553 2h is 1,00,000 pening 1,50,000 purche 25,000 porch 10,000 pirect €% 5,000 Coxria 4,00,000 sales 50,000 . Closing stock [Manonmanian, BCom pe ac cera a () Other Exercises 10g ys for Final Ac ; sie agree entries to adjust the following: (a) outst nding salaries RS. 1,200; Rent Rs. 300 it i 4 repaid insurance jum Rs. 454 a aie outstanding + interest on investments Rs. 400; pividend Rs. 5 (@ Discount received in advance Rs. 150 (6) Bad debts written off Rs. 0. ()_ Interest on securities received jn advance Rs. 500. [Bharathidasan, B.Com, Oe 2, Show the necessary entries to adjust the following in the books of ‘x? = . . 1984) 2018: fe (@)_ Salaries for the month of June 2018 Rs. 1,500 unpaid. Soe en ene ae : : on (©) Wages include a sum of Rs. 2,000 spent on the e © erection of a cycle shed for employees. (@) Goods issued as samples Rs. 200 (c) Rent paid in advance Rs. 250. [Pondicherry, B.Com., Dec, 1999] Pass journal entries to incorporate the follow i i (@) Fea 2.5% for discount on ager Se Palate a jebtors. (Debtors Rs. 30,000) fuaeo Td (b) Closing stock was valued at Rs. 43,000 (c) Wages owing Rs. 2,500 : (d)_ Insurance paid in advance Rs. 1,500 (e) Included in debtors is Rs. 1. 000 owii . 1 ing by the proprietor.nal coon (Plant which stood Oe momento moe 60 000 in the books on teh 554 Rs. 60,000. A net invoice of nerart eXchange for gt SAY OF the year was book. * 30,000 was: pessed eas ea ws igh the Private purchases am purchases @ oe Ounting to Rs, 15,9 provisions on Debtors and Creditors 4, From the following figures, You are re, (Pondicherry, B.Com, Deo 2001) - (@) Provision for doubtful debts aes © PhParE: (b) Bad debts a/e; and : (©) Profit & Loss A/c, Jan 1, 2020 Provision for ad be ana t bad debts Rs. 2,500 Dec. 31, 2020 Debtors, cay Information : Make provision for bad debts at 5% on ee or Rs. 1,900 had to be written offas bad debts, The the extent of 5% on the debtors. Make the necessary journal entries and show th Alc for 2015 & 2016, (Periyar, B. ‘Com., April/May 2002] (Ans : Debit to P&L a/e : Rs.370} tors Were Rs. 76,900 out of which firm creates a bad debts provisionto le provision for Bad & Doubtful debts {Ans: In 2015 Debit P& LA/e Rs. 6,050; In 2016 Credit P& LA/e Rs 1,350] 6 On Ist January 2017 M/s Kamakshi had a Bad debts provision of Rs. 2,600, On 3ist December 2017, the total debtors amounted were bad and had to be written off. The firm debts @ 5% of the debtors. to Rs. 73,600 out of which Rs. 1,600 wants to maintain a provision for Bad On 31st December 2018, the total debtors amounted to Rs. 41,280 out of which Rs. 1,280 had to be written off as bad debts. The provision for bad debts is to be maintained at 5% of debtors. Show the bad debts account and the provision for bad debts accounts for 2017 and 2018, [Ans: In 2017 Debit P & LA/c Rs. 2,600 and in 2018 Credit P& LA/c Rs. 320]Financial Accountin, Se: SSS e 7. Following details # ors at th Bad debts wr"! Provision for doubt Provision to be maint for doubtful debts Prepare provision for 40% no! 5 i bt fa gebts (ovens saine’ i a pts alc for three a CA./ B.Sc. (ICE) Oct, 209 1) : alr epited 10 P&L Ale : Rs, 6,009, BDD aie vdited to P&L alc : Rs, 2,509, Pi : Balance ° alc cred! tans 2095 ance of PBDD A gebited to P&L a/c : Rs, 7,709 A tance of PBDD ® 72020 shows the following (among 2020 : Bala” as on 31-12" wubtfil d jy Manian 8. The Trial Balance of Thiru Man na others). 80,000 1,000 Debtors 5600 id debt Oneonta Provision for bad debi (1-1-2020) ul debts at 5% on debtors. Give the jde for bad an ision for bad debts A, Rou are reauied pee Hic Bad debts A/e, provision a ‘ies an ey neath a [Ans : Debit P & LA/e— Rs. 3,000] % and a Provision for Discount 9. A.Company maintains its provision of Bad debts Onn on Debtors @2%. You are given the following details: Bad debts Discount allowed i seoroeifcal@avers writ etic eqns ae offBad debts and Discounts) amounted to Rs. 1,80,000 ‘on 31st December 2020 and Rs. 1,26,000 on 31st December ents On January 1, 2020 Provision for Bad debts and Provision for Discount on Dentors had balances of Rs. 13,650 and Rs. 2,400 respectively. Show the provision for Bad debts A/c and Provision for Discount on Debtors A/c for 2020 and 2021. 4 {Ans: 2020 : Transfer of provision for Bad debts to the credit of P& LA‘ Rs, 2,550; Transfer of provision for Discount on Debtors to the debit side of P & LA/e Rs, 4,506; 2021 : Transfer of provision for Bad debts to the debit side of P & LA/e Rs, 1,800; Transfer of provision for Discount on debtors to : the debit side of P & L A/e Rs. 474) Bad debts and discounts are to be reduced from debtors before computing provision for Bad Debts, 2. Bad debts, discounts and ‘current reduced from debtors computing Hint: 1. t year's provision for bad debts are to be DrOVISION for dicmnea un abtors ant De ay creditors A on for Doubtful Debts eV on for Discount on Debtors provision FOF Discount on Creditors provi sun eS ioe alot ledger accou onions for Discounts on Debtors and P ‘Transfer of provision for discount on debtors to P&L A/ qransfer of provision for discount on creditors to P&L. ale Rs 1,560 2 Rs. 1,560.) parson of Funk AcCOURES Rs, 85,000 60,000 1,700 1,666 600 Creditors at 2 per cent. ee $0 em had the following balance poks OF on January 1, 2018; 556 . d Creditors at D dry_Debtors an ecember 31, 2 $3,000 respectively. Bad debts during the year oo ty Rs. 1,25,000 and gs S30) Jeamed were RS. 166 and Rs, 500 respectively, Rs 1500 and Discounts ints and create provision for Doubtful Debts Ane to show per cent and [Bharathiai [Ans : Transfer of provision for Bad debts ratte iy 1992] + Rs, 3,550; - 9253 i. Prepare trading and profit and loss Account from the information given below: Rs. a z Rs. — Opening Stock 3,600 Rent (Factory) 400 Purchases 18,260 Rent (Office) 500 ‘Woees 3,620| Sales Retums 700 Closing Stock 4,420| Purchase Retums 900 sales 32,000 | General Expenses 900 Carriage on purchases 500| Discount to Customers 360 Carriage on Sales 400| Interest from Bank 200 [Ans: Gross Profit — Rs. 10,240; Net Profit Rs. 8,280] 12, From the following balances of Arvind, prepare a Trading A/c, Profit & Loss A/c and Balance Sheet as at 31st December 2021. Rs. Rs. Credit Balances: Capital _ | 72,000 | Postage 546 - Creditors 17,440 | Bad debts 574 Bills Payable 5,054 | Interest 2,590 Sales 1,56,364 | Insurance 834 Loan 24,000 | Machinery 20,000 Debit Balances: Stock (1-1-2021) 19,890 Debtors: 7,710 | Purchases 1,24,184 Salaries 8,000 | Wages Be) Discount 7,000 | Buildings Wied Fumiture 32,310 Value of, on 31-12-2021 Rs. 28,600 4 goods on hand is Grae rian SBE 32,290; Net Profit - Rs. 17,7465, Balance Sheet ‘Total — Rs. 1,362 yinces were extracted Financial Aceoy, oks of Prasad on 31st Marg ig the bo a 551 73, The following PY ee Ae Capital 4,000 aad Seis ie Drawings 5,000 | Loa! 1s General Expenses 22,000 Sat = lane Buildings 1,680 | Purchases aap Machinery 32.400 | Motor Car ee ‘Stock 4,480 Reserve ium (Cr) _ Power 27630 | Commission (Cr) ie Taxes & Insurance 1400 | Car Expenses 2 4 Wages 12'360 | Bills Payable an Debtors 00 Cash , Bank Overdraft or re stock on 31st ‘March 2018 was snes at Rs, 47,000. Prepare the final Accoun, fe the ye Ist March 2018. wast [Ans: Gross Profit — Rs 32,440; Net Profit — Rs, 27 Balance Sheet Total ~ Rs. 1,04 499 deren the following Trial Balance: of Ravi, prepare Trading and Profit and Loss A. ) for the year ended December 31st 2019 and a Balance Sheet as on that date: ‘Trial Balance 8 Particulars Debi = Rs. jx Capital Sas 40,000 z 25,000 oe 15,000 Rent 2,000 Insurance 1,500 Drawings 300. Machinery 5,000 Bank Balance 28,000 ash 4,500 Stock 1-1-2019 2,000 pao 5,200 Creditors 2500 eee 1,000 Adjustments required: ee 66,000 (4) Stock si —= on 31-12-24 ©) Salaries unpaid 019 Rs. 4,900 a Rent paid in advance Rs. 300 Insurance prepaid Rs. 200 Rs. 99 [Ma (Madras, B.C.8. (ICE) MAy 2002] [Ans : GP. : Rs, 9.700; N.P. : Rs, 5,890; Bis Total 2 Rs. 42,190]5.57 =< 73, The followin palances ee Capital ‘Drawings General Expenses Buildings 220 Te 1 Taxes & Insurance x 14,400 12,560 Debtors Bank Overdraft Charity Stock on 31st March 2018 March 2018. Financial Aco ooks of Prasad on 31st Marg), iy 20) i Bad debts 1309 Motor Car ura Reserve Fund (Cr.) mn Commission (Cr.) ‘i Car Expenses 2 Bills Payable 264 Cash Pd 16 210 wyas valued at Rs. 47,000. Prepare the fin al A ‘CCOuntS fo, Rs 32,440; Net Profit re the year ended on 31st KO JAns: Gross Profit — Balance Sheet Te (From the following Tra! Balance of Ravi : tere aes , prepare Trading and i for the year ended December 31st 2019 and a Balance ise ote a Lt Trial Balance rat se At Particulars = sate Rs. Credit ipital " Sales Purchases ae Salis a am ee 2,000 ice 2 Drawings 0 ea uae, oi cae san Stock 1-1~ see Cea 400 Creditors in ,500 patel (cena ae Adj : ° 66,000 Gente Orsecaen £6000 au (©) Salaries 1-12-2019 “e000 (©) Rent pad in ac Rs. 4,900 ¢ susie in advance Rs. 300 Ice prepaid Rs 200 Rs. 99 [Ans : GP. f oe [Me Rs 9,700; Pes es BCS: (ICE) May 200) ; Bis Total : Rs, 42,190]tiny 1 5 book of Prasad on 31st Marchant Financial Ace, eat ciracted from 557 onna cae som ad debts i pee joan a i Buildings Mo Fund (Gey, ew shiney Reserve ite Machinery ission (Cr.) Stock Commission (Cr. 2649 Power Coreen an Taxes de suranee Bills Payable a ‘Wages Cost i ant 210 Prey the final Accoy jank at Rs. 47,000. Prepare ns fy Charity ranch 2018 was valued Stock on 31st Marc! the year ended on 31st March 2018. [Ans: Gross lance: ber 3ist 2019 an ‘Trial Balance rom the following Trial for the year ended Decem sit - Rs 32,440; Net Profit — Rs, 27 Prot» Balance Skeet Total = Re. AA i, prepare Trading and Profit and Loss A of Ravi, Pre Balance Sheet a8 Gn ta dee il 54, [Ans : GP. : Rs, 9,700; N.P. ; Debit Credit Particulars Rs. Bs ze 40,000 ae 25,000 Sales 15,000 Purchases 2,000 Salaries i = 1,500 Insurance a Drawings pets Machinery 5.000 Bank Balance cae ca 2,000 Stock 1-1-2019 5,200 Debtors 2,500 Creditors ee) 66,000 66,000 Adjustments required : (@) Stock on 31-12-2019 Rs. 4,900 (©) Salaries unpaid Rs. 300 (©) Rent paid in advance Rs. 200 © Insurance prepaid Rs. 90 (Madras, B.C.S, (ICE) MAy 2002] Rs. 5,890; B/s Total : Rs. 42,190]ounts following a 558 i! .d.a Balance S SRO ae — ; fe anda 1c ae on that date: 088 Ale for the year } 0s ‘ial Rs, Gs Peel Roa y yor 580 | Bad debts recovered a a inwards Creditors oy 5 ry cepa Return Outwards ee He, Bank Overdraft te is Sales ney jjingenpenses Bills Payabl ae ae See 1,350 00k pst allowed pawings “Adjustments: () The Closing Stock on 31-12-2021 was Rs. 4,200 i) Write off Rs. 80 as bad debts and create a reserve for bad debts at 5% on sundry debtors. Gi) Three months rent is outstanding. [Madras, B.B.M; March 1997] : {Ans: Gross Profit — Rs. 4,470; Net Profit — Rs. 2,595; Balance Sheet Total - Rs. 14,285} aa following balances as at 31st December 2020 ofa trader, Pspatt a Trading and Profit & Loss Alc for the year 2020 and a Balance Sheet as on that date: Rs. | |__ Rs Salaries 5,500 | . Creditors 9,500 Rent 1,300 | Sales 32,000 Cash 1,000 | Capital 30,000 Debtors 40,000 | Loans 10,000 Trade expenses 600 Purchases. 25,000 ‘Advances: 2,500 Bank balance 5,600 a 81,500 81,500 re5.59 Adjustments: amo (The Closing a one mont’s Speen paid in os a for ful debts: c (i) (iii) One m (iv) Provide 5 Pe ie a Trading and a Balance Sheet a5. 0 *Drawings Goodwill Buildings Machinery Bills Receivable + Opening Stock = + Purchases - Wages Carriage Outwards > Carriage Inwards ~ Salaries Rent Discount Repairs Bank Cash - Debtors Bad debts Sales Returns Fitmiture — Advertisements General Expenses Adjustments: (i) Closing Stock was Rs. 35,000, @y. (Trecling Ze’) . [Madras, B.Com., March 41997) 16,0005 Net Profit — Rs. 6,299, t- Rs. tans: Gres Profit jance Sheet Total — Rs. 56,299) 31st December 2017 the year ended jen el i Hi Ae towing "Trial Balance of Mr. ees t date f that Rs. lot en oe Tot 1,60,000 pills Payable 35,000 Creditors 70,000 Purchase Returns 2,650 2,18,0 Sales el) 4,85,650 4,85,650 (ii) Depreciate Machinery and furni Gi Imiture by 10%, \4) Gil) Outstanding wages Rs. 1,500... ae \™ (iv) Prepaid advertisement R . s. an (¥) Create 5% on debtors for bad debts as provision. (Madras, B.Sc., May 1997] Fut[Ans: Gro: Rs. 80,750; Borer ont | et Pr 0,750; Balance Sheet Total Rs. 134,150; a prial Balance of Thiru. Rehman as on 31st Ma ‘ Rs, 3,02,250) rch 2018, Prey » Prepare wing ! pet prot ‘g Loss A/e and Balance Sheet taki ing into accour int the ia fit ge Credit Bal a | 42,000 i cali Rs. i eaiine P Capital ie fie 20,000 | Sales 62,000 ‘ite Ri 98,781 | ws eturn Outwards mee ue 4.2017 Sundry Creditors Si) Bills payable 6,300 9,000 oe se rs, i pawings Adjustments: (i) Stock on 1-3-2018 was Rs. 6,800. (iy) Salary outstanding Rs. 1,500. (ji) Insurance Prepaid Rs. 150. (iv) Depreciate machinery @ 10% and patents @20%. (v) Create a provision ‘of 2% on debtors for bad debts. ‘[Madras, B.Com.(CS) (New) Nov. 2008; B.Sc., Oct. 1996] [Ans: Gross Profit Rs. 43,7155 Net Profit — Rs. 16,775: tal — Rs. 90,330] ie following are the balances extracted from the books of Ganesh as on 31 -12-2020. Prepare Trading and Profit and Loss account for the year ending 31-12-2020 and a Balance Sheet as on that date. Balance Sheet To! i LEEoc ~~ Debit Balances Drawings Cash at Bank Cash in hand Wages Purchases Stock 1-1-2020 Buildings Sundry Debtors Bills receivable Rent Commission General Expenses Fumiture ‘The following adjustments are to be made : (a) Stock on3 1-12-2020 was Rs. 4,000 (b) Interest on capital at 6% to be provided (©) Interest on Drawings at 5% to be provided (Wages yet to be paid Rs. 100 (©) Rent prepaid Rs. 50 [| 20,000, 16,000 4,500 40,500 [Madras, B.C.S. April 2002] [Ans : GP. Rs, 10,900; N.P. Rs, 8,450; Bis total : Rs. 30,050] '0. Below is given the Trial Balance of Tripathi Brothers of Ahmedabad as on 31st December 2019: Debit Balances Rs. Credit Balances Rs, Opening stock 3,100] Capital 12,000 Buildings 17,000 | Bank Loan 3,000 Furniture 1,000} Sundry creditors 4,920 Purchases 21,200) Returns outwards 420 Salaries 2,200 | Interest * 130 Bad debts 120) Dividends 110 Cash in hand 1,300 Sales 41,460 Returns inwards 1,020 i Me 600]. llaneous expenses 500 »jnsdditior for has to be mad ‘provision @ 5% for doubtful debis has to be le. 6 (ie value of tock on 31st December 2019 was estimated at 2,980. scellaneous expenses i *, fmt misc! -xpenses included isan yearly vw : “The yearly premium falls due every oe See arch, 120. the following information is also given : (a Depresation on buildings is to be charged at 10%, salaries for December 2019 amount i e) ing to Rs. re 1 © paring Trial Balance. g to Rs. 200 were not paid till thedateof repre Trading Account and Profit & Loss Aesount of Tripathi ser 2019 and Balance Sheet aon that date un OF eon rottets te ‘[Madras, B.Com. April 1999] q [Ans : Gross Profit : Rs. 13,780; Net profit Rs. ae Baldnce Sheet total ~ Rs. 2 10) 21, The following are the balances extracted from the ledger of Karikalan as eee 31.2020: 4 Rs. a Zarmatans Capital Ale | 20,000 | Reserve for discount on debtors | 200 Drawings 3,500 | Loan @9% 5,000 Buildings 10,000 | Salaries 4.400 Machinery 2,500 | Wages 7,500 \ Furniture & fittings 600 | Rent 2750 Opening Stock 12,500 | Travelling expenses 1,250 \ Cycle 400 | Postage & telegrams 135 Purchases 75,000 | Rates & taxes 90 i Sales 125,000 | Carriage Inwards 2,500 Sales Returns 5,000 Carriage Outwards 750 Duty paid on purchases | 15,000 Interest paid 315 Sundry debtors 10,000 | General charges 900 Sundry creditors 7,500 | Bad debts 300. Reserve for bad & doubtfil - Cash inhand eee debts 490 | Cash at Bank 2,400Financial Account; a ws wre necessary , al we a ie (a) Sto Sg Tees oe Pr i the F ibe .o% and the reserve for disco) (b) rene 40 Rent RS. il debts a 5% ant UNE on Sal aire ee , r pi %, Fi a © Ma the ae on sunt 9 ae 9.5%, Machinery 10%, Furniture 6% ang ors 8 for ition (@) Provide depreciat d the Balance Sheet for the year endeg cycle 15% at and Loss Ale SP Prepare Trading & Proll [Madras, B.Sc., May 1995) 31-12-2020 sts. 20,900; Net Profit Rs. 8,491 40 fit. — Cros igied Sheet Total ~ Rs. 38,816.50) unt and Balance Sheet as on RRS Manufacturing wages | 40,970 [Ans: fit and Loss Acco 22, Prepare Trading & Pro’ 31st March 2021. S.Chandra's Capi iia’ Bee S. Chandra's Drawings A/e pease oe Sundry Creditors asiiel aan 6% Loan Ale (Credit) aan bee oe ae e i Interest & Discount (Dr.) 5,870 sa debtors (including Travel ing Expenses 1,880 Kalpana for dishonoured Repairs & Renewals 3,370 bill of Rs 1,000) Insurance (including Bills Receivable 9,500 premium of Rs 300 p.a paid up to 30th Sep. 2021 400 Provision for doubtful debts 2,500 Fixtures & fittings 8,970 | Bad debts 3,620 Stock Ist April, 2020 89,680 | Commission Received 5,640 Purchases 2,56,590 | Plant & Machinery 28,800 Adjustments: (i) Stock on hand on 31st March 2021 was Rs. 1,28,960. (ii) Write off half of Kalpana’s dishonoured bill. (iii) Create a provision of 5% on sundry debtors. (iv) Charge 5% interest on capital. (v) Manufacturing wages includ le Rs. 1, ‘ purchased last year, 200 for erection of new machinerycpepreciate plant & Machinery bi 5% jommission y 5% and fixtures & fittings by y 10% earned bu i ; it Not received am jnterest OF oan for the last two month }ount to Rs. 600. hs is not paid Madras, B.Com» BBA, BCA ete AP 2005 [Ans: Gross (Modif Pre ied); B. ofit— maa ae aun eae , Sept. 1996] a '5 foe s sh Balance eee pea | Rs, 2,56233) ow the followin: g balane year ended 31st December 8. Prepare hi eee eee a ealance Sh nd Profit & Loss eet as at that date: ¥ Capital ad Loar 9 puildins in at 6% p.a. ind & gs sia ipa. Interest on. investments Sundry Creditors Commis X ey = i sion received eturn outwards, 6,430 Repairs ‘Commission Furniture Investments pee Adjustments: () Closing stock was RS: 1 28,960 00 41-12-2020 Gi) Commission receive’ (iii) ‘Travelling expenses. were overdrawn by the employees 1° the extent of Rs. 2,000. (iv) Create @ 5% Reserve ‘on sundry, debtors and allow 2% discs and creditors. (v)_ Interest on Joan due for 9m (vi) 4th of wages and sa! salaries Sh ne be charged to trading Accow! [Madras B: ae sept. 1994] _ Rs, 1,26,097+ 8 , Rs. 16,6225 “ps. 2598221 ! ] - count on Debtors jAns: GP