Assignment 1 (Accountancy)

Issued Date: February 4, 2020

Submission Date: March 4, 2020 for all the Branches.
Q.1 Anwar started business with:
i. Cash……………………………………….20,000
Goods…………………………………….12,000
Machinery……………………………..8,000
ii. He purchased goods………………………………..5,000
iii. Sold goods(Costing Rs.2,000) for Rs……………………..2,500
iv. Purchased goods on credit…………………………………….7,000
v. Payment made to creditors in full settlement…………………………….6,900
vi. Sold goods on credit(Costing Rs.5,400)………………………….6,000.
vii. Payment received from debtors…………………………….5,800
Discount allowed…………………………………………………….200
viii. Salaries paid…………………………………………………….4,000
ix. Wages outstanding……………………………………400
x. Prepaid insurance……………………………………..100
xi. Rent received………………………………………..300
xii. Amount withdrawn for personal use…………………………………3,000
xiii. Interest on drawings………………………………….200
xiv. Depreciation on machinery………………………….800
xv. Purchased goods on credit…………………………….17,000.
Make Journal,Ledger and Trial Balance for the above business transactions.

Q.2 Following balances were extracted from the books of Shri Rajesh on 31 st Dec. 2019.
Name of Account Amount Name of Account Amount
Capital 24,500 Bad debts 550
Drawings 2,000 Sales 65,360
General Expenses 2,500 Purchases 47,000
Building 11,000 Scooter 2,000
Stock 16,200 Bad debts provision 900
Power 2,240 Bills Payable 3,850
Insurance 1,315 cash 80
Wages 7,200 Bank Overdraft 3,300
Debtors 6,280 Charity 105
creditors 2,360
Closing stock amounted to Rs. 23,500.
Prepare Trading A/C,Profit and Loss A/c and Balance Sheet for the year ended 31 st Dec.2019.

Q.3 From the following Trial balances of Pradip,Prepare Trading A/c, Profit&loss A/c and Balance sheet as on 31 st Dec.2019.
Name of Account Debit Amount Name of Account Credit Amount
Furniture and fittings 7,700 capital 1,05,000
Bills Receivables 10,000 Commission 9,000
Debtors 76,720 sales 1,30,000
Cash in hand 5,250 Return outwards 2,570
interest 3,400 Bank overdraft 10,000
wages 27,890 creditors 25,320
goodwill 25,000
carriage 1,720
salaries 5,000
insurance 600
Opening stock 38,500
Audit fee 1,000
Law costs 710
drawings 13,200
purchases 61,900
repairs 3,300
Closing stock was valued at Rs. 12,560.
Q.4 From the following Trial Balances of Shri R. Rajan,prepare Financial Statement for the year ended 31 st march 2019 with the
adjustments given below:
Trial Balance
As on 31st March 2018
Heads of Accounts Dr. Amt. Cr. Amt.
R. Rajan’s Capital 2,90,000
S. Rajan’s Drawings 7,600
Purchases and Sales 89,000 1,50,000
Sales and purchases return 2,800 4,500
Stock(1st April,2018) 12,000
Wages 8,000
Building 2,20,000
Freight and Carriage 20,000
Trade expenses 2,000
Advertisement 2,400
Interest 3,500
Taxes and Insurance 1,300
Debtors and Creditors 65,000 12,000
Bills receivable and Bills payable 15,000 7,000
Cash at bank 12,000
Cash in hand 1,900
Salaries 8,000
TOTAL 4,67,000 4,67,000
Adjustments:
i. Stock on 31st March,2019 was valued at 15,000.
ii. Insurance was prepaid to the extent of 400.
iii. Outstanding liabilities were : salaries 2,000 and taxes 1,300
iv. Depreciate Building at 2% p.a.

Q.5 Trial balances of a business as on 31st March, 2019 is given below:

Debit balances Amount Credit balances Amount
Stock(1.04.2018) 25,000 sales 2,27,800
Furniture 8,000 commission 500
Plant and machinery 1,40,000 Return outwards 1,000
Additions to paln and 10,000 creditors 40,000
machinery(1.10.2018)
debtors 30,000 capital 1,50,000
wages 12,000
salaries 20,000
Bad bedts 1,000
purchases 1,20,000
Electricity charges 1,200
Telephone charges 2,400
General expenses 3,000
Postage and telegrams 1,800
Return inwards 900
Insurance premium 1,500
Cash in hand 2,500
Cash at bank 40,000
Total 4,19,300 4,19,300
Prepare trading and profit &Loss Account and Balance Sheet for the year ended 31 st March,2018 after taking into account the
following adjustments:
1. Closing stock valued at 7,000.
2. Outstanding liabilities for wages 600 and salaries 1,400.
3. Deprecation is to be provided @5%p.a. on all fixed assets.
4. Insurance premium paid in advance 200.
Q.6 On 31st march 2018 following trial balance was extracted from the books of Mohan:
Particulars Amount Amount
Capital 30,000
Drawing 5,000
Debtors and creditors 20,000 10,000
Loan 9,500
Interest on loan 300
Cash 2,000
Provision for doubtful debts 700
Opening stock 6,800
Motor vehicles 10,000
Bank 3,500
Land and buildings 12,000
Bad debts 500
Purchases and sales 66,000 1,10,000
Returns 8,000 1,500
Carriage outwards 2,500
Carriage inwards 3,000
Salaries 9,000
Rent and Insurance 3,000
Advertisement 3,500
Discount 500
General expenses 3,400
Bills Receivables and Bills Payable 6,000 2,000
Rent Received 300
TOTAL 164500 164500
Prepare Trading Account, Profit and Loss account and Balance Sheet as on 31 st march 2019 by taking into account the following:
1) Depreciate land and building @2.5% p.a. and motor vehicles at 20% p.a.
2) Salaries outstanding Rs. 200.
3) Prepaid insurance Rs. 200.
4) Provision for doubtful debts has to be maintained @ 5% on debtors.
5) Closing stock was valued at Rs.7,000.

Q.7. What are Liquidity ratios, Solvency ratios and Profitability ratios?Why these ratios are calculated in Accountancy?

Q.8. What characteristics an entrepreneur must have? Also write about an entrepreneur who inspires you. Give details about his
business/ start up and what are the qualities which made him a successful businessman/woman.