Excel Academy of Commerce

Hassan Jameel
0333-8891667

Debit Balance Rs. Credit Balance Rs.

Building 175,000 Issued Capital(Rs. 10 each ) 600,000
Purchases 500,903 General reserve 250,000
Manufacturer expenses 202,800 Unclaimed dividend 6,526
Establishment expenses 36,814 Trade creditors 36,858
General charges 31,078 Sales 983,947
Machine 200,000 Deprecation reserve 71,000
Motor vehicle 95,000 Interest on investment 8,544
Opening stock 172,058 Profit & loss (cr.) 16,848
Book debts 148,380 Staff provident fund 37,500
Furniture 15,000
Investment 288,950
Cash 72,240
Director fee 18,000
Interim dividend 45,000
Repairs & Renewals 10,000
20,11,223 20,11,22
3

1. The stock on 31st December was valued at Rs. 148,680(market value Rs.149,000)
2. Provide Rs. 20,000 for deprecation on fix assets, Rs. 6500 for manager commission and
Rs.1500 for company provident fund.
3. Interest accrued on investment amount to Rs. 2,750
4. Provision for taxation Rs. 30,000
5. Director proposed dividend Rs. 45000
6. Claim of Rs.5000 for workman compensation is disputed
7. Credit sales of Rs. 1600 were left unrecorded.

Xyz Co. ltd presents the following balance sheet as on 31 st December 2010.
Liabilities Rs. Assets Rs.
Authorized Capital 20,00,00 Fix Assets
0
Issued Capital(9000 shares of Rs.100 each) 900,000 Plant & machinery 880,000
Reserves Furniture 100,000
Reserve fund 350,000 Current Assets
Share premium 50,000 Stock 400,000
Profit & loss a/c 120,000 Debtor 110,000
Current liabilities Bill receivable 20,000
Sundry creditors 95,000 Bank 85,000
Provision for taxation 80,000
15,95,00 15,95,000
0
The company purchase fresh machine for Rs. 125,000 for which it pays Rs.25,000 by cheque and
allots shares of Rs.100 each at a premium of Rs.25 per share for balance to vendors. The company
then issues one bonus shares for every four shares held at present. For purpose of bonus the balance
profit & loss account and reserve fund are used to necessary extent.

New Builders Ltd. Began to trade on 1st January 2010, company was engaged on only one contract
for which price was Rs. 600,000
Prepare Contract Account and balance sheet from the following Trial Balance on 31 st December, 2010
Details Rs. Details Rs.
Land & building 195,000 Share Capital 290,000
Bank Balance 32,000 Creditors 37,000
Charged to contract: Wages outstanding 13,000
Material 115,000 Cash received (75% of work certified) 225,000
Plant 50,000
Wages 158,000
Expenses 15,000
565,000 565,000
On December 31, 2010 material costing Rs. 7,000 were on site, the cost of work done but un-certified
was Rs. 25,000. Of the material charged to contract, material costing Rs. 8000 were lost in an
accident. Deprecation on plant @ 10%

Details Rs. Details Rs.

Share Capital 500,000 Financial charges 10,000
Long term liabilities 250,000 Liquid Assets 300,000
Current liabilities 250,000 Sales 900,000
Fix assets 600,000 Purchases 600,000

1. Debt equity Ratio

2. Fix Asset Ratio
3. Proprietary Ratio
4. Current Ratio
5. Liquid Ratio