Solution by Prof.

Kashyap Rajgor
Solution of Book keeping
For the year March 2020 held on 02/03/2020
Q.1
A. Answer in one sentence:
1. A person who draws the bill & sends it to the drawee for his acceptance is called Drawer.
2. Dissolution of partnership firm means complete breakdown of relations among all the
partners & the business is close down.
3. Balance sheet is a statement showing financial position of the business on a particular date.
4. Cash flow statement showing changes in cash and cash equivalent during particular period.
5. Capital receipts are all such receipts which are non recurring in nature & not forming a part of
regular flow of income of a concern
B. Write a word / term / phrase
1. Dissolution / Realisation expenses
2. Gross profit ratio
3. Legacy
4. Nominal
5. Retirement

C. Select the most appropriate alternative

1. 90,000 2. 1881 3. 5:2 4. At Discount 5. 14th August

D. True or False
1. False, 2. True, 3. False, 4. False, 5. True.

E. Format of Bills of Exchange

BILLS OF EXCHANGE

Madhuri Joshi,
STAMP 1,Hari Mandir Road,
Kolhapur
Rs. 12600 Date: 5th November, 2016

Ninety days after date pay to me or my order, the sum of Rupees twelve
thousand six Hundred only for the value received.

To, Accepted for 60 days only Sd/-

Vaishali Babar, Sd/- Madhuri Joshi
2 Miraj Road, (Vaishali Babar)
Sangli Date: 6th November, 2016
 Solution by Prof.Kashyap Rajgor
Q.2 Solution of Single Entry

In the books of Shri Amar

Closing Statement of Affairs as on 31st March 2016
LIABILITIES Amount Assets Amount
Closing Capital 92,245 Cash 4,720
(Balancing figure) Stock 5,125
Bills Payable 7,400 Debtors 20,000
Creditors 8,150 Prepaid Insurance 300
Bills receivable 15150
Premises 42400
Vehicles 20100

Total 1,07,795 Total 1,07,795

In the books of Shri Amar

Particulars Amount Amount

Closing Capital 92,245
Add:
Drawings in Cash 5,000 5,000
97,245
Less:
Opening Capital 70,000
Additional Capital 10,000 (80,000)
Profit Before Adjustment 17,245
Add:
Creditors written off 3,180 3,180

Less:
Interest on Capital
a. Opening capital = 70000 x 5% 3,500
b. Addition capital = 10000 x 5% x 6/12 250
Bad debts 1,000
RDD 570
Depreciation on
Vehicles 2,010
Premises 4,240 11,570
Net profit for the year 2016 8,855

OR
Q.2
(A) Pg.no. 377 of Govt.text Book
(B) Pg.no. 383 of Govt. text Book
 Solution by Prof.Kashyap Rajgor
Q.3 (A) Admission of Partner in a firm

In the Books of Jayesh, Kamal and Vimal

Dr. Partners Current Account Cr.
Particulars Jayesh Kamal Particulars Jayesh Kamal
To Profit and loss 3,750 1,250 By Balance b/d 3,000 2,000
To Revaluation A/c 750 250 By Reserve Fund (3:1) 3,000 1,000
By Goodwill A/c (3:1) 15,000 5,000
To Balance c/d 6500
16,500

Total 162800 134400 Total 162800 134400

Dr. Revaluation Account Cr.

Particulars Amount Particulars Amount
To RDD A/c 1,000 By Stock A/c 10,000
To Building A/c 10,000
By Partners Capital a/c
Jayesh 750
Kamal 250 1,000

Total 11,000 Total 11,000

BALANCESHEET AS ON 1st April 2016 (After Admission)

LIABILITIES Amount ASSETS Amount
Partners Capital Building 60,000
Jayesh 60,000 (10,000) 50,000
Kamal 50,000 Stock 40,000
Vimal 40,000 1,50,000 10,000 50,000
Partners Current
Jayesh 16,500
Kamal 6,500 23,000
Debtors 31,000
- RDD (1,000) 30,000
Creditors 21,000 Bank 64,000
(4000+40000+20000)

Total 1,94,000 Total 1,94,000

 Solution by Prof.Kashyap Rajgor
Q.3 (B) Retirement of Partner

In the Books of Mac, Paul and Sam

Dr. Partners Current Account Cr.
Particulars Mac Paul Sam Particulars Mac Paul Sam
To Profit and loss 9,000 9,000 By Balance b/d 32,000 18,000 16,000
To Revaluation 3,200 3,200 1,600 By Goodwill A/c --- --- 18,000
A/c (Raised)
To Sam’s Loan 32,400

To Balance c/d 19,800 5,800

0

Total 32,000 18,000 34,000 Total 32,000 18,000 34000

Dr. Revaluation Account Cr.

Particulars Amount Particulars Amount
To Plant & Machinery A/c 5,000 By Partners Capital a/c
To Stock A/c 600 Mac 3200
To RDD 800 Paul 3200
To Outstanding Rent 1,600 Sam 1600
8,000

Total 11,000 Total 11,000

BALANCESHEET AS ON 1st April 2016 (After Retirement)

LIABILITIES Amount ASSETS Amount
Partners Capital Plant and machinery 50,000
Mac 19,800 (5,000) 45,000
Paul 5,800 25,600 Stock 10,000
600 9,400

Creditors 18400
Outstanding Rent 1600
Bills payable 3600 Debtors 16,000
Sam’s Loan 32,400 - RDD (800) 15,200
Cash 12,000

Total 81,600 Total 81,600

 Solution by Prof.Kashyap Rajgor
Q.4 Bills Of Exchange

In the Books of Meenakshi

Date Sr. Particulars L/F Debit Credit
No. Amt Amt
2016 1 Neeta A/c……… Dr 40,000 ---
1st To Sales A/c --- 40,000
March (Being Goods sold to Neeta on credit basis)

1st 2 Bills Receivable A/c…….. Dr 40,000 ----

March To Neeta A/c ---- 40,000
(Being Bills is drawn and accepted by Neeta
for 3 months)

31st 3 Neeta A/c…..Dr 40,000 ----

May To Bank A/c ---- 40,000
(Being Discounted bill is dishonored)

31st 4 Neeta A/c…… Dr 600 ----

May To Interest A/c ---- 600
(Being Interest is charged on new Bill @12%
for 2 months on balance amount)

31st 5 Cash A/c…..Dr 30,600 ---

May Bills Receivable (New) A/c…. Dr 10,000 ---
To Neeta A/c ---- 40,600
(Being new bills is drawn and accepted for 2
months along with interest and paid part
payment with Noting Charges)

3rd 6 Bank A/c……Dr 30,600 -----

Aug To Bills Receivable (New)A/c ---- 30,600
(Being new bills is dishonored on insolvency of
Neeta)
Total 1,91,800 1,91,800

Dr Neeta’s A/c Cr
Date Particulars Amount Date Particulars Amount
To Sales 40,000 By Bills Receivable A/c 40,000
To Bills Receivable A/c 40,000 By Bills Receivable A/c 30,600
To Interest received 600 By Cash A/c 10,000
A/c

Total 80,600 Total 80,600

 Solution by Prof.Kashyap Rajgor
Q.5 Dissolution of a Firm

In the Books of Aadesh & Sandesh

Date Sr. Particulars L/F Debit Credit
No. Amt Amt
31st 1 Realisation A/c ……… Dr 52,000 ---
March To Stock A/c --- 21,000
To Debtors A/c 12,000
To Bills receivable A/c 4,000
To Furniture A/c 15,000
(Being Assets transferred to Realisation)

31st 2 Creditors A/c…….. Dr

March Bills Payable A/c ….Dr 15,000 ----
To Realisation A/c 3,000 ----
(Being Liabilities transferred to Realisation) ---- 18,000

31st 3 Bank A/c…..Dr 42,000 ----

March To Realisation A/c ---- 42,000
(Being Assets are sold)

31st 4 Realisation A/c…… Dr 3,000 ----

March To Aadesh Current A/c ---- 3,000
(Being Bills payable takeover by Aadesh )

31st Realisation A/c…..Dr

March 5 To Cash A/c 17,250 ---
(Being Creditors and Realisation expenses ---- 17,250
Paid)

Aadesh Current A/c……Dr 7,350 -----

31st Sandesh Current A/c ….Dr 4,900 -----
March 6 To Realisation A/c ---- 12,250
(Being Realisation loss shared between
partner)

31st 7 Aadesh Capital A/c……Dr 1,350 ----

March Sandesh Capital A/c ….Dr 2,900 ----
To Aadesh Current A/c ---- 1,350
To Sandesh Current A/c ---- 2,900
(Being Current A/c balance transferred to
31st Capital A/c)
March 8 18,650
Aadesh Capital A/c……Dr 11,100
Sandesh Capital A/c ….Dr ---- 29750
To Bank
( Being Final Payment settled with Partner)

Total 1,78,500 1,78,500

Working Note is mandatory which will fetch marks

 Solution by Prof.Kashyap Rajgor

OR
Q.5 B Issue of Shares
In the Books of Akshat Ltd
Date Sr Particulars L/F Debit Credit
.No. Amt Amt
? 1 Bank A/c……… Dr 30,000 ---
To Equity Share Application A/c --- 30,000
(Being 15000 application is received @ 2per
share)

? 2 Equity Share Application A/c …….. Dr 30,000 ----

To Equity Share Capital A/c ---- 20,000
To Bank A/c ---- 10,000
(Being 10000 application is allotted)

Equity Share Allotment A/c …….Dr 40,000 ----

? 3 To Equity Share Capital A/c ---- 40,000
( Being allotment money is due on 40,000
shares @30 per share )

Bank A/c …..Dr 36,000 ----

? 4 Calls in Arrers…Dr 4,000 ----
To Equity Share Allotment A/c ---- 40,000
(Being Allotment money is received in except
1000 shares)
?
5 Equity Share First Call A/c …….Dr 30,000 ----
To Equity Share Capital A/c ---- 30,000
( Being Call money is due on 40,000 shares
@30 per share )
?
6 Bank A/c …..Dr 27,000 ---
Calls –in-Arrears A/c….Dr 3,000 ---
To Equity Share First Call A/c ---- 30,000
(Being Call money is received except on 1000
shares)

Total 2,00,000 2,00,000

Note: In question it is given that “upto Second Call” so based on this word 2nd call
is not made and calls in arrears is from allotment stage..
 Solution by Prof.Kashyap Rajgor

Q.6 NPO

In the Books of Divya Library (Buldhana)

Dr. Income and Expenditure Account for the year ended 31st March, 2016 Cr.
Expenditure Amount Amount Income Amount Amount
To Postage 3,050 By Subscription 90,000
To Electricity 3,490 Less: P/R of 16-17 7,500
To Sundry expenses 5,250 82,500
To Depreciation On Add: O/s of 15-16 3,750 86,250
Furniture 4,325 By Entrance fees 12,500
Books 50,000 54,325 Less: 50% Capitalised (6 250) 6,250
By Sale of Scrap 750
By Hire of Lecture hall 9,000
To Excess of By Interest on 2,000
Income over Securities
Expenditure 38,135
(Surplus)

Total 1,04,250 Total 1,04,250

BALANCESHEET AS ON 31st March, 2016

LIABILITIES Amount Amount ASSETS Amount Amount
Capital Fund 3,45,000 Furniture 36,250
Add: Entrance fees 6,250 Add: Purchased 14,000
Add: Surplus 38,135 3,89,385 50,250
Less: Depreciation (4,325) 45,925

Pre received Investment 25,000

Subscription 16-17 7,500 Add: Invested 50,000 75,000

Books 2,75,500
Add: Purchased 40,000
3,15,500
Less: Depreciation 50,000 2,65,500

Cash Balance 3,210

Bank Balance 3,500
O/s Tuition fees 3,750
(15-16)
Total 3,96,885 Total 3,96,885
 Solution by Prof.Kashyap Rajgor

Q.7 Final Accounts of Partnership

In the Books of M/s Durgesh and Dinesh

Dr. Trading and Profit & Loss Account for the year ended 31st March, 2016 Cr.
Particulars Amount Amount Particulars Amount Amount
To Opening stock 9,000 By Sales 23,600
To Purchases 16,000 Less: Return (900) 22,700
Less: Return (1,100) 14,900
To Wages 1,400
Less: Prepaid (600) 800 By Closing Stock 14,500

To Gross Profit c/d 12,500

Total 37,200 Total 37,200

To Salaries 650 By Gross Profit b/d 12,500
Add: Outstanding 350 1,000 By Discount Received 750
To Discount Allowed 450
To Interest Paid 425
To Printing and 600
Stationery
To Bad Debts 325
Add: New Bad debts 500
Add: New RDD ----
Less: Old RDD ---- 825

To Depreciation On
Land & Building 1250
Plant & Machinery 1100 2,350

To Net Profit transfer

to Capital A/c
Durgesh 3800 7,600
Dinesh 3800

Total 13,250 Total 13,250

 Solution by Prof.Kashyap Rajgor

BALANCESHEET AS ON 31st March, 2016

LIABILITIES Amount Amount ASSETS Amount Amount
Partners Capital A/c Furniture 9,000
Durgesh 17,500 Plant & Machinery 11,000
Add: Net profit 3,800 21,300 Less: Depreciation @10% (1,100) 9,900
Land and Building 25,000
Less: Depreciation @5% 1,250 23,750
Dinesh 17,500
Add: Net profit (3,800) 21,300
Closing Stock 14,500
Sundry Debtors 12,500
Sundry Creditors 14,500 Less: New bad debts (500) 12,000
Outstanding salaries 350 Cash 1,200
Bills payable 3,500 Pre paid wages 600
Bank Loan 10,000

Total 70,950 Total 70,950

Don’t Be afraid of Problems and Failure

Because

‘Nothing Is Permanent’

All the very best for your Beautiful Career.

For further query you can contact: 900-439-2486