Q1. During 2016-17, its first year of operations as a delivery service, Vimal Corp.

entered into the

following transactions.

1. Issued shares of common stock to investors in exchange for Rs 100,000 in cash.

2. Borrowed Rs 45,000 by issuing bonds.
3. Purchased delivery trucks for Rs 60,000 cash.
4. Received Rs 16,000 from customers for services performed.
5. Purchased supplies for Rs 4,700 on account.
6. Paid rent of Rs 5,200.
7. Performed services on account for Rs 10,000
8. Paid salaries of Rs 28,000.
9. Paid a dividend of Rs 11,000 to shareholders.

Show the effect of each transaction on the accounting equation.

Q2. A tabular analysis of transactions made during August 2018 by Oswal Company during its first
month of operations is shown below. Each increase and decrease in stock holders’ equity is
explained.

a. Describe each transaction

b. Determine how much stockholders’ equity increased for the month.
c. Compute the net income for the month.

Assets Liabilities + Stockholders' Equity

= Accounts Common Retained Earnings
Cash A/R Supplies Equip Payble Stock + Rev. - Exp. - Div.
Com.
1 20,000 20,000 Stock
2 -1,000 5,000 4,000
3 -750 750
4 4,100 5,400 9,500 Ser. Rev.
5 -1,500 -1,500
-
6 -2,000 2,000
Rent
7 -800 -800 Exp.
8 450 -450
-
9 -3,000 3,000 Sal. Exp.
10 300 -300 Util. Exp.
Q3. The following items and amounts were taken from Solveda Inc.’s 2018-19 income statement and
balance sheet.

Accounts
Cash 84,700 Receivable 88,419
Retained Earnings 123,192 Sales revenue 584,951
Cost of goods sold 438,458 Notes Payble 6,499
Salaries and wages expense 115,131 Accounts payble 49,384
Prepaid insurance 7,818 Service revenue 4,806
Inventory 64,618 Interest expense 1,882

a. In each case, identify on the blank line whether the item is an asset (A). Liability (L),
Stockholders’ equity (SE), revenue (R), or expense (E) item.
b. Prepare an income statement for Solveda Inc. for the year ended March 31, 2019.

Q4. Here are incomplete financial statements for Rolta, Inc.

ROLTA, INC.
Balance Sheet
Assets Liabilities and Stockholders' Equity
Cash 7,000 Liabilities
Inventory 10,000 Accounts payble 5,000
Buildings 45,000 Stockholders' equity
Total Assets 62,000 Common stock (a)
Retained earnings (b)
Total liabilities and stockholders' equity 62,000

Income Statement
Revenue 85,000
Cost of goods sold (C )
Salaries and wages expense 10,000
Net income (d)

Retained Earnings Statement

Beginning retained earnings 12,000
Add: Net income (e )
Less: Dividends 5,000
Ending retained earnings 27,000
Q5. On June 1, Apollo Service Co. was started with an initial investment in the company of Rs 22,100
cash. Here are the assets, liabilities, and common stock of the company at June 30, and the revenues
and expenses for the month of June, its first month of operations:

Cash 4,600 Notes payble 12,000

Accounts receivable 4,000 Accounts payble 500
Service revenue 7,500 Supplies expense 1,000
Supplies 2,400 Maintenance and repairs expense 600
Advertising expense 400 Utilities expense 300
Equipment 26,000 Salaries and wages expense 1,400
Common stock 22,100

In June, the company issued no additional stock but paid dividends of Rs 1,400.

Prepare an income statement and retained earnings statement for the month of June and a balance
sheet at June 30, 2014.

Q6. Brand Rover Ltd. prepared a list of ledger balances as on 31st March 2017. You are
required to prepare a trial balance for the business on the same date.

Particulars Amount ₹
Sale of goods 156,700
Purchase of material 96,800
Rent 54,900
Insurance 26,450
Salaries 68,650
Advertising 30,980
Goodwill 72,600
Stock 32,780
Bank balance 9,260
Furniture and Fixtures 95,800
Bank loan 24,750
Plant and Machinery 209,340
Provision for depreciation 5,640
Building 183,560
Trade debtors 23,600
Trade creditors 18,500
Reserves and surplus 101,280
Share Capital 597,850
Use the following format for a trial balance-

Particulars Debit Credit

(Rs.) (Rs.)

Q7. FSE: Given below is the list of items derived from the ledger of Ms. FSE Ltd. You are
required to prepare the trial balance for the company. Prepare the P&L, Balance sheet for the
company.

Amount
Particulars
₹
Sales 239,680
Purchases 104,750
Rent 59,600
Insurance 37,800
Salaries 92,400
Plant & Machinery 100,000
Stock 31,500
Bank balance 8,200
Computers 95,800
Loan from bank 15,860
Provision for depreciation 6,640
Motor Vehicles 85,000
Trade debtors 22,890
Creditors 19,760
Capital 356,000

Q8. Maggi Ltd. prepared a list of ledger balances as on 31st March 2017. You are required to
prepare a trial balance for the business on the same date. Also prepare the P&L for the company.

Particulars Amount ₹
8.5% Convertible Debentures 317,952
Plant and Machinery 467,912
Equity Share Capital 1,150,000
9% Preference Share capital 523,488
Provision for depreciation 18,768
Building 478,492
Trade debtors 33,718
Computer and hardware 106,628
Trade creditors 175,214
Reserves and surplus 70,380
Sale of goods 207,552
Purchase of material 182,988
Rent 99,682
Insurance 27,278
Salaries 149,408
Advertising 70,739
Stock 100,998
Bank Overdraft 83,315
Furniture and Fixtures 828,828
Total 5,093,341