{"id":44254,"date":"2024-02-19T09:12:28","date_gmt":"2024-02-19T03:42:28","guid":{"rendered":"https:\/\/www.aplustopper.com\/?p=44254"},"modified":"2024-02-19T14:36:50","modified_gmt":"2024-02-19T09:06:50","slug":"plus-one-accountancy-chapter-wise-previous-questions-chapter-8","status":"publish","type":"post","link":"https:\/\/www.aplustopper.com\/plus-one-accountancy-chapter-wise-previous-questions-chapter-8\/","title":{"rendered":"Plus One Accountancy Chapter Wise Previous Questions Chapter 8 Financial Statements – I & Financial Statements – II"},"content":{"rendered":"
Question 1. Question 2. Question 3. Question 4. Question 5. Question 6. Question 7. Question 8. Question 9. Question 10. Question 11. Question 12. Question 13. Question 14. Question 15. Question 16. Question 17. Question 18. Question 19. Question 20. <\/p>\n Question 21. Question 22. Question 23. Question 24. Question 25. Question 26. Question 27. Question 28. Question 29. Question 30. Question 31. Question 32. Question 33. Question 34. Question 35. Question 36. Question 37. Question 38. Question 39. Question 40. Question 41. Question 42. Question 43. Question 44. Question 45. Question 46. <\/p>\n Question 47. Question 48. Question 49. Question 50. Question 51. Question 52. Question 53. Question 54. Question 55. Question 56. Question 57. Question 58. Question 59. Question 60. Question 61. Question 62. Question 63. Kerala Plus One Accountancy Chapter Wise Previous Questions and Answers Chapter 8 Financial Statements – I & Financial Statements – II Question 1. Outstanding salaries are shown as _______ (March 2010) a) Assets b) Liabilities c) Capital d) Expense Answer: b) Liabilities Question 2. Goods given as samples should be credited to ________ (March 2010) […]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[42728],"tags":[],"yoast_head":"\n
\nOutstanding salaries are shown as _______ (March 2010)<\/span>
\na) Assets
\nb) Liabilities
\nc) Capital
\nd) Expense
\nAnswer:
\nb) Liabilities<\/p>\n
\nGoods given as samples should be credited to ________ (March 2010)<\/span>
\na) Advertisement account
\nb) Sales account
\nc) Purchase account
\nd) None of these
\nAnswer:
\nc) Purchase Account<\/p>\n
\nState whether the following is \u201ctrue\u201d or \u201cfalse\u201d. If false, correct the same. (March 2010)<\/span>
\nLoss of stock on account of fire should be debited to the Trading account.
\nAnswer:
\nFalse. It should be debited to P\/L a\/c or credited to Trading A\/c.<\/p>\n
\nSales are equal to _________ (March 2010)<\/span>
\na) cost of goods sold + profit
\nb) cost of goods sold – gross profit
\nc) gross profit – the cost of goods sold
\nAnswer:
\na) cost of goods sold + profit<\/p>\n
\nIncome tax paid by a sole proprietor on his business income should be ________ (March 2010)<\/span>
\na) debited to the trading account.
\nb) debited to the profit and loss account.
\nc) deducted from the capital account in the balance sheet
\nAnswer:
\nc) Deducted from the capital account in the balance sheet<\/p>\n
\nIf a closing stock appears in the Trial Balance, it will appear in the _______ only. (March 2010)<\/span>
\nAnswer:
\nBalance Sheet<\/p>\n
\na) The following is the Trial Balance of Mr. Laxmi Narayan as of 30th June 2007. (March 2010)<\/span>
\n
\nAdjustments:
\na) Stock in hand on 30th June, 2007 was Rs. 1,28,960.
\nb) Write off half of Mohan\u2019s cheque.
\nc) Create 5% provision on debtors.
\nd) Wages include Rs. 1,200 for erection of machine purchased last year.
\ne) Depreciate plant and machinery by 5% and fixtures and fitting by 10% per year.
\nf) Commission accrued Rs. 600.
\ng) Interest on loan for the last two months is not paid.
\nYou are required to prepare the Trading and Profit & Loss Account and also a Balance Sheet as on 30.6.2007.
\nAnswer:
\na) Trading and Profit and Loss Account of Mr. Lijin for the year ended 31st Dec. 2005
\n
\nBalance Sheet as on 30\/6\/2007
\n
\n<\/p>\n
\nFollowing is the Trial Balance of M\/s. Kasthuri Agencies on 31st March, 2008. Prepare the Trading and Profit and Loss Account for the year ended 31st March, 2008 and a Balance Sheet on that date, after considering the adjustments. (March 2010)<\/span>
\n
\nAdjustments:
\na) The value of closing stock on 31st March, 2008 was Rs. 32,000.
\nb) Outstanding wages Rs. 500.
\nc) Pre-paid insurance Rs. 300.
\nd) Commission received in advance Rs. 800.
\ne) Allow interest on capital @ 10% p.a.
\nf) Depreicate building by 2.5%, furniture and fittings by 10%.
\ng) Charge interest on drawing Rs. 500. Motor van by 10%.
\nh) Balance of interest due on loan is also to be provided for.
\nAnswer:
\nTrading and Profit and Loss Account for the year ended 31.03.08
\n
\nBalance Sheet as on 31.03.2008
\n<\/p>\n
\n_______ can be computed by deducting the cost of goods sold from sales. (March 2011)<\/span>
\na) Net profit
\nb) Gross profit
\nc) Net sales
\nd) Operating profit
\nAnswer:
\nb) Gross profit<\/p>\n
\nState whether the following is \u201ctrue\u201d or \u201cfalse\u201d. If false, correct the same. (March 2011)<\/span>
\nSales = cost of goods sold + profit
\nAnswer:
\nTrue<\/p>\n
\nState whether the following is \u201ctrue\u201d or \u201cfalse\u201d. If false, correct the same. (March 2011)<\/span>
\nIf closing stock appears in the Trial Balance, it will appear in the Trading account only.
\nAnswer:
\nFalse, If closing stock appears in the Trial Balance, it will appear in the \u201cBalance sheet\u201d only.<\/p>\n
\nThe following is the Trial Balance of Mr. B. Govind on 31st March, 1990. (March 2011)<\/span>
\n
\nTaking into account the following adjustments, prepare the Trading and Profit and Loss account and the Balance Sheet for the year ended 31 st March, 1990.
\na) Stock in hand on 31st March, 1990 was Rs. 26,800.
\nb) Machinery is to be depreciated at the rate of 10% and patent at the rate of 20%.
\nc) Salaries for the month of March, 1990 amounting to Rs. 1,500 were unpaid.
\nd) Insurance includes a premium of Rs. 170 on a policy expiring on 30th September, 1990.
\ne) A provision for bad and doubtful debts is to be credited to the extent of 5% on sundry debtors.
\nAnswer:
\nTrading and Profits & Loss Account of Mr. B. Govind for the year ended 31\/03\/1990
\n
\nNote: Insurance prepaid = 170 \u00d7 6\/12 = 85. (April 1990 to September 30th)
\nBalance Sheet as on 31\/03\/1990
\n<\/p>\n
\nThe following is the Trial Balance of Mr. Arun as on 31st December, 2009. (March 2011)<\/span>
\n
\nHe furnishes the following additional information:
\na) Closing stock on 31-12-2009 is Rs. 16,000.
\nb) Provide for Rs. 1,500 and Rs.2,000 for outstanding salaries and wages respectively.
\nc) Insurance was prepaid to the extent of Rs. 75.
\nd) Interest accrued Rs. 500.
\ne) Machinery and patents are to be depreciated @ 10% p.a. and 20% p.a. respectively.
\nYou are required to prepare the Trading account, Profit & Loss account and the Balance Sheet of Mr. Arun as on 31.12.2009.
\nAnswer:
\nTrading & Profit and Loss A\/c for the year ended 31\/12\/2009
\n<\/p>\n
\nBalance Sheet as on 31\/12\/2009
\n<\/p>\n
\nInterest on investment received in advance is shown on the ________ (March 2012)
\na) asset side of the balance sheet
\nb) liability side of the balance sheet
\nc) credit side of the revenue account
\nd) none of these
\nAnswer:
\nb) liability side of the balance sheet<\/p>\n
\nContingency liabilities are shown on the footnote in the balance sheet as per the _______ accounting principle. (March 2012)<\/span>
\nAnswer:
\nDisclosure<\/p>\n
\nThe details of stationery for a manufacturing unit is given below: (March 2012)<\/span>
\nOpening stock of stationery Rs. 500\/-
\nStationery purchase Rs. 1,200\/-
\nClosing stock of stationery Rs.700\/-
\nDetermine the amount of stationery to be debited in the profit and loss account.
\nAnswer:
\n<\/p>\n
\nCalculate the amount of operating profit from the following: (March 2012)<\/span>
\nSales less return – 1,30,000
\nCost of goods sold – 80,000
\nAdministration expenses – 25,000
\nLoss on sale of furniture – 20,000
\nAnswer:
\nOperating Profit = Gross Profit – Operating expenses
\nGross Profit = Net sales – cost of goods sold
\n= 1,30,000 – 80,000
\n= 50,000
\nOperating Profit = 50,000 – 25,000 = 25,000
\nNote: Loss on sales of furniture is non-operating or purely financial nature. So it is excluded while computing the operating profit.<\/p>\n
\nA balance sheet of a sole trader is arranged in the liquidity order. Answer the following, if the trader has all typical assets. (March 2012)<\/span>
\na) First item is shown on the asset side of the Balance Sheet.
\nb) Last item is shown on the asset side of the Balance Sheet.
\nAnswer:
\na) Cash-in-hand is the first item shown on the asset side of the Balance Sheet in order of liquidity,
\nb) Goodwill is the last item shown on the asset side of the Balance Sheet in the order of liquidity.<\/p>\n
\nPass the necessary adjusting entries to record the following transactions in .the books of account on 31st March 2010. (March 2012)<\/span>
\na) Rent due but not paid during the year ended Rs. 500\/-
\nb) Prepaid insurance Rs. 1,250\/-
\nc) Depreciation on plant and machinery Rs. 5,000\/-
\nd) Loss on sale of machinery Rs. 1,250\/-
\nAnswer:
\n<\/p>\n
\nFrom the following Trial Balance of M\/s Usha Agencies on 31st March, 2010, prepare the Trading, Profit and Loss account for the year ended 31st March, 2010 and the Balance Sheet as on that date, making necessary adjustments. (March 2012)<\/span>
\n
\nAdjustments:
\ni) Closing stock Rs. 20,000.
\nii) Write off further bad debts Rs. 3,000.
\niii) Provide 5% for provision for bad and doubtful debts.
\nAnswer:
\nTrading and Profit & Loss Account for the year ended 31\/3\/2010
\n
\nNote:
\na) New provision for bad & doubtful debts = (15000 – 3000) \u00d7 5\/100 = 600
\nb) Interest on fixed deposit = 25,000 \u00d7 10\/100 = 2500
\nc) Salary outstanding for one month = 1,000
\nBalance sheet as 31\/3\/2010
\n<\/p>\n
\nA.Mr. Koya has submitted to you the following Trial Balance as on 31st March, 2011 wherein the totals of the debit and credit balances are not equal. (March 2012)<\/span>
\nTrial Balance as at 31st March, 2011
\n
\nYou are required to:
\na) Redraft the Trial Balance correctly as at 31st March, 2011.
\nb) Prepare Trading and Profit and Loss Account for the year ended 31st March, 2011 and Balance Sheet as on that date after taking into account the following additional information.
\nAdditional information:
\ni) Stock as on 31st March, 2011 worth Rs. 10,000.
\nii) Wages for the month of March, 2011 amounted to Rs. 2,400 were unpaid.
\niii) Depreciate building at 10% per annum.
\niv) Bad debts written off Rs. 600.
\nv) A provision for bad debts is to be created to the extent of 10% on Sundry Debtors.
\nvi) Patents are written off by Rs. 2,500.
\nAnswer:
\nTrial Balance as on 31.3.2011
\n
\nTrading & Profit and Loss A\/c for the year ended 31\/12\/2009
\n<\/p>\n
\nBalance Sheet as on 31\/3\/2011
\n<\/p>\n
\nThe statement showing the financial position of a business is known as ______ (Say 2012)<\/span>
\na) Profit and Loss Account
\nb) Balance Sheet
\nc) Income and Expenditure
\nd) Receipts and Payments Account
\nAnswer:
\nb) balance sheet<\/p>\n
\nThe purpose of preparing the ______ account is to ascertain the financial result. (Say 2012)<\/span>
\nAnswer:
\nProfit and Loss A\/c or Income and Expenditure a\/c<\/p>\n
\nIf closing balance of stock appears in the trial balance, it will appear in ______ only. (Say 2012)<\/span>
\nAnswer:
\nAssets side of the Balance sheet<\/p>\n
\nWrite the treatment of interest on capital, while preparing final account. (Say 2012)<\/span>
\nAnswer:
\nInterest on capital debited to Profit and Loss A\/c and it is shown in the liability side of the Balance Sheet by adding the same to capital.<\/p>\n
\nA firm had purchased goods worth Rs. 70,000 and it had an opening stock for Rs. 10,000. It sold a portion of goods for Rs. 75,000 at a Gross Profit of 20%. Find out its closing stock. (Say 2012)<\/span>
\nAnswer:
\nClosing Stock = (Opening Stock + Purchases + Gross Profit) – Sales
\n= (10,000 + 70,000 + 15,000) – 75,000
\n= 20,000
\nGross Profit = 75,000 \u00d7 20\/100 = 15000
\nOR
\nAnother Method
\nTrading A\/c.
\n<\/p>\n
\nRam Ltd. gives the following items. As a commerce student classify them into revenue expense, capital expenditure and deferred revenue expense. (Say 2012)<\/span>
\nAnswer:
\ni) Computer purchased
\nii) Salary paid
\niii) Huge advertisement expenses
\niv) Goods purchased
\nAnswer:
\ni) Computer Purchased – Capital Expenditure
\nii) Salary paid – Revenue Expenditure
\niii) Huge Advertisement Expenses – Deferred Revenue Expenditure
\niv) Goods purchased – Revenue Expenditure<\/p>\n
\nThe following Trial Balance is extracted from the books of D.Das on 31st December 2009. (Say 2012)<\/span>
\nTrial Balance
\n
\nThe following adjustments are to be made:
\na) Provide interest on capital at 5% per annum.
\nb) Salaries outstanding \u20b9 1,200.
\nc) Insurance prepaid to the extend of \u20b9 700.
\nd) Write off \u20b9 1300 as bad debts.
\ne) The provision for doubtful debts is to be maintained at 5% on debtors.
\nf) Depreciate motor vehicles at 15% and furniture at 10%.
\ng) Stock in hand on 31.12.2009 was \u20b9 30000.
\nh) A fire occurred on 26.12.2009 in the godown and the stock of the value of \u20b9 6000 fully damaged. It was fully insured and the Insurance company admitted the claim in full.
\nYou are required to prepare a Trading, Profit and Loss Account for the year ended 31 st December 2009 and a Balance sheet on that date after making the above adjustments.
\nAnswer:
\nTrading and Profit and Loss A\/c for the year ended 31.12.2009
\n
\nBalance Sheet as on 31\/12\/2009
\n
\nWorking note
\nNew provision for bad debt = (38500 – 1300) \u00d7 5% = 1860.<\/p>\n
\nPrepare Trading and Profit and Loss account and Balance Sheet from the Trial Balance of Shri. Govind as on 31st March 2010. (Say 2012)<\/span>
\n
\nAdjustments:
\n1) Stock is valued at Rs. 16,000
\n2) Allow Interest on Capital @ 6% p.a.
\n3) Depreciate Furniture by 5% and Plant by 10%
\n4) Wages are unpaid Rs. 400.
\nAnswer:
\nTrading & Profit and Loss A\/c for the year ended 31\/3\/2010
\n<\/p>\n
\nBalance Sheet as on 31\/3\/2010
\n<\/p>\n
\nWhile preparing final accounts, outstanding salary is added to the salary account. The accounting principle relevant to this context is _______ (March 2013)<\/span>
\na) Matching
\nb) Business entity
\nc) Materially
\nd) Going concerned
\nAnswer:
\na) Matching<\/p>\n
\nWhich of the following is not a purpose of preparing a Balance Sheet? (March 2013)<\/span>
\na) To know about the sources and application of funds.
\nb) To know the financial position of the business.
\nc) To ascertain the nature and value of the asset owned.
\nd) To evaluate the profitability of the business
\nAnswer:
\nd) To evaluate the profitability of the business<\/p>\n
\nThe Trial Balance of a trader has the following information. (March 2013)<\/span>
\na) Bank loan @ 12 %, Rs. 10,000
\nb) Interest paid Rs. 800 bank loan
\nCalculate the outstanding amount of interest on the bank loan.
\nAnswer:
\nInterest on loan = 10,000 \u00d7 12\/100 = 1200
\nThe outstanding amount of interest on loan = 1200 – 800 = 400<\/p>\n
\nInterest on capital is _________ (March 2013)<\/span>
\na) expenditure for the business
\nb) expense for the business
\nc) gain for the business
\nd) loss of business
\nAnswer:
\nb) Expenses for the business<\/p>\n
\nFrom the following information, ascertain the number of debtors to be posted in the asset side of the Balance sheet. (March 2013)<\/span>
\nGiven in Trial Balance
\nBad debts – Rs. 700
\nDebtors – Rs. 7,000
\nProvision for doubtful debts – Rs. 500
\nGiven in Adjustments:
\na) Provide 5% for further bad debts.
\nb) Create provision for doubtful debts @ 10% on debtors.
\nc) Provision for discount on debtors is to be created @ 10%.
\nAnswer:
\n
\nThe amount to be posted in the assets side of the B\/S = 5386<\/p>\n
\nOn 31.12.2011, the balance of sundry debtors is Rs. 30,300 and further bad debts are estimated as Rs. 300. 5% of the debtors are expected to be doubtful. What are the adjustments to be required at the time of preparing the Profit and Loss Account? (March 2013)<\/span>
\nAnswer:
\nRs. 300 debited to Profit and Loss Account as bad debts and Rs. 1500 (30300 – 300 = 30000 \u00d7 5\/100 = 1500) debited to Profit and Loss A\/c as provision for bad and doubtful debts.<\/p>\n
\nThe Trial Balance of M\/s. Arathy as on 31st March, 2012 is given below. Prepare the final accounts. (March 2013)
\n
\nAdjustments:
\na) Closing stock was valued at Rs. 9000.
\nb) Insurance prepaid is Rs. 100
\nc) Wages outstanding is Rs. 700
\nd) Depreciate machinery and furniture by 10%.
\nAnswer:
\nTrading and Profit & Loss A\/c for the year ended 31\/3\/2012.
\n<\/p>\n
\nBalance Sheet as on 31\/3\/2012
\n<\/p>\n
\nCost of goods sold is equal to sales minus _______ (March 2014)<\/span>
\na) net profit
\nb) net loss
\nc) gross profit
\nd) gross loss
\nAnswer:
\nc) gross profit<\/p>\n
\nFrom the Balance sheet given below, calculate: (March 2014)<\/span>
\na. Long term liabilities
\nb. Current liabilities
\nc. Fixed assets
\nBalance Sheet
\n
\nAnswer:
\na) Long term liabilities = Debentures + capital
\n= 20000 + 94400
\n= 114400
\nb) Current liabilities = Sundry creditors + Loan (6 months)
\n= 42000 + 8000
\n= 50000
\nc) Fixed Assets = Furniture + Patent
\n= 30000 + 50000
\n= 80000<\/p>\n
\nGiven below is an extract taken from the Trial Balance of a trader as on 31.12.2012. (March 2014)<\/span>
\nDebtors – Rs. 9100
\nBad debts – Rs. 1000
\nProvision for bad debts – Rs. 900
\nAdditional Information:
\na) Further bad debts to be written off this year were Rs. 100.
\nb) 10% is reserved for further bad debts.
\nHow much amount has to be debited to the Profit and Loss account?
\nAnswer:
\n<\/p>\n
\nThe following are the balances taken on 31st December, 2012, from the books of Mr.Rajendran. Prepare the Trading and Profit and Loss accounts and the Balance Sheet as on that date. (March 2014)<\/span>
\n
\nOther information:
\n1) Stock on 31st December, 2012 was Rs. 10,000.
\n2) Create a reserve for doubtful debts at 10%.
\n3) Depreciate furniture by 10%.
\n4) Wages unpaid were Rs. 1000.
\nAnswer:
\nTrading and Profit and Loss account for the year ended December 31.12.2012
\n
\nBalance Sheet as on 31\/12\/12
\n<\/p>\n
\nPrepare the financial statements of Rajeevan Stores for the year 2012-13 from the information given below. (March 2014)<\/span>
\nTrial Balance as on 31.03.2013
\n<\/p>\n
\nAdjustments:
\na) Closing stock was valued at Rs. 7000.
\nb) Wages yet to be paid Rs. 300.
\nc) Rent includes advance payments of Rs. 600 for the next year.
\nd) Bad debts written off Rs. 400.
\ne) Depreciate building at 10% per annum
\nAnswer:
\nTrading and Profit and Loss Account for the year ended 31.3.2013
\n
\nBalance Sheet as on 31.03.2013
\n<\/p>\n
\nSalary of Rs.8,000 which remains unpaid during the current year is called a\/an _________ (March 2015)<\/span>
\na) asset
\nb) liability
\nc) capital
\nd) income
\nAnswer:
\nb) liability<\/p>\n
\n\u201cUnder the liquidity approach, assets which are more liquid are presented at the bottom of the balance sheet\u201d. (March 2015)<\/span>
\na) Is it correct? Justify your answer.
\nb) Write the following assets in the order of liquidity.
\ni) Cash in hand
\nii) Cash at bank
\niii) land and building
\niv) Bills receivable
\nv) Closing stock
\nvi) Goodwill
\nAnswer:
\na) No, Under the liquidity approach, assets are entered up in the balance sheet following the order in which they can be converted into cash.
\nb) i) Cash in hand
\niii) Bills Receivable
\niv) Closing stock
\nv) Land and building
\nvi) Goodwill<\/p>\n
\nBeena started the business with the following: (March 2015)<\/span>
\na) Classify the assets under appropriate headings.
\nb) Ascertain her capital.
\nc) Arrange them in the order of permanence by adding an intangible asset of your choice.
\nCash Rs. 20,000, Building Rs. 1,00,000, Bank balance Rs. 10,000, Furniture Rs. 8,000 and Debtors Rs. 3,000.
\nAnswer:
\na) Cash – CurrentAsset
\nBuilding – Fixed Asset
\nBank Balance – CurrentAsset
\nFurniture – Fixed Asset
\nDebtors – CurrentAsset
\nb) Capital = 20,000 + 1,00,000 +10,000 + 8,000 + 3,000 = Rs. 1,41,000
\nc) In the order of Permanence
\n1) Goodwill
\n2) Building
\n3) Furniture
\n4) Debtors
\n5) Bank
\n6) Cash<\/p>\n
\nPrepare the trading, Profit, and Loss account and Balance Sheet from the Trial Balance of Mr. Shibu as on 31st March, 2013. (March 2015)<\/span>
\n
\nAdjustments:
\n1) Closing stock was valued at Rs. 20,000
\n2) Wages outstanding Rs. 500
\n3) Commission receivable Rs. 400
\n4) Insurance prepaid Rs. 100
\nAnswer:
\nTrading and Profit and Loss A\/c for the year ended 31\/03\/2013
\n
\nBalance Sheet as on 31\/03\/2013
\n<\/p>\n
\nThe following balances are taken from the books of Mr. Biswas. (March 2015)<\/span>
\n
\nAfter making the following adjustments, prepare the Trading and Profit and Loss accounts for the year ended 31st March 2014 and a Balance Sheet as on that date.
\na) Stock as on 31st March 2014 worth Rs. 20,000.
\nb) Depreciate furniture @ 20%
\nc) Salary due but not paid Rs. 1,000.
\nd) Write-off Rs. 500 as bad debts and create a reserve for bad and doubtful debts @ 10%.
\n(Hint: Interest on investment accured but not received has to be considered).
\nAnswer:
\nTrading and Profit and Loss A\/c for the year ended 31\/03\/2014
\n
\nBalance Sheet as on 31\/3\/2014
\n<\/p>\n
\nIn which of the following items, shall commission paid by a business in advance during the year be included? (Say 2015)<\/span>
\na) Current expenditure
\nb) Current liability
\nc) Current asset
\nd) Current income
\nAnswer:
\nc) Current Asset<\/p>\n
\nThe information given below is extracted form ABC Stores during the year 2013-14. (Say 2015)<\/span>
\nPurchases – Rs. 4,000
\nOpening stock – Rs. 6000
\nClosing stock – Rs. 20,000
\nGross profit – Rs. 10,000
\nWages – Rs. 4,000
\nFind the sales during the year.
\nAnswer:
\nTrading A\/c for the year ended ________
\n<\/p>\n
\nFind the \u2018sale\u2019 of Mr. Binesh from the following information provided by him for the year ending 31st March 2013. (March 2016)<\/span>
\n
\nAnswer:
\nTrading A\/c for the year ended 31\/3\/13
\n<\/p>\n
\nSome adjustments are given below. (March 2016)<\/span>
\ni) Wages outstanding Rs. 500
\nii) Rent received in advance Rs. 450
\niii) Further bad debts Rs. 300
\na) How these adjustments are treated in the final account?
\nb) Write the adjustment entry for wages outstanding.
\nAnswer:
\na) Wages outstanding: It must be added to the wages account in the trading and profit and loss A\/c. It will be shown on the liability side of the balance sheet.
\nRent Received in advance: It will be deducted from the rent in profit and loss a\/c. It will be shown on the liability side of the balance sheet.
\nFurther Baddebts: It will be added to the baddebt in profit and loss a\/c and deduct further bad debts from debtors in assets side of the balance sheet.
\nb) Wages a\/c Dr 500
\nTo wages outstanding a\/c 500<\/p>\n
\na) Explain the term, current liability with an example. (March 2016)<\/span>
\nb) Classify the following items into current liabilities and long term liabilities.
\n(Loan for five years, Creditors, Debentures, Bankover draft)
\nAnswer:
\na) Liabilities are payable within one year are called current liabilities
\neg. creditors, Bills payable etc.
\nb) Current liabilities \u2192 Creditors, bank overdraft
\nLong term liabilities \u2192 Loan for 5 years, debentures.<\/p>\n
\nThe following balances have been extracted form the books of Kerala Traders for the year ended 31st December, 2014. (March 2016)<\/span>
\n<\/p>\n
\nAdjustments:
\na) Make a provision on debtors @ 6%
\nb) Salaries outstanding Rs.200. Repairs include Rs. 300 for the year 2015.
\nc) Depreciate building @ 5% and furniture @ 10%
\nd) Closing stock Rs. 24,000
\nPrepare Profit and Loss A\/c and Balance Sheet for the year ending 31st December, 2014.
\nAnswer:
\nTrading and Profit and Loss A\/c for the year ended 31\/12\/2014
\n
\nBalance Sheet as on 31\/12\/2014
\n<\/p>\n
\nThe following is the trial balance of Ammu Associates for the year ending 31st December, 2014 and other information relating are given to you. Find the working result of business and also show the financial position of them for the year. (March 2016)<\/span>
\nTrial Balance of Ammu Associates on 31-12-2014
\n<\/p>\n
\nAdditional information:
\na) Closing stock is valued at Rs. 25,000
\nb) Salary of an employee is not paid Rs. 500
\nc) Further bad debt incurred Rs. 200
\nd) Provision for bad debt is created at 5% on debtors
\nAnswer:
\nTrading and profit and Loss A\/c for the year ended 31\/12\/14
\n
\nBalance sheet as on 31\/12\/2014
\n<\/p>\n
\nFind the odd one out from the following. State the reason. (Say 2016)<\/span>
\na) Rent
\nb) Salary
\nc) Wages
\nd) General Expenses
\nAnswer:
\nc) wages
\nReason: wage is a direct expenses, but all others are indirect expenses.<\/p>\n
\nAscertain the amount to be debited to prodit and loss.account under the head \u2018Salaries\u2019 based on the following information. (Say 2016)<\/span>
\nGiven in Trial balance:
\nSalary (Dr) Rs. 12,000
\nSalary outstanding (Cr) Rs. 2,000
\nGiven in adjustments:
\nSalary includes Rs. 1,500 paid in advance
\nAnswer:
\nProfit and Loss A\/c
\n<\/p>\n
\nThe following balances are extracted form the books of a sole trader as on 31\/12\/2015. (Say 2016)<\/span>
\n
\nAdditional information
\na) Closing stock on 31\/12\/2015 Rs. 33,000
\nb) Salary prepaid Rs. 2,000
\nc) Write off Rs. 1,000 as bad debts and provide 3% for provision for bad and doubtful debts
\nd) Wages outstanding Rs. 1,000
\nPrepare a trading and Profit and Loss account and Balance Sheet as on 31\/12\/2015.
\nAnswer:
\nTrading and profit and Loss A\/c for the year ended 31\/12\/2015
\n
\nBalance sheet as on 31\/12\/2015
\n<\/p>\n
\nAthul, a commerce student prepared the following diagram showing examples of direct expenses for exhibiting in the class room. Identify the wrong examples appearing in the diagram. (March 2017)<\/span>
\n
\nAnswer:
\nRent
\nRepairs<\/p>\n
\n\u201cA Balance Sheet is more reliable than statement of affairs\u201d. Explain. (March 2017)<\/span>
\nAnswer:
\nA balance sheet is prepared on the basis of those books which are maintained under double entry system. But statement of affairs is prepared on the ba\u00acsis of information from incomplete records. So a bal\u00acance sheet is more reliable than statement of affairs.<\/p>\n
\nCalculate the value of cost of goods sold and gross profit. (March 2017)<\/span>
\n
\nAnswer:
\nCost of goods sold = (Opening stock + Purchases + Direct exp.) – Closing stock
\n= 18,000 + 60,000 + 4000 – 20,000
\n= 62,000
\nGross profit = Net sales – cost of goods sold
\nNet sales = 1,32,000 – 7000 = 1,25,000
\nGross Profit = 1,25,000 – 62,000 = 63,000<\/p>\n
\nOpening Stock Rs. 18,000
\nPurchases Rs. 22,000
\nWages Rs. 5,000
\nClosing stock Rs. 15,000
\na) Ascertain cost of goods sold.
\nb) How much is gross profit, if sales is Rs. 37,500? (March 2017)<\/span>
\nAnswer:
\na) Cost of goods sold = Opening stock + purchases+ Direct expenses – Closing stock
\n= (18,000 + 22,000 + 5000) – 15,000
\n= 30,000
\nb) Gross profit = Sales – Cost of goods sold
\n= 37500 – 30,000
\n= 7,500<\/p>\n
\n\u201cOutstanding Expenses are to be accounted for while preparing the financial statements\u201d. (March 2017)<\/span>
\na) Which concept of accounting is mentioned in the above?
\nb) Complete the following table.
\n
\nAnswer:
\na) Matching Principle
\nb) i) Prepaid insurance – Prepaid amount deducted from insurance on the debit side of P\/L a\/c
\nii) Depreciation on furniture – Amount of depreciation debited to P\/L a\/c.
\niii) Bad debts given outside the Trial Balance – Deducted from Sundry debtors on the asset side of the B\/s<\/p>\n
\nFollowing is the trail balance of R.K. Traders on 31st December, 2014. Prepare Trading and Profit & Loss account and Balance Sheet taking into account, the adjustments given. (March 2017)<\/span>
\n
\nAdjustments:
\na) Closing stock was valued at Rs. 2,400.
\nb) Commission received in advance Rs. 800.
\nc) Salaries due but not paid Rs. 1,300
\nd) Depreciate furniture by Rs. 1,500
\ne) 1\/4 of insurance is unexpired
\nAnswer:
\nTrading and profit and Loss A\/c for the year ended 31\/12\/14
\n
\nBalance Sheet as on 31\/12\/14
\n<\/p>\n
\nThe following is the Trial Balance of Kiran, a trader as on 31st December, 2016. (March 2017)<\/span>
\nTrial Balance as on 31\/12\/2016
\n<\/p>\n
\nAdditional Information:
\na) Closing stock was valued at Rs. 10,000.
\nb) Carriage outstanding Rs.500
\nc) Commission received in advance Rs.700
\nd) Provide 5% of debtors for bad debts.
\nPrepare Trading and Profit and Loss account for the year ended 31st December, 2016 and a Balance Sheet as on that date.
\nAnswer:
\nTrading and Profit and Loss A\/c for the year ended 31\/12\/2016
\n
\nBalance Sheet As on 31\/12\/2016
\n<\/p>\n\u00a0Plus One Accountancy Chapter Wise Previous Questions<\/a><\/h4>\n","protected":false},"excerpt":{"rendered":"