Calculate debt-equity ratio from the following information: Total Assets Rs.

15,00,000 Current
Liabilities Rs. 6,00,000 Total Debts Rs. 12,00,000.

5. At the beginning of the year, Addison Company's assets are Rs. 192,000 and its equity is Rs.
144,000. During the year, assets increase Rs. 80,000 and liabilities increase Rs. 55,000. What is the
equity at the end of the year?

Question No.1 Following Trial Balance of a manufacturing company is not matching. Make necessary corrections
and prepare Profit & Loss Account and Balance sheet

Particulars Debit Credit

Sales 12,00,000
Purchase of Raw material 6,50,000
Power & Fuel 30,000
Employee Benefit Expenses 70,000
Land & Building 3,50,000
Machinery 1,80,000
Equity Capital 4,80,000
Reserves & Surplus ( Credit ) 2,00,000
Trade Receivables 2,50,000
Trade Payables 1,00,000
Cash at Bank ( Debit ) 2,10,000
Rent paid 45,000
Furniture 1,00,000
Repairs & Maintenance expenses 6000
Travelling Expenses 5000
Advertisement 19000
Purchase of stock in Trade 35,000
Advance Tax paid 50,000
Advance received from Customer 20,000
Total 24,20,000 15,80,000

Question No.2 Following is the Trial Balance of a manufacturing company which is not matching. You are just
appointed as Accounts officer in the company and Managing Director of the company has requested you to make
necessary changes and to prepare Profit & Loss Account and Balance sheet

Particulars Debit Credit

Equity Capital 5,00,000
Opening stock of raw material 40,000
Purchase of Raw Material 7,80,000
Employee Benefit Expenses 80,000
Reserves & Surplus ( Credit ) 10,50,000
Power & Fuel 65,000
Land 6,00,000
Building 3,50,000
Machinery 4,50,000
Repairs & Maintenance 20,000
 Soft wares 1,00,000
Other operating expenses 2,20,000
Sales 14,85,000
Dividend received 15,000
Investments 4,00,000
Trade receivables 1,25,000
Trade Payables 90,000
Cash in hand and at Bank( Debit ) 1,08,000
12% Loan from Bank 3,00,000
Interest paid on Bank loan 36,000
Royalty paid 66,000
Total 22,54,000 46,26,000

Question 3 – Following is the Trial Balance of a manufacturing company which is not matching. M.D of the
company has requested you to rectify the Trial Balance and to prepare Profit & Loss Account and Balance sheet for
the year 2019-20, after considering the additional information.

Particulars Debit Credit

Equity Share capital 8,00,000
Reserves & Surplus 6,00,000
10% Debentures 5,00,000
Interest paid on Debentures 50,000
Land 6,00,000
Building 5,00,000
Machinery 4,00,000
Furniture 1,00,000
Patents 60,000
Soft wares 40,000
Trade Receivables 80,000
Cash at Bank ( Debit Balance ) 50,000
Trade Payables 1,00,000
Sales/Revenue from Operations 12,50,000
Other Income 10,000
Opening stock of Raw material 40,000
Purchase of Raw material 7,75,000
Opening stock of WIP 70,000
Opening stock of Finished Goods 45,000
Employee Benefit Expenses 65,000
Other Operating Expenses 3,85,000
Total 28,90,000 36,30,000

Other Information 1.Depreciation is to be charged @5% on Tangible Fixed Assets and 25% on Intangible Fixed
Assets.2.Provision on Trade Receivables is to be made of Rs.20,000 against doubtful debts. 3.On 31 st March, 2020
Raw material lying in stores is Rs.25,000, Work in Progress Rs.75,000 and Finished Goods of Rs.55,000.

Question No.4 Give major Incomes, Expenses, Assets and Liabilities for a Software Company like Infosys
Question No.5 Give major Incomes, Expenses, Assets and Liabilities for an Airlines Company like Indigo

Question No.6 Give major Incomes, Expenses, Assets and Liabilities for a Bank

Question No.7 Give major Incomes, Expenses, Assets and Liabilities for a Trading Company

Question No.8 Explain the concept of Provisions with example and its impact on the financial Statements. What will
be the impact on Financial Statements on the reversal of the provision made

Question No.9 Explain the concept of Depreciation & Amortization and its impact on Financial Statements

Question No.10 Explain the concept of Ledger Accounts and its purpose

Question No.11 Explain Basic Equation of Accounting with example

Question No.12 If a Company have Total Assets of Rs.100 lacs and Share Capital is of Rs.40 lacs, how much will
be outside liabilities ?

Question No.13 Explain the concept of Property , Plant & Equipments and Capital Work in Progress

Question No.14 Explain the concept of “Exceptional Item” in Profit & Loss Account