Pass the necessary journal entries, open ledger account and then prepare the Balance Sheet &

P/L a/c

Question 3: Dr cash a/c

Following information is available for RK films,

for the year ending as on 31.3.2015

Issued 5000 shares for 50000

Share capital a/c
Buys a camera of , cash paid 55000 Dr

Service provided to customer , get cash 85000

Accounts receivable
receives cash to film a future reception 100000 Dr

Pays for advertisement expenses 20000

Amount receivable for services provided 10000 Dr Camera

Pays for salary to employees 5000

Dr batteries

Dr Service revenue a/c

Advertisement Exp. a/c
Dr Cr

Dr

Profit & Loss A/c Balance Sheet

For the year ending 31.3.2015 As on 31.03.2015
Dr Cr
Liabilities Amount
 Trial Balance

Particulars Dr Amt Cr Amt

t & P/L a/c

Cr

Share capital a/c

Cr

Accounts receivable
Cr

Cr

Cr

Service revenue a/c Cr

Cr

Balance Sheet
As on 31.03.2015

Assets Amount
 Journal entries

Date Particular Dr Cr
1 Bank Dr 50000
To Share capital 50000
( shares issued for cash)

2 Camera a/c 55000

To bank a/c 55000
( payment made for camera purchased )

3 Bank a/c 85000

Service revenue a/c 85000
(Amount received for services rendered )

4 Bank a/c 100000

To unearned revenue a/c 100000
(Being amount received in advance
for services to be performed in future )

5 advertisement A/c 20000

To bank a/c 20000
( payment made to advertising agency )

6 Accounts receivable a/c 10000

To service revenue a/c 10000

7 Salary a/c 5000

To bank a/c 5000
 Profit & Loss A/c
For the year ending 31.3.2015
Dr Cr
Salary a/c 5000 Service revenue 95000
Advertisement a/c 20000
Net profit c/d 70000
95000 95000

Trial Balance
Particulars Dr Amt Cr Amt

bank a/c 155000

Share capital a/c 50000
Accounts receivable 10000
Camera 55000
unearned revenue a/c 100000
Net profit c/d 70000

220000 220000
Dr bank a/c Cr
To Share capital 50000 By camera 55000
Service revenue a/c 85000 advertisement A/c 20000
To unearned revenue 100000 Salary a/c 5000
By balc/d 155000
235000 235000

Share capital a/c

Dr Cr
To bal c/d 50000 By bank 50000
50000 50000

Accounts receivable
Dr Cr
To service reve 10000 By bal c/d 10000
10000 10000

Dr Camera Cr
To bank a/c 55000 By bal c/d 55000
55000 55000

Dr Service revenue a/c Cr

bank a/c 85000
To p& l a/c 95000 Accounts receivable 10000
95000 95000

Dr unearned revenue a/c Cr

To bal c/d 100000 bank a/c 100000
100000 100000

Dr Advertisement a/c Cr
 bank a/c 20000 To p& l a/c 20000
20000 20000

Dr Salary a/c Cr
To bank a/c 5000 To p& l a/c 5000
5000 5000

Balance Sheet
As on 31.03.2015

Liabilities Amount Assets Amount

Share capital a/c Camera 55000
50000 Accounts receivable 10000
Add: Net profit70000 120000 bank a/c 155000

unearned revenue a/c 100000

220000 220000
Question 3:

Following information is available for RK films,

for the year ending as on 31.3.2015

Issued 5000 shares for 50000

Buys a camera of , cash paid 55000

Service provided to customer , get cash 85000

receives cash to film a future reception 100000

Pays for advertisement expenses 20000

Amount receivable for services provided 10000

Pays for salary to employees 5000

Question 2
Prepare final accounts from the following balances -

DR Cr
buliding 1087000
plant & machinery 250000 Dr
Stock 1.4.2015 100000
loose tools 100000 To
carriage inward 5000 To
wages 10000
purchases 450000
purchases return 45000 To
sales 845000 To
sales return 10000 To
cash 50000
bank 250000
debtors 62000 To
creditors 459000
printing and stationery 10000 To
bad debts 50000 To
advertisement 36000
furniture 105000 To
general expenses 5000 To
capital account 495000 To
bills payable 156000 To
Reserves & surplus 580000
0
Total 2580000 2580000

Adjustments :
Closing stock as on 31st Dec 2016 was Rs 368500
Depreciate
plant & machinery @ 15%
buliding @ 10%
Outstanding printing and stationery expenses rs 5000
Prepaid advertisement exp RS 15000
 Trading & Profit & Loss a/c
for the year ending as on 31/3/2016
Cr
Particulars Amount Particulars Amount
opening Stock 100000 By sales 845000 835000
purchase450000 Les: Return 10000
Less : return 45000 405000 By Closing stock 368500

carriage inward 5000

wages 10000
gross profit 683500
1203500 1203500

printing and stationery

Add: O/s Exp 15000 By Gross profit b/d 683500
bad debts 50000
advertisement
Less : prepaid exp 1 21000
general expenses 5000
Depreciation on
building 108700
plant & machinery 37500

To net profit c/d 446300

683500 683500
0
 Balance Sheet
As on 31/03/2016
Liabilities Amount Assets Amount

capital account 495000 941300 buliding 1087000 978300

Add: net profit 446300 Less : Depreciation 108700
plant & machinery 250000 212500
156000 Less : Depreciation 37500 100000
bills payable 580000 loose tools 105000
Reserves & surplus furniture 50000
cash 250000
bank 62000
o/s printing & stationery 5000 debtors
prepaid Exp 15000
creditors 459000 closing stock 368500

2141300 2141300
Income statement for the year ended December 31,2015

Service revenue 40000

Depreciation Expense -20000
Salaries Expense -13000
Income before taxes 7000
Income tax expense -2000
5000

Balance Sheet
Dec 31, 2009

Cash & Cash Equivalent 1000 2000

Accounts receivable 7000 8000
Equipment 100000 73000
Depreciation -55000 -35000
Total Assets 53000 48000

Salaries Payable 5000 1000

Share capital 22000 22000
Retained earnings 26000 25000
53000 48000
1 Cash received from customers
service revenue 40000
Decrease in accounts receivables 1000
41000

2 Cash paid to employee

salaries Expense 13000
Increase in salary payable -4000
9000
3 Cash paid for income taxes
Income tax exp. 2000

4 cash paid for equipment

Being equipment purchased 27000

beginning retained earnings 25000

Add: Net income 5000
Less: Dividend ?
5 Ending retained earnings 26000
Cash paid for dividend 4000

Statement of cash flow

for the year ended Dec 31,2009

Cash flows from operating activities

cash receipts from customers 41000

Less: Cash payment
to employee -9000
for taxes -2000 -11000
Net cash provided from operating activites 30000
Cash flow from investing activities
Cash paid for equipment -27000

Net cash used in investing activities -27000

Cash flow from financing activites

Cash paid for dividend -4000
Net cash used in financing activities -4000
Net decrease in cash and cash equivalent -1000
Cash beginning of the year 2000
Cash end of the year 1000
Calculate cash flow from operating activities under Indirect method

Particulars Rs
Sales 1500000
Less: operating expenses 500000
-700000
depreciation 200000

Add: interest received from FDR’s 100000

Net profit before taxes 900000

Less: provision for tax @30 % -270000
Net profit after taxes 630000

Additional information:

•Included in operating cost loss on sale of machinery Rs 50000

•Actual taxes paid for the year Rs500000
Following are the balances of current items
Current year Previous year

Debtors 800000 600000

Inventories 650000 700000
Creditors 900000 850000

Calculation of cash flow from operating activites

Net profit as relected in the statement 900000

Add: non cash & non operating items

Depreciation 200000
Loss on sale of machinery 50000 250000
Add:
Decrease in inventory 50000
Increase in creditor 50000
`

Less:
Interest received from FDR's 100000
Increase in debtors 200000
cash flow from operating activites 950000
Add: Extraordinary items nil
Net cash flow before tax 950000
Less: Tax paid 500000
Net cash flow from operational activities 450000