Corporate Accounts 1 PDF
Document Details
2017
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Summary
This document appears to be a set of financial accounts for a company or partnership. It details a trial balance, including purchases, sales, and various expenses. There appears to be information like stock and bad debts.
Full Transcript
74 Financial Accounting (S. Y.B.A.F. : SEM, 1111 Illustration 32 : (Admitted on 1st Day of F.Y.) Prajakta and Manasvi were in partnership busme~s s~~rin...
74 Financial Accounting (S. Y.B.A.F. : SEM, 1111 Illustration 32 : (Admitted on 1st Day of F.Y.) Prajakta and Manasvi were in partnership busme~s s~~ring profit in the ratio of_ 3/5 ~nd_2/5. On 1 April 2016 they admitted R1shika into partnership giving her 1/6 of the profits. R1sh1ka broug~ t 2,00,000 in cash of which t 75,000 were considered as payment for goodwill and balance as he; capital. The following Trial Balance was extracted from books as on 31st March 2017. Debit Balance ( Credit Balance r Purchases 3,14,325 Sales 5,35,80Q Discount Allowed 4,300 Discount Received 5,375 Sundry Debtors 1,00,500 ROD 3,ooo Stock (1-4-2016) 1,07,050 Sundry Creditors 81 ,350 Carriage Inward 8,125 Capital Ale : Miscellaneous Expenses 19,600 - Prajakta 1,62,S0Q Motor Vehicle 1,25,000 - Manasvi 87,500 Land and Building 2,00,000 Cash paid by Rishika Cash at Bank 12,600 on 1st April 2016 2,00,000 Telephone Expenses 8,1 00 Bank Overdraft Printing and Stationery 17,300 6,725 Rent and Insurance 8,000 Bad Debts 1,000 Investments 1,50,000 Drawings : Prajakta 12,500 Manasvi 10,000 Rishika 5,000 10,92,825 10,92,825 Additional Information : - 1. Stock on 31st March, 2017 wast 1,05,625. 2. Bad Debts t 3,000. 3. Depreciation to be charge on : Land and Building - 5% Motor Vehicle - 20% 4. RDD to be maintained at 10% on Sundry Debtors. 5. Goods to the value of~ 2,500 have been lost by theft. You are required to prepare : 1. Trading and Profit and Loss Account for the year ended 31st March, 2017. 2. Balance Sheet as on that date. (S. Y.B.Com., March 2018, adapted) Solutio n: Dr. Trading Account for the year ended 31-03-2017 Cr. Particulars r ParticUlars f' To Opening Stock 1,07,050 By Sales 5,35,800 To Purchases 3,14,325 By Goods Lost by Theft 2,500 To Carriage Inward 8,125 By Closing Stock 1,05,625 To Gross Profit (Balancing) 2,14,425 6,43,925 6,43,925 Dr. Profit and Loss Account for the year ended 30-03-2017 Cr. Particulars r Particulars r To Discount Allowed 4,300 By Gross Profit 2,14,425 To Misc. Expenses 19,600 By Discount Received 5,375 To Telephone Expenses 8,100 To Printing and Stationery 6,725 To Rent and Insurance 8,000 To Bad Debts (0) 1,000 Add: Bad Debts (N) 3,000 /lip Final Account." 75 parfl,ers. RDD (N) 9,750 Add~· RDD (0) ~.ooo 10,750 t,es · recic1tIon on fo oeP d & Bu1lcting 10,000 ! fO~~~:ds l-flnrccintIon on Motor Vehicle Lost by Theft. f'1 l p,otrt (Bnloncing)· 25,000 :?,500 , wNe I 62,413 , p,,11rtkt.l ~1,lfl;'lSVI 41,608 Risl11kn 20,804 2, 19,800 2,19,800 Partners Capital Account Cr. pr. parflcLllars Prajakt Manasv, Rishika Particulars Prajakta Manasv, Rishika r r r r r r To Drawings 12,500 10,000 5,000 By Balance b/d 1,62,500 87,500 To Balance c/d 2,57,413 1,49,1 08 ,40 ,804 By Cash - ,25,000 By Goodwill 45,000 By Net Profit 62,41 3 20,804 2,69,913 1,59,108 ,45,804 2,69,913 --- ,45,804 Balance Sheet as on 31 -03-2017 Liabilities Assets Capital A/c: Debtors 1,00,500. Prajakta 2 ,57,413 Less: Bad.Debts 3,000. Manasvi 1,49,108 Balance 97,500. R1shika 1,40,804 5,47,325 Less: ROD 9,750 87,750 Sundry Creditors 81,350 Motor Vehicle 1,25,000 Bank Overdraft 17,300 Less: depreciation 25,000 1,00,000 Land & Building 2,00,000 Less: Depreciation 10,000 1,90.00 0 Cash at Bank 12,600 Investments 1,50,000 Closing Stock 1,05,625 6,45,975 6 ,45,975 Illustration 33 : (Basic FA).. From the following trial balance of Dharmendra and Hema, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as on that date after adjustments given below : Trial Balance as on 31st March 2018 Particulars ~ Particulars Stock (1-4-2017) 1,05,000 Sales 9,90,000 27,600 Discount 14,400 Salaries and Wages Cash 30,000 Creditors 60,000 Purchases 6,75,600 Bank Overdraft 30,000 25,800 Interest on Investments 21,600 Sunctry Expenses P~Oductive Wages 42,000 Capital Account : 24,000 Dharmendra 1,80,000 Bills Receivable 9 ,000 Hema 1,20,000 law Charges Bad Debts 3,000 ~rks _Expenses 18,000 mrn,ssion 9,000 1 ~vestments 6 0,000 ebtors 1,20,000 Trade Mark 24,000 Financial Accounting (S. Y.B.A.F.: SEM.JJJJ 76 18,000 Tools and Equipment 36,000 Furniture 39,000 Goodwill 1,50,000 Building 14, 16,000 Adjustments : 1. The closing stock t 1,20,000 2 Depreciate Building at 10% pa. and Furniture at 10% p.a 3 Unpaid Salaries and Wages t 2,400 and Printing bill~ 3,600 4. Uninsured goods worth t 30,000 were lost by fire. 5 Partners share profits and losses in their capital ratio. (S. Y.B.Com., Nov. 2018, adaptecJJ Solution : Trading Account for the year ended 31st March 2018 Particulars r Particulars 1,05,000 By Sales 9,90,00Q To Opening Stock 1,20,000 6,75,600 By Closing Stock To Purchases 30,000 42,000 By Goods Lost by Fire To Productive Wages 18,000 To Works Expenses To Gross Profit 2,99,400 11,40,000 11,40,000 Profit and Loss Account for the year ended 31st March 2018 Particulars Particulars r To Salaries and Wages 27,600 By Gross Profit 2,99,400 Add : Outstanding 2 40( 30,000 By Discount 14,400 To Sundry Expenses 25,800 By Interest on Investment 21 ,600 To Law Charges 9,000 To Bad Debts 3,000 To Commission 9,000 To Depreciation on Building 15,000 To Depreciation on Furniture 3,600 To Printing Bills 3,600 To Goods Lost by Fire 30,000 To Net Profit : Dharmendra 1,23,840 Hema 82.560 2,06,400 3,35,400 3,35,400 Balance Sheet as on 31st March, 201a Llsbl/ltles '. j.;:;· r r -1 Capital Account : Goodwill 39,000 Dharmendra 1,80,000 Building 1,50,000 Add : Net Profit 1.23.840 3,03,840 Less : Depr. @ 10% 15.000 1,35,000 Hema 1,20,000 Furniture 36,000 Add : Net Profit Bank Overdraft 82.560 2,02,560 Less : Depr. @ 10% 30,000 Tools and Equipment 3.600 32,400 18,000 I Outstanding Salaries Trademark 24,000 and Wages. 2,400 Investments 60,000 Outstanding Printing Bill 3,600 Closing Stock 1,20,000 Creditors 60,000 Debtors 1,20,000 Bills Receivable 24,000 Cash 30,000 6,02,400 6,02,400 artnenltip Final Accnun ,1 71 12. LATEST S. Y.B.COM U XAMQU iustratio n 30 : (Admitted During F y) nshn:1 was carrying on bu 15, March every year Ar1u o 6 and from 1 n e p'OI t and to h i..:s of the fl l ng ri 18 Inc. Ith I Acoount ?0000 · I 'I, J 2,HHX'JO I ,tJ f/;(J nd Cred tors 16,W,"? "firnng Stock To Purchases To W,1ges... \ 3,000 17,500 1,750 r -t- 3,000 By Sales (3 : ~) 17,500 By Closing Stock 1,750 f 42,000 3,000 {' 28,000 2,500 To carriage Inwards 750 750 To Gross Profit c/d 22,000 7,500 45,000 30,500 45,000 30 500 To Office & Admn. Expense~ 4,500 5,500 By Gross Profit bid 22,000 7,500 To Selling & Dist. Expenses By Net Loss c/d - 1,000 (3 2) 3,000 2,000 To Depreciation : Building 500 500 Machinery 500 500 To Net Profit c/d 13,500 - 22,000 8,500 22,000 8,500 To Net Loss bid - 1,000 By Net Profit bi d 13,500 - To Interest on Capital By Net Loss after 1-7: A (10°-o on 30,000) 1,500 1,500 A : 214 of 4,000 - 2,000 B (10°0 on 20,000) 1,000 1,000. B: 1/4 of 4,000 - 1,000 C (10°-o on 10,000 x 1/2) - 500 C : 1/4 of 4,000 - 1,000 To Net Profit upto 30-6: A: 3/5 of 11,000 6,600 - B : 2/5 of 11,000 4,400 - 13,500 4,000 13,500 4,000 Dr. Partners' Capital Accounts Cr. Particulars A B 'C Particulars A B C (' ~ (' _;, (' ~ ~ To Net Loss after 1-7 2,000 1,000 1,000 By Balance b/d 30,000 20,000 10,000 To Drawings 3,000 -2,000 1,000 By Goodwill [WN 5] 960 1,440 - To Balance c/d 35,560 24,840 8,500 By Interest 3,000 2,000 500 By Net Profit upto 30-6 6,600 4,400 - 40,560 27,840 10,500 40,560 27,840 10,500 Balance Sheet As At 31-12-2013 Liabilities ~ Assets. ~ ~ Building 20,000 Capital Accounts : 19,000 35,560 Less : Depreciation 1,00Q -A 24,840 Machinery 10,000 -B Less : Depreciatio n 1,000 9,000 -c 8,500 5,000 Creditors 31 ,000 Furniture Closing Stock 2,500 Debtors 30,000 Advance 16,000 Bank 8.000 Cash (bid 8,000 + Goodwill 2,400) 10,400 99,900 99,900 -....~. ,;7-m) e tors -C t 15,000 A'S Loan Ac??_un 54,850 Cash in hand 500 sundry Liab1htIes 17,000 Cash at Bank 10,000 1,04,000 1,04,000 working Note: Deferred Revenue Expenses of~ 6,500 are written off in the ratio of capitals i.e. 1o : 2 : 1. ~ ~ mustration 24 : (Goodwll Raised & R~talned) The following is the Trial Balance of a firm as on 31st December, 2 013 : -oeb1t r Credit , · ::1f;(C ;_ #: r purchases 1,56,000 Capital Account Return Inward 2,400 -A 30,000 Stock 24,000 - 8 30,000 Drawings.- C 30,000 -A 12,000 Sales 2,94,000.B 12,000 Return outward 2,000 -C 12,000 R.D.D. 8,800 Salary 27,000 Bank Loan 20,000 Office Expenses 16,500 Creditors 76,500 Bad Debts 2,100 Bills Payable 8,700 Carnage Inward 4,500 Carnage Outward 6,750 Debtors 1,00,000 BIi s Receivables 3,250 Bank Balance 8,000 Cash Balance 2,500 ~.-:-.-- 60 Financial Accounting (S. Y.B.A.F.: SEM-JJJ Investments 25,000 Premises Machinery J 50,000 36,000 5,00,000 On 1st Jul\ "013 A' 1etned and 11\(1 following ndIustments were agreed upon : (a) Goodwill of, 90 000 was L11ouqht into the books of accounts (l1) Fui niture worth, ?0,000 wns purcl1nsed on 31 3 2013 but the invoice was not recorded in lhe bool II 11 1 roont of purchnao con //,n/i,d t;, , I°','. 01110 nQ" " IIV to onch pnrtnnr,.~;/~rntlon tho co "'''"">' 1 1119 20 J85 o,if ,u vo 1nformntlon pre n ho romotnln mpAny hoo ,~ ,, ,,,r ' 0,., Acrounl p ro In tho booke a, ornount In cn~h ,ooo Eq11111 ohnreD of, 1O ~ w11li"'1111 0 tho firm ,f , (.npitnl Arc:ount 1,1111111 1 1 ~, I., , /1,i 1 01111I 1! '· c:0111JlMW,o Account 1 NPW ' Calcul (8. Y.8,Com.. M tch 2011, ad.,,todl ii. e11ll'1100 · atlon ofPurche ~=============~~ ~ ~C:o~n~ ~ld~ :r~at~lo~"'.,__________ ,-rlirvf,~r'S;:...-----------===========I=r::= ~ ' ,...,0w1II t 40000 ,1l" '....... ,........ 1,50,000 ~111di119............. 25,000 119c111nel'Y............... 25,000 F11rnitL1re ~.............. 20,000 invesm1enl............... 70,000 35,000 oebtors............... 51oek................ 3 ,65,000 1Assets 1018 Less: Uebilltles............... 7,000 50,000 RDD 60,000 sank Loan (1 , 17,000) creditors Total Liebllltles............... 2,48,000 PUrchase Consideration To be settled t 2,00,000 by Equity Shares and Balance t 48,000 In Cash.) In the Book& of Firm. er. Reallsatlon Account Or. r Pa,ti(JIJlatS Particulars ,, To sundry Liabilities 50,000 To Sundry Assets Bank Loan 60.000 1,20.000 Creditors 2,48,000 Building 20,000 To New Company (PC) Machinery 25,000 Furniture 1'5,000 Investment 10,000 Debtors ~5,000. Stock To R~alisation Profit 29,200 3,58,000 Fido ~ 73,0~ Dido 3,58,000 Cr. partner ' capltal Account Fida Okie ~ t Particulars F/dO 1,00.000 1,00,000 r BY Balance bid 4,000 6.000 BY profit end LOSS t:,lc 29,200 43,800 l'o E oo ooo BY Realisation Proftt Nqutty Shares in 1 1,00,000 1,33,200 1,49,800 lo Cew Company A/c '33'.200 ~ ash ~ 1,49,800 286 Financial Accounting (S. Y.B.A.R: SEM-JJJ) Dr. Cash-Bank Account Cr. f'.srticulars 1 I :1 : 1 l llil1t.ll: 1 : ::::!1IJ:::::;:::i: Jr; : To Balance 35,000 By Fido Capital Ale 33,200 To New Company 48,000 By Dido Capital Ne 49,800 83,000 83,00Q Or. New Company Account Cr. 'o Realisation (PC) 2,48,000 By Equity Shares in New Company 2,00,000 By Cash 48,000 2,48,000 2,48,000 Dr. Equity Shar&s in New Company Account Cr. Particulars !i i;ill l l l.ll l l l !!lil l~l;11!l :l l!l il !l 1l / il !i:i 1 11 ,·.·.'I '':,· · :.,;.,. :::t,"}'.·· \ t To New Company Ale 2,00,000 By Fido Capital Ale 1,00,000 By Dido Capital Ale 1,00,000 2,00,000 2,00,000......... verdraft 1,04,000 (B) 2, 10,000 (A-B) Purchase Consider ation Illustration 16 : (Van T/0 for Loan) th8 Arjun. Nakul and Shim are partners of Bright Brothers. They share profits and losses in ratio 0 5 : 4 : 3 On January 1 , 2006, their balance sheet was as under : r Uabllltie $ 75,00C Capital Accounts : Building 6O,00C Aqun 75,000 Plant and Machiner y Delivery Van 18,00C Nakul 60,000 50.000 1,85,000 Investme nts 26,00C Shim 30,000 Stock 21 ,0CC Nakul's Loan Creditors 20,000 S.undry Debtors 3O~00C Bills Payable 10,000 Cash 15 00 2,45,000 On the above date, a private company was incorpora ted to take over the above firm on the basis the following terms and condition s : a All assets (except delivery van) and all liabilities (excludin g Nakul's loan) were taken over by company at their book values except the following : Buildings : f 98,000; Machiner y : f 56,000 (b) Goodwill of the firm is to be valued at f 42,000. (c} Detivery van was taken over by Nakul at an agreed valuation of~ 15,000 as part paymen 0 loan and tor the balance, he is given 10% Preferenc e shares of ~ 1O each of the compan the purchase considera tion received from the company. , ,, ;0 ,, I Sale of a Partne~ h. i1"1f 5. a L' s ip Firm into I:~ e balance pure hase cons· equity shares of~ 1 eac~deration was dlschar ,< o cessary ledger acco unts in. the bo mited Co mpany 267 ged by the new company by issuing fully paid 111tiOfl : oks of the firm. Calculation of P ~~;;~========ur~c~h~a ~ _.1,,,1,,rs ;sets 7: ~C~~~~~-------- ~Taken; -".;o;v;e;r -------.....:============]=]= onstderatlon ,,d,"11 f 42,000.11\ding............... 98,000 1.1c1,iner\............... 56,000 \'estrnents............... 26,000 tock............... 21,000 ebtors............... 30,000............... 15,000.asl1 2,88,000 (A) - ess : Liabilities Taken over :............... 20,000.reditors................ 10,000 ills Payable 30,000. (B) (A-B) 2,58,000 urchase Consideration In the Books of Bright Brothers Cr. Realisation Account Dr. r iJ)}is ·"' 20,000 Particulars 75,000 By Creditors 10,000 To Building 60,000 By Bills Payable To Plant and Machinery By New Company's Ale : 2,58,000 26,000 Purchase Consideration To Investments 21,000 To Stock 30,000 To Sundry Debtors 15,000 To Cash ·3,000 To Loss on Van To Profit on Realisation : 24,167 Arjun 19,333 Nakul 14,502 58,000 2,88,000 Bhim - 2,88,000 Cr. partner's capital Account Stum Af}un Nakul Partiel.llars r r Nakul Shim t Arjun t Particulars r 75,000 60,000 50,000 r By Balance bid 24,167 19,333 14,500 -To Equity Shares in 79,333 64,500 By Realisation Ale (Profit) 64,500 New Company 99,167 99,167 79,333 64,500 Cr. 79,333 99,167 n Account oenverY Va - f Psrt1ouJars r 15,000 ,oo0 BY Nakul LoM 3,000 18 By Realisation (LOSS tfd.) 18,000 I :,., -,a,000..-..vc>::,-f-ri it.-1-,..i ~J !,µ L 1