Q.

05

Comparative Balance Sheet

PARTICULARS NOTE 31ST 31T ABSOLUT %

NO. MARCH MARCH E CHANGE
2020 2019 CHANGE
I EQUITY AND LIABILITY
1. Shareholder’s Funds
(A) Share Capital
(i) Equity Share Capital 4,00,000 4,00,000 - -
(ii) Preference Share Capital 1,00,000 1,00,000 - -
(B) Reserves and Surplus 1,20,000 1,10,000 10,000 9.09
2. Non- Current liabilities
(a) Long-term borrowings 4,50,000 4,50,000 - -
(b) Long-term provisions 50,000 1,00,000 (50,000) (50)
3. Current Liabilities
(a)Trade Payables 5,30,000 3,30,000 2,00,000 60.6
Short-term Provisions 50,000 50,000 - -
Total 17,00,000 15,40,000 1,60,000 10.38
II. ASSETS
1. Non- Current Assets
(A) Fixed Assets (tangible) 9,90,000 10,40,000 (50,000) (4.81)
(B) Non-Current Investments 1,00,000 1,00,000 - -
2. Non-Current Liabilities
(a) Trade Receivables 5,00,000 3,00,000 2,00,000 66.67
(b) Cash and Cash Equivalents 1,10,000 1,00,000 10,000 10
Total 17,00,000 15,40,000 1,60,000 10.38

Q.24

Comparative Profit and Loss a/c

PARTICULARS NOT ABSOLUTE % OF REVENUE FROM

E AMOUNTS OPERATIONS
NO. 2018-19 2017-18 2018-19 2017-18
I. Revenue from Operations 20,00,000 10,00,000 100 100
II. Other Incomes 60,000 50,000 3 5
III. Total Revenue 20,60,000 10,50,000 103 105
IV. Expenses
(a) Purchase of Stock-in-Trade 7,70,000 4,20,000 38.5 42
(b) Change in Inventories 1,20,000 80,000 6 8
(c) Other expenses 52,000 30,000 2.6 3
Total Expenses 9,42,000 5,30,000 47.1 53
V. Profit Before Tax 11,18,000 5,20,000 55.9 52
VI. LESS -Tax 5,59,000 2,60,000 27.95 26
VII. Profit After Tax
5,59,000 2,60,000 27.95 26

Q.77 Pg.-5.101

REVALUATION A/C
 PARTICULARS AMOUNT PARTICULARS AMOUNT
To Provision for Doubtful Debts 2,500 By Creditors a/c 7,500
To Workmen Compensation Claim 10,000 By Capital a/c (loss on revaluation) 5,000
X- 2,500
Y- 2,500
__________ _________
12,500 12,500

PARTNER’S CAPITAL A/C

PARTICULARS X Y Z PARTICULARS X Y Z
To Revaluation a/c 2,500 2,500 By Balance b/d 1,50,000 1,00,000
To balance c/d 1,87,500 1,27,500 1,25,000 By Current a/c 40,000 30,000
By Cash a/c 1,25,000
1,90,000 1,30,000 1,25,000 1,90,000 1,30,000 1,25,000

JOURNAL ENTRIES

PARTICULARS DEBIT CREDIT

Creditors a/c dr 20,000 -
To bills payable a/c - 20,000
(Being bills payable recorded)

Bank a/c dr 50,000 -

To X’s Loan a/c - 50,000
(being Loan given by X)

Q.76 Pg.- 5.100

JOURNAL ENTRIES

PARTICULARS DEBIT CREDIT

Bank a/c dr 96,000 -
To Z’s Capital a/c - 60,000
To Premium for Goodwill a/c - 36,000

Premium for Goodwill a/c dr 36,000 -

To X’s current a/c - 25,200
To Y’s current a/c - 10,800

X’s current a/c dr 12,600 -

Y’s Current a/c dr 5,400 -
To Bank a/c - 18,000

REVALUATION A/C

PARTICULARS AMOUNT PARTICULARS AMOUNT

To Provision for Doubtful Debts 600 By Accrued Income 4,500
To O.S. Rent a/c 15,000 By Current a/c (loss)
 To investment a/c 6,000 X- 10,260
Y- 6,840
_________ _________
21,600 21,600

CAPITAL A/C

PARTICULARS X Y Z PARTICULARS X Y Z
To Balance c/d 1,80,000 90,000 60,000 By Balance b/d 1,80,000 90,000 -
By Cash a/c - - 60,000
1,80,000 90,000 60,000 1,80,000 90,000 60,000

CURRENT A/C

PARTICULARS X Y Z PARTICULARS X Y Z
To Revaluation a/c 10,260 6,840 By Balance b/d 30,000 6,000
To Goodwill a/c 18,000 12,000 By General Reserve 21,600 14,400
To Bank a/c 12,600 5,400 By Premium for Goodwill 25,200 10,800
To Investment 18,000

To Balance c/d 17,940 6,960

76,800 31,200 76,800 31,200

Q.39 Pg- 6.62

WORKING NOTES –

Old Ratio – 3:2:1

New Ratio – 3:2

Gaining Ratio – 3:2

Goodwill = 34,800

Z = 34,800 * 1/6 = 5,800

X = 3,480

Y = 2,320

JOURNAL ENTRIES

PARTICULARS DEBIT CREDIT

X Capital a/c dr 3,000 -
Y Capital a/c dr 2,000 -
Z Capital a/c dr 1,000 -
To Goodwill a/c - 6,000
 X capital a/c dr 3,480 -
Y capital a/c dr 2,320 -
To Z Capital a/c - 5,800

REVALUATION A/C

PARTICULARS AMOUNT PARTICULARS AMOUNT

To Patents 2,000 By Investments 2,600
To Machinery a/c 5,000 By Creditors 4,000
To Provision for Doubtful Debts 400 By Capital a/c (loss) 800
X- 400
Y- 267
_________ Z- 133 _________
7,400 7,400

CAPITAL A/C

PARTICULARS X Y Z PARTICULARS X Y Z
To Goodwill a/c 3,000 2,000 1,000 By Balance b/d 68,000 32,000 21,000
To Revaluation a/c 400 267 133 By X capital a/c 3,480
To Z capital a/c 3,480 2,320 By Y capital a/c 2,320
To Advertisement 2,625 1,750 875 By Workmen 5,625 3,750 1,875
To Investment 17,600 Compensation Reserve /c
To Bank 5,067 By Investment Fluctuation 3,000 2,000 1,000
To Z loan a/c 2,500 Reserve
To bills Payable 2,500

To Balance c/d 67,120 31,413

76,625 37,750 29,675 76,625 37,750 29,675

BALANCE SHEET

As on April 1, 2020

LIABILITIES AMOUNT ASSETS AMOUNT

Creditors 17,000 Cash at Bank 683
Workmen Compensation Claim 750 Stock 30,000
Bills Payable 2,500 Patents 8,000
Z loan a/c 2,500 Debtors 40,000
Capital a/c - Provision for D.D. 2,400 37,600
X- 67,120 Machinery 45,000
Y- 31,413 98,533

______________ 1,21,283

Q.25 Pg- 6.56

PARTICULARS DEBIT CREDIT

Building a/c dr 20,000 -
Stock of Finished Goods a/c dr 5,000 -
Cash a/c dr 2,000 -
To Revaluation a/c - 27,000

Revaluation a/c dr 12,000

To Plant and Machinery a/c 4,000
To Provision for doubtful debts a/c 1,000
To stock of raw material, a/c 2,000
To Workmen compensation reserve a/c 5,000

Revaluation a/c dr 15,000

To A Capital a/c 6,000
To B Capital a/c 6,000
To C Capital a/c 3,000