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Sri Vidhya Nikethan Matric Higher Secondary Sechool, Varadhapampalayam.
[chap-1 -Final accounts with adjustment][ 5 marks] q.no.38
1.Commission received given in Trial Balance Rs 1,000 as on that date
31.12.1994.Commission accrued but not received Rs 150,Show the adjusting entry and how
will appear in the final accounts.
2.Give adjusting entry and transfer entry for Interest on capital Rs 6,000
3.Give adjusting entry and transfer entry for bad debts Rs 5,000
4.Rent Received is shown in the Trail balance as on 31.12.2003 Rs 10,000.Rent received in
advance is Rs 1,000.You are required to show how it appears in the profit and Loss a/c and
balance sheet.
5.The Trial Balance shows the following as on 31.03.2006
Bank loan @ 10% [on 01.04.2005] Rs 3,00,000
Interest paid Rs 10,000
Provide for interest on bank loan outstanding pass adjusting entry and how will appears in
the final accounts.
6.Give adjusting entry and transfer entry for interest on drawings Rs 3,000
7.As per Trial Balance Capital is Rs 9,00,000 drawings Rs 80,000
Adjustment; Calculate interest on drawings @6% p.a
pass adjusting entry and transfer entry
8.Trial Balance as on 31.3.2007 shows Rent received Rs 30,000.Rent received in advance Rs
6,000 Pass adjusting entry
9.Give adjusting and transfer entry for interest on capital Rs 5,000
10.Commission Received given in Trial Balance is Rs 5,000 as on 31 st December 2006
Commission accrued but not yet received is Rs 150 Show the adjusting entry.
11.As per 31.3.2005 Trial Balance bank loan @ 10% Rs 8,00,000 Interest paid Rs 50,000
Adjustment: Provide for interest on bank loan outstanding .Pass adjusting entry and show
how will this item appear in the final accounts.
12.Give adjusting entry and transfer entry for interest on drawings: Rs 2,000
13.Give adjusting and transfer entry for write off bad debts Rs 3,000
14.Pass adjusting entry and transfer entry for interest on drawings Rs 10,000
15.Give adjusting entry and transfer entry for bad debts Rs 2,500
16.As per The Trial balance Capital as on 31.12.2005 is Rs 90,000.Adjustment:Provide 6%
interest on capital pass adjusting entry and transfer entry.
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17.Giving adjusting entry and transfer entry for write off bad debts Rs 10,000
18.Give adjusting entry and transfer entry for Depreciation at 10% per annum on Machinery
of Rs 25,000
19.The Trial balance 31.3.2005 shows Rs 40,000 as Insurance premium paid. Unexpired
insurance premium Rs 5,000.pass adjusting entry and show how this item will appear in the
Profit and loss account and Balance sheet.
20.Trial balance as on 31.3.2005 show rent received Rs 30,000 Rent received in advance Rs
6,000.
Pass adjusting entry and show how this item will appear in the Profit and loss account and
Balance sheet.
21.As per Trial balance 31.3.2005 capital is Rs 6,00,000.provided 6% interest on capital. pass
adjusting entry and show how this item will appear in the Profit and loss account and
Balance sheet.
22.The Trial Balance shows the following as on 31.03.2006
Bank loan @ 10% [on 01.04.2005] Rs 10,00,000
Interest paid Rs 60,000
Provide for interest on bank loan outstanding pass adjusting entry and how will appears in
the final accounts.
23.Rent received shown in the Trial balance as on 31st December 2001.Rs 10,000.Rent
received in advance is Rs 1,500.You are required to show how it appears in the profit and
Loss a/c and balance sheet.
24.How will the following adjustment appear in the balance sheet as on 31.12.2000
Sundry debtors Rs 21,000
bad debts to be written off Rs 1,000
Adjustment:
Provide @ 5% provision for bad and Doubtful debts and 2% provision for discount on debtors.
25.The Trial balance as on 31.3.2003 show sundry debtors Rs 60,000.Write off bad debts Rs
4,000.pass adjusting entry and show how this item will appear in the Profit and loss account
and Balance sheet.
26.The Trial balance shows the value of Furniture on 31.3.2009 as Rs 60,000.Adjustment;
Furniture is to be depreciated at 10% .Give adjusting entry and Transfer entry.
27.The Trial Balance shows the following as on 31.03.2008
Bank loan @ 10% [on 01.04.2007] Rs 4,00,000
Interest paid Rs 14,000
Provide for interest on bank loan outstanding pass adjusting entry and how will appears in
the final accounts.
28.Give journal entry and transfer entry for interest on drawings Rs 6500
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29.Give journal entry and transfer entry for interest on drawings Rs 6000
12 marks: (q.no.45 a compulsory sums)
1.The following balances have been extracted from the Trial balance of Mr. Ashok as on
31.3.2002
Trail balance as on 31.3.2002
particulars
Debit
Rs
Credit
Rs
Debtors
Bad debts
2,01,200
1,200
-
Adjustments:
1.Write off additional bad debt of Rs 5,000
2.Create provision of 10% for bad and doubtful debts on debtors
3.Create provision of 2% for discount on debtors
Give necessary adjustment entries and show how these items will appear in the Profit and
Loss account and Balance sheet.
2.The Trial Balance show on 31.3.2009 as follows
Sundry debtors Rs 85000
Adjustment:
1.Write off bad debt of Rs 5,000
2.Create provision of 5% for bad and doubtful debts on debtors
3.Create provision of 2% for discount on debtors
Give necessary adjustment entries and show how these items will appear in the Final
accounts
3.The Trial Balance show on 31.3.2007, Sundry debtors Rs 78,000
Adjustment:
1.Write off bad debt of Rs 8,000
2.Create provision of 5% for bad and doubtful debts on debtors
3.Create provision of 2% for discount on debtors
Give necessary adjustment entries and show how these items will appear in the Final
accounts
4.The following items are found in the Trial Balance Of Mr.Kumar as on 31.3.2004
Sundry debtors Rs 64,000
Bad debts Rs1,200
Adjustment:
2.Create provision of 5% for bad and doubtful debts on debtors
Give necessary adjustment entries and show how these items will appear in the Final
accounts
5.The Trial Balance show on 31.3.2007 as follows
Sundry debtors Rs 52,000
Adjustment:
1.Write off bad debt of Rs 2,000
2.Create provision of 5% for bad and doubtful debts on debtors
3.Create provision of 2% for discount on debtors
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Give necessary adjustment entries and show how these items will appear in the Final
accounts
6.The Trial Balance shows Sundry debtors as Rs 1,25,000 ,bad debts Rs 4,000 as on 31.3.2003
Adjustment:
1.Write off bad debt of Rs 5,000
2.Create provision of 5% for bad and doubtful debts on debtors
3.Create provision of 1 ½ % for discount on debtors
Give necessary adjustment entries and show how these items will appear in the Final
accounts
7.The Trial balance shows as on 1st December 2006
Sundry Debtors-Rs 10,500
Adjustment:
1.Bad debts to be written off Rs 500
2.provide 5% provision for bad and doubtful debts
3.@ 2% provisions for discount on debtors
pass the journal entries and show how they appear in the final accounts.
8.The Trial balance shows on 31.3.2005 Sundry debtors -Rs 56,000
Adjustment:
1.Write off bad debt of Rs 6,000
2.Create provision of 5% for bad and doubtful debts on debtors
3.Create provision of 2% for discount on debtors
Give necessary adjustment entries and show how these items will appear in the Final
accounts
9.The Trial Balance shows on 31.3.2006 Sundry Debtors Rs 1,50,000.provide 5% provision for
bad and doubtful debts on Sundry debtors .Pass adjusting entry and show how this item will
appear in the final accounts.
10.Following are the balances extracted from the Trial balance of Mr. Raveendran as on
31.3.2005 Rs
Sundry debtors 65,000
Bad debts 2,500
Provision for bad and doubtful debts 1,500
Adjustment:
1.Write off bad debt of Rs 1,500
2.Create provision of 3% for bad and doubtful debts on debtors
Give necessary adjustment entries and show how these items will appear in the Final
accounts
11.The Trial balance shows on 31.3.2006 as follows;
Sundry debtors Rs 1,00,000
Adjustments:
1.Bad debts to be written off Rs 10,000
2.Provision for bad and doubtful debts be created at 5%
3.Provide discount on debtors at 2%
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Pass adjustment entries and show how these items will appear in the Final accounts
12.The following are the balances extracted from the Trial balances of Kumar as on 31.3.2002
Trial balance as on 31.3.2002
particulars
Sundry debtors
bad debts
Provisions for bad and doubtful debts
Debit
Rs
1,20,000
10,000
-
Credit
Rs
20,000
Adjustment:
Create Provision for bad & Doubtful debts @ 5% on Sundry Debtors
13.The Trial Balances shows on 31.3.2004
Sundry debtors Rs 41,500
Bad debts Rs 1,000
Adjustments:
1.Write off bad debts Rs 1,500
2.Provide 5% for bad and doubtful debts
3.Provide 2% for discount on debtors
pass adjustment entries and also how this item will appear in the final accounts.
14.The Trial Balance shows on 31.3.2003 Sundry debtors1,25,000
Adjustments;
1.Bad debts to be written off Rs 5,000
2.provision for bad and doubtful debts be created at 5%
3.Provide discount on debtors at 2%
pass adjusting entries also show how these items will appear in the final accounts
15.The Trial Balance shows on 31.3.2005 Sundry debtors 65,000
Adjustments;
1.Bad debts to be written off Rs 5,000
2.provision for bad and doubtful debts be created at 5%
3.Provide discount on debtors at 2%
pass adjusting entries also show how these items will appear in the final accounts
16.The Trial Balance shows on 31st March 2004 Sundry debtors Rs 2,20,000
Adjustments;
1.Bad debts to be written off Rs 20,000
2. provision for bad and doubtful debts be created at 5%
pass adjusting entries also show how these items will appear in the final accounts
17.The Trial Balance shows on 31.3.2003 Sundry debtors Rs 2,00,000 and Bad debts Rs
10,000
Adjustments;
1.Bad debts to be written off Rs 5,000
2.provision for bad and doubtful debts be created at 5%
3.Provide discount on debtors at 2%
pass adjusting entries also show how these items will appear in the final accounts
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18.The Trial balance shows on 31.3.2008 as follows;
Sundry debtors Rs 1,25,000
Adjustments:
1.Bad debts to be written off Rs 5,000
2. Provision for bad and doubtful debts be created at 5%
3. Provide discount on debtors at 2%
Pass adjustment entries and show how these items will appear in the Final accounts
19. The Trial balance shows on 31.3.2005 as follows;
Sundry debtors Rs 65,000
Adjustments:
1. Bad debts to be written off Rs 5,000
2. Provision for bad and doubtful debts be created at 5%
3. Provide discount on debtors at 2%
Pass adjustment entries and show how these items will appear in the Final accounts
20. How will the following adjustment appear in the profit and Loss account and balance
sheet as on 31.12.2006?
Adjustment:
Sundry debtors Rs 21,000
Bad debts to be written off Rs 1,000
Provide @ 5% provision for bad and Doubtful Debts and 2% provision for discount on debtors
Give adjusting entries.
21. The Trial balance shows on 31.3.2008 as follows;
Sundry debtors Rs 1, 25,000
Adjustments:
1. Bad debts to be written off Rs 5,000
2. Provision for bad and doubtful debts be created at 5%
3. Provide discount on debtors at 2%
Pass adjustment entries and show how these items will appear in the Final accounts
22. The following balances have been extracted from the Trial balance of Mr.Ashok as on
31.3.2002
Trail balance as on 31.3.2002
particulars
Debit
Rs
Credit
Rs
Debtors
Bad debts
2,01,500
1,500
-
Adjustments:
1. Write off additional bad debt of Rs 5,000
2. Create provision of 10% for bad and doubtful debts on debtors
3. Create provision of 2% for discount on debtors
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Give necessary adjustment entries and show how these items will appear in the Profit and
Loss account and Balance sheet.
20 Marks (q.no.54)
1. From the following particulars taken from the books of Ganesh , prepare Final accounts for
the year ending 31.3.1999
Trial balance as on 31.3.1999
Debit Balance
RS
Drawings
Cash at bank
Cash
Wages
Purchases
Stock [1.4.1998]
Buildings
Debtors
Bills Receivable
Rent
Commission
General Expenses
Furniture
Credit balance
4,000 Capital
1,700 Sales
6,500 Creditors
1,000
2,000
6,000
10,000
4,400
2,900
450
250
800
500
40,500
Adjustment:
1.Stock on 31.3.1999 was Rs 4,000
2.Interest on Capital at 6 %to be provided
3.Interest on Drawings at 5% to beprovided
RS
20,000
16,000
4,500
40,500
4.Wages yet to be paid Rs 100
5.Rent prepaid Rs 50
2.From the following Trial balance of Mr. Saravanan, Prepare Trading and Profit and Loss
account for the Year ended 31st march 2009 and the Balance sheet as on that date:
Trial Balance as on 31st march 2009
Debit Balance
Cash in hand
Cash at bank
Drawings
wages
Purchases
Opening stock
Buildings
Sundry Debtors
Bills Receivable
Commission
General Expenses
Insurance
Adjustment:
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RS
45,000
20,000
30,000
15,000
60,000
50,000
1,00,000
85,000
20,000
8,000
10,000
7,000
4,50,000
Credit balance
Capital
Sundry creditors
Sales
Bills payable
RS
2,00,000
50,000
1,70,000
30,000
4,50,000
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1.Closing stock Rs 30,000
2.Interest on capital 6% p.a to be provided
3.Depreciate Building by 10%
4.Outstanding wages Rs 2,000
5.Unexpired Insurance Rs 1,000
3.From the following Trial Balance of Mr. Imran as on 31st March 2005.Prepare Trading and
profit and loss account for the year ending 31.3.2005 and balance sheet as on that date.
Trial Balance as on 31st march 2005
Debit Balance
RS
Credit balance
RS
Purchase
1,50,000 Capital
3,00,000
Sundry debtors
80,000 Sundry Creditors
53,000
Investment
1,20,000 Sales
2,20,000
Rent
15,000 Commission received
7,000
carriage Inwards
10,000 Bills payable
20,000
Salaries
20,000
General Expenses
10,000
cash
30,000
Opening stock
75,000
Machinery
60,000
Drawings
30,000
6,00,000
6,00,000
Adjustment:
1.Clsoing stock Rs 1,00,000
2.Outstanding Rent Rs 2,000
3.Interest on capital at 6% is to be provided
4.Commission Received in advance Rs 1,000
5.Depreciate machinery at 10% p.a
4.The Trial Balance of Murugan as on 31.3.1994 is as follows
Trial Balance as on 31st march 1994
Debit Balance
Drawings
Building
Furniture & fittings
Computer
Interest on loan
Loose tools
Purchases
Stock
general expenses
Freight inward
Freight Outward
Debtors
Bank
RS
Credit balance
RS
3,600
30,000
15,000
50,000
1,800
32,200
1,50,000
50,000
30,000
4,000
2,000
56,000
40,400
4,65,000
Capital
Loan @ 6%
Sales
Commission received
Creditors
2,00,000
30,000
2,00,000
15,000
20,000
Adjustment:
1.Closing stock Rs 64,000
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4,65,000
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2.Depreciate computer at 10% ,Buildings at 5% , Furniture and fittings 10%
3.provide interest in drawings at 6% and on capital at 6%
Prepare Final accounts for the year ending on 31.3.1994.
5.From the following Trial Balance Of Mr. Arumugam ,Prepare Trading and Profit and loss
account for the year ending 31.3.2003 and balance sheet as on that date:
Trial Balance as on 31st march 1994
Debit Balance
Cash in hand
Cash at bank
Drawings
Wages
Purchases
Stock (01.04.2007)
Buildings
Sundry Debtors
Bills Receivable
Rent
Commission
general Expenses
Furniture
RS
Credit balance
32,500 Capital
8,500 Sales
20,000 Sundry creditors
5,000
10,000
30,000
50,000
22,000
14,500
2,250
1,250
4,000
2,500
2,02,500
RS
1,00,000
80,000
22,500
2,02,500
Adjustment:
1.Closing stock was valued at Rs 20,000
2.Interest on capital at 6% is to be provided
3.Depreciated Buildings at 10% p.a
4.Wages yet to paid Rs 500
5.Rent prepaid Rs 250
6.From the following particulars taken from the books of Mr. Ganesh ,prepare Final accounts
for the year ending 31.3.1999
Trial balance as on 31.3.1999
Debit Balance
Drawings
Cash at bank
Cash
Wages
Purchases
Stock [1.4.1998]
Buildings
Debtors
Bills Receivable
Rent
Commission
General Expenses
Furniture
Adjustment:
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RS
Credit balance
40,000 Capital
17,000 Sales
65,000 Creditors
10,000
20,000
60,000
1,00,000
44,000
29,000
4,500
2,500
8,000
5,000
4,05,000
RS
2,00,000
1,60,000
45,000
4,05,000
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1.Stock on 31.3.1999 was Rs 40,000
2.Interest on Capital at 6 %to be provided
3.Interest on Drawings at 5% to be
provided
4.Wages yet to be paid Rs 1,000
5.Rent prepaid Rs 500
7.From the following particulars taken from the books of Mr. Anbu , prepare Final accounts
for the year ending 31.3.2006
Trial balance as on 31.3.1999
Debit Balance
Cash in Hand
Cash at bank
Drawings
Wages
Purchases
Opening stock
Buildings
Bills Receivable
Sundry Debtors
Commission
General Expenses
Insurance
RS
Credit balance
16,000 Capital
40,000 Sales
5,000 Sundry Creditors
4,000
25,000
37,000
1,50,000
13,000
87,000
4,000
11,000
8,000
4,00,000
RS
2,00,000
1,62,000
38,000
4,00,000
Adjustment:
1.Closing stock Rs 25,000
2.Outstanding wages RS 1,000
3.Unexpired Insurance Rs 2,000
4.Depreciate Buildings by 10%
5.Interest on Capital 6% p.a to be provided
8.From the following balances are extracted from the books of Mr. Kavin as on 31st march
2004 prepare trading account and Profit and loss account balance sheet as on that date:
Trial balance as on 31.3.2004
Debit Balance
General expenses
Drawings
Cash in hand
Stock (1-4-2003)
Furniture
Purchases
wages
Insurance premium
Salaries
Sundry debtors
Adjustment:
1.Closing Stock Rs 1,00,000
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RS
Credit balance
RS
16,500
16,000
2,500
1,00,000
80,000
3,00,000
50,000
1,000
15,000
1,50,000
7,31,000
Capital
Commission
Bank over draft
Sales
Sundry Creditors
Bills payable
1,20,000
11,000
25,000
5,00,000
50,000
25,000
7,31,000
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2.Wages yet to be paid RS 2,000
3.Commission accrued and not yet received Rs 1,000
4.Quarterly premium of Insurance is paid in advance
5.Depreciate furniture @ 10%
9.From the following Trial Balance of Mr. Karthick as on 31st March 2006 Prepare Trading
account and Profit and loss account For the year ended 31.3.2006, And The balance sheet as
on that Date;
Trial balance as on 31.3.2006
Debit Balance
Purchases
Sundry Debtors
Investment
Rent
Carriage Inwards
Salaries
General expenses
Cash
Opening stock
machinery
Drawings
RS
Credit balance
RS
1,25,000
90,000
50,000
10,000
5,000
25,000
15,000
25,000
85,000
50,000
20,000
5,00,000
Capital
Sundry Creditors
Sales
Commission Received
Bills payable
2,50,000
60,000
1,60,000
10,000
20,000
5,00,000
Adjustment:
1.Closing stock RS 1,20,000
2.Outstanding Rent Rs 5,000
3.Commission Received in advance Rs 2,000
4.Depreciate machinery at 10% p.a
5.Write off Bad Debts Rs 2,000
10.From the following Trail Balance of Mr. Anand as on 31st March 2004,Prepare Trading
account ,Profit and loss account for the year ended 31.3.2004 and the Balance sheet as on that
date
Trial balance as on 31.3.2004
Debit Balance
Cash in hand
Purchases
Opening stock
Sundry Debtors
Plant & Machinery
Furniture
Bills receivable
Rent & Taxes
Wages
Salaries
Freight Inward
Adjustment:
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RS
500
1,20,000
40,000
60,000
50,000
20,000
15,000
10,000
16,000
20,000
1,000
3,52,500
Credit balance
Capital
Bank loan @ 5%
Bills payable
Sales
Sundry Creditors
Interest
RS
80,000
20,000
25,000
2,00,000
25,000
2,500
3,52,500
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1.Closing stock Rs 50,000
2.Provide for the following liabilities
a]wages Rs 3,000 b]Salaries Rs 4,000 c]Rent & Taxes Rs 2,000
3.Depreciation on Plant and machinery @ 5% and Furniture 10%
4.Provide 5% interest on bank loan
5.Write off bad debts Rs 2,000
11.From the following Trial Balance of Mr.Ruso prepare the final accounts for the year ending
31.12.2005
Trial balance as on 31.3.2005
Debit Balance
Cash in Hand
Cash at Bank
Drawings
Wages
Purchases
Stock
Buildings
Sundry Debtors
Rent
General expenses
RS
Credit balance
RS
65,000 Capital
2,00,000
17,000 Sales
1,60,000
40,000 Sundry Creditors
45,000
10,000
20,000
60,000
1,00,000
78,000
7,000
8,000
4,05,000
4,05,000
Adjustment:
1.Closing stock Rs 40,000
2.Interest on Drawings at 5% to be provided
3.Depreciate Buildings at 10% p.a
4.Write off bad debts Rs 1,000
5.Wages yet to be paid Rs 500
12.From the following Trial Balance of Mr.Abdul Hammed prepare the Final accounts for the
year ending 31.12.2005
Trial balance as on 31.3.2005
Debit Balance
Purchases
Stock
Buildings
Sundry Debtors
Rent
General Expenses
Cash in Hand
Cash at Bank
Drawings
Wages
Adjustment:
1.Closing stock Rs 40,000
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RS
Credit balance
60,000 Sales
1,80,000 Sundry Creditors
3,00,000 Capital
2,34,000
21,000
24,000
1,95,000
51,000
1,20,000
30,000
12,15,000
RS
4,80,000
1,35,000
6,00,000
12,15,000
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2.Interest on Drawings at 5% to be provided
3.Depreciate Buildings at 10% p.a
4.Write off bad debts Rs 4,000
5.Wages yet to be paid Rs 1,500
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31st
13.From the following Trial Balance Of Mr. Ashok as on
March 2005 ,prepare Trading
,Profit and loss account and the Balance sheet as on that date
Trial balance as on 31.3.2005
Debit Balance
Purchases
Sundry Debtors
Investment
Rent
Carriage inwards
salaries
general expenses
Cash
opening stock
Furniture
Drawings
RS
Credit balance
RS
75,000
80,000
35,000
10,000
5,000
20,000
15,000
15,000
80,000
45,000
20,000
4,00,000
Capital
Sundry creditors
Sales
Bills payable
Commission received
2,00,000
40,000
1,30,000
20,000
10,000
4,00,000
Adjustment:
1.Closing stock Rs 1,00,000
2.Outstanding salary Rs 2,000
3.Commission received in advance Rs 3,000
4.Depreciate Furniture at10% p. a
5.provide interest on capital at 6% p. a
14.From the following Trial Balance of Mr. Joseph prepare the final accounts for the year
ending 31.12.2003
Trial balance as on 31.3.2003
Debit Balance
Cash in hand
Cash at bank
Drawings
Wages
Purchases
Opening stock
Buildings
Bills receivable
Sundry debtors
Rent
Commission
general expenses
Insurance
RS
Credit balance
27,000 Capital
80,000 sales
10,000 Sundry creditors
8,000
50,000
75,000
3,00,000
25,000
1,75,000
5,000
8,000
22,000
15,000
8,00,000
Adjustment:
1.Closing stock Rs 50,000
2.Outstanding wages Rs 2,000
3.Prepaid Insurance Rs 5,000
4.Interest on Capital at 6% p.a to be provided
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RS
4,00,000
3,25,000
75,000
8,00,000
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5.Depreciate Buildings by 10% p.a
15.The following are the balances extracted from the books of Mrs.Thenmozhi as on 31.3.2006
Trial balance as on 31.3.2006
Debit Balance
Drawings
Cash in hand
cash at Bank
Wages
Purchases
Stock
Buildings
Sundry debtors
Bills receivable
Rent
Commission
General expenses
Furniture
RS
Credit balance
RS
40,000
17,000
65,000
10,000
20,000
60,000
1,00,000
44,000
29,000
4,500
2,500
8,000
65,000
4,65,000
Capital
Sales
Sundry creditors
Bills payable
2,00,000
1,60,000
45,000
60,000
4,65,000
Adjustment:
1.Closing stock Rs 50,000
2.Interest On capital at 6% to be provided
3.Interest on Drawings art 5% to be provided
4.wages yet to be paid Rs 1,000
5.Rent prepaid Rs 900
Prepare Trading and Profit and loss account and balance sheet on 31.3.2006
16.The following are the balances extracted from the books of Mrs. Sundari as on 31st March
2006
Trial balance as on 31.3.2006
Debit Balance
Furniture
cash in hand
Opening stock
Purchases
Investment @10%
Drawings
Salaries
Insurance
Rent
Debtors
Advertising
General expenses
RS
30,000
8,000
1,00,000
3,40,000
20,000
60,000
72,000
12,000
26,000
1,80,000
40,000
27,500
9,15,500
Adjustment:
1.Closing stock was valued at Rs 80,000
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Credit balance
Capital
Commission
Sales
Creditors
Interest received
RS
2,00,000
14,000
6,00,000
1,00,000
1,500
9,15,500
2.provide for accrued interest on
Investment Rs 500
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3.Commission received in advance Rs 4,000
5.provide an interest on capital @ 5%
4.Depreciation furniture by 10%
Prepare Trading and Profit and loss account and balance sheet as on 31st March
2006
17.The following are the balances extracted from the books of Mr.Raja as on 31st
March 2009
Trial balance as on 31.3.2009
Debit Balance
Drawings
cash in bank
Cash in hand
wages
Purchases
Stock
Buildings
Sundry debtors
Bills receivable
Rent
General expenses
Furniture
RS
30,000
20,000
60,000
10,000
40,000
60,000
1,00,000
30,000
25,000
5,000
15,000
1,00,000
5,00,000
Credit balance
RS
Capital
2,00,000
Sales
1,10,000
Sundry creditors 50,000
Bank loan
1,00,000
Bills payable
40,000
5,00,000
Adjustment:
1.Closing stock Rs 50,000
2.Outstanding wages Rs 500
3.Interest on capital at 6% to be provided
4.Depreciate Buildings by 10%
5.Prepaid Rent Rs 1,000
Prepare Trading and Profit and loss account and Balance sheet as on 31st March 2009
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Sri Vidhya Nikethan Matric Higher Secondary School,
Varadhapampalayam.
[chapter-2-Accounts from incomplete records –Single entry][ 5 marks]q.no39
1.calculate the missing information: Rs
Profit made during the year
2,500
Capital at the end
6,000
Drawings
2,000
Capital at the beginning
1,200
2.Calculate the missing information:
Profit made during the year
5,000
Capital at the end
12,000
Additional Capital
4,000
Drawings
2,400
Capital in the beginning
?
3.Find out profit or loss from the following :
Opening capital
1,40,000
Closing capital
1,50,000
Additional capital
35,000
Drawings
10,000
4.Calculate the missing information:
Drawings
50,000
Additional Capital
10,000
Opening capital
1,00,000
Profit made during the year
25,000
Closing Capital
?
5.Calculate the missing figure;
Capital at the beginning
Rs 60,000
Capital at the end
Rs 80,000
Profit made during the year
Rs 32,000
Additional capital Introduced Rs 10,000
Drawings
?
6.Calculate the missing figure:
Capital at the end
12,000
Profit made during the year
5,500
Capital introduced during the year
4,000
Drawings
2,500
Capital at the beginning
?
7.From the following Find out the Total Sales
Sundry Debtors (1-1-2005)
60,000
Cash received from sundry Debtors
90,000
Sales return
7,500
Closing (31.12.2005) Sundry Debtors 74,500
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Cash Sales
65,000
8.Calculate the missing information;
Closing capital
1,63,800
Additional capital
42,300
Drawings
25,200
Loss
12,600
Opening capital
?
9.Calculate the missing figure;
Drawings
1,50,000
Additional capital
30,000
Capital in the beginning
3,00,000
Profit made during the year
40,000
Capital at the end
?
10.Calculate the missing information from the following:
Profit made during the year
Capital at the end
Additional capital introduced during the year
Drawings
Capital in the beginning
11.Calculate the missing information:
Drawings
55,000
Additional capital
10,000
Opening capital
1,20,000
Profit for the year 35,000
Closing capital
?
12.Find out profit or loss for the year;
Opening capital
70,000
Closing capital
75,000
Additional capital 17,500
Drawings
5,000
13.Calculate the sundry debtors at the end:
Opening sundry debtors
80,000
Total sales
3,20,000
Cash sales
40,000
Cash received from sundry debtors
1,56,000
Returns inwards
10,000
14.From the following details find out total purchases:
Opening sundry creditors
1,50,000
Cash paid to sundry creditors 45,000
Discount received
30,000
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4,500
?
4,000
2,400
9,600
Purchases returns
15,000
Closing sundry creditors 1,80,000
Cash purchases
80,000
15.From the following information , find out the total sales
Sundry Debtors (1-04-2004)
50,000
Cash received from sundry Debtors
80,000
Sales return
5,000
Closing (31.03.2005) Sundry Debtors 75,000
Cash Sales
79,000
Discount allowed to debtors
2,000
16.Find out the profit or loss from the following:
Opening capital
4,00,000
Closing capital
5,00,000
Drawings
90,000
Additional capital
30,000
17.From the following information calculate the missing information;
Drawings
40,000
Additional capital
60,000
Opening capital
60,000
Profit during the year
50,000
Closing capital
?
18.Calculate the missing information:
Capital at the end
80,000
Capital at the beginning 60,000
Profit for the year
32,000
Additional capital
10,000
Drawings
?
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[chapter-2-Accounts from incomplete records –Single entry][ 12
marks]q.no.45b
1.Mr Suresh started business with Rs 2,00,000 on 1.4.2003 .His books are kept
under single entry. On 31.3.2004 his position was under
Liabilities
Rs
Assets
Rs
Creditors
40,000 Cash
6,000
Bills payable
5,000 Cash at Bank
10,000
Outstanding expenses
7,500 Furniture
30,000
Plant & machinery 1,00,000
Debtors
50,000
Stock
90,000
Bills receivable
15,000
Ascertain Profit or Loss made by Suresh for the year ended 31.3.2004
2.Mrs.Sankari started business with Rs 1,50,000 as Capital as on 1.4.2006.During
the year she has withdrawn at the rate of 3,000 per month. She introduced Rs
40,000 as additional Capital
Rs
Bank Balance
15,000
Stock
85,000
Sundry debtors
75,000
Machinery
45,000
Cash in hand
20,000
Sundry creditors
30,000
Prepaid expenses
4,000
She keeps her books under Single entry system Find out her Profit Or Loss for the
year 2006-07
3.Mr.Anwar keeps his books by incomplete single entry. His assets and liabilities on
1.4.2006 and 31.3.07 stood as follows
Cash in hand
1.4.2006
31.3.2007
Rs
Rs
5,000
10,000
Sundry Debtors
70,000
85,000
Investment
30,000
30,000
Furniture
10,000
10,000
Sundry creditors
40,000
50,000
Stock
55,000
75,000
He introduced an additional capital of Rs 30,000.He withdrew fro Domestic purpose
for Rs 50,000.Find out the Profit or Loss for the year 2006 -2007
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4.Raj keeps his books by single entry system .his position on 1.4.2003 and 31.3.2004
was as under;
1.4.2003 31.3.2004
Rs
Rs
Cash
500
6,000
Bank
10,000
15,000
Stock
7,000
10,000
Debtors
30,000
40,000
Furniture
6,000
6,000
Creditors
6,000
12,000
He introduced an additional capital of Rs 8,000 during the financial year. He
withdrew Rs 14,000 for Domestic purposes . Find out the Profit or Loss for the year
ended 31.3.2004
5.Mr.Sugan keeps his books by incomplete double entry. He started business with
Rs 3,00,000 on 1.4.2005
On his position was as under:
Cash in hand
8,000
Sundry creditors
50,000
Cash at Bank
20,000
Bills payable
10,000
Furniture
40,000
Outstanding expenses
8,000
Plant & machinery
2,00,000
Sundry debtors
1,50,000
Stock
1,50,000
Bills receivable
15,000
Additional Capital Rs 10,000 and drawings Rs 5,000
Ascertain the Profit or Loss for the year 2005-2006
6.Mr.Suresh Keeps his books by incomplete double entry system. He started
business with Rs 1,10,000 on 1.4.2007.On 31.3.2008 his position was as under:
Bank balance
20,000
Stock
30,000
Sundry debtors
70,000
Machinery
50,000
Cash in hand
10,000
Bills receivable
30,000
Sundry creditors
40,000
Bills payable
20,000
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Outstanding Expenses
500
During the year he introduced Rs 35,000 as additional capital .he has withdrawn Rs
2,000 per month for his personal use. Find out his profit or Loss for the year 200708
7.The balances appear in Bharani’s books which are kept on single entry basis;
Jan1,2001 Dec31.2001
Rs
Rs
Furniture
2,000
2,000
Stock
5,000
6,000
Sundry debtors
6,000
4,000
Cash
10,000
20,000
Sundry creditors
2,000
3,500
Bills receivable
1000
500
Loan(dr)
1,000
Investment
4,000
His drawings during the year were Rs 2,000 .Depreciate Furniture by 10% and
provided a reserve for bad and doubtful debts at 5% on sundry debtors. Prepare a
statement showing profit or Loss for the year 2001
8.Mohan maintain books on single entry. He gives you the following information
Particulars
Jan1,2006
Dec31.2007
Rs
Rs
Cash in hand
2,000
3,000
Cash at bank
1,000
2,000
Stock
16,000
18,000
Furniture
3,000
5,000
Sundry debtors
21,000
30,000
Creditors
5,000
7,000
He has taken Rs 4,000 from the business to meet his personal expenses. calculate
the profit Or Loss for the year 2006
9.Mr.Kumar started business with Rs 2,15,000 as capital on 1.4.2005.During the
year he has withdrawn at the rate of Rs 2,000 per month. He introduced Rs 25,000
as additional capital. His position on 31.3.2006 was as follows:
Bank balance
10,000
Stock
95,000
Sundry debtors
65,000
Machinery
35,000
Cash in hand
25,000
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Sundry creditors
20,000
Prepaid expenses
2,000
He keeps his books under single entry system. Find out his profit or loss for the year
2005-2006
10.Thiru Parthasarathy keeps his books by ‘single entry system’. His position on
1.4.2006 and 31.3.2007 was as follows:
Particulars
1.4.2006 31.3.2007
Rs
Rs
Cash
500
6,000
Bank balance
10,000
15,000
Stock
7,000
10,000
Sundry debtors
30,000
40,000
Furniture
6,000
6,000
Sundry creditors
6,000
12,000
He introduced an additional capital of Rs 8.000,During the financial year .He
withdrew Rs14,000 for domestic purposes. Find out the Profit or Loss for the year
ended 31.3.2007
11.Mrs.vandana started business with Rs 1,20,000 as capital 1.4.2004,During the
year she has withdrew at the rate of 1,000 per month. She introduced Rs 20,000 as
additional capital. Her position on 31.3.2005 was as follows:
Bank
18,000
Stock
80,000
Sundry debtors
50,000
Furniture
5,000
Cash in hand
3,500
Sundry creditors
Expenses outstanding
22,000
1,500
She keeps her books under single entry system Determine her profit or loss for the
year ended 2004-2005
12.Mr.Ragupathi keeps his books by incomplete single entry .His assets and
liabilities on 1.1.2004 and 31.3.2004 stood as follows;
Particulars
1.1.2004 31.12.2004
Rs
Rs
Cash in hand
10,000
15,000
Sundry debtors
80,000
95,000
Investment
20,000
20,000
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Furniture
5,000
5,000
Sundry Creditors
50,000
60,000
Stock
35,000
65,000
He introduced an additional capital of Rs 20,000.He withdrew Rs 40,000 for
domestic purposes. Find out the Profit or Loss for the year 2004
13.Mrs.Rani started business with Rs 1,20,000 as capital on 1.4.2003.During the
year she has withdrawn at the rate of 1,000 per month .She introduced Rs 20,000 as
additional capital. His position on 31.3.2004 was as under:
Bank balance
8,000
Stock
80,000
Sundry debtors
50,000
Furniture
2,500
Cash in hand
2,000
Sundry creditors
25,000
Expenses outstanding
1,000
She keeps her books under single entry system. Determine her profit or loss for the
year 2003-2004
14.Mrs . Praveena keeps her books on single entry basis. Find out the Profit or loss
for the period ending 31.3.2005.She started business with Rs 2,35,000 on 1.40.2004
.On 31.3.2005 her position was as under:
particulars
Rs
Bank balances (Dr)
45,000
Cash in hand
3,000
Stock
40,000
Sundry debtors
76,000
Plant & machinery 2,00,000
Furniture
1,00,000
Sundry creditors
1,80,000
Mrs.Praveena had withdrawn Rs 1,00,000 for her personal use and had introduced
fresh capital of Rs 40,000,A provision of 5% on debtors is necessary for doubtful
debs .Write off depreciation on Plant & machinery at 10% and Furniture at 5%
15.Mr.Rajan keeps his books by single entry .he started business on 1st April 2003
with Rs 3,25,000.On 31st March 2004 his position was as under:
Liabilities
Rs
Assets
Rs
Cash in hand
3,000 Plant & machinery 2,00,000
Sundry creditors
50,000 Sundry debtors
1,50,000
Cash at bank
25,000 Stock
1,50,000
Bills payable
12,000 Bills receivable
15,000
Furniture
40,000
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Outstanding expenses
6,000
Additional capital Rs 40,000 and Drawings Rs 15,000.ascertain his profit or loss for
the year 2003-2004
16.Mr.Rajaram keeps his books by incomplete single entry. He started business on
01.01.2005.His assets and liabilities on 01.10.2005 and 31.12.2005 stood as follows
Particulars
1.1.2005 31.12.2005
Rs
Rs
Cash in hand
5,000
60,000
Sundry creditors
15,000
30,000
Furniture
15,000
15,000
Sundry debtors
75,000
1,00,000
stock
35,000
50,000
He introduced an additional capita; of Rs 15,000 during the year .He withdrew Rs
35,000 for domestic purposes. Find out the his profit or loss for the year 2005
17.Mr.Joseph started business with Rs 3,00,000 on 1st April,2003.His books are kept
under incomplete double entry.
On 31st March 2004 his position was as under:
Stock
10,500
Furniture
2,20,000
Cash
40,500
Sundry debtors
1,50,000
Sundry creditors 2,00,000
Bills receivable
75,000
Loan
25,000
Investment
2,50,000
Mr.Joseph withdrew Rs 40,000 for his personal use and he introduced fresh capital
of Rs 1,00,000.depreciate furniture by 10% per annum and provide reserve for bad
and doubtful debts at 5% on sundry debtors. Ascertain profit or loss made for the
year ended 31st March 2004
18.Mr.David started business with Rs 4,00,000 on 1st April 2003.is books are kept
under incomplete double entry system.
On 31st March 2004 his position was as under:
Sundry creditors
3,00,000
Cash is hand
10,000
Cash at bank
60,000
Bills payable
50,000
Outstanding expenses
25,000
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Furniture
1,00,000
Plant & machinery
4,00,000
Sundry debtors
2,50,000
Stock
1,50,000
Bills receivable
75,000
He introduced an additional capital of Rs 45,000 during the financial year .he
withdrew Rs 20,000 for domestic purposes
Ascertain the profit or loss for the year ended 31st March 2004
20 marks(Q.No 53 compulsory sums)
1 Kannan started business with Rs 2,62,500 on 1.4.2003 .he bought furniture for Rs
42,000 .he borrowed Rs 52,500 from Bank. He withdrew for personal expenses Rs
75,600.
From the details given prepare final accounts on 31.3.2004:
Credit sales
7,00,000
Cash sales
3,50,000
Credit Purchases
7,87,500
Cash Purchases
1,40,000
Wages
15,750
Discount Allowed
3,500
Salaries
17,500
Business Expenses
14,000
Advertisement
17,500
Closing sundry debtors 2,62,500
Closing sundry creditors 1,75,000
Closing stock
1,22,500
Closing cash balance
1,64,150
Depreciation to be provided on furniture @ 10%
2. Mr.Baskar keeps his books on incomplete double entry. From the following
details prepare Trading and profit and Loss Account For the year ended 31st March
2006 and Balance sheet as on that date.
Particulars
1.4.2005
31.3.2006
Rs
Rs
Stock
50,000
25,000
Sundry debtors
1,25,000 1,75,000
Cash
12,500
20,000
Furniture
5,000
5,000
Sundry Creditors
75,000
87,500
Other details:
Cash received from debtors
2, 67,500
Cash paid to creditors
Purchases returns
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2, 25,000
2,500
Sales returns
7,500
Discount received
7,500
Discount allowed
5,000
Sundry expenses
17,500
Drawings
20,000
Cash sales
2,500
3. Mr.James maintained his account books on single entry system. On 1.4.2008 his
capital was Rs 3, 50,000
Additional information;
Opening stock
1, 88,000
Cash received from sundry debtors
38,000
Cash sales
1, 50,000
Cash paid to sundry Creditors
45,000
Opening sundry debtors
30,000
Opening Sundry creditors
1, 40,000
Business expenses
90,000
Freehold premises (31.3.2009)
3, 00,000
Furniture (31.3.2009)
15,400
Closing stock
1, 95,000
Closing Sundry debtors
60,000
Closing sundry creditors
1, 50,000
Closing Cash Balance
9,600
Prepare Trading and profit and loss account for the year ended on 31.3.2009 and
Balance sheet as on that date.
4.Raj maintained his books by single entry system .from the following details
prepare Final accounts for the year ending 31.3.2003.Depreciate machinery at 10%
p.a
Cash book
Receipts
Rs
payments
Rs
To Balance b/d
16,000 By Purchases
28,000
To sales
80,000 By Creditors
40,000
To Debtors
60,000 By general Expenses
12,000
By Wages
4,000
By Drawings
16,000
By Balance c/d
56,000
1,56,000
1,56,000
Other Details:
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31.3.2002
Rs
18,000
28,800
20,000
80,000
6,000
31.3.2003
Rs
?
?
32,000
80,000
6,000
Debtors
Creditors
Stock
Machinery
Furniture
Additional details:
Discount allowed
2,800
Discount received
3,400
Credit sales
68,800
Credit purchases
28,200
5.From the following information , prepare Trading and profit and Loss Account
and Balance Sheet as on 31.3.2005
Opening capital Rs 54,000
Particulars as on 31.3.2005
particulars
Rs
Sundry debtors
85,000
Sundry Creditors
37,000
Cash
80,000
Stock
75,000
Furniture
5,000
Computers
35,000
Drawings
12,000
Discount received
3,000
Discount allowed
7,000
Cash paid to suppliers
1,00,000
Cash received from customers 2,00,000
Purchases returns
5,000
Sales Returns
8,000
Salary
10,000
Rent
12,000
Charge depreciation on Furniture & Computers 10%
6.Mr.amy maintains his books under incomplete double entry system. From the
following particulars you are required to prepare Trading and Profit and Loss
account and Balance Sheet as on 231.3.2008
Particulars
1.4.2007
31.3.2008
Rs
Rs
Stock
75,000
37,500
Sundry debtors
1,87,500
2,62,500
Cash
18,750
30,000
Furniture
7,500
7,500
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Sundry Creditors
Other details:
1,12,500
1,31,250
Drawings
30,000
Discount received
11,250
Discount allowed
7,500
Sundry expenses
26,250
Cash paid to creditors
3,37,500
Cash received from debtors
4,01,250
Sales returns
11,250
Purchases Returns
3,750
Cash Sales
3,750
7.Mr.Apoorva commenced business on 1.4.2004 with a capital of Rs 75,000.he
immediately bought Furniture for Rs 12,000 .During the year he borrowed Rs
15,000 from his wife as loan. He has withdrawn Rs 21,600 for his family expenses.
From the following particular you are required to Prepare Trading and Profit and
Loss account and Balance sheet as on 31.3.2005
Cash received from sundry debtors
Cash paid to sundry creditors
Cash sales
Cash purchases
Carriage inwards
Discount allowed
Salaries
Office expenses
Advertisement
Closing Balance of sundry Debtors
Closing balance of sundry Creditors
Closing stock
Closing Cash balance
Provide 10% depreciation on Furniture
1,21,000
1,75,000
1,00,000
40,000
4,500
4,000
5,000
4,000
5,000
75,000
50,000
35,000
43,900
8. From the following details prepare Trading and profit and Loss Account For the
year ended 31st March 2006 and Balance sheet as on that date.
Particulars
1.4.2004
31.3.2005
Rs
Rs
Stock
50,000
25,000
Sundry debtors
1,25,000 1,75,000
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Cash
12,500
Furniture
5,000
Sundry Creditors
75,000
Other details:
Discount received
Discount allowed
Sundry expenses
Cash paid to sundry creditors
Cash received from sundry Debtors
Drawings
Sales Returns
Purchases returns
Charge depreciation on Furniture @ 5%
20,000
5,000
87,500
7,500
5,000
15,000
2,25,000
2,67,500
20,000
7,500
2,500
9.Mr.John maintain his books under incomplete Double entry system. You are
required to Prepare Trading and Profit and Loss account and Balance sheet as on
31.3.2002
.
Particulars
1.4.2001
31.3.2002
Rs
Rs
Stock
75,000
37,500
Machinery
7,500
7,500
Cash
18,750
30,000
Sundry debtors
1,87,500
2,62,500
Sundry Creditors
1,12,500
1,31,250
Other details:
Cash received from debtors
4,05,000
Cash paid to creditors
3,37,500
Sales returns
11,250
Purchases returns
3,750
Discount received
11,250
Discount allowed
7,500
General expenses paid
26,250
Drawings
30,000
10.The books of Mr.Sankar revalued the following information on 1.4.2006
Liabilities
Rs
Assets
Rs
Capital
83,030 Goodwill
18,540
Sundry Creditors
9,010 Furniture
14,010
Sundry Debtors
46,830
Cash at bank
12,660
92,040
92,040
Other information:
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Cash received from sundry Debtors
2,12,460
Drawings
81,600
Salaries paid
18,300
Rent paid
9,450
Cash paid to sundry creditors
90,360
Sundry expenses
3,840
Closing stock (31.3.2007)
32,000
Sundry debtors (31.3.2007)
56,700
Sundry Creditors (31.3.2007)
16,000
Cash at Bank (31.3.2007)
21,570
Prepare Trading account and Profit and Loss account and a Balance sheet as on
that 31.3.2007
11.Mr.Kavibharathi maintain her accounts books on single entry system. On
1.4.2003 her capital was Rs 2,50,000
Additional Information:
Opening stock
1,25,000
Cash received from sundry debtors
25,000
Cash sales
1,00,000
Cash paid to sundry creditors
30,000
Opening sundry debtors
20,000
Opening sundry creditors
91,500
Business expenses
60,400
Freehold premises (31.3.2004)
2,00,000
Furniture (31.3.2004)
3,600
Closing stock
1,30,000
Closing sundry debtors
40,000
Closing sundry creditors
1,00,000
Closing cash balance
27,500
Prepare Trading and profit and Loss account For the year ended on 31.3.2004 and
Balance sheet as on that date.
12.Mr.Arul maintained his account books on single entry system. On 1.4.2005 his
capital was Rs 5,00,000
Opening Stock
2,50,000
Cash received from sundry debtors
50,000
Cash sales
2,00,000
Cash paid to sundry creditors
60,000
Opening sundry debtors
40,000
Opening sundry creditors
1,83,000
Business expenses
1,20,800
Land and Building (31.3.2006)
4,00,000
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Furniture (31.3.2006)
7,200
Closing stock
2,60,000
Closing sundry creditors
2,00,000
Closing Sundry debtors
80,000
Closing cash balance
55,000
Prepare Trading and profit and Loss account For the year ended on 31.3.2006 and
Balance sheet as on that date.
13. From the following details prepare Trading and profit and Loss Account For the
year ended 31st March 2005 and Balance sheet as on that date.
Particulars
1.4.2004
31.3.2005
Rs
Rs
Sundry creditors
37,500
43,750
Furniture
2,500
2,500
Cash
6,250
10,000
Sundry Debtors
62,500
87,500
Stock
25,000
12,500
Other details:
Discount received
3,750
Discount allowed
2,500
Sundry expenses
8,750
Cash paid to sundry creditors
1,12,500
Cash received from sundry Debtors
1,35,000
Drawings
10,000
Sales Returns
3,750
Purchases returns
1,250
Charge depreciation on Furniture @ 5% p.a
14. Mr.X maintain his books under incomplete Double entry system. You are
required to Prepare Trading and Profit and Loss account and Balance sheet as on
31.3.2005
Particulars
Stock
Sundry debtors
Cash
Furniture
Sundry Creditors
Other details:
Discount received
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1.4.2004
Rs
50,000
1,25,000
12,500
5,000
75,000
31.3.2005
Rs
25,000
1,75,000
20,000
5,000
87,500
7,500
Discount allowed
5,000
Sundry expenses
17,500
Cash paid to sundry creditors
2,25,000
Cash received from sundry Debtors
2,67,500
Drawings
20,000
Sales Returns
7,500
Purchases returns
2,500
Cash sales
2,500
15. Mr.Venugopal maintain his books on incomplete double entry .On 1.4.2003 his
capital was Rs 2, 62,500
Additional information:
Opening stock
1,31,250
Closing stock
1,36,500
Opening sundry debtors
21,000
Closing sundry debtors
42,000
Opening sundry creditors
96,075
Closing sundry creditors
1,05,000
Cash received from sundry debtors
26,250
Cash sales
1,05,000
Cash paid to sundry creditors
31,500
Business expenses
63,420
Land and Buildings (31.3.2004)
2,10,000
Furniture (31.3.2004)
3,780
Closing cash balance
28,875
Prepare Trading and profit and Loss account For the year ended on 31.3.2004 and
Balance sheet as on that date.
16.Mr.Sundar keeps his books on incomplete double entry .from the following
details, Prepare trading and profit and Loss account for the year ended 31st March
2004 and balance sheet as on that date:
Particulars
1.4.2003
31.3.2004
Rs
Rs
Stock
1,10,000
55,000
Sundry debtors
2,75,000
3,85,000
Cash
27,500
44,000
Furniture
11,000
11,000
Sundry Creditors
1,65,000
1,92,500
Other details:
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Drawings
Discount received
Discount allowed
Sundry expenses
Cash paid to creditors
Cash received from debtors
Cash sales
44,000
16,500
11,000
38,500
4,95,000
5,88,500
5,500
CHAPTER-3
DEPRECIATION
5 MARKS (Q.NO:40)
1.Find out the rate of Depreciation under straight line method:
Cost of the plant
Installation charges
Expected life in years
Scrap value
Rs 2,30,000
Rs 20,000
10years
Rs 50,000
2.From the following particulars find out the rate of depreciation under straight line
method:
Cost of fixed assets Rs 20,000
Residual value
Rs 2,000
Expected life 10 Years
3.M/S Vikram & co purchased a plant for Rs 5,00,000 Depreciation is to be provided
annually according to the straight line method. The useful life of the plant is 10 years and
the residual value is Rs 50,000.Find out the rate of depreciation
4.A Machine was bought for Rs 2,00,000 on 1.1.2000.This is expected to last for five years
Estimated scrap at the end of five years is Rs 40,000.Find out the rate of Depreciation
under straight line method.
5.A machine was purchased for Rs 3,00,000 on 1.4.2005.This is expected to last 10 years
.Estimated scrap at the end of 10 years Rs 30,000.Find out the rate of Depreciation under
straight line method.
6.From the following information find out the rate of depreciation under straight line
method
Cost of the plant
Rs 2,10,000
Installation charges Rs 40,000
Expected life in years
Rs 10years
Scrap value
Rs 50,000
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7.rakshitha Ltd purchased Plant and machinery for Rs 32,000.this is expected to last for 10
years. Estimated scarp value is Rs 3,200. Find out the rate of depreciation under straight
line method.
8.A company purchased machinery for Rs 1,00,000 its installation costs amounted to Rs
10,000.Its estimated life 5 years and the scarp value is Rs 5,000.calculate the amount and
rate of depreciation under straight line method.
9.Vasanth & co purchased a machine for Rs 1,25,000 its useful life is 10 years and the scrap
value is Rs 25,000.Determine the rate of depreciation under the straight line method
10.From the following particulars find out the rate of depreciation under straight line
method.
Cost of fixed asset Rs 50,000
Residual value Rs 5,000
Estimated life 10 years
11.From the following particulars find out the rate of depreciation under straight line
method.
Cost of assets Rs 82,000
Installation charges Rs 6,000
Scrap value Rs 8,000
Expected life in years 10 Years
12.Find out the rate of depreciation under straight line method
Cost of plant Rs 1,30,000
Installation charges Rs 20,000
Expected life in year 10 years
Scrap value Rs 30,000
13. Find out the rate of depreciation under straight line method
Cost of plant Rs 4,60,000
Installation charges Rs 40,000
Expected life in year 10 years
Scrap value Rs 1,00,000
14.Gokul & co purchased a machinery for Rs 48,000 Its useful life 10 years and the scrap
value is Rs 4,800.determine the rate of depreciation under the straight line method.
15. M/S Victory & co purchased a plant for Rs 5,00,000 Depreciation is to be provided
annually according to the straight line method. The useful life of the plant is 10 years and
the residual value is Rs 50,000.Find out the rate of depreciation
16.A limited company purchased a machine for Rs 12,000 Its useful life 10 years and the
scrap value is Rs 1,200 Find out the amount of Depreciation and rate of depreciation under
the straight line method
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17.A company purchased a machine for Rs 15,00,000 Its useful life is 10 years and the scrap
value is Rs 3,00,000 .determine the rate of depreciation under the straight line method
18. From the following particulars find out the rate of depreciation under straight line
method.
Cost of assets Rs 10,00,000
Scrap value Rs 50,000
Expected life in years 10 Years
12 MARKS (Q.NO:49)
1.On 1.10.2000 a company purchased a plant for Rs 6,00,000 .They spend Rs 40,000 on its
erection The firm writes off Depreciation at the rate of 20% on Reducing Balance method.
The books are closed on 31st March every year. Prepare Plant account and Depreciation
account
2.Prakash Limited Company purchased a machine for Rs 3,00,000 on 1.4.2006.After having
used it for three year , it was sold for Rs 2,30,000.Depreciation is to be provided at 10% p.a
on straight line method. Accounts are closed on 31st March every year.
Prepare machinery account and Depreciation account
3.Arul & co purchased a machinery for Rs 5,00,000 on 1.4.2005.after having used it for
three years, it was sold for Rs 3,50,000 Depreciation is to provided at 10% p.a under
Diminishing Balance method. Accounts are closed on 31st March of every year
Prepare Machinery account and Depreciation account.
4.M& co bought a plant for Rs 4,70,000 on 1.7.2001.They spend Rs 30,000 on repairs and
installed the plant. Depreciation is Written off at 10%p.a on the straight line method. On
30.9.2003 this was sold for Rs 3,50,000. Accounts are closed on 31st March of every year
Prepare Plant account and Depreciation account
5.A firm purchased a machinery for Rs 4,60,000 on 1st July 2004.It spend Rs 40,000 on the
repairs and installed the machinery .Depreciation is written off at 10% p.a. On diminishing
balance method. after three years the machinery was found to be unsuitable and sold for Rs
4,10,000.
Prepare machinery account and Depreciation account for three years, assuming that the
accounts are closed on 31st March every years.
6.Jayalakshmi limited Company purchased a machinery for Rs 5,00,000 on 1st July 2006.It
is depreciated at 10% per annum on straight line method. Having became obsolete it was
sold for Rs 3,80,000 on 31.3.2009
7.Amritha &co Purchased a Machinery for Rs 64,000 on 1st April 1996.They spend Rs
28,000 on the repairs and installed the same. depreciation is written off at 10% p.a on the
straight line method.On 30th June 1998 the machinery was found to be unsuitable and sold
for Rs 61,000.assume that the accounts are closed on 31st December every year.
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Prepare machinery Account and Depreciation account for the three years
8.Nivetha manufacturing Company purchased on 1st April 2006 machinery for Rs 2,90,000
and spend Rs 10,000 on its installation .after having used it for three years it was sold for
Rs 2,00,000 .depreciation is to be provided every year at the rate of 15% p.a on the Fixed
installation method. Assuming that the financial year closes on March 31st For the first
three years pass the necessary accounts.
9.Balaji Ltd purchased a machinery for Rs 3,00,000 on 1st October 2001.It is depreciated at
10% p.a On straight line method. Having became obsolete it was sold for Rs 2,00,000 on
31.3.2004
Prepare machinery account and Depreciation account for three years. Accounts are closed
on 31st March every year
10.Parasuram company purchased on 1st April 2004 machinery for Rs 1,00,000.After having
used it for three years it was sold for Rs 85,000.depreciation is to be provided every year at
the rate of 10% per annum on fixed installment method. Books are closed on 31st March
every year. Prepare machinery account and Depreciation account for three years.
11.Sri & co Purchased a machinery worth Rs 3,00,000 on 1st October 2002.They spent Rs
20,000 on its erection. The firm writes off depreciation at the rate of 10% on the straight
line method. The books are closed on 31st March every year.
Prepare Machinery account and Depreciation account for first three years.
12.Sakthi Ltd purchased a machine for Rs 2,00,000 on 1.4.2002.after having used it for
three years, it was sold for Rs 1,45,000.Depreciation is to be provided at 10% per annum.
On straight line method. Accounts are closed on 31st March every year.
Prepare Machinery account and Depreciation account for three years.
13.A garment company purchased a plant on 1st April 2001 for Rs 2,00,000.after having
used it for three years it was sold for Rs 1,60,000.Depreciation is to be provided at 10% p.a
On fixed installment method. Accounts are closed on 31st March every year.
Prepare Plant account and Depreciation account for first three years.
14.On 1.4.2001 a Machinery was purchased for Rs 4,00,000 .On 1.10.02 a new machine
costing Rs 2,40,000 was purchased .On 30.9.2003 the machinery purchased on 1.4.2001
having became obsolete was sold Rs 2,40,000 the accounting years ends on 31st March
every year and depreciation is to be provided At 10% p.a on straight line method. Prepare
machinery account and Depreciation account for 3 years.
15.Tata Ltd purchased a machinery for Rs 1,00,000 on 1.1.2003 On 30.6.2004 another
machinery was purchased for Rs 70,000v on 30th September 2005 the first machinery was
sold for Rs 57,000.depreciation is to be provided at 10% p.a on straight line method .The
accounts are closed on 31st December every year.
Prepare Machinery account and Depreciation account for first three years.
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16.Ramulu Ltd Purchased a machine for Rs 3,75,000 on 1st July 2002 It is depreciated at
20% p.a on straight line method for three years .having became obsolete it was sold for Rs
75,000 on 31.3.2005.
Prepare Machinery account and Depreciation account for first three years. Accounts are
closed on 31st March every year.
17.A Company purchased a machine for Rs 4,00,000 on 1.4.2001 .after having used it for
three years it was sold for Rs 2,60,000.depreciation is to be provided at 105 p.a on straight
line method. Accounts are closed on 31st march of every year.
Show the calculation of profit or loss on sale of the machine .Prepare machinery .Prepare
machinery account and depreciation account.
18.A company purchased a machinery for Rs 5,00,000 on 1.4.2001 on 1.10.2002 another
machinery was purchased for Rs 3,00,000.depreciation is to be provided at 10% p.a under
Diminishing Balance method .accounts are closed on 31st March of every year. Prepare
machinery .Prepare machinery account and depreciation account.
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CHAPTER-4
RATIO ANALYSIS
5 MARKS(Q.no:41)
1.Calculate stock Turn over ratio:
Opening stock
Rs 15,000
Closing stock
Rs 25,000
Purchases
Rs 60,000
2.From the following information calculate Debt equity Ratio:
Debentures
Rs 2,00,000
Loan from Banks
Rs 1,00,000
Equity share capital Rs 1,25,000
Reserves
Rs 25,000
3.From the following information calculate Capital turn over ratio:
Sales
Rs 3,75,000
Sales Returns
Rs 25,000
Equity share capital
Rs 1,00,000
Long term loan
Rs 50,000
Reserves
Rs 25,000
4.Compute Debtors turn over ratio
Total sales
Rs 7,50,000
Sales returns
Rs 50,000
Opening debtors
Rs 1,17,000
Closing debtors
Rs 83,000
5.Calculate capital Turn over ratio:
Sales
Rs 10,20,000
Sales returns
Rs 20,000
Equity share capital
Rs 1,00,000
Preference Share capital
Rs
50,000
Loans
Rs
25,000
Reserves
Rs
25,000
6.Calculate Fixed assets Turnover ratio:
Sales
Rs 6,00,000
Sales returns Rs 2,00,000
Fixed assets Rs 2,00,000
7.From the following information determine the stock Turnover ratio
Opening stock
Rs 40,000
Closing stock
Rs 30,000
Purchases
Rs 95,000
8.From the following information calculate Debts equity ratio:
Equity share capital Rs 3,00,000
Loan from banks
Rs 2,00,000
6% Debentures
Rs 5,00,000
Reserves
Rs 50,000
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9.Calculate Liquid Ratio
Current assets
Rs 20,000
Stock
Rs 3,000
Prepaid Expenses
Rs 1,000
Current liabilities Rs 8,000
10.Calculate creditors turnover ratio from the following:
Credit purchases
Rs 1,50,000
Opening creditors
Rs 36,000
Closing creditors
RS 24,000
11.From the following information calculate capital turnover ratio
Sales
Rs 6,20,000
Equity share capital Rs 1,00,000
Sales returns
Rs 20,000
Loans
Rs 50,000
Reserves
Rs 50,000
12.Calculate stock turnover ratio from the following
Cost of goods sold
Rs 13,50,000
Stock at the beginning of the year Rs 2,00,000
Stock at the end of the year
Rs 2,50,000
13.calculate the Capital turn over ratio from the following information:
Cash sales
Rs 4,00,000
Credit sales
Rs 3,50,000
Sales return
Rs 50,000
Equity share capital Rs 2,00,000
Long term loan
Rs 1,00,000
Reserves
Rs 50,000
14.Calculate Capital turnover ratio from the following information:
Cash sales
RS 2,00,000
Credit sales
Rs 1,75,000
Sales return
Rs 25,000
Equity share capital Rs 1,00,000
Long term loans
Rs 50,000
Reserves
Rs 25,000
15.From the following information calculate Debt equity ratio:
Debentures
Rs 2,00,000
Reserves
Rs 25,000
Long term loans
Rs 1,00,000
Equity share capital Rs 1,25,000
16.From the following particulars Calculate Stock turnover ratio:
Cost of goods sold
Rs 13,50,000
Opening stock
Rs 2,00,000
Closing stock
Rs 2,50,000
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17.Calculate Fixed assets turnover ratio from the following:
Cash sales
Rs 6,50,000
Credit sales Rs 4,00,000
Sales returns Rs 2,50,000
Fixed assets Rs 2,20,000
Depreciation Rs 20,000
12 MARKS (Q. No : 50)
1.From the following information calculate Operating profit ratio, Operating ratio , Gross
Profit ratio , Net profit Ratio
Sales
Rs 1,00,000
Dividend Received
Rs
400
Gross profit
Rs 30,000
Net profit
Rs 26,000
Administration Expenses Rs
1,000
Selling Expenses
Rs
2,000
Loss on sale investments
Rs
800
2.From the following details Calculate Current ratio Liquid Ratio and absolute Liquid Ratio
Cash
Rs 5,000
Debtors
Rs 29,000
Bills Receivable
RS 5,000
Short term investment
Rs 15,000
Stock
Rs 52,000
Creditors
Rs 30,000
Bank overdraft
Rs 14,000
Prepaid Expenses
Rs 2,000
Bills payable
Rs 10,000
3.From the following details calculate gross profit ratio and net profit ratio and stock turn
over ratio
Sales
Rs 1,50,000
Cost of goods sold
Rs 1,20,000
Closing stock
Rs 31,000
Opening stock
Rs 29,000
Net profit
Rs 15,000
4.Calculate current Ratio and proprietory ratio from the balance sheet
Balance sheet
Liabilities
Rs
Assets
Rs
Share capital
2,00,000 Fixed assets
1,00,000
Reserves
50,000 Current assets
2,00,000
Bank overdraft
70,000 Investment (long term)
30,000
Other current liabilities
30,000 Preliminary expenses
10,000
Goodwill
10,000
3,50,000
3,50,000
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5.From the following calculate Gross profit , Net profit and Operating profit ratio
Sales
Rs 1,00,000
Selling Expenses
Rs 2,000
Dividend Received Rs
400
Loss on sale investments
Rs 800
Gross profit
Rs 30,000
Net profit
Rs 26,600
Administration Expenses Rs 1,000
6.From the following details calculate gross profit ratio, Stock turn over ratio and Net profit
ratio
Sales
Rs 3,00,000
Closing stock
Rs 60,000
Cost of goods sold
Rs 2,10,000
Net profit
Rs 60,000
Opening stock
Rs 80,000
7.From the following calculate Liquidity ratios:
Liabilities
Rs
Assets
Rs
Share capital
6,300 Fixed assets
5,100
Reserves
1,200 Stock
2,400
Bank overdraft
660 Debtors
660
Creditors
1,740 Cash
1,740
9,900
9,900
8.From the given data calculate gross profit ratio , Net profit Ratio, Current ratio
Sales
Rs 3,00,000
Current liabilities Rs 30,000
Net profit
Rs 30,000
Cost of goods sold
Rs 2,40,000
Current assets
Rs 60,000
9.From the following details calculate Gross profit ratio , Stock turnover ratio, Debtors turn
over ratio
Sales
Rs 3,00,000
Cost of goods sold
Rs 2,40,000
Opening stock
Rs 53,000
Closing Stock
Rs 62,000
Debtors
Rs 30,000
10.From the following information calculate Current ratio , Liquid ratio and absolute
liquid ratio
Cash
Rs 2,400
Debtors
Rs 13,600
Stock
Rs 18,000
Bills payable
RS 3,000
Bank overdraft
Rs 9,000
Creditors
Rs 5,000
11.From the following details calculate Gross profit and Net profit and Stock turn over
ratio
Sales
Rs 1,50,000
Closing stock
Rs 31,000
Cost of goods sold
Rs 1,20,000
Debtors
Rs 15,000
Opening stock
Rs 29,000
Administration expenses
Rs 15,000
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12.From the Following details Calculate Current ratio .Liquid ratio and Absolute liquid
ratio
Cash
Rs 12,000
Debtors
Rs 1,04,000
Bill Receivable
Rs20,000
Bank overdraft
Rs 6,000
Stock
Rs 44,000
Short term investment Rs 40,000
Creditors
Rs 92,000
Bills payable
Rs 12,000
13.From the following calculate Gross profit , Net profit and operating profit ratio:
Gross profit
Rs 60,000
Sales
Rs 2,00,000
Administration Expenses Rs 2,000
Selling expenses
Rs 4,000
Loss on sale of Investment Rs 1,600
Dividend Received
Rs
800
Net profit
Rs 53,200
14.kevin Ltd provided the following information for year ending 31.3.2004.calculate Net
profit ratio .Operating profit ratio and operating ratio
Sales
Rs 2,00,000
Office expenses
Rs 6,000
Finance expenses
Rs 3,000
Interest received
Rs 500
Gross profit
Rs 80,000
Selling expenses
Rs 4,000
Loss on sale of plant
Rs 400
Net profit
Rs 67,100
15.From the following calculate Gross profit ,net profit and Operating profit ratio
Sales
Rs 1,00,000
Dividend Received
Rs 400
Gross profit
Rs 30,000
Administration Expenses Rs 1,000
Selling Expenses
Rs 2,000
Loss on sale investments
Rs 800
Net profit
Rs 26,600
16.From the following you are required to calculate current ratio, Liquid ratio and absolute
liquid Ratio:
Debtors
Rs 5,000
Creditors
Rs 1,000
Cash
Rs 4,000
Bills payable
Rs 3,000
Bank
Rs 6,000
Outstanding expenses
Rs 250
Short term investment Rs 2,000
Bills receivable
Rs 3,000
Prepaid expenses
Rs 1,000
Closing stock
Rs 8,000
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17.From the following calculate gross profit ratio, net profit ratio, Current ratio
Sales
Rs 3,00,000
Cost of goods sold
Rs 2,10,000
Net profit
Rs 45,000
Current assets
Rs 60,000
Current Liabilities
Rs 30,000
18.From the following calculate gross profit , Net profit and operating profit ratio
Sales
Rs 8,00,000
Office expenses
Rs 50,000
Financial Expenses
Rs 20,000
Interest received
Rs 10,000
Gross profit
Rs 3, 20,000
Selling expenses
Rs 70,000
Loss on sale of machinery Rs 1, 60,000
20 MARKS(Q.No.55)
1.From the following balance sheet of J ltd calculate Current ratio ,Liquid Ratio, Debt equity ratio,
proprietory Ratio
Balance sheet Of J Ltd as on 31.3.2004
Liabilities
Rs
Assets
Rs
Share capital
20,000 Goodwill
12,000
Reserves
10,000 Fixed assets
28,000
Loans
20,000 Stock
10,000
Creditors
6,000 Debtors
2,000
Bank overdraft
4,000 Bills receivable
2,000
Cash
6,000
60,000
60,000
2.From the Trading and profit and loss account of surya Ltd.Company ascertain.
a]Gross profit ratio b]Net profit ratio
c]Operating ratio
d]Operating profit ratio
Dr Trading and profit and los account for the year ending 31.3.2005
Cr
particulars
Rs
Particulars
Rs
To opening stock
35,000 By sales
4,00,000
To purchases
2,25,000 By Closing stock
50,000
To wages
10,000
To Gross profit
1,80,000
4,50,000
4,50,000
To Administration
Expenses
To interest
To Loss on sale of
Machinery
To selling Expenses
To Net profit
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By Gross profit
10,000 By Dividend
5,000
2,000
10,000
1,55,000
1,82,000
1,80,000
2,000
1,82,000
3.From the following Balance Sheet Calculate a]Current ratio b]Liquid Ratio
Ratio d] Proprietory Ratio
Liabilities
Rs
Assets
Rs
Equity share capital
1,00,000 Machinery
90,000
Preference share capital
25,000 Furniture
30,000
Reserve
25,000 Stock
20,000
Debentures
35,000 Sundry Debtors
35,000
Creditors
15,000 Cash
10,000
Bank overdraft
20,000 Bills Receivable
5,000
Bills payable
5,000 Short term investment
10,000
Goodwill
25,000
2,25,000
2,25,000
c]absolute Liquid
4.From the following Balance sheet calculate
a]Current ratio
b]Liquid ratio c]absolute Liquid
Ratio d]Debtors and creditors turnover ratio
Liabilities
Rs
Assets
Rs
Equity share capital
55,000 Land & Building
20,000
Preference share capital
15,000 Plant & Machinery
22,000
General reserve
25,000 Furniture
3,000
Debentures
35,000 Stock
47,000
Bills payable
3,000 Bills Receivable
10,000
Bank overdraft
3,000 Debtors
23,000
Creditors
8,000 Short Term Investment
5,000
Outstanding Expenses
6,000 Prepaid expenses
1,000
Cash
19,000
1,50,000
1,50,000
Additional Information:
Credit sales Rs 1,65,000
Credit Purchases Rs 44,000
5.Calculate a]Current ratio b]Liquid Ratio
Liabilities
Rs
Assets
Share capital
1,40,000 Fixed assets
Reserves
10,000 Stock
Loans
75,000 Sundry Debtors
Creditors
50,000 Bills receivable
Bank overdraft
10,000 Cash
Goodwill
2,85,000
c]Debt equity ratio
Rs
1,30,000
30,000
60,000
20,000
10,000
35,000
2,85,000
d]proprietory ratio
6. From the following calculate Gross profit , Net profit and Operating profit ratio
Sales
Rs 1,00,000
Dividend Received
Rs 400
Gross profit
Rs 30,000
Administration Expenses Rs 1,000
Selling Expenses
Rs 2,000
Loss on sale investments
Rs 800
Net profit
Rs 26,600
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7.From the following Balance sheet Calculate the i]Current ratio
ii] Liquid ratio
iii]Absolute liquid ratio
iv] proprietory ratio
Balance sheet as on 31st March 2006
Liabilities
Rs
Assets
Rs
Equity share capital
2,00,000 Machinery
1,80,000
Preference share capital
50,000 Furniture
60,000
Reserves
50,000 Stock
40,000
Debentures
70,000 Sundry Debtors
70,000
Creditors
40,000 Cash
20,000
Bank overdraft
30,000 Bills receivable
10,000
Bills payable
10,000 Short term investment
20,000
Goodwill
50,000
4,50,000
4,50,000
8.From the following Balance sheet of Sujata Industries Ltd Calculate a]Debt equity ratio
b]proprietory Ratio c]Current ratio
d]Fixed asset ratio
Balance sheet as on 31.3.2006
Liabilities
Rs
Assets
Rs
Share capital
1,00,000 Fixed assets
1,00,000
General Reserve
20,000 Current assets
1,00,000
Debentures
30,000
Current liabilities
50,000
2,00,000
2,00,000
Credit Sales Rs 4,00,000
9.From the following Balance sheet Calculate i]Current ratio ii]Liquid ratio iii]Debt-equity ratio
iv]proprietory ratio
Balance sheet of Vasumathi Ltd as on 31.3.2004
Liabilities
Rs
Assets
Rs
Share capital
20,000 Goodwill
8,000
Reserves
10,000 Fixed assets
32,000
Loans
16,000 Stock
7,000
Debentures
8,000 Debtors
9,000
Creditors
10,000 Bills receivable
5,000
Bank overdraft
4,000 Cash
7,000
68,000
68,000
10.From the following Balance sheet Calculate i]Current ratio
iii]Debt-equity ratio iv]proprietory ratio
Balance sheet as on 31.3.2005
Liabilities
Rs
Assets
Rs
Share capital
2,00,000 Land & Buildings
1,40,000
Reserves
40,000 Plant & Machinery
80,000
6% Debentures
60,000 Furniture
20,000
Sundry Creditors
75,000 Stock
40,000
Bills payable
25,000 Bills Receivable
30,000
Sundry Debtors
80,000
Cash
10,000
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ii]Fixed asset turn over ratio
4,00,000
4,00,000
Additional information: Sales for the year Rs 4,80,000
11.From the following Balance sheet calculate Debtors turn over ratio and Creditor turn over ratio
and Fixed asset turn over ratio
Balance sheet as on 31.3.2004
Liabilities
Rs
Assets
Rs
Share capital
4,00,000 Land & Buildings
3,00,000
Reserves
2,40,000 Plant & machinery 1,60,000
Creditors
2,60,000 Stock
2,96,000
6% Debentures
60,000 Debtors
1,42,000
Cash
62,000
9,60,000
9,60,000
Additional information;
Credit purchases during the year Rs 10,40,000
Credit sales during the year Rs 4,26,000
12. From the following Balance sheet Calculate i]Current ratio
iii]Debt-equity ratio iv]proprietory ratio
Balance sheet as on 31.3.2005
Liabilities
Rs
Assets
Rs
Share Capital
2,00,000 Land & Buildings
1,40,000
General Reserve
40,000 Plant & Machinery 1,00,000
Debentures
60,000 Stock
80,000
Creditors
60,000 Debtors
60,000
Bank overdraft
40,000 Bills receivable
20,000
4,00,000
4,00,000
Additional information: Credit Sales for the year Rs 9,60,000
ii]Fixed asset turn over ratio
13.From The following Trading And profit & loss Account of a company ascertain the following ratios
a]Gross profit ratio b[Net profit ratio
c] Operating Ratio d]Stock turn over ratio
Trading and profit and los account of J.J.D & Co for the year ending 31.3.2005
Dr
Cr
particulars
Rs
Particulars
Rs
To opening stock
1,99,000 By sales
17,00,000
To purchases
11,19,000 By Closing stock
2,98,000
To Gross profit
6,80,000
19,98,000
19,98,000
To Administration Expenses
To selling Expenses
To Financial Expenses
To Loss on sale of Plant
To Net profit
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3,00,000 By Gross profit
60,000 By Dividend
30,000
8,000
3,00,000
6,98,000
6,80,000
18,000
6,98,000
14.From the following Trading and Profit & loss account and The Balance Sheet find out the
Following ratios
a]Gross profit ratio b[Net profit ratio
c] Acid test ratio
d]Stock turn over
ratio
Trading and Profit and Loss account for the year ending 31.12.2005
Particulars
Rs
Particulars
Rs
To Opening stock
10,000 By sales
1,00,000
To Purchases
50,000 By Closing Stock
15,000
To Direct Expenses
5,000
To Gross profit
50,000
1,15,000
1,15,000
To Administration Expenses
By
Gross
profit
15,000
50,000
To Interest
3,000
To Selling Expenses
12,000
To Net profit
20,000
50,000
50,000
Balance sheet as on 31.12.2005
Liabilities
Rs
Assets
Rs
Capital
1,00,000 Land & Buildings
50,000
Current Liabilities
40,000 Plant & Machinery
30,000
Profit and Loss A/C
20,000 Furniture
20,000
Stock
15,000
Sundry Debtors
15,000
Bills Receivable
12,500
Cash in Hand
17,500
1,60,000
1,60,000
15.From the following Balance sheet calculate i] Current ratio ii]Liquid ratio iii]Absolute liquid ratio
iv]Debt equity ratio
Balance sheet as on 31st March 2005
Liabilities
Rs
Assets
Rs
Equity share capital
1,25,000 Machinery
2,75,000
Reserves
25,000 Furniture
1,00,000
Debentures
2,00,000 Stock
37,500
Long term loan
1,00,000 Sundry Debtors
63,500
Sundry Creditors
25,000 Cash
10,000
Bills payable
30,000 Bills Receivable
9,000
Bank overdraft
20,000 Short term Investment
30,000
5,25,000
5,25,000
16. From the following Balance sheet calculate i] Current ratio ii]Liquid ratio iii]Proprietory
iv]Debt equity ratio
Balance sheet as on 31st March 2005
Liabilities
Rs
Assets
Rs
Share capital
70,000 Fixed Assets
65,000
Reserves
5,000 Stock
15,000
Loans
37,500 Sundry Debtors
30,000
Creditors
25,000 Bills receivable
10,000
Bank overdraft
5,000 Cash
5,000
Goodwill
17,500
1,42,500
1,42,500
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CHAPTER-5
CASH BUDGET
5 MARKS(Q.No 42 )
1.The opening balance of Cash on 1.4.2009 was Rs 50,000 .estimated receipts during the month were
Rs 80,000 and the estimated payments for the month were Rs 1,00,000 .determine the closing balance
on 30.4.2009
2.The opening balance of cash in January 2002 is Rs 1,50,000.The estimated cash receipts are Rs
50,000 and the estimated cash payments are Rs 30,000 .What is the opening balance of cash in
February 2002 ?
3.From the following information prepare cash budget for June 2005
Particular
Amount
Rs
Cash in hand (1.6.2005)
10,000
Cash purchases-June 2005
70,000
Cash sales-June 2005
Purchases of furniture-June 2005
1,00,000
2,500
4.The opening balance of Cash In January 2007 Is Rs 90,000.The estimated receipts are Rs 1,40,000
and the estimated payments are Rs 1,00,000.Find out the closing balance of cash For January
2007
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20 Marks (Q.no 56)
1.Prepare a cash Budget for October ,November and December 2004 from the following information:
Month
Sales
Purchases
Expenses
Rs
Rs
Rs
September 2004
10,00,000
8,00,000
1,10,000
October 2004
12,00,000
12,00,000
1,30,000
November 2004
14,00,000
8,00,000
1,50,000
December 2004
16,00,000
10,00,000
1,70,000
Additional information:
1.All sales are for cash
2.The period of credit allowed by the suppliers is one month
3.Lag in payments fro expenses is one month
4.Opening balance of cash on 1.10.2004 is Rs 90,000
5.In December an asset of Rs 4,00,000 is to be bought.
2.Prepare cash budget for the month of March, April and May 2009 from the following information:
Month
Credit Sales Credit Purchases
Office Expenses
Rs
Rs
Rs
January
50,000
30,000
5,000
February
75,000
40,000
7,000
March
1,00,000
65,000
15,000
April
1,25,000
75,000
10,000
May
1,30,000
80,000
20,000
Additional information:
1.Opening cash balance in March 2009 Rs 60,000
2.Period of credit allowed to customers-one month
3.period of credit allowed by suppliers –two month
4.Office expenses are payable in the same month.
5.Dividend Rs 15,000 is receivable in March 2009
3.From the following information prepare a cash budget for June, July and August 2009
Month
Credit Sales Credit Purchases
wages
Rs
Rs
Rs
April 2009
2,50,000
1,80,000
25,000
May 2009
2,65,000
1,25,000
10,000
June 2009
3,25,000
1,75,000
25,000
July 2009
3,75,000
1,90,000
15,000
August 2009
3,50,000
2,25,000
20,000
Additional information:
1.Opening cash balance on 1st June 2009 Rs 1,20,000
2.period of Credit allowed to customer-one month
3.period of credit allowed by suppliers –two month
4.lag in payment of wages is one month
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5.sale of machinery Rs 40,000 in July
4.Prepare a cash budget for the months of March, April and may 2005 from the following information:
Month
Credit Sales Credit Purchases
Administration and
Rs
Rs
selling expenses
Rs
January 2005
1,50,000
75,000
1,20,000
February 2005
1,35,000
1,00,000
1,35,000
March 2005
1,75,000
85,000
65,000
April 2005
1,20,000
1,25,000
70,000
May 2005
1,40,000
90,000
80,000
Additional information:
1.Expected cash balance on 1.3.2005 is Rs 80,000
2.Suppliers allowed a credit period of two months
3.A credit period of one month is allowed to customers
4.Expenses are paid in the same month
5.Sale of fixed assets Rs 25,000 in April
6.Purchases of fixed assets in May Rs 25,000
5.Prepare a cash budget for the month of March .April and May 2006 from the following information:
Month
Credit Sales Credit Purchases
Expenses
Rs
Rs
Rs
January 2006
2,50,000
2,00,000
50,000
February 2006
3,00,000
3,50,000
60,000
March 2006
4,50,000
3,00,000
70,000
April 2006
2,00,000
4,00,000
80,000
May 2006
3,50,000
5,00,000
70,000
Additional information:
1.Expected cash balance as on 1.3.2006 Rs 75,000
2.Suppliers allowed credit of two months
3.Credit of two months is allowed to the customers
4.lag in payment of expenses one month
5.Sale of fixed assets in the month of April Rs 95,000
6.From the following information , prepare a cash budget for the month of March, April and May 2008
Month
Credit Sales Credit Purchases Office Expenses
Rs
Rs
Rs
January 2008
60,000
40,000
12,000
February 2008
70,000
30,000
10,000
March 2008
80,000
35,000
9,000
April 2008
75,000
50,000
12,000
May 2008
72,000
55,000
11,000
Additional information:
1.Opening balance of cash on 1.3.2008 is Rs 15,000
2.Credit allowed by suppliers is two months
3.Credit allowed to customers is one month
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4.Office expenses are payable in the same month
5.Interest payable in April Rs 3,500
7.Prepare a cash budget for the month of august and September 2004 from the following information:
Month
Cash sales Credit Sales Credit Purchases
wages
Selling
Rs
Rs
Rs
Rs
expenses
Rs
June 2004
75,000
1,87,000
1,24,800
12,000
8,600
July 2004
60,000
1,92,000
1,83,600
14,000
4,800
August 2004
50,000
1,94,000
1,46,000
11,000
6,600
September 2004
45,000
1,26,000
1,73,400
10,000
7,500
Additional information:
1.Suppliers allowed two months credit
2.Customers were given one month credit
3.Wages are payable in the same month and delay in payment of selling expenses was one
month
4.Commission receivable Rs 11,000 in august
5.estimated cash balance as on 1st august Rs 9,100
8. From the following information prepare a cash budget for June, July and August 2006
Month
Credit Sales Credit Purchases
wages
Rs
Rs
Rs
April 2006
2,25,000
1,60,000
20,000
May 2006
2,55,000
1,05,000
15,000
June 2006
3,00,000
1,50,000
18,000
July 2006
3,60,000
1,70,000
12,000
August 2006
3,15,000
2,10,000
14,000
Additional information:
1.Opening cash balance on 1st June 2006 Rs 2,00,000
2.Period of Credit allowed to customer-one month
3.Period of credit allowed by suppliers –two month
4.lag in payment of wages is one month
5.Sale of Machinery Rs 50,000 in July
6.Commission payable in August is Rs 20,000
9.Prepare cash Budget for the month Of June ,July and August 2007 From the following information
1.Opening cash balance in June Rs 7,000
2.Cash sales for June Rs 20,000:July Rs 30,000: And August Rs 40,000
3.Wages payable Rs 6,000 every month
4.Interest receivable Rs 500 in the month of august
5.Purchases of Furniture for Rs 16,000 in July
6.Ccash purchases for June Rs 10,000: July Rs 9,000 and August Rs 14,000
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10. Prepare a cash budget of Balachandar Ltd for the month of January to March 2004 from the
following information:
Month
Credit Sales Credit Purchases
Expenses
Rs
Rs
Rs
2003
November
2,50,000
2,00,000
50,000
December
3,00,000
3,50,000
60,000
2004
January
4,50,000
3,00,000
70,000
February
2,00,000
4,00,000
80,000
March
3,50,000
5,00,000
70,000
Additional information:
1.Expected cash balance as on 1.1.2004 Rs 75,000
2.Suppliers allowed credit of two months
3.Credit of two months is allowed to the customers
4.lag in payment of expenses one month
5.Sale of fixed assets in the month of February Rs 95,000
11.prepare cash Budget for the month of April ,May and June 2006 from the following information
Month
Sales
Purchases
Expenses
Rs
Rs
Rs
March 2006
4,00,000
3,00,000
40,000
April 2006
5,00,000
5,00,000
60,000
May 2006
6,00,000
3,00,000
70,000
June 2006
8,00,000
5,00,000
90,000
Additional information:
1.All sales are for cash
2.Lag in payment of expenses is one month
3.The period of credit allowed by the suppliers is one month
4.Interest receivable is Rs 10,000 in the month of April 2006
5.In June 2006 Furniture For Rs 20,000 is to be purchased
6.Opening cash balance On 1st April 2006 is Rs 60,000
12.Prepare cash Budget for the months of June .July and August 2004 from the following information:
1.Opening cash balance in June Rs 21,000
2.Cash sales for June Rs 60,000:July Rs 90,000:and August Rs 1,20,000
3.Wages payable Rs 18,000 every month
4.Interest receivable Rs 1,500 in the month of August
5.Purchases Of machinery For Rs 48,000 in July
6.Cash purchases for June Rs 30,000:July Rs 27,000:August Rs 42,000
13.From the following information prepare a cash Budget for three months from October 2003
1.Opening cash balance in October Rs 6,000
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2.Cash sales :October Rs 50,000:November Rs 40,000:December Rs 30,000
3.Credit purchases :September Rs 20,000:October Rs 24,000:November Rs 28,000:December Rs
32,000
The period of credit allowed by suppliers is one month
4.Dividend to be received in December Rs 8,000
5.Sale of an old assets for Rs 24,000 during November
14. Prepare cash Budget for the months of June .July and August 20045from the following
information:
1.Opening cash balance in June Rs 1,00,000
2.Cash sales for June Rs 60,000:July Rs 80,000:and August Rs 1,00,000
3.Wages payable Rs 15,000 every month
4.Interest receivable Rs 5,000 in the month of July
5.Purchases Of machinery For Rs 25,000 in the month of August
6.Cash purchases for June Rs 25,000:July Rs 40,000:August Rs 30,000
15. Prepare cash budget for the month of March, April and May 2005 from the following information:
Month
Credit Sales Credit Purchases
Office Expenses
Rs
Rs
Rs
January
75,000
20,000
7,000
February
85,000
35,000
10,000
March
1,00,000
17,000
12,000
April
1,20,000
24,000
9,000
May
1,05,000
22,000
10,000
Additional information:
1.Opening cash balance in March 2005 Rs 50,000
2.Period of credit allowed to customers-one month
3.Period of credit allowed by suppliers –two month
4.Office expenses are payable in the same month.
5.Dividend Rs 10,000 is receivable in March 2005
6.Furniture Rs 15,000 is to be purchased in May 2005
CHAPTER-6
PARTNERSHIP-BASIC CONCEPT
5 MARK Q.NO 42
1.Three years purchases of the last four years average profit is agreed as the value of Goodwill. The
profit and Losses for the last four years are
Ist year
Rs 50,000
II nd year
Rs 80,000
III rd year
Rs 30,000 (Loss)
Iv th Year
Rs 60,000
Calculate the amount of Goodwill
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2.Calculate the amount of Goodwill on the basis of three years purchases of the five years average
profits. The profits for the last five years
Rs
2005 20,000
2006 24,000
2007 36,000
2008 19,000
2009 26,000
3.The goodwill is to be valued at two years purchases of last four years average profits. The profits
were Rs 40,000
Rs 32,000
Rs 15,000
and Rs 13,000 respectively. Find out the value of
goodwill
4.Calculate the amount of Goodwill on the basis of two years purchases of the last four years average
profits The profits and loss of the last four years are
2003 profit 20,000
2004 profit 30,000
2005Loss
6,000
2006 profit 16,000
5.Mohan and Murugan are partners sharing profits and losses equally. Mohan draws regularly Rs
2,000 at the beginning of every month during the year. Murugan draws regularly Rs 3,000 at the end
of every month during the year. calculate the interest on their drawings at 10% per annum.
6.Calculate the amount of Goodwill on the basis of three years purchases of the last four years average
profits. The profits for the last four years are
2001 Rs 12,000
2002-Rs 18,000
2003Rs-16,000
2004 Rs 14,000
7.Surendar and Amrith are two partners sharing profits and losses equally. Surendar drew regularly
Rs 2,000 at the end of every month during the year. Amrith draws Rs 4,000 regularly at the beginning
of every month during the year .calculate interest on their drawings at 10% p.a
8.Calculate the amount of goodwill on the basis of three years purchases of the five years average
profits .The profits for the last five years are
:
Rs
2001 15,000
2002 22,000
2003 36,000
2004 18,000
2005 17,000
9.Abi and Sibi had capitals of Rs 60,000 and Rs 40,000 respectively on 1.4.2002. Sibi withdrew Rs
5,000 from his capital on 30.09.2002.calculate interest on capital at 6% for the year ending 31st March
2003
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10.Kamala and Vimala are two partners sharing profits and losses equally. Kamala draws Rs 1,800
regularly in the middle of each month during the year 2006.Vimala draws Rs 10,800 at the end of each
half year. Calculate interest on drawings at 5% p.a
11.Charles and Newman are partners. Charles draws Rs 2,700 regularly in the middle of each month
during the year 2004.Newman draws Rs 5,400 at the end of each half year. Calculate interest on their
drawings at 5% p.a
12.A and B are partners sharing profits in the ratio of 3:2.a draws Rs 6,000 regularly at the end of
every month during the year 2004.B draws Rs 20,000on 1.4.2004, Rs 12,000 on 30.6.2004, Rs 16,000
on 1.10.2004, and Rs 8,000 on 30.11.2004.Calculate interest on their drawings at 6% p.a
13.V and S are two partners sharing profits and losses as 7:5.V draws regularly Rs 400 at the end of
every month during the year 2004.S draws Rs 800 regularly at the beginning of every month during
the year. Calculate interest on their drawings at 10 % p.a
14.Calculate the amount of Goodwill on the basis of two years purchases of the last four years
average profits. The profits /loss for the four years are
2001 profit Rs 10,000
2002 profit Rs 26,000
2003 loss
Rs 12,000
2004 Profit Rs 36,000
15.Sulochana and Archana started business on April 1,2004 with capitals of Rs 2,00,000 and Rs
1,50,000 respectively. Sulochana introduced Rs 50,000 as additional capital on October 1 2004.Interest
on capital is to be provided at the rate of 5% p.a. Calculate interest payable to Sulochana and Archana
for the year ending March 31,2005
16.Sivagami and Sundari are partners profits and losses equally. Sivagami draws regularly Rs 3,000
at the beginning of every month during the year. Sundari draws regularly Rs 2,000 at the end of every
month during the year. Calculate interest on their drawings at10% p.a
12 MARKS (Q.NO 51)
1.M and R are partners sharing profits in the ratio 3:2 with capital of Rs 50,000 and Rs 40,000
respectively. Interest on capital is agreed at 8% per annum. Interest on drawings is fixed at 10% p.a.
The drawings of the partners M and R were Rs 15,000 and Rs 10,000 Respectively. The interest for M
Rs 750 and R for Rs 500.M is entitled to a salary of Rs 12,000 p.a and R is entitled to a commission of
10% on the net profit before charging such commission. The net profit of the firm before making
adjustment was Rs 60,000 for the year ended 31.3.2005
Prepare profit and loss Appropriation account and Capital accounts
2.Sathyaraj and Dharmaraj are partners sharing profits and losses equally. Their capitals on 1.4.2007
were Rs 1,00,000 and Rs 80,000 respectively. Interest on capital is agreed at 6% p.a. Interest on
drawings is fixed at 8% p.a The drawings of the partners were Rs 15,000 and Rs 10,000 respectively.
Interest on drawings were Sathyaraj and Dharmaraj Rs 600 and Rs 400 respectively. Sathyaraj is
entitled to a salary of Rs 12,000 p.a and Dharmaraj is entitled to get a commission of Rs 3,420. The
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net profit of the firm before making the above adjustment was Rs 56,000 for the year ended on 31st
March 2008
Prepare profit and loss Appropriation account and Capital accounts of the partners
3.Amar and Akbar are partners in a firm sharing profits and losses in the ratio of 3:2. Their capital on
1.4.2004 were Rs 1,50,000 and Rs 1,00,000 respectively. The net profit of the firm for the year ended
31st March2005 before making adjustment for the following items was Rs 70,000 .Drawings of the
partners during the years were Amar Rs 15,000 and Akbar Rs 10,000
Their partnership deed provided for the following:
i]Interest on capital at 6% p.a
ii]Interest on drawings at 8% p.a being Amar Rs 600 and Akbar Rs 400
iii]Amar and Akbar to get a salary of Rs 10,000 each p.a
iv]Amar to get a commission of Rs 3,600
Show the profit and loss Appropriation account and Capital accounts of the partners
4. A and B are partners in a firm sharing profits and losses in the ratio of 3:2. Their capital on
1.4.2003 were Rs 1,60,000 and Rs 1,20,000 respectively. The net profit of the firm for the year ended
31st March2004 before making adjustment for the following items was Rs 60,000 .Drawings of the
partners during the years were A Rs 12,000 and B Rs 8,000
Their partnership deed provided for the following:
i]Interest on capital at 5% p.a
ii]Interest on drawings at 6% p.a
iii]A and B to get a salary of Rs 10,000 each p.a
iv]A to get a commission of 10% on the net profit before charging such commission.
Show the profit and loss Appropriation account and Capital accounts of the partners
5.Show how the following items will appear in the capital accounts and Currents accounts of the
partners Saleem and Simon when their capital are fixed
Saleem
Simon
Rs
Rs
Capital on 01.04.2004
90,000 70,000
Drawings during 2004/2005
12,000 9,000
Interest on Drawings
360 270
Interest on Capital
5,400 4,200
Partners salary
12,000 -----Commission
------- 6,000
Share of profit for 2004-2005
6,000 4,000
6.Suja and Banu are partners sharing profits in the ratio of 3:2. Their capitals on 1.4.2007 were Rs
2,00,000 and Rs 1,50,000 respectively. The net profit of the firm for the year ended 31st March ,2008
before making adjustment for the items below was Rs 75,000. Interest on Capital is at 6% p.a. They
are entitled to get a salary of Rs 10,000 each p.a.Suja to get a commission of Rs 1,050 p.a. The
drawings of the partners were Suja Rs 20,000 and Banu Rs 15,000 .Interest on drawings at6% p.a
being Suja Rs 600 and Banu Rs 450
Prepare profit and loss Appropriation account and Capital accounts of the partners
As on 31.3.2008
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7.Write up the capital and Current accounts of the partners, Rajani and sajani from the following
details:
Particulars
Rajani
Sajani
Rs
Rs
Capital on 1.4.2003
1,00,000
60,000
Current a/c on 1.42003
3,000(Dr) 2,000(cr)
Drawings during 2003-04
8,000
5,000
Interest on Capital @ 5%
?
?
Interest on Drawings
240
150
Share of profit 2003-04
12,000
10,000
Partners salary
4,000
Interest on Rajani’s loan a/c
3,000
8. Mohan and Murugan are partners in a firm sharing profits and losses in the ratio of 3:2. Their
capital on 1.4.2002 were Rs 80,000 and Rs 60,000 respectively. The net profit of the firm for the year
ended 31st March2003 before making adjustment for the following items was Rs 30,000 .Drawings of
the partners during the years were Mohan Rs 6,000 and Murugan Rs 4,000
Their partnership deed provided for the following:
i]Interest on capital at 6% p.a
ii]Interest on drawings at 8% p.a
iii]Mohan and Murugan get a salary of Rs 5,000 each p.a
Show the profit and loss Appropriation account and Capital accounts of the partners
9.Prepare Capital accounts of partners Ashwini and shivani from the following details assuming that
the capital are fluctuating
Particulars
Ashwini
Shivani
Rs
Rs
Capital as on 1.4.2006
2,10,000 1,20,000
Drawings during 2006-07
18,000
12,000
Interest on Capital @ 6%
?
?
Interest on Drawings
450
300
Share of profit 2006-07
24,000
18,000
Partners salary
6,000
Commission
4,800
3,600
Interest on Shivani’s loan a/c
3,000
10.Babu and Chandra are partners sharing profits and losses equally .Their capitals on 1.4.2005 were
Rs 60,000 and Rs 40,000 respectively. Interest on capital is agreed at 6% p.a. Interest on Drawings is
fixed at 8% p.a. The drawings of the partners were Rs 6,000 and Rs 4,000 respectively. Interest on
Drawings were for Babu Rs 240 and for Chandra Rs 160.Babu is entitled to a salary to Rs 8,400 p.a
and Chandra is entitled to get a commission of 10% on the net profit before charging such
commission.net profit of the firm before making the above adjustment was Rs 54,000 for the year
ended on 31st March 2006.
Prepare profit and loss Appropriation account and Capital accounts of the partners
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11.A and B are partners with Capital of Rs 60,000 and Rs 20,000 respectively on 1st January 2001.
The trading profit (Before taking into account the provision of the deed) for the year ended 31.12.2001
was Rs 12,000
Interest on Capital is to allowed at 6% p.a. B is entitled to a salary of Rs 3,000 p.a The drawings of the
partners were A Rs 2,000 and B Rs 1,000 The interest on drawings for a being Rs 100 and B Rs 50
Assuming that A and B are equal partners. Prepare profit and loss Appropriation account and
Capital accounts of the partners
12.Rajan and Daniel are partners sharing profit in the ratio of 3:2 with capitals of Rs 50,000 and Rs
40,000 respectively. Interest on Capital is agreed at 8% p.a Interest on Drawings is fixed at 10% p.a.
The drawings of the partners were Rajan Rs 15,000 and Daniel Rs 10,000.Rajan is entitled to a salary
of Rs 12,000 p.a Daniel is entitled to a commission of 10% on net profit before making charging such
commission. The Net profit of the firm before making the above adjustment was Rs 60,000 for the year
ended 31st March 2005
Prepare profit and loss Appropriation account and Capital accounts of the partners
13.Ravi and Shankar are partners with capitals Rs 4,50,000 and Rs 3,00,000 respectively on 1st April.
They share profit and losses are equally. Interest on Capital is agreed at8% p.a. The drawings of the
partners were Rs 30,000 and Rs 20,000 respectively. Interest on Drawings for Ravi Rs 1,500 and
Shankar Rs 1,000.Ravi is entitled to a salary of Rs 15,000 p.a and Shankar is entitled to get a
commission of 15% on the net profit after charging such commission. The Net profit of the firm before
making the above adjustment was Rs 1,30,000 for the year ended 31st March 2005
Prepare profit and loss Appropriation account and Capital accounts of the partners
14.Ganesh and Suresh are partners sharing profits in the ratio of 3;2 with capital of Rs 3,00,000 and
Rs 1,00,000 respectively on 1st April 2004.Interest on capital is agreed at 5% p.a. The interest on
Drawings is fixed at 6% p.a. The Drawings Ganesh and Suresh were Rs 45,000 and Rs 30,000
respectively. Interest on Drawings for Ganesh 2,250 and Suresh Rs1,500.ganesh is entitled to a salary
of Rs 20,000 p.a and Suresh is entitled to get a commission of 10% on the net profit before charging
such commission. The net profit of the firm before making the above adjustment was Rs 90,000 for the
year ended 31st March 2005
.
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CHAPTER-7&8
PARTNERSHIP ADMISSION AND RETIREMENT
5 Marks:(Q.No 43)
1. Sankar and Saleem were partners sharing profits and losses in the ratio of 3:2.They admit Saimon
into the partnership to 1/3rd share, the old partners sacrifice equally. Calculate the new profit sharing
ratio
2.A and B are partners sharing the profits in the ratio of 3:2.They admit C into the firm for 1/5th
share, which he acquired entirely from A. Calculate the new profit sharing ratio of A, B and C
3.Sindhu And Bindhu are partners sharing profits in the ratio of 7:3 .They admit Indhu into the
partnership to 1/5th share , the old partners sacrificing equally, calculate the new profit ratio and
sacrificing ratio
4.X and Y are partners sharing profits in the ratio of 3:2. They admit Z for 1/6th share as new partner.
Calculate new profit sharing ratio and sacrificing ratio of old partners.
5. krithika And Gomathi are partners sharing profits and losses in the ratio of 9:7.Nischala is
admitted as a partner .She acquires 3/16 of the profit entirely from Krithika .Calculate the new profit
sharing ratio and sacrificing ratio
6.Vidhya and Priya were partners sharing profits in the ratio of 4:3.Ramya was admitted in the
business as a partner with 3/7th share in the profits of the firm which she takes 2/7th from Vidhya and
1/7th from Priya. Find out the new profit ratio and Sacrificing ratio.
7. X and Y are partners sharing profits in the ratio of 3:2. They admit Z for 1/3rd share as new
partner. The old partners sacrifice equally .Calculate new profit sharing ratio and sacrificing ratio of
old partners
8.priya and Sharmila are partners sharing profits in the ratio of 3;2. They admit Sangeeta for 1/5th
share which acquires equally from Priya and Sharmila. Calculate new profit sharing ratio and
Sacrifice ratio.
9.Naveen and Praveen are partners sharing profits in the ratio of 3:2. They admit Kunal as a new
partners , who acquires 1/5th of Naveen’s Share and 2/5th of Praveen share. Calculate New profit
sharing ratio and Sacrificing ratio.
10.Neela and Nikita were sharing profits in the ratio of 4:3 .Pooja was admitted with 1/5th share in
profits of business. Calculate the new profit sharing ratio and Sacrificing ratio.
11. Neela and Sheela were sharing profits in the ratio of 4:3 .Heena was admitted with 1/5th share in
profits of business. Calculate the new profit sharing ratio and Sacrificing ratio.
12.A and B and C are sharing profits in the ratio of 5:3:2 C retires and his share was taken up
entirely by B. Find out the new profit sharing ratio.
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13. A and B were sharing profits in the ratio of 3:2 .C was admitted with 3/10th share in profits of
business. Calculate the new profit sharing ratio and Sacrificing ratio.
20 Marks (Q.No 53 b Compulsory)
1.P, S and V were partners of a firm sharing profits in the ratio of their capitals. Their balance sheet
as on 31.12.2004 stood as follows
Balance sheet as on 31.12.2004
Liabilities
Creditors
Reserve fund
Capitals:
P
S
V
Rs
Rs
Assets
Rs
Rs
21,000 Cash at Bank
16,000
48,000 Debtors
20,000
(-)provision for
19,000
1,000
90,000
Doubtful debts
60,000
Stock
18,000
30,000 1,80,000 Machinery
48,000
Land & Buildings
1,00,000
Goodwill
48,000
2,49,000
2,49,000
On 1.1.2005 S retires from the firm on the following terms;
i]Goodwill of the firm was estimated at Rs 36,000
ii]Land and Building was appreciated by 10%
iii]Provision for Doubtful debts was reduced by Rs 600
iv]Out of the amount of Insurance which was debited entirely to profit and Loss account Rs
2,000 be carried forward for unexpired insurance
v]A provision of Rs 3,000 was made in respect of an outstanding bill for repairs
Show Revaluation account and Capital account and the Balance sheet of the Reconstitute Partnership
2.Vijay and Vikram are partners sharing profits and Losses in the ratio of 3;2. Their balance sheet as
on 31st Match,2009 is given below:
Liabilities
Creditors
Bills payable
General
Reserve
Capital:
Vijay
Vikram
1st
Rs
80,000
40,000
Rs
70,000
20,000
40,000
Balance sheet as on 31.3.2009
Assets
Rs
Cash
Debtors
Stock
Machinery
Buildings
Profit & Loss A/C
1,20,000
2,50,000
Rs
15,000
70,000
30,000
25,000
1,00,000
10,000
2,50,000
On
April 2010 they agreed to admit Mr.Vinod into the firm for
share of future profit on the
following terms:
i]Vinod to bring Rs 50,000 Capital
ii]Stock is revalued at Rs 21,500
iii]Provision for bad and doubtful debts be created at 5%
iv]Buildings is revalued at Rs 1,20,000
v]Goodwill is raised at Rs 40,000
Prepare Revaluation Account , Capital account and Balance sheet of the reconstitute firm
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1/5th
3.Karthick ,David and Venkat were partners of a firm sharing profits and losses in the ratio of 3:2:1.
Their balance sheet as on 31st December 2006 is as follows:
Balance sheet as on 31.12.2006
Liabilities
Sundry Creditors
Bills payable
General Reserve
Capital account:
Karthick
David
Venkat
Rs
Rs
Assets
Rs
Rs
25,000 Cash
63,000
15,000 Bills Receivable
10,000
30,000 Sundry Debtors
30,000
Stock
42,000
80,000
Furniture
15,000
50,000
Buildings
80,000
40,000 1,70,000
2,40,000
2,40,000
Venkat retired from the partnership on 1st January 2007 on the following terms:
a]Goodwill of the firm was to be valued at Rs 30,000
b]Assets are to be valued as under:
Stock Rs 50,000:Buildings Rs 1,00,000
c]Furniture was to be depreciated by Rs 3,000
d]A provision for doubtful debts be created at Rs 1,000
e] Venkat was to be paid off at once
Show Revaluation account and Capital account and the Balance sheet of the Reconstitute Partnership
4.A & B are partners sharing profits and losses in the ratio of 3:2.Their balance sheet as on
31.12.2001 stood as under:
Balance sheet
Liabilities
Reserve fund
Creditors
Bills payable
Capital accounts
A
B
Rs
Assets
Rs
Rs
10,000 Land & Buildings
40,000
16,000 Plant & Machinery
10,000
6,800 Investments
10,000
Stock
11,000
30,000
Profit & loss a/c
10,000
5,000
25,000 55,000 Debtors
(-) Provision for doubtful
debts
4,800
200
Cash
2,000
87,800
87,800
They decided to admit c into partnership with effect from 1.1.2002
i]That C shall bring as a capital of Rs 20,000 for 1/3rd profits
ii]That the goodwill of the firm was valued at Rs 36,000
iii]Land was to be valued at Rs 45,000 and investment at Rs 25,000
iv]Stock was to be written down by Rs 2,000
v]That provision for doubtful debts was to be increased to Rs 300
vi]Creditors include Rs 500 no longer payable and this um was to be written off
Prepare Revaluation account, capital account of the partners and Balance sheet of the reconstitute
partnership
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Rs
5.Amar and Akbar and Antony were partners of a firm sharing profit and loss in the ratio of 6:5:4. The
balance sheet as on 31.3.2003 is given below
Balance sheet as on 31.3.2003
Liabilities
Sundry Creditors
Bills payable
Bank Overdraft
General Reserve
Profit & Loss a/c
Capital accounts:
Amar
Akbar
Antony
Rs
50,000
40,000
30,000
Rs
30,000
21,000
40,000
30,000
24,000
Assets
Cash
Sundry debtors
Stock
Furniture
Plant & Machinery
Land and
Buildings
Rs
Rs
25,000
25,000
35,000
15,000
75,000
90,000
1,20,000
2,65,000
2,65,000
Akbar retired from the partnership firm on 1.4.2004
i]That goodwill is raised at Rs 30,000
ii]The value of Land and Buildings is to be increased by Rs 10,000
iii]That Furniture and Plant were to be depreciated by Rs 2,000 and Rs 2,000 Respectively
iv]That Rs 10,000 is to be paid immediately to Akbar and the remaining balance is to be
transferred to his loan account
Show Revaluation account and Capital account and the Balance sheet of the Reconstitute Partnership
6.Ravi ,Venkat and Kumar are partners sharing profits and losses in the ratio of 3:2:1. Their balance
sheet as on 31.3.2008 is given below:
Liabilities
Sundry creditors
Bills payable
General reserve
Capital accounts:
Ravi
Venkat
Kumar
Rs
1,80,000
1,20,000
90,000
Rs
Assets
90,000 Cash at Bank
30,000 Sundry debtors
90,000 Stock
Plant & Machinery
Land and Buildings
Rs
Rs
1,41,000
39,000
90,000
1,20,000
2,10,000
6,00,000
6,00,000
Kumar retired from the partnership from 1.4.2008 on the following terms:
i]goodwill was to be raised at Rs 1,08,000
ii]the value of land and Buildings was to be increased by Rs 30,000
iii]Plant and machinery was depreciated by Rs 9,000
iv]The provision for outstanding bill for repairs was to be made of Rs 12,000
v]Kumar was to be paid off at once
Show Revaluation account and Capital account and the Balance sheet of the Reconstitute Partnership
7.Naveen and Nithin were partners of a firm sharing profits and losses in the ratio of 7:5 set out
below was their balance sheet as on 31st December 2004
Liabilities
Rs
Rs
Assets
Rs
Rs
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Sundry creditors
General reserve
Workman
compensation fund
Capital accounts
Naveen
Nithin
40,000 Bank
72,000 Sundry Debtors
Stock
60,000 Machinery
Profit & loss A/c
52,000
40,000
72,000
1,60,000
48,000
1,20,000
80,000 2,00,000
3,72,000
3,72,000
st
Nithin Retires from the partnership from 1 January 2005 and that Naveen will take over the
business on the following terms:
a]Goodwill of the firm was to be valued at Rs 36,000
b]Machinery was depreciated at 10%
c]A provision for doubtful debts be created at 5% on sundry debtors
d]The liability on workman compensation fund is determined at Rs 36,000
Show Revaluation account and Capital account and the Balance sheet of Naveen after the adjustment
have been made.
8.The following is the Balance sheet of Siva and Panner sharing profits 3:2 as on 31.3.2006
Liabilities
Rs
Rs
Assets
Rs
Rs
Sundry creditors
30,000 Bank
10,000
Bills payable
28,000 Sundry debtors
30,000
Bank overdraft
20,000 Stock
20,000
General reserve
30,000 Machinery
40,000
Capital accounts:
Land and buildings
70,000
Siva
40,000
Profit & loss a/c
8,000
Panner
30,000
70,000
1,78,000
1,78,000
On 1.4.2006 they decided to admit Gopinath into partnership on the following terms:
i]That Gopinath shall bring in a capital of Rs 30,000
ii]That goodwill of the firm being valued at Rs 20,000
iii]That Land & Buildings be appreciated by 10%
iv]That stock be depreciated by Rs 3,000 and provision for outstanding liability be created at
Rs 2,000
Pass journal entries, Also show Revaluation account and Capital account and the Balance sheet
9.Sekhar and Suresh are partners sharing profits and losses in the ratio 3:2.Their balance sheet as on
31st March 2004 is given below:
Liabilities
Rs
Rs
Assets
Rs
Rs
Bills payable
75,000 Cash
15,000
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Creditors
Loan
General Reserve
Capital:
Sekhar
Suresh
1,20,000 Stock
30,000
1,35,000 Debtors
1,50,000
45,000 Machinery
75,000
Buildings
4,50,000
3,00,000
Investment
1,00,000
2,25,000 5,25,000 Goodwill
80,000
9,00,000
9,00,000
st
On 1 April 2004 they agreed to admit Sundar into the firm for 1/5th share of future profits on the
following terms:
i]Sundar to bring Rs 1,50,000 as Capital
ii]Goodwill was valued at Rs 1,00,000
iii]Buildings was to be depreciated by Rs 20,000
iv] Creditors include Rs 30,000 no longer payable and this sum was to be written off
Show Revaluation account and Capital account, cash account and the Balance sheet of the
Reconstitute Partnership
10.The following is the Balance sheet of Viji and Raji sharing a profit and Loss as to Viji 65% and Raji
35% as on 1st April 2006
Liabilities
Rs
Rs
Assets
Rs
Rs
Sundry creditors
25,000 Cash
2,000
Bank overdraft
13,000 Debtors
30,000
Profit and loss a/c
14,000 Stock
20,000
Capital
Furniture
8,000
Viji
40,000
Land & Buildings
50,000
Raji
30,000
70,000 Goodwill
12,000
1,22,000
1,22,000
They agreed to take Vinitha into partnership to 1/10th share of the following terms:
i]Vinitha shall bring in a capital of Rs 30,000
ii]The goodwill of the firm be increased to Rs 15,000
iii]A provision of Rs 1,000 be made for outstanding repairs bill
iv]The value of land and Buildings be brought up to Rs 60,000 being their present worth
prepare Revaluation account ,capital account, bank account and the Balance sheet of the new firm
11.Dhiya and Gaya sharing profits in the ratio 3:2 admit Riya as a partner with 1/3rd share in profits
on 1.1.2001. The terms agreed upon were
1]Riya has to contribute Rs 30,000
2]Goodwill of the firm be valued at Rs 28,000
3]Land & Buildings be appreciated by 40%
4]Depreciated plant& Machinery by 10%
5]The provision for doubtful debts was to be increased by Rs 800
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6]A liability of Rs 1,000 include in the sundry creditors is not likely to arise
The balance sheet of Dhiya and Gaya as on 31.12.2000 before admission of Riya was as follows:
Liabilities
Rs
Rs
Assets
Rs
Rs
Sundry creditors
29,000 Cash at Bank
9,000
Bills payable
6,000 Land & Buildings
25,000
Capital
Plant & Machinery
30,000
Dhiya
50,000
Stock
15,000
Gaya
85,000 Sundry Debtors
20,000
35,000
General reserve
16,000 (-)provision for doubtful
debts
19,000
1,000
Goodwill
10,000
Profit and loss account
28,000
1,36,000
1,36,000
Prepare Revaluation account , Capital account, bank account and the new Balance sheet as on
1.1.2001 after the admission of Riya
12.Suriya, Vijay and Vikram were partners of a firm sharing profit and losses in the ratio of 3:2:1
.Their balance sheet as on 31st December 2005 is as follows
Balance sheet as on 31st December 2005
Liabilities
Sundry Creditors
Bills payable
General Reserve
Capital accounts:
Surya
Vijay
Vikram
Rs
Rs
Assets
50,000 Cash in hand
30,000 Sundry debtors
60,000 Stock
Furniture
Buildings
Rs
1,60,000
1,00,000
80,000 3,40,000
4,80,000
Rs
1,36,000
58,000
72,000
14,000
2,00,000
4,80,000
Vikram retired from the partnership on 1st January2006 on the following terms:
a]Goodwill of the firm was to be valued at Rs 60,000
b]Buildings was to be appreciated by Rs 40,000
c]Furniture was to be depreciated by Rs 3,000
d]A provision for doubtful; debts be created at Rs 1,000
e] Vikram was to be paid off at once
Show Revaluation account and Capital account, cash account and the Balance sheet of the
Reconstitute Partnership
13.Rani and Deepa were partners sharing profit and loss in the ratio of 7:5 their Balance sheet as on
31st December 1995 is as under:
Balance sheet as on 31st December 2005
Liabilities
Capital
Rani
Deepa
Reserve fund
Sundry creditors
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Rs
Rs
Assets
Land & buildings
60,000
Plant & Machinery
50,000 1,10,000 Investment
20,000 Stock
32,000 Sundry debtors
Rs
10,000
Rs
80,000
20,000
40,000
22,000
Bills payable
13,600 (-)Provision for
doubtful debts
9,600
400
Cash
4,000
1,75,600
1,75,600
st
They decided to admit Leena into the partnership with effect from 1 January 1996 on the following
terms:
1]Leena shall bring in a capital of Rs 40,000 for 1/3rd share of profits
2]Goodwill of the firm was valued at Rs 72,000
3]Land was to be appreciated by 10% and Investment was to be revalued at Rs 52,000
4]Stock was to be written down by Rs 4,000
5]provision for doubtful debts was to be increased to Rs 600
6]Creditors include Rs 1,000 no longer payable and this sum was to be written off
Pass journal entries, Also show Revaluation account and Capital account and the Balance sheet .
14.Jayaseelan,Anbarasu and Inbanathan were partners of a firm sharing profits and losses in the
ratio of 1/2 , 1/3 and 1/6 respectively .Set out below was their Balance sheet as on 30.06.2005
Balance sheet as on 30th June 2005
Liabilities
Rs
Rs
Assets
Rs
Rs
Sundry creditors
1,20,000 Cash in hand
8,000
Bills payable
40,000 Cash at Bank
1,80,000
General reserve
1,20,000 Sundry debtors
52,000
Profit and Loss a/c
90,000 Stock
1,20,000
Capital accounts:
Furniture
80,000
Jayaseelan
2,40,000
Plant
1,60,000
Anbarasu
1,60,000
Buildings
2,90,000
Inbanathan
1,20,000 5,20,000
8,90,000
8,90,000
Inbanathan retired from the partnership from 1st July 2005 on the following terms:
1]Goodwill was to be raised at Rs 1,44,000
2]The value of Buildings was to be increased by Rs 40,000
3]Furniture and Plant were to depreciated by Rs 4,000 and Rs 12,000 respectively
Pass journal entries, Also show Revaluation account and Capital account and the Balance sheet .
15.Amar ,Akbar and Antony were partners of a firm sharing profits and losses in proportion of their
capital. Set out below their Balance sheet as on 31st March 2004
Balance sheet as on 31st March 2004
Liabilities
Rs
Rs
Assets
Rs
Rs
Sundry creditors
2,00,000 Cash at Bank
2,50,000
Bills payable
1,00,000 Sundry Debtors
4,00,000
Loan
3,25,000 Stock
75,000
Reserve fund
1,00,000 Machinery
2,00,000
Profit and loss
2,00,000 Land and Buildings
4,00,000
Capital accounts:
Amar
2,00,000
Akbar
1,20,000
Antony
80,000
3,00,000
13,25,000
13,25,000
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On 1st April 2005 Antony retired from the firm on the following terms;
i]Antony was to be paid off at once
ii]Goodwill of the firm to be valued at Rs 50,000
iii]Machinery was to be depreciated at 10% per annum.
iv]The value of Land and Building was to be appreciated by 20% p.a
v]A provision of bad and Doubtful debts be created at 5% on debtors
Show Revaluation account and Capital account, Bank account and the Balance sheet of the
Reconstitute Partnership
16.Sankar and Saleem are partners sharing profits and losses in the ratio of 3:2 .Their Balance sheet
as on 31st March 2005 is given below
Balance sheet as on 31st March 2005
Liabilities
Rs
Rs
Assets
Rs
Rs
Creditors
80,000 Cash
10,000
Bills payable
50,000 Debtors
1,00,000.
General reserve
30,000 Stock
20,000
Loan
90,000 Furniture
50,000
Capitals:
Buildings
3,00,000
Sankar
2,00,000
Goodwill
75,000
Saleem
1,50,000
3,50,000 Profit and Loss a/c
45,000
6,00,000
6,00,000
On 1st April 2005 they agreed to admit Solomon into the firm for 1/5th share of future profits on the
following terms:
i]Solomon to bring Rs 1,00,000 as capital
ii]Goodwill was valued at Rs 50,000
iii]Provision for bad and doubtful debts is made at 5% p.a
iv]Investment of Rs 10,000 be brought into books
v]creditors include Rs 20,000 no longer payable and this sum was to be written off
Show Revaluation account and Capital account, Cash account and the Balance sheet of the
Reconstitute Partnership
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CHAPTER-9
COMPANY ACCOUNTS
5
MARKS (Q.No42)
1. The directors of S ltd forfeited 2000 shares of Rs 10each for non payment of final call of Rs 2.50
Give necessary Journal entries for forfeiture of shares.
2. Jasmine Limited Company issued 50,000 shares of Rs 10e ach at a premium of Rs 3.Give journal
entry.
3. Global Ltd Company issued 10,000 shares of Rs 100 each at a discount of 10% .Give journal entry.
4. Vinod Company Ltd issued 40,000 preference shares of Rs 10 each at premium of Rs 3.Give Journal
entry
5. Z Ltd issued 40,000 shares of Rs 10 each at a premium of Rs 2 per share. Give journal entry.
6. A limited company issued 1,00,000 shares of Rs 10each payable Rs 2 on application. The company
received application for 1,10,000 shares .The Excess application were rejected and money refunded
.pass necessary journal entries to record these transactions only.
7.Vanathi Ltd issued 30,000 shares of Rs 100 each at a premium of Rs 25 per share fully paid. Pass
journal entry
8. Latha ltd issued 2,00,000 equity shares of Rs 10each at a discount of 10% per share/Give journal
entry.
9. Suresh Ltd. issued 50,000 shares of Rs 100 each at a discount of 10% .Give journal entry
10. Balagobal Ltd issued 2,00,000 equity shares of Rs 10each at a premium of 10% per share fully
paid. Give journal entry.
11. Sandeep Limited issued 30,000 shares Rs 100 each at a discount of 10%.Give journal entry.
12. Jasmine ltd forfeited 600 shares of Rs 10each fully called up for non payment of final call of Rs2
each. These shares were reissued for Rs 5,400 as fully paid up. Give necessary journal entry.
13.A company forfeited 400 shares of Rs 10 each on which the first call money of Rs 3 per share was
not received, the final call of Rs 3 is yet to be made. These shares were Subsequently reissued at Rs 7
per share at Rs 8 paid up. Pass necessary journal entry
14.The directors of Kumar Ltd forfeited 4,000 shares Of Rs 10 each for non-payment of final call of Rs
3.2500 of these shares were reissued for Rs 7 per share fully paid up. Pass necessary journal entry
15.Success Ltd forfeited 500 shares of Rs 10 each fully called up for non payment of final call money of
Rs 4 per share. Out of these 300 share were reissued for Rs 8 each fully paid up. Pass necessary
journal entries.
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16.success Ltd issued 1,00,000 equity shares of Rs 10each at a premium of 20% per share, Fully paid.
Give journal entry
17.A company forfeited 6,000 shares of Rs 100 each fully called up for non-payment of final call
money of Rs 30per share. These shares were reissued for Rs 4,80,000 as fully paid up. Give necessary
journal entries.
18.A company forfeited 5,000 shares of Rs 10each fully called up for non-payment of final call money
of Rs 3 per share. These shares were reissued for Rs 30,000 as fully paid up. Pass necessary journal
entries
12 Marks(Q.no52)
1.A company forfeited 100 equity shares of Rs 100 each issued at premium of 10% on which first call
money of Rs 30 per share and final call of Rs 20 per share were not received. These shares were
subsequently re-issued at Rs 90 per share as fully paid up
Give necessary Journal entries regarding forfeiture and reissue of shares. Also prepare share
forfeiture account and Capital reserve account.
2.Sathya Ltd, Company issued 3,000 equity shares of Rs 10 each fully called up on which the final call
of Rs 3 has not been paid. Out of these 1,500 shares were reissued at Rs 8 each fully paid.
Give necessary journal entries and Prepare Ledger account for forfeiture shares account and Capital
Reserve account .
3. G Ltd forfeited 20 shares of Rs 10each fully called up held by Gopi for non-payment of Final call of
Rs 4 per share. These shares were reissued to Mohan for Rs 8 per share as fully paid up. Pass entries
for the forfeiture and reissues of shares .Also prepare share Forfeiture account and Capital reserve
account
4.The directors of a company forfeited 3,000 shares of Rs 10 each fully called up for non-payment of
first call Rs 3 and final call for Rs 2 per share. 2,000 of these shares were reissued at Rs 7 each fully
paid up. Pass necessary journal and Ledger account
5.The Directors of Good luck ltd Forfeited 2,000 equity shares of Rs 10each fully called up for non
payment of first call Rs 3 and Final call Rs 2 per share
Out of these 1,000 shares were reissued at Rs 8 each fully paid. Give necessary journal; entries and
prepare ledger account for forfeiture account and capital Reserve account
6.A company forfeited 200 shares of Rs 100 each issued at a premium of 10% (Received on allotment)
for the non payment of first call of Rs 30 and Final call of Rs 20 per share. These shares were reissued
at Rs 70 per share as fully paid up. Give necessary Journal entries for forfeited and reissue of share.
7.Acharya Ltd. Forfeited shares 300 shares of Rs 10 each fully called up held bu Kumar for non
payment of first call money of Rs 3 per share and final call money of Rs 4 per share .Out of these
shares 250 were re issued to Illangovan for Rs 2,000 .Give all the journal entries for forfeited and re
issue and prepare ledge accounts.
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8.The Directors of Everest Ltd. Forfeited 500 equity shares of Rs 100 each fully called up for non
payment of first call Rs 30 and final call Rs 10 per share.
Out of these 300 share were re issued at Rs 70 each fully paid.
Give necessary journal entries and prepare ledger accounts for forfeited shares account and capital
reserve account.
9.The directors of a company after due notice forfeited 100 shares of Rs 10 each on which the final call
money of Rs 3 was not paid. Later these shares were reissued at Rs 8 per share.
Pass Journal entries and shoe the share forfeiture and Capital Reserve account
10.The directors of a company forfeited 500 shares of Rs 10 each fully called up for non payment of
first call of Rs 2 per share and final call of Rs 3 per share .300 of shares were subsequently reissued
at Rs 7 per share fully paid up .pass necessary entries to record the above and prepare share forfeiture
account.
11.Gem Ltd. forfeited 1,000 equity shares of Rs 10 each fully called up on which the final call of Rs 3
has not been paid. Out of these 800 shares were reissued at Rs 8 each fully paid.
Give necessary Journal entries and Prepare Ledger accounts for forfeited shares account and Capital
Reserve account.
12. Poorani Ltd. Forfeited 2,000 shares of Rs 10 each issued at a discount of 10% for non payment of
first call Rs 2 and second Call Rs 3.These shares were reissued to Mrs. Merlin upon a payment of Rs
14,000 as fully paid.
Give necessary Journal entries and Prepare Ledger accounts for forfeited shares account and Capital
Reserve account
13.The directors of Arun Ltd forfeited 500 equity shares of Rs 100 each at a premium of 10% on which
first call money of Rs 30 per share and final call Rs 20 per share was not received. Out of these 300
shares were reissued at Rs 80 per share as fully paid. Give necessary Journal entries and Prepare
Ledger accounts for forfeited shares account and Capital Reserve account
14.The Directors of Lucky Ltd forfeited 1,000 equity shares of Rs 10 each fully called up for non
payment of first call Rs 3 and final Rs 3 per share.
Out of these 400 share were reissued at Rs 8 each fully paid. Give necessary Journal entries and
Prepare Ledger accounts for forfeited shares account and Capital Reserve account
15.The directors of mercury Ltd. forfeited 3,000 equity shares Of Rs 10 each fully called up for non
payment of first call Rs 2 and Final call Rs 3 per share .Out of these share 2,000 shares were Reissued
at Rs 9 each fully paid.
Give necessary Journal entries and Prepare Ledger accounts for forfeited shares account and Capital
Reserve account
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16.The directors of a company forfeited 5,000 shares of Rs 100 each fully called up for non payment of
final call Rs 20 per share. These shares were reissued at Rs 70 each as fully paid.
Give necessary Journal entries and Prepare Ledger accounts for forfeited shares account and Capital
Reserve account
17.The Directors of accompany forfeited 4,000 shares of Rs 10 each fully called up for non payment of
first call Rs 3 and final call Rs 2 per share .Out of these 1,000 shares were reissued at Rs 7 each as
fully paid.
Give necessary Journal entries and Prepare Ledger accounts for forfeited shares account and Capital
Reserve account
20 Marks (Q.N 57)
1.M ltd offered for subscription 20,000 shares of Rs 10 each payable at a premium of Rs 2.50 per share
payable as follows:
On Application
Rs 2.50
On Allotment
Rs 5.00 (Including premium)
On First call
Rs 3.00
On Final Call
Rs 2.00
Application were received for 30,000 shares Application for 5,000 shares were rejected. Application
for other 5,000 shares were adjusted towards allotment. The balance money was received in due time.
Pass journal entries and ledger account and balance sheet
2.Bharath company Ltd. issued 30,000 shares of Rs 100 each at a premium of Rs 10 each payable as
follows
On Application
Rs 20
On Allotment
Rs 40 (Including premium Rs 10)
On First call
Rs 20
On Final Call
Rs 30
The company’s shares were fully subscribed .Both the calls were made and all the money were duly
received.
Pass Journal entries. Prepare Bank account, Share Capital account ,Securities premium account and
Balance sheet
3.Shenbagam Ltd Company issued 2,00,000 shares of Rs 10 each at premium of Rs payable as follows :
On Application
Rs 2
On Allotment
Rs 5 (Including premium Rs 2)
On First call
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Rs 3
On Final Call
Rs 2
All the shares were fully subscribed .Both the calls were made and all the money were duly received.
Pass Journal entries. Prepare Bank account, Share Capital account ,Securities premium account and
Balance sheet
4.S ltd. Issued 1,70,000 shares of Rs 10 each at a discount of 10% .The shares were payable as under:
On Application
Rs 3
On Allotment
Rs 4(With the adjustment of discount)
On First call & Final Call
Rs 2
Public applied for 1,60,000 shares and the shares have been duly allotted. All money were duly
received.
pass entries and Prepare Bank account , Share Capital account, Discount account, and also Show the
Balance sheet
5.Sun Ltd issued 20,000 shares Of Rs 10 each payable at a premium of Rs 3 per share
On Application
Rs 3
On Allotment
Rs 5 (Including premium Rs3)
On First call
Rs 3
On Final Call
Rs 2
Applications were received for 30,000 shares Application for 5,000 shares were rejected. Applications
for other 5,000 shares were adjusted towards allotment. The balance money was received in due time.
Pass Journal entries. Prepare Bank account, Share Capital account, Securities premium account and
Balance sheet
6.Vasanth Ltd issued 20,000 shares of Rs 100 each at Rs 120 payable as follows:
On Application
Rs 20
On Allotment
Rs 50 (Including premium Rs20)
On First call
Rs 30
On Final Call
Rs 20
All the shares were fully subscribed .Both the calls were made and all the money were duly received.
Pass Journal entries. Prepare Bank account, Share Capital account , Securities premium account and
Balance sheet
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7.Santhosh Ltd issued 10,000 shares of Rs 100 each at Rs 120 payable as follows:
On Application
Rs 25
On Allotment
Rs 45 (Including premium)
On First call
Rs 20
On Final Call
Rs 30
9,000 shares were applied for and allotted . All money was received with the exception of final call on
200 shares held by Sanjay.
Pass Journal entries. Prepare Bank account, Share Capital account, Securities premium account and
Balance sheet
8.Nagesh Ltd. issued 6,000 shares of Rs 10 each at a premium of Rs 2 per share payable Rs 2 on
application, Rs 5 on allotment( including premium), Rs 3 on First call and Rs 2 on final call. All these
shares were duly subscribed and money due were fully received. Pass Journal entries. Prepare Bank
account, Share Capital account, Securities premium account and Balance sheet
9.Maruti Ltd issued 1,00,000 shares of Rs 10each at a premium of Rs 2 each payable as follows
On Application
Rs 2
On Allotment
Rs 6(Including premium)
On First call
Rs 3
On Final Call
Rs 1
All the shares were fully subscribed .Both the calls were made and all the money duly received.
Pass Journal entries. Prepare Bank account, Share Capital account, Securities premium account and
Balance sheet
10. Kalyana Sundaram Ltd issued 10,000 shares of Rs 100 each at a premium of Rs 20 each payable
as follows:
On Application
Rs 20
On Allotment
Rs 50 (Including premium)
On First call
Rs 30
On Final Call
Rs 20
The Company received application for 15,000 shares. Applications for 10,000 shares were accepted in
full, and the money on remaining 5,000 applications were rejected and refunded.
Both calls were made and all the money were duly received
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Pass Journal entries. Prepare Bank account, Share Capital account, Securities premium account and
Balance sheet
11. Pavitra Ltd offered for subscription 20,000 shares of Rs 10 each payable at a premium of Rs2 per
share. The shares were payable as under:
On Application
Rs 2
On Allotment
Rs 5 (Including premium)
On First call
Rs 3
On Final Call
Rs 2
Applications were received for 30,000 shares Application for 5,000 shares were rejected. Applications
for other 5,000 shares were adjusted towards allotment. The balance money was received in due time.
Pass Journal entries. Prepare Bank account, Share Capital account, Securities premium account and
Balance sheet
12. Texmo Ltd issued 20,000 shares of Rs 100 each at a premium of Rs 10 each payable as follows:
On Application
Rs 30
On Allotment
Rs 40 (Including premium)
On First call
Rs 20
On Final Call
Rs 20
The Company received application for 25,000 shares. Applications for 5,000 shares were rejected.
Both the calls were made and all the money were duly received.
Pass Journal entries. Prepare Bank account, Share Capital account, Securities premium
account and Balance sheet
13. Raja & Company invited application for 20,000 equity shares of Rs 100 each at a discount of Rs 10
per share (Allowed at the time of allotment)
The amount was payable as follows
On Application
Rs 20
On Allotment
Rs 40
On First call & Final Call Rs 30
The public applied for 18,000 shares and these were allotted. All Money due was collected with the
exception of allotment and the first and final call on 800 shares.
Pass Journal entries. Prepare important ledger accounts.
14. Tamil Selvan co ltd offered for subscription 5,000 shares of Rs 100 each at a premium of Rs 20 on
the following terms:
On Application
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Rs 20
On Allotment
Rs 50 (Including premium)
On First call
Rs 30
On Final Call
Rs 20
Application were received for 8,000 shares, excess application money was refunded.
All the money due on shares were duly received except final call on 500 shares.
Pass Journal entries .Prepare necessary ledger accounts and show the balance sheet
15. Sarawathi Ltd issued 30,000 shares of Rs 100 each at Rs 120 payable as follows
On Application
Rs 25
On Allotment
Rs 45 (Including premium)
On First call
Rs 25
On Final Call
Rs 25
All the shares were fully subscribed .Both the calls were made and all the money duly received.
Pass journal entries. Prepare necessary ledger accounts and the balance sheet
16. Naveena Ltd issued 50,000 shares of Rs 10 each at a premium of Rs 2 each payable as follows
On Application
Rs 2
On Allotment
Rs 5 (Including premium)
On First call
Rs 3
On Final Call
Rs 2
The company received application for 70,000 shares. Applications for 50,000 shares were accepted in
full and the money on remaining 20,000 applications which rejected was refunded.
Both the calls were made and all the money were duly received.
Pass journal entries. Prepare necessary ledger accounts and the Balance sheet.
17. Alpha Ltd, issued 10,000 shares of Rs 100 each at a discount of 10% payable as under:
On Application
Rs 30
On Allotment
Rs 40 (With discount adjustment)
On First call & Final Call Rs 20
Public applied for 8,000 shares and the shares have been duly allotted..all money were duly received.
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Pass journal entries. Prepare Bank account, Share capital account, Discount on issue of Shares
Account and Balance sheet.
18. Global Ltd. Issued 20,000 shares of Rs 100 each at Rs 110 payable as follows:
On Application
Rs 20
On Allotment
Rs 40 (Including premium)
On First call
Rs 30
On Second and Final Call
Rs 20
The Company’s shares were fully subscripted both the calls were made and all the money were duly
received.
Pass journal entries. Prepare Bank account, Share Capital account, Securities Premium Account and
Balance sheet.
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ACCOUNTANCY
Chapter-1
Final accounts-With adjustment
I. Fill in the blanks:
1. Net Profit is transferred from Profit and loss account to ________ account.
2. Closing stock is valued at Cost Price or ________ price whichever is lower.
3. Outstanding expenses are shown on the ________ side of the balance sheet.
4. Prepaid expenses are shown on the ________ side of the balance sheet.
5. Income accrued but not received will be shown on the ________ side of the Balance sheet.
6. Income received in advance will be shown on the ________side of the Balance sheet
7. Interest on capital is debited in ________ account
8. Interest on drawings is credited in ________ account.
9. Interest on loan borrowed unpaid is shown on the ________ side of the Balance sheet.
10. Depreciation is deducted from the concerned ________ in the Balance sheet.
11. Provision for Bad and Doubtful debts is deducted from ________ in the Balance sheet.
12. Provision for discount on creditors is deducted from ________in the Balance sheet.
13. Debts which are not recoverable from Sundry debtors are termed as ________.
II. Choose the correct answer
1. Returns inwards are deducted from
a) Purchases b) Sales
c) Returns outward
2. The Profit and Loss account shows
a) Financial position of the concern b) Net profit or Net loss
c) Gross profit or Gross Loss
3. Rent outstanding is
a) a liability
b) an asset
c) an income
4. Closing stock is shown in
a) Profit and loss account
b) Trading account and Balance sheet
c) None of the above.
5. Opening stock is shown in
a) Balance sheet
b) Profit and Loss account c) Trading account
6. Gross Profit is transferred to
a) Capital account
b) Profit and loss account
c) None of the above
7. Interest on capital is added to
a) Expense A/c
b) Income A/c
c) Capital A/c
8. Interest on drawings is deducted from
a) Income A/c
b) Capital A/c
c) Expense A/c
9. Outstanding interest on loan borrowed is to be added to
a) Asset A/c
b) Income A/c
c) Loan A/c
10. All the items given in the adjustment will appear at _________ in the Final accounts.
a) Three places
b) Two places
c) One Place
Chapter-2
Accounts from incomplete Records-Single entry
I. Fill in the blanks:
1. Incomplete records are those records which are not kept under ________ system.
2. Statement of affairs method is also called as ________ method.
3. ________ capital can be found by preparing a statement of affairs at the beginning of the year.
4. A statement of affairs resembles a ________.
5. Closing capital can be found by preparing a statement affairs at the ________ of the year.
6. In ________ system, only personal and cash accounts are opened.
7. Credit purchase can be ascertained as the balancing figure in the ________.
8. The excess of assets over liabilities is ________.
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9. The total assets of a proprietor are Rs.5,00,000. His liabilities Rs.3,50,000. Then his capital in the
business is ________.
10. A firm has assets worth Rs.60,000 and capital Rs.45,000. Then it’s liabilities is ________.
II. Choose the Correct Answer:
1. Under the networth method the basis for ascertaining the profit is
a) the difference between the capital on two dates.
b) the difference between the liabilities on two dates.
c) the difference between the gross assets on two dates.
2. Incomplete records are generally used by
a) Small traders
b) Company
c) Government
3. Credit sales is obtained from
a) Bills Receivable account b) Total debtors account
c) Total creditors account
4. Single Entry System is
a) a Scientific method
b) an Incomplete Double Entry System
c) None of the above.
5. The capital of a business is ascertained by preparing
a) Trading account
b) Statement of profit or loss
c) Statement of affairs
Chapter-3
Depreciation
I. Fill in the blanks:
1. All assets whose benefit is derived for a __________ period of time are called as Fixed Assets.
2. The estimated sale value of the asset at the end of it’s economic life is called as ________ value.
3. ________ method of depreciation is calculated on the original cost of assets.
4. Under ________ method, depreciation is calculated on the book value of the asset each year.
5. _______ method of depreciation is used in the case of Lease.
6. Under insurance policy method, cash is paid by way of _______ every year.
7. ________ method of depreciation is suitable for special type of asset like Loose tools
II. Choose the correct answer:
1. Depreciation arises due to
a) wear and tear of the asset b) fall in the market value of asset c) fall in the value of money
2. Under straight line method, rate of depreciation is calculated on
a) Original cost
b) Written down value
c) Cost less scrap value
3. Under diminishing balance method, depreciation
a) decreases every year
b) increases every year
c) constant every year
4. The term depletion is used for
a) Intangible assets b) Fixed assets
c) Natural resources
5. If selling price is more than the book value of the asset on the date of sale, it is
a) a loss
b) an income
c) a profit
6. If selling price is less than the book value of the asset it denotes
a) loss
b) capital profit
c) expenditure
7. Profit made on sale of fixed asset is debited to
a) Profit and Loss account
b) Fixed Asset account
c) Depreciation account
8. Loss on sale of fixed asset appear on the
a) credit side of Depreciation account
b) debit side of fixed asset account c) credit side of
fixed asset account
9. The amount of depreciation charged on a machinery will be debited to
a) Machinery account
b) Depreciation account
c) Cash account
10. Total amount of depreciation provided on the written down value method at the rate of 10% p.a. on
Rs.10,000 for first three years will be
a) Rs. 2,107
b) Rs. 2,710
c) Rs. 2,701
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Chapter-4
Ratio analysis
I. Fill in the blanks:
1. _______ is a mathematical relationship between two items expressed in quantitative form.
2. Ratio helps in _______ forecasting.
3. _______ Ratio measures the firm ability to pay off its current dues.
4. _______ are those assets which are easily convertible into cash.
5. Bank overdraft is an example of _______ liability.
6. Liquid ratio is used to assess the firm’s _______ liquidity.
7. Liquid assets means current assets less _______ and _______.
8. _______ ratio is modified form of liquid ratio.
9. Liquid liabilities means current liabilities less _______.
10. Proprietory ratio shows the relationship between _______ and total tangible assets.
11. Gross profit can be ascertained by deducting cost of goods sold from _______.
12. Stock turnover ratio is otherwise called as _______.
13. 100% – Operating profit ratio is equal to _______ ratio.
14. When total sales is Rs.2,00,000, cash sales is Rs.65,000, then credit sales will be Rs._______.
15. Liquid ratio is otherwise known as _______.
II. Choose the correct answer:
1. All solvency ratios are expressed in terms of
a) Proportion
b) Times
c) Percentage
2. All activity ratios are expressed in terms of
a) Proportion
b) Times
c) Percentage
3. All profitability ratios are expressed in terms of
a) Proportion
b) Times
c) Percentage
4. Liquid liabilities means
a) Current liabilities b) Current liabilities – Bank overdraft
c) Current liabilities + Bank
overdraft
5. Shareholders funds includes
a) Equity share capital, Preference share capital, Reserves & Surplus
b) Loans from banks and financial institutions
c) Equity share capital, Preference share capital, Reserves & Surplus and Loans from banks and
financial institutions
6. Which of the following option is correct
a) Tangible Assets = Land + Building + Furniture
b) Tangible Assets = Land + Building + Goodwill
c) Tabgible Assets = Land + Furniture + Goodwill + Copy right
7. Gross profit ratio establishes the relationship between
a) Gross profit & Total sales b) Gross profit & Credit sales c) Gross profit & Cash sales
8. Opening stock is equal to Rs.10,000, Purchase Rs.2,00,000 and closing stock is Rs.5,000. Cost of goods
sold is equal to
a) Rs. 2,15,000
b)Rs. 2,10,000
c) Rs. 2,05,000
9. Operating ratio is equal to
a) 100 – Operating profit ratio
b) 100 + Operating profit ratio
c) Operating profit ratio
10. Total sales is Rs,3,40,000 and the gross profit made is Rs.1,40,000. The cost of goods sold will be _____
a) Rs.2,00,000
b) Rs. 4,80,000
c) Rs. 3,40,000
11. Total sales of a business concern is Rs.8,75,000. If cash sales is Rs.3,75,000, then credit sales will be
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a) Rs.12,50,000
b) Rs.5,00,000
c) 12,00,000
12. Cost of goods sold is Rs.4,00,000 and average stock is Rs.80,000. Stock turnover ratio will be
a) 5 times
b) 4 times
c) 7 times
13. Current assets of a business concern is Rs.60,000 and current liabilities are Rs.30,000.Current ratio will
be
a) 1 : 2
b) 1 : 1
c) 2 : 1
14. Equity share capital is Rs.2,00,000, Reserves & surplus is Rs.30,000. Debenture Rs.40,000 and the
shareholders funds will be
a) Rs.2,00,000
b) Rs. 2,30,000
c) Rs. 1,90,000
Chapter-5
Cash Budget
I. Fill in the blanks:
1. The term ‘cash’ in cash budget stands for __________ and__________.
2. Cash budget is also called as __________.
3. There are __________ methods by which a cash budget is prepared.
4. The opening balance of cash in April is Rs.1250. Total receipts for the month are Rs.4300 and total
payments amounted to Rs.3750. Opening balance of cash in May will be __________
5. Cash budget is a useful tool for __________.
6. The closing balance of one month will be the __________ balance of the next month.
II. Choose the correct answer:
1. Budget is an estimate relating to __________ period.
a) future
b) current
c) past
2. Budget is expressed in terms of
a) Money
b) Physical units
c) Money & Physical units
3. Cash budget deals with
a) Estimated cash receipts
b) Estimated cash payments c) Estimated cash receipts & Estimated
cash payments
4. Purchase of Furniture is an example for
a) Cash receipts
b) Cash payments
c) None of the above
5. The opening balance of cash in January is Rs.9,000. The estimated receipts are Rs.14,000 and the
estimated payments are Rs.10,000. The opening balance of cash in February will be
a) Rs. 21,000
b) Rs. 11,000
c) Rs. 13,000
Chapter-6
Partnership accounts-Basic Concept
I. Fill in the blanks:
1. A sole trader business is owned and managed by ________ person.
2. Indian Partnership Act was enacted in the year ________.
3. Mutual and ________ agency is the essence of a partnership.
4. The profits and losses of the business will be shared among the partners in the ________ ratio.
5. Under fluctuating capital method, profit or loss in a year, will be transferred to the respective ________
accounts.
6. The capital accounts of partners may be ________ or fluctuating.
7. Under __________ capital arrangement, current accounts will not be maintained.
8. The debit balance of the current account, will be shown in the ________ side of the balance sheet.
9. Interest on partners’ capital is allowed, only when the ________ specifically provides for it.
10. Money lent to the business by a partner is credited to his ________ account and not his capital account.
11. Interest on partners’ loan should be paid, even if there is no ________ in a year.
12. Goodwill is an _______ asset.
13. The excess of average profit over normal profit is _______.
14. In the absence of partnership deed, no interest is to be charged on ________.
15. A partnership can be formed only for a ________ business.
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16. The persons who entered into partnership are collectively known as ________.
b) Choose the correct answer:
1. The minimum number of persons in a partnership firm is ______
a) one
b) two
c) seven
2. In a partnership business, agreement is _______
a) compulsory
b) optional
c) not necessary
3. In a partnership, partners share their profits and losses in _______ ratio
a) their capital
b) equal
c) agreed
4. Under fixed capital system, the profits and losses of partners will be transferred to their _______ account
a) current
b) drawings
c) capital
5. Interest on capital is calculated on the
a) Opening Capital
b) Closing Capital
c) Average Capital
6. Current accounts for partners will be opened under
a) Fixed capital method
b) Fluctuating capital method
c) Either fixed capital method or fluctuating capital method
7. In the absence of an agreement profits and losses are divided
a) in the ratio of capitals
b) in the ratio of time devoted by each partner
c) equally
8. X and Y are partners sharing the profits and losses in the ratio of 2:3 with capitals of Rs.1,20,000 and
Rs.60,000 respectively. Profits for the year are Rs.9,000. If the partnership deed is silent as to interest on
capital. Show how profit is shared among X and Y.
a) Profit : X - Rs. 6,000; Y - Rs.3,000
b) Profit : X - Rs. 3,600; Y - Rs.5,400
c) Profit : X - Rs. 3,000; Y - Rs.6,000
9. Where a partner is entitled to interest on capital such interest will be payable,
a) Only out of profits
b) Only out of capital
c) Out of profits or out of capital
10. In the absence of partnership deed, partners shall
a) be paid salaries
b) not to be paid salaries
c) paid salaries to those who work for the firm
11. Under fixed capital method salary payable to a partner is recorded
a) in Current Account
b) in Capital Account
c) either in Current Account or Capital
Account.
12. If a firm is maintaining both ‘Capital Accounts’ and ‘Current Accounts’ of the partners A and B.
Additional capital introduced by B will be recorded in
a) B’s Current Account
b) B’s Capital Account
c) either B’s Capital Account or Current Account
Chapter - 7
Partnership accounts - Admission
I. Fill in the blanks:
1. In the event of admission of a new partner, legally there is _______ of old partnership.
2. At the time of admission of a new partner, _______ profit ratio should be found out.
3. At the time of admission of a new partner, _______ of assets and liabilities should be taken up.
4. When the value of an asset increases, it results in _______.
5. When an unrecorded liabilities is brought into books, it results in _______.
6. The balance of revaluation account shows __________ on revaluation.
7. The revaluation profit or loss is transferred to the old partners’ capital accounts, in their _______.
8. The difference between old profit sharing ratio and new profit sharing ratio at time of admission is
_______ ratio.
9. Undistributed Profit will appear on the _______ side of the Balance sheet.
10. At the time of admission, when goodwill is raised, the old partners capital account will be credited in the
_______ ratio.
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11. The partner admitted into partnership firm acquires two rights i.e., right to share in the _______ of the
partnership and right to share in the _______.
12. The new profit sharing ratio will be determined by how the new partner acquires is _______ from the
old partners.
13. Under _______ goodwill account is raised by crediting the old partners capital accounts in the old profit
sharing ratio.
II. Choose the correct answer:
1. When A and B sharing profits and losses in the ratio of 3:2, they admit C as a partner giving him 1/3
share of profits. This will be given by A and B.
a) Equally
b) In the ratio of their capitals
c) In the ratio of their profits.
2. In admission, profit from revaluation of assets and liabilities will be transferred to the capital accounts of
the old partners in the
a) Old profit sharing ratio
b) Sacrifice ratio
c) New profit sharing ratio
3. If new share of the incoming partner is given without mentioning the details of the sacrifice made by the
old partners then, the presumption is that old partners sacrifice in the _______.
a) Old profit sharing ratio
b) Gaining ratio
c) Capital ratio
4. In order to maintain fair dealings, at the time of admission, it is necessary to revalue assets and liabilities
of the firm to their ______.
a) cost price b) cost price less depreciation
c) true value
5. On admission of a partner if goodwill account is to be raised this should be debited to
a) Partners’ capital account b) Goodwill account
c) Revaluation account
6. When A and B sharing profits and losses in the ration 3:2, admit C as a partner giving him 1/5 share of
profits. This will be given by A and B.
a) Equally
b) in their capitals ratio
c) in their profit sharing ratio
7. On admission of a new partner, increase in value of assets is
debited to
a) Asset account
b) Profit & Loss adjustment account
c) Old partners capital account
8. On admission of a new partner balance of General Reserve Account should be transferred to the capital
account of
a) all partners in their new profit sharing ratio
b) old partners in their old profit sharing ratio
c) old partners in their new profit sharing ratio
9. The old partners share all the accumulated profits and reserves in their
a) new profit sharing ratio
b) old profit sharing ratio
c) capital ratio
10. The reconstitution of the partnership requires a revision of the_______ of the existing partners
a) Profit sharing ratio
b) Capital ratio
c) Sacrificing ratio
11. ________ ratio is computed at the time of admission of a new partner
a) Gaining ratio
b) Capital ratio
c) Sacrificing ratio
Chapter - 8
Partnership accounts – Retirement
I. Fill in the blanks:
1. The retiring partner should be paid off or the amount due to him, will be treated as his _______ to the
firm.
2. At the time of retirement of partners, the existing partners stand to _______.
3. If the value of liabilities decrease, it results in __________item.
4. At the time of retirement, the increase in the value of goodwill will be transferred to the _______ side of
the capital accounts of all the partners.
5. At the time of retirement, the profit on revaluation of assets and liabilities will be transferred to the
_______ side of the capital accounts of all the partners.
6. At the time of retirement, the revaluation profits of business will be shared by _______ partners.
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7. In the absence of any specific agreement between the partners, partners loan to the firms will carry an
interest at the rate of ______ percentage.
8. The accumulated reserves will be transferred to the old partners Capital account in the _______ ratio at
the time of his retirement
9. The amount due to the retiring partner is either ______ or is paid in ______.
10. _______ is calculated to determine the amount of compensation to be paid by each of the continuing
partners to the outgoing partners.
11. A, B and C shares profit as 1/2 to A, 1/3 to B and 1/6 to C. If B retires then, the new profit sharing ratio
is _________.
12. Sacrificing ratio is the ratio in which the old partners (existing) have agreed to sacrifice their _______ in
favour of _______.
II. Choose the correct answers:
1. At the time of retirement of a partner, calculation of new profit ratio is _______
a) not necessary
b) necessary c) optional
2. Undistributed profits and losses ______ transferred to all the partners account at the time of retirement of
a partner.
a) should be b) should not be
c) may be
3. At the time of retirement Balance sheet items like Profit & Loss account and General Reserve must be
transferred to
a) Revaluation A/c b) Partner’s Capital A/c
c) None of the above
4. If the goodwill account is raised for Rs.30,000, the amount is debited to:
a) The capital accounts of partners b) Goodwill Account
c) Cash Account
5. ________ ratio is calculated by taking out the difference between new profit sharing ratio and old profit
sharing ratio.
a) Gaining
b) Capital
c) Sacrifice
6. On retirement of a partner goodwill amount is credited to the account of
a) only retiring partner
b) all partners including retiring partner
c) only remaining partner
7. A, B and C are sharing profits in the ratio of 2/5 : 2/5 : 1/5. C retired from business and his share was
purchased equally by A and B. Then new profit sharing ratio shall be
a) A – 1/2 & B – ½
b) A – 3/5 & B – 2/5
c) A – 2/5 & B – 3/5
8. When the amount due to an outgoing partner is not paid immediately, then it is transferred to
a) Capital A/c
b) Loan A/c
c) Cash A/c
9. If the amount due to the outgoing partner is transferred to loan account then he is entitled to interest at
______ untill it is paid out.
a) 9%
b) 5%
c) 6%
Chapter-9
Company accounts
I.Fill in the Blanks:
1. Companies have been defined in Section ___________ of the Companies Act, _______.
2. __________ is considered as the official signature of the company.
3. The management of a company is done by __________.
4. The liability of share holders are __________ in a company.
5. Audit of accounts are done by practicing chartered accounts who are appointed by __________ at the
__________.
6. ________ is the maximum amount of capital that can be issued by a company.
7. Nominal capital is the capital mentioned in the _______________ of the company.
8. That part of the authorised capital not offered for subscription to the public in known as _________.
9. Reserve capital can be issued only at the time of __________.
10. A public issue can not be kept open for more __________ days.
11. Minimum subscription that should be received by the company is ______% of the issued capital.
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12. When excess application money is adjusted towards allotment it is called as __________ allotment.
13. There should be a time gap of ____________ between two calls.
14. Capital Reserve represents __________ profit.
15. Forfeited shares have to be reissued at a price __________ than the face value.
16. Securities premium is shown in the __________ side of the Balance
Sheet.
II. Choose the correct answer:
1. According to Companies (Amendment) Act 2000, a company limited by share can issue _______ kinds of
shares.
a) 1
b) 2
c) 3
2. The public issue must be kept open for atleast
a) 3 days
b) 5 days
c) 7 days
3. Minimum amount to be collected by a company as application money according to SEBI is _____% of
the issue price.
a) 10%
b) 25%
c) 50%
4. When more number of applications are received than that are offered to the public, it is called
____________.
a) Over subscription
b) Under subscription
c) Full subscription
5. The maximum calls that a company can make is
a) one
b) two
c) three
6. According to Table A, interest charged on calls-in-arrears is______%.
a) 4%
b) 5%
c) 6%
7. According to Table A, interest charged on calls in advance is_______%.
a) 4%
b) 5%
c) 6%
8. A company can issue shares
a) at par only
b) at par and at premium
c) at par, at premium & at discount
9. When the company issue shares at a price more than the face value it is called as an issue at ________.
a) Par
b) Premium
c) Discount
10. Normally companies can issue shares at ________% of discount
a) 5
b) 10
c) 20
11. When shares are forfeited the share capital of the company will_______.
a) remain same
b) reduce
c) increase
12. Securities premium will appear in the ________ side of the Balance Sheet.
a) Asset
b) Liability
c) Assets & Liabilities
13. The balance of forfeited share account is________ in the Balance Sheet.
a) added to paid up capital
b) added to authorised capital
c) deducted from paid up capital.
14. Calls-in-arrears is shown in the Balance Sheet as
a) deduction from called up capital b) addition to paid up capital c) addition to issued capital
15. Capital Reserve is shown on the ________ side of Balance Sheet.
a) Asset
b) Liability c) Both
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Chapter-1
1.The Trial Balance as on 31.3.2004 shows Capital Rs 6,00,000 and Drawings Rs 40,000.
Interest on Drawings at 5% p.a is _______________
2.Trial Balance as on 31.3.2005 shows sundry debtors Rs 1,05,000.As per given adjustment if
Rs 5,000 is to be written off as bad debts, the provision for bad and doubtful debts at 5% will
be_______________
3.Trial Balance as on 31.3.2005 shows Bank Loan Rs 1,00,000 at 10% p.a on 1.4.2004.Interest
paid Rs 4,000 .Interest outstanding is _________
4.Trial Balance as on 31.3.2004.shows sundry debtors Rs 1,25,000 as per given in adjustment
if Rs 5,000 is to written off as bad debts the provision for bad and doubtful debts at 5% will
be_____________
5.Trial Balance shows bank deposits Rs 3,00,000 @ p.a on 1.1.2006. Interest received is Rs
25,000.accrued interest is Rs ___________on 31.12.2005
6. Trial Balance as on 31.12.2005 shows sundry debtors as Rs 69,000 .Write off bad debts Rs
4,000 .The amount of bad and doubtful debts at 5% will be ___________
7.Trial Balance shows bank loan Rs 7,00,000 @ 10% on 1.4.2003.Interest paid Rs 50,000
interest outstanding is Rs ________________as on 31.3.2004
8.Trial balance as on 31.3.2005 shows sundry debtors as Rs 50,500.Also write off Rs 500 as
bad debts. The amount of provision for bad and doubtful debts at 5% will be______________
9.Trial balance shows on 31.3.2005 investment @ 10% Rs 2,00,000.Interest received Rs
15,000.Accrued interest is___________
10.The Trial Balance as on 31.3.2005 shows sundry debtors Rs 30,800. Write off Rs800 as bad
debts. The amount provisions for bad and doubtful dents at 5% will be______
11.The Trial Balance shows as on 31st March ,2004 Sundry debtors Rs 30,500. Adjustment.
Write off Rs 500 as bad debts. The provision for bad and doubtful debts at 5% is___________
12.The Trial Balance as on 31.3.2004 shows sundry creditors Rs 25,000. The amount pf
provision for discount on creditors @2% will be is___________
13.The Trial Balance as on 31.3.2006 shows capital Rs 5,00,000 . Interest on capital at 6%
p.a is ____________
14.The Trial Balance as on 31.3.2006 shows sundry debtors Rs 25,000. Write off Rs 1,000 as
bad debts. The amount of provision for bad and doubtful debts as 5% will be___________
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15.The Trial Balance as on 31.3.2004 shows as on capital Rs 5,00,000 and drawings Rs
50,000.Interest on drawings @6% will be__________
16. Trial Balance
Chapter-2
1.Debtors on 1st April,2004 Rs 50,000 and on 31st march Rs 60,000 .Cash received from
debtors during the year Rs 1,00,000.Then credit sales made during the year is
2.Creditors on 1st April Rs 1,00,000 and on 31st March 2005 Rs 1,10,000 cash paid to creditors
during the year Rs 1,90,000.Then credit purchases made during the year is _____________
3. The total assets of a proprietor are Rs 5,00,000 .His liabilities are Rs 3,50,000.His capital in
the business is __________
4. Creditors on 1.1.2005 Rs 60,500 and on 31.12.2005 Rs 65,000 .Cash paid to creditors during
the year Rs 1, 04,500 Thus credit purchases made during the year is___________
5. Debtors on 1.4.2004 Rs 39,600 and on 31.3.2005 Rs 49,900.Cash received from debtors
during the year Rs 69, 500. Thus credit sale made during the year is _________
6.Creditors on 1st April 2002 Rs 8,000 and on 31st March 2003 Rs 13,500 .Cash paid to
creditors Rs 31,000.Credit Purchases made during the year is ___________
7.Creditors on 1st April 2004 Rs 1,50,000 and 31st March 2005 Rs 1,80,000 Cash paid to
sundry creditors Rs 45,000. Thus the credit purchases made during the year is___________
8.A firm has capital Rs 60,000 and liabilities Rs 40,000.Then its assets_________
9. Creditors on 1.4.2006 Rs 80,000 and on 31.3.2007, Rs 65,000, Cash paid to creditors during
the year is RS 1,10,000. Then the credit purchases during the year is ____________
10.In a business closing capital is Rs 20,000,Drawings Rs 5,000. Additional Capital Rs
7,000,Profit Rs 3,000___________is the opening capital
Chapter-3
1.Selling price of a plant is Rs 10,00,000 .If loss on sale is Rs 1,00,000 the book value of the
plant is ______________
2.Cost of an asset is Rs 3,00,000 Rate of depreciation is at 10% p.a Depreciation is calculated
under straight line method Book value of asset at the end of third year is
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3.Selling price of a plant is Rs 5,00,000.If profit on sale two items is Rs 50,000 The book
value of the plant is ________
4.Cost of an asset is Rs 2,00,000.Rate of depreciation is at 10% per annum .Depreciation is
calculated under Diminishing Balance method. Book value of asset at the end of third year is
_______________
5.Selling price of a fixed assets is Rs 75,000 .The book value of the asset at the time of sale is
Rs 60,000.Profit on sale is Rs _____________
6.Cost of an asset Rs 5,00,000 rate of depreciation is 10% p.a Depreciation is provided under
written down value method. Book value of the asset at the end of second year is
_____________
7.Selling price of plant Rs 5,00,000 profit on sale was Rs 59,000. The book value of the plant
is____________
8.Under the written down value method if depreciation is at rate of 10% p.a on Rs 10,000,
then the book value of the asset at the end of third year is____________
9.Total amount of depreciation provided on the written down value method at the rate of
depreciation 10% p.a on Rs 20,000 for first three years will be___________
10. Total amount of depreciation provided on the straight line method at the rate of 10% p.a
on Rs 50,000 for first three years will be_____________
11. Cost of an asset is Rs 4,00,000. Rate of depreciation is at 10% p.a. Depreciation is
calculated under written down value method. Book value of the asset at the end of third year
is _________
Chapter-4
1.Current assets of a business concern is Rs 60,000 and current liabilities are Rs
30,000,Current ratio will be____________
2.The opening stock are Rs 72,000 and closing stock are Rs 78,000. Then the average stock
is_____________
3.Liquid liabilities of a business is Rs 80,000, Bank overdraft RS 25,000. Current liabilities
will be______________
Chapter-5
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1.The opening balance of cash in January is Rs 15,000.The estimated cash receipts are Rs
20,000 and the estimated cash payments are Rs 10,000.The opening balance of cash in
February will be ____________
Chapter-6
1.A , B and C are sharing profits in the ratio of 5:3:2.If B retires the new profit sharing ratio
of A and C is______________
2. A , B and C were sharing profits in the proportion of ½, 1/3,and 1/6 .If A retires the new
profit sharing ratio of B and C is______________
Chapter-9
1.A company issued 2,00,000 shares of Rs 10each to the public but only 1,50,000 shares were
subscribed .Its subscribed capital is ___________________
2.The directors of a company forfeited 100 shares of Rs 10 each on which the final call money
of Rs 3 was not paid. Later these shares were reissued for Rs 800 capital reserve will
be________
3.A company had authorized Capital of Rs 4,00,000 divided into 4,000 shares of Rs 100 each
.It offered 3,000 shares to the public. Its issued capital is__________
4.The directors of a company forfeited 500 shares of Rs 10 each on which the final call money
of Rs 2 was not paid later these share issued at Rs 8 per share Capital Reserve will be
__________
5.U ltd issued 70,000 shares of Rs 10 each fully subscribed by public Rs 7 per shares been
called up. Then Rs __________will represent uncalled capital
6.G ltd issued 1,00,000 shares of Rs 10 each ,fully subscribed by public . Rs 7 per share has
been called up. Then Rs ___________will represent uncalled capital
7.The amount credited to share forfeited account is RS 3,000. The discount on reissue of
forfeited shares is Rs1,500.capital reserve will be_________
8.A ltd company issued 50,000 shares of Rs 10 each fully subscribed by public Rs 8 per shares
been called up, then __________will represent uncalled capital.
9.The amount credited to share forfeiture account is Rs 6,000. The loss on reissue of forfeited
shares is Rs 3,000, Capital reserve will be_________
10.A company issued 20,000 shares of Rs 100 each to the public, but only 18,000 shares were
subscribed, Its subscribed capital is Rs __________
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11.The amount credited to share forfeiture account is Rs 5,000.The discount on the reissue of
forfeited shares is RS 1,000.capital reserve will be ____________
COMMERCE
Lesson:1
Organisation
I. Choose the correct answer:
1. Which of the following is not the characteristic of sole proprietorship
a] Single ownership
b] One man control
c] Whole profit to proprietorship
d] Non-flexibility
2. What is the advantage of sole proprietorship
a. Small capital
b. Hasty decision
c. Limited capital
d. Limited managerial ability
3. The agreement of partnership
a. Must be oral
b. Must be in writing
c. Must be writing in the stamp paper d. Can be either oral or in writing
4. Partnership may come into existence
a. By the operation of law
b. By an express agreement
c. By an express or implied agreement
d. By inheritance of property
5. Management of a Jointstock company is entrusted to.
a. The Registrar of companies b. The Board of Directors c. The shareholder d. The
debenture holders
6. Registration is compulsory in the case of
a. A Sole trader
b. A partnership c. A joint stock company d. A joint hindu family
business
7. In a co-operative society
a. One share one vote principle is followed
b. One man one vote principle is followed
c. A member must have 2 votes d. Shares are transferable.
8. Co-operative society can be started
a. Only in villages b. In towns and villages c. Only in cities
d. Only in State
headquarters
9. The most suitable form of organisation for operating defence industries is
a. Government Company b. Public corporation
c. Departmental organization
d. Board organization
10. The share capital of the government company must not be less than
a. 75%
b. 60%
c. 95%
d. 51%
11. A multinational company is also known as
a. Global giant
b. Partnership
c. Co-operative society
d. Public corporation
12. Membership by birth is main feature in
a. Sole trader
b. Joint Hindu family business c. Co-operative society
d. Partnership
II Fill in the blanks
1. Division of work is called ____________
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2. Delegation means the ___________ of part of the work
3. The liability of sole trader is __________________
4. Partners share profits and losses _______________
5. In India registration of partnership is _____________
6. In co-operative society all members are ________
7. A company is regarded as a __________________
8. Broadcasting comes under____________ form of organization
9. Public corporation is known as _________________ corporation
10. Tamilnadu Electricity Board is the example of ____________
11. Government policy is also favourable towards _____________
12. Government Company employees are not _______________
Lesson: 2
Sole Trader
I. Choose the correct answer:
1. Sole trading business can be started by:
a) At least two persons b) At least seven persons c) Any one person
2.The liability of a soletrader is:
a) Limited only to his investment in the business b) Limited to total property of the
business
c) Unlimited
3.Sole proprietorship is suitable for:
a) Large scale concerns b) Medium scale concerns
c) Small scale concerns
4.Decision-making process in soletrading business is:
a)Quick
b) Slow
c) Neither quick nor slow
5.A soletrader:
a) Cannot keep his business secrets
b) Can keep his business secrets
c) None of the above
Lesson:3
Partnership
I. Choose the correct answer:
1.A partnership is formed by
a) Agreement b) Relationship among persons c) The direction of government
2. The basis of partnership is
a) Utmost good faith
b) Money available for investment c) Desire to work
together
3. A partnership firm may be registered under
a) 1949 Act
b) 1956 Act
c) 1932 Act
4. Registration of partnership is
a) compulsory
b) optional
c) not necessary
5. In partnership there exists a relationship of
a) principal and agent
b) owner and servant
c) employer and employee.
II. Fill in the blanks
1. The profit and loss of a partnership firm is shared in the _______ among the partners.
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2. The partners liability in India is ___________________
3. The maximum number of members in non-banking firm is_______________
4. A partner who does not take part in the working of the firm is called________ partner.
Lesson:4
Joint Stock Companies-1
I. Choose the correct answer:
1. Registration of a joint stock company is
a.) compulsory
b) optional c) compulsory for public limited companies and
optional for private limited companies
d) optional for public limited companies and
compulsory for private limited companies
2. The minimum number of members for a public limited company is
a) 2
b) 3
c) 7
d) 10
3. The liability of shareholders of a private limited company is limited to
a) the paid up value of the shares
b) amount remaining unpaid on the shares
c) the extent of private assets
d) amount called up
4. A private limited company can commence business
a) immediately on receiving the certificate of incorporation
b) only after the certificate of commencement of business is received
c) on getting name approval from the Registrar
d) on filing all the documents necessary for formation with the Registrar
5. The existence of a company comes to a close
a) on the death of all its promoters
b) on death of all the directors of the Board
c) on transfer of shares by most of its original members
d) none of the above
6. Table A of the Companies Act is a
a) model minutes book
b) model form of balance sheet
c) model of Articles of Association
d) model of memorandum of association
7. Which of the following documents define the scope of a company’s activities?
a) Momorandum of Association
b) Articles of Association
c) Prospectus
d) Statutory Declaration
8. Which of the following is created by a Special Act of Parliament or in State Assemblies?
a) Chartered company
b) Foreign company
c) Government company
d) Statutory company
9. Which of the following companies must file with the Registrar a statement in lieu of
prospectus?
a) a public limited company which raises funds from the public through
issue of shares
b) a public limited company which has made arrangement for racing
its capital from directors and their relatives
c) a private limited company
(d) all of them
10. The minimum subscription specified in the prospectus must be received within
a) 90 days
b) 120 days
c) 130 days
d) 60 days
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11. A preference share has priority in
a) dividend only
b) only in return of capital at the time of winding up
c) voting rights
d) both dividend and return of capital on winding up
12. Shares can be forfeited for
a) Non-payment of any debt due to the company
b) Not attending three annual general meetings consecutively
c) For non payment of call money
d). for violent activities at the annual general meetings
13. Where the shares are issued at a discount and the nominal value of share is Rs.100, the
maximum discount that can be allowed is
a) Rs.5
b) Rs.10
c) Rs.20
d) Rs.15
14. Debenture holders of a company are its
a) Creditors
b) Members
c) Credit customers
d) Borrowers
15. Debenture holders are entitled to receive interest in the following circumstances
a) when there are profits
b) when shareholders also get dividend
c) every year irrespective of loss
d) all the above
II.Fill in the blanks with suitable word or words.
1. The minimum of a number of members in a public limited company is ____________
2. The liability of a member of a company limited by guarantee is________
3. The minimum number of members in a private company is _____
4. A company, the members of which not less than fifty one percent of the paid-up-share
capital is held by a state Government, is known as ________ company.
5. The company, which need not have separate Articles of Association of its own is
___________company limited by shares.
6. The manner in which the internal management of a company carried on is contained in
_____________
7. An advertisement inviting the public to buy the debenture of a public company is known as
_____________
8. Preference shares which carry a right to arrear dividend are known as ___________
9. Such shares, as are entitled to a further dividend in addition to the usual fixed rate of
dividend are known as _________shares.
10. A private company should have at least _________directors.
11. The aggregate nominal value of qualification shares shall not exceed _______ rupees.
12. When a company has issued shares of Rs. 6000 each only, the minimum number of
qualification shares that a director should hold is______________
Lesson:5
Joint Stock Companies-II
I. Choose the correct answer:
1. First directors are appointed by
a) members in statutory meeting
b) members in the first Annual General meeting
c) by being named in the Articles of Association
d) Registrar of Companies
2. A director is acting as
a) agent of the company
b) trustee of the company
c) chief executive officer of the company
d) all of these
3. A person can hold directorship of not more than _________ public limited companies
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a) 10
b) 15
c) 20
d) limitless
4. The value of qualification shares of a director in a public limited company shall not exceed
a) Rs.5000 b) Rs.5,00,000
c) Rs.50,000
d) Rs.500
5. The overall maximum managerial remuneration in a public limited company shall not
exceed
a) 11% of net profits
b) 11% of paid up capital and free reserves
c) 5% of net profits
d) 5% of paid up capital and free reserves
6. A company secretary is appointed by
a) Government
b) The Institute of Company Secretaries of India
c) The Board of Directors
d) Shareholders in Annual General Meetings
7. A company should compulsorily appoint a qualified company secretary, having a paid up
capital of more than
a) Rs. 5 Lakh
b) Rs.50 Lakh
c) Rs.25 Lakh
d) Rs.15 Lakh
8. Which of the following must hold a statutory meeting ?
a) Statutory Companies
b) Private Limited Companies
c) Public Limited Companies
d) Chartered Companies
9. The interval between two annual general meetings shall not exceed
a) 15 months
b) 12 months
c) 18 months
d) 20 months
10 Which of the following business is not transacted at the Annual General Meeting
a) appointment of auditors
b) issue of debentures
c) appointment of directors in place of those retiring
d) declaration of dividend
11. Who can call Extraordinary General Meeting ?
a) Company Law Tribunal
b) Board of Directors on its own or on the requisition of members
c) By the requisitionists themselves on Board’s failure to convene
d) all of these
II. Fill up the blanks with suitable word or words
1. Directors act as _________trustess and officers of the company
2. The share holders are the real ______________ of the company
3. First directors are usually named in the ____________
4. Statutory meeting must be held not later than _____________ and not earlier than
__________ from the date on which a public company is entitled to commence business
5. A statutory report must be sent to every member of the company atleast
_______________days before the meeting is to be held.
6. The time between two consecutive annual general meetings should not exceed
_______________ months.
7. Altering the Articles of Association requires ___________ Resolution
8. A person Appointed to attend a meeting on behalf of a share holder is known as _____
9. The Quorum for a General Meeting of members of a public company is _____________
10. The minimum number of members required for a meeting is known as ____________
11. Auditors are generally appointed and their remuneration, fixed at the ______________
meeting.
12. The notice calling the annual general meeting, must, be given to all its members at least
_______________ days before the date of the meeting.
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Lesson:6
Stock Exchange
I. Choose the correct answer:
1. The first issues are floated in
a) Primary market
b) Secondary market
c) Commodity market
d) Regulated market
2. The popular method of sale of new shares in India is
a) Public issue
b) Offer for sale
c) Managing brokers d) Underwriting
3. Stock exchanges deal in
a) Goods
b) Services c) Financial securities
d) Country’s currency
4. Number of recognised stock exchange in India
a) 2
b) 21
c) 22
d) 24
5. Stock exchange allow trading in
a) All types of shares of any company
b) Bonds issued by the Government
c) Listed securities
d) Unlisted securities
6. Jobbers transact in a stock exchange
a) For their clients
b) For their own transactions
c) For other brokers
d) For other members
7. A pessimistic speculator is
a) Stag
b) Bear
c) Bull
d) Lame duck
8. An optimistic speculator is
a) Bull
b) Bear
c) Stag
d) Lame duck
9. Securities Contract Regulation Act was passed in
a) 1952
b) 1956
c)1964
d) 1966
10. SEBI is formed as per
a) Securities contract (Regulation) Act
b) Securities and Exchange Board of India Act
c)Companies Act
d) Indian constitution
11. A bull operator believes in
a) Increase in prices
b) Decrease in prices
c) Stability in prices
d) No change in prices
12. Stock exchange …………… speculation in shares
a) Does not allow b) discourage
c) encourage
d) prohibits
13. A cautious speculator is known as
a) Stag
b) Bull
c) Lame duck
d) Bear
14. A stock exchange is a place to
a) Exchange one security for another
b) Buy and sell financial securities
c) Float new shares
d) Buy and sell stock of goods.
15. SEBI has the following number of members including chairman.
a) 5
b) 7
c) 6
d) 8
II. Fill in the blanks:
1. Large scale undertakings are organised in the form of _______.
2. Joint stock companies require __________________________
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3. The long term capital required by the company is divided into small units of fixed amount
called __________
4. Shares represent _______________ interest.
5. Debentures denote ________________ interest.
6. _______ is an acknowledgement for raising loan from the public.
7. Primary market is concerned with ___________
8. Secondary market deals with ________ traded in primary market.
9. Companies are assisted by _____________to make new issues.
10. _____________ is a commonly used method of issuing shares.
11. __________________act as intermediary to float new shares.
12. ________is an invitation to the public to subscribe for the shares.
13. After allotment of shares, allottees become the ___________of the company.
14. Application money should not be less than ________ percent of the value of a share.
15. Minimum subscription is fixed at _______of the issued capital.
16. The volume of business in secondary market depends on____
17. Secondhand securities are traded in _____________________
18. There are __________ regional stock exchanges in India.
19. Inclusion of securities in the official list of stock exchange is called ____________
20. Listing is ________________ for public companies.
21. Cleared securities are also called _______________
22. _____________ order gives a freehand to the brokers of a client to buy or sell a particular
security for any price.
23. Ready delivery contracts are also called as ______________
24. Investors retain securities for ____________________period.
25. _____are the employees of the members of a stock exchange.
26. Stag is called ______________
27._______________ is the supervisory body established to regulate Indian stock market.
28._______________ enables small investors to participate in the investment on share capital
of large companies.
29. ______________ act as a substitute for initial public offering.
30. BOLT is the online trading system in use at ______________ stock exchange.
Lesson-7
Co-operative Societies
I. Choose the correct answer:
1. Co-operative society can be started
a) Only at villages b) In towns and Villages c) Only in cities
d) Only in urban areas
2. The minimum number of members required to from a co-operative society is
a) 2
b) 7
c) 10
d) 25
3.Dividend is declared in a co-operative store to its members.
a) Share capital
b) Number of shares purchased
c) Amount of patronage given d) None of the above
4. The basic objective of a co-operative society is.
a) Earn profit
b) Organise some essential service for the benefit of its member
c) Organize essential services to the community.
d) Arrange for enough of quality goods for the community
5. In a co-operative society, the shares of a member
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a) Can be transferred
b) Can be repaid
c) Cannot be transferred
d) None of the above
6. Maximum membership in a co-operative society is
a) 50
b) 60
c) 100
d) Unlimited
7. A co-operative super market supplies
a) Credit
b) service
c) Goods
d) Cash
8. Consumers co-operation was first successful in
a) England
b) USA
c) Swiss
d) India
9. Minority interest can be protected in
a) Sole trader
b) Partnership c) Co-operative societies d) Public Company
10. Central Co-operative bank is established at
a) Villages b) Districts c) State head quarters
d) Urban areas
II. Fill in the blanks
1. The Latin word co-operari means ______________________
2. The father of the co-operative movement was ____________
3. Only ____________ of the profits to be distributed as dividend
4. The liability of the members of a Co-operative Society is _______
5. Transfer of shares are possible in_______________ and not possible in ___________
6. Management of a Co-operative Society is fully _______________
7. Service is the main objective of _____________________
8. Agriculture credit societies are classified into a). Rural credit society b). ____________
9. An industrial co-operative is organized by _________________
10. Super market refers to large scale ____________________
Lesson:8
GOVERNMENT IN BUSINESS
I. Choose the correct answer:
1. Government companies are registered under
a) Special statute of Government
b) Companies Act, 1956
d) Royal charter
d) Order of the Government
2. In a public corporation the management has
a) Limited freedom
b) No freedom of action
c) Controlled freedom
d) Unrestricted freedom of action.
3. For the efficient working of state enterprise the form of organisation generally considered
suitable is
a) Departmental organisation
b) Public corporation
c) Government company
d) None of these
4. Public can also subscribe to the share capital of
a) Public corporation
b) Departmental undertaking
c) Government company
d) None of these
5. In a government company the share capital of the government must not be less than
a) 51%
b) 60%
c) 75%
d) 90%
II. Fill in the blanks with suitable words:
1. ___________ is an undertaking owned and controlled by Government.
2. The primary aim of state enterprises is ___________
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3. Public corporations are created by _______of central or state Government.
4. In a Government company atleast ____________shares are owned by the Government.
5. The oldest from of public enterprise is —————————
6. When the Government takes over an existing private concern it is called ____________
7.The most suitable form of organisation for manufacturing defence goods is __________
8._______________ checks concentration of economic power in the hands of few.
9. Exploitation of consumers and employees is a feature of _____
10. Public corporations are managed by a ___________nominated by the Government.
Prepared by
Arjunan
PG teacher in Accountancy
SVNM School
Kangayam
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