Problem 12 Final Accounts University Exam Question. With step by step explanation.

1. ONE CLICK – ONE STEP (OCOP)
ஒரு கிளிக் – ஒரு ஸ
் டெப்.
Final Accounts ஐ புரிந்து டகொள்ள ஒரு எளிய வழி.
University Exam மில் ககெ்கப்பெ்ெ ககள்வி.
10 நிமிெங்களில் விடெடயப் புரிந்து டகொள்ளலொம்.
ஒரு ஸ
் டலடில் ஒரு ஸ
் டெப்-ஐப் புரிந்து டகொள்ளலொம்.
ஸ
் டலடுகடள download டெய்து டகொள்ளலொம்
நீ ங்ககள ஒரு முடை கபொெ்டுப் பொர்த்து விடெடய
ஒப்பிெ்டுக் டகொள்ளலொம்.
12

2. Problem 12 Balances Given in the Sum. As on 31 03 1990
Mr Mirza's Capital a/c 119400Opening Stock 89680
Mr Mirza's Drawing a/c 10550Purchases 256590
S Creditors 59630Manufacturing Wages 40970
15% Loan (Credit) 20000Sales 356430
Cash in Hand 3030Return Inwards 2780
Cash at Bank 18970Salaries 11000
S Debtors 62000Rates & Taxes 5620
(Including Rs 1000 Badri Das
dis-honored bill) Interest & Discount 5870
Bills Receivable 9500Travelling Expenses 1880
Provision for Doubtful Debts 2500Repairs & Renewals 3370
Fixtures & Fittings 8970Insurance (paid upto 30 09 1990) 400
Plant & Machinery 28800Bad Debts 3620
Commission Received 5640

3. Adjustments :
• Closing Stock Rs 128960
• Write off 50% Mr Badri Das dishonoured bill
• Provision for Doubtful Debts 5%
• Charge 10% interest on Capital

4. Adjustments : (continued)
• Manufacturing Wages include Rs 1200 paid for erection of a
machine
• Depreciation – Plant 15% Furniture 10%
• Commission Earned but not received Rs 600
• Interest on Loan not paid for last two months.

5. Workings :
• Badri Das bill dishonoured Rs 1000. We must writeoff 50% ie
Rs 500
• S Drs Rs 62000 This includes Rs 1000 dishonoured bill. 5%
Provision on Rs 61000 = Rs 3050.

6. Workings :
• Wages Rs 40970. Machinery installation Rs 1200 to be
capitalised 40970 – 1200 = Rs 39770
• Capital Rs 119400. Interest on that 10% = Rs 11940.

7. Workings :
• Depreciation Plant value + Installation from Wages – 28800 + 1200 =
30000. Depreciation 15% = Rs 4500
• Deprection – Furniture Rs 8970. Depreciation 10% = Rs 897.
• Interest on loan – 20000 @ 15 % . Yearly Rs 3000. For two months
3000 x 2 / 12 = Rs 500

8. Particulars Dr Particulars Cr
Return Inwards 2780 Capital 119400
Salaries 11000 (taken on 01 07 2002)
Manufacturing Wages 40970 S Creditors 59630
Rates & Insurance 400 Provision - DD 2500
(Paid upto 30 09 1990) Commission Received 5640
Stock (01 04 1989) 89680 Sales 356430
Purchases 256590 Loan - 15% 20000
Cash 3030
Sundry Debtors 62000
(Dishonoured bill 1000)
Bank 18970
Drawings 10550
Plant & Machinery 28800
Bills Receivable 9500
Furniture & Fittings 8970
Rent & Taxes 5620
Interest & Dicount (Dr) 5870
Travelling Expenses 1880
Repairs & Renewals 3370
Bad Debts 3620
563600 563600
Trial Balance as on 31 03 1990

9. Opening Stock 89680 Sales 356430
Purchases 256590
Manufacture Wages 40970
Return Inwards 2780
Repairs & Renewals 3370 Commission Received 5640
Taxes & Rates 5620
Insurance 400
(paid Rs 300 upto 30 09 1990)
Salaries 11000
Interest & Discount (Debit) 5870
Travelling Expenses 1880
Bad Debts 3620
Cash 3030 S Creditors 59630
Bank 18970 Capital 119400
Sundry Debtors 62000 Loan from 15% (Credit) 20000
(Including Rs 1000 dishonoured bill) Provision - DD 2500
Furniture 8970
Drawings 10550
Bills Receivable 9500
Plant & Machinery 28800
563600 563600
Trial Balance in Revised Format 31 12 2002

10. Trading a/c
To Opening Stock 89680By Sales 356430
To Purchases 256590(-) Return 2780 353650
To Manu Wages 40970 Closing Stock 128960
(-) Installation 1200 39770
To Gross Profit 96570
482610 482610

11. To Salaries 11000 By Gross Profit 96570
To Interest & Discount 5870 By Commission Recd 5640
To Taxes & Rates 5620 Earned Not yet received 600 6240
To Bad Debts 3620
To Badri Das bill 50% 500
To Provision Debts - New 3050
- Old 2500 550
To Loan interest 500
Depreciation
15 % Machinery 4500
10% - Furniture 897 5397
To Travelling Expenses 1880
To Insurance 400
Less Prepaid 150 250
To Repairs & Renewals 3370
To Interest on Capital 11940
To Net Profit 52313
102810 102810
P / L a/c

12. Capital 119400 Plant 28800
(+) Net Profit 52313 (+) Installation 1200
(+) Interest on Capital 11940 30000
183653 (-) Depreciation 4500 25500
(-) Drawings 10550 173103 Furniture 8970
(-) Depreciation 897 8073
Closing Stock 128960
Cash 3030
Bank 18970
Creditors 59630 Debtors 62000
15% Loan 20000 (-) Bad Debts Badri 500
(+) Interest Due 500 20500 (-) Provision New 3050 58450
Prepaid Insurance 150
Bills Receivable 9500
Commission Not recd 600
253233 253233
Balance Sheet
Liabilities Assets