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Q1. From the following particulars prepare a bank reconciliation statement of Mr.

X
showing the balance as per bank pass book as on 31st March 2001

• Credit balance as per cash book on 31st March 2001


• Interest charged by the bank upto 31st March, Rs.50 is recorded in the pass book
only
• Two cheques of Rs.900 and Rs.1500were issued but out of them one cheque of
Rs.900 was presented for payment upto 31st March
• Bank charges made by the bank Rs.12.50 were recorded in the pass book
• Dividend on shares Rs.650 were collected by the bankers directly for which Mr.
X did not have any information
• Cheques paid into bank of Rs.2500 but cheque of Rs.1900 were cleared and
credited by the bankers

Q2. On 31s Dec 1994 the bank pass book of Naresh &co. showed an overdraft of
Rs.10700. From the following particulars prepare Bank reconciliation statement

• Cheques issued before 31-12-1994 but presented for payment after that date
amounted to Rs.900
• Cheques paid into the bank but not collected and credited until 31-12-94
amounted to Rs.2200
• Interest on overdraft amounting to Rs.1200 did not appear in the cash book
• Rs.5000 being interest on investment collected by the bank and credited in the
pass book were not shown in the cash book
• Bank charges of Rs.50 were not entered in the cash book
• Rs.800 in respect of a dishonoured cheque were entered in the pass book but not
in the cash book

Q3. From the following particulars ascertain the balance that would appear in the bank
pass book of Mohan as on 31st Dec 1993:

• The bank overdraft as per cash book on 31st December 1993, Rs.6340
• Interest overdraft for six months ending 31st December, 1993. Rs.160 is entered in
the pass book
• Bank charges of Rs.30 for the above period are debited in the pass book
• Cheques issued but not cashed after prior to 31st December, amounted to Rs.1168
• Cheques paid into bank but not cleared before 31st December 1993 were for
Rs.2170
• Interest on investment collected by the bank and credited in the pass book,
Rs.1200
Q4. On 30th June, 1994, the bank column of Mohan Kapoor’s Cash Book showed a
debit balance of Rs. 12,000. On checking the Cash Book with bank statement you
find that:

a) Cheques paid into bank Rs. 8,000, but out of these only cheques of Rs.
6,500 were cleared and credited by the Bankers upto 30th June.

b) Cheques of Rs. 9,200 were issued but out of these only cheques of Rs.
7,000 were presented for payment upto 30th June.

c) The receipt column of the Cash Book has been undercast by Rs. 200.

d) The Pass Book shows a credit of Rs. 330 as interest on investments


collected by bankers and debit of Rs. 60 for bank charges.

e) On 29th June a Customer deposited Rs. 3,000 direct in the bank account
but it was entered only in the pass book.

Prepare a Bank Reconciliation Statement.

Q5.Prepare a Bank Reconciliation Statement on 31st December, 992 from the


following particulars:
a) A’s Overdraft as per Pass Book Rs. 20,000 as at 31st Dec.

b) On 30th December, cheques had been issued for Rs. 80,000, of which
cheques worth Rs. 15,000 only had been encashed upto 31st December.

c) Cheques amounting to Rs. 6,500 had been paid into the bank for collection
but of these only Rs. 2,500 had been credited in the Pass Book.

d) The bank has charged Rs. 700 as interest on overdraft and the intimation
of which has been received on 2nd January 1993.

e) The Bank Pass Book shows credit for Rs. 2,000 representing Rs. 1,400
paid by debtor of A direct into the Bank and Rs. 600 collected direct by
Bank in respect of interest on A’s investment. A had no knowledge of
these items.

f) A Cheque for Rs. 3,600 has been debited in bank column of Cash Book by
A, but it was not sent to Bank at all.
Q6. The following is the trial balance of Sri Om as on 31st March, 1999. You
are requested to prepare the trading and Profit and Loss A/c for the year
ended 31st March1999 and Balance sheet as on that date after making the
necessary adjustments:

Particulars Debit ( Rs.) Credit


(Rs.)

Sundry debtors 500000

Sundry creditors 200000

Outstanding 55000
expenses

Wages
100000
Carriage outwards
110000
Carriage Inwards
50000
General Expenses
70000
Cash Discounts
20000
Bad debts
10000
Motor car
240000
Printing and
stationery 15000

Furniture and 110000


fittings

Advertisement 85000
Insurance 45000
Salesmen’s 87500
commission

Postage and
telephone 57500

Salaries 160000

Rates and taxes 25000

Drawings 20000

Capital Account 14,43,000

Purchases 1550000

Sales 19,87,500

Stock on 1.4.99 2,50000

Cash at Bank 60000

Cash in hand 10500

_________ _________

36,30,500 36,30,500

The following adjustments are to be made:

1. Stock on 31st March 1999 was valued at Rs.7,25,000

2. A provision for bad and doubtful debts is to be created to the extent of


5% on sundry debtors

3. Depreciate:

Furniture and fittings by 10%

Motor car by 20%

4. Shri Om had withdrawn goods worth Rs.25000 during the year

5. Sales include goods worth Rs.75000 sent out to Shanti& co. on approval and
remaining unsold. The cost of the goods was Rs.50000

6. The salesmen are entitled to a commission of 5% on total sales

7. Debtors include Rs.25000 bad debts

8. Purchases include purchase of furniture worth Rs.50000


ANS:
http://www.scribd.com/doc/4895412/Management20Accounting-
EBook

PAGE NO.:63

Q7. From the following Trial Balance of M/s. Ram & Sons, prepare
trading and profit and loss account for the year ending on 31st March
2002 and the balance sheet as on the date:
Trial Balance as on 31st March 2002
Particulars Debit Credit
Rs. Rs.
Opening Stock (1.4.2001) 5,000
Purchases 16,750
Discount allowed 1,300
Wages 6,500
Sales 30,000
Salaries 2,000
Travelling expenses 400
Commission 425
Carriage inward 275
Administration expenses 105
Trade expenses 600
Interest 250
Building 5,000
Furniture 200
Debtors 4,250
Creditors 2,100
Capital 13,000
Cash 2,045
_______________________
45,100 45,100

1. Stock on 31st March 2002 was Rs.6,000.


2. Depreciate building by 20%
3. Create a provision for bad debts @10% on debtors
4. Outstanding wages amount to Rs.575

ANS: http://www.textbooksonline.tn.nic.in/Books/11/Acct-EM/+1%20Accountancy
%20English%20Chapter%2012.pdf
PAGE 291 PARTIALLY SAME AS NO ADJUSTMENTS.
ACTUAL NP=395

Q8. Given below is the trial balance of Shri.Hari Prakash. Prepare trading and profit and
loss account and balance sheet for the year ended 31st March 2002.
Particulars Dr. Cr.
Rs. Rs.
Stock as on 1.4.2001 50,000
Sales 2,90,000
Sales returns 10,000
Purchases 2,45,000
Purchase returns 5,000
Carriage inwards 4,000
Carriage outwards 6,000
Wages 12,000
Salaries 18,000
Printing and stationary 900
Discount allowed 900
Discount received 600
Depreciation 3,000
Buildings 2,08,100
Trade Expenses 5,600
Capital 2,72,900
Bills receivables 20,000
Bills Payable 15,000
__________________________
_

5,83,500
5,83,500

1.Closing stock on 31.3.2002 Rs.65,000.


2. Sri Hari Prakash is entitled to interest on their capital balances at the rate of 5%
3. An additional capital was introduced by him on 1st January 2002

[Answer : Gross profit Rs.39,000, Net profit Rs.5,200]


http://www.textbooksonline.tn.nic.in/Books/11/Acct-EM/+1%20Accountancy
%20English%20Chapter%2012.pdf
page 298

Q9. The following information was extracted from the books of


M/s.Sudha Ltd. Prepare final accounts on 31.3.2002.

Particulars Debit Particulars Credit


Rs. Rs.
Opening stock 12,500 Sales 1,89,000
Depreciation 7,000 Commission 2,000
Carriage inwards 700 Capital 1,71,300
Furniture 8,000 Creditors 17,500
Carriage outwards 500 Bills payable 5,000
Plant & machinery 2,00,000 Return outwards 13,800
Cash 8,900
Salaries 7,500
Debtors 19,000
Discount 1,500
Bills receivable 17,000
Wages 16,000
Sales returns 14,000
Purchase 86,000
_________________________________________
3,98,600
3,98,600

1. Closing stock on 31.12.2002 Rs.45,000


2. Bad debts estimated Rs.2910
3. Provision for discount on debtors 3% on creditors 2%
4. Commission receivable Rs.200

Q10. The following balances were extracted from the books of


Mr.Chandran on 31.3.2001.

Particulars Debit Credit


Rs. Rs.
Capital 1,41,000
Buildings 80,000
Machinery 70,000
Furniture 15,000
Stock 50,000
Power 10,000
Wages 70,000
Carriage 8,000
Rent and rates 17,000
Salaries 35,000
Bank Charges 1,000
Income tax 2,000
Bad debts 5,000
Commission received 9,000
Purchases 1,50,000
Sales 3,40,000
Bills receivable 20,000
Bank overdraft 50,000
Cash in hand 2,000
Purchase returns 10,000
Sales returns 15,000
______________________
5,50,000 5,50,000

1. The closing stock was valued at Rs.60,000.


2. Salaries outstanding Rs.2000
3. Prepaid rent R. 4000
4. Provision for bad debts is to be maintyained at 5%

You are required to prepare final accounts for the year ended 31st March 2001.

Q11. From the following balances, prepare Trading, Profit & Loss Account and a
Balance Sheet as on 31st December, 1985.
Capital 82000 Sundry Creditors 9000
Life Insurance Premium 2800 Sales 124000
Plant and Machinery 5000 Return Outwards 1000
Stock in the beginning 15000 Special Rebates (Dr.) 800
Purchases 87200 Special Rebates (Cr.) 1200
Return Inwards 6000 Rent for premises Sublet 1000
Sundry Debtors 21000 Lighting 400
Furniture 9100 Motor Car Expenses 6300
Motor Car 40000 Bank Balance 15200
Freight and Duty 2000 Loan from Suresh at 12% p.a. 10000

Carriage in 800 Interest on loan from Suresh (Dr.) 900


Carriage Out 300
Trade Expenses 15400

 Adjustments:

(1) Stock on 31st December, 1985 was valued at Rs. 25, 000 (Market Value Rs.
32, 000)
(2) Stock of Rs. 6,000 was burnt by fire on 25th December. It was fully insured
and the insurance Company admitted the claim in full.
(3) Goods worth Rs. 1,800 were distributed as free sample. Goods worth Rs.
1,500 were used for personal purposes by the proprietor and goods worth Rs. 500 were
given away as charity
(4) Depreciation Motor Car by 15%
(5) The Motor Car is used partly for business and partly for domestic purpose,
therefore, one third of the car expenses including Car depreciation is to be charged to the
Proprietor’s A/c
(6) Rent for 2 months is receivable on premises Sublet.
(7) Balance at Bank on 31st December 1985 as ascertained from the Pass Book is
Rs. 15,080, the difference representing Bank Charges.
(8) Included in Trade Expenses is Insurance Premium of Rs. 2,400 paid for the
year ending 31st March 1986.

Q12. The Trial Balance of Mr. X is as on 31st December, 1985 is given below.
Prepare Trading and Profit & Loss Account and Balance Sheet after making the
following adjustments:-
(a) Value of Closing Stock Rs. 29, 638
(b) Depreciation Plant and Machinery 10%, Furniture 5%, horses and carts Rs.
1,000
(c) Create Provision for bad-debts at 5%
(d) Prepaid expenses: Insurance Rs. 300 and taxes Rs. 190.
(e) Commission to Factory Manager at 10% on net profit.
Plant and Machinery 19720 Capital 80000
Manufacturing Wages 34965 Creditors 50160
Salaries 15965 Bank Loan 10000
Furniture 9480 Purchases Return 1140
Freight on Purchases 1980 Sales 246850
Freight on Sales 2150 Provision for Bad-Debts 6000
Building 25000
Manufacturing
Expenses 9455
Insurance and Taxes 4175
Goodwill 30000
General Expenses 8142
Fuel and Power 1276
Debtors 78140
Electricity (Factory) 986
Lighting Expenses 2473
Opening Stock 34170
Horses and Carts 5165
Purchases 97165
Sales Returns 3170
Discount 928
Bad-Debts 1485
interest & Bank
Charges 475
Bank Balance 7540
Cash 145
Total 394150 Total 394150

Q13: From the following Trial Balance of Mr. A, prepare Trading and Profit & Loss A/c
for the year ending 31st Dec. 1983 and a Balance Sheet as on that date:-
Trial Balance
Cash 10,000 Sales 180,500
Stock 40,800 Returns 195
Wages 22,525 Loan at 12% (On 1-4-1983) 20,000
Purchases 130,295 Creditors 30,305
Return Inwards 2,400 Discount 530
Repairs 1,675 Capital 37,500
Bad-Debts 2,310
interest on loan 600
Salaries 8,000
Sales Tax 800
Octroi 500
Insurance 1,000
Charity 125
Rent 2,000
Machinery 16,000
Debtors (Including Shyam for
dishonoured bill of Rs. 800) 30,000
269,030 269,030

Adjustments: (i) Wages include Rs. 2,000 for erection of new machinery on 1-1-1983.
(ii) Stock on 31st Dec. 1983 was Rs. 40,925.
(iii) Provide 5% Depreciation on Machinery.
(iv) Salaries unpaid Rs. 800.
(v) Half the amount of Shyam’s bill is irrecoverable.
(vi) Create a provision 5% on other debtors.
(vii) Rent is paid upto 30th April 1984.
(viii) Insurance unexpired Rs. 300.

Q 14: Prepare a Trading and Profit & loss account for the year ended 31st March, 2000
also the Balance Sheet as on that date making the following adjustments:
(a) Depreciate Furniture by 10% on original cost.

(b) Make a provision for bad debts equal to 5% on debtors

(c) Salaries for the month of March 2000 amounting to Rs. 900 were unpaid. The
balance in this account includes Rs. 600 paid in advance.
(d) Insurance is prepaid to the extent of Rs. 1,200.

(e) Provide Rs. 2,400 for office expense.

(f) Stock valued at Rs. 1,800 was put up by owner for his personal use, the cost of
which has not been adjusted.

(g) Closing stock was valued at Rs. 18,000.

Trial Balance as on 31-03-2000


Name of Accounts Dr. Balances Cr. Balances
Rs. Rs.
Purchases and Sales 45,000 96300
Debtors and Creditors 60000 36000
Sales and Purchase Return 3000 1500
Interest earned 1200
Salaries 9000
Wages 6000
Rent 4500
Bad-Debts 2000
Capital 30000
Drawings 7200
Provision for bad debts 1800
Printing and Stationery 2400
Insurance 3600
Opening stock 15000
Office expenses 3600
Furniture 6000
Provision for depreciation 1200
Prepaid insurance on 1-4-99 700
168,000 168,000

Q15: From the following balances and information, prepare trading and profit and loss
account for the year ended 31st December, 1999 and balance sheet as on that date:
Capital 10,000
Plant and Machinery 3,600
Depreciation on P&M 400
Repairs to plant 320
Wages 5,600
Salaries 800
Income Tax 100
Cash in hand and at bank 400
Land and Building 14,900
Depreciation on building 500
Purchases 25,000
Purchases returns 300
Sales 49,800
Bank Overdraft 760
Accrued income 300
Salaries outstanding 400
Bills Receivable 2,000
Provision for bad debts 1,200
Bills Payable 600
Bad Debts 200
Discount on Purchases 800
Debtors 7,000
Creditors 4,660
Opening Stock 7,400
68,520 68,520
Information:
a) Stock on 31st December, 1999 was Rs. 6,000.

b) Write off Rs. 600 for bad debts and maintain a provision of 5% on debtors

c) Goods costing Rs. 1,000 were sent to a customer for Rs. 1,200 on 30th December,
1999 on ‘sale or return basis’. This was recorded as actual sales.

d) Rs .240 paid as rent of the office were debited to landlord account and were
included in debtors.

e) General Manager is to be given commission at 10% of net profit after charging


the commission of works manager and his own.

f) Works manager is to be given commission at 5% of net profit after charging the


commission of general manager and his own.