Time 3 Hours Accounts 11th Total Marks 80
Attempt Any 8 Questions with the working note.
Below 65% Fail (52 marks)
1. From the following Trial Balance of Sh. Parveen Kumar, prepare the
Trading and Profit & Loss Account for the year ending 31st March 2019
and a Balance Sheet as of that date:
Dr. Balances (₹) Cr. Balances (₹)
Stock at Commencement 40,000 Sales 5,10,000
Purchases 3,20,000 Loan from Mr. Naresh @
40,000
15% p.a.
Returns Inward 7,000 Returns Outwards 8,000
Sundry Debtors 80,000 Bank 24,200
Cash 9,400 Provision for Doubtful
2,500
Debts
Manufacturing 44,000
Discount 1,800
Expenses
Trade Expenses 7,200 Rent of Premises
sublet, for the year to
4,000
30th Sep. 2019
Carriage 3,500 Capital 1,20,000
Salaries and Wages 15,800 Sundry Creditors 47,000
Postage 1,500
Stationery 800
Freight Inwards 4,300
Land and Building 2,00,000
Patents 8,000
Furniture 10,000
Insurance Premium 6,000
7,57,500 7,57,500
Information: -
(1) Closing Stock was valued at ₹ 60,000. You are informed that goods
valued ₹ 12,000 were sold and despatched on 29th March 2019, but no
entry was passed to this effect.
(2) Insurance Premium includes ₹ 1,200 paid on 1st October 2018 to run
for one year from Oct. 1, 2018, to Sept. 30, 2019.
(3) Loan from Mr. Naresh was taken on 1st July 2018. Interest has not
been paid so far.
(4) Create provision for Doubtful Debts at 5% on Sundry Debtors after
writing off ₹ 600 as Bad-debts during the year.
(5) A bill of ₹ 3,200 for advertisement in the newspaper remained unpaid
at the end of the year.
(6) Purchases include Furniture costing ₹ 5,000 purchased on 1st April,
2018.
Page 1 of 8
(7) Charge 10% p.a. depreciation on Furniture and write off 1/ th
5 of
patents.
2. The following Trial Balance was extracted from the books of Mr.
Gupta as of 31st March 2019:
Dr. Balances (₹) Cr. Balances (₹)
Stock on 1-4-2018 65,000 Capital 2,50,000
Purchases 7,10,000 Rent Received 3,900
Wages 22,000 Loan from Mr. Yadav @
20,000
15% p.a.
Trade Expenses 5,000 Sales 9,50,000
Freight and Dock Charges 8,000 Discount 600
Traveling Expenses 3,800 Outstanding Wages 2,000
Lighting and Heating 7,200 Trade Expenses accrued
500
(Factory) but not paid
Stores Consumed 2,000 Sundry Creditors 80,000
Rent Paid 16,500
Establishment Charges 18,000
Interest on Mr. Yadav's 1,500
Loan
Sundry Debtors 1,42,000
Cash 6,000
Fixed Assets 3,00,000
Adjustments:-
(i) Goods costing ₹ 20,000 were purchased and included in stock but no
entry was passed to record the purchase.
(ii) Loan from Mr. Yadav was taken on 1st June 2018.
(iii) Sundry Debtors include an amount of ₹ 2,000 due from a customer
who has become insolvent and nothing is recoverable from his estate.
(iv) Create a provision of 5% for Doubtful Debts and 2% for a discount
on Debtors.
(v) Three months lighting and heating bill due but not paid ₹ 3,000.
(vi) Rent is paid for 11 months but is received for 13 months.
(vii) Stock amounted to ₹ 90,000 on 31st March 2019.
Prepare Trading and Profit & Loss Account for the year ended 31st March
2019 and a Balance Sheet as of that date.
3. The following balances were extracted from the books of Mr. Din
Dayal as of 31st March 2019:
Particulars ₹ Particulars ₹
Stock at the beginning 41,000 Purchases 2,20,000
Rent 9,600 Sales 2,80,000
Salary 20,000 Returns (Dr.) 6,000
Bad-Debts 400 Returns (Cr.) 2,000
Page 2 of 8
Provision for Doubtful
3,000 Carriage Inward 3,500
Debts
Travelling Expenses 1,400 Carriage Outward 500
Insurance Premium 1,800 Capital 1,75,000
Proprietor's Withdrawals 4,000 Loan (Cr.) 20,000
Telephone Charges 7,300 Debtors 40,000
Printing and Advertising 5,000 Creditors 27,000
Commission (Cr.) 6,000 Investments 5,000
Rent from Sublet 4,800 Interest on Investments 600
Land and Building 1,40,000
Furniture 10,000
Cash 2,900
Prepare Trading and Profit & Loss Account for the year and a Balance
Sheet as of 31st March 2019, after taking into account the following:
(1) Stock was valued at ₹ 75,000 on 31st March 2019. You are informed
that a fire occurred on 28th March 2019 in the godown and stock of the
value of ₹ 10,000 was destroyed. The insurance company admitted a claim
of 75%.
(2) One-third of the commission received is in respect of work to be
done next year.
(3) Create a provision of 5% for Doubtful Debts.
(4) 50% of Printing and Advertising is to be carried forward as a charge
in the following year.
(5) ₹ 900 is due for interest on the loan.
(6) Provide for Manager's Commission at 10% on Net Profit before
charging such commission.
4. The following balances were extracted from the books of Shri
Krishan Kumar as of 31st March, 2017:
Particular Dr. Cr.
(₹) (₹)
Capital 24,500
Drawings 2,000
General Expenses 2,500
Buildings 11,000
Machinery 9,340
Stock (1-4-2016) 16,200
Power 2,240
Taxes and Insurance 1,315
Wages 7,200
Sundry Debtors 6,280
Sundry Creditors 2,500
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Charity 105
Bad-debts 550
Bank Overdraft 11,180
Sales 65,360
Purchases 47,000
Scooter 2,000
Scooter Expenses 500
Bad-debts Provision 900
Commission 1,320
Trade Expenses 1,280
Bills Payable 3,850
Cash 100
1,09,610 1,09,610
Adjustments:-
(i) Stock on 31st March 2017 was valued at ₹ 23,500.
(ii) 1/5th of general expenses and taxes & insurance to be charged to
factory and the balance to the office.
(iii) Write off a further Bad-debts of ₹ 160 and maintain the provision
for Bad-debts at 5% on Debtors.
(iv) Depreciate Machinery at 10% and Scooter by ₹ 240.
(v) Provide ₹ 700 for outstanding interest on Bank Overdraft.
(vi) Prepaid Insurance is to the extent of ₹ 50.
(vii) Provide for Manager's Commission at 10% on the Net Profit after
charging such Commission.
Prepare final accounts for the year ended 31st March 2017 after giving
effect to the above adjustments.
5. Prepare Trading and Profit and Loss Account and Balance Sheet as of
31st March 2017 from the following Balances of Mr. Sardari Lal:
Particulars (₹) Particulars (₹)
Capital Account 41,000 Drawings 5,000
Creditors – Trade 30,000 1,71,00
Purchases
0
Creditors – Expenses 6,800 Carriage inwards 1,500
Rent Received 600 Wages 23,000
Purchases Returns 4,000 Power 9,000
Sales 2,89,60
Rent and Insurance 19,900
0
Bad-Debts Provision on 600
Salaries 34,400
1st April, 2016
Advertising Development 8,000 Discount Received 1,800
Goodwill 5,000 General Charges 8,600
Plant and Machinery 20,000 Sales Returns 600
Page 4 of 8
Traveller's Samples 2,700 Traveller's
Commission 2,890
Stock on 1-4-2016 32,000 Traveller's Salaries 9,100
Debtors 14,600 Discount Allowed 5,000
Cash at Bank 2,000
Cash in hand 110
Adjustments:- The Closing stock was ₹ 23,000 but there has been a loss
by fire on 20th March 2017, to the extent of ₹ 20,000, not covered by
insurance. Depreciate Plant and Machinery by 10% and Traveller's Samples
by 33 1/3%. Increase the Bad-debts Provision to ₹ 2,000. Write 20% off
Advertising Development Account. The annual premium on insurance
expiring 1st June 2017 was ₹ 1,200. Provide for Manager's commission @
5% on Net Profits after charging such Commission.
6. From the following Trial Balance of Mr. Alok, prepare the Trading
and Profit & Loss Account for the year ending 31st March 2019, and
a Balance Sheet as of that date:-
Dr. Balances (₹) Cr. Balances (₹)
Drawings 5,275 Capital 59,700
Bills Receivable 4,750 Loan at 8% p.a.
10,000
(on.1.4.2018)
Machinery 14,400 Commission Received 2,820
Debtors (including X for 30,000
Creditors 29,815
dishonored Bill of ₹ 1,000)
Wages 20,485 Sales 1,78,215
Returns Inward 2,390
Purchases 1,28,295
Rent 2,810
Stock (1.4.2018) 44,840
Salaries 5,500
Traveling Expenses 945
Insurance 200
Cash 9,750
Repairs 1,685
Interest on Loan 500
Discount Allowed 2,435
Bad-Debts 1,810
Furniture 4,480
2,80,550 2,80,550
The following adjustments are to be made:
(i) Stock in the shop on 31st March 2019 was ₹ 64,480.
(ii) Half the amount of X's Bill is irrecoverable.
(iii) Create a provision of 5% on other debtors.
(iv) Wages include ₹ 600 for the erection of new Machinery.
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(v) Depreciate Machinery by 5% and Furniture by 10%.
(vi) Commission includes ₹ 300 being Commission received in advance.
7. From the following Trial Balance of Mr. Tarun Ghosh, prepare
Trading and Profit and Loss A/c for the year ending 31st March 2017
and a Balance Sheet as at that date:
Dr. Balances (₹) Cr. Balances (₹)
Opening Stock 38,000 Capital 3,00,000
Purchases 12,60,000 Secured Loan 20,000
Wages: Factory 20,000
Sales 15,40,000
Office 1,600
Salary 54,000 Sundry
40,000
Creditors
Business Premises 2,00,000 Returns Outwards 15,000
Furniture and Fixtures 40,000 Bills Payable 12,000
Packing Machinery 60,000 Bank 33,000
Tools 15,000
Rent 58,400
Loan to Mr. Ram Narain
on 1st 10,000
November, 2016 @ 12%
p.a.
Sundry Debtors 1,31,500
Cash in Hand 7,400
Drawings 60,000
Bills Receivable 4,100
19,60,000 19,60,000
Adjustments:-
(i) Closing Stock amounted to ₹ 50,000.
(ii) Goods costing ₹ 8,000 were sent to a customer on a sale or return
basis for ₹ 10,000 on 30th March 2017 and had been recorded in the books
as actual sales.
(iii) Allow 8% interest on Capital and charge ₹ 3,000 as interest on
drawings.
(iv) Depreciate Business premises by 5%; Furniture and Fixtures by 20%
and Packing Machinery by 10%. Tools are to be revalued at ₹ 12,000.
(v) 21/2% for discounts is to be provided on Debtors.
(vi) ₹ 1,500 is to be provided for Bad and Doubtful Debts.
8. From the following Trial Balance extracted from the books of Mr.
Karuna Sagar, prepare a Trading and Profit & Loss A/c for the year
ended 31st March 2019 and a Balance Sheet as of that date:
Page 6 of 8
Dr. Balances (₹) Cr. Balances (₹)
Purchases 3,30,000 Sales 5,30,000
Rent Paid 7,480 Returns 8,000
Wages 33,000 Trade Creditors 37,000
Salaries 30,800 Discount 3,000
Power 5,400 Capital 2,00,000
Stock on 1-4-2018 15,000 Miscellaneous Income 3,060
Stock on 31-3-2019 36,000
Charity 500
Debtors 53,000
Furniture 8,000
Motor Car 2,00,000
Motor Car Expenses 18,000
Insurance 3,600
Unexpired Insurance 600
Drawings 5,000
Cash Balance 34,680
7,81,060 7,81,060
Information:-
(i) Goods Costing ₹ 2,000 were taken away by the proprietor for his
personal use and goods costing ₹ 1,500 were given away as charity.
(ii) Expenses for wages, rent and salaries are uniform throughout the
year and those for March have not been paid.
(iii) Provide 10% depreciation on Furniture and 20% on Motor Car.
(iv) Provide for Manager's Commission at 10% on Net Profit after
charging such Commission.
9. Prepare Trading and Profit & Loss Account and Balance Sheet as of
31st March, 2017, from the following balances:
Particulars (₹) Particulars (₹)
Capital A/c 5,00,000 Stock on 1.4.2016 67,000
Drawings A/c 36,000 Salaries & Wages 24,000
Bills Receivable 5,800 Outstanding Salaries and
2,000
Wages
Plant & Machinery 3,80,000 Insurance (including
premium of ₹ 1,000 per
2,600
annum paid upto 30-9-2017)
Sundry Debtors 58,000 Cash 46,600
Loan A/c (Cr.) at 12% 20,000
Bank Overdraft 15,000
p.a.
Manufacturing Wages 40,000 Repairs & Renewals 1,600
Returns Inwards 3,000 Interest & Discount (Dr.) 4,400
Purchases 1,20,000 Bad-Debts 4,000
Sales 2,60,000 Sundry Creditors 30,000
Rent 28,000 Fixtures & fittings 12,000
Commission Received 6,000
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Adjustments:-
1. Stock on hand on 31st March 2017 was ₹ 80,000.
2. Further Bad-debts have written off ₹ 2,000 and Created a provision of
5% of Sundry Debtors.
3. Rent has been paid up to 31st May 2017.
4. Manufacturing wages include ₹ 10,000 of new Machinery purchased on
1st October 2016.
5. Depreciate Plant and Machinery by 10% p.a. and Fixtures and Fittings
by 20% p.a.
6. Commission earned but not received ₹ 1,000.
7. Interest on Loan for the last two months is not paid.
8. Goods worth ₹ 4,000 were distributed as free samples
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