SEF’s

Suryadatta Institute of Business Management and Technology

ASSIGNMENT NO. 1
Programme: MBA Semester: I
Course code and Course Name: 101 – Managerial Accounting
Maximum Marks: 20
Day & Date: Saturday, 17th December, 2022
Submission Date: Tuesday, 20th December, 2022

Instructions:
1. All questions carry equal marks
2. Non-Scientific calculator is allowed

Q.1 From the following Trial Balance of Brijesh Chandra, Dombivali as on 31st March,
2019, prepare Trading Account and Profit & Loss Account for the year ended 31st March, 2019
and a Balance sheet as on that date.

Particulars Debit ₹ Credit ₹

Stock as on 01st April, 2018 20,000 -
Purchases and Sales 2,20,000 3,50,000
Bills Receivable 5,000 -
Returns 10,000 5,000
Carriage Inward 5,000 -
Debtors and Creditors 20,000 40,000
Carriage Outward 4,000 -
Discounts 500 500
Salaries and Wages 22,000 -
Insurance 6,000 -
Rent 6,000 -
Wages and Salaries 8,000 -
Bad Debts 1,000 -
Furniture 40,000 -
Brijesh's Capital - 50,000
Brijesh's Drawings 7,000 -
Loose Tools 10,000 -
Printing and Stationery 3,000 -
 Advertisement 5,000 -
Cash in hand 4,500 -
Cash at Bank 20,000 -
Petty cash 500 -
Machinery 30,000 -
Commission 1,000 3,000
Total Amount 4,48,500 4,48,500

Adjustments:

1. Stock as on 31st March, 2019 was valued as follows: Cost price of ₹ 42,000, Market price ₹
40,000.
2. Depreciate furniture @ 10 % p.a. and Machinery @ 20 % p.a. as per reducing balance
method.
3. Rent of ₹ 500 was paid in advance.
4. Salaries and wages due but not paid amounted to ₹ 3,000.
5. Create a Reserve for Bad & Doubtful Debts @ 5 % on Book Debts.
6. Interest on Capital @ 6% p.a. was also to be provided but not on drawings.

Q. 2 From the following Trial Balance of B & B Sons; Bhopal, prepare trading and Profit &
loss Account for the year ended 2020 and a Balance Sheet as on that date after considering the
following adjustments.

Particulars Debit ₹ Credit ₹

Bharat’s Capital - 2,00,000
Land & Building 87,000 -
Plant & Machinery 17,500 -
Goodwill 20,000 -
Bharat’s Drawing 22,600 -
Cash in hand 1,795 -
Stock as on April 2019 27,000 -
Wages 10,000 -
Purchases less returns 69,000 -
Carriage Inward 600 -
Traveller’s Commission and Expenses 6,000 -
Insurance Premium 2,000 -
Motor Car 3,000 -
Carriage Outward 1,400 -
 Sales Less returns - 94,000
Salaries 15,000 -
Bank Charges 105 -
Reserve for Doubtful Debts - 1,500
Debtors 20,000 -
Creditors - 7,500
Total ₹ 3,03,000 3,03,000

Adjustments:

i. On 31st March, 2020 the stock was valued at ₹ 46,000.

ii. Insurance Premium amounting to ₹ 800 is prepaid.
iii. Outstanding salaries amounting to ₹ 1,000.
iv. Depreciate Plant & Machinery @ 10% p.a. and Motor Car @ 20% p.a.
v. Create a Reserve for Doubtful Debts @ 10% on Debtors.