Final Accounts Revision Questions

1. Ajay and Vijay are partners sharing profits and losses equally.
Particulars
Debit
Particulars
Credit
Opening Stock
15000
Capital Account

Purchases
45700
Ajay
40000
Wages
9900
Vijay
25000
Investments
3500
Bills Payable
6000
Carriage  Outward
4600
Outstanding Salaries
1700
Printing and Stationery
3400
Sales
79800
Insurance
750
creditors
2000
salaries
10000
Bank Overdraft
3000
Postage and Telegram
700


Machinery
16800


Furniture
6400


Debtors
25000


Bills Receivable
4000


Cash at Bank
6000


Advertisement
1000


Bad debts
250


Carriage Inward
4500


i. Closing Stock was valued at Rs. 40, 200.
ii. Goods of Rs. 4000 were burnt by fire and Insurance company admitted the claim of Rs. 3200.
iii. Prepaid Insurance was Rs. 200.
v. Depreciate Machinery by 10% and Furniture bby 15%.
vi. Outstanding wages were Rs. 2100.

2. From the following trial balance of Radhika and Sarika, for the year ended 31stMarch, 2004.
Particulars
Debit
Particulars
Credit
Patents
12000
Capital

Goodwill
25000
Radhika
180000
Plant and Machinery
85000
Sarika
120000
Carriage
6000
Bank Loan
30000
General Expenses
10000
Sundry Creditors
18000
Electricity and Lighting
5000
Discount
5000
Bills Receivable
5000
commission
6000
Sundry Debtors
65000
general reserve
15000
Trade Expenses
3000
Reserve for Bad and Doubtful debts
7500
Advertisement
1250
Reserve for Discount of Debtors
2500
Furniture
10750
Outstanding Rent
4200
Wages
12000
Sales
150000
Salaries
7500
Returns
1550
Purchases
97500
Bills Payable
6000
Stock
68000


Cash in Hand
32000


Discount
3500


Land and Building
90000


Printing and Stationery
6000


Interest on Bank Loan
1250


Market value of stock is Rs. 50,000. Cost price is Rs. 60000.
Depreciate furniture by 10%, plant and Machinery by 15%, Land and Building by 20%.
Electricity and lighting includes Rs. 1000 paid for deposit to Electricity Company.
Goods worth Rs. 5000 were purchased on 28thMarch 2004, but, invoice was omitted to be entered in the books.
Outstanding wages Rs. 2,000 and advance paid against salaries Rs. 2500.
Partners share profit and losses in the ratio of their opening capital balance.

3. From the following Trial Balance of Tom  and Jerry, year ended 31stDecember, 2004.
Particulars
Debit (Rs.)
Credit (Rs.)
Tom’s Capital
Jerry’s capital
Tom’s Drawing
Jerry’s Drawing
Stock on 1 – 1 – 2004
Bills Receivable
Purchases
Sales
Bills Payable
Return In ward
Return Outward
Plant and Machinery
Loose Tools
Patents
Sundry Debtors
Sundry Creditors
Cash at Bank
Wages
Salaries
Rent and Taxes
Insurance
Printing and Stationery
Power and Fuel


14, 500
10, 000
2, 00, 000
25, 000
2, 75, 000


5, 000

1, 00, 000
25, 000
25, 000
1, 25, 000

77, 550
19, 000
17, 500
7, 500
3, 000
2, 000
3, 500
2, 80, 000
50, 000





4, 00, 000
60, 000

4, 500




1, 40, 050







Adjustments:
1.        Stock as on 31st December, 1978 Rs. 1, 30,000 and its market value were Rs. 1, 40,000.
2.        Write off Rs. 1000 for bad & Provide for Bad and Doubtful debts at 5% on Sundry Debtors.
3.        Goods worth Rs. 1000 were distributed as free samples.
4.        Prepaid Insurance Rs. 750.
5.        Depreciate Plant and Machinery by 10% p.a. and Patent by 15% p.a.
6.        Outstanding Salaries Rs. 2,500  
7.        Uninsured goods worth Rs 1200 were lost by fire. 

4. Dolu and Bolu are partners sharing profits and losses in the ratio of 2 : 1. For 31.12.2004
Particulars
Debit (Rs.)
Credit (Rs.)
Stock (1st January)
Sundry Debtors
Bills payable
Purchases
Wages
Returns Outward
Salaries
Office Expenses
Insurance
Plant & Machinery
Sundry Creditors
Rent
Sales
Reserve for Doubtful Debts
Travelling Expenses
Returns Inward
Land and Building
Bills Receivable
Bank
Dolu’s capital
Bolu’s capital

10, 000
25, 000

40, 000
8, 500

2, 700
2, 446
1, 300
30, 000

1, 800


1, 400
3, 500
44, 800
3, 400
6, 655


10, 101


2, 500




21, 500

57, 000
400





60, 000
30, 000
Closing stock was valued at Rs. 26,500.
Provide 10% Depreciation on Plant and Machinery.
Goods worth Rs. 1000 were distributed as free samples.
Prepaid Insurance Rs. 300.
Maintain Reserve for Doubtful debts at 10% of Sundry debtors.
Outstanding rent for the current year Rs. 200.
Goods worth Rs. 100 were taken over by Bolu for his personal use, but no entry is made in the books.

5. Arya and Vikram are in a Partnership firm. 31st December, 2004 was as follows.
Particulars
Debit (Rs.)
Credit (Rs.)
Capitals:
          Arya
          Vikram
Drawings:
          Arya
          Vikram
Buildings
Plant and Machinery
Cash at bank
Purchases and Sales
Returns
Carriage
Opening stock
Wages
Debtors & Creditors
Salaries
Rent and Insurances
Postage and Telegrams
Bad Debts
Discounts
Reserve for Bad Debts
Outstanding Salaries
Trade Expenses




500
200
20, 000
6, 000
600
47, 500
1, 500
350
11, 000
6, 000
17, 600
2, 500
400
200
250
100


300

12, 000
13, 000






75, 500
1, 000



12, 600




50
750
100

Partners share Profits and Losses in the ratio of their capitals.
Write off Rs. 450 for Bad debts & Reserve for Bad and Doubtful Debts is to be maintained at 5% on the Debtors.
Goods worth Rs. 1, 000 were destroyed by fire and the insurance company admitted a claim for Rs. 800.
Stock as on 31st December, 2004 was valued at Rs. 8, 000.
Goods worth Rs. 1000 were distributed as free samples.
Wages outstanding Rs. 1000.

6. Trial Balance of Sharukh and Salman sharing profits and losses equally. 31.3.1996.
                Particulars(Debit)
Amount
Particulars(Credit)
Amount
Stock (1-4-1995)
Purchases
Returns Inwards
Carriage
Motive Power
Wages
Trade Expenses
Sundry Debtors
Salaries
Insurance
Postage
Commission
Plant & Machinery
Furniture
Advertising
Office Rent (10 months)
Drawings
Sharukh
Salman
Building
Cash in Hand
50000
170000
10000
4000
6000
56000
4000
72000
38000
2400
3600
5000
60000
16000
8000
10000

14000
6000
24000
3000
Capital A/c
Sharukh
Salman
Sales
Creditors
Commission
Bank Loan

80000
80000
326000
40000
4000
32000













Adjustments
Stock on 31.3.1996 was valued at cost price Rs. 80,000 and market price Rs. 72,000.
Insurance has been paid for one year ending 30.6.1996.
Goods withdrawn by Sharukh amounting to Rs. 10,000 during the year were not recorded in the books.
Bad debts were Rs. 2000 and an R.D.D. is to be created at 5% on debtors.

Goods of Rs. 6000 were purchased on 30.3.1996 and also included in the closing stock, but the purchase was not recorded in the books of account.