Unsolved Questions Unit 2 Part 2 PDF

Unsolved Questions – Unit II 1. Prepare Manufacturing, Trading and Profit and loss accounts for the year ended 31.12.2022 and Balance Sheet as at that date from the following balances extracted from the books of M/s Sen Manufacturing Co. Particulars...

Unsolved Questions – Unit II 1. Prepare Manufacturing, Trading and Profit and loss accounts for the year ended 31.12.2022 and Balance Sheet as at that date from the following balances extracted from the books of M/s Sen Manufacturing Co. Particulars Debit (Rs.) Credit (Rs.) Plant (1.1.2022) 50,000 Plant bought (1.7.2022) 5,000 Purchases 65,000 Packing and Transport 2,000 Rent, Rates and Taxes 3,000 Repairs to plant 1,500 Salaries-office 7,500 Advertising 1,700 Bad-debts 1,200 2,000 Provision for bad-debts Bank charges 200 75,000 Capital account 3,000 Current account Drawings 10,000 800 Discount Factory power 7,000 Furniture 1,800 General Expenses: Office 1,000 Factory 400 Insurance 1,800 Light and heat 900 1,62,200 Sales Stock on 1.1.2022 Raw material 10,000 Finished goods 14,000 Work in progress 3,000 Factory wages 40,000 Debtors 20,000 12,000 Creditors Cash in hand 500 Cash at bank 7,500 Total 2,55,000 2,55,000 Additional Information 1. Stock at 31.12.2021 1  Raw Materials 7,000 Work in Progress 3,500 Finished Goods 20,000 Packing Material 250 2. Following liabilities are to be provided: a. Factory Power: 1,000 b. Rent & Rates: 600 c. Lighting & Heating: 300 d. General Expenses: Factory: 50 Office: 100 e. Insurance Prepaid: 300 3. Provide depreciation @ 10%p.a on Plant and 5% p.a on Furniture. 4. Increase Provision for bad debts by Rs. 1,000 5. 5/6th of rent and rates, lighting & heating and insurance are to be allocated to the factory and 1/6th to the office. 2 The following is the Trial Balance of Keshav on 31st March 2022 Trial Balance as at 31/03/2022 Particulars Debit Credit Cash in hand 540 Cash at Bank 12,630 Purchase Account 1,40,675 Sales Account 2,58,780 Returns Inwards Account 2,680 Returns Outwards Account 1,500 Carriage on Sales Account 3,200 Carriage on Purchase Account 2,040 st Stock Account (1 April, 2021) 25,760 Building Account 30,000 Free hold Land Account 20,000 Machinery Account 20,000 Patents Account 7,500 Salaries Account 15,000 General Expenses Account 13,000 Insurance Account 600 Drawings Account 15,245 Capital Account 82,000 Sundry Debtors 14,500 2 Sundry Creditors 6,300 Wages Account 20,480 Fuel and Power Account 4,730 Total 3,48,580 3,48,580 The following adjustments should be made: (1) Stock on hand on 31st March 2022 is Rs. 26,800/- (2) Machinery is to be depreciated at the rate of 10% and patents at the rate of 20%. (3) Salaries for the month of march 2022 amounting to Rs. 1500 were unpaid. (4) Insurance includes a premium of Rs. 170/- on a policy, expiring on 31st September 2022. (5) Wages include a sum of Rs. 2000 spent on the erection of a cycle shed for employees and customers. (6) A Provision for Bad and Doubtful Debts is to be created to the extent of 5 per cent on Sundry Debtors. Prepare- Trading account, Profit and Loss account for the year 2021-2022 and Balance Sheet as on 31st March 2022. 3. Ross and Joey are the partners of a partnership firm. From the Trial Balance dated 31st March 2022 and adjustments. Prepare final accounts accounts of a partnership firm. Trial Balance of Partnership Form of Ross and Joey as on 31st March 2022 Amt Amt Debit Balance Credit Balance (Rs.) (Rs.) Drawings : Ross 4,800 Capital Accounts : Ross 24,000 Joey 3,200 Joey 16,000 Net cost of purchase 1,06,000 Sales 2,00,000 Stock of Goods (31-3-2022) 28,000 Payables 30,000 Receivables 48,000 Goods Distributed as samples 2,000 Wages and Salary 10,000 Bank Overdraft 14,000 Trading expense 16,000 Building 50,000 Furniture Fittings 10,000 Office equipment 4,000 Packing material stock 4,000 Cash balance 2,000 2,86,000 2,86,000 Adjustments : 1) Provide interest 8% in capital and 12% on drawings. Ross had withdrawn Rs. 400 at the end of each month and Joey had withdrawn on 1-10-2021. 3  2) Credit Sales of Rs. 10,000 is not recorded and total of sales book of March is overcast by Rs. 2,000. 3) Write off additional bad debts of Rs. 2,000 and provide 5% bad debts reserve on debtors. 4) Furniture of Rs. 4,000 became obsolete, which is not recorded in the books. 5) A court has finalised claim of Rs. 4,000 for not meeting agreements to provide goods to a customer. 6) Outstanding wages of Rs. 2,000 is recorded to wages account but outstanding wages account is not recorded in the trial balance. 4. The Trial Balance of Shree Corporation, Ahmedabad, as on 31/03/2022 is as below. Particulars Amount (₹) Capital Account (including ₹ 10,000) 45000 (Introduced on 1/10/2021) Stock as on 1/4/2021 Finished Goods 7000 Work-in-progress 14000 Raw Materials 6000 27,000 Purchase of Raw Material 1,41,000 Machinery 45,000 Sales 2,52,450 Carriage Inward 1,500 Carriage Outward 900 Rent (including ₹900 for the factory premises) 2700 Rebates and Discount allowed 210 Fire Insurance (for machinery) 420 Sundry Debtors 37,800 Sundry Creditors 10,200 Reserve for Bad and Doubtful debts 120 Printing and Stationery 360 Miscellaneous expenses 1680 Advertisement 9000 Drawings of Proprietor 3600 Office Salaries 10,800 Manufacturing Wages 12,000 Furniture & Fixtures 4500 Factory power & fuel 600 Cash in hand 1200 Balance with Bank of Baroda (Dr) 7500 Adjustments 1. Provide for interest @ 10% per annum on Capital. (No interest on drawings need to be provided). 4  2. A Motor car purchased on 1/10/2021 for ₹ 12,000 has been included on “Purchases”. 3. Provide depreciation: Machinery @ 10% p.a., Motor Car @20% p.a., Furniture & fixtures @10% p.a. 4. Provision for unrealised rent in respect of a portion of the office sublet at ₹ 100 per month from 1/10/2021 has to be made. 5. Sundry Debtors include bad debts of ₹ 800 which must be written off. 6. Provision for Bad and Doubtful Debts as on 31/03/2022 should be maintained at 10% of the Debtors. 7. A sum of ₹ 4000 transferred from the Current Account with the Bank of Baroda, to Fixed Deposit Account on 1/8/2021 has been passed through books. Make suitable adjustments and provide for accrued interest @ 6% p.a. 8. Stock as on 31/3/2022. Finished Goods ₹ 10,000, Raw Material ₹ 2000, Work-in-Progress ₹ 11,000. Prepare the Manufacturing, Trading and Profit and Loss Account for the year ended 31/03/2022 and Balance Sheet as on that date after making adjustments. 5 Mr. AB and Mr. XY are partners sharing profit-loss in the proportion of 3:2. Final accounts of their partnership firm are as follows: Trading Account and Profit and Loss Account of Partnership firm of Mr. AB and Mr. XY for year ending on 31-03-2022 Dr. Cr. Particulars Amount (In Particulars Amount (In Rs.) Rs.) To Cost of Goods Sold 9,28,000 By Sales 15,68,000 To Office Expense 1,60,000 By Sundry Incomes 14,000 To Showroom Rent 20,000 By Bad Debts Recovered 2,000 To Packing Expense 24,000 To Bad Debts 16,000 To Advertisement Expense 28,000 To Selling-Distribution Expense 40,000 To Financial Expense 12,000 To Sundry Expense 32,000 To Salary 16,000 To Tax-Insurance 4,000 To Net Profit: Mr. AB:1,82,400 Mr. XY:1,21,600 3,04,000 15,84,000 15,84,000 Balance Sheet of Partnership Firm of Mr. AB and Mr. XY as on 31-03-2022 Liabilities Amount Assets Amount (In Rs.) (In Rs.) Mr. AB: Non-current Assets: 5 Capital:3,20,000 Fixed Assets: (+) Net Profit:1,82,400 Building 4,80,000 (-) Drawings:96,000 4,06,400 Plant-Machinery 40,000 Mr. XY: Furniture 40,000 Capital:2,40,00 Investments 48,000 (+) Net Profit: 1,21,600 (-) Drawings:48,000 3,13,600 Current Assets: Cash 20,000 Creditors 64,000 Bank 50,000 Bills Payables 16,000 Bills Receivable 10,000 Debtors 1,12,000 8,00,000 8,00,000 After the preparation of annual accounts, it is found that: (1) 5% Interest on Capital is not calculated. (2) 10% Depreciation on building is to be provided. (3) Prepaid Salary is of Rs.800. (4) Interest on Investment not received is 1,600. (5) Bad debts Reserve of Rs.2,400 is to be maintained. (6) Credit purchase of Rs.3,200 is not recorded. Prepare Revised Trading Account, Profit and Loss Account, Profit and Loss Appropriation Account and Balance sheet. -------------------------------- 6