Financial Accounting Assignment

BBA 2nd Semester

1. The assignment Problems have to be solved in Blue book.

2. The last date to submit the assignments will be 13/3/18 Tuesday by 3 PM.
3. The assignments submitted after the deadline will not be taken for valuation.
4. The assignment is for 10 marks.

1. From The Following Trial Balance Of M/s Manjunath Traders, Prepare The Final Accounts For The Year
Ended 31st March 2004 And The Balance Sheet As That Date.

Particulars Debit (Rs.) Credit (Rs.)

Land And Buildings BS A 50,000 -

Purchases T 1,10,000 -
Stock (1/4/2003)T 40,000 -
Returns T 1,500 2,500
Wages T 10,000 -
Salaries P&L 9,000 -
Office Expenses P&L 2,400 -
Carriage Inwards T 1,200 -
Carriage Outwards P&L 2,000 -
Discounts P&L 750 1,200
Bad Debts P&L 1,200 -
Sales T 2,05,000 -
M's Capital Accounts P.C. A/C - 80,000
N's Capital Accounts P.C A/C - 50,000
Insurance P&L 1,500 -
Commission P&L - 1,500
Plant And Machinery BS A 50,000 -
Furniture And Fixtures BS A 10,000 -
Bills Receivables BS A 20,000 -
Sundry Debtors BS A 40,000 -
Sundry Creditors BS L - 25,000
Cash In Hand BS A 1,500 -
Cash At Bank BS A 4,500 -
Office Equipment BS A 12,000 -
Bills Payable BS L - 2,350

Adjustments:
1. Closing Stock Amounted To Rs. 60,000. T , BS A
2. Outstanding Liabilities: Wages Rs. 2,000, Rent Rs. 3,000. T , P&L , BS L
3. Depreciate Land And Building @ 5%, Plant And Machinery @ 10%, Office Equipment , Furniture And
Fixtures @ 10%. P&L , BS A
4. Create A Reserve @ 5% On debtors Of Doubtful Debts. P&L , BS A
Insurance Premium Prepaid Rs. 200. - P&L , +BS A

6. Provide Interest On Capital @ 5%. P.C A/C , P&L appro.

2. From The Trail Balance And Other Particulars Of M/s. Preethi And Shreeti Given Below. You Are
Required To Prepare Trading And Profit And Loss Account For The Year Ending 31-3-2004 And Balance
Sheet As On That Date:

Particulars Debit (Rs.) Credit (Rs.)

Preethi's Capital P.C A/C , - 46,615

Shreeti's Capital P.C A/C , - 46,615
Preethi's Drawings PC A/C 3,410 -
Shreeti's Drawings PC A/C 3,410 -
Purchases And Sales T 83,290 1,26,177
Debtors And Creditors BS 47,800 22,680
Returns T 7,422 3,172
Wages T 9,915 -
Manufacturing Expenses P&L 2,500 -
Stock On 01-04-2003 T 21,725 -
Factory Fuel And Power T 542 -
Office Salaries P&L 3,745 -
Factory Lighting T 392 -
Carriage Inwards T 897 -
Carriage Outwards P&L 960 -
Plant And Machinery BS A 55,000 -
Fixtures And Fittings BS A 1,720 -
Bills Payable BS L - 6,422
Travelling Expenses P&L 925 -
Cash In Hand BS A 68 -
Cash At Bank BS A 2,425 -
Rent And Taxes P&L 1,765 -
Office Expenses P&L 2,778 -
Discount Allowed P&L 422 -
Insurance P&L 570 -

Adjustments:
1. Stock on 31-3-2002 Rs. 16,580 T , BS A
2. Insurance Prepaid Rs. 70. -P&L , +BS A
3. Wages Outstanding Rs. 800, Salaries Rs. 350 and Rent Rs. 150. T , P&L , BS L
4. Depreciate Plant and Machinery @ 5% And Fixtures And Fittings @ 10%. P&L , BS A
5. Reserve 2.5% of Debtors for Bad Debts. P&L , BS A
6. Goods Worth Rs. 2,500 Is Withdrawn By Preethi For Personal Use. – from Purchases , P.C. A/C
3. From the Following Trial Balance Of M/s. P & Q Who Share Profits And Losses In the Ratio Of 2:1.
Prepare Trading And Profit And Loss Account And Balance Sheet As On 31st December 2004.

Particulars Debit (Rs.) Credit (Rs.)

P's Capital PC A/C - 2,00,000

Q's Capital PC A/C - 1,00,000
P's Drawings PC A/C 30,000 -
Q's Drawings PC A/C 20,000 -
Stock On 1-1-2004 T 1,30,000 -
Purchases T 4,00,000 -
Carriage Inwards T 2,000 -
Carriage Outwards P&L 3,000 -
Purchases Returns T - 10,000
Sundry Expenses P&L 4,000 -
Rent P&L 4,000 -
Bad Debts P&L 3,000 -
Sales T - 6,00,000
Printing And Stationary P&L 1,500 -
Postage P&L 500 -
Wages T 10,000 -
Sales Returns T 5,000 -
Bills Receivable And Payable BS A,L 20,000 30,000
Discounts P&L 8,000 3,000
Land And Building BS A 1,50,000 -
Plant And Machinery BS A 60,000 -
Insurance P&L 5,000 -
Debtors And Creditors BS 1,02,000 80,000
Salaries P&L 13,000 -
Investments P&L 30,000 -
Cash In hand BS A 2,000 -
Cash At Bank BS A 5,000 -
Fuel And Power T 3,000 -
Commission Received P&L Cr. side - 3,000
Furniture BS A 15,000 -
Adjustments:
1. Closing Stock Was Valued At Rs. 1, 00,000; Market Price Rs. 1, 50,000. T , BS A
2. Outstanding Wages Rs, 3,000; Salaries Rs. 5,000. T, P&L, BS L
3. Prepaid Rent Rs. 500; Insurance Rs. 800. -P&L , +BS A
4. Interest on Investments Outstanding Rs. 2,000.
5. Write Of Further Rs. 2,000 As Bad Debts; Create 5% Reserve For Bad Debts, 3% Reserves For Discount
On Debtors And 2% Reserve For Discount On Creditors. P&L ,
6. Depreciate Machinery @ 10%; Furniture @ 4%. P&L , BS A
7. Allow Interest On Capital @ 5%; Interest On P's Drawings Rs. 600 And Interest On Q's Drawings Rs.
400. PC A/C , P&L Appro.
4. A, B and C are partners sharing profits in the ratio of ½, 1/3 and 1/6 respectively. They
decided to convert their partnership into a company, on which date their balance sheet was as
follows:
Liabilities Rs. Assets Rs.
Creditors 24000 Machinery 34200
Capitals Stock 30000
A 52200 Debtors 30000
Less: reserve 3000 27000
B 24000 Cash 18000
C 18000 Profit and loss a/c 9000
118200 118200
The new company was registered with an authorized capital of R150000 (shares of 100
each) agreed to pay purchase price of Rs. 98700 by the allotment of 540 fully paid shares
and the balance in cash. Prepare necessary ledger accounts in the books of the firm.

5. The balance sheet of A, B and C stood as follows as on 31st december2013:

Liabilities Rs. Assets Rs.
Creditors 34000 Cash 12400
Bills payable 2400 Stock 44000
Capital accounts: Machinery 30000
A 40000 Furniture 3000
B 40000 Debtors 40000
Less: reserve 2000 38000
C 20000 Goodwill 9000
136400 136400
It was decided to sell the business to PQR co. Ltd. The company agreeing to allot 12000 fully
paid shares of Rs.10 each in full satisfaction of the purchase consideration. The company
assumed all liabilities except the bills payable and took over all assets except cash. The partners
shared profits and losses in ½, 1/3 and 1/6 ratio respectively. Prepare the necessary ledger
accounts showings the final settlement among the partners.

6. P,Q and R were partners sharing profits in the ratio of 4:.3:1. Their balance sheet on 31.3.2011
on which date they converted their business into a company was as follows:
Liabilities Rs. Assets Rs.
Creditors 16000 Cash 4000
Loan from bank 8000 Debtors 30000
Capitals Stock 26000
P 40000 Machinery 24000
Q 30000 Freehold premises 36000
R 26000
120000 120000

The company to take over the following assets at the valuation shown below:
Machinery at Rs.22000
Stock at Rs. 24000
Debtors Rs. 28000
Goodwill Rs 8000
Freehold premises Rs. 44000
The company agreed to take over creditors at Rs. 15400. The expenses of realization
amounted to Rs. 1000. The firm received 3300 shares of Rs. 10 each fully paid equity
shares and the balance in cash. Prepare the ledger accounts in the books of the firm