Solutions aE ae ability that will have to be met by the 1, The discounted bill of exchange which is dishonored. firm, This amount will be debited to Revaluation Ale at the time of retirement of a partner. This liability will be paid through bank, Jou Date Particulars LE] pea | Ce@ Revaluation Ale on 5,000 To Bank Ale 5,000 (Being an unrecorded liability paid by firm) L Income and Expenditure Ale Dr for the year ended 31st March, 2021 cr aes Amount — “Amount @) 3) ‘Match Expenses (10% of & 5,20,000) 52,000 Balance Sheet as at 31" March, 2021 Liabilities Amount Assets oo ® ® Match Fund Opening Balance 3,20,000 ‘Add: Sale of Match Tickets 1,25,000 Add: Donations 75,000 5,20,000 Less: Match Expenses 5,20,000 Nil 3. Journal Date Particulars LE | De® | Ce@ (| Ws Loan Ave Dr. 75,000 To Bank Alc 75,000 (Being W's loan paid off) (ii) | Bank Ave Dr. 1,20,000 To's Loan Ale 120,000 (Being Z's loan received from partner) Note: Entry No. (ji) is as per CBSE sample paper solution and NCERT solution. Sample Papers 145.Income and Expenditure 4’c (an extract) “ De for the year ended 31st March. 2021 re 0) Assets Schscintion omstanding Balance Sheet (an extract) as at 31° March, 2001In the books of Prix Ltd. Journal pate | Particulars De®) Plant and Machinery Ale 5 ‘To Boxer Ltd 1 (Being Plant and Machinery purchased) cans s—s™ Boxer Ltd. = ‘To 9% Debentures A/c To Securities Premium Reserve Ale To Cash Ale (Being 1,727 9% debentures of & 100 issued at a premium ‘of 10% and fraction is paid in cash) 1,90,000 f Debentures issued = 120,000, [No of Debentures issued = yey 190,000 Tig — = 1727.27 Debentures} 1,90,0000 1,90,000 cn @) 1,90,000 1,72,700 17,270 30 Or Date Particulars: Dr. @) Cr @) (| Bank Ae De ‘To Debenture Application and Allotment Ale (Being application money received) To 6% Debentures Alc ‘To Securities Premium Reserve Alc ‘To Premium on Redemption of Debentures A/c (Being debentures issued at premium, redeemable at premium) Debenture Application and Allotment Ale Dr. Loss on Issue of Debentures Ale Dr. To Loss on Issue of Debentures A/c (Being loss on issue of debenture written off) Securities Premium Reserve Alc Dr. Statement of Profit and Loss Dr. (i) | Bank Ave Dr. To Debentures Application and Allotment A/c (Being application money received) Loss on issue of Debentures Ale To 6% Debentures Ale To Premium on Redemption of Debentures Alc (Being debentures issued at discount, redeemable at premium) Debentures Application and Allotment Alc Dr. Dr. Statement of Profit and Loss To Loss on Issue of Debentures Ale (Being loss on issue of debenture written off) Dr. 156,000) 1,56,000 43,500 26,000 19,500 81,000 81,000 27,000 27,000 156,000 130,000 26,000, 45,500 45,500 81,000 90,000 18,000 27,000 Sample Papers 147,I Date Particulars 7 me [com N's Capital Ale Dr. 2) To Profit and Loss Suspense A/c a (Being N’s share of loss debited to his capital account) Working Note: N's share of loss = € 25,000 xB = © 2,000. : Income and Expenditure A/c Dr. {for the year ended 31st March 2021 te Expenditure “on Income Ge To Salaries 9,800 By Subscription 21,400 } Add: Outstanding at the end 1,100 Add: Outstanding at end 1,600 Les: Outstanding in beginning (800) | 10,100} Add: Received in advance To General Expenses “950 last Year 3,200 Less: Prepaid Insurance (150) 800] Less: Outstanding in beginning (2,400) | ‘To Audit Fee 7 350] Less: Received in advance To Secretary Honorarium 5,950 this year (2,500) | 21,300 ‘To Stationery and Printing 450 | By Entrance Fee 5200 ‘To Bank Charges 150] By Profit on Annual Sports Meet 1.800 To Depreciation on Sports Equipment 1,200 (26,000 + € 3,700 - & 28,500) To Surplus 9,300 L 28,300 Balance Sheet as at 31st March 2021 Liabilities Amount a Amount ® mine ®. Capital Fund 1,09,350 Building 7.00000 : “a ae 2300} 1,18,650] sports Equipment 28,500 a eee sat 20,000 | Prepaid Insurance 150 jutstan ie ees 1,100 | Outstanding Subscription 1,600 Subscription in advance sn eee 100 1,42,250 [142,250]| a Balance Sheet as at 31st March 2020 Saloni’s Capital Ale ‘To Sameer’s Capital Ale (Being share of goodwill dist tio) : buted in gaining sabiliti Amount Liabilities ® Assets ‘Amount Goptal Fond (Balancing Figure) 1,09,350 | Building % | 15,050 | Sports Equipment 1.00.00 9 800 | Outstanding Subscription a |__| wa | a) jan ‘% Journal oo it Particulars pe Le | De® | HO | Bad Debts Ale a a | ‘To Debtors Ale : a (Being bad debts written off) : Provision for Doubiful Debts Ale Dr 4000 ‘Jo Bad Debts Ac on (Being bad debts set off from provision for doubtful debts) CL Dr. 1,700 ‘Jo Revaluation Ale 0] (Being provision for oubtful debts reduced to bring at @s% of (& 90,000 - € 4,000) £6 © 4,300) Revaluation Alc Dr. 20,000 ‘To Creditors Ale 20,000 (Being unrecorded credit of € 20,000 recorded) Revaluation Alc Dr. 90000) ww ‘To Patents Alc 60 To Stock Alc ‘Jo Machinery Ae To Building Alc 10,000 (Being revaluation of assetsfliabilities) 7 ‘gameer’s Capital Ale Dr. oe “Yasmin’s Capital Ale De. a saloni’s Capital Ale Dr. 32) spot ‘To Revaluation A/c 5 (Being revaluation loss transfer to capital alc) “Yasmin’s Capital Ale Dr. 120% Dr. 54. 2,16,000Dr. w eee Reserv | Dr 60,00] >> 20,000 Dr. 15,000 | Dr. 15,000 | No Provit and Loss Ale On en ae ee balance distributed among (Being prosit an partners) ee ing Ratio = Sameer: Yasmin Saloni 0 Old Profit Sharing Ratio iS : i fasmin—: Saloni New Profit Sharing Ratio = Yasmin: = 3 ; Gaining Ratio = New Ratio - Old Ratio ‘Yasmin’s New Ratio = 3 Saloni’s New Ratio = Wi) Yasmin’s share of goodwill Saloni’s share of goodwill = %5,40,000 x w = 754,000 Or Dr. Realisation A/c Ce Particulars ‘Amount Particulars To Debtors Ale To Stock Ale Investment Afe To Building Aye To Ammab’s Capitay Ae To Bank Aje To Bank Aje (Exp, 1,70,000 | By Prov ‘sion for Bad Del 1,50,000 | p, 'y Creditor Ale Thvestment Building Stock By Ragin’ Capital Aje By Loss tr Amab Ragini Dhrupaa ‘nsferred to ¢ btors Aj 2,00,000 3,50,000 60,000 ‘Apital Alc 76,200 25,400 25,400Pariners? Capital Ale Cr ana | Rog] Nhe fr ©) ® ® w auteurs Arnab | Rotini | Dhrupad yi Muni llan a ooo} Wash 1,000 J Hy Halance bl ar pest aus vn sn | ae a ont iy Realisation Ale . oe ot ON saa ist 2st 25100 14,000, Bank Ne tNe | Amount Amount © Particulars By Realisation AlC By Dhrupads Loan Ae By Realisation AC py Arnab’s Capital AC Capital Ale By Ragin’s By Dhrupad Capital AE % y «95000 fi) € 19000 2 a ein 109,000 * Tog) %) In. The two objectives of cash flow statement are: ash can be me (i) Measuring of cash inflow of cast and outflow a il from operating activities: investing activites and fr costs the Frure 8 future, A cst AN sgateent Jpronisation s in js finnncins decisions 5 (i) tps in taking finanein deci Ame which helps the manseme of cash is possible.Comparative Statement of Profit and Loss n. for the year ended 3st March 2019 and 2020 ‘Absolute Amount Change Base Year 2019.29 2019-20 | 2020-21 | Absolute Chan; f ge | Perc Particulars wwe ® @ “Uncrease or (Increases ett . Decren Decrease) (ey se) ® A B B-A=C_| GAxim=p 1. Revenue from Operations 25,00,000 | 20,00,000] (500,000) a II. Other Income ba = in - IM, Total Revenue (I + Il) 25,00,000 | 20,00,000] (5,00,000) em IV. Less : Expenses : (a) Employees’ Benefit Expenses 5, ,00,000) (b) Other Expenses aed a aH ae 1,50,000 | 1,00, ss 3.33) ‘Total Expenses (a + b) sealer 7,50,000 | 6,00,000] _1,50,000 20) V. Profit before Tax (III -IV) 77,50,000 | 14,00,000] (350,000) @) VI. Tax Expenses @ 40% 700,000 | 5,60,000| _1,40,000 20) VII. Profit after Tax 10,50,000 | _8,40,000| _2,10,000 (20) Or Common-size financial statements are the statements in which items of Balance Sheet and Statemest ie teee as (or nome Suateem) a0) ob, Oe Neds eee Nee eer expressed into percentages to some common base or common valve, The base is Revenue from Operations in case of Statement of Profit and Loss and total of Balance Sheet in case of Balance Sheet. This is often termed as component percentage or 100% statement. Cash Flow Statement 12. {for the year ended March 31, 2021 Sr. No. [| Particulars ® ® “A. | Cash flows from (or used in) Operating Activities: 20,800 Net Profit before Tax & Extraordinary Items ‘Adjustment for non-cash and non-operating items: |Add: Depreciation Goodwill written off Loss on sale of Investments Interest on 12% Debentures ‘Less: Interest on 10% Govt. Bonds Operating Profit before Working Capital changes Change in Current Assets & Current Liabilities Increase in Inventories Increase in Trade Receivables Increase in Trade Payables Cash generated from Operating Activities Less: Tax Paid Net Cash flows from Operating ActivitiesEaton Investing Activities: Frocceds om safe of Investments 16,090 2.400 (64,000) ter ete | parcl Parehase of Machinery | Nr ens wsed i Investing Activities : (1.55,600 casi flows from (oF used in) Financing Activities: es ; ee of share Capital | tee rDatentrs Tl eae ee anonn| terest paid on Debentures Net Increase in Cash and Cash Equivalent (A + B + C) Cash and Cash Equivalent at the beginning of the year Cash and Cash Equivalent at the end of the period (D + E) 3.000 | 96,000 | Working Notes: : i the year ( 56,000 ~ ¥ 52,000) | | profit fo sade Transfer to Reserve (& 80,000 —¥ 72,000) t “aa: Provsion for tax made Net Profit before Tax and Extra-ordinary items - 10% Government Bonds AJe Cr. [Particulars = a [=e | Jo Balance bid 24,000 | By Bank Alc (Sales Proceeds) ‘To Bank Alc (Purchases) 64,000 | By Loss on Sale (Balancing Figure) By Balance bid 88,000 as Machinery Ale Cr la Particulars. oe Particulars at To Balance b/d 2,64,000 | By Depreciation Alc $8,000 To Bank A/c (Purchases) 120,000 | By Balance cfd 3,36,000 (Balancing Figure) 3,84,000, 3,54,000 Pees Dr. Provision for Taxation A/c Cr . ‘Amount : Amount Particulars a Particulars a ‘To Bank Ale (Tax paid) 4,800 | By Balance bid §,000 To Balance efd 12,000 | By Statement of Profit and Loss 8,800 16,800 16,800 Sample Papers 153.