Assignment –I

Subject: Management Accounting –I

Last date of submission: 9th Oct 2010

Case I:
Following are the balances of different accounts of AB Associates as on 31-03-2010.

Particulars (Rs.) Particulars (Rs.)

Debtors 10,500 Loans (10% interest) 10,000

Commission paid 500 Creditors 15,000

Capital 55,000 Purchases 1,80,000
Drawings 5,000 Stock(1-4-09) 10000

Provision for Bad debts 300 Salaries less P.F. (i.e. 5,400
Net salaries)

Wages 3,000 P.F. contribution 1,200

(50% firm’s
contribution)

Furniture & fittings 5,000 Rent@ 250 p.m. 2,750

Electricity 550 Machinery 29,000

Trade Expenses 1,500 Sales 2,05,000
Interest on loan 900 Building 30,000

You are required to prepare:

i) Trial Balance as on 31-03-2010.
ii) Trading and Profit & Loss A/c for the year ending 31-03-2010. using the
additional information given below, and
iii) Balance sheet as on 31-03-2010 using the additional information given below.

Additional information:
1. On 1-4-09 machinery worth Rs. 5,000 was sold for Rs. 4,000 and credited to
Machinery Account.
2. Wages include Rs.1,000 paid for machinery installation charges.
3. Purchases include cost of scooter for Rs. 5,000.
4. Proprietor has taken goods costing Rs.1,000 for which no entry has been made.
5. Further bad debts of amounted to Rs.500.
6. Provide 10% provision for bad debts.
7. Electricity outstanding Rs. 50.
8. Goods costing Rs. 5,000 were destroyed by fire and insurance claim was received
for Rs.4000.
9. Provide depreciation at 10% on machinery, furniture and moped.
10. Provide depreciation at 5% on building.
11. Closing stock is Rs. 12,000