OMTEX CLASSES

THE HOME OF SUCCESS

ACCOUNTS TEST

1. Ram, Bharat & Laxman undertook the construction of a Bridge at a contract price of
Rs. 5,00,000 payable in cash Rs. 4,00,000 and in debentures Rs. 1,00,000. They
decided to share the profits and losses in the proportion of their initial contribution.
They opened a joint Bank account wherein they deposited they deposited the
following amounts Ram; Rs. 2,00,000, Bharat; Rs. 2,00,000 & Laxman Rs.
1,00,000.The following payments are made through the Joint Bank Accounts,
Purchases of cement Rs. 2,00,000. Purchases of Steel Rs. 50,000. Payment of wages
Rs. 75,000 and other charges of Rs. 15,000. Ram brings truck of Rs. 60,000. Bharat
brings materials of Rs. 80,000 and Laxman bring over the mixer worth Rs. 20,000.At
the close of the venture, the unused materials were taken over by Ram for Rs.
10,000; Bharat took over the mixer and steel for Rs. 35,000. The truck was sold in
the market for Rs. 40,000. The contract price was received as per the agreement and
Laxman agreed to take over the debentures for Rs. 1,10,000.

2. Satish and Ramesh enter into a joint venture to deal in TV. Sets. Satish is to purchase
TV sets in Mumbai and sent it to Ramesh in Pune. They agreed to share profits and
losses in the ratio of 3:1. Satish purchased 50 TV sets in Mumbai costing Rs. 7000
each and paid Rs. 10,000 as transportation cost. Ramesh received the consignment
and sold all the TV sets at a lump sum price of Rs. 4, 45,000. Ramesh sent a draft of
Rs. 75,000 to Satish as an advance. The expenses incurred by Ramesh were Rs. 6000
to sell the TC sets. Venturer’s settle their accounts. You are requested to open Joint
Venture A/c and Ramesh A/c in the books of Satish.
 OMTEX CLASSES
THE HOME OF SUCCESS
ACCOUNTS TEST
3. From the following information you are required to prepare the Trading account,
profit and loss account and Balance sheet as on 31st March, 2005.
Trial Balance as on 31st March, 2005
Particulars Debit Credit (Rs.)
(Rs.)
Sachin’s Capital 1, 00, 000
Ganguly’s capital 2, 30, 000
Sachin’s Drawing 4, 000
Ganguly’s Drawing 1, 000
Stock on 1 – 1 – 2004 2, 20, 000
Bills Receivable 5, 000
Purchases 2, 95, 000
Sales 2, 00, 000
Bills Payable 1, 60, 000
Return In ward 5, 000
Return Outward 4, 500
Plant and Machinery 1, 00, 000
Loose Tools 24, 000
Patents 25, 000
Sundry Debtors 1, 25, 000
Sundry Creditors 2, 40, 000
Cash at Bank 77, 550
Wages 19, 000
Salaries 17, 500
Rent and Taxes 7, 950
Insurance 3, 000
Printing and 2, 000
Stationery 3, 500
Power and Fuel 9, 34, 500 9, 34, 500
Adjustment
1. Stock on 31st March, 2004 is valued at Rs. 30,000 but is market value is Rs. 35,000.
2. Depreciate plant and machinery @ 5% p.a. Patents by 20%.
3. Insurance were prepaid for Rs. 200.
4. Salaries outstanding amounted to Rs. 800.
5. Maintain Reserve for Doubtful debts at 10% of Sundry debtors.
6. Goods worth Rs. 5000 were destroyed by fire and the insurance company admitted a
claim for Rs. 3000 only.
7. Sachin has withdrawn goods worth Rs. 500 for his own use, but no entry is passed in
the books.