              X (3/6): 2400

                                                                              Y (2/6): 1600

                                                                              Z (1/6):    800                          4800

                               7775                                                                                       7775

 

Partner’s Capital Accounts

Particulars                   X         Y         Z                      Particulars          X         Y         Z

To revaluation Loss            2400    1600    800                  By Bal B/d      65000  30000  20000 

“   Investment                    -           -           17600              “Reserve Fund 9000   6000    3000

“     G.W.w/o                     3000    2000    1000                “X’s Cap a/c    -           -           3000

“     Z’s capital a/c              3000    2000      -                     “Y’s cap a/c     -           -           2000

“      Current A/c                5600    -           -                       “Cash a/c         -           9600      -

“      Bank a/c(paid)                        -           -           4300

“      Z’s Loan a/c               -           -           2150

“     B/P                              -           -           2150

Bal c/d                        60,000         40,000   -        

                                   74000          45600  28000                                   74000     45600  28000

 

 

                                                                  Balance Sheet

                                                           As at 31st March, 2001

 

Liabilities                                   Amount                                          Assets                           Amount

Trade Creditors (15000-375)  14625                  Cash (5000+9600-4300)     10300

Employees P.F                        6000                     Debtors (40000-2400)        37600            W.C.Fund                                 375                       Stock                                              30,000

Bills Payable                           2150                     Patents                                              8000

Z’s Loan                                  2150                     Plant &Machinery (50000-5000)   45000

X’s Current a/c                        5600

Capital a/c

X: 60,000

Y: 40,000                                1, 00,000

                                                1, 30,900                                                                   1, 30,900

 

Z’s Loan Account

Date    Particulars                 Amount          Date                Particulars                 amount

2001

March31 To Bal c/d                2150                March 31         By Z’s Cap a/c            2150   

Sept 30     “Bank (1075+53.75) 1128.75        April               “Bal B/d                      2150

            “Bal c/d                           1075.00       September       “Intt@5 %( 6Months) 53.75

                                                     2203.75                                                                  2203.75

 

March 31         To Bank a/c         1101.88       Oct 31                        By Bal b/d                   1075.00          

                                                                                                “ Intt@5%                       26.88

                                                    1101.88                                                                   1101.88

 

 

Case study 2

Qus.1.Anil sent on 1st July,2006 to Rahul goods costing Rs.50,000 and spent Rs.1,000 on packing etc. On 3rd July 2006, Rahul received the goods and sent his acceptance to Anil for Rs.30,000 payable at 3 months. Rahul spent Rs.2,000 on freight  and cartage,Rs 500 on godown rent and Rs.300 on insurance. On 31st December, 2006 he sent his Account Sales (along with the amount due to)Showing that 4/5 of the goods had been sold for Rs.55,000.Rahul is entitled to a commission of 10%.One of the customers turned insolvent and could not pay Rs.600 due from him. Show the necessary ledger accounts

Ans.1.

   

CONSIGNMENT ACCOUNT

   
             

2006

Particulars

Rs.

2006

Particulars

Rs.

 

1-Jul

To Goods sent on Consignment A/c

50,000

Dec.31

By Rahul- sale Proceeds

55,000

 

2-Jul

To Bank A/c (expenses)

1,000

 

By Stock on Consignment A/c

10,600

 

31-Dec

To Rahul- Expenses& Bad Debts

3,400

       

31-Dec

To Rahul- Commission

5,500

       

31-Dec

To P&L A/c -Transfer of Profit

5,700

       
   

65,600

   

65,600

 
             
             
             
 

GOODS SENT ON CONSIGNMENT ACCOUNT

   
             

2006

Particulars

Rs.

2006

Particulars

Rs.

 

31-Dec

To Trading A/c

50,000

1-Jul

By Consignment to Rahul a/c

50,000

 
   

50,000

   

50,000

 
             
             
 

STOCK ON CONSIGNMENT ACCOUNT

     
             

2006

Particulars

Rs.

2006

Particulars

Rs.

 

31-Dec

To Consignment A/c

10,600

31-Dec

By Balance c/d

10,600

 
   

10,600

   

10,600

 

2007

           

1-Jan

To Balance b/d

10,600

       
             
             
             
             
 

 

RAHUL´S ACCOUNT

&nbs

Review

Average user rating

4.8 / 5

Rating breakdown

5
80% Complete (danger)
1
4
80% Complete (danger)
1
3
80% Complete (danger)
0
2
80% Complete (danger)
0
1
80% Complete (danger)
0

January 29, 2015
This was nice in buy
Assignment from solve zone is probably one of the first preference of students.

October 09, 2016
This was nice in buy
I recommend a website that was really helpful throughout your session.

March 19, 2017
Some day ago
This was nice in buy
This was good in buy . I found all the answer correct and meaningful and had scored good marks