Friday, July 28, 2017

Jain and Narang's Book - Final Account Practical Problems Solutions (Part - 2)


23.
Trading and Profit & Loss A/c
For the year ended on 31st March, 2014
Particulars
Amount
Particulars
Amount
To Opening Stock
To Purchase
To Wages & Salaries                   2,29,000
Add: Unpaid                                       1,600

To Gross Profit c/d
2,40,000
24,00,000

2,30,600

5,69,400
By Sales
By Closing Stock
31,60,000
2,80,000

34,40,000

34,40,000
To Depreciation on Motor Vehicles
To Provision for b/d
To Printing & Stationary               6,600
Less: Stock in hand                      (2,200)

To Bad debts
To Repairs to Premises               47,600
Less: Capital                                (20,000)

To Motor & Delivery Expenses
To Administration Expenses
To Rates & Taxes                         15,000
Less: Advance                               (3,000)

To Net Profit
74,000
3,500

4,400

11,400

27,600

99,000
1,31,400

12,000

2,16,000
By Gross Profit b/d
By creditors claim
By Provision for b/d
5,69,400
4,900
5,000

5,79,300

5,79,300

Balance Sheet
As on 31st March, 2014
Liabilities
Amount
Assets
Amount
Capital                                           10,00,000
Less: Personal Debt                            1,000
  9,99,000
Less: Proprietor’s
Remuneration                                   20,000
  9,79,000
Less: Drawings                                1,00,000

General Reserve
Unpaid Wages
Creditors                                          2,32,000
Less: Claim for damage                      4,900
(20,000 – 15,100)   

Last year P/L                                  1,24,000
Add: Net Profit                              2,16,000






8,79,000

2,00,000
1,600

2,27,100



3,40,000
Balances at Bank

Motor Vehicles                       1,48,000
Less: Depreciation                    (74,000)

Debtors                                      2,96,000
Less: Provision for b/d                 (3,500)

Stock of Stationary in hand
Freehold Premises                    8,00,000
Add: Repairs to Premises
for capital structure                     20,000

Rates paid in advance
Closing Stock
1,76,000


74,000


2,92,500

2,200


8,20,000

3,000
2,80,000

16,47,700

16,47,700
24.
Trading and Profit & Loss A/c
For the year ended on 31st Dec, 2013
Particulars
Amount
Particulars
Amount
To Opening Stock
To Purchase                                    1,50,000
Less: Return                                       (5,000)
1,45,000
Less: Drawings                                     6,000

To Wages
To Gross Profit c/d
50,000



1,39,000

20,000
1,62,000
By Sales                                     3,21,000
Less: Return                               (10,000)

By Closing Stock

3,11,000

60,000

3,71,000

3,71,000
To Depreciation on Furniture
To Provision for b/d
To Salaries                                     30,000
Add: Unpaid                                    3,000

To Rent
To Bad debts written off
To Printing & Stationary

To Insurance                                 12,000
Less: Prepaid                                 (2,000)

To Office Expenses                      12,000
Add: Outstanding                          8,000

To Net Profit
2,000
10,000

33,000

15,000
7,000
8,000


10,000


20,000

69,000
By Gross Profit b/d
By Interest earned
By Provision for b/d
By Provision for depreciation
1,62,000
4,000
6,000
2,000

1,74,000

1,74,000

Balance Sheet
As on 31st March, 2014
Liabilities
Amount
Assets
Amount
Capital                                             1,00,000
Less: Drawings
(24,000 + 6,000)                        (30,000)
     70,000
Add: Net Profit                                  69,000

Creditors
Outstanding office expenses
Unpaid Salary




1,39,000

1,20,000
8,000
3,000
Furniture                                         20,000
Less: Depreciation @ 10%           (2,000)

Debtors                                            2,00,000
Less: Provision for d/d @ 5%        (10,000)

Prepaid Insurance
Closing Stock

18,000


1,90,000

2,000
60,000

2,70,000

2,70,000

25.
Trading and Profit & Loss A/c
For the year ended on 31st March, 2014
Particulars
Amount
Particulars
Amount
To Opening Stock
To Purchase                                    80,000
Less: Return                                    (2,820)

To Wages
To Carriage in ward
To Gross Profit c/d
11,460

77,180

6,280
2,310
53,190
By Sales                                     1,40,370
Less: Return                                 (4,240)

By Closing Stock

1,36,130

14,290

1,50,420

1,50,420
To Interest on capital
To Bad debts
To Rates & Insurance                    1,300
Less: Unexpired                               (240)

To Depreciation on old building
To Railway freight & other expenses on goods sold
To Office expenses
To Printing & Stationary
To Postage & Telegram
To Further Bad debts
To Provision for b/d
To Depreciation on Furniture
To Salary & Commission              9,870
Add: Outstanding                             500

To Depreciation on New Building
To Net Profit
5,000
1,400

1,060

625

16,940
1,340
660
820
570
3,690
175

10,440

140
16,060
By Gross Profit b/d
By Bad debts provision
By Discount
By Rent                                    2,100
Add: Receivable                        200
53,190
3,240
190

2,300

58,920

58,920

Balance Sheet
As on 31st March, 2014
Liabilities
Amount
Assets
Amount
Capital                                             1,00,000
Add: Interest @ 5%                            5,000
1,05,000
Less: Drawing                                   (17,600)
     87,400
Add: Net Profit                                  16,060

Creditors
Outstanding Salary





1,03,460

18,920
570
Unexpired Insurance
Bills Receivable

Building                                           25,000
Less: Depreciation @ 2.5%              (625)

Rent Receivable

Sundry Debtors                             62,070
Less: B/d                                             (570)
61,500
Less: Provision for b/d                   (3,690)

Cash at Bank
Cash in hand
Office Furniture                                 3,500
Less: Depreciation @ 5%                   (175)

Additions to Building                        7,000
Less: Depreciation @ 2%                   (140)

Closing Stock
240
1,240


24,375

200




57,810

12,400
2,210

3,325


6,860

14,290

1,22,950

1,22,950

31.
Trading and Profit & Loss A/c
For the year ended on 31st March, 2014
Particulars
Amount
Particulars
Amount
To Opening Stock
To Purchase                                    6,64,580
Less: Return                                     (13,460)

To Carriage in ward
To Gross Profit c/d
68,390

6,51,120

29,290
3,36,920
By Sales                                     11,02,430
Less: Goods sent to sale
or return basis                                (6,000)
10,96,430
Less: Return                                  (78,210)

By Closing Stock
(62,500 + 500)




10,18,220

67,500

10,85,720

10,85,720
To Provision for b/d
To Interest on loan                         3,000
Add: Interest
(3,000 x 6% x 6/12)                   2,850

To Depreciation on Land & Building
To Bad debts
To Carriage Outward
To Salaries                                   90,970
Add: Outstanding                         7,500

To Rates, Taxes, Insurance        28,910
Add: Outstanding Rates               3,500
32,410
Less: Prepaid                                  1,500

To Advertising
To General Expenses
To Depreciation on motor vehicles
To Manager’s commission
To Net Profit
9,750


5,850

2,400
5,250
24,040

98,470




30,910

32,640
34,890
20,000
7,975
79,745
By Gross Profit b/d
By Discount
By Rent Received
By Bad debt reserve
3,36,920
5,400
2,500
7,100

3,51,920

3,51,920

Balance Sheet
As on 31st March, 2014
Liabilities
Amount
Assets
Amount
Capital                                     2,80,000
Less: Drawings                        (30,000)
2,50,000
Add: Net Profit                          79,745

Sundry Creditors
Loan to Mortgage                     92,640
Add: Interest on loan                 2,450

Bills Payable
Outstanding Salaries
Outstanding Rates



3,29,745

1,04,010

95,090

26,140
7,500
3,500
Cash at Bank
Land & Building                           1,20,000
Less: Depreciation @ 2%               (2,400)

Prepaid Insurance
Cash in hand
Motor Vehicles                            1,00,000
Less: Depreciation @ 20%           (20,000)

Bills Receivable
Sundry Debtors                            2,01,000
Less: Sale or return                           6,000
1,95,000
Less: Provision                                   9,750

Closing Stock
35,550

1,17,600

1,500
20,500

80,000

68,820



1,85,250

67,500

5,65,985

5,76,720
33.
Trading and Profit & Loss A/c
For the year ended on 31st March, 2014
Particulars
Amount
Particulars
Amount
To Opening Stock
To Purchase                                    1,21,550
Less: Return                                       (2,900)
1,18,650
Less: Furniture Purchased               (1,000)

To Carriage in ward
To Gross Profit c/d
23,400



1,17,650

9,300
27,950
By Sales                                     1,44,800
Less: Return                                 (4,300)
1,40,500
Less: Sales or return                    (1,500)
By Closing Stock



1,39,000
39,300

1,78,300

1,78,300
To Rent
To Salaries
To Provision for d/d
To Printing & Stationary
To Advertisement
To Discount allowed
To Depreciation on Furniture
To General Expenses
To Audit Fees
To Fire Insurance Premium
To Travelling Expenses
To Postage & Telegram
To Interest on loan                      450
Add: Interest due                         300

To Net Profit
2,850
4,650
475
1,700
5,600
3,770
115
1,960
350
300
1,165
435

750

7,050
By Gross Profit b/d
By Discount Received
By Interest Received                        725
Add: Accrued                                 1,000
27,950
1,495

1,725

31,170

31,170

Balance Sheet
As on 31st March, 2014
Liabilities
Amount
Assets
Amount
Capital                                     54,050
Less: Drawings                          (500)
49,050
Add: Net Profit                         7,050

Sundry Creditors                      7,400
Less: Mutual owing                (1,000)
Loan from Dena Bank            10,000
Add: due                                        300



56,100


6,400


10,300
Deposit 10%
Sundry Debtors                          12,000
Less: Sale or Return                   (1,500)
10,500
Less: Provision for d/d @ 5%         475

Investments
Cash with Traders Bank Ltd.

Furniture                                                900
Add: New Furniture Purchased      1,000
1,900
Less: Depreciation                              (115)

Cash in hand
Interest Accrued
Closing Stock
15,000



9,025

2,500
4,000




1,785

190
1,000
39,300

72,800

72,800

34.
Trading and Profit & Loss A/c
For the year ended on 31st December, 2013
Particulars
Amount
Particulars
Amount
To Opening Stock
To Purchase
To Carriage on Purchase
To Wages                                       13,500
Add: Unpaid                                    2,100
To Gross Profit c/d
36,000
77,000
1,200

15,600
80,574
By Sales
By Closing Stock
1,59,050
51,324

2,10,374

2,10,374
To Write off on Debtors
To Provision for bad and doubtful debts
To Salary                                     9,900
Add: Unpaid                               1,600

To Telephone Expenses
To Repairs
To Depreciation on plant
To Depreciation on Furniture
To Sundry Expenses
To Unpaid Rent
To Manager’s commission
(58,880 x 4/104)

To Net Profit
400
690

11,500

900
1,300
5,000
720
900
4,200
2,265


56,615
By Gross Profit b/d
By Misc. Incomes
By Commission
By Provision for bad and doubtful debts
80,574
566
2,500
850

84,490

84,490

Balance Sheet
As on 31st December, 2013
Liabilities
Amount
Assets
Amount
Capital                                     80,000
Add: Net Profit                       56,615

Sundry Creditors
Unpaid Wages
Unpaid Salary
Unpaid Rent
Bills Payable
Manager’s commission

1,36,615

11,000
2,100
1,600
4,200
6,500
2,265
Sundry Debtors                              28,000
Less: Write off                                   (400)
27,600
Less: Provision for b/d                     (690)

Bills Receivable
Plant                                                  50,000
Less: Depreciation @ 10%              (5,000)

Furniture                                            9,600
Less: Depreciation @ 7.5%               (720)

Cash in hand and at Bank
Closing Stock



26,910

16,000

45,000


8,880

16,166
51,324

1,64,280

1,64,280

36.
Trading and Profit & Loss A/c
For the year ended on 31st March, 2014
Particulars
Amount
Particulars
Amount
To Opening Stock
To Purchase                               1,10,000
Less: Return                                   (1,100)

To Wages                                       35,200
Less: Installation
Constructions                                  1,100

To Gas & Fuel
To Freight
To Factory Lighting
To Gross Profit c/d
38,500

1,08,900



34,100

2,970
9,900
1,100
1,08,530
By Sales
By Closing Stock
2,31,400
72,600

3,04,000

3,04,000
To Depreciation on Plant & Machinery
To Depreciation on freehold
To Salaries
To Office Expenses
To Depreciation on Office furniture
To Discount
To Postage & telegram
To Insurance
To Office Rent
To Bad debts (660 + 660)
To Provision for b/d
To Depreciation on lose tools
To Manager’s commission

To Net Profit
38,500
3,300
13,200
2,750
550
1,320
1,540
1,760
2,860
1,320
1,430
440
4,076

40,764
By Gross Profit b/d
By Provision for doubtful debts
By Interest on loan to Shri Krishna   1,100
Add: Interest Due               3,300
1,08,530
880

4,400

1,13,810

1,13,810

Balance Sheet
As on 31st March, 2014
Liabilities
Amount
Assets
Amount
Capital                                     2,28,800
Less: Drawings                         (13,200)
2,15,600
Add: Net Profit                          40,764

Bills Payable
Sundry Creditors
Creditors for Machinery
Manager’s commission due



2,56,364

5,500
44,000
15,400
4,076
Plant & Machinery                      99,000
Add: New Machinery                  15,400
1,14,400
Add: Auction of Machinery         1,100
1,15,500
Less: Depreciation @ (38,500)

Freehold Property                       66,000
Less: Depreciation @ 5%              3,300
Office Furniture                              5,500
Less: Depreciation @ 10%                550

Cash at Bank
Loss Tools                                         2,200
Less: Depreciation on L/T                  440

Cash in hand
Sundry Debtors                              29,260
Less: B/d                                             (660)
28,600
Less: Provision for b/d                     1,430

Loans to Krishna @ 10%
Interest due
Closing Stock






77,000


62,700

4,950

29,260

1,760

2,600



27,170

44,000
3,300
72,600

3,25,340

3,25,340
46.
Trading and Profit & Loss A/c
For the year ended on 31st March, 2014
Particulars
Amount
Particulars
Amount
To Opening Stock
To Purchase                               85,000
Less: Return                                (2,500)

To Wages
To Carriage Inward
To Gross Profit c/d
16,000

82,500

14,000
5,800
52,700
By Sales                                    1,60,000
Less: Return                                 (1,500)

By Closing Stock

1,58,500

12,500

1,71,000

1,71,000
To Depreciation on Plant & Machinery
To Depreciation on Furniture
To Provision for doubtful debts
To Rent
To Postage & telegram
To Write of Advertisement
To Telephone charges
To Salaries
To Printing and Stationary
To commission
To Travelling Expenses
To Depreciation on Motor Vehicles

To Net Profit (Before appropriation)
4,000
250
2,025
3,750
500
1,800
500
12,250
750
5,000
2,000
4,170

15,705
By Gross Profit b/d
52,700

52,700

52,700

P/L Appropriation A/c
Particulars
Amount
Particulars
Amount
To Interest on Capital
A = 65,000 x 5%
B = 40,000 x 5%

To Partner’s Salary
B = 1,800 x 1

To Share of Profit
A = 9,005 x 3/5
B = 9,005 x 2/5

3,250
2,000


1,800


5,403
3,602
By Net Profit
By Interest on drawings
A = 4,000 x 5% x 1
B = 3,000 x 5% x 1
15,705

200
150

16,055

16,055


Partner’s Capital A/c
Particulars
A
B
Particulars
A
B
To Partner’s Drawings A/c
To Interest on Drawings
To Balance c/d
4,000
200
69,453
3,000
150
44,252
By Balance b/d
By Interest on Capital
By Share of Profit
By Partner’s Salary
65,000
3,250
5,403
-
40,000
2,000
3,602
1,800

73,653
47,402

73,653
47,402

Balance Sheet
As on 31st March, 2015
Liabilities
Amount
Assets
Amount
Sundry Creditors
Bills Payable
Capital of Partners
A = 69,453
B = 44,252
14,500
8,900


1,13,705
Goodwill
Plant & Machinery                        40,000
Less: Depreciation @ 10%           (4,000)

Office Furniture                               5,000
Less: Depreciation                            (250)

Sundry Debtors                               40,500
Less: Provision for d/d @ 5%        (2,025)

Advertisement
Cash in hand
Motor Vans                                       20,850
Less: Depreciation @ 20%              (4,170)

Closing Stock
10,000

36,000


4,750


38,475

7,200
11,500

16,680

12,500

1,37,105

1,37,105

48.
Trading and Profit & Loss A/c
For the year ended on 31st March, 2015
Particulars
Amount
Particulars
Amount
To Opening Stock
To Purchase
To Wages
To Gross Profit c/d
35,000
5,30,000
72,000
2,13,000
By Sales                                    8,00,000
Less: Return                               (10,000)

By Closing Stock

7,90,000

60,000

8,50,000

8,50,000
To Depreciation on Land & Building
To Depreciation on Plant & Machinery
To Depreciation on Furniture
To Salaries                             60,000
Add: Outstanding                   6,000

To Bad debts
To Provision for debtors
To Printing
To Rent & Taxes                    8,000
Less: Prepaid                           (500)

To Net Profit
2,750
3,950
2,400

66,000

10,000
5,800
20,000

7,500

96,900
By Gross Profit b/d
By Profit on Sale of Machinery
2,13,000
2,300

2,15,300

2,15,300

P/L Appropriation A/c
Particulars
Amount
Particulars
Amount
To Share of Profits
Ramesh = 96,900 x 1/2
Mohan = 96,900 x 1/2

48,450
48,450
By Net Profit
96,900

96,900

96,900

Partner’s Current A/c
Particulars
Ramesh
Mohan
Particulars
Ramesh
Mohan
To balance b/d
To balance c/d
12,000
36,450
6,000
42,450
By Share of Profit
48,450
48,450

48,450
48,450

48,450
48,450

Partner’s Capital A/c
Particulars
Ramesh
Mohan
Particulars
Ramesh
Mohan
To balance c/d
15,000
15,000
By balance b/d
15,000
15,000

15,000
15,000

15,000
15,000
Balance Sheet
As on 31st March, 2015
Liabilities
Amount
Assets
Amount
Capital of Partners
Ramesh = 15,000
Mohan   = 15,000

Current A/c
Ramesh = 36,450
Mohan =   42,450

Outstanding Salaries
Creditors


30,000



78,900

6,000
3,56,000
Debtors                                      3,00,000
Less: Bad debts                            10,000
2,90,000
Less: Provision                              (5,800)

Prepaid Rent
Cash at Bank

Furniture                                        25,000
Less: A.D                                         (1,000)
Less: Depreciation                        (2,400)

Land & Building                              60,000
Less: A.D                                           (5,000)
Less: Depreciation                          (2,750)

Machinery                                        45,000
Less: A.D                                            (6,000)
Less: Depreciation                           (3,950)

Closing Stock



2,84,200

500
17,300



21,600



52,250



35,050

60,000

4,70,900

4,70,900

49.

Trading and Profit & Loss A/c
For the year ended on 31st March, 2015
Particulars
Amount
Particulars
Amount
To Opening Stock
To Purchase                             1,15,000
Less: Return                                (3,000)
1,12,000
Less: Drawings                              (400)
To Carriage
To Wages
To Gross Profit c/d
7,000



1,11,600
1,000
3,000
75,400
By Sales                                    1,90,000
Less: Return                                (2,000)

By Closing Stock

1,88,000

10,000

1,98,000

1,98,000
To Provision for b/d
To Depreciation on L & other A
To Rent and Rates
To Depreciation on Furniture
To Interest on Bank loan
To Expenses of office                   6,700
Less: Prepaid                                     300
6,400
Less: B/d                                              300

To Bad debts
To Net Profit
400
14,300
4,001
600
800



6,100

300
49,849
By Gross Profit b/d
By Interest on Investment         300
Add: Accrued                                 150
(10,000 x 6/100 x 9/12)
By B/d provision
75,400

450

500

76,350

76,350

P/L Appropriation A/c
Particulars
Amount
Particulars
Amount
To Interest on Capital:
A = 90,000 x 5%
B = 60,000 x 5%

To Share of Profit:
A = 42,688 x 5/8
B = 42,688 x 3/8

4,500
3,000


26,680
16,008
By Net Profit
By Interest on Drawings:
A = 8,600 x 6% x 6/12
B = 5,400 x 6% x 3/12
49,849

258
81

50,188

50,188

Partner’s Capital A/c
Particulars
A
B
Particulars
A
B
To Drawings A/c
To Interest on Drawings
To Balance c/d
8,600
258
1,12,322
5,400
81
73,527
By Balance b/d
By Interest on capital
By Share of Profits
90,000
4,500
26,680
60,000
3,000
16,008

1,21,180
79,008

1,21,180
79,008

Balance Sheet
As on 31st March, 2015
Liabilities
Amount
Assets
Amount
Bills Payable
Creditors
Bank Loan

Capital of Partners
A = 1,12,322
B  =    73,528
1,85,849
Less: Drawings                     (400)


8,000
10,000
29,700





1,85,449
Cash at Bank
Bills Receivable

Debtors                                       8,000
Less: Provision for b/d @ 5%   (400)

Land & Other Assets           1,95,000
Less: Depreciation              (14,300)

Investment
Accrued interest on investment

Furniture                        6,000
Less: Depreciation @ 10%        ( 600)

Prepaid Office Expenses
Closing Stock
13,999
5,000


7,600


1,80,700

10,000
150


5,400

300
10,000

2,33,149

2,33,149

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