In the AHSEC HS 2nd Year Accountancy Exam, there is always one Final Accounts practical question for 8 marks. This question is compulsory, and you must solve it as there is no other option. Scoring these 8 marks is very important because it can help improve your overall result.
To prepare well, you should practice AHSEC Class 12 Accountancy Final Accounts questions from previous years. This will help you understand the rules and adjustments better. We have provided AHSEC CLASS 12 Accountancy Final Accounts Solutions 2007-2024 to help you get ready for the AHSEC Class 12 Accountancy Exam.
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AHSEC Class 12 Accountancy Final Accounts Solutions (2007-2024)
Below is the AHSEC CLASS 12 Accountancy Final Accounts Practical Problem Solutions:
Q. Dhiraj and Rohit are partners in a firm. The trial balance of the firm as on 31st march 2006 was as follows: [AHSEC- 2007]
Trial Balance
Debit | Amount | Credit | Amount |
Goodwill Debtors Trade marks Plant and machinery Building Furniture 10% Investment Cash in hand Cash at Bank Stock on 31 – 3 – 2006 Bills receivable Salaries Telephone charges Printing and stationery Advertisement Drawings: Dhiraj Rohit Bad Debts Interest on Bank loan | 4000 20000 30000 25000 30000 5000 10000 1050 14650 17500 1500 5750 1600 150 250 2050 3000 250 3000 | Capital: Dhiraj Rohit Creditors Bills payable Reserves Interest on investments Provision for doubtful debts Bank loan Commission received in advance Trading account (Gross Profit) | 40000 20000 12500 2000 11000 300 1100 30000 1000 56850 |
| 174750 | | 174750 |
Prepare a Profit and loss Account, a Profit and loss appropriation Account for the year ended on 31st march 2006 and also a balance sheet as on that date after taking in to account the following adjustments:
Plant and machinery to be depreciated at 10% and furniture at 15%
Interest on investment due but not received within the accounting year Rs. 700.
A further bad debt of Rs. 250 is to be written off and provision for doubtful debts is to be maintained at 4% on sundry debtors.
Each of the partners is entitled to interest on capital @5% per annum and salary @ Rs. 2000 per annum.
Profit & Loss A/c
Particulars | Amount | Particulars | Amount |
To B/d To Provision for b/d To Depreciation on P/M To Depreciation Furniture To Salaries To Telephone charges To Printing and Stationery To Advertisement To B/d To Interest on Bank Loan To Net Profit | 250 790 2,500 750 5,750 1,600 150 250 250 3,000 45,660 | By Gross Profit By Outstanding Investment By Interest on Investment 300 Add; Outstanding 700 By Commission received in advanced By Provision for d/d | 56,850 1,000 1,000 1,000 1,100 |
| 60,950 | | 60,950 |
Profit & Loss Appropriation A/c
Particulars | Amount (Dr) | Particulars | Amount (Cr) |
To Interest on Capital: Dhiraj = 40,000 x 5% Rohit = 20,000 x 5% To Partner’s Salaries Dhiraj Rohit To Share of Profit: Dhiraj = 38,660 x 1/2 Rohit = 38,660 x 1/2 | 2,000 1,000 2,000 2,000 19,330 19,330 | By Net Profit | 45,660 |
| 45,660 | | 45,660 |
Partner’s Capital A/c
Particulars | Dhiraj | Rohit | Particulars | Dhiraj | Rohit |
To Drawings To Balance c/d | 2,050 61,280 | 3,000 39,330 | By Balance b/d By Interest on Capital By P/L Appropriation A/c By Partner’s Salaries | 40,000 2,000 19,330 2,000 | 20,000 1,000 19,330 2,000 |
| 63,330 | 42,330 | | 63,330 | 42,330 |
Balance Sheet
Liabilities | Amount | Assets | Amount |
Sundry Creditors Bills Payable Bank loan Reserve Capital Accounts: Dhiraj Rohit | 12,500 2,000 30,000 11,000 61,280 39,330 | Goodwill Sundry Debtors 20,000 Less: B/d 250 19,750 Less: Provision for b/d @ 4% 790 Trade Marks P/Machinery 25,000 Less: Depreciation @ 10% 2,500 Building Furniture 5,000 Less: Depreciation @ 15% 750 10% Investment 10,000 Add: Outstanding 1,000 (10,000 x 10%) Cash in hand Cash at bank Stock Bills Receivable Interest on Investment | 4,000 18,960 30,000 22,500 30,000 4,250 11,000 1,050 14,650 17,500 1,500 700 |
| 1,56,110 | | 1,56,110 |
Q. Sonali and Rupali are partners in a firm sharing profits and losses in the ratio of 3:1. The following is their trial balance as at 31st December 2007. [AHSEC - 2008]
Trial Balance
Debit | Amount | Credit | Amount |
Machinery Salaries Carriage outward Building Goodwill Furniture Debtors Bad debts Cash at bank Investment Cash in hand Establishment Stock as on 31-12-2007 Depreciation on machinery Environment protection expenses Publicity Drawings: Sonali Rupali | 35000 15850 2140 54000 15000 10000 48200 1400 1200 10000 1170 13000 10000 3500 5500 5000 5000 3000 | Capital account: Sonali Rupali Trading account (Gross profit) Creditors Bank loan Discount Commission Outstanding wages Provision for doubtful debts | 50000 30000 85700 44560 21000 4500 1000 1200 1000 |
| 238960 | | 238960 |
Additional Information:
Prepaid publicity Rs. 500.
Commission received in advance Rs. 200.
Provide for doubtful debts @ 5% on sundry debtors.
Allow interest on capital @ 5% p.a.
From the above trial balance and additional information, prepare a profit and loss account, a profit and loss appropriation account for the year ended 31st December 2007 and a balance sheet as on that date.
Profit & Loss A/c
Particulars | Amount | Particulars | Amount |
To Salaries To Carriage outward To Provision for d/d To B/d To Establishment To Depreciation on Machinery To Environment Pro. Expenses To Publicity 5,000 Less: Prepaid 500 To Net Profit | 15,850 2,140 2,410 1,400 13,000 3,500 5,500 4,500 43,700 | By Gross Profit By Discount By Commission 1,000 Less: Advance 200 By Provision for d/d | 85,700 4,500 800 1,000 |
| 92,000 | | 92,000 |
Profit & Loss Appropriation A/c
Particulars | Amount (Dr) | Particulars | Amount (Cr) |
To Interest on Capital: Sonali = 50,000 x 5% Rupali = 30,000 x 5% To Share of Profit: Sonali = 39,700 x 3/4 Rupali = 39,700 x 1/4 | 2,500 1,500 29,775 9,925 | By Net Profit | 43,700 |
| 43,700 | | 43,700 |
Partner’s Capital A/c
Particulars | Sonali | Rupali | Particulars | Sonali | Rupali |
To Drawings To Balance c/d | 5,000 77,275 | 3,000 38,425 | By Balance b/d By Interest on Capital By P/L Appropriation A/c | 50,000 2,500 29,775 | 30,000 1,500 9,925 |
| 82,275 | 41,425 | | 82,275 | 41,425 |
Balance Sheet
Liabilities | Amount | Assets | Amount |
Sundry Creditors Bank loan Commission Advance Outstanding wages Capital Accounts: Sonali Rupali | 44,560 21,000 200 1,200 77,275 38,425 | Machinery Building Goodwill Furniture Sundry Debtors 48,200 Less: Provision for b/d @ 5% 2,410 Cash at bank Investment Cash in hand Stock Prepaid Publicity | 35,000 54,000 15,000 10,000 45,790 1,200 10,000 1,170 10,000 500 |
| 1,82,660 | | 1,82,660 |
Q. Rakesh and Mahesh are partners in a firm sharing profits and losses in the ratio of 3: 2 respectively. The Trial Balance of the firm as on 31st March, 2008 was as follows: [AHSEC - 2009]
Debit | Rs. | Credit | Rs. |
Furniture Land & Building Cash at Bank Sundry Debtors Salaries Insurance Bad debts Closing Stock Drawings: Rakesh Mahesh Depreciation on Furniture | 6,240 1,21,000 7,900 10,000 13,250 1,900 100 7,580 1,200 800 260 | Rent Received Provision for Doubtful Debts Capital A/c: Rakesh Mahesh Wages Outstanding Trading A/c (Gross Profit) Commission | 600 800 70,000 63,000 200 35,380 250 |
| 1,70,230 | | 1,70,230 |
Prepare a Profit & Loss Account and a Profit & Loss Appropriation Account for the year ended 31st March, 2008 and also a Balance Sheet as on that date after taking into consideration the following adjustments:
Outstanding salary Rs. 350;
Provision for doubtful debts to be maintained at 3% of Debtors;
Allow interest on capital @ 5% per annum; and
Mahesh was to receive salary of Rs. 250 per month.
Profit & Loss A/c
Particulars | Amount | Particulars | Amount |
To Salaries 13,250 Add: Outstanding 350 To Insurance To B/d To Depreciation on Furniture To Provision for b/d To Net Profit | 13,600 1,900 100 260 300 20,870 | By Gross Profit By Rent Received By Provision for d/d By Commission | 35,380 600 800 250 |
| 37,030 | | 37,030 |
Profit & Loss Appropriation A/c
Particulars | Amount (Dr) | Particulars | Amount (Cr) |
To Interest on Capital: Rakesh = 70,000 x 5% Mahesh = 63,000 x 5% To Salaries Mahesh (250 x 12) To Share of Profit: Rakesh = 11,220 x 3/5 Mahesh = 11,220 x 2/5 | 3,500 3,150 3,000 6,732 4,488 | By Net Profit | 20,870 |
| 20,870 | | 20,870 |
Partner’s Capital A/c
Particulars | Rakesh | Mahesh | Particulars | Rakesh | Mahesh |
To Drawings To Balance c/d | 1,200 79,032 | 800 72,838 | By Balance b/d By Interest on Capital By Salaries By P/L Appropriation A/c | 70,000 3,500 - 6,732 | 63,000 3,150 3,000 4,488 |
| 80,232 | 73,638 | | 80,232 | 73,638 |
Balance Sheet
Liabilities | Amount | Assets | Amount |
Outstanding salaries Outstanding wages Capital Accounts: Rakesh Mahesh | 350 200 79,032 72,838 | Furniture Land & Building Cash at Bank Sundry Debtors 10,000 Less: Provision for b/d @ 3% 300 Stock | 6,240 1,21,000 7,900 9,700 7,580 |
| 1,52,420 | | 1,52,420 |
Q. Abhijit and Rabijit are a partnership firm sharing profits and losses in the ratio of 1:1. The Trial balance of the firm as on 31st December, 2008 was as under: - [AHSEC - 2010]
Debit | Rs. | Credit | Rs. |
Land & Building Furniture Sundry Debtors Salaries Rent Bad Debts Cash at Bank Commission Bank Charges Carriage Outward Drawings: Abhijit 3,500 Rabijit 2,000 | 20,000 18,000 12,000 14,100 2,500 400 16,000 600 500 450 5,500 | Gross Profit Discount Provision for Bad Debts Outstanding Wages Sundry Creditors Bills Payable Interest on Investment Capital: Abhijit 25,000 Rabijit 16,000 | 29,600 1,800 1,200 450 12,000 2,500 1,500 41,000 |
| 90,050 | | 90,050 |
Prepare Profit & Loss Account and Profit & Loss Appropriation Account for the year ended 31st December, 2008 and a Balance Sheet as on that date after considering the following adjustments:
Rent outstanding Rs. 600;
Depreciate furniture by 5% and appreciate Land & Building by 10%;
Salaries prepaid Rs. 500;
Provision for doubtful debts to be maintained at 8% of Debtors and
Interest on capital @ 5% should be allowed to partners.
Profit & Loss A/c
Particulars | Amount | Particulars | Amount |
To Depreciation on L/B To Depreciation on Furniture To Provision for b/d To Salaries 14,100 Less: Prepaid 500 To Rent 2,500 Add: Outstanding 500 To B/d To Commission To Bank Charge To Carriage outward To Net Profit | 2,000 900 960 13,600 3,000 400 600 500 450 11,590 | By Gross Profit By Discount By Provision for d/d By Interest Investment | 29,600 1,800 1,200 1,500 |
| 34,100 | | 34,100 |
Profit & Loss Appropriation A/c
Particulars | Amount (Dr) | Particulars | Amount (Cr) |
To Interest on Capital: Abhijit = 25,000 x 5% Rabijit = 16,000 x 5% To Share of Profit: Abhijit = 9,540 x 1/2 Rabijit = 9,540 x 1/2 | 1,250 800 4,770 4,770 | By Net Profit | 11,590 |
| 11,590 | | 11,590 |
Partner’s Capital A/c
Particulars | Abhijit | Rabijit | Particulars | Abhijit | Rabijit |
To Drawings To Balance c/d | 3,500 27,520 | 2,000 19,570 | By Balance b/d By Interest on Capital By P/L Appropriation A/c | 25,000 1,250 4,770 | 16,000 800 4,770 |
| 31,020 | 21,570 | | 31,020 | 21,570 |
Balance Sheet
Liabilities | Amount | Assets | Amount |
Rent Outstanding Outstanding wages Sundry Creditors Bills Payable Capital Accounts: Abhijit Rabijit | 500 450 12,000 2,500 27,520 19,570 | Land & Building 20,000 Less: Depreciation @ 10% 2,000 Furniture 18,000 Less: Depreciation @ 5% 900 Sundry Debtors 12,000 Less: Provision for b/d @ 8% 960 Prepaid Salaries Cash at bank | 18,000 17,100 11,040 800 10,000 |
| 62,640 | | 62,640 |
Q. Choudhury and Barua are partners in a firm sharing profit and losses in the ratio 50:50 respectively. The Trial Balance of the firm as on 31st March, 2011 was as follows: [AHSEC 2012]
Trial Balance
Particulars | Amount | Particulars | Amount |
Machinery Furniture Building Debtors General expenses Insurance Salaries Bad debts Cash in hand Cash at bank Stationery 10% investment (1-4-2010) Drawings: Chaudhury 9,000 Barua 12,000 Closing stock | 51,000 4,500 45,000 31,500 460 800 8,400 450 90 420 900 15,000 21,000 21,000 | Capital Accounts: Choudhury 40,000 Barua 40,000 Sundry creditor Bank overdraft Provision for doubtful debt Wages outstanding Trading Account(Gross Profit) | 80,000 32,500 12,000 1,800 150 74,070 |
2,00,520 | 2,00,520 |
| |
Prepare Profit and loss Account, Profit and Loss Appropriation Account for the year ended 31st March, 2011 and a Balance Sheet as at that date after taking into consideration the following.
(a) Outstanding Expenses – Salaries Rs 300, Interest on Bank overdraft Rs 225
(b) Machine worth Rs 15,000 purchased on 1st Oct, 2010.
(c) Provide depreciation on machinery and furniture @ 10% p.a. and on Building @ 21/2 % p.a.
(d) Interest on capital to be allowed @ 10% p.a.
(e) Prepaid Insurance Rs 150.
(f) Partners are entitled to salary of Rs 1,000 per annum each.
Solution:
Profit & Loss A/c
For the year ended 31-3-2011
Particulars | Amount | Particulars | Amount |
To Depreciation: Building 1,125 Machinery 4,350 Furniture 450 To General Expenses To Insurance 800 Less: Prepaid 150 To Salaries 8,400 Add: Outstanding 300 To Bad debt To Stationery To Interest on B/Overdraft To Net Profit | 5,925 460 650 8,700 450 900 225 60,060 | By Gross profit By Interest on Investment By Provision for d/debt | 74,070 1,500 1,800 |
| 77,370 | | 77,370 |
Profit & Loss Appropriation A/c
For the year ended 31-3-2011
Particulars | Amount | Particulars | Amount |
To Interest on capital Choudhury 4,000 Barua 4,000 To salary Choudhury 1,000 Barua 1,000 To Partners Capital A/c Choudhury 25,030 Barua 25,030 | 8,000 2,000 50,060 | By Net Profit | 60,060 |
| 60,060 | | 60,060 |
Partner’s Capital A/c
Particulars | Choudhury | Barua | Particulars | Choudhury | Barua |
To Drawings To Balance c/d | 9,000 61,030 | 12,000 58,030 | By Balance b/d By Interest on Capital By P/L Appropriation A/c By Partner’s Salary | 40,000 4,000 25,030 1,000 | 40,000 4,000 25,030 1,000 |
| 70,030 | 70,030 | | 70,030 | 70,030 |
Balance Sheet
As on 31-03-2011
Liabilities | Amount | Assets | Amount |
Capital A/c: Choudhury 61,030 Barua 58,030 Outstanding Salary Sundry Creditors Bank Overdraft 12,000 Add: Interest on B/Overdraft 225 Wages Outstanding | 1,19,060 300 32,500 12,225 150 | Building 45,000 Less: Depn 1,125 Machinery 51,000 Less: Depn (36,000 x 10/100 = 3,600) (15,000 x 10/100 x 6/12 =750) 4,350 Furniture 4,500 Less: Depn 450 Debtors Cash in hand Cash at bank 10% Investment 15,000 Add: Interest on investment 1,500 Prepaid Insurance Closing stock | 43,875 46,650 4,050 31,500 90 420 16,500 150 21,000 |
| 1,64,235 | | 1,64,235 |
Q. Shiba and Dhruba are partners in a firm. The trial Balance of the firm as on 31.03.2011 was as follows: 8. (AHSEC 2012)
Trial Balance
Debit | Amount | Credit | Amount |
Machinery Goodwill Patents Sundry Debtors Cash in Hand Closing Stock on 31.3.2011 Investments Depreciation on Machinery Establishments Carriage outward Taxes Telephone charges Conveyance Drawings: Shiba – 5000 Dhruba – 4000 Salaries Bank Charges | 54000 10000 20000 21000 1000 25000 10000 6000 10000 1000 500 3600 800 9000 8000 100 | Capital: Shiba – 50000 Dhruba – 40000 Sundry Creditors Interest on Investment Sundry Receipts Bank overdraft Outstanding Wages Trading Account (Gross Profit) Discount Bills Payable | 90000 5000 400 200 10000 500 71000 900 2000 |
| 180000 | | 180000 |
Prepare a Profit and Loss Account and a Profit and Loss Appropriation Account for the year ended 31.03.2011 and also a Balance Sheet as on that date after taking into consideration the following adjustments:
(i) Write off Rs.1000 as bad debts and provide a 5% provision on sundry debtors for doubtful debts.
(ii) Interest on investments accrued Rs.600.
(iii) Interest on Partner’s Capital is allowed @ 5% p.a.
(iv) Create a General Reserve by taking Rs.500 out of profits.
Solution:
Profit & Loss A/c
For the year ended on 31.03.2011
Particulars | Amount | Particulars | Amount |
To B/d To Provision for d/d To Depreciation on Machinery To Establishments To Carriage outward To Taxes To Telephone Charge To Conveyance To Salaries To Bank Charge To Net Profit | 1,000 1,000 6,000 10,000 1,000 500 3,600 800 8,000 100 41,100 | By Gross Profit By Interest on Investment 400 Add: Accrued 600 By Sundry Receipts By Discount | 71,000 1,000 200 900 |
| 73,100 | | 73,100 |
Profit & Loss Appropriation A/c
For the year ended 31.03.2011
Particulars | Amount (Dr) | Particulars | Amount (Cr) |
To Interest on Capital: Shiba = 50,000 x 5% Dhruba = 40,000 x 5% To Transfer to Reserve To Share of Profit: Shiba = 36,100 x 1/2 Dhruba = 36,100 x 1/2 | 2,500 2,000 500 18,050 18,050 | By Net Profit | 41,100 |
| 41,100 | | 41,100 |
Partner’s Capital A/c
Particulars | Shiba | Dhruba | Particulars | Shiba | Dhruba |
To Drawings To Balance c/d | 5,000 65,550 | 4,000 56,050 | By Balance b/d By Interest on Capital By P/L Appropriation A/c | 50,000 2,500 18,050 | 40,000 2,000 18,050 |
| 70,550 | 60,050 | | 70,550 | 60,050 |
Balance Sheet
Liabilities | Amount | Assets | Amount |
Sundry Creditors Bank Overdraft Outstanding wages Bills Payable Reserve Capital Accounts: Shiba Dhruba | 5,000 10,000 500 2,000 500 65,550 56,050 | Machinery Goodwill Patents Sundry Debtors 21,000 Less: B/d - 1,000 20,000 Less: Provision for d/d @ 5% - 1,000 Cash in hand Investment Accrued Int. on Investment Closing Stock | 54,000 10,000 20,000 19,000 1,000 10,000 600 25,000 |
| 1,39,600 | | 1,39,600 |
Q. The following is the Trial Balance of X and Y firm as on 31.3.2013: 8 (AHSEC 2014 )
Trial Balance
Debit | Amount | Credit | Amount |
Fixed Assets Advance Income Tax Salaries Taxes Miscellaneous Expenses Bills Receivable Sundry Debtors Closing Stock Charity Investment Bank Balance Drawings: X Y | 453000 200 16000 800 1000 1800 42800 20000 1400 30000 15600 12000 8000 | Reserve Fund Outstanding Wages Bad Debt Provision Sundry Creditors Capital: X Y Profit from Joint Venture Profit from Branch Trading Account (Gross Profit) | 19000 600 1400 55600 240000 160000 1000 400 124600 |
| 602600 | | 602600 |
Prepare Profit and Loss Account and Profit and Loss Appropriation Account for the year ended 31.3.2013 and a Balance Sheet as on that date after taking into consideration the following adjustments:
(i) The Partners are entitled to Interest on Capital @ 5% and they are charged interest on drawings: X – 300 and Y – 200.
(ii) Transfer 10% of the net profit to Reserve Fund.
(iii) Provide manager’s commission @5% on net profit before charging such commission.
(iv) Bad Debt reserve is to be increased to 5% on debtors.
(v) Interest on investment accrued Rs.500.
Solution:
Profit & Loss Account
For the year ended 31.03.2013
Particulars | Amount | Particulars | Amount |
To Salaries To Taxes To Misc. Expenses To Provision for b/d (New) To Charity To Net Profit (Before manager’s commission) | 16,000 800 1,000 2,140 1,400 1,06,560 | By Gross Profit By Provision for b/d (Old) By Profit from Joint Venture By Profit from Baruah By Interest Accrued | 1,24,600 1,400 1,000 400 500 |
| 1,27,900 | | 1,27,900 |
To Manager’s Commission (1,06,560 x 5/100) To Net Profit (Transferred to P/L Appropriation A/c | 5,328 1,01,232 | By Net Profit (Before manager’s Commission) | 1,06,560 |
| 1,06,560 | | 1,06,560 |
Profit & Loss Appropriation A/c
For the year ended 31.03.2013
Particulars | Amount (Dr) | Particulars | Amount (Cr) |
To Interest on Capital: X = 2,40,000 x 5% Y = 1,60,000 x 5% To Transfer to Reserve (1,01,232 x 10%) To Share of Profit: X = 71,609 x 1/2 Y = 71,609 x ½ | 12,000 8,000 10,123 35,804.50 35,804.50 | By Net Profit By Interest on Drawings: X = 300 Y = 200 | 1,01,232 500 |
| 1,01,732 | | 1,01,732 |
CAPITAL ACCOUNT
Particulars | X | Y | Particulars | X | Y |
To Drawings To Interest on Drawings To Balance c/d | 12,000 300 2,75,504.50 | 8,000.00 200.00 1,95,604.50 | By Balance b/d By Interest on Capital By P/L Appropriation A/c | 2,40,000.00 12,000.00 35,804.50 | 1,60,000.00 8,000.00 35,804.50 |
| 2,87,804.50 | 2,03,804.50 | | 2,87,804.50 | 2,03,804.50 |
Balance Sheet
Liabilities | Amount | Assets | Amount |
Reserve Fund 19,000 Add: Transfer to Reserve 10,123 Outstanding wages Sundry Creditors Manager’s Commission due Capital Accounts: X = 2,75,504.50 Y = 1,95,604.50 | 29,123 600 55,600 5,328 4,71,109 | Fixed Assets Advance Income Tax Bills Receivable Sundry Debtors 42,800 Less: Provision for b/d @ 5% 2,140 Closing Stock Investments Interest accrued Bank balance | 4,53,000 200 1,800 40,660 20,000 30,000 500 15,600 |
| 5,61,760 | | 5,61,760 |
Q. Preety and Jyoty are partners in a firm sharing profits in the ratio of 3:2. The Trial Balance of the firm as on 31-03-2014 was as follows:- (AHSEC 2015)
Trail Balance
Particulars | Debit (Rs.) | Particulars | Credit (Rs.) |
Debtors Furniture Machinery Salaries Insurance Premium on Machinery Bad Debts Cash in hand Rent Back charges Carriage Outward Depreciation on Furniture Drawings : Preety Jyoty | 10,000 10,000 31,000 13,200 1,200 200 10,400 6,000 420 1,450 1,000 4,000 2,500 | Trading A/c Bad debt recovered Sundry receipts Provision for bad debts Commission Creditors Rent Payable Bills Payable Capital A/c : Preety Jyoty | 41,120 600 1,000 800 250 10,000 200 2,400 20,000 15,000 |
| 91370 | | 91,370 |
Prepare the Profit and Loss A/c and the Profit and Loss Appropriation A/c of the firm for the year ended on 31-03-14 and a Balance Sheet as on that date after considering the following adjustments: 8
(i)Machinery is to be depreciated by 10%.
(ii)Provision for bad debt is to be increased by Rs. 200/-.
(iii)Preety was to receive, salary @ Rs. 300/- per month.
(iv)Interest on Capital is allowed @ 5% p.a.
Solution:
Profit & Loss Account
For the year ended on 31.3.2014
Particulars | Amount | Particulars | Amount |
To Provision for b/d To Depreciation on Machinery To Salaries To Insurance Premium on Machinery To Provision for b/d (800+200) To Rent To Bank Charge To Carriage Outward To Depreciation on Furniture To Net Profit | 200 3,100 13,200 1,200 1,000 6,000 420 1,450 1,000 16,200 | By Gross Profit By Bad debt recovered By Sundry receipts By Provision for b/d (Old Provision) By Commission | 41,120 600 1,000 800 250 |
| 43,770 | | 43,770 |
Profit & Loss Appropriation A/c
For the year ended on 31.3.2014
Particulars | Amount (Dr) | Particulars | Amount (Cr) |
To Interest on Capital: Preety = 20,000 x 5% Jyoty = 15,000 x 5% To Salaries Preety (300 x 12) To Share of Profit: Preety = 10,850 x 3/5 Jyoty = 10,850 x 2/5 | 1,000 750 3,600 6,510 4,340 | By Net Profit | 16,200 |
| 16,200 | | 16,200 |
Capital Account
Particulars | Preety | Jyoty | Particulars | Preety | Jyoty |
To Drawings To Balance c/d | 4,000 27,110 | 2,500 17,590 | By Balance b/d By Interest on Capital By Salaries By P/L Appropriation A/c | 20,000 1,000 3,600 6,510 | 15,000 750 - 4,340 |
| 31,110 | 20,090 | | 31,110 | 20,090 |
Balance Sheet
Liabilities | Amount | Assets | Amount |
Sundry Creditors Rent Payable Bills Payable Capital Accounts: Preety Jyoty | 10,000 200 2,400 27,110 17,590 | Sundry Debtors 10,000 Less: Provision for b/d 1,000 Furniture Machinery 31,000 Less: Depreciation @ 10% 3,100 Cash in hand | 9,000 10,000 27,900 10,400 |
| 57,300 | | 57,300 |
Q. Following is the Trial Balance of SUDIP AND PRADIP as on 31st March, 2015: (AHSEC 2016)
Trail Balance
Particulars | (Rs.) | Particulars | (Rs.) |
Plant & Machinery Publicity Freight on sales Buildings Goodwill Sundry Debtors Bad debt Cash at Bank Investments Cash in hand Salaries Stock General Expenses Drawings: Sudip = 5,000 Pradip = 3,000 | 35,000 5,000 2,140 69,000 15,000 48,200 1,400 5,620 10,000 170 28,850 10,000 5,500 8,000 | Capital Accounts : Sudip = 50,000 Pradip = 30,000 Trading Account --- Gross Profit Creditors Bank Loan Commission Outstanding Freight Provision for doubtful debt Bills Payable | 80,000 85,700 44,560 21,000 4,420 200 1,000 7,000 |
TOTAL | 2,43,880 | TOTAL | 2,43,880 |
Prepare the Profit & Loss Account and the Profit & Loss Appropriation Account of the firm for the year ended 31st March, 2015 and a Balance Sheet as on that date after taking into consideration the following additional information:
a) Depreciation Plant & Machinery @ 10% p.a.
b) Prepaid Publicity Rs. 500/-
c) Outstanding Salaries Rs. 1,150/-
d) Provide for doubtful debt @ 5% on Sundry Debtors.
e) Partners will get interest on capital @ 5% p.a.
Solution:
Profit & Loss Account
For the year ended 31st March, 2015
Particulars | Amount | Particulars | Amount |
To Depreciation on Plant & Machinery To Publicity 5,000 |
