Thakur College of Science and Commerce

Book-keeping and Accountancy

Question Bank

Chap 01

Sharad and Vipul are partners sharing profits and losses in the ratio 3/5 and 2/5 respectively. From
the following Trial Balance and Adjustments, prepare Trading, Profit and Loss Account for the year
ended 31​st​ March, 2019 and Balance Sheet as on that date.
Trial Balance as on 31.3.2019
Debit Balances Rs Credit Balances Rs
Land and Premises 1,70,000 Sales 1,65,000
Plant Capital accounts:
(Addition on 1.2.2019, Rs. 90,000 Sharad 1,32,000
20,000) Vipul 88,000
Drawings accounts: 6,000 Creditors 81,900
Sharad 4,000 Bank Overdraft 80,000
Vipul 2,100 Reserve for doubtful debts 2,000
Carriage 6,500 Outstanding expenses 4,600
Cash at Bank 3,200 Sundry income 4,000
Trade expenses 44,000 Pre-received rent 5,000
Opening Stock 69,200 10% Bank Loan
Book debts 1,22,500 (Taken on 1​st​ Nov, 2018) 36,000
Purchases 13,500
Wages 4,500
Rent, rates and insurance 50,000
Furniture 7,600
Salaries 5,400
Office expenses 5,98,500 5,98,500
Adjustments;
1. Stock in hand is valued at Rs.34,000 while its Market value is 38,000.
2. Depreciate Plant @ 9% p.a.
3. Insurance Rs.2000 is paid for one year ending on 30​th​ June, 2019.
4. One of our customers Mr. Suresh refused to make payment of Rs. 3,200 and ultimately
resulted in bad-debt.
5. Office expenses include personal expenses of Vipul Rs. 800.

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Chap 02
Following is the Balance Sheet as on 1.4.2018 and the Receipts and Payments Account for the
year ending 31.3.2019 of Young India College, Mumbai.
Balance Sheet as on 1.4.2018
Liabilities Rs Assets Rs
Capital Fund (Balancing 12,18,00 Building 9,00,000
figure) 0 Furniture 1,20,000
Books 60,000
Bank deposits 1,00,000
Tuition fees Outstanding 10,000
Cash in Hand 19,000
Cash at Bank 9,000
12,18,00 12,18,00
0 0
Dr Receipts and Payments Account for the year ending 31.3.2019 Cr
Receipts Rs Payments Rs
To Balance b/d 9,000 By Salaries:
Cash in Hand 19,000 Teachers 1,80,000
Cash at Bank Staff 30,000
To Tuition fees By Books purchased on
2017-18 9,000 1.1.2019 20,000
2018-19 ​1,71,000 1,80,000 By Printing and Stationary 11,000
To Fine Collected 5200 By Office Rent 30,000
To Admission Fees 20000 By Repairs to Jr. College
To Donations 100000 building 34,000
To Interest on Bank Deposits 5000 By Sports expenses 8,600
To Government grant 200000 By Annual gathering
(Revenue) expenses 14,000
By Furniture (Purchased on
1.1.2019) 80,000
By Balance c/d
Cash in Hand 2,600
Cash at Bank 1,28,000
5,38,200 5,38,200
Additional Information:
1. Tuition fees for the current year are still pending Rs. 9,000.
2. Donations are to be capitalized.
3. Salary to Teachers is outstanding Rs.20,000
4. Depreciate Books @ 20% p.a. and Furniture @ 10 p.a.
You are required to prepare:
a) Income and Expenditure Account for the year ending 31.3.2019
b) Balance Sheet as on 31.3.2019.

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Chap 03
Atul and Sumit are partners sharing profits and losses in their capital ratio. Their Balance Sheet as
on 31-3-2018 was as follows.
Balance Sheet as on 31-3-2018
Liabilities Rs Assets Rs
Capitals: Goodwill 30,000
Atul 72,000 Stock 18,000
Sumit 18,000 Equipments 25,000
Reserve Fund 30,000 Debtors 40,000
Creditors 13,000 Cash 27,000
Bills Payable 7,000

1,40,000 1,40,000
They agree to admit Rutwik on the following terms:
1) The Goodwill is to be written off after admission of Rutwik.
2) Stock is undervalued by 10% and it is to be adjusted properly.
3) A customer of Rs.1,000 was unable to clear his debt and his account should be adjusted.
4) Rutwik will introduce Rs.40,000 for 1/5​th​ share for the firm which he acquires from
Atul and Sumit.
5) Atul withdrew Rs.20,000 from the business for making payment to his carpenter for
his house work.
Prepare Profit and Loss Adjustment A/c, Partners Capital A/c and New Balance Sheet after
considering the scheme of Admission.

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Chap 04
Dharia, Desai and Parekh are partners sharing profits and losses in the ratio 2 : 2 : 1.
Their Balance Sheet as on 31-3-2019 was as follows.
Balance Sheet as on 31-3-2019
Liabilities Rs Assets Rs
Creditors 12,000 Cash in Hand 3,750
P & L Account 15,000 Debtors 18,000
Outstanding Expenses 7,500 Stock 15,000
Capitals: Building 22,500
Dharia 37,500 Plant 10,500
Desai 30,000 Vehicle 30,000
Parekh 15,000 Goodwill 17,250
1,17,000 1,17,000
On the above date, Dharia retired and following adjustments were agreed upon:
1) Goodwill was revalued at Rs. 15,000.
2) Assets and Liabilities were revalued as under:
Debtors Rs.15,000, Stock at 90% of Book value, Plant Rs. 9,000,
Building Rs. 37,500, Outstanding Expenses Rs.4,500, Vehicles Rs.28,500.
3) Desai and Parekh contributed additional capital of Rs.15,000 and Rs. 7,500
respectively.
4) Balance due to Dharia is transferred to his Loan A/c after paying him Rs.16,800.
Prepare:
1) Profit and Loss Adjustment A/c,
2) Partners Capital A/c and
3) Balance Sheet of the firm.

Chap 05
Mr. A, B and C are partners sharing profits and losses in the ratio 3 : 2 : 1. Their Balance Sheet as
on 31-3-2019 was as follows.
Balance Sheet as on 31-3-2019
Liabilities Rs Assets Rs
Capitals: Debtors 32,000
A 35,000 Stock 20,000
B 25,000 Equipments 25,000
C 15,000 Cash in Hand 5,000
Creditors 8,000 Profit and Loss 6,000
Bills Payable 6,000 Goodwill 3,000
Bank Overdraft 2,000
91,000 91,000
th​
Mr. B died on 30​ June, 2019 and following adjustments were agreed upon:

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1) Appreciate stock by 5% and write off Equipments by 10%.

2) Provide RDD on Debtors @ 10%.
3) Drawings of Mr. B amounted to 1/5​th​ of his opening Capital contribution.
4) Interest on Capital is allowed 10%p.a. and charge interest on Drawings @ 8 % p.a.
5) The goodwill of the firm is to be valued at 1 ½ years purchase of average profits of last
5 years. The profits were:
Years 2013-14 2014-15 2015-16 2016-17 2017-18
Amount (Rs) 12000 8000 (loss) 6000 14000 6000 (loss)
6) Mr.B’s share in profit to the date of death to be calculated on the basis of average
profit of last 2 years.
Prepare:
1) Profit and Loss Adjustment A/c, 3) Working of share of profit due to Mr. B
2) Capital A/c of Mr B. 4) Working of share of goodwill due to Mr. B

Chap 06
Rajesh and Suresh were partners sharing profits and losses in the ratio 3:2. Their Balance Sheet
as on 31-3-2019 was as follows.
Balance Sheet as on 31-3-2019
Liabilities Rs Assets Rs
Capitals: Debtors 56250
Rajesh 115,000 (-) RDD ​6250 50000
Suresh 75,000 Stock 1,12,500
Reserve Fund 15,000 Furniture 25,000
Sundry Creditors 12,500 Motor Car 37,500
Bank Overdraft 20,000 Cash in Hand 12,500
2,37,500 2,37,500
The firm was dissolved on the above date and the assets and liabilities realized as follows:
Debtors Rs.45,000, Stock Rs1,00,000 and Goodwill Rs.12,500.
1) Motor Car was taken over by Rajesh for Rs35,000 and Furniture by Suresh for Rs30,000.
2) The creditors were paid Rs1250 less
3) The realization expenses were Rs. 5000.
Pass necessary journal entries in the books of firm.

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Chap 07
Mona sold goods on credit to Sonal for Rs.14,000. Mona drew a bill on Sonal for three months for
Rs. 8000 and the same was accepted by Sonal who paid the balance amount by cheque.
On the due date the bill was dishonoured and noting charges amounted to Rs.40 paid by Mona.
Sonal paid half the bill and full amount of noting charges and accepted a new bill for the balance
including interest @12%p.a. for an extended credit period of two months. These arrangements
were carried through.
On the due date Sonal became insolvent and only forty paisa in a rupee could be recovered from
her private estate.
Give journal entries in the books of Mona.

Chap 08
Nilofer Co. Ltd. made an issue of 80,000 equity shares of Rs. 20 each, payable as follows”
Application : Rs.5 per share Allotment : Rs.10 per share
First Call : Rs.3 per share Final Call : Rs.2 per share
The company received applications for 85,000 shares of which applications for 5000 shares were
rejected and the money refunded. All the shareholders paid upto Final Call except Meenal, the
allotee of 4000 shares, failed to pay the final call.
Pass Journal entries for the above transactions in the books of Nilofer Co. Ltd.

Chap 09
From the following Balance Sheet of Mr. Anand as on 1st April 2018 & 31st March 2019.
prepare the Common Size Statement and Comparative Statement.
Liabilities 1-04-18 31-03-19 Assets 1-04-18 31-03-19
(​Rs.​) (​Rs.​) (​Rs.​) (​Rs.​)
Capital 1,48,000 1,49,000 Stock 25,000 22,000
Sundry Creditors 36,000 41,000 Debtors 35,000 38,400
Long Term Loan 30,000 45,000 Cash 4,000 3,600
Buildings 50,000 55,000
Machinery 80,000 86,000
Land 20,000 30,000
2,14,000 2,35,000 2,14,000 2,35,000

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