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Unit IIIConcept of Capital and revenue Q1) You are given 1) The balance sheet of N. Swami on 31.12.20042) Cash Transaction for the year up to 31.12.20053) A Summary of the remaining transaction BALANCE SHEET AS ON 31/12/2004

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital		19,600	Cash		800
			Stock		7,500
Creditors		3,600	Debtors		3,900
			Machinery		4,000
			Land & Building		7,000
TOTAL		23,200	TOTAL		23,200

Dr. SUMMARY OF CASH TRANSACTION. Cr.

Particulars	Amount	Particulars	Amount
Opening Balance	800	Payment to creditors	14,700
Received from Debtors	29,000	Wages	1,580
Cash Sales	3,700	Salaries	4,900
		Drawing	4,500
		Office expenses	890
		Investment	1,730
		Closing Balance	5,200
TOTAL	33,500	TOTAL	33,500

Other transaction: -Sales (Credit) Rs. 40,760, Discount to Customer Rs.200, Purchased Rs. 30,000, Discount Received Rs.100, Closing Stock of Goods Rs. 5,300Provide for depreciation on P&M @ 5% and Land and Building @ 2.5%Prepare the Trading A/c, P&L A/c. and Balance sheet. A1): - Dr. TRADING A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Opening Stock		7,500	By Sales
To Purchase			Cash	3,700
Cash	-		Credit	40,760	44,460
Credit	30,000	30,000
To Wages		1,580	By Closing Stock		5,300
To Gross Profit		10,680
TOTAL		49,760	TOTAL		49,760

Dr. PROFIT AND LOSS A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Salaries		4,900	By Gross Profit		10,680
To Discount Allowed		200	By Discount Received		100
To Office Expenses		890
To Depreciation Machinery Building	200 175	375
To NET PROFIT		4,415
TOTAL		10,780	TOTAL		10,780

BALANCE SHEET AS ON 31/12/2007

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital	19,600		Machinery	4,000
Add: - NET PROFIT	4,415		Less: - Depn @ 5%	200	3,800
Less: - Drawing	(4,500)	19,515	Building	7,000
			Less: - Depn @ 2.5%	175	6,825
			Debtors		15,460
Creditors		18,800	Investment		1,730
			Closing Stock		5,300
			Cash		5,200
TOTAL		38,315	TOTAL		38,315

WORKING NOTE: -Dr. DEBTORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	3,900	By Cash Received	29,000
To Credit sales	40,760	By Discount Allowed	200
		By Balance c/d	15,460
TOTAL	34,660	TOTAL	34,660

Dr. CREDITORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Cash	14,700	By Balance b/d	3,600
To Discount Received	100	By Credit Purchase	30,000
To Balance c/d	18,800
TOTAL	33,600	TOTAL	33,600

Q.2) Amar did not keep proper books of account. However, he gives you the following information relating 2007: -

Assets & Liabilities	1.1.07	31.12.07
Cash at bank	1,000	1,800
Stock	20,000	19,500
Sundry Debtors	15,000	16,000
Machinery	40,000	-----
Sundry Creditors	20,000	18,000

Dr. SUMMARY OF CASH TRANSACTION. Cr.

Particulars	Amount	Particulars	Amount
Opening Balance	1,000	Payment to creditors	35,000
Received from Debtors	76,500	Wages	15,100
Cash Sales	8,200	Salaries. and Expenses	11,600
Sales of Newspaper	200	Building Purchased	20,000
Loan from Mrs Amar (@ 9% on 1.10.07)	6,000	Domestic expenses	8,400
		Closing Balance	1,800

During the year Rs. 600 had to be written off as bad. Machinery is to be depreciated @ 15% p.a. Expenses owing are Rs. 800. Prepare Amar's Trading & profit & Loss Account & Balance sheet relating to 2007. A2): - Dr. TRADING A/c. Cr.

PARTICULAR	AMOUNT	AMOUNT	PARTICULAR	AMOUNT	AMOUNT
To Opening Stock		20,000	By Sales
To Purchase			Cash	8,200
Cash	-		Credit	77,500	85,700
Credit	33,000	33,000
To Wages		15,100	By Closing Stock		19,500
To Gross Profit		37,100
TOTAL		1,05,200	TOTAL		1,05,200

Dr. PROFIT AND LOSS A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Interest on Loan		135	By Gross Profit		37,100
To Salaries & Expenses	11,600		By Sale of News paper		200
Add: - O/S Expenses	800	12,400
To Domestic expenses		8,400
To Bad Debt		600
To Depn on Machinery		6,000
To NET PROFIT		9,765
TOTAL		37,300	TOTAL		37,300

BALANCE SHEET AS ON 31/12/2007

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital	56,000		Machinery	40,000
Add: - NET PROFIT	9,765	65,765	Less: - Depn @15%	6,000	34,000
			Building		20,000
O/S Expenses		800	Debtors	16,000
Creditors		18,000	Less: - Bad Debt	600	15,400
Loan from Mrs Amar	6,000		Closing Stock		19,500
Add: - Int on Loan	135	6,135	Cash		1,800
TOTAL		90,700	TOTAL		90,700

WORKING NOTE: -BALANCE SHEET AS ON 31/12/2006

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital (Bal.Fig.)		56,000	Cash		1,000
			Stock		20,000
Creditors		20,000	Debtors		15,000
			Machinery		40,000
TOTAL		76,000	TOTAL		76,000

Dr. DEBTORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	15,000	By Cash & Cheque Received	76,500
To Credit sales	77,500	By Balance c/d	16,000

TOTAL	92,500	TOTAL	92,500

Dr. CREDITORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To cash	35,000	By Balance b/d	20,000
To Balance c/d	18,000	By Credit Purchase	33,000
TOTAL	53,000	TOTAL	53,000

Q.3. Ashutosh carries on small business, but he does not maintain a complete set of account books. He banks all receipts and makes all payments only by means of cheques. He maintains properly a Cash book, Sales Ledger, and Purchase Ledger. He also makes close of every accounting year. From such records you are able together following facts: Receipts for the year ended 31.12.2011

From Sundry Debtors	17,625
Cash Sales	4,125
Paid in by Ashutosh, the proprietor	2,500
TOTAL	24,250

PAYMENT MADE IN THE YEAR ENDED 31.12.2011.

New Plant Purchase	625
Drawings	1,500
Wages	6,725
Salaries	1,125
Interest paid	75
Telephones	125
Rent	1,200
Light and Power	475
Sundry expenses	2,125
Sundry creditors (Purchase ledger accounts)	7,625

PARTICULARS	31.12.2010	31.12.2011
Sundry Creditors	2525	2,400
Sundry Debtors	3,750	6,125
Bank	625	NIL
Stock	6,250	3,125
Plant	7,500	7,315

From the above data, prepare Profit and Loss A/c for year ended 31st Dec, 2011 and Balance Sheet as on that date. A3):Dr. TRADING A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Opening Stock		6,250	By Sales
To Purchase		7,500	Cash	4,125
To Wages		6,725	Credit	20,000	24,125
To Light & Power		475
To Gross Profit		6,300	By Closing Stock		3,125

TOTAL		27,250	TOTAL		27,250

Dr. PROFIT AND LOSS A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Salaries		1,125	By Gross Profit		6,300
To Interest		75
To Telephones Exp		125
To Rent		1,200
To Sundry Expense		2,125
To Depreciation		810
To NET PROFIT		840

TOTAL		6,300	TOTAL		6,300

BALANCE SHEET AS ON 31/12/2011

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital	15,600		Plant	7,500
			Add: - Purchase	625
Add: - NET PROFIT	840		Less: - Depn	810	7,315
Less: - Drawing	(1,500)		Debtors		6,125
Add: - ADI	2500	17,440	Closing Stock		3,125
			Bank		3,275
Creditors		2,400

TOTAL		19,840	TOTAL		19,840

WORKING NOTE: -BALANCE SHEET AS ON 01/01/2011

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital (Bal.Fig.)		15,600	Bank		625
			Stock		6,250
Creditors		2,525	Debtors		3,750
			Plant		7,500
TOTAL		18,125	TOTAL		18,125

Dr. DEBTORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	3,750	By Cash & Cheque Received	17,625
To Credit sales (Bal Fig)	20,000	By Balance c/d	6,125

TOTAL	23,750	TOTAL	23,750

Dr. CREDITORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Cash/Bank	7,625	By Balance b/d	2,525
To Balance c/d	2,400	By Credit Purchase (Bal Fig)	7,500
TOTAL	10,025	TOTAL	10,025

Dr. CASH/BANK A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	625	By Plant(Purchased)	625
To Debtors A/c (Receipt)	17,625	By Drawings	1,500
To Cash Sales	4,125	By Wages	6,725
To Capital Introduced (Additional)	2,500	By Salaries	1,125
		By Interest Paid	75
		By Telephone Expenses	125
		By Rent	1,200
		By Light & Power	475
		By Sundry Expenses	2,125
		By Creditors(Payment)	7,625
		By Balance c/d (Bal Fig)	3,275

TOTAL	24,875	TOTAL	24,875

Q.4). Amisha did not maintain her books of accounts properly. From the following data supplied to you prepare Final Accounts for the year ended 31.12.11

PARTICULARS	AMOUNT
Opening Stock 1.1.11	10,000
Cash on Hand 1.1.11	5,000
Creditors of Furniture & Fixtures on 1.1.11(Dep@10%)	2,000
Rent (paid for 10 months)	1,000
Cash received from Debtors (after allowing 2% disc)	29,400
Cash paid to Creditors (after receiving 3% disc)	17,460
Bad Debts previously written off now recovered	200
Cash Purchases	3,000
Credit Purchases	30,000
Debtors on 31.12.11	12,000
Drawings	5,000
Donations	1,000
Sales (80% Credit Sales)	50,000
Commission Received	1,000
Rate of G.P on Sales	20%

A4):Dr. TRADING A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Opening Stock		10,000	By Sales
To Purchase			Cash	10,000
Cash	3,000		Credit	40,000	50,000
Credit	30,000	33,000
To Gross Profit (20% of 50,000)		10,000	By Closing Stock (Bal Fig)		3,000

TOTAL		53,000	TOTAL		53,000

Dr. PROFIT AND LOSS A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Rent	1,000		By Gross Profit		10,000
Add: O/s Rent (2 months)	200	1,200	By Bad Debts Recovered		200
To Disc Allowed		600	By Disc Received		540
To Donations		1,000	By Commission		1000
To Depreciation		200
To NET PROFIT		8,740

TOTAL		11,740	TOTAL		11,740

BALANCE SHEET AS ON 31/12/2011

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital	17,000		Furniture	2,000
			Less: Depreciation	200	1,800
Add: - NET PROFIT	8,740		(10% of 2000)
Less: - Drawing	5,000	20,740	Debtors		12,000
			Closing Stock		3,000
Outstanding Rent		200	Cash/Bank		18,140
Creditors		14,000

TOTAL		34,940	TOTAL		34,940

WORKING NOTE: -BALANCE SHEET AS ON 01/01/2011

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital (Bal.Fig.)		17,000	Cash/Bank		5,000
			Stock		10,000
Creditors		2,000	Debtors		2,000
			Furniture		2,000
TOTAL		19,000	TOTAL		19,000

Dr. DEBTORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d (Bal Fig)	2,000	By Cash & Cheque Received	29,400
To Credit sales (80% of 50,000)	40,000	By Disc Allowed	600
		By Balance c/d	12,000
TOTAL	42,000	TOTAL	42,000

Dr. CREDITORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Cash/Bank	17,460	By Balance b/d	2,000
To Disc Received	540	By Credit Purchase	30,000
To Balance c/d (Bal Fig)	14,000
TOTAL	32,000	TOTAL	32,000

Dr. CASH/BANK A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	5,000	By Cash Purchases	3,000
To Debtors A/c (Receipt)	29,400	By Drawings	5,000
To Cash Sales	10,000	By Rent	1,000
To Bad Debts Recovered	200	By Creditors(Payment)	17,460
To Commission Received	1,000	By Donations	1,000
		By Balance c/d (Bal Fig)	18,140

TOTAL	45,600	TOTAL	45,600

Q. 5). You are given a. Opening Balance Sheet as on 1.4.2013b. Cash Account for the year ended 31.3.2014c. Additional InformationPrepare Final Accounts of Mr. Sahil Khan BALANCE SHEET AS ON 01/03/2013

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital		1,80,000	Cash		9,000
Bills Payable		72,000	Bank		18,000
Creditors		36,000	Stock		36,000
			Debtors		45,000
			Bills Receivable		36,000
			Furniture		18,000
			Plant		1,26,000

TOTAL		2,88,000	TOTAL		2,88,000

Dr. CASH/BANK A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	27,000	By Bills Payable	1,08,000
To Debtors A/c (Receipt)	1,44,000	By Drawings	21,600
To Cash Sales	63,000	By Rent, Rates & Taxes	36.000
To Bills Receivable	1,35,000	By Creditors(Payment)	63,000
To Commission Received		By Wages	36,000
		By Sundry Expenses	54,000
		By Balance c/d	50,400

TOTAL	3,69,000	TOTAL	3,69,000

Additional Information	Rs.
Debtors as on 31st March, 2015	72,000
Creditors as on 31st March, 2015	45,000
Bills Receivable as on 31st March, 2015	54,000
Bills Payable as on 31st March, 2015	90,000
Stock as on 31st March, 2015	54,000
Discount Allowed	1,800
Discount Received	3,600
Bills Receivable Endorsed	27,000
Bills Receivable in Hand Dishonoured during the year	9,000
Bills Receivable Endorsed Dishonoured	3,600
Bills Payable Dishonoured during the year	3,600

A5):Dr. TRADING A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Opening Stock		36,000	By Sales
To Purchase		2,25,000	Cash	63,000
To Wages		36,000	Credit	3,49,200	4,12,200

To Gross Profit		1,69,200	By Closing Stock		54,000

TOTAL		4,66,200	TOTAL		4,66,200

Dr. PROFIT AND LOSS A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Sundry Exps		54,000	By Gross Profit		1,69,200
To Rent, Rates & Tax		36,000
To Disc Allowed		1,800	By Disc Received		3,600
To NET PROFIT		81,000

TOTAL		1,72,800	TOTAL		1,72,800

BALANCE SHEET AS ON 31/03/2015

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital	1,80,000		Furniture		18,000
			Plant		1,26,000
Add: - NET PROFIT	81,000		Bills Receivable		54,000
Less: - Drawing	21,600	2,39,400	Debtors		72,000
			Closing Stock		54,000
Bills Payable		90,000	Cash/Bank		50,400
Creditors		45,000

TOTAL		3,74,400	TOTAL		3,74,400

WORKING NOTE: -Dr. DEBTORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	45,000	By Cash & Cheque Received	1,44,000
To Bills Receivable(Dishonor)	9,000	By Disc Allowed	1,800
To Creditors (Endorsed Bill Dishonored)	3,600	By Bills Receivable	1,89,000
To Credit sales (Bal Fig)	3,49,200
		By Balance c/d	72,000
TOTAL	4,06,800	TOTAL	4,06,800

Dr. CREDITORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Cash/Bank	63,000	By Balance b/d	2,000
To Disc Received	3,600	By Credit Purchase	30,000
To Bills Receivable(Endorsed)	27,000
To Bills Payable	1,29,600
To Balance c/d	45,000
TOTAL	2,68,200	TOTAL	2,68,200

Dr. BILLS RECEIVABLE A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	36,000	By Cash	1,35,000
To Debtors (Bal Fig)	1,89,000	By Debtors (Dishonoured)	9,000
		By Creditors (Endorsed)	27,000
		By Balance c/d	54,000
TOTAL	2,25,000	TOTAL	2,25,000

Dr. BILLS PAYABLE A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Cash	1,08,000	By Balance b/d	72,000
To Creditors (Dishonored)	3,600	By Sundry Creditors (Bal Fig)	1,29,600
To Balance c/d
TOTAL	2,01,600	TOTAL	2,01,600

Q.6). Following Information is given:

PARTICULARS	01.01.2012	31.12.2012
Sundry Creditors	9,800	8,100
Sundry Debtors	19,300	20,500
Furniture	1500
Stock	11,600	12,300
Plant & Machinery	30,000

Summary of Cash Book

	Rs.		Rs.
To Balance b/d	5,000	By S. Creditors	31,000
To Receive From Debtors	78,000	By Wages	15,000
To Cash Sales	15,000	By Salaries	12,000
To Sales of Old Machinery	4,000	By Machinery	10,000
To Sales of Old Packing Boxes	600	By Investments	6,000
		By Drawings	6,000
		By General Exps.	17,000
		By Balance c/d	5,600
	1,02,600		1,02,600

Bad Debts written off during the year were Rs. 1500. Discount allowed were Rs. 2000 and received were Rs. 600. Depreciation on Machinery is to be 10% on the value of machinery on 31st December, 2011. Furniture is to be depreciated at 5%. Interest @6% is to be allowed on capital.Prepare Trading Account, Profit and Loss Account for 2002 and Balance Sheet as at December 31,2012. A6):Dr. TRADING A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Opening Stock		11,600	By Sales
To Purchase		29,900	Credit	82,700
To Wages		15,000	Cash	15,000	97,700

To Gross Profit		53,500	By Closing Stock		12,300

TOTAL		1,10,000	TOTAL		1,10,000

Dr. PROFIT AND LOSS A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Salaries		12,000	By Gross Profit		53,500
To General Exps		17,000	By Sale of Old packaging boxes		600
To Bad Debts		1,500	By Disc Received		600
To Depreciation
On Furniture (1500 x 5%)	75
On Machinery (36000 x 10%)	3,600	3,675
To Disc Allowed		2,000
To Interest on Capital (57600x6%)		3,456

To NET PROFIT		15069
TOTAL		54,700	TOTAL		54,700

BALANCE SHEET AS ON 31/12/2012

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital (Opening)	57,600		Furniture	1500
Add: Interest on Capital	3,456		Less: Depreciation	(75)	1,425
Add: - NET PROFIT	15,069		Plant & Machinery	30,000
Less: - Drawing	(6,000)	70125	Additions	10,000
				40,000
Bills Payable			Less: Sales	4,000
Creditors		8,100		36,000
			Less: Depn @ 10%	(3,600)	32,400
			Investments		6,000
			Sundry Debtors		20,500
			Closing Stock		12,300
			Cash/Bank		5,600
TOTAL		78,225	TOTAL		78,225

WORKING NOTE: -BALANCE SHEET AS ON 01/01/2012

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
Capital (Bal Fig)		57,600	Furniture		1,500
			Plant & Machinery		30,000
			Bills Receivable
			Sundry Debtors		19,300
			Closing Stock		11,600
			Cash/Bank		5,000
Sundry Creditors		9,800

TOTAL		67,400	TOTAL		67,400

Dr. DEBTORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	19,300	By Cash & Cheque Received	78,000
To Credit sales (Bal Fig)	82,700	By Disc Allowed	2,000
		By Bad Debts	1,500

		By Balance c/d	20,500
TOTAL	1,02,000	TOTAL	1,02,000

Dr. CREDITORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Cash/Bank	31,000	By Balance b/d	9,800
To Disc Received	600	By Credit Purchase (Bal Fig)	29,900
To Balance c/d	8,100
TOTAL	39,700	TOTAL	39,700

Q.7. A and B share profits and losses in the ratio of 3:2. Prepare Trading A/c: Profit and Loss A/c and Balance Sheet from the following: Cash Book: Bank Balance on 1st Jan.. 2001 Rs. 8000: A's drawing 9000: B's drawing Rs. 6000 paid to trade creditors. Rs. 60,000. paid against B/P Rs. 16,000: Wages Rs. 22,000: Salaries Rs. 10,000; Other trade expenses, Rs. 26,510; Received from trade debtors. Rs. 91,200; Received against B/P 16,090; Receipts from cash sales 31,620: cash in hand. Rs. 400. (On 31st December, 2002). There was no cash in hand on 1st Jan., 2002. Particulars of Assets & Liabilities:

PARTICULARS	01.01.2001	31.12.2001
A/s Capital	80,000	?
B's Capital	20,000	?
Stock	39,600	50,000
Creditors	50,000	38,710
Debtors	44,000	14,000
B/R	10,000	14,000
B/P	6,000	NIL
Premises	40,000	40,000
Furniture	2,400	2,400

Other Information: A and B will pay interest on drawing as Rs. 120 and Rs. 60. A and B are entitled to 5% interest on capital. B will get 6% Commission on the net profits remaining after such commission. Allow 5% depreciation on premises and furniture and create a reserve for bad debts amounting Rs. 2650. A7):Dr. TRADING A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Opening Stock		39,600	By Sales
To Purchase		40,000	Credit	1,00,000
To Wages		22,000	Cash	31,620	1,31,620

To Gross Profit		80,020	By Closing Stock		50,000

TOTAL		1,81,620	TOTAL		1,81,620

Dr. PROFIT AND LOSS A/c. Cr.

PARTICULARS	AMOUNT	AMOUNT	PARTICULARS	AMOUNT	AMOUNT
To Salaries		10,000	By Gross Profit		80,020
To Trade Exps		26,510	By Sale of Old packaging boxes
To R.D.D		2,650	By Disc Received
To Depreciation
On Furniture	120		By Interest on Drawings
On Premises	2,000	2,120	A	120
To Interest on Capital			B	60	180
A	4,000
B	1,000	5,000
To B’s Commission
33,920 x 6/106		1,920

To NET PROFIT
A	19,200
B	12,800	32,000

TOTAL		80,200	TOTAL		80,200

BALANCE SHEET AS ON 31/12/2012

LIABILITIES	AMOUNT	AMOUNT	ASSETS	AMOUNT	AMOUNT
A			Furniture	2,400
Capital (Opening)	80,000		Less: Depreciation	120	2,280
Add: Interest on Capital	4,000		Premises	24000
Add: - NET PROFIT	19,200		Less: Depreciation	2000	38,000
	1,03,200		Sundry Debtors	38,710
Less: - Drawing	9,000		Less: R.D.D	2,650	36,060
Less: Interest on Drawings	120	94,080
			Bills Receivable		14,000
B			Closing Stock		50,000
Capital (Opening)	20,000		Cash/Bank		400
Add: Interest on Capital	1,000
Add: Commission	1,920
Add: - NET PROFIT	12,800
	35,720
Less: - Drawing	6,000
Less: Interest on Drawings	60	29,660

Bank Overdraft		3,000
Creditors		14,000

TOTAL		1,40,740	TOTAL		1,40,740

WORKING NOTE: -Dr CASH/BANK A/C Cr

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance	8,000	By A/s Drawings	9,000
To Debtors	91,200	By B/s Drawings	6,000
To B/R	16,090	By Trade Crs.	60,000
To Cash sales	31,620	By B/P	16,000
To Bank Overdraft	3,000	By Wages	22,000
		By Salaries	1,000
		By Trade Exp.	26,510

		By Balance c/d	400
TOTAL	1,49,910	TOTAL	1,49,910

Dr. DEBTORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	50,000	By Cash & Cheque Received	91,200
To Credit sales (Bal Fig)	1,00,000	By Bills Receivable	20,090
		By Balance c/d	38,710
TOTAL	1,50,000	TOTAL	1,50,000

Dr. BILLS RECEIVABLE A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Balance b/d	10,000	By Cash	16,090
To S. Debtors (Bal Fig)	20,090	By Balance c/d	14,000
TOTAL	30,090	TOTAL	30,090

Dr. CREDITORS A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Cash/Bank	60,000	By Balance b/d	44,000
To Bills Payable	10,000	By Purchases	40,000
To Balance c/d	14,000
TOTAL	84,000	TOTAL	84,000

Dr. BILLS PAYABLE A/c. Cr.

PARTICULARS	AMOUNT	PARTICULARS	AMOUNT
To Cash	16,000	By Balance B/d	6,000
		By S. Creditors (Bal fig)	10,000
TOTAL	16,000	TOTAL	16,000

Q8). The stock of material held on 1-4-2015 was 400 units @ 50 per unit. The following receipts and issues were recorded. You are required to prepare the Stores Ledger Account, showing how the values of issues would be calculated under Base Stock Method, through FIFO base being 100 units.

2-4-2015	Purchased 100 units @Rs. 55 per unit
6-4-2015	Issued 400 units @ Rs. 65
10-4-2015	Purchased 600 units @ Rs. 55 per unit
13-4-2015	Issued 400 units @ Rs. 67
20-4-2015	Purchased 500 units @ Rs. 65 per unit.
25-4-2015	Issued 600 units @ Rs. 73
10-5-2015	Purchased 800 units @ Rs. 70 per unit
12-5-2015	Issued 500 units @ Rs. 70
13-5-2015	Issued 200 units @ Rs. 75
15-5-2015	Purchased 500 units @ Rs. 75 per unit
12-6-2015	Issued 400 units @ Rs. 80
15-6-2015	Purchased 300 units @ Rs. 80 per unit

Also calculate the Cost of Goods Sold and the Gross Profit. A:8)Stores Ledger Account [under Base Stock through FIFO Method]

Date	Receipts			Issues			Balance
Date	Qty.	Price Rs	Value Rs	Qty.	Price Rs	Value Rs	Qty.	Price Rs	Value Rs
1-4-2015	--	--	--	--	--	--	100	50	5,000
							300	50	15,000
2-4-2015	100	55	5,500	--	--	--	100	50	5,000
							300	50	15,000
							100	55	5,500
6-4-2015	--	--	--	300	50	15,000
				100	55	5,500	100	50	5,000
10-4-2015	600	55	33,000	--	--	--	100	50	5,000
							600	55	33,000
13-4-2015	--	--	--	400	55	22,000	100	50	5,000
							200	55	11,000
20-4-2015	500	65	32,500	--	--	--	100	50	5,000
							200	55	11,000
							500	65	32,500
25-4-2015	--	--	--	200	55	11,000	100	50	5,000
				400	65	26,000	100	65	6,500
10-5-2015	800	70	56,000	--	--	--	100	50	5,000
							100	65	6,500
							800	70	56,000
12-5-2015	--	--	--	100	65	6,500	100	50	5,000
				400	70	28,000	400	70	28,000
13-5-2012	--	--	--	200	70	14,000	100	50	5,000
							200	70	14,000
15-5-2015	500	75	37,500	--	--	--	100	50	5,000
							200	70	14,000
							500	75	37,500
12-6-2015	--	--	--	200	70	14,000	100	50	5,000
				200	75	15,000	300	75	22,500
15-6-2015	300	80	24,000	--	--	--	100	50	5,000
							300	75	22,500
	2,800		1,88,500				300	80	24,000

Calculation of Cost of Goods SoldCOGS = Opening Inventory + Purchases – Closing Inventory = 5,000 + 1,88,500 – 24,000 = Rs. 1,69,500 Calculation of Gross Profit

Particulars	Amount (Rs)
Sales: Qty x Selling price
6-4: 400 x 65	26,000
13-4: 400 x 67	26,800
25-4: 600 x 73	43,800
12-5: 500 x 70	35,000
13-5: 200 x 75	15,000
12-6: 400 x 80	32,000
Total Sales	1,78,600
Less: COGS	1,69,500
Gross Profit	9,100

Q9.Create a balance account for the same period from the following balance accounts for the year ending March 31, 2017 at People's Club.Receipt and Payment AccountDr. Cr.

Expenditure

Rs.

Income

Rs.

Balance c / d bank

Subscription:

2015 6,750.00

2016 45,000.00

2017 2,250.00

Donations

Hall rent

Interest on bank deposits

Admission fee

Total

1,12,500.00

54,000.00

9,000.00

1,350.00

2,025.00

4,500.00

1,83,375.00

Purchasing Furniture

Salary

Telephone Bill

Electric Bill

Shipping and Stationery

Book Purchase

Expense Entertainment

5% Government Purchase Paper

Miscellaneous Expenses

Balance C / D

Cash

Bank

Total

22,500.00

9,000.00

1,350.00

2,700.00

675.00

11,250.00

4,050.00

36,000.00

2,700.00

1,350.00

91,800.00

1,83,375.00

The following information is available:

Unpaid salary

Unpaid entertainment expenses

Bank interest income

Incurred subscription

Capitalize 50% of admission

Furniture is depreciated at an annual rate of 10%

Expenditure

Rs.

Income

Rs.

Salary 9,000

Add: Unprocessed 6,750

Telephone bill

electric bill

Shipping and stationery

Entertainment fee 4,052.00

Add: Unprocessed2,250.00

Miscellaneous expenses

Furniture

miscellaneous expenses on

Depreciation expenses

Surplus

Total

15,750.00

1,350.00

2,700.00

675.00

6,302.00

6,300.00

2,700.00

1,687.50

31,837.50

63,000.00

Subscription

Donations

Admission fee (50% of 4500)

Bank interest 2,025

Added: Unpaid interest 675

Interest in investment

Hall rent

Total

46,800.00

9,000

2,250.00

2,700.00

900

1,350

63,000.00

A9.)Income and Expenditure A/C Balance sheet overviewBalance preparation for non-trade or non-profit concerns is the same as balance sheet preparation for trading companies. You have all the liabilities and assets as of the date the organization created the balance sheet. Excess assets that exceed liabilities are called capital funds or general funds. Creating a balance sheet for non-profits. Q10. How do you view your subscription amount on your non-profit balance sheet from the following Receipt and Payment accounts and additional information?

Receipt

Rs.

Payment

Rs.

To subscription

25,000

Additional Information:

Unpaid subscriptions from the previous year Rs.2000

Unpaid subscriptions for this year Rs.1500

Subscriptions are Rs received in advance at the end of the previous year. 1000

Subscription is Rs received in advance at the end of this year. 1200

A10.) Start of Balance Sheet

Liabilities

Rs.

Assets

Rs.

Pre-subscription (previous year) out.

1,000

________

2,000

Subscription (previous year)

2,000

________

2,000

Closing the Balance Sheet

Liabilities

Rs.

Assets

Rs.

Advanced Subscription (Next Year)

1,200

Unprocessed Subscription (This Year)

Unpaid subscription (previous year)

1,500

2,000

3,500

Q11. Calculate sports material debited to Income & Expenditure a / c. Yearly. It ended on March 31, 2007, based on the following information. The amount paid for sports material during the year. It was Rs.19,000

Details

Inventory of sports materials

Creditors of sports materials

1 = 4 = 2006 (Rs.)

7,500

200

31.3.2007 (Rs.)

6,400

2,600

Rs.20300

Rs.20700

Rs.20000

Rs.20500

A11) Option 2. Rs.20700 Description: Amount debited to income and expenditure as consumption of sports materials = payment amount + starting inventory-ending inventory-starting creditor + ending creditor. Amount debited to income and expenses = 19000 + 7500-6400-2000 + 2600 = Rs. 20,700 Q12.) The non-profit has received Rs.10,000 as an admission fee for new members. If 20% of the fee needs to be capitalized, what is the amount of the fee that needs to be displayed in the balance account?

Rs.9000

Rs.8000

Rs.2000

Rs.5000

A12). Option 2 Rs.8000 Description: These are the fees collected from all members upon enrolment in membership. Once you become a member of society or a club, you will only be paid once by new entrants. It is treated in two ways: -when capitalized, it appears on the debt side's balance sheet. -If it is considered a receipt for income, it will be displayed in the income and expenditure account on the income side. Therefore, Rs. 20% means Rs. 2000 (10,000 * 20%) appears on the balance sheet on the debt side and the balance of Rs. 8000 is displayed in the income and expenditure account on the income side. Q13. Prize Rs.10000, Prize Investment Interest Rs.1000, Prize Payment Rs.2000, Prize Investment Rs.8000. What will happen to that treatment?

Rs.20000, Rs on the debt side. 8000 on the asset side

Rs.1000, Rs on the responsible side. 8000 on the asset side

Responsible side Rs.1700, Rs. 8000 on the asset side

Rs.9000, Rs on the debt side. 8000 on the asset side

A13) Option 4. Rs.9000, Rs on the debt side. 8000 on the asset sideDescription: The balance sheet calculation looks like this: -Prize-9000 Addition: -Interest 1000 deduction for prize investment: -Prize payment 2000 Debt side amount = Rupee. 9000 prize investment Rs. 8000 is displayed on the asset side. Q14. Bell, a non-governmental non-profit organization, received special pledged funding from a donor to another non-governmental non-profit medical organization during its annual campaign. How does Bell need to record these funds?

Increased assets and increased profits

Increased assets and increased liabilities

Increased assets and increased deferred income.

Decrease in assets and decrease in funds balance.

A14). Option 2. Increased assets and increased liabilitiesDescription: Bell, a non-governmental NPO, is responsible for the funds for the annual campaign and is recorded on the balance sheet. And if the organization pledges this fund to another non-governmental NPO, it becomes a property of the Bernon government. Organization recorded on the asset side of the balance sheet. Q15. From the information below, we will calculate the amount of stationery that will be posted to the Income and Expenditure account of the Cultural Association of India for the year ending March 31, 2018.

Details

Stationery inventory

Stationery creditors

1.4.2017 (Rs.)

21,000

11,000

31.3.2018 (Rs.)

18,000

23,000

Stationery purchased in the year ended March 31, 2018 was Rs 75,000. Also, please present relevant items on the social balance sheet as of March 31, 2018. A15). Stationery Account

Dr.			Cr.
Details	Rs.	Details	Rs.
To Balance b / d	21,000	By income and expenditure in balance A / c	78,000
To Bank balance	75,000	Balancing figure
		By balance c / d	18,000
	96,000		96,000

Balance sheet as of March 31, 2018

Liabilities	Amount	Assets	Amount
Stationery Creditors	23,000	Stationery Inventory	18,000

Q16). From the information below, we will calculate the amount of the subscription that will be credited to the 2007-2008 balance account.

Particulars	Amount
Subscriptions received for year	50,000
Outstanding subscriptions on March 31, 2007	20,000
Unprocessed subscriptions on March 31, 2008	6,000
Subscriptions pre-received on March 31, 2007	8,000
Subscriptions received in advance on March 31, 2008. The 2006-07 delinquency is still 1,500.	9,000

A16)

Particulars	Amount
Subscriptions received for year	50,000
(+) March 31, 2008 Unprocessed Subscriptions (6,000 – 1,500)	4,500
(+) Subscriptions received in advance on March 31, 2007	8,000
(-) Subscription received in advance on March 31, 2008	(9,000)
(-) Unprocessed subscriptions on March 31, 2007 (20,000 – 1,500)	(18,500)
Revenue from 2007-08 subscription	35,000

Q17.Find out the cost of drugs consumed in 2015-16 from the following information:

Particulars

Amount (Rs)

Purchase price of medicine

3,70,000

Creditors of purchased medicines

April 1, 2015

March 31, 2016

25,000

17,000

Drug inventory

April 1, 2015

March 31, 2016

62,000

54,000

Pre-pharmaceutical supplier

April 1, 2015

March 31, 2016

11,500

18,200

A17)

Particulars	Amount
Payment for drug purchase	3,70,000
(-) Decrease in drug creditors in 2016 (25,000 – 17,000)	(8,000)
(-) Increase in drug advance payments in 2016 (18,200 – 11,500)	(6,700)
2016 drug purchase	3,55,300
(+) Starting inventory of pharmaceutical products on April 1, 2015 (-) End of stock of pharmaceutical products on March 31, 2016	62,000 (54,000)
= Medicines consumed in 2016	3,63,000

Q18. From the following receipt and payment accounts for the Cricket Club and the additional information provided, prepare the balance sheet for the year ending December 31, 2018 and the balance sheet for that date. Receipt and Payment Accounts Year ending December 31, 2018

To bal b/d	Rs.		Rs.
- Cash	3,520	By Maintenance	6,820
-Bank	27,380	By tableware	2,650
-Time deposit @ 6%	30,000	By Match cost	13,240
To subscription (2017 including Rs 6000)	40,000	By salary	11,000
To admission	2,750	By Transportation	820
To Donation	5,010	By maintaining the lawn	4,240
To Interested in time deposit	900	By Stamps	1,050
To Tournament Fund	20,000	By purchasing cricket products	9,720
To Sale of tableware (book value Rs. 1200)	2,000	By Miscellaneous expenses	2,000
		By Investment	5,700
		By Tournament costs	18,800
		By Balance c / d: -Cash -Bank	2,200 23,320
		Time deposit	30,000
	1,31,560		1,31,560

Additional Information:

Unpaid salary is rupees. 1000.

The initial balance of the stock of stamps, stationery and cricket gods is Rs. 3210 each for 750 rupees. The same closing price is Rs. 900 and rupees. 2800 each.

Unpaid subscriptions for 2017 and 2018 are Rs. 6600 and Rs. 8000 each.

A19) Cricket Club Income and Expenditure Account Year ended December 31, 2018

Expenditure		Rs.	Income	Rs.
To Maintenance		6,820	By Subscription	40,000
To transport		820	less: Rec. Last year	6,000
To Lawn Maintenance		4,240	Add: untreated this year	8,000		42,000
To match cost		13,240	By Admission fee	2,750
To Salary	11,000		By Donations	5,010
Add: Outstanding	1,000	12,000	By Interest on time deposits	900
To Postage stamps:			Added: Unpaid due	900	1,800
Balance at the beginning	750		By Gain on sale of tableware (2000-1200)	800
Add: Purchase	1,050
Less: Closing Inventory	(900)	900
To cricket goods:
Beginning balance Added: Buy Less: Closing price	3210 9720 (2800)	10,130
To miscellaneous expenses	2,000
To income that exceeds expenditure (Bal Fig)	2,210
	52,360			52,360

Balance sheet As of December 31, 2018

Liabilities		Amount	Assets	Amount
Tournament Fund Less: Tournament costs	20,000 18,800	1,200	Cash Bank Time deposit Investment	2,200 23,320 30,000 5,700
Unpaid salary		1,000	Crockery	2,650
Capital (balance Fig) Added: Surplus	72,660 2,210	74,870	Interest accrued on time deposit	900

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