Sri Vidhya Nikethan Matric Higher ......pass adjusting entries also show how these items will appear...

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Sri Vidhya Nikethan Matric Higher Secondary Sechool, Varadhapampalayam.

[chap-1 -Final accounts with adjustment][ 5 marks] q.no.38

1.Commission received given in Trial Balance Rs 1,000 as on that date

31.12.1994.Commission accrued but not received Rs 150,Show the adjusting entry and how

will appear in the final accounts.

2.Give adjusting entry and transfer entry for Interest on capital Rs 6,000

3.Give adjusting entry and transfer entry for bad debts Rs 5,000

4.Rent Received is shown in the Trail balance as on 31.12.2003 Rs 10,000.Rent received in

advance is Rs 1,000.You are required to show how it appears in the profit and Loss a/c and

balance sheet.

5.The Trial Balance shows the following as on 31.03.2006

Bank loan @ 10% [on 01.04.2005] Rs 3,00,000

Interest paid Rs 10,000

Provide for interest on bank loan outstanding pass adjusting entry and how will appears in

the final accounts.

6.Give adjusting entry and transfer entry for interest on drawings Rs 3,000

7.As per Trial Balance Capital is Rs 9,00,000 drawings Rs 80,000

Adjustment; Calculate interest on drawings @6% p.a

pass adjusting entry and transfer entry

8.Trial Balance as on 31.3.2007 shows Rent received Rs 30,000.Rent received in advance Rs

6,000 Pass adjusting entry

9.Give adjusting and transfer entry for interest on capital Rs 5,000

10.Commission Received given in Trial Balance is Rs 5,000 as on 31st December 2006

Commission accrued but not yet received is Rs 150 Show the adjusting entry.

11.As per 31.3.2005 Trial Balance bank loan @ 10% Rs 8,00,000 Interest paid Rs 50,000

Adjustment: Provide for interest on bank loan outstanding .Pass adjusting entry and show

how will this item appear in the final accounts.

12.Give adjusting entry and transfer entry for interest on drawings: Rs 2,000

13.Give adjusting and transfer entry for write off bad debts Rs 3,000

14.Pass adjusting entry and transfer entry for interest on drawings Rs 10,000

15.Give adjusting entry and transfer entry for bad debts Rs 2,500

16.As per The Trial balance Capital as on 31.12.2005 is Rs 90,000.Adjustment:Provide 6%

interest on capital pass adjusting entry and transfer entry.

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17.Giving adjusting entry and transfer entry for write off bad debts Rs 10,000

18.Give adjusting entry and transfer entry for Depreciation at 10% per annum on Machinery

of Rs 25,000

19.The Trial balance 31.3.2005 shows Rs 40,000 as Insurance premium paid. Unexpired

insurance premium Rs 5,000.pass adjusting entry and show how this item will appear in the

Profit and loss account and Balance sheet.

20.Trial balance as on 31.3.2005 show rent received Rs 30,000 Rent received in advance Rs

6,000.

Pass adjusting entry and show how this item will appear in the Profit and loss account and

Balance sheet.

21.As per Trial balance 31.3.2005 capital is Rs 6,00,000.provided 6% interest on capital. pass

adjusting entry and show how this item will appear in the Profit and loss account and

Balance sheet.


Bank loan @ 10% [on 01.04.2005] Rs 10,00,000



the final accounts.

23.Rent received shown in the Trial balance as on 31st December 2001.Rs 10,000.Rent

received in advance is Rs 1,500.You are required to show how it appears in the profit and

Loss a/c and balance sheet.

24.How will the following adjustment appear in the balance sheet as on 31.12.2000

Sundry debtors Rs 21,000

bad debts to be written off Rs 1,000

Adjustment:

Provide @ 5% provision for bad and Doubtful debts and 2% provision for discount on debtors.

25.The Trial balance as on 31.3.2003 show sundry debtors Rs 60,000.Write off bad debts Rs

4,000.pass adjusting entry and show how this item will appear in the Profit and loss account

and Balance sheet.

26.The Trial balance shows the value of Furniture on 31.3.2009 as Rs 60,000.Adjustment;

Furniture is to be depreciated at 10% .Give adjusting entry and Transfer entry.


Bank loan @ 10% [on 01.04.2007] Rs 4,00,000



the final accounts.

28.Give journal entry and transfer entry for interest on drawings Rs 6500

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29.Give journal entry and transfer entry for interest on drawings Rs 6000

12 marks: (q.no.45 a compulsory sums)

1.The following balances have been extracted from the Trial balance of Mr. Ashok as on

31.3.2002

Trail balance as on 31.3.2002

particulars Debit

Rs

Credit

Rs

Debtors

Bad debts

2,01,200

1,200

-

-

Adjustments:

1.Write off additional bad debt of Rs 5,000

2.Create provision of 10% for bad and doubtful debts on debtors

3.Create provision of 2% for discount on debtors

Give necessary adjustment entries and show how these items will appear in the Profit and

Loss account and Balance sheet.

2.The Trial Balance show on 31.3.2009 as follows

Sundry debtors Rs 85000

Adjustment:

1.Write off bad debt of Rs 5,000



Give necessary adjustment entries and show how these items will appear in the Final

accounts

3.The Trial Balance show on 31.3.2007, Sundry debtors Rs 78,000

Adjustment:





accounts

4.The following items are found in the Trial Balance Of Mr.Kumar as on 31.3.2004


Bad debts Rs1,200

Adjustment:



accounts

5.The Trial Balance show on 31.3.2007 as follows


Adjustment:




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accounts

6.The Trial Balance shows Sundry debtors as Rs 1,25,000 ,bad debts Rs 4,000 as on 31.3.2003

Adjustment:



3.Create provision of 1 ½ % for discount on debtors


accounts

7.The Trial balance shows as on 1st December 2006

Sundry Debtors-Rs 10,500

Adjustment:

1.Bad debts to be written off Rs 500

2.provide 5% provision for bad and doubtful debts

3.@ 2% provisions for discount on debtors

pass the journal entries and show how they appear in the final accounts.

8.The Trial balance shows on 31.3.2005 Sundry debtors -Rs 56,000

Adjustment:





accounts

9.The Trial Balance shows on 31.3.2006 Sundry Debtors Rs 1,50,000.provide 5% provision for

bad and doubtful debts on Sundry debtors .Pass adjusting entry and show how this item will

appear in the final accounts.

10.Following are the balances extracted from the Trial balance of Mr. Raveendran as on

31.3.2005 Rs

Sundry debtors 65,000

Bad debts 2,500

Provision for bad and doubtful debts 1,500

Adjustment:




accounts

11.The Trial balance shows on 31.3.2006 as follows;

Sundry debtors Rs 1,00,000

Adjustments:

1.Bad debts to be written off Rs 10,000

2.Provision for bad and doubtful debts be created at 5%

3.Provide discount on debtors at 2%

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Pass adjustment entries and show how these items will appear in the Final accounts

12.The following are the balances extracted from the Trial balances of Kumar as on 31.3.2002

Trial balance as on 31.3.2002

particulars Debit

Rs

Credit

Rs

Sundry debtors

bad debts

Provisions for bad and doubtful debts

1,20,000

10,000

-

-

-

20,000

Adjustment:

Create Provision for bad & Doubtful debts @ 5% on Sundry Debtors

13.The Trial Balances shows on 31.3.2004


Bad debts Rs 1,000

Adjustments:

1.Write off bad debts Rs 1,500

2.Provide 5% for bad and doubtful debts

3.Provide 2% for discount on debtors

pass adjustment entries and also how this item will appear in the final accounts.

14.The Trial Balance shows on 31.3.2003 Sundry debtors1,25,000

Adjustments;


2.provision for bad and doubtful debts be created at 5%


pass adjusting entries also show how these items will appear in the final accounts

15.The Trial Balance shows on 31.3.2005 Sundry debtors 65,000

Adjustments;





16.The Trial Balance shows on 31st March 2004 Sundry debtors Rs 2,20,000

Adjustments;


2. provision for bad and doubtful debts be created at 5%


17.The Trial Balance shows on 31.3.2003 Sundry debtors Rs 2,00,000 and Bad debts Rs

10,000

Adjustments;





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18.The Trial balance shows on 31.3.2008 as follows;

Sundry debtors Rs 1,25,000

Adjustments:


2. Provision for bad and doubtful debts be created at 5%

3. Provide discount on debtors at 2%


19. The Trial balance shows on 31.3.2005 as follows;


Adjustments:

1. Bad debts to be written off Rs 5,000




20. How will the following adjustment appear in the profit and Loss account and balance

sheet as on 31.12.2006?

Adjustment:


Bad debts to be written off Rs 1,000

Provide @ 5% provision for bad and Doubtful Debts and 2% provision for discount on debtors

Give adjusting entries.

21. The Trial balance shows on 31.3.2008 as follows;

Sundry debtors Rs 1, 25,000

Adjustments:

1. Bad debts to be written off Rs 5,000




22. The following balances have been extracted from the Trial balance of Mr.Ashok as on

31.3.2002

Trail balance as on 31.3.2002

Adjustments:

1. Write off additional bad debt of Rs 5,000

2. Create provision of 10% for bad and doubtful debts on debtors

3. Create provision of 2% for discount on debtors

particulars Debit

Rs

Credit

Rs

Debtors

Bad debts

2,01,500

1,500

-

-

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Give necessary adjustment entries and show how these items will appear in the Profit and

Loss account and Balance sheet.

20 Marks (q.no.54)

1. From the following particulars taken from the books of Ganesh , prepare Final accounts for

the year ending 31.3.1999


Debit Balance RS Credit balance RS

Drawings

Cash at bank

Cash

Wages

Purchases

Stock [1.4.1998]

Buildings

Debtors

Bills Receivable

Rent

Commission

General Expenses

Furniture

4,000

1,700

6,500

1,000

2,000

6,000

10,000

4,400

2,900

450

250

800

500

40,500

Capital

Sales

Creditors

20,000

16,000

4,500

40,500

Adjustment:

1.Stock on 31.3.1999 was Rs 4,000

2.Interest on Capital at 6 %to be provided

3.Interest on Drawings at 5% to beprovided

4.Wages yet to be paid Rs 100

5.Rent prepaid Rs 50

2.From the following Trial balance of Mr. Saravanan, Prepare Trading and Profit and Loss

account for the Year ended 31st march 2009 and the Balance sheet as on that date:

Trial Balance as on 31st march 2009


Cash in hand

Cash at bank

Drawings

wages

Purchases

Opening stock

Buildings

Sundry Debtors

Bills Receivable

Commission

General Expenses

Insurance

45,000

20,000

30,000

15,000

60,000

50,000

1,00,000

85,000

20,000

8,000

10,000

7,000

4,50,000

Capital

Sundry creditors

Sales

Bills payable

2,00,000

50,000

1,70,000

30,000

4,50,000

Adjustment:

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1.Closing stock Rs 30,000

2.Interest on capital 6% p.a to be provided

3.Depreciate Building by 10%

4.Outstanding wages Rs 2,000

5.Unexpired Insurance Rs 1,000

3.From the following Trial Balance of Mr. Imran as on 31st March 2005.Prepare Trading and

profit and loss account for the year ending 31.3.2005 and balance sheet as on that date.



Purchase

Sundry debtors

Investment

Rent

carriage Inwards

Salaries

General Expenses

cash

Opening stock

Machinery

Drawings

1,50,000

80,000

1,20,000

15,000

10,000

20,000

10,000

30,000

75,000

60,000

30,000

6,00,000

Capital

Sundry Creditors

Sales

Commission received

Bills payable

3,00,000

53,000

2,20,000

7,000

20,000

6,00,000

Adjustment:

1.Clsoing stock Rs 1,00,000

2.Outstanding Rent Rs 2,000

3.Interest on capital at 6% is to be provided

4.Commission Received in advance Rs 1,000

5.Depreciate machinery at 10% p.a

4.The Trial Balance of Murugan as on 31.3.1994 is as follows



Drawings

Building

Furniture & fittings

Computer

Interest on loan

Loose tools

Purchases

Stock

general expenses

Freight inward

Freight Outward

Debtors

Bank

3,600

30,000

15,000

50,000

1,800

32,200

1,50,000

50,000

30,000

4,000

2,000

56,000

40,400

4,65,000

Capital

Loan @ 6%

Sales

Commission received

Creditors

2,00,000

30,000

2,00,000

15,000

20,000

4,65,000

Adjustment:


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2.Depreciate computer at 10% ,Buildings at 5% , Furniture and fittings 10%

3.provide interest in drawings at 6% and on capital at 6%

Prepare Final accounts for the year ending on 31.3.1994.

5.From the following Trial Balance Of Mr. Arumugam ,Prepare Trading and Profit and loss

account for the year ending 31.3.2003 and balance sheet as on that date:



Cash in hand

Cash at bank

Drawings

Wages

Purchases

Stock (01.04.2007)

Buildings

Sundry Debtors

Bills Receivable

Rent

Commission

general Expenses

Furniture

32,500

8,500

20,000

5,000

10,000

30,000

50,000

22,000

14,500

2,250

1,250

4,000

2,500

2,02,500

Capital

Sales

Sundry creditors

1,00,000

80,000

22,500

2,02,500

Adjustment:

1.Closing stock was valued at Rs 20,000

2.Interest on capital at 6% is to be provided

3.Depreciated Buildings at 10% p.a

4.Wages yet to paid Rs 500


6.From the following particulars taken from the books of Mr. Ganesh ,prepare Final accounts

for the year ending 31.3.1999



Drawings

Cash at bank

Cash

Wages

Purchases

Stock [1.4.1998]

Buildings

Debtors

Bills Receivable

Rent

Commission

General Expenses

Furniture

40,000

17,000

65,000

10,000

20,000

60,000

1,00,000

44,000

29,000

4,500

2,500

8,000

5,000

4,05,000

Capital

Sales

Creditors

2,00,000

1,60,000

45,000

4,05,000

Adjustment:

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1.Stock on 31.3.1999 was Rs 40,000

2.Interest on Capital at 6 %to be provided

3.Interest on Drawings at 5% to be

provided

4.Wages yet to be paid Rs 1,000


7.From the following particulars taken from the books of Mr. Anbu , prepare Final accounts

for the year ending 31.3.2006



Cash in Hand

Cash at bank

Drawings

Wages

Purchases

Opening stock

Buildings

Bills Receivable

Sundry Debtors

Commission

General Expenses

Insurance

16,000

40,000

5,000

4,000

25,000

37,000

1,50,000

13,000

87,000

4,000

11,000

8,000

4,00,000

Capital

Sales

Sundry Creditors

2,00,000

1,62,000

38,000

4,00,000

Adjustment:


2.Outstanding wages RS 1,000

3.Unexpired Insurance Rs 2,000

4.Depreciate Buildings by 10%

5.Interest on Capital 6% p.a to be provided

8.From the following balances are extracted from the books of Mr. Kavin as on 31st march

2004 prepare trading account and Profit and loss account balance sheet as on that date:



General expenses

Drawings

Cash in hand

Stock (1-4-2003)

Furniture

Purchases

wages

Insurance premium

Salaries

Sundry debtors

16,500

16,000

2,500

1,00,000

80,000

3,00,000

50,000

1,000

15,000

1,50,000

7,31,000

Capital

Commission

Bank over draft

Sales

Sundry Creditors

Bills payable

1,20,000

11,000

25,000

5,00,000

50,000

25,000

7,31,000

Adjustment:

1.Closing Stock Rs 1,00,000

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2.Wages yet to be paid RS 2,000

3.Commission accrued and not yet received Rs 1,000

4.Quarterly premium of Insurance is paid in advance

5.Depreciate furniture @ 10%

9.From the following Trial Balance of Mr. Karthick as on 31st March 2006 Prepare Trading

account and Profit and loss account For the year ended 31.3.2006, And The balance sheet as

on that Date;



Purchases

Sundry Debtors

Investment

Rent

Carriage Inwards

Salaries

General expenses

Cash

Opening stock

machinery

Drawings

1,25,000

90,000

50,000

10,000

5,000

25,000

15,000

25,000

85,000

50,000

20,000

5,00,000

Capital

Sundry Creditors

Sales

Commission Received

Bills payable

2,50,000

60,000

1,60,000

10,000

20,000

5,00,000

Adjustment:

1.Closing stock RS 1,20,000

2.Outstanding Rent Rs 5,000

3.Commission Received in advance Rs 2,000

4.Depreciate machinery at 10% p.a

5.Write off Bad Debts Rs 2,000

10.From the following Trail Balance of Mr. Anand as on 31st March 2004,Prepare Trading

account ,Profit and loss account for the year ended 31.3.2004 and the Balance sheet as on that

date



Cash in hand

Purchases

Opening stock

Sundry Debtors

Plant & Machinery

Furniture

Bills receivable

Rent & Taxes

Wages

Salaries

Freight Inward

500

1,20,000

40,000

60,000

50,000

20,000

15,000

10,000

16,000

20,000

1,000

3,52,500

Capital

Bank loan @ 5%

Bills payable

Sales

Sundry Creditors

Interest

80,000

20,000

25,000

2,00,000

25,000

2,500

3,52,500

Adjustment:

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2.Provide for the following liabilities

a]wages Rs 3,000 b]Salaries Rs 4,000 c]Rent & Taxes Rs 2,000

3.Depreciation on Plant and machinery @ 5% and Furniture 10%

4.Provide 5% interest on bank loan


11.From the following Trial Balance of Mr.Ruso prepare the final accounts for the year ending

31.12.2005



Cash in Hand

Cash at Bank

Drawings

Wages

Purchases

Stock

Buildings

Sundry Debtors

Rent

General expenses

65,000

17,000

40,000

10,000

20,000

60,000

1,00,000

78,000

7,000

8,000

4,05,000

Capital

Sales

Sundry Creditors

2,00,000

1,60,000

45,000

4,05,000

Adjustment:


2.Interest on Drawings at 5% to be provided

3.Depreciate Buildings at 10% p.a


5.Wages yet to be paid Rs 500

12.From the following Trial Balance of Mr.Abdul Hammed prepare the Final accounts for the

year ending 31.12.2005



Purchases

Stock

Buildings

Sundry Debtors

Rent

General Expenses

Cash in Hand

Cash at Bank

Drawings

Wages

60,000

1,80,000

3,00,000

2,34,000

21,000

24,000

1,95,000

51,000

1,20,000

30,000

12,15,000

Sales

Sundry Creditors

Capital

4,80,000

1,35,000

6,00,000

12,15,000

Adjustment:


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2.Interest on Drawings at 5% to be provided

3.Depreciate Buildings at 10% p.a


5.Wages yet to be paid Rs 1,500

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13.From the following Trial Balance Of Mr. Ashok as on 31st March 2005 ,prepare Trading

,Profit and loss account and the Balance sheet as on that date



Purchases

Sundry Debtors

Investment

Rent

Carriage inwards

salaries

general expenses

Cash

opening stock

Furniture

Drawings

75,000

80,000

35,000

10,000

5,000

20,000

15,000

15,000

80,000

45,000

20,000

4,00,000

Capital

Sundry creditors

Sales

Bills payable

Commission received

2,00,000

40,000

1,30,000

20,000

10,000

4,00,000

Adjustment:

1.Closing stock Rs 1,00,000

2.Outstanding salary Rs 2,000

3.Commission received in advance Rs 3,000

4.Depreciate Furniture at10% p. a

5.provide interest on capital at 6% p. a

14.From the following Trial Balance of Mr. Joseph prepare the final accounts for the year

ending 31.12.2003



Cash in hand

Cash at bank

Drawings

Wages

Purchases

Opening stock

Buildings

Bills receivable

Sundry debtors

Rent

Commission

general expenses

Insurance

27,000

80,000

10,000

8,000

50,000

75,000

3,00,000

25,000

1,75,000

5,000

8,000

22,000

15,000

8,00,000

Capital

sales

Sundry creditors

4,00,000

3,25,000

75,000

8,00,000

Adjustment:


2.Outstanding wages Rs 2,000

3.Prepaid Insurance Rs 5,000

4.Interest on Capital at 6% p.a to be provided

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5.Depreciate Buildings by 10% p.a

15.The following are the balances extracted from the books of Mrs.Thenmozhi as on 31.3.2006



Drawings

Cash in hand

cash at Bank

Wages

Purchases

Stock

Buildings

Sundry debtors

Bills receivable

Rent

Commission

General expenses

Furniture

40,000

17,000

65,000

10,000

20,000

60,000

1,00,000

44,000

29,000

4,500

2,500

8,000

65,000

4,65,000

Capital

Sales

Sundry creditors

Bills payable

2,00,000

1,60,000

45,000

60,000

4,65,000

Adjustment:


2.Interest On capital at 6% to be provided

3.Interest on Drawings art 5% to be provided

4.wages yet to be paid Rs 1,000


Prepare Trading and Profit and loss account and balance sheet on 31.3.2006

16.The following are the balances extracted from the books of Mrs. Sundari as on 31st March

2006



Furniture

cash in hand

Opening stock

Purchases

Investment @10%

Drawings

Salaries

Insurance

Rent

Debtors

Advertising

General expenses

30,000

8,000

1,00,000

3,40,000

20,000

60,000

72,000

12,000

26,000

1,80,000

40,000

27,500

9,15,500

Capital

Commission

Sales

Creditors

Interest received

2,00,000

14,000

6,00,000

1,00,000

1,500

9,15,500

Adjustment:

1.Closing stock was valued at Rs 80,000 2.provide for accrued interest on

Investment Rs 500

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3.Commission received in advance Rs 4,000

4.Depreciation furniture by 10%

5.provide an interest on capital @ 5%

Prepare Trading and Profit and loss account and balance sheet as on 31st March

2006

17.The following are the balances extracted from the books of Mr.Raja as on 31st

March 2009



Drawings

cash in bank

Cash in hand

wages

Purchases

Stock

Buildings

Sundry debtors

Bills receivable

Rent

General expenses

Furniture

30,000

20,000

60,000

10,000

40,000

60,000

1,00,000

30,000

25,000

5,000

15,000

1,00,000

5,00,000

Capital

Sales

Sundry creditors

Bank loan

Bills payable

2,00,000

1,10,000

50,000

1,00,000

40,000

5,00,000

Adjustment:


2.Outstanding wages Rs 500

3.Interest on capital at 6% to be provided

4.Depreciate Buildings by 10%

5.Prepaid Rent Rs 1,000

Prepare Trading and Profit and loss account and Balance sheet as on 31st March 2009

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Sri Vidhya Nikethan Matric Higher Secondary School,

Varadhapampalayam.

[chapter-2-Accounts from incomplete records –Single entry][ 5 marks]q.no39

1.calculate the missing information: Rs

Profit made during the year 2,500

Capital at the end 6,000

Drawings 2,000

Capital at the beginning 1,200

2.Calculate the missing information:



Additional Capital 4,000

Drawings 2,400

Capital in the beginning ?

3.Find out profit or loss from the following :

Opening capital 1,40,000

Closing capital 1,50,000

Additional capital 35,000

Drawings 10,000


Drawings 50,000

Additional Capital 10,000



Closing Capital ?

5.Calculate the missing figure;

Capital at the beginning Rs 60,000

Capital at the end Rs 80,000

Profit made during the year Rs 32,000

Additional capital Introduced Rs 10,000

Drawings ?

6.Calculate the missing figure:



Capital introduced during the year 4,000

Drawings 2,500

Capital at the beginning ?

7.From the following Find out the Total Sales

Sundry Debtors (1-1-2005) 60,000

Cash received from sundry Debtors 90,000

Sales return 7,500

Closing (31.12.2005) Sundry Debtors 74,500

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Cash Sales 65,000

8.Calculate the missing information;



Drawings 25,200

Loss 12,600

Opening capital ?

9.Calculate the missing figure;

Drawings 1,50,000


Capital in the beginning 3,00,000


Capital at the end ?

10.Calculate the missing information from the following:


Capital at the end ?

Additional capital introduced during the year 4,000

Drawings 2,400

Capital in the beginning 9,600


Drawings 55,000



Profit for the year 35,000

Closing capital ?

12.Find out profit or loss for the year;

Opening capital 70,000

Closing capital 75,000


Drawings 5,000

13.Calculate the sundry debtors at the end:

Opening sundry debtors 80,000

Total sales 3,20,000

Cash sales 40,000

Cash received from sundry debtors 1,56,000

Returns inwards 10,000

14.From the following details find out total purchases:

Opening sundry creditors 1,50,000

Cash paid to sundry creditors 45,000

Discount received 30,000

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Purchases returns 15,000

Closing sundry creditors 1,80,000

Cash purchases 80,000

15.From the following information , find out the total sales

Sundry Debtors (1-04-2004) 50,000

Cash received from sundry Debtors 80,000

Sales return 5,000

Closing (31.03.2005) Sundry Debtors 75,000

Cash Sales 79,000

Discount allowed to debtors 2,000

16.Find out the profit or loss from the following:



Drawings 90,000


17.From the following information calculate the missing information;

Drawings 40,000


Opening capital 60,000

Profit during the year 50,000

Closing capital ?



Capital at the beginning 60,000

Profit for the year 32,000


Drawings ?

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[chapter-2-Accounts from incomplete records –Single entry][ 12

marks]q.no.45b

1.Mr Suresh started business with Rs 2,00,000 on 1.4.2003 .His books are kept

under single entry. On 31.3.2004 his position was under

Liabilities Rs Assets Rs

Creditors

Bills payable

Outstanding expenses

40,000

5,000

7,500

Cash

Cash at Bank

Furniture

Plant & machinery

Debtors

Stock

Bills receivable

6,000

10,000

30,000

1,00,000

50,000

90,000

15,000

Ascertain Profit or Loss made by Suresh for the year ended 31.3.2004

2.Mrs.Sankari started business with Rs 1,50,000 as Capital as on 1.4.2006.During

the year she has withdrawn at the rate of 3,000 per month. She introduced Rs

40,000 as additional Capital Rs

Bank Balance 15,000

Stock 85,000


Machinery 45,000

Cash in hand 20,000

Sundry creditors 30,000

Prepaid expenses 4,000

She keeps her books under Single entry system Find out her Profit Or Loss for the

year 2006-07

3.Mr.Anwar keeps his books by incomplete single entry. His assets and liabilities on

1.4.2006 and 31.3.07 stood as follows

Cash in hand

Sundry Debtors

Investment

Furniture

Sundry creditors

Stock

1.4.2006

Rs

31.3.2007

Rs

5,000

70,000

30,000

10,000

40,000

55,000

10,000

85,000

30,000

10,000

50,000

75,000

He introduced an additional capital of Rs 30,000.He withdrew fro Domestic purpose

for Rs 50,000.Find out the Profit or Loss for the year 2006 -2007

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4.Raj keeps his books by single entry system .his position on 1.4.2003 and 31.3.2004

was as under;

Cash

Bank

Stock

Debtors

Furniture

Creditors

1.4.2003

Rs

31.3.2004

Rs

500

10,000

7,000

30,000

6,000

6,000

6,000

15,000

10,000

40,000

6,000

12,000

He introduced an additional capital of Rs 8,000 during the financial year. He

withdrew Rs 14,000 for Domestic purposes . Find out the Profit or Loss for the year

ended 31.3.2004

5.Mr.Sugan keeps his books by incomplete double entry. He started business with

Rs 3,00,000 on 1.4.2005

On his position was as under:

Cash in hand 8,000


Cash at Bank 20,000

Bills payable 10,000

Furniture 40,000

Outstanding expenses 8,000

Plant & machinery 2,00,000

Sundry debtors 1,50,000

Stock 1,50,000

Bills receivable 15,000

Additional Capital Rs 10,000 and drawings Rs 5,000

Ascertain the Profit or Loss for the year 2005-2006

6.Mr.Suresh Keeps his books by incomplete double entry system. He started

business with Rs 1,10,000 on 1.4.2007.On 31.3.2008 his position was as under:

Bank balance 20,000

Stock 30,000


Machinery 50,000

Cash in hand 10,000




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Outstanding Expenses 500

During the year he introduced Rs 35,000 as additional capital .he has withdrawn Rs

2,000 per month for his personal use. Find out his profit or Loss for the year 2007-

08

7.The balances appear in Bharani’s books which are kept on single entry basis;

Furniture

Stock

Sundry debtors

Cash

Sundry creditors

Bills receivable

Loan(dr)

Investment

Jan1,2001

Rs

Dec31.2001

Rs

2,000

5,000

6,000

10,000

2,000

1000

-

-

2,000

6,000

4,000

20,000

3,500

500

1,000

4,000

His drawings during the year were Rs 2,000 .Depreciate Furniture by 10% and

provided a reserve for bad and doubtful debts at 5% on sundry debtors. Prepare a

statement showing profit or Loss for the year 2001

8.Mohan maintain books on single entry. He gives you the following information

Particulars

Jan1,2006

Rs

Dec31.2007

Rs

Cash in hand

Cash at bank

Stock

Furniture

Sundry debtors

Creditors

2,000

1,000

16,000

3,000

21,000

5,000

3,000

2,000

18,000

5,000

30,000

7,000

He has taken Rs 4,000 from the business to meet his personal expenses. calculate

the profit Or Loss for the year 2006

9.Mr.Kumar started business with Rs 2,15,000 as capital on 1.4.2005.During the

year he has withdrawn at the rate of Rs 2,000 per month. He introduced Rs 25,000

as additional capital. His position on 31.3.2006 was as follows:

Bank balance 10,000

Stock 95,000


Machinery 35,000

Cash in hand 25,000

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Prepaid expenses 2,000

He keeps his books under single entry system. Find out his profit or loss for the year

2005-2006

10.Thiru Parthasarathy keeps his books by ‘single entry system’. His position on

1.4.2006 and 31.3.2007 was as follows:

Particulars

1.4.2006

Rs

31.3.2007

Rs

Cash

Bank balance

Stock

Sundry debtors

Furniture

Sundry creditors

500

10,000

7,000

30,000

6,000

6,000

6,000

15,000

10,000

40,000

6,000

12,000

He introduced an additional capital of Rs 8.000,During the financial year .He

withdrew Rs14,000 for domestic purposes. Find out the Profit or Loss for the year

ended 31.3.2007

11.Mrs.vandana started business with Rs 1,20,000 as capital 1.4.2004,During the

year she has withdrew at the rate of 1,000 per month. She introduced Rs 20,000 as

additional capital. Her position on 31.3.2005 was as follows:

Bank 18,000

Stock 80,000


Furniture 5,000

Cash in hand 3,500


Expenses outstanding 1,500

She keeps her books under single entry system Determine her profit or loss for the

year ended 2004-2005

12.Mr.Ragupathi keeps his books by incomplete single entry .His assets and

liabilities on 1.1.2004 and 31.3.2004 stood as follows;

Particulars

1.1.2004

Rs

31.12.2004

Rs

Cash in hand

Sundry debtors

Investment

10,000

80,000

20,000

15,000

95,000

20,000

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Furniture

Sundry Creditors

Stock

5,000

50,000

35,000

5,000

60,000

65,000

He introduced an additional capital of Rs 20,000.He withdrew Rs 40,000 for

domestic purposes. Find out the Profit or Loss for the year 2004

13.Mrs.Rani started business with Rs 1,20,000 as capital on 1.4.2003.During the

year she has withdrawn at the rate of 1,000 per month .She introduced Rs 20,000 as

additional capital. His position on 31.3.2004 was as under:

Bank balance 8,000

Stock 80,000


Furniture 2,500

Cash in hand 2,000


Expenses outstanding 1,000

She keeps her books under single entry system. Determine her profit or loss for the

year 2003-2004

14.Mrs . Praveena keeps her books on single entry basis. Find out the Profit or loss

for the period ending 31.3.2005.She started business with Rs 2,35,000 on 1.40.2004

.On 31.3.2005 her position was as under:

particulars Rs

Bank balances (Dr)

Cash in hand

Stock

Sundry debtors

Plant & machinery

Furniture

Sundry creditors

45,000

3,000

40,000

76,000

2,00,000

1,00,000

1,80,000

Mrs.Praveena had withdrawn Rs 1,00,000 for her personal use and had introduced

fresh capital of Rs 40,000,A provision of 5% on debtors is necessary for doubtful

debs .Write off depreciation on Plant & machinery at 10% and Furniture at 5%

15.Mr.Rajan keeps his books by single entry .he started business on 1st April 2003

with Rs 3,25,000.On 31st March 2004 his position was as under:


Cash in hand

Sundry creditors

Cash at bank

Bills payable

Furniture

3,000

50,000

25,000

12,000

40,000

Plant & machinery

Sundry debtors

Stock

Bills receivable

2,00,000

1,50,000

1,50,000

15,000

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Additional capital Rs 40,000 and Drawings Rs 15,000.ascertain his profit or loss for

the year 2003-2004

16.Mr.Rajaram keeps his books by incomplete single entry. He started business on

01.01.2005.His assets and liabilities on 01.10.2005 and 31.12.2005 stood as follows

Particulars

1.1.2005

Rs

31.12.2005

Rs

Cash in hand

Sundry creditors

Furniture

Sundry debtors

stock

5,000

15,000

15,000

75,000

35,000

60,000

30,000

15,000

1,00,000

50,000

He introduced an additional capita; of Rs 15,000 during the year .He withdrew Rs

35,000 for domestic purposes. Find out the his profit or loss for the year 2005

17.Mr.Joseph started business with Rs 3,00,000 on 1st April,2003.His books are kept

under incomplete double entry.

On 31st March 2004 his position was as under:

Stock 10,500

Furniture 2,20,000

Cash 40,500


Sundry creditors 2,00,000


Loan 25,000

Investment 2,50,000

Mr.Joseph withdrew Rs 40,000 for his personal use and he introduced fresh capital

of Rs 1,00,000.depreciate furniture by 10% per annum and provide reserve for bad

and doubtful debts at 5% on sundry debtors. Ascertain profit or loss made for the

year ended 31st March 2004

18.Mr.David started business with Rs 4,00,000 on 1st April 2003.is books are kept

under incomplete double entry system.

On 31st March 2004 his position was as under:

Sundry creditors 3,00,000

Cash is hand 10,000

Cash at bank 60,000



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Furniture 1,00,000

Plant & machinery 4,00,000


Stock 1,50,000


He introduced an additional capital of Rs 45,000 during the financial year .he

withdrew Rs 20,000 for domestic purposes

Ascertain the profit or loss for the year ended 31st March 2004

20 marks(Q.No 53 compulsory sums)

1 Kannan started business with Rs 2,62,500 on 1.4.2003 .he bought furniture for Rs

42,000 .he borrowed Rs 52,500 from Bank. He withdrew for personal expenses Rs

75,600.

From the details given prepare final accounts on 31.3.2004:

Credit sales 7,00,000

Cash sales 3,50,000

Credit Purchases 7,87,500

Cash Purchases 1,40,000

Wages 15,750

Discount Allowed 3,500

Salaries 17,500

Business Expenses 14,000

Advertisement 17,500

Closing sundry debtors 2,62,500


Closing stock 1,22,500

Closing cash balance 1,64,150

Depreciation to be provided on furniture @ 10%

2. Mr.Baskar keeps his books on incomplete double entry. From the following

details prepare Trading and profit and Loss Account For the year ended 31st March

2006 and Balance sheet as on that date.

Particulars

1.4.2005

Rs

31.3.2006

Rs

Stock

Sundry debtors

Cash

Furniture

Sundry Creditors

50,000

1,25,000

12,500

5,000

75,000

25,000

1,75,000

20,000

5,000

87,500

Other details:

Cash received from debtors 2, 67,500

Cash paid to creditors 2, 25,000


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Sales returns 7,500


Discount allowed 5,000

Sundry expenses 17,500

Drawings 20,000

Cash sales 2,500

3. Mr.James maintained his account books on single entry system. On 1.4.2008 his

capital was Rs 3, 50,000

Additional information;

Opening stock 1, 88,000

Cash received from sundry debtors 38,000

Cash sales 1, 50,000

Cash paid to sundry Creditors 45,000


Opening Sundry creditors 1, 40,000

Business expenses 90,000

Freehold premises (31.3.2009) 3, 00,000

Furniture (31.3.2009) 15,400

Closing stock 1, 95,000

Closing Sundry debtors 60,000

Closing sundry creditors 1, 50,000

Closing Cash Balance 9,600

Prepare Trading and profit and loss account for the year ended on 31.3.2009 and

Balance sheet as on that date.

4.Raj maintained his books by single entry system .from the following details

prepare Final accounts for the year ending 31.3.2003.Depreciate machinery at 10%

p.a

Cash book

Receipts Rs payments Rs

To Balance b/d

To sales

To Debtors

16,000

80,000

60,000

1,56,000

By Purchases

By Creditors

By general Expenses

By Wages

By Drawings

By Balance c/d

28,000

40,000

12,000

4,000

16,000

56,000

1,56,000

Other Details:

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31.3.2002 31.3.2003

Rs Rs

Debtors 18,000 ?

Creditors 28,800 ?

Stock 20,000 32,000

Machinery 80,000 80,000

Furniture 6,000 6,000

Additional details:



Credit sales 68,800

Credit purchases 28,200

5.From the following information , prepare Trading and profit and Loss Account

and Balance Sheet as on 31.3.2005

Opening capital Rs 54,000

Particulars as on 31.3.2005

particulars Rs

Sundry debtors

Sundry Creditors

Cash

Stock

Furniture

Computers

85,000

37,000

80,000

75,000

5,000

35,000

Drawings 12,000



Cash paid to suppliers 1,00,000

Cash received from customers 2,00,000


Sales Returns 8,000

Salary 10,000

Rent 12,000

Charge depreciation on Furniture & Computers 10%

6.Mr.amy maintains his books under incomplete double entry system. From the

following particulars you are required to prepare Trading and Profit and Loss

account and Balance Sheet as on 231.3.2008

Particulars

1.4.2007

Rs

31.3.2008

Rs

Stock

Sundry debtors

Cash

Furniture

75,000

1,87,500

18,750

7,500

37,500

2,62,500

30,000

7,500

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Sundry Creditors 1,12,500 1,31,250

Other details:

Drawings 30,000




Cash paid to creditors 3,37,500

Cash received from debtors 4,01,250

Sales returns 11,250

Purchases Returns 3,750

Cash Sales 3,750

7.Mr.Apoorva commenced business on 1.4.2004 with a capital of Rs 75,000.he

immediately bought Furniture for Rs 12,000 .During the year he borrowed Rs

15,000 from his wife as loan. He has withdrawn Rs 21,600 for his family expenses.

From the following particular you are required to Prepare Trading and Profit and

Loss account and Balance sheet as on 31.3.2005

Cash received from sundry debtors 1,21,000

Cash paid to sundry creditors 1,75,000

Cash sales 1,00,000

Cash purchases 40,000

Carriage inwards 4,500


Salaries 5,000

Office expenses 4,000

Advertisement 5,000

Closing Balance of sundry Debtors 75,000

Closing balance of sundry Creditors 50,000

Closing stock 35,000

Closing Cash balance 43,900

Provide 10% depreciation on Furniture

8. From the following details prepare Trading and profit and Loss Account For the

year ended 31st March 2006 and Balance sheet as on that date.

Particulars

1.4.2004

Rs

31.3.2005

Rs

Stock

Sundry debtors

50,000

1,25,000

25,000

1,75,000

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Cash

Furniture

Sundry Creditors

12,500

5,000

75,000

20,000

5,000

87,500

Other details:





Cash received from sundry Debtors 2,67,500

Drawings 20,000

Sales Returns 7,500


Charge depreciation on Furniture @ 5%

9.Mr.John maintain his books under incomplete Double entry system. You are

required to Prepare Trading and Profit and Loss account and Balance sheet as on

31.3.2002

.

Particulars

1.4.2001

Rs

31.3.2002

Rs

Stock

Machinery

Cash

Sundry debtors

Sundry Creditors

75,000

7,500

18,750

1,87,500

1,12,500

37,500

7,500

30,000

2,62,500

1,31,250

Other details:



Sales returns 11,250




General expenses paid 26,250

Drawings 30,000

10.The books of Mr.Sankar revalued the following information on 1.4.2006


Capital

Sundry Creditors

83,030

9,010

92,040

Goodwill

Furniture

Sundry Debtors

Cash at bank

18,540

14,010

46,830

12,660

92,040

Other information:

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Drawings 81,600

Salaries paid 18,300

Rent paid 9,450



Closing stock (31.3.2007) 32,000

Sundry debtors (31.3.2007) 56,700

Sundry Creditors (31.3.2007) 16,000

Cash at Bank (31.3.2007) 21,570

Prepare Trading account and Profit and Loss account and a Balance sheet as on

that 31.3.2007

11.Mr.Kavibharathi maintain her accounts books on single entry system. On

1.4.2003 her capital was Rs 2,50,000

Additional Information:

Opening stock 1,25,000


Cash sales 1,00,000



Opening sundry creditors 91,500


Freehold premises (31.3.2004) 2,00,000

Furniture (31.3.2004) 3,600


Closing sundry debtors 40,000


Closing cash balance 27,500

Prepare Trading and profit and Loss account For the year ended on 31.3.2004 and


12.Mr.Arul maintained his account books on single entry system. On 1.4.2005 his

capital was Rs 5,00,000

Opening Stock 2,50,000


Cash sales 2,00,000



Opening sundry creditors 1,83,000

Business expenses 1,20,800

Land and Building (31.3.2006) 4,00,000

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Furniture (31.3.2006) 7,200



Closing Sundry debtors 80,000




13. From the following details prepare Trading and profit and Loss Account For the

year ended 31st March 2005 and Balance sheet as on that date.

Particulars

1.4.2004

Rs

31.3.2005

Rs

Sundry creditors

Furniture

Cash

Sundry Debtors

Stock

37,500

2,500

6,250

62,500

25,000

43,750

2,500

10,000

87,500

12,500

Other details:






Drawings 10,000

Sales Returns 3,750


Charge depreciation on Furniture @ 5% p.a

14. Mr.X maintain his books under incomplete Double entry system. You are

required to Prepare Trading and Profit and Loss account and Balance sheet as on

31.3.2005

Particulars

1.4.2004

Rs

31.3.2005

Rs

Stock

Sundry debtors

Cash

Furniture

Sundry Creditors

50,000

1,25,000

12,500

5,000

75,000

25,000

1,75,000

20,000

5,000

87,500

Other details:


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Drawings 20,000

Sales Returns 7,500


Cash sales 2,500

15. Mr.Venugopal maintain his books on incomplete double entry .On 1.4.2003 his

capital was Rs 2, 62,500

Additional information:

Opening stock 1,31,250



Closing sundry debtors 42,000

Opening sundry creditors 96,075



Cash sales 1,05,000



Land and Buildings (31.3.2004) 2,10,000

Furniture (31.3.2004) 3,780




16.Mr.Sundar keeps his books on incomplete double entry .from the following

details, Prepare trading and profit and Loss account for the year ended 31st March

2004 and balance sheet as on that date:

Particulars

1.4.2003

Rs

31.3.2004

Rs

Stock

Sundry debtors

Cash

Furniture

Sundry Creditors

1,10,000

2,75,000

27,500

11,000

1,65,000

55,000

3,85,000

44,000

11,000

1,92,500

Other details:

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Drawings 44,000






Cash sales 5,500

CHAPTER-3

DEPRECIATION

5 MARKS (Q.NO:40)

1.Find out the rate of Depreciation under straight line method:

Cost of the plant Rs 2,30,000

Installation charges Rs 20,000

Expected life in years 10years

Scrap value Rs 50,000

2.From the following particulars find out the rate of depreciation under straight line

method:

Cost of fixed assets Rs 20,000

Residual value Rs 2,000

Expected life 10 Years

3.M/S Vikram & co purchased a plant for Rs 5,00,000 Depreciation is to be provided

annually according to the straight line method. The useful life of the plant is 10 years and

the residual value is Rs 50,000.Find out the rate of depreciation

4.A Machine was bought for Rs 2,00,000 on 1.1.2000.This is expected to last for five years

Estimated scrap at the end of five years is Rs 40,000.Find out the rate of Depreciation

under straight line method.

5.A machine was purchased for Rs 3,00,000 on 1.4.2005.This is expected to last 10 years

.Estimated scrap at the end of 10 years Rs 30,000.Find out the rate of Depreciation under

straight line method.

6.From the following information find out the rate of depreciation under straight line

method

Cost of the plant Rs 2,10,000


Expected life in years Rs 10years


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7.rakshitha Ltd purchased Plant and machinery for Rs 32,000.this is expected to last for 10

years. Estimated scarp value is Rs 3,200. Find out the rate of depreciation under straight

line method.

8.A company purchased machinery for Rs 1,00,000 its installation costs amounted to Rs

10,000.Its estimated life 5 years and the scarp value is Rs 5,000.calculate the amount and

rate of depreciation under straight line method.

9.Vasanth & co purchased a machine for Rs 1,25,000 its useful life is 10 years and the scrap

value is Rs 25,000.Determine the rate of depreciation under the straight line method


method.

Cost of fixed asset Rs 50,000

Residual value Rs 5,000

Estimated life 10 years


method.

Cost of assets Rs 82,000



Expected life in years 10 Years

12.Find out the rate of depreciation under straight line method

Cost of plant Rs 1,30,000


Expected life in year 10 years


13. Find out the rate of depreciation under straight line method

Cost of plant Rs 4,60,000


Expected life in year 10 years

Scrap value Rs 1,00,000

14.Gokul & co purchased a machinery for Rs 48,000 Its useful life 10 years and the scrap

value is Rs 4,800.determine the rate of depreciation under the straight line method.

15. M/S Victory & co purchased a plant for Rs 5,00,000 Depreciation is to be provided

annually according to the straight line method. The useful life of the plant is 10 years and

the residual value is Rs 50,000.Find out the rate of depreciation

16.A limited company purchased a machine for Rs 12,000 Its useful life 10 years and the

scrap value is Rs 1,200 Find out the amount of Depreciation and rate of depreciation under

the straight line method

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17.A company purchased a machine for Rs 15,00,000 Its useful life is 10 years and the scrap

value is Rs 3,00,000 .determine the rate of depreciation under the straight line method

18. From the following particulars find out the rate of depreciation under straight line

method.

Cost of assets Rs 10,00,000


Expected life in years 10 Years

12 MARKS (Q.NO:49)

1.On 1.10.2000 a company purchased a plant for Rs 6,00,000 .They spend Rs 40,000 on its

erection The firm writes off Depreciation at the rate of 20% on Reducing Balance method.

The books are closed on 31st March every year. Prepare Plant account and Depreciation

account

2.Prakash Limited Company purchased a machine for Rs 3,00,000 on 1.4.2006.After having

used it for three year , it was sold for Rs 2,30,000.Depreciation is to be provided at 10% p.a

on straight line method. Accounts are closed on 31st March every year.

Prepare machinery account and Depreciation account

3.Arul & co purchased a machinery for Rs 5,00,000 on 1.4.2005.after having used it for

three years, it was sold for Rs 3,50,000 Depreciation is to provided at 10% p.a under

Diminishing Balance method. Accounts are closed on 31st March of every year

Prepare Machinery account and Depreciation account.

4.M& co bought a plant for Rs 4,70,000 on 1.7.2001.They spend Rs 30,000 on repairs and

installed the plant. Depreciation is Written off at 10%p.a on the straight line method. On

30.9.2003 this was sold for Rs 3,50,000. Accounts are closed on 31st March of every year

Prepare Plant account and Depreciation account

5.A firm purchased a machinery for Rs 4,60,000 on 1st July 2004.It spend Rs 40,000 on the

repairs and installed the machinery .Depreciation is written off at 10% p.a. On diminishing

balance method. after three years the machinery was found to be unsuitable and sold for Rs

4,10,000.

Prepare machinery account and Depreciation account for three years, assuming that the

accounts are closed on 31st March every years.

6.Jayalakshmi limited Company purchased a machinery for Rs 5,00,000 on 1st July 2006.It

is depreciated at 10% per annum on straight line method. Having became obsolete it was

sold for Rs 3,80,000 on 31.3.2009

7.Amritha &co Purchased a Machinery for Rs 64,000 on 1st April 1996.They spend Rs

28,000 on the repairs and installed the same. depreciation is written off at 10% p.a on the

straight line method.On 30th June 1998 the machinery was found to be unsuitable and sold

for Rs 61,000.assume that the accounts are closed on 31st December every year.

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Prepare machinery Account and Depreciation account for the three years

8.Nivetha manufacturing Company purchased on 1st April 2006 machinery for Rs 2,90,000

and spend Rs 10,000 on its installation .after having used it for three years it was sold for

Rs 2,00,000 .depreciation is to be provided every year at the rate of 15% p.a on the Fixed

installation method. Assuming that the financial year closes on March 31st For the first

three years pass the necessary accounts.

9.Balaji Ltd purchased a machinery for Rs 3,00,000 on 1st October 2001.It is depreciated at

10% p.a On straight line method. Having became obsolete it was sold for Rs 2,00,000 on

31.3.2004

Prepare machinery account and Depreciation account for three years. Accounts are closed

on 31st March every year

10.Parasuram company purchased on 1st April 2004 machinery for Rs 1,00,000.After having

used it for three years it was sold for Rs 85,000.depreciation is to be provided every year at

the rate of 10% per annum on fixed installment method. Books are closed on 31st March

every year. Prepare machinery account and Depreciation account for three years.

11.Sri & co Purchased a machinery worth Rs 3,00,000 on 1st October 2002.They spent Rs

20,000 on its erection. The firm writes off depreciation at the rate of 10% on the straight

line method. The books are closed on 31st March every year.

Prepare Machinery account and Depreciation account for first three years.

12.Sakthi Ltd purchased a machine for Rs 2,00,000 on 1.4.2002.after having used it for

three years, it was sold for Rs 1,45,000.Depreciation is to be provided at 10% per annum.

On straight line method. Accounts are closed on 31st March every year.

Prepare Machinery account and Depreciation account for three years.

13.A garment company purchased a plant on 1st April 2001 for Rs 2,00,000.after having

used it for three years it was sold for Rs 1,60,000.Depreciation is to be provided at 10% p.a

On fixed installment method. Accounts are closed on 31st March every year.

Prepare Plant account and Depreciation account for first three years.

14.On 1.4.2001 a Machinery was purchased for Rs 4,00,000 .On 1.10.02 a new machine

costing Rs 2,40,000 was purchased .On 30.9.2003 the machinery purchased on 1.4.2001

having became obsolete was sold Rs 2,40,000 the accounting years ends on 31st March

every year and depreciation is to be provided At 10% p.a on straight line method. Prepare

machinery account and Depreciation account for 3 years.

15.Tata Ltd purchased a machinery for Rs 1,00,000 on 1.1.2003 On 30.6.2004 another

machinery was purchased for Rs 70,000v on 30th September 2005 the first machinery was

sold for Rs 57,000.depreciation is to be provided at 10% p.a on straight line method .The

accounts are closed on 31st December every year.

Prepare Machinery account and Depreciation account for first three years.

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16.Ramulu Ltd Purchased a machine for Rs 3,75,000 on 1st July 2002 It is depreciated at

20% p.a on straight line method for three years .having became obsolete it was sold for Rs

75,000 on 31.3.2005.

Prepare Machinery account and Depreciation account for first three years. Accounts are

closed on 31st March every year.

17.A Company purchased a machine for Rs 4,00,000 on 1.4.2001 .after having used it for

three years it was sold for Rs 2,60,000.depreciation is to be provided at 105 p.a on straight

line method. Accounts are closed on 31st march of every year.

Show the calculation of profit or loss on sale of the machine .Prepare machinery .Prepare

machinery account and depreciation account.

18.A company purchased a machinery for Rs 5,00,000 on 1.4.2001 on 1.10.2002 another

machinery was purchased for Rs 3,00,000.depreciation is to be provided at 10% p.a under

Diminishing Balance method .accounts are closed on 31st March of every year. Prepare

machinery .Prepare machinery account and depreciation account.

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CHAPTER-4

RATIO ANALYSIS

5 MARKS(Q.no:41)

1.Calculate stock Turn over ratio:

Opening stock Rs 15,000

Closing stock Rs 25,000

Purchases Rs 60,000

2.From the following information calculate Debt equity Ratio:

Debentures Rs 2,00,000

Loan from Banks Rs 1,00,000

Equity share capital Rs 1,25,000

Reserves Rs 25,000

3.From the following information calculate Capital turn over ratio:

Sales Rs 3,75,000

Sales Returns Rs 25,000


Long term loan Rs 50,000

Reserves Rs 25,000

4.Compute Debtors turn over ratio

Total sales Rs 7,50,000

Sales returns Rs 50,000

Opening debtors Rs 1,17,000

Closing debtors Rs 83,000

5.Calculate capital Turn over ratio:

Sales Rs 10,20,000



Preference Share capital Rs 50,000

Loans Rs 25,000

Reserves Rs 25,000

6.Calculate Fixed assets Turnover ratio:

Sales Rs 6,00,000

Sales returns Rs 2,00,000

Fixed assets Rs 2,00,000

7.From the following information determine the stock Turnover ratio



Purchases Rs 95,000

8.From the following information calculate Debts equity ratio:


Loan from banks Rs 2,00,000

6% Debentures Rs 5,00,000

Reserves Rs 50,000

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9.Calculate Liquid Ratio

Current assets Rs 20,000

Stock Rs 3,000

Prepaid Expenses Rs 1,000

Current liabilities Rs 8,000

10.Calculate creditors turnover ratio from the following:

Credit purchases Rs 1,50,000

Opening creditors Rs 36,000

Closing creditors RS 24,000

11.From the following information calculate capital turnover ratio

Sales Rs 6,20,000



Loans Rs 50,000

Reserves Rs 50,000

12.Calculate stock turnover ratio from the following

Cost of goods sold Rs 13,50,000

Stock at the beginning of the year Rs 2,00,000

Stock at the end of the year Rs 2,50,000

13.calculate the Capital turn over ratio from the following information:

Cash sales Rs 4,00,000

Credit sales Rs 3,50,000

Sales return Rs 50,000


Long term loan Rs 1,00,000

Reserves Rs 50,000

14.Calculate Capital turnover ratio from the following information:

Cash sales RS 2,00,000


Sales return Rs 25,000


Long term loans Rs 50,000

Reserves Rs 25,000

15.From the following information calculate Debt equity ratio:

Debentures Rs 2,00,000

Reserves Rs 25,000

Long term loans Rs 1,00,000


16.From the following particulars Calculate Stock turnover ratio:


Opening stock Rs 2,00,000

Closing stock Rs 2,50,000

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17.Calculate Fixed assets turnover ratio from the following:

Cash sales Rs 6,50,000


Sales returns Rs 2,50,000

Fixed assets Rs 2,20,000

Depreciation Rs 20,000

12 MARKS (Q. No : 50)

1.From the following information calculate Operating profit ratio, Operating ratio , Gross

Profit ratio , Net profit Ratio

Sales Rs 1,00,000

Dividend Received Rs 400

Gross profit Rs 30,000

Net profit Rs 26,000

Administration Expenses Rs 1,000

Selling Expenses Rs 2,000

Loss on sale investments Rs 800

2.From the following details Calculate Current ratio Liquid Ratio and absolute Liquid Ratio

Cash Rs 5,000

Debtors Rs 29,000

Bills Receivable RS 5,000

Short term investment Rs 15,000

Stock Rs 52,000

Creditors Rs 30,000

Bank overdraft Rs 14,000

Prepaid Expenses Rs 2,000

Bills payable Rs 10,000

3.From the following details calculate gross profit ratio and net profit ratio and stock turn

over ratio

Sales Rs 1,50,000





4.Calculate current Ratio and proprietory ratio from the balance sheet

Balance sheet


Share capital

Reserves

Bank overdraft

Other current liabilities

2,00,000

50,000

70,000

30,000

3,50,000

Fixed assets

Current assets

Investment (long term)

Preliminary expenses

Goodwill

1,00,000

2,00,000

30,000

10,000

10,000

3,50,000

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5.From the following calculate Gross profit , Net profit and Operating profit ratio

Sales Rs 1,00,000







6.From the following details calculate gross profit ratio, Stock turn over ratio and Net profit

ratio

Sales Rs 3,00,000





7.From the following calculate Liquidity ratios:


Share capital

Reserves

Bank overdraft

Creditors

6,300

1,200

660

1,740

9,900

Fixed assets

Stock

Debtors

Cash

5,100

2,400

660

1,740

9,900

8.From the given data calculate gross profit ratio , Net profit Ratio, Current ratio

Sales Rs 3,00,000

Current liabilities Rs 30,000




9.From the following details calculate Gross profit ratio , Stock turnover ratio, Debtors turn

over ratio

Sales Rs 3,00,000



Closing Stock Rs 62,000

Debtors Rs 30,000

10.From the following information calculate Current ratio , Liquid ratio and absolute

liquid ratio

Cash Rs 2,400

Debtors Rs 13,600

Stock Rs 18,000

Bills payable RS 3,000


Creditors Rs 5,000

11.From the following details calculate Gross profit and Net profit and Stock turn over

ratio

Sales Rs 1,50,000




Debtors Rs 15,000

Administration expenses Rs 15,000

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12.From the Following details Calculate Current ratio .Liquid ratio and Absolute liquid

ratio

Cash Rs 12,000

Bill Receivable Rs20,000

Stock Rs 44,000

Creditors Rs 92,000

Debtors Rs 1,04,000




13.From the following calculate Gross profit , Net profit and operating profit ratio:


Sales Rs 2,00,000


Selling expenses Rs 4,000

Loss on sale of Investment Rs 1,600



14.kevin Ltd provided the following information for year ending 31.3.2004.calculate Net

profit ratio .Operating profit ratio and operating ratio

Sales Rs 2,00,000

Office expenses Rs 6,000

Finance expenses Rs 3,000

Interest received Rs 500



Loss on sale of plant Rs 400


15.From the following calculate Gross profit ,net profit and Operating profit ratio

Sales Rs 1,00,000







16.From the following you are required to calculate current ratio, Liquid ratio and absolute

liquid Ratio:

Debtors Rs 5,000

Cash Rs 4,000

Bank Rs 6,000


Prepaid expenses Rs 1,000

Creditors Rs 1,000


Outstanding expenses Rs 250

Bills receivable Rs 3,000


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17.From the following calculate gross profit ratio, net profit ratio, Current ratio

Sales Rs 3,00,000




Current Liabilities Rs 30,000

18.From the following calculate gross profit , Net profit and operating profit ratio

Sales Rs 8,00,000

Office expenses Rs 50,000

Financial Expenses Rs 20,000

Interest received Rs 10,000

Gross profit Rs 3, 20,000


Loss on sale of machinery Rs 1, 60,000

20 MARKS(Q.No.55)

1.From the following balance sheet of J ltd calculate Current ratio ,Liquid Ratio, Debt equity ratio,

proprietory Ratio

Balance sheet Of J Ltd as on 31.3.2004


Share capital

Reserves

Loans

Creditors

Bank overdraft

20,000

10,000

20,000

6,000

4,000

60,000

Goodwill

Fixed assets

Stock

Debtors

Bills receivable

Cash

12,000

28,000

10,000

2,000

2,000

6,000

60,000

2.From the Trading and profit and loss account of surya Ltd.Company ascertain.

a]Gross profit ratio b]Net profit ratio c]Operating ratio d]Operating profit ratio

Dr Trading and profit and los account for the year ending 31.3.2005 Cr

particulars Rs Particulars Rs

To opening stock

To purchases

To wages

To Gross profit

To Administration

Expenses

To interest

To Loss on sale of

Machinery

To selling Expenses

To Net profit

35,000

2,25,000

10,000

1,80,000

4,50,000

10,000

5,000

2,000

10,000

1,55,000

1,82,000

By sales

By Closing stock

By Gross profit

By Dividend

4,00,000

50,000

4,50,000

1,80,000

2,000

1,82,000

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3.From the following Balance Sheet Calculate a]Current ratio b]Liquid Ratio c]absolute Liquid

Ratio d] Proprietory Ratio


Equity share capital

Preference share capital

Reserve

Debentures

Creditors

Bank overdraft

Bills payable

1,00,000

25,000

25,000

35,000

15,000

20,000

5,000

2,25,000

Machinery

Furniture

Stock

Sundry Debtors

Cash

Bills Receivable

Short term investment

Goodwill

90,000

30,000

20,000

35,000

10,000

5,000

10,000

25,000

2,25,000

4.From the following Balance sheet calculate a]Current ratio b]Liquid ratio c]absolute Liquid

Ratio d]Debtors and creditors turnover ratio




General reserve

Debentures

Bills payable

Bank overdraft

Creditors

Outstanding Expenses

55,000

15,000

25,000

35,000

3,000

3,000

8,000

6,000

1,50,000

Land & Building

Plant & Machinery

Furniture

Stock

Bills Receivable

Debtors

Short Term Investment

Prepaid expenses

Cash

20,000

22,000

3,000

47,000

10,000

23,000

5,000

1,000

19,000

1,50,000

Additional Information:

Credit sales Rs 1,65,000 Credit Purchases Rs 44,000

5.Calculate a]Current ratio b]Liquid Ratio c]Debt equity ratio d]proprietory ratio


Share capital

Reserves

Loans

Creditors

Bank overdraft

1,40,000

10,000

75,000

50,000

10,000

2,85,000

Fixed assets

Stock

Sundry Debtors

Bills receivable

Cash

Goodwill

1,30,000

30,000

60,000

20,000

10,000

35,000

2,85,000

6. From the following calculate Gross profit , Net profit and Operating profit ratio

Sales Rs 1,00,000







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7.From the following Balance sheet Calculate the i]Current ratio ii] Liquid ratio

iii]Absolute liquid ratio iv] proprietory ratio

Balance sheet as on 31st March 2006




Reserves

Debentures

Creditors

Bank overdraft

Bills payable

2,00,000

50,000

50,000

70,000

40,000

30,000

10,000

4,50,000

Machinery

Furniture

Stock

Sundry Debtors

Cash

Bills receivable

Short term investment

Goodwill

1,80,000

60,000

40,000

70,000

20,000

10,000

20,000

50,000

4,50,000

8.From the following Balance sheet of Sujata Industries Ltd Calculate a]Debt equity ratio

b]proprietory Ratio c]Current ratio d]Fixed asset ratio

Balance sheet as on 31.3.2006


Share capital

General Reserve

Debentures

Current liabilities

1,00,000

20,000

30,000

50,000

2,00,000

Fixed assets

Current assets

1,00,000

1,00,000

2,00,000

Credit Sales Rs 4,00,000

9.From the following Balance sheet Calculate i]Current ratio ii]Liquid ratio iii]Debt-equity ratio

iv]proprietory ratio

Balance sheet of Vasumathi Ltd as on 31.3.2004


Share capital

Reserves

Loans

Debentures

Creditors

Bank overdraft

20,000

10,000

16,000

8,000

10,000

4,000

68,000

Goodwill

Fixed assets

Stock

Debtors

Bills receivable

Cash

8,000

32,000

7,000

9,000

5,000

7,000

68,000

10.From the following Balance sheet Calculate i]Current ratio ii]Fixed asset turn over ratio

iii]Debt-equity ratio iv]proprietory ratio



Share capital

Reserves

6% Debentures

Sundry Creditors

Bills payable

2,00,000

40,000

60,000

75,000

25,000

Land & Buildings

Plant & Machinery

Furniture

Stock

Bills Receivable

Sundry Debtors

Cash

1,40,000

80,000

20,000

40,000

30,000

80,000

10,000

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4,00,000 4,00,000

Additional information: Sales for the year Rs 4,80,000

11.From the following Balance sheet calculate Debtors turn over ratio and Creditor turn over ratio

and Fixed asset turn over ratio



Share capital

Reserves

Creditors

6% Debentures

4,00,000

2,40,000

2,60,000

60,000

9,60,000

Land & Buildings

Plant & machinery

Stock

Debtors

Cash

3,00,000

1,60,000

2,96,000

1,42,000

62,000

9,60,000

Additional information;

Credit purchases during the year Rs 10,40,000

Credit sales during the year Rs 4,26,000

12. From the following Balance sheet Calculate i]Current ratio ii]Fixed asset turn over ratio

iii]Debt-equity ratio iv]proprietory ratio



Share Capital

General Reserve

Debentures

Creditors

Bank overdraft

2,00,000

40,000

60,000

60,000

40,000

4,00,000

Land & Buildings

Plant & Machinery

Stock

Debtors

Bills receivable

1,40,000

1,00,000

80,000

60,000

20,000

4,00,000

Additional information: Credit Sales for the year Rs 9,60,000

13.From The following Trading And profit & loss Account of a company ascertain the following ratios

a]Gross profit ratio b[Net profit ratio c] Operating Ratio d]Stock turn over ratio

Trading and profit and los account of J.J.D & Co for the year ending 31.3.2005

Dr Cr

particulars Rs Particulars Rs

To opening stock

To purchases

To Gross profit

To Administration Expenses

To selling Expenses

To Financial Expenses

To Loss on sale of Plant

To Net profit

1,99,000

11,19,000

6,80,000

19,98,000

3,00,000

60,000

30,000

8,000

3,00,000

6,98,000

By sales

By Closing stock

By Gross profit

By Dividend

17,00,000

2,98,000

19,98,000

6,80,000

18,000

6,98,000

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14.From the following Trading and Profit & loss account and The Balance Sheet find out the

Following ratios a]Gross profit ratio b[Net profit ratio c] Acid test ratio d]Stock turn over

ratio

Trading and Profit and Loss account for the year ending 31.12.2005

Particulars Rs Particulars Rs

To Opening stock

To Purchases

To Direct Expenses

To Gross profit

To Administration Expenses

To Interest

To Selling Expenses

To Net profit

10,000

50,000

5,000

50,000

1,15,000

15,000

3,000

12,000

20,000

50,000

By sales

By Closing Stock

By Gross profit

1,00,000

15,000

1,15,000

50,000

50,000



Capital

Current Liabilities

Profit and Loss A/C

1,00,000

40,000

20,000

1,60,000

Land & Buildings

Plant & Machinery

Furniture

Stock

Sundry Debtors

Bills Receivable

Cash in Hand

50,000

30,000

20,000

15,000

15,000

12,500

17,500

1,60,000

15.From the following Balance sheet calculate i] Current ratio ii]Liquid ratio iii]Absolute liquid ratio

iv]Debt equity ratio




Reserves

Debentures

Long term loan

Sundry Creditors

Bills payable

Bank overdraft

1,25,000

25,000

2,00,000

1,00,000

25,000

30,000

20,000

5,25,000

Machinery

Furniture

Stock

Sundry Debtors

Cash

Bills Receivable

Short term Investment

2,75,000

1,00,000

37,500

63,500

10,000

9,000

30,000

5,25,000

16. From the following Balance sheet calculate i] Current ratio ii]Liquid ratio iii]Proprietory

iv]Debt equity ratio



Share capital

Reserves

Loans

Creditors

Bank overdraft

70,000

5,000

37,500

25,000

5,000

1,42,500

Fixed Assets

Stock

Sundry Debtors

Bills receivable

Cash

Goodwill

65,000

15,000

30,000

10,000

5,000

17,500

1,42,500

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CHAPTER-5

CASH BUDGET

5 MARKS(Q.No 42 )

1.The opening balance of Cash on 1.4.2009 was Rs 50,000 .estimated receipts during the month were

Rs 80,000 and the estimated payments for the month were Rs 1,00,000 .determine the closing balance

on 30.4.2009

2.The opening balance of cash in January 2002 is Rs 1,50,000.The estimated cash receipts are Rs

50,000 and the estimated cash payments are Rs 30,000 .What is the opening balance of cash in

February 2002 ?

3.From the following information prepare cash budget for June 2005

Particular Amount

Rs

Cash in hand (1.6.2005) 10,000

Cash purchases-June 2005 70,000

Cash sales-June 2005 1,00,000

Purchases of furniture-June 2005 2,500

4.The opening balance of Cash In January 2007 Is Rs 90,000.The estimated receipts are Rs 1,40,000

and the estimated payments are Rs 1,00,000.Find out the closing balance of cash For January

2007

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20 Marks (Q.no 56)

1.Prepare a cash Budget for October ,November and December 2004 from the following information:

Month Sales

Rs

Purchases

Rs

Expenses

Rs

September 2004

October 2004

November 2004

December 2004

10,00,000

12,00,000

14,00,000

16,00,000

8,00,000

12,00,000

8,00,000

10,00,000

1,10,000

1,30,000

1,50,000

1,70,000


1.All sales are for cash

2.The period of credit allowed by the suppliers is one month

3.Lag in payments fro expenses is one month

4.Opening balance of cash on 1.10.2004 is Rs 90,000

5.In December an asset of Rs 4,00,000 is to be bought.

2.Prepare cash budget for the month of March, April and May 2009 from the following information:

Month Credit Sales

Rs

Credit Purchases

Rs

Office Expenses

Rs

January

February

March

April

May

50,000

75,000

1,00,000

1,25,000

1,30,000

30,000

40,000

65,000

75,000

80,000

5,000

7,000

15,000

10,000

20,000


1.Opening cash balance in March 2009 Rs 60,000

2.Period of credit allowed to customers-one month

3.period of credit allowed by suppliers –two month

4.Office expenses are payable in the same month.

5.Dividend Rs 15,000 is receivable in March 2009

3.From the following information prepare a cash budget for June, July and August 2009

Month Credit Sales

Rs

Credit Purchases

Rs

wages

Rs

April 2009

May 2009

June 2009

July 2009

August 2009

2,50,000

2,65,000

3,25,000

3,75,000

3,50,000

1,80,000

1,25,000

1,75,000

1,90,000

2,25,000

25,000

10,000

25,000

15,000

20,000


1.Opening cash balance on 1st June 2009 Rs 1,20,000

2.period of Credit allowed to customer-one month

3.period of credit allowed by suppliers –two month

4.lag in payment of wages is one month

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5.sale of machinery Rs 40,000 in July

4.Prepare a cash budget for the months of March, April and may 2005 from the following information:

Month Credit Sales

Rs

Credit Purchases

Rs

Administration and

selling expenses

Rs

January 2005

February 2005

March 2005

April 2005

May 2005

1,50,000

1,35,000

1,75,000

1,20,000

1,40,000

75,000

1,00,000

85,000

1,25,000

90,000

1,20,000

1,35,000

65,000

70,000

80,000


1.Expected cash balance on 1.3.2005 is Rs 80,000

2.Suppliers allowed a credit period of two months

3.A credit period of one month is allowed to customers

4.Expenses are paid in the same month

5.Sale of fixed assets Rs 25,000 in April

6.Purchases of fixed assets in May Rs 25,000

5.Prepare a cash budget for the month of March .April and May 2006 from the following information:

Month Credit Sales

Rs

Credit Purchases

Rs

Expenses

Rs

January 2006

February 2006

March 2006

April 2006

May 2006

2,50,000

3,00,000

4,50,000

2,00,000

3,50,000

2,00,000

3,50,000

3,00,000

4,00,000

5,00,000

50,000

60,000

70,000

80,000

70,000


1.Expected cash balance as on 1.3.2006 Rs 75,000

2.Suppliers allowed credit of two months

3.Credit of two months is allowed to the customers

4.lag in payment of expenses one month

5.Sale of fixed assets in the month of April Rs 95,000

6.From the following information , prepare a cash budget for the month of March, April and May 2008

Month Credit Sales

Rs

Credit Purchases

Rs

Office Expenses

Rs

January 2008

February 2008

March 2008

April 2008

May 2008

60,000

70,000

80,000

75,000

72,000

40,000

30,000

35,000

50,000

55,000

12,000

10,000

9,000

12,000

11,000


1.Opening balance of cash on 1.3.2008 is Rs 15,000

2.Credit allowed by suppliers is two months

3.Credit allowed to customers is one month

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4.Office expenses are payable in the same month

5.Interest payable in April Rs 3,500

7.Prepare a cash budget for the month of august and September 2004 from the following information:

Month Cash sales

Rs

Credit Sales

Rs

Credit Purchases

Rs

wages

Rs

Selling

expenses

Rs

June 2004

July 2004

August 2004

September 2004

75,000

60,000

50,000

45,000

1,87,000

1,92,000

1,94,000

1,26,000

1,24,800

1,83,600

1,46,000

1,73,400

12,000

14,000

11,000

10,000

8,600

4,800

6,600

7,500


1.Suppliers allowed two months credit

2.Customers were given one month credit

3.Wages are payable in the same month and delay in payment of selling expenses was one

month

4.Commission receivable Rs 11,000 in august

5.estimated cash balance as on 1st august Rs 9,100

8. From the following information prepare a cash budget for June, July and August 2006

Month Credit Sales

Rs

Credit Purchases

Rs

wages

Rs

April 2006

May 2006

June 2006

July 2006

August 2006

2,25,000

2,55,000

3,00,000

3,60,000

3,15,000

1,60,000

1,05,000

1,50,000

1,70,000

2,10,000

20,000

15,000

18,000

12,000

14,000


1.Opening cash balance on 1st June 2006 Rs 2,00,000

2.Period of Credit allowed to customer-one month

3.Period of credit allowed by suppliers –two month

4.lag in payment of wages is one month

5.Sale of Machinery Rs 50,000 in July

6.Commission payable in August is Rs 20,000

9.Prepare cash Budget for the month Of June ,July and August 2007 From the following information

1.Opening cash balance in June Rs 7,000

2.Cash sales for June Rs 20,000:July Rs 30,000: And August Rs 40,000

3.Wages payable Rs 6,000 every month

4.Interest receivable Rs 500 in the month of august

5.Purchases of Furniture for Rs 16,000 in July

6.Ccash purchases for June Rs 10,000: July Rs 9,000 and August Rs 14,000

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10. Prepare a cash budget of Balachandar Ltd for the month of January to March 2004 from the

following information:

Month Credit Sales

Rs

Credit Purchases

Rs

Expenses

Rs

2003

November

December

2004

January

February

March

2,50,000

3,00,000

4,50,000

2,00,000

3,50,000

2,00,000

3,50,000

3,00,000

4,00,000

5,00,000

50,000

60,000

70,000

80,000

70,000


1.Expected cash balance as on 1.1.2004 Rs 75,000

2.Suppliers allowed credit of two months

3.Credit of two months is allowed to the customers

4.lag in payment of expenses one month

5.Sale of fixed assets in the month of February Rs 95,000

11.prepare cash Budget for the month of April ,May and June 2006 from the following information

Month Sales

Rs

Purchases

Rs

Expenses

Rs

March 2006

April 2006

May 2006

June 2006

4,00,000

5,00,000

6,00,000

8,00,000

3,00,000

5,00,000

3,00,000

5,00,000

40,000

60,000

70,000

90,000


1.All sales are for cash

2.Lag in payment of expenses is one month

3.The period of credit allowed by the suppliers is one month

4.Interest receivable is Rs 10,000 in the month of April 2006

5.In June 2006 Furniture For Rs 20,000 is to be purchased

6.Opening cash balance On 1st April 2006 is Rs 60,000

12.Prepare cash Budget for the months of June .July and August 2004 from the following information:

1.Opening cash balance in June Rs 21,000

2.Cash sales for June Rs 60,000:July Rs 90,000:and August Rs 1,20,000


4.Interest receivable Rs 1,500 in the month of August

5.Purchases Of machinery For Rs 48,000 in July

6.Cash purchases for June Rs 30,000:July Rs 27,000:August Rs 42,000

13.From the following information prepare a cash Budget for three months from October 2003

1.Opening cash balance in October Rs 6,000

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2.Cash sales :October Rs 50,000:November Rs 40,000:December Rs 30,000

3.Credit purchases :September Rs 20,000:October Rs 24,000:November Rs 28,000:December Rs

32,000

The period of credit allowed by suppliers is one month

4.Dividend to be received in December Rs 8,000

5.Sale of an old assets for Rs 24,000 during November

14. Prepare cash Budget for the months of June .July and August 20045from the following

information:

1.Opening cash balance in June Rs 1,00,000

2.Cash sales for June Rs 60,000:July Rs 80,000:and August Rs 1,00,000


4.Interest receivable Rs 5,000 in the month of July

5.Purchases Of machinery For Rs 25,000 in the month of August

6.Cash purchases for June Rs 25,000:July Rs 40,000:August Rs 30,000

15. Prepare cash budget for the month of March, April and May 2005 from the following information:

Month Credit Sales

Rs

Credit Purchases

Rs

Office Expenses

Rs

January

February

March

April

May

75,000

85,000

1,00,000

1,20,000

1,05,000

20,000

35,000

17,000

24,000

22,000

7,000

10,000

12,000

9,000

10,000


1.Opening cash balance in March 2005 Rs 50,000

2.Period of credit allowed to customers-one month

3.Period of credit allowed by suppliers –two month

4.Office expenses are payable in the same month.

5.Dividend Rs 10,000 is receivable in March 2005

6.Furniture Rs 15,000 is to be purchased in May 2005

CHAPTER-6

PARTNERSHIP-BASIC CONCEPT

5 MARK Q.NO 42

1.Three years purchases of the last four years average profit is agreed as the value of Goodwill. The

profit and Losses for the last four years are

Ist year Rs 50,000

II nd year Rs 80,000

III rd year Rs 30,000 (Loss)

Iv th Year Rs 60,000

Calculate the amount of Goodwill

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2.Calculate the amount of Goodwill on the basis of three years purchases of the five years average

profits. The profits for the last five years

Rs

2005 20,000

2006 24,000

2007 36,000

2008 19,000

2009 26,000

3.The goodwill is to be valued at two years purchases of last four years average profits. The profits

were Rs 40,000 Rs 32,000 Rs 15,000 and Rs 13,000 respectively. Find out the value of

goodwill

4.Calculate the amount of Goodwill on the basis of two years purchases of the last four years average

profits The profits and loss of the last four years are

2003 profit 20,000

2004 profit 30,000

2005Loss 6,000

2006 profit 16,000

5.Mohan and Murugan are partners sharing profits and losses equally. Mohan draws regularly Rs

2,000 at the beginning of every month during the year. Murugan draws regularly Rs 3,000 at the end

of every month during the year. calculate the interest on their drawings at 10% per annum.

6.Calculate the amount of Goodwill on the basis of three years purchases of the last four years average

profits. The profits for the last four years are

2001 Rs 12,000 2002-Rs 18,000 2003Rs-16,000 2004 Rs 14,000

7.Surendar and Amrith are two partners sharing profits and losses equally. Surendar drew regularly

Rs 2,000 at the end of every month during the year. Amrith draws Rs 4,000 regularly at the beginning

of every month during the year .calculate interest on their drawings at 10% p.a

8.Calculate the amount of goodwill on the basis of three years purchases of the five years average

profits .The profits for the last five years are :

Rs

2001 15,000

2002 22,000

2003 36,000

2004 18,000

2005 17,000

9.Abi and Sibi had capitals of Rs 60,000 and Rs 40,000 respectively on 1.4.2002. Sibi withdrew Rs

5,000 from his capital on 30.09.2002.calculate interest on capital at 6% for the year ending 31st March

2003

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10.Kamala and Vimala are two partners sharing profits and losses equally. Kamala draws Rs 1,800

regularly in the middle of each month during the year 2006.Vimala draws Rs 10,800 at the end of each

half year. Calculate interest on drawings at 5% p.a

11.Charles and Newman are partners. Charles draws Rs 2,700 regularly in the middle of each month

during the year 2004.Newman draws Rs 5,400 at the end of each half year. Calculate interest on their

drawings at 5% p.a

12.A and B are partners sharing profits in the ratio of 3:2.a draws Rs 6,000 regularly at the end of

every month during the year 2004.B draws Rs 20,000on 1.4.2004, Rs 12,000 on 30.6.2004, Rs 16,000

on 1.10.2004, and Rs 8,000 on 30.11.2004.Calculate interest on their drawings at 6% p.a

13.V and S are two partners sharing profits and losses as 7:5.V draws regularly Rs 400 at the end of

every month during the year 2004.S draws Rs 800 regularly at the beginning of every month during

the year. Calculate interest on their drawings at 10 % p.a

14.Calculate the amount of Goodwill on the basis of two years purchases of the last four years

average profits. The profits /loss for the four years are

2001 profit Rs 10,000

2002 profit Rs 26,000

2003 loss Rs 12,000

2004 Profit Rs 36,000

15.Sulochana and Archana started business on April 1,2004 with capitals of Rs 2,00,000 and Rs

1,50,000 respectively. Sulochana introduced Rs 50,000 as additional capital on October 1 2004.Interest

on capital is to be provided at the rate of 5% p.a. Calculate interest payable to Sulochana and Archana

for the year ending March 31,2005

16.Sivagami and Sundari are partners profits and losses equally. Sivagami draws regularly Rs 3,000

at the beginning of every month during the year. Sundari draws regularly Rs 2,000 at the end of every

month during the year. Calculate interest on their drawings at10% p.a

12 MARKS (Q.NO 51)

1.M and R are partners sharing profits in the ratio 3:2 with capital of Rs 50,000 and Rs 40,000

respectively. Interest on capital is agreed at 8% per annum. Interest on drawings is fixed at 10% p.a.

The drawings of the partners M and R were Rs 15,000 and Rs 10,000 Respectively. The interest for M

Rs 750 and R for Rs 500.M is entitled to a salary of Rs 12,000 p.a and R is entitled to a commission of

10% on the net profit before charging such commission. The net profit of the firm before making

adjustment was Rs 60,000 for the year ended 31.3.2005

Prepare profit and loss Appropriation account and Capital accounts

2.Sathyaraj and Dharmaraj are partners sharing profits and losses equally. Their capitals on 1.4.2007

were Rs 1,00,000 and Rs 80,000 respectively. Interest on capital is agreed at 6% p.a. Interest on

drawings is fixed at 8% p.a The drawings of the partners were Rs 15,000 and Rs 10,000 respectively.

Interest on drawings were Sathyaraj and Dharmaraj Rs 600 and Rs 400 respectively. Sathyaraj is

entitled to a salary of Rs 12,000 p.a and Dharmaraj is entitled to get a commission of Rs 3,420. The

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net profit of the firm before making the above adjustment was Rs 56,000 for the year ended on 31st

March 2008

Prepare profit and loss Appropriation account and Capital accounts of the partners

3.Amar and Akbar are partners in a firm sharing profits and losses in the ratio of 3:2. Their capital on

1.4.2004 were Rs 1,50,000 and Rs 1,00,000 respectively. The net profit of the firm for the year ended

31st March2005 before making adjustment for the following items was Rs 70,000 .Drawings of the

partners during the years were Amar Rs 15,000 and Akbar Rs 10,000

Their partnership deed provided for the following:

i]Interest on capital at 6% p.a

ii]Interest on drawings at 8% p.a being Amar Rs 600 and Akbar Rs 400

iii]Amar and Akbar to get a salary of Rs 10,000 each p.a

iv]Amar to get a commission of Rs 3,600

Show the profit and loss Appropriation account and Capital accounts of the partners

4. A and B are partners in a firm sharing profits and losses in the ratio of 3:2. Their capital on

1.4.2003 were Rs 1,60,000 and Rs 1,20,000 respectively. The net profit of the firm for the year ended

31st March2004 before making adjustment for the following items was Rs 60,000 .Drawings of the

partners during the years were A Rs 12,000 and B Rs 8,000



ii]Interest on drawings at 6% p.a

iii]A and B to get a salary of Rs 10,000 each p.a

iv]A to get a commission of 10% on the net profit before charging such commission.


5.Show how the following items will appear in the capital accounts and Currents accounts of the

partners Saleem and Simon when their capital are fixed

Capital on 01.04.2004

Drawings during 2004/2005

Interest on Drawings

Interest on Capital

Partners salary

Commission

Share of profit for 2004-2005

Saleem

Rs

Simon

Rs

90,000

12,000

360

5,400

12,000

-------

6,000

70,000

9,000

270

4,200

------

6,000

4,000

6.Suja and Banu are partners sharing profits in the ratio of 3:2. Their capitals on 1.4.2007 were Rs

2,00,000 and Rs 1,50,000 respectively. The net profit of the firm for the year ended 31st March ,2008

before making adjustment for the items below was Rs 75,000. Interest on Capital is at 6% p.a. They

are entitled to get a salary of Rs 10,000 each p.a.Suja to get a commission of Rs 1,050 p.a. The

drawings of the partners were Suja Rs 20,000 and Banu Rs 15,000 .Interest on drawings at6% p.a

being Suja Rs 600 and Banu Rs 450


As on 31.3.2008

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7.Write up the capital and Current accounts of the partners, Rajani and sajani from the following

details:

Particulars Rajani

Rs

Sajani

Rs

Capital on 1.4.2003

Current a/c on 1.42003

Drawings during 2003-04

Interest on Capital @ 5%


Share of profit 2003-04

Partners salary

Interest on Rajani’s loan a/c

1,00,000

3,000(Dr)

8,000

?

240

12,000

4,000

3,000

60,000

2,000(cr)

5,000

?

150

10,000

-

-

8. Mohan and Murugan are partners in a firm sharing profits and losses in the ratio of 3:2. Their

capital on 1.4.2002 were Rs 80,000 and Rs 60,000 respectively. The net profit of the firm for the year

ended 31st March2003 before making adjustment for the following items was Rs 30,000 .Drawings of

the partners during the years were Mohan Rs 6,000 and Murugan Rs 4,000



ii]Interest on drawings at 8% p.a

iii]Mohan and Murugan get a salary of Rs 5,000 each p.a


9.Prepare Capital accounts of partners Ashwini and shivani from the following details assuming that

the capital are fluctuating

Particulars Ashwini

Rs

Shivani

Rs

Capital as on 1.4.2006

Drawings during 2006-07

Interest on Capital @ 6%


Share of profit 2006-07

Partners salary

Commission

Interest on Shivani’s loan a/c

2,10,000

18,000

?

450

24,000

-

4,800

1,20,000

12,000

?

300

18,000

6,000

3,600

3,000

10.Babu and Chandra are partners sharing profits and losses equally .Their capitals on 1.4.2005 were

Rs 60,000 and Rs 40,000 respectively. Interest on capital is agreed at 6% p.a. Interest on Drawings is

fixed at 8% p.a. The drawings of the partners were Rs 6,000 and Rs 4,000 respectively. Interest on

Drawings were for Babu Rs 240 and for Chandra Rs 160.Babu is entitled to a salary to Rs 8,400 p.a

and Chandra is entitled to get a commission of 10% on the net profit before charging such

commission.net profit of the firm before making the above adjustment was Rs 54,000 for the year

ended on 31st March 2006.


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11.A and B are partners with Capital of Rs 60,000 and Rs 20,000 respectively on 1st January 2001.

The trading profit (Before taking into account the provision of the deed) for the year ended 31.12.2001

was Rs 12,000

Interest on Capital is to allowed at 6% p.a. B is entitled to a salary of Rs 3,000 p.a The drawings of the

partners were A Rs 2,000 and B Rs 1,000 The interest on drawings for a being Rs 100 and B Rs 50

Assuming that A and B are equal partners. Prepare profit and loss Appropriation account and

Capital accounts of the partners

12.Rajan and Daniel are partners sharing profit in the ratio of 3:2 with capitals of Rs 50,000 and Rs

40,000 respectively. Interest on Capital is agreed at 8% p.a Interest on Drawings is fixed at 10% p.a.

The drawings of the partners were Rajan Rs 15,000 and Daniel Rs 10,000.Rajan is entitled to a salary

of Rs 12,000 p.a Daniel is entitled to a commission of 10% on net profit before making charging such

commission. The Net profit of the firm before making the above adjustment was Rs 60,000 for the year

ended 31st March 2005


13.Ravi and Shankar are partners with capitals Rs 4,50,000 and Rs 3,00,000 respectively on 1st April.

They share profit and losses are equally. Interest on Capital is agreed at8% p.a. The drawings of the

partners were Rs 30,000 and Rs 20,000 respectively. Interest on Drawings for Ravi Rs 1,500 and

Shankar Rs 1,000.Ravi is entitled to a salary of Rs 15,000 p.a and Shankar is entitled to get a

commission of 15% on the net profit after charging such commission. The Net profit of the firm before

making the above adjustment was Rs 1,30,000 for the year ended 31st March 2005


14.Ganesh and Suresh are partners sharing profits in the ratio of 3;2 with capital of Rs 3,00,000 and

Rs 1,00,000 respectively on 1st April 2004.Interest on capital is agreed at 5% p.a. The interest on

Drawings is fixed at 6% p.a. The Drawings Ganesh and Suresh were Rs 45,000 and Rs 30,000

respectively. Interest on Drawings for Ganesh 2,250 and Suresh Rs1,500.ganesh is entitled to a salary

of Rs 20,000 p.a and Suresh is entitled to get a commission of 10% on the net profit before charging

such commission. The net profit of the firm before making the above adjustment was Rs 90,000 for the

year ended 31st March 2005

.

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CHAPTER-7&8

PARTNERSHIP ADMISSION AND RETIREMENT

5 Marks:(Q.No 43)

1. Sankar and Saleem were partners sharing profits and losses in the ratio of 3:2.They admit Saimon

into the partnership to 1/3rd share, the old partners sacrifice equally. Calculate the new profit sharing

ratio

2.A and B are partners sharing the profits in the ratio of 3:2.They admit C into the firm for 1/5th

share, which he acquired entirely from A. Calculate the new profit sharing ratio of A, B and C

3.Sindhu And Bindhu are partners sharing profits in the ratio of 7:3 .They admit Indhu into the

partnership to 1/5th share , the old partners sacrificing equally, calculate the new profit ratio and

sacrificing ratio

4.X and Y are partners sharing profits in the ratio of 3:2. They admit Z for 1/6th share as new partner.

Calculate new profit sharing ratio and sacrificing ratio of old partners.

5. krithika And Gomathi are partners sharing profits and losses in the ratio of 9:7.Nischala is

admitted as a partner .She acquires 3/16 of the profit entirely from Krithika .Calculate the new profit

sharing ratio and sacrificing ratio

6.Vidhya and Priya were partners sharing profits in the ratio of 4:3.Ramya was admitted in the

business as a partner with 3/7th share in the profits of the firm which she takes 2/7th from Vidhya and

1/7th from Priya. Find out the new profit ratio and Sacrificing ratio.

7. X and Y are partners sharing profits in the ratio of 3:2. They admit Z for 1/3rd share as new

partner. The old partners sacrifice equally .Calculate new profit sharing ratio and sacrificing ratio of

old partners

8.priya and Sharmila are partners sharing profits in the ratio of 3;2. They admit Sangeeta for 1/5th

share which acquires equally from Priya and Sharmila. Calculate new profit sharing ratio and

Sacrifice ratio.

9.Naveen and Praveen are partners sharing profits in the ratio of 3:2. They admit Kunal as a new

partners , who acquires 1/5th of Naveen’s Share and 2/5th of Praveen share. Calculate New profit

sharing ratio and Sacrificing ratio.

10.Neela and Nikita were sharing profits in the ratio of 4:3 .Pooja was admitted with 1/5th share in

profits of business. Calculate the new profit sharing ratio and Sacrificing ratio.

11. Neela and Sheela were sharing profits in the ratio of 4:3 .Heena was admitted with 1/5th share in

profits of business. Calculate the new profit sharing ratio and Sacrificing ratio.

12.A and B and C are sharing profits in the ratio of 5:3:2 C retires and his share was taken up

entirely by B. Find out the new profit sharing ratio.

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13. A and B were sharing profits in the ratio of 3:2 .C was admitted with 3/10th share in profits of

business. Calculate the new profit sharing ratio and Sacrificing ratio.

20 Marks (Q.No 53 b Compulsory)

1.P, S and V were partners of a firm sharing profits in the ratio of their capitals. Their balance sheet

as on 31.12.2004 stood as follows


Liabilities Rs Rs Assets Rs Rs

Creditors

Reserve fund

Capitals:

P

S

V

90,000

60,000

30,000

21,000

48,000

1,80,000

2,49,000

Cash at Bank

Debtors

(-)provision for

Doubtful debts

Stock

Machinery

Land & Buildings

Goodwill

20,000

1,000

16,000

19,000

18,000

48,000

1,00,000

48,000

2,49,000

On 1.1.2005 S retires from the firm on the following terms;

i]Goodwill of the firm was estimated at Rs 36,000

ii]Land and Building was appreciated by 10%

iii]Provision for Doubtful debts was reduced by Rs 600

iv]Out of the amount of Insurance which was debited entirely to profit and Loss account Rs

2,000 be carried forward for unexpired insurance

v]A provision of Rs 3,000 was made in respect of an outstanding bill for repairs

Show Revaluation account and Capital account and the Balance sheet of the Reconstitute Partnership

2.Vijay and Vikram are partners sharing profits and Losses in the ratio of 3;2. Their balance sheet as

on 31st Match,2009 is given below:



Creditors

Bills payable

General

Reserve

Capital:

Vijay

Vikram

80,000

40,000

70,000

20,000

40,000

1,20,000

2,50,000

Cash

Debtors

Stock

Machinery

Buildings

Profit & Loss A/C

15,000

70,000

30,000

25,000

1,00,000

10,000

2,50,000

On 1st April 2010 they agreed to admit Mr.Vinod into the firm for 1/5th share of future profit on the

following terms:

i]Vinod to bring Rs 50,000 Capital

ii]Stock is revalued at Rs 21,500

iii]Provision for bad and doubtful debts be created at 5%

iv]Buildings is revalued at Rs 1,20,000

v]Goodwill is raised at Rs 40,000

Prepare Revaluation Account , Capital account and Balance sheet of the reconstitute firm

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3.Karthick ,David and Venkat were partners of a firm sharing profits and losses in the ratio of 3:2:1.

Their balance sheet as on 31st December 2006 is as follows:



Sundry Creditors

Bills payable

General Reserve

Capital account:

Karthick

David

Venkat

80,000

50,000

40,000

25,000

15,000

30,000

1,70,000

2,40,000

Cash

Bills Receivable

Sundry Debtors

Stock

Furniture

Buildings

63,000

10,000

30,000

42,000

15,000

80,000

2,40,000

Venkat retired from the partnership on 1st January 2007 on the following terms:

a]Goodwill of the firm was to be valued at Rs 30,000

b]Assets are to be valued as under:

Stock Rs 50,000:Buildings Rs 1,00,000

c]Furniture was to be depreciated by Rs 3,000

d]A provision for doubtful debts be created at Rs 1,000

e] Venkat was to be paid off at once


4.A & B are partners sharing profits and losses in the ratio of 3:2.Their balance sheet as on

31.12.2001 stood as under:

Balance sheet


Reserve fund

Creditors

Bills payable

Capital accounts

A

B

30,000

25,000

10,000

16,000

6,800

55,000

87,800

Land & Buildings

Plant & Machinery

Investments

Stock

Profit & loss a/c

Debtors

(-) Provision for doubtful

debts

Cash

5,000

200

40,000

10,000

10,000

11,000

10,000

4,800

2,000

87,800

They decided to admit c into partnership with effect from 1.1.2002

i]That C shall bring as a capital of Rs 20,000 for 1/3rd profits

ii]That the goodwill of the firm was valued at Rs 36,000

iii]Land was to be valued at Rs 45,000 and investment at Rs 25,000

iv]Stock was to be written down by Rs 2,000

v]That provision for doubtful debts was to be increased to Rs 300

vi]Creditors include Rs 500 no longer payable and this um was to be written off

Prepare Revaluation account, capital account of the partners and Balance sheet of the reconstitute

partnership

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5.Amar and Akbar and Antony were partners of a firm sharing profit and loss in the ratio of 6:5:4. The

balance sheet as on 31.3.2003 is given below



Sundry Creditors

Bills payable

Bank Overdraft

General Reserve

Profit & Loss a/c

Capital accounts:

Amar

Akbar

Antony

50,000

40,000

30,000

30,000

21,000

40,000

30,000

24,000

1,20,000

2,65,000

Cash

Sundry debtors

Stock

Furniture

Plant & Machinery

Land and

Buildings

25,000

25,000

35,000

15,000

75,000

90,000

2,65,000

Akbar retired from the partnership firm on 1.4.2004

i]That goodwill is raised at Rs 30,000

ii]The value of Land and Buildings is to be increased by Rs 10,000

iii]That Furniture and Plant were to be depreciated by Rs 2,000 and Rs 2,000 Respectively

iv]That Rs 10,000 is to be paid immediately to Akbar and the remaining balance is to be

transferred to his loan account


6.Ravi ,Venkat and Kumar are partners sharing profits and losses in the ratio of 3:2:1. Their balance

sheet as on 31.3.2008 is given below:


Sundry creditors

Bills payable

General reserve

Capital accounts:

Ravi

Venkat

Kumar

1,80,000

1,20,000

90,000

90,000

30,000

90,000

6,00,000

Cash at Bank

Sundry debtors

Stock

Plant & Machinery

Land and Buildings

1,41,000

39,000

90,000

1,20,000

2,10,000

6,00,000

Kumar retired from the partnership from 1.4.2008 on the following terms:

i]goodwill was to be raised at Rs 1,08,000

ii]the value of land and Buildings was to be increased by Rs 30,000

iii]Plant and machinery was depreciated by Rs 9,000

iv]The provision for outstanding bill for repairs was to be made of Rs 12,000

v]Kumar was to be paid off at once


7.Naveen and Nithin were partners of a firm sharing profits and losses in the ratio of 7:5 set out

below was their balance sheet as on 31st December 2004


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Sundry creditors

General reserve

Workman

compensation fund

Capital accounts

Naveen

Nithin

1,20,000

80,000

40,000

72,000

60,000

2,00,000

3,72,000

Bank

Sundry Debtors

Stock

Machinery

Profit & loss A/c

52,000

40,000

72,000

1,60,000

48,000

3,72,000

Nithin Retires from the partnership from 1st January 2005 and that Naveen will take over the

business on the following terms:


b]Machinery was depreciated at 10%

c]A provision for doubtful debts be created at 5% on sundry debtors

d]The liability on workman compensation fund is determined at Rs 36,000

Show Revaluation account and Capital account and the Balance sheet of Naveen after the adjustment

have been made.

8.The following is the Balance sheet of Siva and Panner sharing profits 3:2 as on 31.3.2006


Sundry creditors

Bills payable

Bank overdraft

General reserve

Capital accounts:

Siva

Panner

40,000

30,000

30,000

28,000

20,000

30,000

70,000

1,78,000

Bank

Sundry debtors

Stock

Machinery

Land and buildings

Profit & loss a/c

10,000

30,000

20,000

40,000

70,000

8,000

1,78,000

On 1.4.2006 they decided to admit Gopinath into partnership on the following terms:

i]That Gopinath shall bring in a capital of Rs 30,000

ii]That goodwill of the firm being valued at Rs 20,000

iii]That Land & Buildings be appreciated by 10%

iv]That stock be depreciated by Rs 3,000 and provision for outstanding liability be created at

Rs 2,000

Pass journal entries, Also show Revaluation account and Capital account and the Balance sheet

9.Sekhar and Suresh are partners sharing profits and losses in the ratio 3:2.Their balance sheet as on

31st March 2004 is given below:


Bills payable 75,000 Cash 15,000

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Creditors

Loan

General Reserve

Capital:

Sekhar

Suresh

3,00,000

2,25,000

1,20,000

1,35,000

45,000

5,25,000

9,00,000

Stock

Debtors

Machinery

Buildings

Investment

Goodwill

30,000

1,50,000

75,000

4,50,000

1,00,000

80,000

9,00,000

On 1st April 2004 they agreed to admit Sundar into the firm for 1/5th share of future profits on the

following terms:

i]Sundar to bring Rs 1,50,000 as Capital

ii]Goodwill was valued at Rs 1,00,000

iii]Buildings was to be depreciated by Rs 20,000

iv] Creditors include Rs 30,000 no longer payable and this sum was to be written off

Show Revaluation account and Capital account, cash account and the Balance sheet of the

Reconstitute Partnership

10.The following is the Balance sheet of Viji and Raji sharing a profit and Loss as to Viji 65% and Raji

35% as on 1st April 2006


Sundry creditors

Bank overdraft

Profit and loss a/c

Capital

Viji

Raji

40,000

30,000

25,000

13,000

14,000

70,000

1,22,000

Cash

Debtors

Stock

Furniture

Land & Buildings

Goodwill

2,000

30,000

20,000

8,000

50,000

12,000

1,22,000

They agreed to take Vinitha into partnership to 1/10th share of the following terms:

i]Vinitha shall bring in a capital of Rs 30,000

ii]The goodwill of the firm be increased to Rs 15,000

iii]A provision of Rs 1,000 be made for outstanding repairs bill

iv]The value of land and Buildings be brought up to Rs 60,000 being their present worth

prepare Revaluation account ,capital account, bank account and the Balance sheet of the new firm

11.Dhiya and Gaya sharing profits in the ratio 3:2 admit Riya as a partner with 1/3rd share in profits

on 1.1.2001. The terms agreed upon were

1]Riya has to contribute Rs 30,000

2]Goodwill of the firm be valued at Rs 28,000

3]Land & Buildings be appreciated by 40%

4]Depreciated plant& Machinery by 10%

5]The provision for doubtful debts was to be increased by Rs 800

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6]A liability of Rs 1,000 include in the sundry creditors is not likely to arise

The balance sheet of Dhiya and Gaya as on 31.12.2000 before admission of Riya was as follows:


Sundry creditors

Bills payable

Capital

Dhiya

Gaya

General reserve

50,000

35,000

29,000

6,000

85,000

16,000

1,36,000

Cash at Bank

Land & Buildings

Plant & Machinery

Stock

Sundry Debtors

(-)provision for doubtful

debts

Goodwill

Profit and loss account

20,000

1,000

9,000

25,000

30,000

15,000

19,000

10,000

28,000

1,36,000

Prepare Revaluation account , Capital account, bank account and the new Balance sheet as on

1.1.2001 after the admission of Riya

12.Suriya, Vijay and Vikram were partners of a firm sharing profit and losses in the ratio of 3:2:1

.Their balance sheet as on 31st December 2005 is as follows

Balance sheet as on 31st December 2005


Sundry Creditors

Bills payable

General Reserve

Capital accounts:

Surya

Vijay

Vikram

1,60,000

1,00,000

80,000

50,000

30,000

60,000

3,40,000

4,80,000

Cash in hand

Sundry debtors

Stock

Furniture

Buildings

1,36,000

58,000

72,000

14,000

2,00,000

4,80,000

Vikram retired from the partnership on 1st January2006 on the following terms:


b]Buildings was to be appreciated by Rs 40,000

c]Furniture was to be depreciated by Rs 3,000

d]A provision for doubtful; debts be created at Rs 1,000

e] Vikram was to be paid off at once

Show Revaluation account and Capital account, cash account and the Balance sheet of the


13.Rani and Deepa were partners sharing profit and loss in the ratio of 7:5 their Balance sheet as on

31st December 1995 is as under:

Balance sheet as on 31st December 2005


Capital

Rani

Deepa

Reserve fund

Sundry creditors

60,000

50,000

1,10,000

20,000

32,000

Land & buildings

Plant & Machinery

Investment

Stock

Sundry debtors

10,000

80,000

20,000

40,000

22,000

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1,75,600

(-)Provision for

doubtful debts

Cash

400

9,600

4,000

1,75,600

They decided to admit Leena into the partnership with effect from 1st January 1996 on the following

terms:

1]Leena shall bring in a capital of Rs 40,000 for 1/3rd share of profits

2]Goodwill of the firm was valued at Rs 72,000

3]Land was to be appreciated by 10% and Investment was to be revalued at Rs 52,000

4]Stock was to be written down by Rs 4,000

5]provision for doubtful debts was to be increased to Rs 600

6]Creditors include Rs 1,000 no longer payable and this sum was to be written off

Pass journal entries, Also show Revaluation account and Capital account and the Balance sheet .

14.Jayaseelan,Anbarasu and Inbanathan were partners of a firm sharing profits and losses in the

ratio of 1/2 , 1/3 and 1/6 respectively .Set out below was their Balance sheet as on 30.06.2005

Balance sheet as on 30th June 2005


Sundry creditors

Bills payable

General reserve

Profit and Loss a/c

Capital accounts:

Jayaseelan

Anbarasu

Inbanathan

2,40,000

1,60,000

1,20,000

1,20,000

40,000

1,20,000

90,000

5,20,000

8,90,000

Cash in hand

Cash at Bank

Sundry debtors

Stock

Furniture

Plant

Buildings

8,000

1,80,000

52,000

1,20,000

80,000

1,60,000

2,90,000

8,90,000

Inbanathan retired from the partnership from 1st July 2005 on the following terms:

1]Goodwill was to be raised at Rs 1,44,000

2]The value of Buildings was to be increased by Rs 40,000

3]Furniture and Plant were to depreciated by Rs 4,000 and Rs 12,000 respectively

Pass journal entries, Also show Revaluation account and Capital account and the Balance sheet .

15.Amar ,Akbar and Antony were partners of a firm sharing profits and losses in proportion of their

capital. Set out below their Balance sheet as on 31st March 2004



Sundry creditors

Bills payable

Loan

Reserve fund

Profit and loss

Capital accounts:

Amar

Akbar

Antony

2,00,000

1,20,000

80,000

2,00,000

1,00,000

3,25,000

1,00,000

2,00,000

3,00,000

13,25,000

Cash at Bank

Sundry Debtors

Stock

Machinery

Land and Buildings

2,50,000

4,00,000

75,000

2,00,000

4,00,000

13,25,000

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On 1st April 2005 Antony retired from the firm on the following terms;

i]Antony was to be paid off at once

ii]Goodwill of the firm to be valued at Rs 50,000

iii]Machinery was to be depreciated at 10% per annum.

iv]The value of Land and Building was to be appreciated by 20% p.a

v]A provision of bad and Doubtful debts be created at 5% on debtors

Show Revaluation account and Capital account, Bank account and the Balance sheet of the


16.Sankar and Saleem are partners sharing profits and losses in the ratio of 3:2 .Their Balance sheet

as on 31st March 2005 is given below



Creditors

Bills payable

General reserve

Loan

Capitals:

Sankar

Saleem

2,00,000

1,50,000

80,000

50,000

30,000

90,000

3,50,000

6,00,000

Cash

Debtors

Stock

Furniture

Buildings

Goodwill

Profit and Loss a/c

10,000

1,00,000.

20,000

50,000

3,00,000

75,000

45,000

6,00,000

On 1st April 2005 they agreed to admit Solomon into the firm for 1/5th share of future profits on the

following terms:

i]Solomon to bring Rs 1,00,000 as capital

ii]Goodwill was valued at Rs 50,000

iii]Provision for bad and doubtful debts is made at 5% p.a

iv]Investment of Rs 10,000 be brought into books

v]creditors include Rs 20,000 no longer payable and this sum was to be written off

Show Revaluation account and Capital account, Cash account and the Balance sheet of the


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CHAPTER-9

COMPANY ACCOUNTS

5 MARKS (Q.No42)

1. The directors of S ltd forfeited 2000 shares of Rs 10each for non payment of final call of Rs 2.50

Give necessary Journal entries for forfeiture of shares.

2. Jasmine Limited Company issued 50,000 shares of Rs 10e ach at a premium of Rs 3.Give journal

entry.

3. Global Ltd Company issued 10,000 shares of Rs 100 each at a discount of 10% .Give journal entry.

4. Vinod Company Ltd issued 40,000 preference shares of Rs 10 each at premium of Rs 3.Give Journal

entry

5. Z Ltd issued 40,000 shares of Rs 10 each at a premium of Rs 2 per share. Give journal entry.

6. A limited company issued 1,00,000 shares of Rs 10each payable Rs 2 on application. The company

received application for 1,10,000 shares .The Excess application were rejected and money refunded

.pass necessary journal entries to record these transactions only.

7.Vanathi Ltd issued 30,000 shares of Rs 100 each at a premium of Rs 25 per share fully paid. Pass

journal entry

8. Latha ltd issued 2,00,000 equity shares of Rs 10each at a discount of 10% per share/Give journal

entry.

9. Suresh Ltd. issued 50,000 shares of Rs 100 each at a discount of 10% .Give journal entry

10. Balagobal Ltd issued 2,00,000 equity shares of Rs 10each at a premium of 10% per share fully

paid. Give journal entry.

11. Sandeep Limited issued 30,000 shares Rs 100 each at a discount of 10%.Give journal entry.

12. Jasmine ltd forfeited 600 shares of Rs 10each fully called up for non payment of final call of Rs2

each. These shares were reissued for Rs 5,400 as fully paid up. Give necessary journal entry.

13.A company forfeited 400 shares of Rs 10 each on which the first call money of Rs 3 per share was

not received, the final call of Rs 3 is yet to be made. These shares were Subsequently reissued at Rs 7

per share at Rs 8 paid up. Pass necessary journal entry

14.The directors of Kumar Ltd forfeited 4,000 shares Of Rs 10 each for non-payment of final call of Rs

3.2500 of these shares were reissued for Rs 7 per share fully paid up. Pass necessary journal entry

15.Success Ltd forfeited 500 shares of Rs 10 each fully called up for non payment of final call money of

Rs 4 per share. Out of these 300 share were reissued for Rs 8 each fully paid up. Pass necessary

journal entries.

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16.success Ltd issued 1,00,000 equity shares of Rs 10each at a premium of 20% per share, Fully paid.

Give journal entry

17.A company forfeited 6,000 shares of Rs 100 each fully called up for non-payment of final call

money of Rs 30per share. These shares were reissued for Rs 4,80,000 as fully paid up. Give necessary

journal entries.

18.A company forfeited 5,000 shares of Rs 10each fully called up for non-payment of final call money

of Rs 3 per share. These shares were reissued for Rs 30,000 as fully paid up. Pass necessary journal

entries

12 Marks(Q.no52)

1.A company forfeited 100 equity shares of Rs 100 each issued at premium of 10% on which first call

money of Rs 30 per share and final call of Rs 20 per share were not received. These shares were

subsequently re-issued at Rs 90 per share as fully paid up

Give necessary Journal entries regarding forfeiture and reissue of shares. Also prepare share

forfeiture account and Capital reserve account.

2.Sathya Ltd, Company issued 3,000 equity shares of Rs 10 each fully called up on which the final call

of Rs 3 has not been paid. Out of these 1,500 shares were reissued at Rs 8 each fully paid.

Give necessary journal entries and Prepare Ledger account for forfeiture shares account and Capital

Reserve account .

3. G Ltd forfeited 20 shares of Rs 10each fully called up held by Gopi for non-payment of Final call of

Rs 4 per share. These shares were reissued to Mohan for Rs 8 per share as fully paid up. Pass entries

for the forfeiture and reissues of shares .Also prepare share Forfeiture account and Capital reserve

account

4.The directors of a company forfeited 3,000 shares of Rs 10 each fully called up for non-payment of

first call Rs 3 and final call for Rs 2 per share. 2,000 of these shares were reissued at Rs 7 each fully

paid up. Pass necessary journal and Ledger account

5.The Directors of Good luck ltd Forfeited 2,000 equity shares of Rs 10each fully called up for non

payment of first call Rs 3 and Final call Rs 2 per share

Out of these 1,000 shares were reissued at Rs 8 each fully paid. Give necessary journal; entries and

prepare ledger account for forfeiture account and capital Reserve account

6.A company forfeited 200 shares of Rs 100 each issued at a premium of 10% (Received on allotment)

for the non payment of first call of Rs 30 and Final call of Rs 20 per share. These shares were reissued

at Rs 70 per share as fully paid up. Give necessary Journal entries for forfeited and reissue of share.

7.Acharya Ltd. Forfeited shares 300 shares of Rs 10 each fully called up held bu Kumar for non

payment of first call money of Rs 3 per share and final call money of Rs 4 per share .Out of these

shares 250 were re issued to Illangovan for Rs 2,000 .Give all the journal entries for forfeited and re

issue and prepare ledge accounts.

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8.The Directors of Everest Ltd. Forfeited 500 equity shares of Rs 100 each fully called up for non

payment of first call Rs 30 and final call Rs 10 per share.

Out of these 300 share were re issued at Rs 70 each fully paid.

Give necessary journal entries and prepare ledger accounts for forfeited shares account and capital

reserve account.

9.The directors of a company after due notice forfeited 100 shares of Rs 10 each on which the final call

money of Rs 3 was not paid. Later these shares were reissued at Rs 8 per share.

Pass Journal entries and shoe the share forfeiture and Capital Reserve account

10.The directors of a company forfeited 500 shares of Rs 10 each fully called up for non payment of

first call of Rs 2 per share and final call of Rs 3 per share .300 of shares were subsequently reissued

at Rs 7 per share fully paid up .pass necessary entries to record the above and prepare share forfeiture

account.

11.Gem Ltd. forfeited 1,000 equity shares of Rs 10 each fully called up on which the final call of Rs 3

has not been paid. Out of these 800 shares were reissued at Rs 8 each fully paid.

Give necessary Journal entries and Prepare Ledger accounts for forfeited shares account and Capital

Reserve account.

12. Poorani Ltd. Forfeited 2,000 shares of Rs 10 each issued at a discount of 10% for non payment of

first call Rs 2 and second Call Rs 3.These shares were reissued to Mrs. Merlin upon a payment of Rs

14,000 as fully paid.


Reserve account

13.The directors of Arun Ltd forfeited 500 equity shares of Rs 100 each at a premium of 10% on which

first call money of Rs 30 per share and final call Rs 20 per share was not received. Out of these 300

shares were reissued at Rs 80 per share as fully paid. Give necessary Journal entries and Prepare

Ledger accounts for forfeited shares account and Capital Reserve account

14.The Directors of Lucky Ltd forfeited 1,000 equity shares of Rs 10 each fully called up for non

payment of first call Rs 3 and final Rs 3 per share.

Out of these 400 share were reissued at Rs 8 each fully paid. Give necessary Journal entries and

Prepare Ledger accounts for forfeited shares account and Capital Reserve account

15.The directors of mercury Ltd. forfeited 3,000 equity shares Of Rs 10 each fully called up for non

payment of first call Rs 2 and Final call Rs 3 per share .Out of these share 2,000 shares were Reissued

at Rs 9 each fully paid.


Reserve account

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16.The directors of a company forfeited 5,000 shares of Rs 100 each fully called up for non payment of

final call Rs 20 per share. These shares were reissued at Rs 70 each as fully paid.


Reserve account

17.The Directors of accompany forfeited 4,000 shares of Rs 10 each fully called up for non payment of

first call Rs 3 and final call Rs 2 per share .Out of these 1,000 shares were reissued at Rs 7 each as

fully paid.


Reserve account

20 Marks (Q.N 57)

1.M ltd offered for subscription 20,000 shares of Rs 10 each payable at a premium of Rs 2.50 per share

payable as follows:

On Application Rs 2.50

On Allotment Rs 5.00 (Including premium)

On First call Rs 3.00

On Final Call Rs 2.00

Application were received for 30,000 shares Application for 5,000 shares were rejected. Application

for other 5,000 shares were adjusted towards allotment. The balance money was received in due time.

Pass journal entries and ledger account and balance sheet

2.Bharath company Ltd. issued 30,000 shares of Rs 100 each at a premium of Rs 10 each payable as

follows

On Application Rs 20

On Allotment Rs 40 (Including premium Rs 10)

On First call Rs 20

On Final Call Rs 30

The company’s shares were fully subscribed .Both the calls were made and all the money were duly

received.

Pass Journal entries. Prepare Bank account, Share Capital account ,Securities premium account and

Balance sheet

3.Shenbagam Ltd Company issued 2,00,000 shares of Rs 10 each at premium of Rs payable as follows :

On Application Rs 2

On Allotment Rs 5 (Including premium Rs 2)

On First call Rs 3

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On Final Call Rs 2

All the shares were fully subscribed .Both the calls were made and all the money were duly received.

Pass Journal entries. Prepare Bank account, Share Capital account ,Securities premium account and

Balance sheet

4.S ltd. Issued 1,70,000 shares of Rs 10 each at a discount of 10% .The shares were payable as under:

On Application Rs 3

On Allotment Rs 4(With the adjustment of discount)

On First call & Final Call Rs 2

Public applied for 1,60,000 shares and the shares have been duly allotted. All money were duly

received.

pass entries and Prepare Bank account , Share Capital account, Discount account, and also Show the

Balance sheet

5.Sun Ltd issued 20,000 shares Of Rs 10 each payable at a premium of Rs 3 per share

On Application Rs 3

On Allotment Rs 5 (Including premium Rs3)

On First call Rs 3

On Final Call Rs 2

Applications were received for 30,000 shares Application for 5,000 shares were rejected. Applications


Pass Journal entries. Prepare Bank account, Share Capital account, Securities premium account and

Balance sheet

6.Vasanth Ltd issued 20,000 shares of Rs 100 each at Rs 120 payable as follows:


On Allotment Rs 50 (Including premium Rs20)

On First call Rs 30

On Final Call Rs 20

All the shares were fully subscribed .Both the calls were made and all the money were duly received.

Pass Journal entries. Prepare Bank account, Share Capital account , Securities premium account and

Balance sheet

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7.Santhosh Ltd issued 10,000 shares of Rs 100 each at Rs 120 payable as follows:


On Allotment Rs 45 (Including premium)

On First call Rs 20

On Final Call Rs 30

9,000 shares were applied for and allotted . All money was received with the exception of final call on

200 shares held by Sanjay.


Balance sheet

8.Nagesh Ltd. issued 6,000 shares of Rs 10 each at a premium of Rs 2 per share payable Rs 2 on

application, Rs 5 on allotment( including premium), Rs 3 on First call and Rs 2 on final call. All these

shares were duly subscribed and money due were fully received. Pass Journal entries. Prepare Bank

account, Share Capital account, Securities premium account and Balance sheet

9.Maruti Ltd issued 1,00,000 shares of Rs 10each at a premium of Rs 2 each payable as follows

On Application Rs 2

On Allotment Rs 6(Including premium)

On First call Rs 3

On Final Call Rs 1

All the shares were fully subscribed .Both the calls were made and all the money duly received.


Balance sheet

10. Kalyana Sundaram Ltd issued 10,000 shares of Rs 100 each at a premium of Rs 20 each payable

as follows:



On First call Rs 30

On Final Call Rs 20

The Company received application for 15,000 shares. Applications for 10,000 shares were accepted in

full, and the money on remaining 5,000 applications were rejected and refunded.

Both calls were made and all the money were duly received

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Balance sheet

11. Pavitra Ltd offered for subscription 20,000 shares of Rs 10 each payable at a premium of Rs2 per

share. The shares were payable as under:

On Application Rs 2


On First call Rs 3

On Final Call Rs 2

Applications were received for 30,000 shares Application for 5,000 shares were rejected. Applications



Balance sheet

12. Texmo Ltd issued 20,000 shares of Rs 100 each at a premium of Rs 10 each payable as follows:



On First call Rs 20

On Final Call Rs 20

The Company received application for 25,000 shares. Applications for 5,000 shares were rejected.

Both the calls were made and all the money were duly received.

Pass Journal entries. Prepare Bank account, Share Capital account, Securities premium

account and Balance sheet

13. Raja & Company invited application for 20,000 equity shares of Rs 100 each at a discount of Rs 10

per share (Allowed at the time of allotment)

The amount was payable as follows


On Allotment Rs 40


The public applied for 18,000 shares and these were allotted. All Money due was collected with the

exception of allotment and the first and final call on 800 shares.

Pass Journal entries. Prepare important ledger accounts.

14. Tamil Selvan co ltd offered for subscription 5,000 shares of Rs 100 each at a premium of Rs 20 on

the following terms:


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On First call Rs 30

On Final Call Rs 20

Application were received for 8,000 shares, excess application money was refunded.

All the money due on shares were duly received except final call on 500 shares.

Pass Journal entries .Prepare necessary ledger accounts and show the balance sheet

15. Sarawathi Ltd issued 30,000 shares of Rs 100 each at Rs 120 payable as follows



On First call Rs 25

On Final Call Rs 25

All the shares were fully subscribed .Both the calls were made and all the money duly received.

Pass journal entries. Prepare necessary ledger accounts and the balance sheet

16. Naveena Ltd issued 50,000 shares of Rs 10 each at a premium of Rs 2 each payable as follows

On Application Rs 2


On First call Rs 3

On Final Call Rs 2

The company received application for 70,000 shares. Applications for 50,000 shares were accepted in

full and the money on remaining 20,000 applications which rejected was refunded.

Both the calls were made and all the money were duly received.

Pass journal entries. Prepare necessary ledger accounts and the Balance sheet.

17. Alpha Ltd, issued 10,000 shares of Rs 100 each at a discount of 10% payable as under:


On Allotment Rs 40 (With discount adjustment)


Public applied for 8,000 shares and the shares have been duly allotted..all money were duly received.

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Pass journal entries. Prepare Bank account, Share capital account, Discount on issue of Shares

Account and Balance sheet.

18. Global Ltd. Issued 20,000 shares of Rs 100 each at Rs 110 payable as follows:



On First call Rs 30

On Second and Final Call Rs 20

The Company’s shares were fully subscripted both the calls were made and all the money were duly

received.

Pass journal entries. Prepare Bank account, Share Capital account, Securities Premium Account and

Balance sheet.

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ACCOUNTANCY Chapter-1

Final accounts-With adjustment

I. Fill in the blanks:

1. Net Profit is transferred from Profit and loss account to ________ account.

2. Closing stock is valued at Cost Price or ________ price whichever is lower.

3. Outstanding expenses are shown on the ________ side of the balance sheet.

4. Prepaid expenses are shown on the ________ side of the balance sheet.

5. Income accrued but not received will be shown on the ________ side of the Balance sheet.

6. Income received in advance will be shown on the ________side of the Balance sheet

7. Interest on capital is debited in ________ account

8. Interest on drawings is credited in ________ account.

9. Interest on loan borrowed unpaid is shown on the ________ side of the Balance sheet.

10. Depreciation is deducted from the concerned ________ in the Balance sheet.

11. Provision for Bad and Doubtful debts is deducted from ________ in the Balance sheet.

12. Provision for discount on creditors is deducted from ________in the Balance sheet.

13. Debts which are not recoverable from Sundry debtors are termed as ________.

II. Choose the correct answer

1. Returns inwards are deducted from

a) Purchases b) Sales c) Returns outward

2. The Profit and Loss account shows

a) Financial position of the concern b) Net profit or Net loss c) Gross profit or Gross Loss

3. Rent outstanding is

a) a liability b) an asset c) an income

4. Closing stock is shown in

a) Profit and loss account b) Trading account and Balance sheet c) None of the above.

5. Opening stock is shown in

a) Balance sheet b) Profit and Loss account c) Trading account

6. Gross Profit is transferred to

a) Capital account b) Profit and loss account c) None of the above

7. Interest on capital is added to

a) Expense A/c b) Income A/c c) Capital A/c

8. Interest on drawings is deducted from

a) Income A/c b) Capital A/c c) Expense A/c

9. Outstanding interest on loan borrowed is to be added to

a) Asset A/c b) Income A/c c) Loan A/c

10. All the items given in the adjustment will appear at _________ in the Final accounts.

a) Three places b) Two places c) One Place

Chapter-2

Accounts from incomplete Records-Single entry


1. Incomplete records are those records which are not kept under ________ system.

2. Statement of affairs method is also called as ________ method.

3. ________ capital can be found by preparing a statement of affairs at the beginning of the year.

4. A statement of affairs resembles a ________.

5. Closing capital can be found by preparing a statement affairs at the ________ of the year.

6. In ________ system, only personal and cash accounts are opened.

7. Credit purchase can be ascertained as the balancing figure in the ________.

8. The excess of assets over liabilities is ________.

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9. The total assets of a proprietor are Rs.5,00,000. His liabilities Rs.3,50,000. Then his capital in the

business is ________.

10. A firm has assets worth Rs.60,000 and capital Rs.45,000. Then it’s liabilities is ________.

II. Choose the Correct Answer:

1. Under the networth method the basis for ascertaining the profit is

a) the difference between the capital on two dates.

b) the difference between the liabilities on two dates.

c) the difference between the gross assets on two dates.

2. Incomplete records are generally used by

a) Small traders b) Company c) Government

3. Credit sales is obtained from

a) Bills Receivable account b) Total debtors account c) Total creditors account

4. Single Entry System is

a) a Scientific method b) an Incomplete Double Entry System

c) None of the above.

5. The capital of a business is ascertained by preparing

a) Trading account b) Statement of profit or loss c) Statement of affairs

Chapter-3

Depreciation


1. All assets whose benefit is derived for a __________ period of time are called as Fixed Assets.

2. The estimated sale value of the asset at the end of it’s economic life is called as ________ value.

3. ________ method of depreciation is calculated on the original cost of assets.

4. Under ________ method, depreciation is calculated on the book value of the asset each year.

5. _______ method of depreciation is used in the case of Lease.

6. Under insurance policy method, cash is paid by way of _______ every year.

7. ________ method of depreciation is suitable for special type of asset like Loose tools

II. Choose the correct answer:

1. Depreciation arises due to

a) wear and tear of the asset b) fall in the market value of asset c) fall in the value of money

2. Under straight line method, rate of depreciation is calculated on

a) Original cost b) Written down value c) Cost less scrap value

3. Under diminishing balance method, depreciation

a) decreases every year b) increases every year c) constant every year

4. The term depletion is used for

a) Intangible assets b) Fixed assets c) Natural resources

5. If selling price is more than the book value of the asset on the date of sale, it is

a) a loss b) an income c) a profit

6. If selling price is less than the book value of the asset it denotes

a) loss b) capital profit c) expenditure

7. Profit made on sale of fixed asset is debited to

a) Profit and Loss account b) Fixed Asset account c) Depreciation account

8. Loss on sale of fixed asset appear on the

a) credit side of Depreciation account b) debit side of fixed asset account c) credit side of

fixed asset account

9. The amount of depreciation charged on a machinery will be debited to

a) Machinery account b) Depreciation account c) Cash account

10. Total amount of depreciation provided on the written down value method at the rate of 10% p.a. on

Rs.10,000 for first three years will be

a) Rs. 2,107 b) Rs. 2,710 c) Rs. 2,701

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Chapter-4

Ratio analysis


1. _______ is a mathematical relationship between two items expressed in quantitative form.

2. Ratio helps in _______ forecasting.

3. _______ Ratio measures the firm ability to pay off its current dues.

4. _______ are those assets which are easily convertible into cash.

5. Bank overdraft is an example of _______ liability.

6. Liquid ratio is used to assess the firm’s _______ liquidity.

7. Liquid assets means current assets less _______ and _______.

8. _______ ratio is modified form of liquid ratio.

9. Liquid liabilities means current liabilities less _______.

10. Proprietory ratio shows the relationship between _______ and total tangible assets.

11. Gross profit can be ascertained by deducting cost of goods sold from _______.

12. Stock turnover ratio is otherwise called as _______.

13. 100% – Operating profit ratio is equal to _______ ratio.

14. When total sales is Rs.2,00,000, cash sales is Rs.65,000, then credit sales will be Rs._______.

15. Liquid ratio is otherwise known as _______.


1. All solvency ratios are expressed in terms of

a) Proportion b) Times c) Percentage

2. All activity ratios are expressed in terms of


3. All profitability ratios are expressed in terms of


4. Liquid liabilities means

a) Current liabilities b) Current liabilities – Bank overdraft c) Current liabilities + Bank

overdraft

5. Shareholders funds includes

a) Equity share capital, Preference share capital, Reserves & Surplus

b) Loans from banks and financial institutions

c) Equity share capital, Preference share capital, Reserves & Surplus and Loans from banks and

financial institutions

6. Which of the following option is correct

a) Tangible Assets = Land + Building + Furniture

b) Tangible Assets = Land + Building + Goodwill

c) Tabgible Assets = Land + Furniture + Goodwill + Copy right

7. Gross profit ratio establishes the relationship between

a) Gross profit & Total sales b) Gross profit & Credit sales c) Gross profit & Cash sales

8. Opening stock is equal to Rs.10,000, Purchase Rs.2,00,000 and closing stock is Rs.5,000. Cost of goods

sold is equal to a) Rs. 2,15,000 b)Rs. 2,10,000 c) Rs. 2,05,000

9. Operating ratio is equal to

a) 100 – Operating profit ratio b) 100 + Operating profit ratio c) Operating profit ratio

10. Total sales is Rs,3,40,000 and the gross profit made is Rs.1,40,000. The cost of goods sold will be _____

a) Rs.2,00,000 b) Rs. 4,80,000 c) Rs. 3,40,000

11. Total sales of a business concern is Rs.8,75,000. If cash sales is Rs.3,75,000, then credit sales will be

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a) Rs.12,50,000 b) Rs.5,00,000 c) 12,00,000

12. Cost of goods sold is Rs.4,00,000 and average stock is Rs.80,000. Stock turnover ratio will be

a) 5 times b) 4 times c) 7 times

13. Current assets of a business concern is Rs.60,000 and current liabilities are Rs.30,000.Current ratio will

be a) 1 : 2 b) 1 : 1 c) 2 : 1

14. Equity share capital is Rs.2,00,000, Reserves & surplus is Rs.30,000. Debenture Rs.40,000 and the

shareholders funds will be

a) Rs.2,00,000 b) Rs. 2,30,000 c) Rs. 1,90,000

Chapter-5

Cash Budget


1. The term ‘cash’ in cash budget stands for __________ and__________.

2. Cash budget is also called as __________.

3. There are __________ methods by which a cash budget is prepared.

4. The opening balance of cash in April is Rs.1250. Total receipts for the month are Rs.4300 and total

payments amounted to Rs.3750. Opening balance of cash in May will be __________

5. Cash budget is a useful tool for __________.

6. The closing balance of one month will be the __________ balance of the next month.


1. Budget is an estimate relating to __________ period.

a) future b) current c) past

2. Budget is expressed in terms of

a) Money b) Physical units c) Money & Physical units

3. Cash budget deals with

a) Estimated cash receipts b) Estimated cash payments c) Estimated cash receipts & Estimated

cash payments

4. Purchase of Furniture is an example for

a) Cash receipts b) Cash payments c) None of the above

5. The opening balance of cash in January is Rs.9,000. The estimated receipts are Rs.14,000 and the

estimated payments are Rs.10,000. The opening balance of cash in February will be

a) Rs. 21,000 b) Rs. 11,000 c) Rs. 13,000

Chapter-6

Partnership accounts-Basic Concept


1. A sole trader business is owned and managed by ________ person.

2. Indian Partnership Act was enacted in the year ________.

3. Mutual and ________ agency is the essence of a partnership.

4. The profits and losses of the business will be shared among the partners in the ________ ratio.

5. Under fluctuating capital method, profit or loss in a year, will be transferred to the respective ________

accounts.

6. The capital accounts of partners may be ________ or fluctuating.

7. Under __________ capital arrangement, current accounts will not be maintained.

8. The debit balance of the current account, will be shown in the ________ side of the balance sheet.

9. Interest on partners’ capital is allowed, only when the ________ specifically provides for it.

10. Money lent to the business by a partner is credited to his ________ account and not his capital account.

11. Interest on partners’ loan should be paid, even if there is no ________ in a year.

12. Goodwill is an _______ asset.

13. The excess of average profit over normal profit is _______.

14. In the absence of partnership deed, no interest is to be charged on ________.

15. A partnership can be formed only for a ________ business.

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16. The persons who entered into partnership are collectively known as ________.

b) Choose the correct answer:

1. The minimum number of persons in a partnership firm is ______

a) one b) two c) seven

2. In a partnership business, agreement is _______

a) compulsory b) optional c) not necessary

3. In a partnership, partners share their profits and losses in _______ ratio

a) their capital b) equal c) agreed

4. Under fixed capital system, the profits and losses of partners will be transferred to their _______ account

a) current b) drawings c) capital

5. Interest on capital is calculated on the

a) Opening Capital b) Closing Capital c) Average Capital

6. Current accounts for partners will be opened under

a) Fixed capital method b) Fluctuating capital method

c) Either fixed capital method or fluctuating capital method

7. In the absence of an agreement profits and losses are divided

a) in the ratio of capitals b) in the ratio of time devoted by each partner c) equally

8. X and Y are partners sharing the profits and losses in the ratio of 2:3 with capitals of Rs.1,20,000 and

Rs.60,000 respectively. Profits for the year are Rs.9,000. If the partnership deed is silent as to interest on

capital. Show how profit is shared among X and Y.

a) Profit : X - Rs. 6,000; Y - Rs.3,000

b) Profit : X - Rs. 3,600; Y - Rs.5,400

c) Profit : X - Rs. 3,000; Y - Rs.6,000

9. Where a partner is entitled to interest on capital such interest will be payable,

a) Only out of profits b) Only out of capital c) Out of profits or out of capital

10. In the absence of partnership deed, partners shall

a) be paid salaries b) not to be paid salaries c) paid salaries to those who work for the firm

11. Under fixed capital method salary payable to a partner is recorded

a) in Current Account b) in Capital Account c) either in Current Account or Capital

Account.

12. If a firm is maintaining both ‘Capital Accounts’ and ‘Current Accounts’ of the partners A and B.

Additional capital introduced by B will be recorded in

a) B’s Current Account b) B’s Capital Account

c) either B’s Capital Account or Current Account

Chapter - 7

Partnership accounts - Admission I. Fill in the blanks:

1. In the event of admission of a new partner, legally there is _______ of old partnership.

2. At the time of admission of a new partner, _______ profit ratio should be found out.

3. At the time of admission of a new partner, _______ of assets and liabilities should be taken up.

4. When the value of an asset increases, it results in _______.

5. When an unrecorded liabilities is brought into books, it results in _______.

6. The balance of revaluation account shows __________ on revaluation.

7. The revaluation profit or loss is transferred to the old partners’ capital accounts, in their _______.

8. The difference between old profit sharing ratio and new profit sharing ratio at time of admission is

_______ ratio.

9. Undistributed Profit will appear on the _______ side of the Balance sheet.

10. At the time of admission, when goodwill is raised, the old partners capital account will be credited in the

_______ ratio.

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11. The partner admitted into partnership firm acquires two rights i.e., right to share in the _______ of the

partnership and right to share in the _______.

12. The new profit sharing ratio will be determined by how the new partner acquires is _______ from the

old partners.

13. Under _______ goodwill account is raised by crediting the old partners capital accounts in the old profit

sharing ratio.


1. When A and B sharing profits and losses in the ratio of 3:2, they admit C as a partner giving him 1/3

share of profits. This will be given by A and B.

a) Equally b) In the ratio of their capitals c) In the ratio of their profits.

2. In admission, profit from revaluation of assets and liabilities will be transferred to the capital accounts of

the old partners in the

a) Old profit sharing ratio b) Sacrifice ratio c) New profit sharing ratio

3. If new share of the incoming partner is given without mentioning the details of the sacrifice made by the

old partners then, the presumption is that old partners sacrifice in the _______.

a) Old profit sharing ratio b) Gaining ratio c) Capital ratio

4. In order to maintain fair dealings, at the time of admission, it is necessary to revalue assets and liabilities

of the firm to their ______.

a) cost price b) cost price less depreciation c) true value

5. On admission of a partner if goodwill account is to be raised this should be debited to

a) Partners’ capital account b) Goodwill account c) Revaluation account

6. When A and B sharing profits and losses in the ration 3:2, admit C as a partner giving him 1/5 share of

profits. This will be given by A and B.

a) Equally b) in their capitals ratio c) in their profit sharing ratio

7. On admission of a new partner, increase in value of assets is debited to

a) Asset account b) Profit & Loss adjustment account c) Old partners capital account

8. On admission of a new partner balance of General Reserve Account should be transferred to the capital

account of

a) all partners in their new profit sharing ratio

b) old partners in their old profit sharing ratio

c) old partners in their new profit sharing ratio

9. The old partners share all the accumulated profits and reserves in their

a) new profit sharing ratio b) old profit sharing ratio c) capital ratio

10. The reconstitution of the partnership requires a revision of the_______ of the existing partners

a) Profit sharing ratio b) Capital ratio c) Sacrificing ratio

11. ________ ratio is computed at the time of admission of a new partner

a) Gaining ratio b) Capital ratio c) Sacrificing ratio

Chapter - 8

Partnership accounts – Retirement I. Fill in the blanks:

1. The retiring partner should be paid off or the amount due to him, will be treated as his _______ to the

firm.

2. At the time of retirement of partners, the existing partners stand to _______.

3. If the value of liabilities decrease, it results in __________item.

4. At the time of retirement, the increase in the value of goodwill will be transferred to the _______ side of

the capital accounts of all the partners.

5. At the time of retirement, the profit on revaluation of assets and liabilities will be transferred to the

_______ side of the capital accounts of all the partners.

6. At the time of retirement, the revaluation profits of business will be shared by _______ partners.

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7. In the absence of any specific agreement between the partners, partners loan to the firms will carry an

interest at the rate of ______ percentage.

8. The accumulated reserves will be transferred to the old partners Capital account in the _______ ratio at

the time of his retirement

9. The amount due to the retiring partner is either ______ or is paid in ______.

10. _______ is calculated to determine the amount of compensation to be paid by each of the continuing

partners to the outgoing partners.

11. A, B and C shares profit as 1/2 to A, 1/3 to B and 1/6 to C. If B retires then, the new profit sharing ratio

is _________.

12. Sacrificing ratio is the ratio in which the old partners (existing) have agreed to sacrifice their _______ in

favour of _______.

II. Choose the correct answers:

1. At the time of retirement of a partner, calculation of new profit ratio is _______

a) not necessary b) necessary c) optional

2. Undistributed profits and losses ______ transferred to all the partners account at the time of retirement of

a partner.

a) should be b) should not be c) may be

3. At the time of retirement Balance sheet items like Profit & Loss account and General Reserve must be

transferred to

a) Revaluation A/c b) Partner’s Capital A/c c) None of the above

4. If the goodwill account is raised for Rs.30,000, the amount is debited to:

a) The capital accounts of partners b) Goodwill Account c) Cash Account

5. ________ ratio is calculated by taking out the difference between new profit sharing ratio and old profit

sharing ratio.

a) Gaining b) Capital c) Sacrifice

6. On retirement of a partner goodwill amount is credited to the account of

a) only retiring partner b) all partners including retiring partner c) only remaining partner

7. A, B and C are sharing profits in the ratio of 2/5 : 2/5 : 1/5. C retired from business and his share was

purchased equally by A and B. Then new profit sharing ratio shall be

a) A – 1/2 & B – ½ b) A – 3/5 & B – 2/5 c) A – 2/5 & B – 3/5

8. When the amount due to an outgoing partner is not paid immediately, then it is transferred to

a) Capital A/c b) Loan A/c c) Cash A/c

9. If the amount due to the outgoing partner is transferred to loan account then he is entitled to interest at

______ untill it is paid out.

a) 9% b) 5% c) 6%

Chapter-9

Company accounts

I.Fill in the Blanks:

1. Companies have been defined in Section ___________ of the Companies Act, _______.

2. __________ is considered as the official signature of the company.

3. The management of a company is done by __________.

4. The liability of share holders are __________ in a company.

5. Audit of accounts are done by practicing chartered accounts who are appointed by __________ at the

__________.

6. ________ is the maximum amount of capital that can be issued by a company.

7. Nominal capital is the capital mentioned in the _______________ of the company.

8. That part of the authorised capital not offered for subscription to the public in known as _________.

9. Reserve capital can be issued only at the time of __________.

10. A public issue can not be kept open for more __________ days.

11. Minimum subscription that should be received by the company is ______% of the issued capital.

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12. When excess application money is adjusted towards allotment it is called as __________ allotment.

13. There should be a time gap of ____________ between two calls.

14. Capital Reserve represents __________ profit.

15. Forfeited shares have to be reissued at a price __________ than the face value.

16. Securities premium is shown in the __________ side of the Balance

Sheet.

II. Choose the correct answer: 1. According to Companies (Amendment) Act 2000, a company limited by share can issue _______ kinds of

shares.

a) 1 b) 2 c) 3

2. The public issue must be kept open for atleast

a) 3 days b) 5 days c) 7 days

3. Minimum amount to be collected by a company as application money according to SEBI is _____% of

the issue price.

a) 10% b) 25% c) 50%

4. When more number of applications are received than that are offered to the public, it is called

____________.

a) Over subscription b) Under subscription c) Full subscription

5. The maximum calls that a company can make is

a) one b) two c) three

6. According to Table A, interest charged on calls-in-arrears is______%.

a) 4% b) 5% c) 6%

7. According to Table A, interest charged on calls in advance is_______%.

a) 4% b) 5% c) 6%

8. A company can issue shares

a) at par only b) at par and at premium c) at par, at premium & at discount

9. When the company issue shares at a price more than the face value it is called as an issue at ________.

a) Par b) Premium c) Discount

10. Normally companies can issue shares at ________% of discount

a) 5 b) 10 c) 20

11. When shares are forfeited the share capital of the company will_______.

a) remain same b) reduce c) increase

12. Securities premium will appear in the ________ side of the Balance Sheet.

a) Asset b) Liability c) Assets & Liabilities

13. The balance of forfeited share account is________ in the Balance Sheet.

a) added to paid up capital b) added to authorised capital c) deducted from paid up capital.

14. Calls-in-arrears is shown in the Balance Sheet as

a) deduction from called up capital b) addition to paid up capital c) addition to issued capital

15. Capital Reserve is shown on the ________ side of Balance Sheet.

a) Asset b) Liability c) Both

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Chapter-1

1.The Trial Balance as on 31.3.2004 shows Capital Rs 6,00,000 and Drawings Rs 40,000.

Interest on Drawings at 5% p.a is _______________

2.Trial Balance as on 31.3.2005 shows sundry debtors Rs 1,05,000.As per given adjustment if

Rs 5,000 is to be written off as bad debts, the provision for bad and doubtful debts at 5% will

be_______________

3.Trial Balance as on 31.3.2005 shows Bank Loan Rs 1,00,000 at 10% p.a on 1.4.2004.Interest

paid Rs 4,000 .Interest outstanding is _________

4.Trial Balance as on 31.3.2004.shows sundry debtors Rs 1,25,000 as per given in adjustment

if Rs 5,000 is to written off as bad debts the provision for bad and doubtful debts at 5% will

be_____________

5.Trial Balance shows bank deposits Rs 3,00,000 @ p.a on 1.1.2006. Interest received is Rs

25,000.accrued interest is Rs ___________on 31.12.2005

6. Trial Balance as on 31.12.2005 shows sundry debtors as Rs 69,000 .Write off bad debts Rs

4,000 .The amount of bad and doubtful debts at 5% will be ___________

7.Trial Balance shows bank loan Rs 7,00,000 @ 10% on 1.4.2003.Interest paid Rs 50,000

interest outstanding is Rs ________________as on 31.3.2004

8.Trial balance as on 31.3.2005 shows sundry debtors as Rs 50,500.Also write off Rs 500 as

bad debts. The amount of provision for bad and doubtful debts at 5% will be______________

9.Trial balance shows on 31.3.2005 investment @ 10% Rs 2,00,000.Interest received Rs

15,000.Accrued interest is___________

10.The Trial Balance as on 31.3.2005 shows sundry debtors Rs 30,800. Write off Rs800 as bad

debts. The amount provisions for bad and doubtful dents at 5% will be______

11.The Trial Balance shows as on 31st March ,2004 Sundry debtors Rs 30,500. Adjustment.

Write off Rs 500 as bad debts. The provision for bad and doubtful debts at 5% is___________

12.The Trial Balance as on 31.3.2004 shows sundry creditors Rs 25,000. The amount pf

provision for discount on creditors @2% will be is___________

13.The Trial Balance as on 31.3.2006 shows capital Rs 5,00,000 . Interest on capital at 6%

p.a is ____________

14.The Trial Balance as on 31.3.2006 shows sundry debtors Rs 25,000. Write off Rs 1,000 as

bad debts. The amount of provision for bad and doubtful debts as 5% will be___________

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15.The Trial Balance as on 31.3.2004 shows as on capital Rs 5,00,000 and drawings Rs

50,000.Interest on drawings @6% will be__________

16. Trial Balance

Chapter-2

1.Debtors on 1st April,2004 Rs 50,000 and on 31st march Rs 60,000 .Cash received from

debtors during the year Rs 1,00,000.Then credit sales made during the year is

2.Creditors on 1st April Rs 1,00,000 and on 31st March 2005 Rs 1,10,000 cash paid to creditors

during the year Rs 1,90,000.Then credit purchases made during the year is _____________

3. The total assets of a proprietor are Rs 5,00,000 .His liabilities are Rs 3,50,000.His capital in

the business is __________

4. Creditors on 1.1.2005 Rs 60,500 and on 31.12.2005 Rs 65,000 .Cash paid to creditors during

the year Rs 1, 04,500 Thus credit purchases made during the year is___________

5. Debtors on 1.4.2004 Rs 39,600 and on 31.3.2005 Rs 49,900.Cash received from debtors

during the year Rs 69, 500. Thus credit sale made during the year is _________

6.Creditors on 1st April 2002 Rs 8,000 and on 31st March 2003 Rs 13,500 .Cash paid to

creditors Rs 31,000.Credit Purchases made during the year is ___________

7.Creditors on 1st April 2004 Rs 1,50,000 and 31st March 2005 Rs 1,80,000 Cash paid to

sundry creditors Rs 45,000. Thus the credit purchases made during the year is___________

8.A firm has capital Rs 60,000 and liabilities Rs 40,000.Then its assets_________

9. Creditors on 1.4.2006 Rs 80,000 and on 31.3.2007, Rs 65,000, Cash paid to creditors during

the year is RS 1,10,000. Then the credit purchases during the year is ____________

10.In a business closing capital is Rs 20,000,Drawings Rs 5,000. Additional Capital Rs

7,000,Profit Rs 3,000___________is the opening capital

Chapter-3

1.Selling price of a plant is Rs 10,00,000 .If loss on sale is Rs 1,00,000 the book value of the

plant is ______________

2.Cost of an asset is Rs 3,00,000 Rate of depreciation is at 10% p.a Depreciation is calculated

under straight line method Book value of asset at the end of third year is

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3.Selling price of a plant is Rs 5,00,000.If profit on sale two items is Rs 50,000 The book

value of the plant is ________

4.Cost of an asset is Rs 2,00,000.Rate of depreciation is at 10% per annum .Depreciation is

calculated under Diminishing Balance method. Book value of asset at the end of third year is

_______________

5.Selling price of a fixed assets is Rs 75,000 .The book value of the asset at the time of sale is

Rs 60,000.Profit on sale is Rs _____________

6.Cost of an asset Rs 5,00,000 rate of depreciation is 10% p.a Depreciation is provided under

written down value method. Book value of the asset at the end of second year is

_____________

7.Selling price of plant Rs 5,00,000 profit on sale was Rs 59,000. The book value of the plant

is____________

8.Under the written down value method if depreciation is at rate of 10% p.a on Rs 10,000,

then the book value of the asset at the end of third year is____________

9.Total amount of depreciation provided on the written down value method at the rate of

depreciation 10% p.a on Rs 20,000 for first three years will be___________

10. Total amount of depreciation provided on the straight line method at the rate of 10% p.a

on Rs 50,000 for first three years will be_____________

11. Cost of an asset is Rs 4,00,000. Rate of depreciation is at 10% p.a. Depreciation is

calculated under written down value method. Book value of the asset at the end of third year

is _________

Chapter-4

1.Current assets of a business concern is Rs 60,000 and current liabilities are Rs

30,000,Current ratio will be____________

2.The opening stock are Rs 72,000 and closing stock are Rs 78,000. Then the average stock

is_____________

3.Liquid liabilities of a business is Rs 80,000, Bank overdraft RS 25,000. Current liabilities

will be______________

Chapter-5

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1.The opening balance of cash in January is Rs 15,000.The estimated cash receipts are Rs

20,000 and the estimated cash payments are Rs 10,000.The opening balance of cash in

February will be ____________

Chapter-6

1.A , B and C are sharing profits in the ratio of 5:3:2.If B retires the new profit sharing ratio

of A and C is______________

2. A , B and C were sharing profits in the proportion of ½, 1/3,and 1/6 .If A retires the new

profit sharing ratio of B and C is______________

Chapter-9

1.A company issued 2,00,000 shares of Rs 10each to the public but only 1,50,000 shares were

subscribed .Its subscribed capital is ___________________

2.The directors of a company forfeited 100 shares of Rs 10 each on which the final call money

of Rs 3 was not paid. Later these shares were reissued for Rs 800 capital reserve will

be________

3.A company had authorized Capital of Rs 4,00,000 divided into 4,000 shares of Rs 100 each

.It offered 3,000 shares to the public. Its issued capital is__________

4.The directors of a company forfeited 500 shares of Rs 10 each on which the final call money

of Rs 2 was not paid later these share issued at Rs 8 per share Capital Reserve will be

__________

5.U ltd issued 70,000 shares of Rs 10 each fully subscribed by public Rs 7 per shares been

called up. Then Rs __________will represent uncalled capital

6.G ltd issued 1,00,000 shares of Rs 10 each ,fully subscribed by public . Rs 7 per share has

been called up. Then Rs ___________will represent uncalled capital

7.The amount credited to share forfeited account is RS 3,000. The discount on reissue of

forfeited shares is Rs1,500.capital reserve will be_________

8.A ltd company issued 50,000 shares of Rs 10 each fully subscribed by public Rs 8 per shares

been called up, then __________will represent uncalled capital.

9.The amount credited to share forfeiture account is Rs 6,000. The loss on reissue of forfeited

shares is Rs 3,000, Capital reserve will be_________

10.A company issued 20,000 shares of Rs 100 each to the public, but only 18,000 shares were

subscribed, Its subscribed capital is Rs __________

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11.The amount credited to share forfeiture account is Rs 5,000.The discount on the reissue of

forfeited shares is RS 1,000.capital reserve will be ____________

COMMERCE Lesson:1

Organisation

I. Choose the correct answer:

1. Which of the following is not the characteristic of sole proprietorship

a] Single ownership b] One man control

c] Whole profit to proprietorship d] Non-flexibility

2. What is the advantage of sole proprietorship

a. Small capital b. Hasty decision

c. Limited capital d. Limited managerial ability

3. The agreement of partnership

a. Must be oral b. Must be in writing

c. Must be writing in the stamp paper d. Can be either oral or in writing

4. Partnership may come into existence

a. By the operation of law b. By an express agreement

c. By an express or implied agreement d. By inheritance of property

5. Management of a Jointstock company is entrusted to.

a. The Registrar of companies b. The Board of Directors c. The shareholder d. The

debenture holders

6. Registration is compulsory in the case of

a. A Sole trader b. A partnership c. A joint stock company d. A joint hindu family

business

7. In a co-operative society

a. One share one vote principle is followed b. One man one vote principle is followed

c. A member must have 2 votes d. Shares are transferable.

8. Co-operative society can be started

a. Only in villages b. In towns and villages c. Only in cities d. Only in State

headquarters

9. The most suitable form of organisation for operating defence industries is

a. Government Company b. Public corporation c. Departmental organization

d. Board organization

10. The share capital of the government company must not be less than

a. 75% b. 60% c. 95% d. 51%

11. A multinational company is also known as

a. Global giant b. Partnership c. Co-operative society d. Public corporation

12. Membership by birth is main feature in

a. Sole trader b. Joint Hindu family business c. Co-operative society

d. Partnership

II Fill in the blanks

1. Division of work is called ____________

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2. Delegation means the ___________ of part of the work

3. The liability of sole trader is __________________

4. Partners share profits and losses _______________

5. In India registration of partnership is _____________

6. In co-operative society all members are ________

7. A company is regarded as a __________________

8. Broadcasting comes under____________ form of organization

9. Public corporation is known as _________________ corporation

10. Tamilnadu Electricity Board is the example of ____________

11. Government policy is also favourable towards _____________

12. Government Company employees are not _______________

Lesson: 2

Sole Trader


1. Sole trading business can be started by:

a) At least two persons b) At least seven persons c) Any one person

2.The liability of a soletrader is:

a) Limited only to his investment in the business b) Limited to total property of the

business c) Unlimited

3.Sole proprietorship is suitable for:

a) Large scale concerns b) Medium scale concerns c) Small scale concerns

4.Decision-making process in soletrading business is:

a)Quick b) Slow c) Neither quick nor slow

5.A soletrader:

a) Cannot keep his business secrets b) Can keep his business secrets

c) None of the above

Lesson:3

Partnership


1.A partnership is formed by

a) Agreement b) Relationship among persons c) The direction of government

2. The basis of partnership is

a) Utmost good faith b) Money available for investment c) Desire to work

together

3. A partnership firm may be registered under

a) 1949 Act b) 1956 Act c) 1932 Act

4. Registration of partnership is

a) compulsory b) optional c) not necessary

5. In partnership there exists a relationship of

a) principal and agent b) owner and servant c) employer and employee.

II. Fill in the blanks

1. The profit and loss of a partnership firm is shared in the _______ among the partners.

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2. The partners liability in India is ___________________

3. The maximum number of members in non-banking firm is_______________

4. A partner who does not take part in the working of the firm is called________ partner.

Lesson:4

Joint Stock Companies-1


1. Registration of a joint stock company is

a.) compulsory b) optional c) compulsory for public limited companies and

optional for private limited companies d) optional for public limited companies and

compulsory for private limited companies

2. The minimum number of members for a public limited company is

a) 2 b) 3 c) 7 d) 10

3. The liability of shareholders of a private limited company is limited to

a) the paid up value of the shares b) amount remaining unpaid on the shares

c) the extent of private assets d) amount called up

4. A private limited company can commence business

a) immediately on receiving the certificate of incorporation

b) only after the certificate of commencement of business is received

c) on getting name approval from the Registrar

d) on filing all the documents necessary for formation with the Registrar

5. The existence of a company comes to a close

a) on the death of all its promoters

b) on death of all the directors of the Board

c) on transfer of shares by most of its original members

d) none of the above

6. Table A of the Companies Act is a

a) model minutes book b) model form of balance sheet

c) model of Articles of Association d) model of memorandum of association

7. Which of the following documents define the scope of a company’s activities?

a) Momorandum of Association b) Articles of Association

c) Prospectus d) Statutory Declaration

8. Which of the following is created by a Special Act of Parliament or in State Assemblies?

a) Chartered company b) Foreign company

c) Government company d) Statutory company

9. Which of the following companies must file with the Registrar a statement in lieu of

prospectus?

a) a public limited company which raises funds from the public through

issue of shares

b) a public limited company which has made arrangement for racing

its capital from directors and their relatives

c) a private limited company

(d) all of them

10. The minimum subscription specified in the prospectus must be received within

a) 90 days b) 120 days c) 130 days d) 60 days

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11. A preference share has priority in

a) dividend only b) only in return of capital at the time of winding up

c) voting rights d) both dividend and return of capital on winding up

12. Shares can be forfeited for

a) Non-payment of any debt due to the company

b) Not attending three annual general meetings consecutively

c) For non payment of call money

d). for violent activities at the annual general meetings

13. Where the shares are issued at a discount and the nominal value of share is Rs.100, the

maximum discount that can be allowed is

a) Rs.5 b) Rs.10 c) Rs.20 d) Rs.15

14. Debenture holders of a company are its

a) Creditors b) Members c) Credit customers d) Borrowers

15. Debenture holders are entitled to receive interest in the following circumstances

a) when there are profits b) when shareholders also get dividend

c) every year irrespective of loss d) all the above

II.Fill in the blanks with suitable word or words.

1. The minimum of a number of members in a public limited company is ____________

2. The liability of a member of a company limited by guarantee is________

3. The minimum number of members in a private company is _____

4. A company, the members of which not less than fifty one percent of the paid-up-share

capital is held by a state Government, is known as ________ company.

5. The company, which need not have separate Articles of Association of its own is

___________company limited by shares.

6. The manner in which the internal management of a company carried on is contained in

_____________

7. An advertisement inviting the public to buy the debenture of a public company is known as

_____________

8. Preference shares which carry a right to arrear dividend are known as ___________

9. Such shares, as are entitled to a further dividend in addition to the usual fixed rate of

dividend are known as _________shares.

10. A private company should have at least _________directors.

11. The aggregate nominal value of qualification shares shall not exceed _______ rupees.

12. When a company has issued shares of Rs. 6000 each only, the minimum number of

qualification shares that a director should hold is______________

Lesson:5

Joint Stock Companies-II


1. First directors are appointed by

a) members in statutory meeting

b) members in the first Annual General meeting

c) by being named in the Articles of Association

d) Registrar of Companies

2. A director is acting as

a) agent of the company b) trustee of the company

c) chief executive officer of the company d) all of these

3. A person can hold directorship of not more than _________ public limited companies

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a) 10 b) 15 c) 20 d) limitless

4. The value of qualification shares of a director in a public limited company shall not exceed

a) Rs.5000 b) Rs.5,00,000 c) Rs.50,000 d) Rs.500

5. The overall maximum managerial remuneration in a public limited company shall not

exceed

a) 11% of net profits b) 11% of paid up capital and free reserves

c) 5% of net profits d) 5% of paid up capital and free reserves

6. A company secretary is appointed by

a) Government b) The Institute of Company Secretaries of India

c) The Board of Directors d) Shareholders in Annual General Meetings

7. A company should compulsorily appoint a qualified company secretary, having a paid up

capital of more than

a) Rs. 5 Lakh b) Rs.50 Lakh c) Rs.25 Lakh d) Rs.15 Lakh

8. Which of the following must hold a statutory meeting ?

a) Statutory Companies b) Private Limited Companies

c) Public Limited Companies d) Chartered Companies

9. The interval between two annual general meetings shall not exceed

a) 15 months b) 12 months c) 18 months d) 20 months

10 Which of the following business is not transacted at the Annual General Meeting

a) appointment of auditors b) issue of debentures

c) appointment of directors in place of those retiring d) declaration of dividend

11. Who can call Extraordinary General Meeting ?

a) Company Law Tribunal

b) Board of Directors on its own or on the requisition of members

c) By the requisitionists themselves on Board’s failure to convene

d) all of these

II. Fill up the blanks with suitable word or words

1. Directors act as _________trustess and officers of the company

2. The share holders are the real ______________ of the company

3. First directors are usually named in the ____________

4. Statutory meeting must be held not later than _____________ and not earlier than

__________ from the date on which a public company is entitled to commence business

5. A statutory report must be sent to every member of the company atleast

_______________days before the meeting is to be held.

6. The time between two consecutive annual general meetings should not exceed

_______________ months.

7. Altering the Articles of Association requires ___________ Resolution

8. A person Appointed to attend a meeting on behalf of a share holder is known as _____

9. The Quorum for a General Meeting of members of a public company is _____________

10. The minimum number of members required for a meeting is known as ____________

11. Auditors are generally appointed and their remuneration, fixed at the ______________

meeting.

12. The notice calling the annual general meeting, must, be given to all its members at least

_______________ days before the date of the meeting.

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Lesson:6

Stock Exchange


1. The first issues are floated in

a) Primary market b) Secondary market

c) Commodity market d) Regulated market

2. The popular method of sale of new shares in India is

a) Public issue b) Offer for sale c) Managing brokers d) Underwriting

3. Stock exchanges deal in

a) Goods b) Services c) Financial securities d) Country’s currency

4. Number of recognised stock exchange in India

a) 2 b) 21 c) 22 d) 24

5. Stock exchange allow trading in

a) All types of shares of any company b) Bonds issued by the Government

c) Listed securities d) Unlisted securities

6. Jobbers transact in a stock exchange

a) For their clients b) For their own transactions

c) For other brokers d) For other members

7. A pessimistic speculator is

a) Stag b) Bear c) Bull d) Lame duck

8. An optimistic speculator is

a) Bull b) Bear c) Stag d) Lame duck

9. Securities Contract Regulation Act was passed in

a) 1952 b) 1956 c)1964 d) 1966

10. SEBI is formed as per

a) Securities contract (Regulation) Act

b) Securities and Exchange Board of India Act

c)Companies Act

d) Indian constitution

11. A bull operator believes in

a) Increase in prices b) Decrease in prices

c) Stability in prices d) No change in prices

12. Stock exchange …………… speculation in shares

a) Does not allow b) discourage c) encourage d) prohibits

13. A cautious speculator is known as

a) Stag b) Bull c) Lame duck d) Bear

14. A stock exchange is a place to

a) Exchange one security for another

b) Buy and sell financial securities

c) Float new shares

d) Buy and sell stock of goods.

15. SEBI has the following number of members including chairman.

a) 5 b) 7 c) 6 d) 8

II. Fill in the blanks:

1. Large scale undertakings are organised in the form of _______.

2. Joint stock companies require __________________________

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3. The long term capital required by the company is divided into small units of fixed amount

called __________

4. Shares represent _______________ interest.

5. Debentures denote ________________ interest.

6. _______ is an acknowledgement for raising loan from the public.

7. Primary market is concerned with ___________

8. Secondary market deals with ________ traded in primary market.

9. Companies are assisted by _____________to make new issues.

10. _____________ is a commonly used method of issuing shares.

11. __________________act as intermediary to float new shares.

12. ________is an invitation to the public to subscribe for the shares.

13. After allotment of shares, allottees become the ___________of the company.

14. Application money should not be less than ________ percent of the value of a share.

15. Minimum subscription is fixed at _______of the issued capital.

16. The volume of business in secondary market depends on____

17. Secondhand securities are traded in _____________________

18. There are __________ regional stock exchanges in India.

19. Inclusion of securities in the official list of stock exchange is called ____________

20. Listing is ________________ for public companies.

21. Cleared securities are also called _______________

22. _____________ order gives a freehand to the brokers of a client to buy or sell a particular

security for any price.

23. Ready delivery contracts are also called as ______________

24. Investors retain securities for ____________________period.

25. _____are the employees of the members of a stock exchange.

26. Stag is called ______________

27._______________ is the supervisory body established to regulate Indian stock market.

28._______________ enables small investors to participate in the investment on share capital

of large companies.

29. ______________ act as a substitute for initial public offering.

30. BOLT is the online trading system in use at ______________ stock exchange.

Lesson-7

Co-operative Societies


1. Co-operative society can be started

a) Only at villages b) In towns and Villages c) Only in cities d) Only in urban areas

2. The minimum number of members required to from a co-operative society is

a) 2 b) 7 c) 10 d) 25

3.Dividend is declared in a co-operative store to its members.

a) Share capital b) Number of shares purchased

c) Amount of patronage given d) None of the above

4. The basic objective of a co-operative society is.

a) Earn profit

b) Organise some essential service for the benefit of its member

c) Organize essential services to the community.

d) Arrange for enough of quality goods for the community

5. In a co-operative society, the shares of a member

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a) Can be transferred b) Can be repaid

c) Cannot be transferred d) None of the above

6. Maximum membership in a co-operative society is

a) 50 b) 60 c) 100 d) Unlimited

7. A co-operative super market supplies

a) Credit b) service c) Goods d) Cash

8. Consumers co-operation was first successful in

a) England b) USA c) Swiss d) India

9. Minority interest can be protected in

a) Sole trader b) Partnership c) Co-operative societies d) Public Company

10. Central Co-operative bank is established at

a) Villages b) Districts c) State head quarters d) Urban areas

II. Fill in the blanks

1. The Latin word co-operari means ______________________

2. The father of the co-operative movement was ____________

3. Only ____________ of the profits to be distributed as dividend

4. The liability of the members of a Co-operative Society is _______

5. Transfer of shares are possible in_______________ and not possible in ___________

6. Management of a Co-operative Society is fully _______________

7. Service is the main objective of _____________________

8. Agriculture credit societies are classified into a). Rural credit society b). ____________

9. An industrial co-operative is organized by _________________

10. Super market refers to large scale ____________________

Lesson:8

GOVERNMENT IN BUSINESS


1. Government companies are registered under

a) Special statute of Government b) Companies Act, 1956

d) Royal charter d) Order of the Government

2. In a public corporation the management has

a) Limited freedom b) No freedom of action

c) Controlled freedom d) Unrestricted freedom of action.

3. For the efficient working of state enterprise the form of organisation generally considered

suitable is

a) Departmental organisation b) Public corporation

c) Government company d) None of these

4. Public can also subscribe to the share capital of

a) Public corporation b) Departmental undertaking

c) Government company d) None of these

5. In a government company the share capital of the government must not be less than

a) 51% b) 60% c) 75% d) 90%

II. Fill in the blanks with suitable words:

1. ___________ is an undertaking owned and controlled by Government.

2. The primary aim of state enterprises is ___________

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3. Public corporations are created by _______of central or state Government.

4. In a Government company atleast ____________shares are owned by the Government.

5. The oldest from of public enterprise is —————————

6. When the Government takes over an existing private concern it is called ____________

7.The most suitable form of organisation for manufacturing defence goods is __________

8._______________ checks concentration of economic power in the hands of few.

9. Exploitation of consumers and employees is a feature of _____

10. Public corporations are managed by a ___________nominated by the Government.

Prepared by

Arjunan

PG teacher in Accountancy

SVNM School

Kangayam

Sri Vidhya Nikethan Matric Higher ......pass adjusting entries also show how these items will appear...

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