as
curr curren en liab liabil ilit ity. y.
Illu Illust stra rati tive ve Exam Exampl pl
12 Trial Trial Balan Balance ce [Extra [Extract] ct] . ( 16,000
Salaries
in
Solution
F o e m o ye ye r h a o f P ro ro v d en en t F un un d S a A cc cc ou ou n w i b e d eb eb i e d n d P ro ro v d en en t F un un d O u N e t e ff ff ec ec t (i) S a a r A c o un un t be ch ge P ro ro f a n L o A c o un un t w i R s 1 7 ,0 ,0 0 0 ( 16 16 ,0 ,0 0 0 1,000); 1,000 000 e ac om Sa n d P .F .F . O u a nd nd i g ' R s 1, ac h a r b e h ow ow n a s a b e s
Illu Illust stra rati tive ve
xa pl
n d n g A c o un un t w i
be cr di ed
h e B a a nc nc e b o
P .F .F . d ed ed uc uc te te d
13 Trial Trial Balan Balance ce [Extra [Extract] ct] .(
C r ( Rs Rs )
Salaries less . R
Solution Ou
ro v id id e n 1, 1,200 200 P ro
p r p r e to to r
mp ha
Fun
r em em i tttt an an c e 50 i ..ee . R s p ro ro p i e o r mo wa b e a dd dd e w i h e a la la r Th nt wi be
c on on tr tr ib ib ut ut io io n a n Ac
0%
i .e .e . R s
w a d ed ed uc uc te te d mp
om he
1, 1,200 200 1, 1,200 200 o P . R N e t E ff ff ec ec t Th Sa A cc cc ou ou n w i b e n c a se se d b y R s 1,200. T h e t o a i s a a r (Rs 5, 5,400 400 1,200) ofRs 6, 6,600 600 w i L o s A c c ou ou n t A l e rn rn a v e y , o n e mp m p lo lo ye ye es es ' h a e , i.e. Rs 60 c a b e a dd dd e w i he Sa A c o un un t n d Rs 6, 6,000 000 Ac Rs wi wn Ac e mp m p lo lo y on bu on P .F .F . H ow o w ev ev e h e e f c t o n P ro ro f n d L o A cc cc ou ou n w i b e h e m e
lo in
Stoc Stoc
valu valued ed
Illu Illust stra rati tion on
et
ce
ve
b e d eb eb i e d wn
P ro ro f Pr
nd
Modern Modern Accou Accounta ntancy ncy
Sund Sundry ry Debt Debtor or
1 9 9 8 (i) M a rc rc h 3 1 (ii)
(Iii)
(iv)
(vi)
(vii)
vi
( ixix )
(2
Acco Accoun unt. t.
C l o si si n g S t o c lc ( No No t 1 ) T o T r ad ad in in g lc ( B ei ei n t h a d ju ju s tm tm e n f o C lo lo s in in g S to to c k
r.
80,000
Drawings
r,
10,000
lc T o P u rc rc h a se se s lc ( Be B e in in g h e a dj dj uuss tm tm e n o r g oo oo d w i h d ra ra w n b y h e p ro ro pr pr ie ie to to r Building
r, lc T o L eg eg a C h ar ar ge ge s lc ( Be B e in in g c os os t o f s ta ta m p r eg eg is is trtr at at io io n c h ar ar ge ge s w r on on g l d e bi bi te te d t o L e ga ga l C h a rg rg e s A c co co u nt nt , n o w a d ju ju s te te d )
20,000
D e pr pr ec ec ia ia titi o o n P a te te n t Trademarks lc T o P a te te n t Trademarks lc ( B e in in g t h e a m o u n t o f d e p re re c ia ia t io io n w r i tttt e nn- o ffff )
r.
2,000
No t 2 ) lc ( No T o S a le le s lc ( B ei ei n t h e a d ju ju s tm tm e n f o g oo oo d s w i th th d ra ra w n b y t h p ro ro p riri et et or or )
r.
50
Furniture
lc r. T o P u rc rc h a se se s lc ( B ei ei n t h p u rc rc h a s o f f ur ur ni ni tu tu r f o o ffff ic ic e u s e w r on on g l d e bi bi te te d t o P u rc rc h a se se s A c c ou ou n t n o w r ec ec titi fifi ed ed )
10,000
S u nd nd r D e bt bt or or s lc T o C a pi pi ta ta l lc ( B ei ei n c a pi pi ta ta l i nt nt ro ro d uc uc e d b y t h e p ro ro p riri et et o w r on on g l c re re d itit e
25,000
r. t o S u n dr dr y D e bt bt or or s A c co co u nt nt , n o w r ec ec titi fifi ed ed )
S a e s lc
T o S u nd nd r D eb e b to to r lc ( B e n g c as as h p a b y d eb eb to to r w r on on gl gl y c re re d t e
5,000
r. S al a l e A c co co un un t n o
r ec ec titi f e d
G o od o d ss- in in -T -T ra ra ns ns i lc T o T r ad ad in in g lc ( B ei ei n t h e a dj dj us us tm tm e n t f o g o od od s i n t ra ra n si si t
orki orki (1)
17.29
80,000
10,000
20,000
2,000
10,000
25,000
5,000
8,000
otes otes
80,000 is to be adju th mark market et pric pric Rs 1,00,000. Ther Theref efor ore, e, only only adjust st d. ll 3,000. Ther Theref efor ore, e, th bala balanc nc (R 3,500 -R Draw Drawin ings gs Acco Acco nt nd redi rediti ting ng Sale Sale /Pur /Purch ch se Acco Accoun unt. t.
st
post post
to
ag
cc unt. unt.
80,000
3,000)
hich hich is lowe lowe th n'
4,500 is imma immate teri rial al Sale Sale isto djus djuste te by de itin itin
(g)
.A into into th book book [CA (Entra (Entrance)-A nce)-Adapt dapted] ed]
Solution Journal
Sep 30 (b
lc T o C lo lo si si n S to to c lc ( B ei ei n g oo oo d a lrlr ea ea d s o w a s w r on on gl gl y n cl cl ud ud e A d v an an c e S a la la r lc T o S a la la riri e ( Be B e in in g s al al ar ar ie ie s p a
4,000
r.
4,000 t h s to to c a t t h e c lo lo s n g o f h e y e ar ar , n o
r ec ec t f ie ie d r.
lc a dv d v aann c
lc T o P u rc rc h a se se s lc ( B ei ei n g oo oo d p ur ur ch ch a se se d o r (d
L.F.
Particulars
Date
2,500 2,500
S e p e m be be r 9 7 t ra ra ns ns fe fe rr rr e
A d va va nc nc e S a la la r e s A c co co un un t r.
1,000 1,000
s ta ta f w a s w r on on gl gl y n c u de de d i n p ur ur ch ch a se se s n o
r an an sf sf er er re re d
S a la la r e s A l c )
Machineries lc r. T o W a ge g e s lc ( B ei ei n w a g e p a i t o w o r ke ke r f o a d di di titi o t o m a c h in in e r w a s w r o ng ng l d e bi bi te te d t o W a g e s A l c , n o w a d ju ju s te te d )
75
Su
50
De Dr we lc T o B i llll s R e c ei ei va va b l lc ( Be B e in in g d is is h on on ou ou re re d o f d is is co co un u n te te d b ilil l w a s w r on on g D eb e b to to r M c , n o a d u s e d
r.
75
50 d eb eb i e d
B ilil l R e ce ce iv iv aabb l
lc
p la la c o f S u nd nd r 27
( B ei ei n adjusted) (g
T o A l lo lo w a nc nc e lc c h eq eq u e r ec ec e v e d r o
27 Mr
w a s d is is h on on ou ou re re d b u w r on on gl gl y d eb eb i e d t o A I!I! ow ow a nc nc e A c co co un un t n o
C r e d itit o r f o r M a c h i n e r lc r. T o M a ch ch in in e M c ( B ei ei n d u pl pl ic ic a t i nv nv o ic ic e f o p u rc rc h a s o f m a c h in in e r w a s w r o ng ng l r ec ec o rd rd e d i n t h e b o o t w ic ic e , n o w a d ju ju s te te d ) r. T o T r av av e llll in in g E x p e ns ns e s lc ( B ei ei n a n a m o un un t w i th th d ra ra w n b y p ro ro p riri et et o w a s w r o ng ng l d e bi bi te te d t o T r a v el el lili n E x p en en s e A l c , n o w a d ju ju s te te d )
fo al
r-
us
nt
Step
Step
'T', af
he
ti
in
at
e.
st
ts
Step
'T'
Step
Step
10,000 10,000 1,000 1,000
Modern Accountanc
Step
17.31
6:
Il
io 1s at
lo ,,;, gTr
an th ad Dr. (Rs
Particulars
tm
it
Cr. (Rs
Particulars
O p e n i n s to c k
Dr.CRs} 9,400
C r ( Rs )
d S sr
h at B
18,000 11,200
Wages Salaries C a r ri ag e i nw a r d s B i l r ec e iv a b 12
Ban
a n d p a ya b l
3,000
I n su r a nc e p r e m iu m
o a ( ta ke n o n 1 s N ov em be r 1 99 7
O f f ic e e q u ip m e n t
00 C a p it a l A c c o un t ef rD
S u nd r D e bt or s a n S un dr y C re d t or s
Adju tmen
4,76,900 t on c
Items:
(f)
(g) (h) (i)
th
to
lc
in
Solution ,.
8,20,000
B y S a le s L e ss : P u rc h as e s R e tu rn s T o C a rr ia g
n w ar d
: G
39,100
s d
A d d : O u t s ta n d in g To Ra es
T o P r in t in g T o P o st ag e
t e
B y G r os s P ro f e f d c
d as f 1,500
id
t o
s (
e 1
2,93,900
B a d eb t T o D e p r ec ia t io n : O n F u r n it u r O n O f f c e e q u ip m e n t
15,000 19,970
T o P r o v of o r d i sc . o n D e b t or s 2 % o n R s 3 8 ,9 5 0 T o N e t P r o fi t ( t ra n s fe r re d t o c a p it a l
34,970 77
1,33,731 2,97,570
2,97,570
C a p i t a l ( 1 . 1 .1 9 9 7 ) A d d : N e t P r of i 1 2 B a n L oa n A d d : O u t s t a n d in g I n te r e s t S u n d r C r e d it o r Less: Debtors Set-of :Re
ef
Di
4,76,900 1,33,731 1,50,000
to Cr
Bill Payable
6,10,631
40,000 4,000 36,000
35,280 10,000
1
Assets L a n d Building O f f ic e E q u i p m e n t L e s s : D e p r e c i a ti o n Furniture L e s s : D e p r e c i a ti o n C l o s in g S t o c k S u n d r D e b t or s L e s s : C r e d i to r s s e t - o f
1,99,700 9 ,9 7 2,00,000 15,000
nf rd
9, 30 1,85,000 38,000
45,000 4,000 41,000 2,050 38,950
L e s s : P r o v i si o n f o r d o u b t fu l d e b t s :Pr
3,36,000
to
I---:----,-,--H
cr
en er e,
er
ma al ce
er
D is c
e f r D
ai ed
an ak
ec
co
n C
T o B a la nc e id T o P r of i a n d L o s A l ( B a a n c n g f ig u re )
1 ,7 0 1 ,2 2 2,920
Cr.
2,200
B y D is co un t R e c e v ed A l B y B a la nc e c / 2 % o f R s 3 6 ,0 00 )
2,920
(2)
Rs
45,000 4.000 41,000 2.050 38,950 ___]]2_ 38,171
Debtor as er rial balanc Less Set-of with creditor
Less Provisio
fo Discount
2%
1s Particulars
_ ~
~ ~ 1 -
Plant e f
Wages alaries Purchases Sales
r.
n f
l e
8,
T OT A
58,930
58,930
Sl
Modern Accountanc
17.33
made; Yo Sheet.
ar requ re
to make he ne essary
ourn
en ri
an pr pare
rading
nd Prof
an
os Ac ount
nd th
lanc
Solution Journal Date 1997
Particulars
Adjustment
Entries
lc
T o O u a nd i ac B e n g a d u s m en t o r o u s ta nd in g
Rs Dr
n d H e n g lc g h n g a n h ea t n g
ht ac or
lc
D eb t To
( Be in g b a
lc M a ch in e lc T o P u rc h as e ur ha o f n a h in e
P la n Be
L os s lc To T o P ro v o n he at
P ro f
Beng
Dr
13
Dr
70 70
Dr wr ng
eb ed
Pu ha
Ac un
ow ec
2,000
d) Dr
lc
lc o r D i o un t D eb to r ec ar p ro v o n ba an
2,000
13 50
d ou b u l d eb t
nd
un
o n D eb t
Entries
Closing Trading
lc
Dr
lc T o O pe n oc lc T o P u rc h as e lc T o W ag e To ac L ig h n g a n H e n g lc (Being various a cc ou n a ns fe r e d h e T ra d n g A cc ou n
Dr
lc T o T r ad in g Beng Sa o un t ns
lc C lo s n g S to c T o T ra d n g Beng os oc To g ro s p ro f
Be
ns
he
di
h e T ra d
5,200 Dr
ns
P ro f
Lo
13,560 3,713 1,400 60 63 10 65 20 13
lc
on ur an ered
g s lc he de of he
Lo
o un t
lc
L os s lc T o C ap i a l lc B e n g n e p ro f a ns fe r e d
13,560
ou Dr
lc
T o P ro f Loss ( Be in g d is co u n received
5,200
ou
lc
To De a to n v a o u e xp en s
Discount
47,070 r.
L os s lc lc T o S a la r e s T o R en tA / lc T o n s ur an c e T o G en e a l E xp en se s lc T o D is co un t
P ro f
47,070
h e T r d in g A c u n
lc
lc
Trading
38,710 4,800 18,800 15,000 11
lc
Sales
Be
30
13
lc
un De d eb t w r e n- o
Rs
30
lc Depreciation lc To Of ce Fu niur Fi ng B e n g a rn ou n w r e n o f a s d ep re c a t o n o n u rn i u r Ba
Cr.
r.
Dr
lc nser
he
P ro f
ed
of he Pr
os
37
Ac un Dr
C ap i a l A cc ou n
70
10,083 10,083
17.34
Fina
Accounts
Bharat
Cr.
Dr. Rs By Sa es
L es s R e u rn s
n w ar d
48,000 93
47,070 5,200
B y C lo s n g s to c
: R 20,800 T o W a ~e s To T o G ro s
ht P ro f
80
heating
ld
15,000 11 13,560 52,270
52,270 To To To To To To
S a la ri e Re I ns ur an c G e ne ra l e xp en se s D is co un t Ba Ad he
25
ha
T o P ro v o n o r d ou b u l d eb t ew Le s: Ol o P
r d
B y G ro s P ro f B y D is co un t
1,400 60 63 10 65
id
13,560 37
30
n d
% on R s 4
13 13,930
13,930
Rs C ap i a l
o pe n
baan
2,000 r v
L es s D r aw i ng s
26
B i ll s p a y ab l S u n dr y c re d it o r O u ts ta nd in g f ac to r
7,000 1,200 24
l ig h ti n
heating
r b r b d d
4,500 4,200
C lo si n s to c B i l l r e c ei v a b l Ca Ca ha
20
65 40
19,173
19,173
1st Particulars
t o 0
4,116 5,200
C
n t
i K
Modern Accountanc
Ad
17.35
me 1s
33
13%;
Solution Dr.
Particulars
T o O p e n n g S to c ( 1. 4. 97 ) T o P u rc h as e s L e s s : R e t u rn s
38
Wa To To To To
[CA. (Entrance)-Adapted]
Govind
hi
34,100 2,970 9,900 1,100 1,08,570 3,04,040 13 20 2,750 1,540 1,760 2,860 1,320 1,320
Ga Fuel F re ig h t F a c to r y l ig h ti n? c G ro s P ro f
T o S a la r ie s T o O f fi c e x pe n se s T o P o st ag e a n d T e le gr a T o I ns u ra n c T o O f f c e r en t ToDiscount T o B a D eb t T o P r ov is io n f o D o u bt fu l d e bt s L e ss : O l d p ro v is io n T o D e p r e ci a ti on : O n M a c h in e r O n F U r ni tu r d p O n L oo s o o l T o C om m is s o n M a na ge r ( No t 1 ) T o N e t P r of i ( tr an s fe r re d t o c a p t al )
BySa y C
2,31,440 72,600
g S
B y G ro s P ro f Id B y I n te r e s A d d : O u t s ta n d in g
1,100 3,300
3,04,040 1,08,570 4,400
38,500 55 44
42,790 4,080 40,800 1,12,970
1,12,970
Liabilities Capital:
2,28,800
A d d N e t P ro f
P la n t a n d M a c h in e r : N w M
L e s s : D r a w i ng s B i ll s P a y a b l S u n dr y C r e d t or s ( R s 4 4 ,0 0 0 M a n a g er ' C o m m is s io n p a y ab l
R s 1 5, 40 0
99,000 16,500
:D
38,500
77,000
p ro pe r :D
66,000 3,300
62,700
O f f c e u rn i u r Less: Depreciation
5,500 55
4,950
Loose tool Less: Depreciation
2,200 40
1,760
5 ,5 0
F re eh o
4 ,0 8 0
C l o si n g S t o c Sundry Debtor L e s s : P r o v is io n f o r d o u b tf u l d e b t s
28,600
L o a t o S h r K r is h n A d d : I n te r e s o u t st a n di n g
44,000 3,300
C as h 3,25,380
1,100)
h an d
72,600
47,300 2,640 3,25,380
17.36
in
coun
Rs 44,880. L e h e p ro fi t a f e r c ha rg in g m a na ge r Note: (1) B e o r c h g in g m an ag e c om m i s io n p ro f c om m is si o 10 110. W h e n be C om m is s o n p ay ab l 1 0% , R s 10 T h mm wi R s 00 p ro f b e o r o mm is s o n mm wi R s 10 T he re fo r w h p ro f b e o r c om m i s io n R s 44,800 t he n t h 44,880 Rs 4 ,0 8 c om m is s o n w i b e Working
1s
Creditors Purchases
24,000
Debtors
r b d d P r in ti n
8,000
a n d S ta t o n e r
Salaries
12,000
Sales
3 ,2 1 0 0
50,000
O pe n
P u rc h as e r e u rn s Wages
2,000
Rent
15,000
S a le s R e tu r
10,000
Additional
5,58,000
5,58,000
information:
lo in
(7)
TOTAL
Stock- n- rading
60,000
1995}
Solution Dr.
Hari 1s 3,21,000 10,000
: P
g S 1,45,000
G oo d
ke
pe
na
6,000
T o W a ge s T o G ro s
1,39, 000 20,000
P ro f
ld
1,62,000 3,71,000
T o S a la r ie s A d d : O u t st an d in g
30,000 3,000
L e s s P re p a i
33,000 2,000
To Re To Prntng an T o I ns u ra n c L e s s P r ep a i
S ta t o ne r 12,000 2,000
T o O f c e e xp en se s A d d : O u ts ta n d in g T o B a d eb t T o P ro v s io n o r B a ew L es s O l
12,000
d eb ts :
T o P ro v s io n o r d ep re c a t o n T o N e P ro f
a ns fe r e d
10,000 6,000 10 c ap i a l
o f R s 2 0 0 00 )
3,71,000 B y G ro s P ro f B y I nt er es t
Id
1,62,000 4,000
31,000 15,000 8,000 10,000 20,000 7,000
4,000 2,000 69,000 1,66,000
1,66,000
rn
17.37
iabilities Capital:
O p e n in g b a la n c L e ss : N e t P ro f d u r n g t h y e a
L e ss : D ra w in g s R s 2 4 ,0 0 0 Creditors Outstanding Liabilities: Salaries O f f c e E x p e n se s
1,00,000 69,000 1,69,000 30,000
6,000)
3,000 8,000
L e s s : P r o v is i o f o r D e p r e ci a ti o n ( R s 2 ,0 0 0 Stock-in-trade 1,39,000 1,20,000
11,000 2,70,000
:P Prepai expenses
16,000 60,000
nf rB dd 2,000
Insurance
4,000 2,70,000
Illustration 31
99
ft Particulars 5 40 5 1 44 80 0
urchases P u rc h a se s R e tu rn s Ca nwa ds Rent
n te re s R ec e v e
25
D is co un t R ec e v e
1495
2900
3770
4650 12.000
1165
1700 5600
Adjustments:
5000
1s
(2) (3) (4) cld
1.
(5) (6) (7) (8) (9) made fo
[CA (Foundation) =-November, /994)
he depo its.
Cr.
: R
1,44,800 39,300
e R L e ss : F u rn it ur e p u rc h a s T o C a rr ia g e I nw a rd s T o G r os s P ro f /d
1,500)
1,18,650 1,000
1,17,650 9,300 27,950 1,78,300
1,78,300
B y G ro s P ro f Id By Re No B y D is co un t R e ce iv e d
T o S a la r e s To g a
27,950 1,725 1,495
3,770 1,960 35
T o D is co un t A l o w e T o G e ne ra l E xp en se s T o A ud i e e e P g E T o P os ta g a n T e e g a m o P r D T o D ep re c a t o n o n u m e : R s 9 0 o N t P t ( o c
43
31,170
31,170 Rs
Assets Furniture A dd i o n d u n g h e y ea r
Capital:
00 1,000 1,900 11
L e ss : D e pr ec ia ti o
61,100 : D m D
a B
k L s (
S un d D eb to r L es s P ro v s io n Ca Ca
wi
T ra de r H an d
No 3) o r D ou b u l D eb t
9,500 No
B an k
19 72,800
Noes
(i)
f P
A n n ua l I nt er es t L e s : n te re s p a
D en a B an k
1----=-30=-=0:-f{
A c cr ue d I nt er es t
10,500 l B
A nn ua l n te re s o n d ep os i e ss : n te re s
e ce iv e
o n n ve s m en t
9,500
e o r d
an
d ep os i
12,000 1,500
De Tr Ba L es s S a e s R e u rn s n o e co rd e
1,000
¥"2bl~nt~e~re~st;,,;A,,;;c~c;,;ru~e,;;;d,;;o~n,;;D,;;e~o;,;s~it;;;,s A nn ua l n te re s o n n ve s m e n 1 ,6 2 62
4 ) T o a l n te re s
47
s t o be c e ce iv e
R s 1 ,6 2
10
R s 1 ,7 25 .
1,000
1st in vertical
15000 1025 1000
1120 _9ales M o to r V a Ca
1,000 39,3 00
3)
72,800 W o k in g
1,785 2,500
ha
8 50 0 12500
format
]2 (1
[CA (Entrance)-Adapted
Particulars Sales O p e n in g S t oc k Purchases Wages A d d : O u t s ta n d in g C a r ri a g i n w a rd s
10,000
27,350 1,57,000
1,85,000
1,120 },95,920
L e ss : C lo s in g s to c k C o s o f g o od s s o G r os s P ro f B a n k I nt er e s D i v d e n d o n I nv e st m en t A dd : A cc ru e a n d u
4,080 75 53 4,825
50
R en t a n R a e s L e s s : p r e p ai d S u n dr y e x p en s e n te re s o n L oa n ( no t 1 ) Depreciation: O n B u d in g 5% On Mo Va O n L oo s o o @ 2 0 D i sc o u n t a ll o w e d B a d eb t R s 1 0 R s 3 00 ) P ro v s io n f o B a d D e bt s ew L e ss : O l d N e t L o s ( tr an sf er re d t o c ap i a l Less:
1,990 25 "150 5,000 20
5,950 63 40
1,840
10,210 5,385
Particulars A. F ix e d A s se ts :
Building Les
15,000
D e p re c ia ti o
12,500 5,000
M o to r V a n L e s D e p re c ia ti o
3,000
F u rn it ur e ( No t 2 ) Investrnent Cu en As et x) L oo s T oo l ( No t 3 ) L e s D e p re c ia t o n
1,000 20
D i v id e n d A c c ru e d ue C lo s in g S t oc k S u n dr y D e b to r s L es s B a d D eb t L es s P ro v s io n f o b a d eb t C a a t b an k Ca h an d P r ep a i r a te s C u r re n t L i ab il it ie s
rg
I n e re s a cc ru e B i ll s p a y a b l
O n o an s r o
7,500
Ram
9,500 00
13 15,000
16,200 10
39,930
19 00 45 25
B . W o rk in g C ap i a l x ) - (y
10,230
NE
41,480=
S SE T
E M P O YE D
Final Accounts
17.40
N AN CE D B Y Capital
47,390 5,385
L es s N e L os s L es s D ra w n gs :
R s 2 ,0 0
42,005 3,025
1,025)
38,9 80 41,480
Working
Notes:
(1)
ma
(2)
3) Lo
en
he dj ) R S u nd r
C re d it or s
) R
(C
63 00
on Pu ha es
Ca ag
on Saes
32,000
we
47,300
C a p it a A c co u n t Drawings
52,450
Insurance
6,000
G e ne ra l E x pe ns e
30,000
Salaries
1,50,000
Patents
75,000
Machinery F re eh o
L an d
Building S to c
1,04,800
Wages R e tu rn s O u tw a rd s
5,000 6,800
R e tu rn s I nw a rd s Sales
9,87, 800 4,06,750
Purchases
2,00,000
Ca
a t B an k
1,00,000
Ca
ha
26,300 5,400
3,00,000
o n 1 .4 .9 7
57,600
The following
L es s
17,65,800
TOTAL
1s
Tradin Sales
Re ur
O p en in g S to c Purchases A dd : C a a g
an
Profit
th
n wa rd s 57,600 o n P u c ha se s
L es s R e tu rn s O u tw a rd s Wages Le F ue l a n
Wa
Cy
Sh
P ow e L es s C lo s n g S to c
Co G ro s
of Go
So
P ro f
L e ss : I ns u ra n c L es s P re p a G e ne ra l E x pe ns e Salaries A d d : O u ts ta n d in g Ca ag on Saes P ro v s io n o r B a D eb t D e pr ec ia t o n o n Machinery Patents N e t P ro fi t
Rs
20,400
Ca ag
6,000 50 1,50,000
5,150 30,000 1,65,000 32,000 7,250
20,000 15,000
17,65,800
Modern
17.41
Accountancy
Particulars Fixed Assets Machinery L e s s : D e p r e c i a t io n
2,00,000 20,000
1,80,000 60,000 20,000
Cycl Shed C u r re n t A s s e t s
6,60,000
1,37,75,0 Prepaid Insurance C u r re n t L ia b il it ie s ( y ) 78,000 1,60,300 8,20,300
B . W o rk in g C a p t a N E T A S SE T E M PL O Y E D B) F IN AN C ED B Y Capital A dd : N e t P r o
7,10,000 1,62,750 8,72,750
Less Drawi
Il
8,
30
rati 31. Particulars
Dr.(Rs) 10,500
Cr.(Rs)
20Cl 30,000
mi
2,05,000
Rent
Furniture
[CA (Entrance -s-Adapted]
Solution Dr
Mahesh
Cr.
0 B :C :Wa
t of M o
ds
rer
yC
gs
n of m a
2 ,1 9 ,0 0 0
2,19,000 T o S a la r
A d d : P r ov id e n t F u n d
5,400
2,05,000 1,000 12,000 1,000
B y G r o s s P r o fi t id
32,000
Final-Accounts
17.42
o E
o P 3,000 A d d : O u ts ta n d in g
50
60 00
T o C o m m is s io n
A dd : O u ts ta n d n g
To
n te re s
d b n f
To De
a to n
on
Machinery
2,900
Furniture
50
5,400 32,000
32,000 iabilities C a p it a A c co u n t A dd : N e P ro f L e s : D ra w n g
R s 5 ,0 0
Assets
1,000)
65,200 6,000
59 00
L ia b i e s
n te re s
10
Rent Electricity
25
10,000
Mope
re
1,000
L es s L os s o n s a
30,000 1,000
L e s s : D e p r e ci a ti o n
29,000 2,900
L e s s : D e p r e ci at io n
50
4,500
L e s s : D e p r e ci at io n
5,000 50
4,500
C lo s n g S to c Debtors L es s B a
10,500 50
d eb t
L es s P ro v s io n
or ba
d eb t
10,000 1,000
Note:
(1)
Total
p ro p c co un t o r b y e b n g C a A cc ou n F o a dj us tm en t o fR s 1,000, h e ow ng en
12,000
9,000 84,600
84,600
Working
26,100
5,000
S co o te r
Furniture
28,500
29,000
Ma hi er
Creditors 1 0 L oa n O u ts ta n d n g
30,000 1,500
L e s s : D e p r e ci a ti o n
10,200
R s 5,000. n su ra n c la i o f R s 4,000 n d c r d i n g P u c h e s A cc ou n N ow , d ju s m en t be pa ed
q u e d o r R s 1,000 only.
1,000
T o T ra d n g A cc ou n t a d L s A To Go De
(ii)
Il
1,000 1,000
Ac
1,000
tr
S to c Drawings
18 00
32,000
a s a t 3 1 3 .9 8
E s a b s hm en t
e xp en se s
15,000
Building F u rn it ur e a n d f it t n g s
1,000
M o to r v a an n te re s
7,500 Ha
pa
28,100
o n a bo v 1,00,000
Purchases S to c
a s a t 1 .4 .9 7
20,500
k b
Sales 75,000
S un d
ed or
10,000
Modern Accountancy
pr
vi
ng
2.5% Furnitur
17.43
nd fi ting [CA (Entrance)-Adapted]
MIs
Particulars 1,00,000
Capital Drawings
18,000
Building
15,000
Mo or va
25,000
oa
om Ha
er st
ai
1 2 % n te re s t
15,000
Rs 45 75,000
Purchases E s a b s hm e n
C om m is s o n
S u nd r
15,000
e xp en se s
7,500
e ce iv e
10,000
c re d it or s
TOTAL MIs Kastun
qencies
Cr.
Dr. T o O pe n n g
oc
25,000
T o F re ig h n wa rd s T o G ro s P ro f lf
32,000
2 ,0 0 30,000 1,32,000
1,32,000 o E
y G Bu
Id
s P
30,000 7,500
75 75
T o I nt er es t Add
O u ts ta n d n g
T o N e P ro f
a ns fe r e d
00 C ap i a l A cc ou n
12,775 37,500
37,500 MIs
CapitalAlc A dd : N e P ro f
F ix e
1,00,000 12,775
A ss e @ 2
94 77
: D
Fu niur
7,500
x tu r
6,750
@ 1 n te r s t u t a nd in g S u nd r c re d it or s
25,000 6,250
o n L oa n C ur re n Stock Ban 1,20,225
A ss e
b a a nc e
18,750 32,000 20,000 1,20,225
17.44
lu
Fina Accounts
ti th
le
es
te
ar
ie
es
Co., at Bombay: . R C as h h an d C a s a t b an k Sundry Debtor S to c k o n 1 .4 .1 9 9 7 Furniture fixtures O f f ic e e q u i pm e n t Buildings Motorcar S u n d r y c r e di to r s L o a n f ro m V i sw a n a t P r ov is io n f o b a d d e b t Purchases P u r c h a s R e t u rn s Sales
1,400 2,600 86,000 62,000 21,400 16,000 60,000 20,000
2,700 2,100 2,400
I nt er e s o n o a n f ro m V i sw a n a t Rates taxes D is c ou n t a l lo w e d t o D e b to r s D i s co u n t r e c ei v e d f ro m c r e di to r s
1,600
F r ei gh t o n p u rc h a se s C a r r ia g e o u t w a rd s Drawings P r in t in g a n d S t a ti o n er y
1,200 2,000 12,000 1,800
I n su r a n c p r e m iu m G e n e r a l o f fi c e x p e n se s Bad debt B a n k c h a rg e s M o t o r c a r e x p en s e Capital lc
5,500 3,000 2,000 1,600 3,600
43,000 30,000 3,000 1,40,000 2,600 2,30,000
1,62,000 2 ,2 0
TOTAL
00
1s er ma
io
3. th
la
tsta
5.
to
.6
8. [CA. (Entrance)-Adapted]
Solution Dr. Particulars T o O p e n n g s to c T o P u rc h a se s L e ss : T y p e w ri te r i nc lu d e d i n p u rc h a se s L e ss : P u rc h a s R e tu r n T o F re ig h t o n p ur ch a s T o G r os s P ro f ld T o S a la r ie s A d d : O u t s ta n d in g T o R en t o r G o do w n A d d : O u t s ta n d in g T o P ro v s io n o r D o ub t u l d eb t To To To To
L e ss : O l d R e n a n a xe s D i sc o un t a l o w e d C a r r a g e o u tw a r d P r in t n g a n d s ta t o n e r
MI
Ga as ar Viswanat
Co. Cr.
BySa
1,40,000 4,000 1,36,000 2,600
L e ss : S a l o f f ur n it ur e n c lu d e i n s a l L e ss : S a le s R e tu rn s
1,200 71,800 2,68,400 ByDi 5,500 4,300 2,100 2,400 2,000 1,800
s P
Id
2,30,000 1,400 2,28,600 4,200
2,24,400
2,68,400 71,800 1,600
lfIustration 12 Co., at Bombay articulars Ca
ha
Ca
at an
S u nd r
Dr
D e b to r
Rs
C r ( Rs )
1,400
n te re s o n o a
2,600
Rates
2,700
f ro m V is w an at h
2,100
taxes
2,400
86,000
D is co un t a l o w e
62,000
D is co un t r ec e v e
21,400
F r ei gh t o n p u rc h as e s
1,200
16,000
C a rr ia g e o u tw a r d
2,000
Buildings
60,000
Drawings
Motorcar
20,000
P r in t n g a n d S t at io n er y
S to c
o n 1 .4 .1 99 7
F u rn it ur e O f fi c
f ix tu re s
e q ui pm e n t
S u nd r
c re d it or s
L oa n r o P ro v s io n
V is w an a o r b a d eb t
Purchases P u rc ha s Sales
ro
c re d o r
1,600
12,000
43,000
l ec t ri ci t
c h a rg e s
30,000
I ns u ra n c
p re m iu m
1,800 2,200 5,500
3,000
G e ne ra l o ff ic e e xp en se s
3,000
B a d d eb t
2,000
2,600
Ban
1,40,000 R e tu rn s
t o D e bt or s
2,30,000
c ha rg e 3,600
M o to r c a e xp en se s
lc
1,62,000
1s ft
making prov sion fo
he fo ow ng
2.
3. ne
4.
onth
al ry is ou standing
5.
8.
Solution
Dr.
Cr. Particulars
To Op ni T o P u rc ha se s
,40,000
L es s T y pe w r e r
n c u de d
p ur ch a se s
L es s S a
R e u rn s
2,600
T o F re ig h o n p u c ha s ld To Gr P ro f
L es s S a le s R e tu rn s 3,
By Cl
To Re
Go wn A d d : O u t st an d in g
T o P ro v s io n o r D ou b u l d eb t ew L es s O l To To To To
Re D is co un t a l o we d Ca ag ou wa ds P r n t n g a n s ta t o ne r
sa
2,30,000 1,400 4,200
2,24,400 44,000
1,200 71,800 2,68,400
2,68,400 T o S a la r e s A d d : O u t st an d in g
n c u de d
2,28,600
4,000 1,36,000
e ss : P u c ha s
o f u rn i u r
11,000 1,000
2, 00
5,500
4,300 3,000
1,300 2,100 2,400 2,000 1,800
id B y G ro s P ro f B y D i o un t e iv e
71,800 1,600
To To To To To To To
E le c r ic i
c h ar ge s mi No D ep re c a t o n N o 2 ) G e ne ra l o f c e e xp en se s Ba B an k h a g e n te re s o n o a : O e 3
T o M o to rc a o N t P t (
2,200 1,200 10,500 3,000 2,000 1,600
2,700
3,300 3,600
o c
73,400
73,400
is 1,62,000
C a p it a A c co u n t
th F ix e d A s se t 60,000
1,80,400
L e s s : D e p r e ci at io n
1,68,400 L es s 1 / o f D ep re c a t o n L oa n
L e s s : D e p r e ci at io n O f c e e qu ip m en t R s 1 6 0 0 L e s s : D e p r ec i at io n
o n B u d in g 30,000
o m V is wa na t
R s 4 ,0 00 )
20,000
Fumiture C u rr en t A s se t 44,000
Ca
an
P re pa i
2,600
n su ra nc e
No
1)
00
2,38, 000 Wo
No
mi
L es s P ro p e to r m
Rs
2,38, 000 C a u la t
De 3,000
n su ra nc e p o c y p re m iu m
f
Mo O n F u m it ur e
d f C ha rg e
lc
an
ng
1,200
Rs
40 Rs
4,000 2,000,
00
r T A d d it io n ( ty p e w r it e r
4,000 20,000
3,000 10,500
(Rs
12 =Rs 3 ,3 0 0
O u ts ta n d n g
Rs
Rs 60
lllu tr tion 1s Deb P la n
an
B a la n ce s
C re d
M a ch in e
B a la nc e 50000
Wailes
30000 S u n dr y c re d it or s
O o e n n o s to ck : d
q 20000
R a w m a te r ia l
s p 0 Car ac
00
Factory_ e x p e n s e s
7500 1500
Royalties Fa or
Discount
en
1500
C
lc
n w ar d
C a rr ia a e o u tw a rd s
P u c ha se s o f a w m a e r a l a xe s
25000 3,25,000
ne
75000 6500 2,900
30000
7.46.'
Fina
Accounts
O f f c e r en t
4000
Insurance
2000
Ba
50
d eb t s o
Ca
8,200
an
4,74,000
4,74,000
di
nf
di
on vi
ge
ri
ff
00
1s
Guha Compan Particulars To Ra
M a te r a l
B y W o r k - in - pr o gr e s Closing L e ss : O p e ni n
c on su me d
y C
25,000 18,000
1,14,250
/d
f p
7,000
: O
To Fa en To Sa ares w o k s m a a ge r o D f p
12,000 1,21,250
1,21,250 T o C o s o f p ro du c o n f f ld T o G r os s P ro f
id y C
3,25,000 50,000
f f
2,20,750 3,75,000
3,75,000 T o C a rr ia g o u w a rd s T o D is co un t
id
Gr
2,20,750
2,900 10,000
: O
y P
T o I ns ur an c
2,000
r b d d 1,500
ld
e p T o O f fi c s a la r e s o u ts ta n d n g To Ba De T o N e P ro f
Dr.
6,000 1,500
/d
2,03,450
1s
Profit
o I t o n l n @ 6 % to G To Sa ar Pa ne Ghosh Guha T o N e t D iv is ib l
P ro f ( tr an s e rr e
t P 6,000 to Cap al Alc)
id
Cr. 2,03,450
Modern Accountancy
Assets
C a p i ta l A c c o u n t Ghosh
F r e e h o l p r e m is e s
1,50,000
Machinery
45,000
A d d : S a la r Guha
17.47
A d d I n e re s o n L o a
n f r b
1,800
Salary
k i
S u n d r y c r ed i to r s Guha Loa g L
8,200
s f r e
O f f ic e r e n t O f f ic e s a la r ie s
2,000 6,000
13,000 3,51,450
3,51,450
he rial Bala ce of Mi
.S
orpo at on
onDecembe
1, 1997wa as nder .(
R a j e e v ' C a p i ta l
80 00
S u r e sh ' s C a p i ta l
1 ,0 0 0 0
S to c a s o n 1 .1 .1 99 7
.(
B a d eb t Bi
12,000
p ay ab l
50
Discount
R a w m a t e ri a l
2,500
F i n is h e d g o o d s
6,500
L a n d a n d B u il di n
Purchases
90,000 1,000
0
25,400
S
S a le s r e tu m s Wages Salaries
8,000
1,400
Suresh
Insurance
00
Postage
49,000
Advertisement
1,000
3 , 3 ,5 0
TOTAL
3 ,5 3 0 0
Rajeev an Suresh shar profit an losses equall Prepar Trading, Profit os ccount or th ea ende 1s December 1997 an also th Balanc Shee as on that date afte taking into consideratio th followin adjustments: 1s 5% on furnitur 10%; an on plan machinery 5%.
5% of Debtors. [C.A. (Entrance) -Adapted}
T o O p e n n g s to c k 9,000 :G
T o G r os s P ro f
st
/d
1,19,000
B y S a le s
rp
lu
B y C lo s in g s to c k dg
12,000 31,400 133000
1,33,000
: O
id
y D
31,400 50
1,200 10
T o P o st ag e
r b T o D e p r ec ia t io n : On an e
O n P la n T o N e P ro f Rajeev Suresh
4,500
@
a ns fe r e d
C ap i a l
5,025 31,900
31,900
1s
-.~-
Liabilities Rajeev
L e s : D ra w n g
R s 1 ,8 0
s 2
Suresh A dd : S ha r
90,000
d B L e s s : D e p r ec ia t io n
e o
o f P ro f
: D
1,00,000 5,025
Furniture L e s s : D e p r ec ia t io n
1,05,025
C u r e n t A ss e 42,000
S u n dr y c re d it or s
70,000
P la n t a n d M a ch in er y
85,025
1,000 100,
4,000
R a w m a te ri a
16,000
25,400 40 25,000 23,750
r b d d
50 49,000 00
Ca ha Ca an P re p ai d I ns u ra n c
Illustration 15
Th partnershi
deed provid s:
Particulars F re e h ol d p re m is e s
t t
S u n dr y c re d it or s
y
-
Advertisinq O f fi c S u nd r
s a la r ie s
O f f c e e x p en s e Insurance Delver
2189
acor
e xp en se s p a
a dv an c
70
Deb or
2841 62 64
e x p en s e
M o q aq e
ho
mi
6%
nn
10000
Modern Accountancy
21 06
Stock P ro v s io n o r d ou b u l d eb t ason T ra d i A c co u n c re d i b a la n c
furnitur
10
45 00
n te re s
34628
rm on
Offi
Mor Patents
17.49
p. p. .; Patent
ow
10
pa
on
ou
p.a. pt
(f Solution & L Particulars T o O f f c e s a la ri e A d d : O u t st an d in g
2,189 69
T o O f fi c e x p en s e T o I ns u ra n c Less: Prepai T o D e li ve r e x p en s e T o A d v e r ti s in g L e ss : C a rr ie d f or w a r T o P ro v is io n o r b a d d e bt s (5 L e ss : O l r es e rv e
e y
36
4,339 87 o f R s 16,020)
T o M o r tg a g e i nt er es t A d d : O u t st a nd in g T o D ep re c a t o n o n P la n t a n d M a c h n e r ( No t 1) 300) O f f ic e f U m i tu r e (10% 4,000) Patents (10% 800) M o to r v an s R s
2,258
B y G r o s P r of i ( T ra d in g
34,628
c r e di t b a la n c e )
62
2,203 3,461
80 45
,1,718 30 40
To NetProf c!
22,733
Dr. Particulars T o S a la ry T o I n e re s o n C a p a l ( No t 2)
T o I nt er es t o n , C u rr en t ( No t e 3)
4) C om m T o D iv is ib l P r of i ( N ot e 5)
1,000 1,000
B y N e t P ro f Id B y n te re s o n D ra w in g s
22,733 33
53 2,070 14,904 23,143
CapitalNc
23,143
Liabilities 20,000 5,000
Current lc A d d n te re s o n c ap i a l
1 ,0 6 1,000
25,000
F i x e A s s et s F r e e h o l p r e m is e s
L e s s : D e p r e ci a ti o n P l an t a n d M a c h in e r A d d it io n d u ri n t h e y e a r
4,000 13,280 1,560
15,000
Moder
Stock P ro v s io n o r d ou b u l d eb t a s T r ad i A c co un t c re d i b a la nc e
o n 30.9.1997
el
ti
ffic furnitur
21 06 60 34628
10
ti
p.a. Patent
th
Mor Patents
Accountancy
n te re s
17.49
45 4000
epar
0% p.a.
(f Solution & L 2,189 69
O f fi c s a la r ie s A d d : O u t s ta n d in g T o O f f c e e x pe ns e T o I ns u ra n c Less: Prepai
2,258
34,628
B y G r o s P r of i ( T ra d in g lc c r e d i b a la n c e )
62 62
T o D e li ve r y e x p en s e oA L e ss : C a r r e d f or w a r T o P ro v is io n f o b a d d e bt s (5% L e ss : O l r es er v
e y
4,339 87
R s 16,020)
T o M o r tg a g e i nt er e s A d d : O u t st an d in g T o D ep re c a t o n o n P la n a n M a ch in er y N o t 1 ) Office furniture (10% R s 300) Patents (10% R s 4,000) 800) M o to r v an s R s
30 2,203 3,461
80 60
20
45 15
60
,1,718 30 40 10
2,248
T o N e P ro f c !
22,733 34,628
34,628
Dr.
Cr.
Particulars T o S a la r y- B T o I nt er es t o n C a p t a ( No t 2)
T o n te re s o n ,C u rr en t ( No t 3 )
T o C om m No T o D i vi si bl e P r of i ( N o t 5)
1,000 1,000 25
B y N e t P ro f Id B y n te re s o n D r aw in g
1,250
53 2,070 14,904 23,143
Capital lc
Liabilities 20,000 5,000
CurrentAlc A d d I nt er es t o n c ap i a l
,1,060 1,000
F ix e d A s se t
25,000
F r e e h o l p r e m is e s Patents L e s s : D e p r e ci a ti o n P la n t a n d M a c h in e r A d d it io n d u ri n t h e y e a
22,733 33 80
41
53 14,904 17,017 10,000 7,017 33 2,800 25 14 1,000 2,070 3,726 9,986 3,000
n te re s o n C ur re n Profit L e ss : D r aw i ng s e ss : n te re s
o n D ra w n g
A dd : n te re s o n c ap i a l n te re s o n C u rr en t Salary Commission Profit e s s D r aw i ng s es
n te re s
6,986 80 10,000 15
o n D ra w n g
M o r g ag e o n e eh o p re m s e A dd : n te re s a cc ru e
10,150 24,150 69 72,962
S u nd r C r ed it or s S a la ri e a c cr ue d
W o rk in g n o e s O l d b a la n ce : 10 Additions: 25
1 ) D ep re c a t o n o n P l n t a n M ac h n e 13,280 1,560
39 1--------,--,-11 1,718
(3) I nt er es t o n C ur re n A cc ou n
5% on B : 5 % on
Di p ro fi t
I nt er es t o n C a pi ta l on 20,000 B: 5% on 5.000
1,000 25 1,250
(4 S's Commission 53 D iV is ib l p ro fi t b e fo r c h ar gi n c om m is s o n : 14 ( 22 ,7 3 + 4 10 ) 1 ,0 0 1 ,2 5 1 93 ) 23 14 R s 20,700 1--------;-1-=-=9.3:-i1 20,700; T h e r ef o re , c o m m is s io n 10
1,060 2,800
Ap me 14,904; B '
72,962
Ra 1I5th of Rs 18,630
T he re fo re , A '
2 0 0 00 :
00
of et
o f b e fo r
p ro fi t
4/
2,443 2,070
ofRs 18,630
3,726
Advanced Adjustment 1. Commission to Manage
mm
io
C a s e 1: W he n c o m is s o n Commission
ai
at
Ne Pr fi
ed
e rc e n a g
ef re
c ha r
ommissio
Rate of commission
of
gi
s uc h c o mm is s o n
Illustrative Exampl on
Solution Commission
Case
N e P ro f
en
om
Commission
b ef or e C o mm is si o
on
R at e o f C om m is si o
at
ed
e rc e a g commissron
1,10,0000
of et - - -- - -- - -- - -, -
of
10
11,000.
a f e r c ha r
suc
c o mm is s o n
Illustrative
xa pl
Solution c h commissron
100
TIU
Rs 10,000
Alternatively,
Illustrative Exampl (i) (ii) Rs 82,960
Solution In th
ca e, commission pa able to
eneral er
anager an
or
anager ar
be ca cu ated
it th
el of simultaneo
eq atio s.
Therefore,
(Rs
.(1
10 .091
7541.818 or .04762
(4) 1we
Stationery Included in
pening Stoc
an
lo in
stock
Illustrative Exampl
Solution
!l A m
St
Ch
Particulars O p e n n g B a la n c e o f S t a t o n e r A d d : C a s P u rc ha se s o f S ta t o ne r A d d C r e d P u rc ha se s o f S t a o n e r
Pr
n c u de d n c u de d
L es s C lo s n g B a la n c e o f S t a o ne r ~.
L es s S ta t o ne r
C o n s um e d b y h e P r o p e to r
T ra d E x p . P u rc ha s
Ac
(Ii) O p e n in g s to c be e du ce d b y R s 2,000. Th R s 48,000 b e d eb i e d T ra d n g A c co u n t C lo s n g o c b e e du ce d b y R s (iii) 1,500. 2,000 Th baan R s 43,500 b e c re d e d T ra d n g A c co u n t .18,000 4,500 v ) P u c ha se s b e e du ce d b y R s T ra d e xp en se s be e du ce d b y R s 18,000 24,500 1,500 v i D r a w in g w i b e n c e as e b y R s 500. 23,000 500 22,500
.1
Exchange of an Any
et
loss
Illustrative
xa pl
Book.
Solution 0%
75 75
v L
s o
v B k V e o Particulars C r 'l ni n b al an c -=S=-o-o'-k va-:-Iu-e-o-=-f ,.-fu-rn-:-itu-re-on'- '1"'-.=:'01.=19:.:::9=8--------+--1'""6"-=,O-o-OO::--.·e ss: Soak valu of Furniture sold L es s D ep re ci a i o f o r no n h s n v e on 3 : P w f
56,000
: E
4. Good Sent on
le
on ignmen
th
lu
in Illustrative
la
la in
ri it
(N
is is
re re
xa pl Tr
Ba
3 1 3 .1 99 8
H e ad s o f A c c ou n S to c o n 1 .4 .1 9 9 7 Purchases S u p en s A cc ou n o f P Capital Other balances
2,00,000 14,00,000
40,000 6,00,000 7,60,000 14,00,000
4/5th
Solution to
Ac
wi
me
Date 1998 M a rc h 3 1
articulars (i F o G oo d S en t o n C on s g nm en t lc C o ns ig nr ne n t o T o G o od s S en t o n C on s g nr ne n
r.
lc
1,00,000 1,00,000
Modern Accountancy
)F Go f ! J c ( No t 1 ) T o C on s g nm en t
lc
( i ) F o C om m s s o n a t 1 0 lc C o ns ig n me n t o lc To
1,00,0001
Dr
10,000
1,00,000
on Sa es 10,000
( iv ) F o r S to c o n C on s g nm en t S to c o n C o ns ig n me n t lc lc T o C on si gn me n t o ( v F o A dj us ti n P ur ch as e G o od s S en t o n C on si gn me n To Purchases lc )Fo Cl pe S us pe ns e A cc ou n o f P lc To
Dr
17.53
20,000
Dr
20,000 lc
1,00,000
Dr
1,00,000 Ac
nt of 40,000
Dr
Dr.
40,000
Accoun
Cr.
Rs T o C on s g nm en t
lc (Sales)
B y C o n si gn me n B y B al an c c /
Rs 40,000 10,000 50,000
t of P lc (Commission)
1,00,000
1,00,000
Cr. Rs T o G oo d S en t o n C on s g nm en t lc (commission) To le T o P ro fi t o n C o ns ig n me n
lc
Rs lc ( No t 1 ) By B y S to c o n C o ns ig n me n t
1,00,000 10,000 10,000
1,00,000 20,000
lc
1,20,000
1,20,000
..Dr.
Cr. Particulars To Purchases
lc
B y C o ns ig nm en t
Particulars
Rs
lc
1,00,000
Ne Effect me
(J) 2)
Rs 10 00
wi
Lo Ac 7, 00
00
Workin
Notes: 4/
Rs 80 00
Rs
00 00 0, Go R s 1 ,0 0 ,0 00 . 00 00 Rs20,000.
011
c os t T he re fo re , s al e
An profit eame from Join Ventur wiII be credited to Profit an Loss Account.
Illustrative
xa pl Tr
Ba
3 1 3 .1 99 8
H e ad s o f A c c ou n t S to c o n 1 .4 .1 9 9 7 Purchases S us pe ns e A cc ou n o f C a pi ta l a n d o th e B a la nc e s
12,20,000 12 20 00
Additional
12 20 00
information
(i). eq
to
tm
tu
ed
ts
Solution Q. Th
wi
me
Date
Rs
Particulars
Rs
)F To Su
Ac un of
20,000
H )F o P ro f o n J o n t V e n u r Al No 1) T o P ro f a n L os s A l
12,000
Dr.
Account
Cr.
Date
Rs T o S us pe ns e A cc ou n o f
Ne Ef ec (I)
Wo
B y B a la nc e c /
20,000
2 ,0 0
32,000
Ac
No R s 1 8 0 00 ; 2 /3 r
X.
Rs 12 00
X.
Illustrative Exampl Tr
B a! a
as
3 1 3 .1 99 8
H ea d o f A c co un t S to c o n 1 .4 .1 9 9 7 P ur ch as e a n S a e s J oi n V e nt ur e S us pe ns e A cc ou n S un dr y D eb to r a n S un dr y C re di to r Other Assets Capital Other Liabilities
3,00,000 60,000 1,40,000 1,00,000 00
io Solution Go wa
ed
Su
ne Cr
al
wi hj Ac
n tu r nt wa
Date 1998 M a rc h 3 1
le wa wr or
ve
a se s D a B o k . ow
he me
as nt
ar
Ac as ed
Particulars ( i F o C an ce ll in g P ur ch as e J o in t V e n tu r w it h Al Al
30,000
( ii ) F o A d ju st in g C r ed it or s S u nd r C r ed it or s A l c lc To
30,000
HiFo Re E xp e J oi n V e n u r w it h Al To
/,
( iv ) Fo r C an ce l n g J o n t V e n u r J o n t V e nt ur e w it h Al )Fo Jo nt Ve Sa es S al e A l To Jo nt Ven ur wi
/c
S us pe ns e A cc ou n
40,000
40,000
