Output GST Current Liability (ii) Input GST Operating Profit, Gross Profit, Net Profit Gross Profit, Operating Profit, Net Profit Gross Profit, Net Profit, Operating Profit “Sunil gets a definite sum every month from the organisation for meeting small expenses. It's balance is found at the end of each month to restart for next month. The amount to be paid to ‘Sunil at the beginning of every month is known as amount. During the accounting period 2021-22, Udit had total sales of Rs.6,00,000, out of which 2/3rd is for cash and balance on a credit for 2 months. The total expenses were Rs.2,80,000 out of which Rs.70,000 are still outstanding. He also paid Rs.10,000 (apart from the Rs.2,80,000 given previously) for expenses related to 2023-24. Calculate his income as per ‘Cash Basis’ of accounting. What will be the effect on the trial balance if Rs.5,000 are received as rent and correctly entered in the books but not posted to rent account? (a) _ Debit side of trial balance will exceed by Rs.5,000. (b) Credit side of trial balance will exceed by Rs.5,000. (c) _ Debit side of trial balance will decrease by Rs.5,000. (d) Credit side of trial balance will decrease by Rs.5,000.,000. Gross Profit 25% on cost. Calculate cost of Goods sold. e. ine is purchased on April 1, 2021. On 31st March, 2022 the value of the machinery is ,000 after charging depreciation @10% according Reducing Balance Method. What is e cost of machinery as on April 1, 20217 ‘Mr Jaspal Singh dealing in electronic goods sold 20 TV sets costing % 30,000 each at 40,000 each. Out of this % 5,00,000 were received in cash and the balance is not yet received. State the amount of revenue. Given below are the 2 statements one labelled as Assertion (A) and other labelled as Reason (R) Which of the following is correct? Assertion (A) : GST is credited along with purchase A/c if the goods are withdrawn for personal consumption. Reason (R) _: In case of drawings in goods, GST paid cannot be set off against GST collected Under the Companies Act all companies are to- (a) Cash basis (b) (©) __ Either cash or accrual basis Given below are the 2 statements one labelled as Assertion (A) and other labelled as Reason (R) Which of the following is correct? Assertion (A) : A provision is created out of a legal necessity where's the reserve is created as matter of prudence. + A provision is an appropriation of profit whereas the reserve is a charge against profit. (2) Both (A) and (R) are true and (R) is the correct explanation of (A) () Both (A) and (R) are true but (R) is not the correct explanation of (A) (©) (A)Is true, but (R) is false (4) _ (A)Is False, but (R) is true Prepare Accounting equation from the following transactions of Kavi . 1. The following balances appeared in the books of Kavi on 1/1/22 required to maintain their accounts according Accrual basis Reason (R) Cash in hand Rs.5,000, Furniture Rs. 10,000 , Stock Rs.5,000, Mehak (Debtor) Rs.8,000 , Outstanding salary Rs.2,000 Garima (Creditor) Rs. 3,000 Mehak paid Rs.5,000 on account. Depreciate furniture by Rs. 1,000. Paid insurance premium in advance Rs. 1,000. Paid Rs.2000 for outstanding salary. OR (3)aan Investments 2,00,000 " oe Opening stock 50,000 Purchases 2,00,000 Discount received 1500 Carriage inward 1500 Interest on investments 20,000 Capital 4,05,000 QPB_ Enter the following transactions in the cash book with cash and bank column: 2022 Mayt Cashin hand 40,000 Bank overdraft % 12,000 May 3 Bought goods from Ajit for Z 20,000 less 10% trade discount. May § Sold goods to Kapil for 25,000 less 20% trade discount. May7 Settled the account of Ajit under 5% cash discount by issuing cheque. May.9 Kapil was offered 10% cash discount to pay by 10th May. He paid only 60% amount. May11 Paid for household expenses by cheque Rs.4000, May13 Deposited cash into bank @ 8000. May15 Received cheque from Kapil for the balance amount due. May18 Cheque received from Kapil was endorsed to Sanjay in full settlement of € 8500. (4) Q.24 The following balances appear in the books of X Ltd. as on 1st April 2021 Machinery account % 5,00,000 Provision for depreciation account 2,25,000 The machinery was depreciated at 10% p.a. on the fixed instalment method- the accounting year being April — March. | On 1#October,2021 , a machinery which was purchased on ‘st July 2018 for €1,00,000 was : sold for Rs 42,000 and on the same date a fresh machinery was purchased for Rs 2,00,000. Prepare the machinery Alc and Provision for depreciation A/c for the year 2021- 22. (4) OR of The following balances appear in the books of ABC Ltd. as on 1st April 2021 Machinery account % 8,00,000 Provision for depreciation account 3,18,000 ‘On 1*April 2021 they decided to sell a machine for €34,500. This machine was purchased for % 1,20,000 on 1"January,2017. ‘ Show the Machinery A/c and Provision for depreciation A/c for the year 2021- 22 assuming the firm has been charging depreciation at 10% per annum on the straight-line method. (4) aQ28 Less: Trade Discount 20% (4) Net sales during the year 2020 is € 3,00,000. Gross profit is 25% of cost of 3496 sold. Find out gross profit and cost of goods sold (4) Delta house has following balances in its GST account: iii Particulars IGST(Rs) CGST(Rs) ‘SGST(Rs) Input GST 4,25,000 1,50,000 1,50,000 Output GST 2,87,500 1,00,000 1,00,000 Show how input GST will be adjusted against Output GST. Pass the Journal entries for set - off of GST. (4) ‘Sohan maintains a current account with PNB. On 31* March, 2021 the bank column of Cash book showed a credit balance of Rs. 21,000 in his current account. From the following Information, prepare Bank Reconciliation Statement 4. Abill receivable for Rs.520 previously discounted with bank had been dishonoured and bank charges debited in the passbook amounted to Rs.55. 2. Out of the total cheques amounting to Rs.50,000 deposited, cheques aggregating Rs. 15,000 were credited in March, cheques aggregating Rs 20,000 were credited in April, and the rest have not been collected. 3. The payment side of the cash book had been undercast by Rs 1500. 4 cheque for Rs.7500 drawn on his savings account has been shown as drawn on his current account in the cash book 5. A cheque of Rs.2000 received from Raj on 20" March ,2021 was recorded in the 6. discount column of cash book and was not banked. Rs.40 for bank charges were recorded two times in the cash book and bank expenses of Rs.35 were not at all recorded in the cash book. 6) OR From the following information, prepare bank reconciliation statement if bank column (Current Account) of the cash book of Kapil showed debit balance of Rs.30,000 as on 30th April 2020. 1. Bank collected Rs.4000 as compensation from insurance company. Bank charged Commission of Rs 200 for this service. Both were not recorded in the cash book. The debit balance of Rs.3000 as on the previous day was carried forward as a credit balance in the cash book. A cheque of Rs.900 credited in the Pass Book on 28th April being dishonoured, is debited again in the Pass Book on 1st May, 2020. There was no entry in the Cash Book about the dishonour of the cheque until 15th May. Cash discount allowed Rs.220 was recorded on the debit side of the bank column, Cheque for Rs. 1000 deposited in savings account has been shown as deposited in current account in the Cash Book . Out of the cheque issued of Rs.7,500 cheques of Rs.5000 were presented for payment till 30th June 2020. Out of the cheques presented for payment, one cheque of Rs.700 was not honoured as the amount of the cheque in figures and words differed. No entry for the dishonour was passed in the cashbook © 4credited. . Sale of old furniture of R: 2,500 was credited to sales account as Rs. 250. . Goods returned to Tushar Rs.8,000 were posted |. Credit sale to Raju Rs. 3,000 were recorded in the account was correctly debited. . Goods returned to Rakhi for Rs. 720 recorded in Rakhi's account was correctly debited. Rs. 550 and Sunil with Rs.450. 34//On 1#April,2019, Z Ltd. purchased a plant for @ 5. 6. Payment of & 450 to Manish and & 550 to to credit of Rahul as Rs. 7,000. Purchase Book. However, Raju's the Sales Return Book. However, ‘Sunil was made but Manish was debited with (6) (00,000. On 1October in the same year additional plant costing & 2,00,000 was purchased. On 1% October, 2020, the Plant purchased on 1% April 2019, having become obsolete was sol new plant was purchased for 8,00,000 and on thi 2019 was sold for Rs 1,70,000. The firm cost on 31st March every year. You are required to show Plant accou 2022. OR original machine (purchased on 1“April, become obsolete and was sold {Accounts are closed on 31st March ea scrap % 500. On the same date purchased for @ 8,000, Depreciation is to be charged @10% per annum on written down value. ich year. Show the machinery account for the first 3 .e same date Plant purchased on Id off for € 2,65,000. On 1st July 2021, 2 4*October, provides depreciation @10% per annum on original int for the 3 accounting years ending 31st March @ 2.31. Ont*April 2019, A Ltd. company purchased Machinery for % 1,20,000 and on 30"September, 2020, it acquired additional machinery for Rs 20,000. On 30" November, 2021, one of the 2019) which had cost % 5,000 was found to have fe, a new machine was years. 8) @.32 On31 March,2022, the following Trial Balance of Mr. X was taken out Debit Balances ‘Amount(Rs) | Credit Balances ‘Amount(Rs) | [Drawings 6,000 | Sundry Creditors 40,000 ant and Machinery 25,000 | Sdles- + +-20,000 fpening Stock 15,000 issn Outwards- 4-000 jurchases « , fovision for Doubtful Débts 200 feturn Inwards — 4,000 sundry Debtors 41200 Leumiture and Fixtyses | yeseiaht 80,000 | A bariage Outward | ent and Rates |count on Debtors at 2%. : i. iiture and Fixtures at 5% per annum. a oe t: a | Mi ry includes a Machinery purchased on 1* October'21 for 2 5,000. 3 iate plant and machinery @ 20% per annum. HA fire ‘on 25" March, 2022 in the Gadown and stack of the value of 25, "destroyed. It was fully insured, and the insurance company admitted the claimin full. (8) oR Q.32 From the following trial balance of Mr Rajeev, prepare a Trading and Profit and Loss account for the year ending 31% March, 2022 and a Balance Sheet as at that date: Debit Balances ‘Amount(Rs) | Credit Balances ‘Amount(Rs) ‘Wages 30,525 | Loan at 12% (01.07.2021) 20,000 ~ | Purchases 1,30,295 | Creditors 30,305 Retums inward 2,400 | Discount 530 Repairs 4,675 | Capital 37,500 Bad Debts 2,310 | Sales 1,80,500 Interest on loan 600 | Returns outward 195 Rates and Taxes 800 Octroi 500 Insurance 4,000 Charity 125 Rent 2,000 Machinery 16,000 Debtors (including Shyam 30,000 for dishonoured bill of 7800) Cash in hand 10,000 Opening stock 40,800 Adjustments: ‘1 wages include ® 2,000 for erection of New Machinery on 31% March, 2022 2 Stock on 31* March, 2022 was € 40,925, 3 Provide depreciation on Machinery @ §% per annum. 4 wages unpaid % 800 5 Half the amount of Shyam's bill is irrecoverable, 6 Create Provision at 5% on other Debtors. 7 Rent paid up to 31" July ,2022, 8 Insurance unexpired & 300 peer eer arees