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H.S.

C OMTEX CLASSES 8TH YEAR OMTEX CLASSES 8th years of success BOOK KEEPING AND ACCOUNTANCY NAME :______________________________ STANDARD: -S.Y.J.C (Second year junior college) CLASSES :OMTEX CLASSES FOR PRIVATE CIRCULATION ONLY You dont know what you can do until you try IF YOU ARE SATISFIED WITH OUR TEACHING T ELL TO OTHERS IF NOT TELL TO US 1 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR Preface It gives us great pleasure to present this thoroughly revised edition of Omtex B ook Keeping and Accountancy for Standard XII, prepared according to the pattern prescribed by the board. A thorough study and practice of this edition with the help of Omtex guidance (teaching + coaching) will enable the students to pass th e HSC Examination with good marks. Meticulous care has been taken to make this e dition of Omtex Book Keeping and Accountancy perfect and useful in every respect. However, suggestions, if any, for its improvement are most welcome. - Omtex Note: - No part of this book may be copied, adapted, abridged or translated, sto red in any retrieval system, computer system, photographic or other system or tr ansmitted in any form or by any means without a prior written permission of the Omtex classes. 2 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR CH. 1. VALUATION OF GOODWILL [Q. 2 (A): 5 MARKS] Note: - One practical problem on Valuation of Goodwill carrying 5 marks and one theory question on Computer Awareness carrying 5 marks will be asked in Q. 2 of the Board Paper in option to one practical problem on Depreciation carrying 10 m arks. The students may either attempt problem on Depreciation or Goodwill and th eory question on Computer Awareness. Valuation of Goodwill: - As prescribed in t he syllabus, the value of goodwill as on a particular date is ascertained by usi ng any one of the following methods: i. The Average Profit Method and ii. The Su per Profit Method. INTRODUCTION Definition: Goodwill is an intangible (non visible) fixed asset hav ing a realizable (economic) value. It is the reputation of business. Valuation o f goodwill is very important in the case of admission, retirement and death of p artners. PROBLEMS 1. The profits of the firm for the last five years are 2002 Rs . 20,000; 2003 Rs. 16,000; 2004 Rs. 24,000; 2005 Rs. 8000; 2006 Rs. 12,000. Calculate the goodwill of the firm. [Ans. Rs. 16,000] firm is to be valued at three years purchase of the average pr ofit for the last five years. The profit and losses for the last five years have been. 1st Year Rs. 16,000, 2nd Year, 15,000, 3rd Year, 8,000(Loss), 4th Year, 7 ,000, 5th Year, 10,000. [Ans. Rs. 24,000] purchase of average profit of the last six years. Profit and losses of the business in the last six years are as follo ws, [Ans. Rs. 95,000] 1st year, 2nd Year, 3rd Year, 4th Year, 5th Year, 6th Year, Rs, 40,000(Profit) R s, 60,000(Profit) Rs, 10,000(Loss) Rs, 50,000(Profit) Rs, 30,000 (Loss) Rs, 80,0 00(Profit) 2. Mona, Reena and Sona have been carrying on a partnership business and good wi ll of their 3. Calculate the good will from the following information goodwill is valued at three years 4. Calculate the value of goodwill according to average profit method. Goodwill is valued at three years purchase of last four year average profit. The profits and losses fo r the last four years are. [Ans. Rs. 27,000] 1st Year Rs, 2nd Year Rs, 3rd Year Rs, 4th Year Rs, 10,000(Profit) 12,000(Profit ) 4,000(Loss) 18,000(Profit) 3 BOOK KEEPING & ACCOUNTANCY

H.S.C 5. The profit of a firm for the four years from 1991 to 1994 where_ [Ans. Rs. 1, 02,000] 1991 1992 1993 1994 Rs, 40,000 Rs, 45,000 Rs, 55,000 Rs, 53,000 OMTEX CLASSES 8TH YEAR Calculate the goodwill of the firm at 2yrs. Purchase of the average profit for t he last three years. 6. Mr. X a businessperson has earned the following profits in the last five year s. 1995 1994 1993 1992 1991 1, 05,800 1, 02,600 98,400 96,800 95,500 Value goodwill of Mr. X on the basis of three years purchase of average of the p ast five years. [Ans. Rs. 2,99,460] 7. Good will is valued at three years purchase of last five years average profit . The profits for the last five years are. [Ans. 0] 1st Year 2nd Year 3rd Year 4th Year 5th Year 4,800(p) 7,200(L) 10,000(L) 3,000(P ) 5,000(L) Note: - Since the companys average profit is negative. Therefore the firms goodwil l is zero. 8. Compute the goodwill the following case good will is valued at three years pu rchase of average profit of five years. The Profit of the five years were_ [Ans. Rs. 26,40 0] 1st Year 2nd Year 3rd Year 4th Year 5th Year 5,800 7,400 20,000 3,500 7,300 9. Sales of trader for 3years ended 30th June 1995 are as follows [Ans. Rs. 1, 2 2,680] 1995 1994 1993 Rs, 5, 50,000 Rs, 5, 46,000 Rs, 5, 25,000 The profit margin for the 3 years ended 30th June 1995 was 10%, 12%, 12% respect ively. For the purpose of selling the business of the trader, goodwill is to be valued at 2years purchase of the average profit of the last 3years. Find the val ue of good will. 10. From the following particulars, value good will of 2yrs. Purchase of last 5 year s. [Ans. Rs. 70,326] Year ended 31-12-1990 31-12-1991 31-12-1992 31-12-1993 31-12-1994 Turn over 5,15 ,000 5,45,600 5,35,800 5,40,900 5,60,800 Net profit 5% 6% 7% 7.5% 7% 4 BOOK KEEPING & ACCOUNTANCY

H.S.C 11. A firm with an average capital employed of Rs. 1, 60,000 is expected to earn Rs, 40,000 per annum in future. Calculate goodwill at three times the super profit taking t he normal rate of return as 15%. [Ans. Rs. 48,000] OMTEX CLASSES 8TH YEAR 12. Capital employed on 31st December, 1990 was Rs, 1, 00,000/-. The Profits ear ned by the business for the last 5 years where. [Ans. Rs. 87,000] 1986 1987 1988 1989 1990 30,000 40,000 50,000 40,000 60,000 Normal rate of return is 15%. Good will is valued at 3 years purchase of the sup er profits of the business. Find out the value of goodwill. 13. The books of a business showed that the capital employed on 31 st December, 1992 was Rs.1, 00,000/-. Profits for the last five years are_1988, 1989, 1990, 1991 & 199 2 were Rs, 60,000, Rs, 55,000, Rs, 75,000, Rs, 85,000 & Rs, 65,000 respectively. Goodwill is valued at 2 years purchase of the Super profit of the business. NRR is 10%. [Ans. Rs. 1, 16,000] 14. M/s XYZ partnership firm earned net profit during the last four years were R s, 7,000. Rs, 13,000. Rs, 12,000 and Rs, , 50,000. N.R.R on capital eriod is Rs, 500 p.a. Good fit of the above mentioned 8,000. The capital investment made in the firm was Rs is 15%. The remuneration of the partners during the p will is valued at 2 Yrs purchase of Average super pro years. [Ans. Rs. 4,000]

15. M/s Vijay trading company earned net profit during the last four years was f ollows. 1st Year 2nd Year 3rd Year 4th Year Rs, 57,000 Rs, 44,000 Rs, 61,000 Rs, 58,000 The capital investment made by the company is Rs, 1, 50,000. Normal Rate of retu rn on capital is 20%. The remuneration of the partners during this period is Rs, 500 p.m. Good will is valued at 2years purchase of Average Super profit of abov e mentioned period. [Ans. Rs. 38,000] 16. The average net profit expected in the business by ABC firm is Rs, 36,000 pe r year. The average capital employed in the business by the firm is Rs, 2, 00,000. The Rate of interest expected from capital invested in the business is 10%. The remunerat ion of the partners is estimated to Rs, 6,000 P.a. Calculate the value of goodwi ll based on 2years purchase of super profit. [Ans. Rs. 20,000] 17. M/s Rajesh Trading company earned net profit during the last four years were Rs, 15,000, Rs, 28,000, Rs, 30,000 & Rs, 40,000. The capital investment made by the company is 1, 00,000. Normal rate of return on capital is 15 %. The remuneration of the partners during this period is Rs, 1,000p.a. Good will is valued at 2 years purc hase of average super profit of the above mentioned period. [Ans. Rs. 24,500] 5 BOOK KEEPING & ACCOUNTANCY

H.S.C 18.The present average net profit of Braful, Shobha partnership firm before dete cting OMTEX CLASSES 8TH YEAR partners remuneration is Rs, 27,000 p.a. The capital employed in the business by the partner Braful Rs, 1, 00,000 & Shobha Rs, 50,000. The profit expected from t he total capital invested is 10% p.a. The total remuneration is estimated to be Rs, 6,000 per annum. Find out the value of goodwill on the basis of 2 years purc hase of super profit. [Ans. Rs. 12,000] 19. The following balance sheet of Kantilal, Chandrakant. Liabilities Capital Kantilal Chandrakant Reserve Fund Creditors Amount 90,000 70 ,000 44,000 38,000 2,42,000 Balance sheet as on 31st March, 1995 Assets Machinery Building Investments Stock Debtor Bank Profit/loss A/c Amount 5 0,000 41,000 30,000 20,000 66,000 30,000 5,000 2,42,000 The net profits of the firm for the year ended 31st March, 1995 were Rs, 15,000 Rs, 25,000 Rs, 26,000. Ascertain the value of good will at 2 years purchase of t he super profit of the 3years taking the normal rate of return on capital employ ed is 10%. [Ans. Rs. 4,200] 20. The following is the balance sheet of M/s Anna and Chunna as on 31st March 1995. Balance sheet as on 31st march, 1995. Liabilities Capital Anna Chunna Creditors Profit/ Loss A/c Amount 1,64,000 40,00 0 35,000 3,040 2, 42, 040 Assets Machinery Building Plant Stock Debtor Bank Amou nt 10,000 26,000 56,000 56,000 19,040 75,000 2, 42, 040 Net profits for the past 3years are 1st year Rs, 43,350, 2nd year Rs, 36870, 3rd year Rs, 32,280. Normal rate of return on capital employed is 10%. Calculate th e value of goodwill at 2years purchase of the average super profit. [Ans. Rs. 33 ,592] 21. Priti and Pritam are partners sharing profits and losses in the ratio of 3:2 . They admit Prasad for 1/6th share. For the purpose of admission of Prasad, goodwill of the firm should be valued on the basis of 3 years purchase of the last 5 years avera ge profit. The profits were. [Ans. Rs. 1,20,000] Year Profits Rs. 1990 91 60,000 1991 92 62,500 1992 93 45,000(L) 1993 94 42,500 1994 95 80,000 6 BOOK KEEPING & ACCOUNTANCY

H.S.C HOME WORK SECTION 1. Mahipati and Ganpati are partners sharing profits and losses in the ratio of 4:3. They admitted in partnership Shripati for 1/8 share. For the purpose of adm ission of Shripati, goodwill of the firm should be valued on the basis of 2 year s purchase of the last 5 years average profit. Calculate the goodwill of the fir m. [Ans. Rs. 2,00,000] 1991 92 1992 93 1993 94 1994 95 1995 96 Rs. 75,000 Rs. 1,00,000 Rs. 1,25,000 Rs. 85,000 Rs. 1,15,000 OMTEX CLASSES 8TH YEAR 2. Jaya and Maya are carrying on a business in partnership for last 12 years. Go odwill of the firm is to be valued at 3 years purchase of the average profit of last 6 years. 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Rs. 2,20,000(Profit) Rs. 1,20,000(Loss) Rs. 2,60,000(Profit) Rs. 1,80,000(Loss) Rs. 2,90,000(Profit) Rs. 3,20,000(Profit) Rs. 2,10,000(Profit) You are required to calculate the value of Goodwill of the firm. [Ans. Rs. 4,55, 000] [Note: - Last 6 years are to be counted in reverse order of years given. Th erefore, profit given for the year (2000 01) is to be ignored]. 3. Vijay and Azi m carrying on a business in partnership for last 5 years. Goodwill of the firm i s to be valued at 3 years purchases of the average profits of last 5 years. The profits and losses for the last 5 years were: 1996-97 1997-98 1998-99 1999-2000 2000-01 (Profit) Rs. 32,000 (Profit) Rs. 30,00 0 (Loss) Rs. 16,000 (Profit) Rs. 14,000 (Profit) Rs. 20,000 You are required to calculate the value of goodwill of the firm. [Ans. Rs. 48,00 0] 4. The following is the Balance Sheet of Ashok and Nayan: Balance Sheet as on 31st March 2007. Liabilities Capital Ashok Nayan General Reserve Profit & Loss A/c Sundry Credito rs Amount 1,00,000 1,20,000 78,000 56,000 36,000 3,90,000 Assets Plant and Machi nery Furniture Stock Debtors Bank Prepaid Expenses Amount 1,78,000 62,000 48,000 40,000 35,000 27,000 3,90,000 The trading result for the last four years was 2003 04: Rs. 65,000 (Profit), 200 4 05: Rs. 5,000(loss), 2005 06: Rs. 78,000 (Profit) and 2006 07: Rs. 92,000 (Pro fit). Calculate the value of goodwill of the firm at 2 years purchases of the sup er profit considering the Normal rate of return on the capital employed is 13%. [Ans. Rs. 37,475] 7 BOOK KEEPING & ACCOUNTANCY

H.S.C 5. Calculate the value of goodwill of the firm from the following information: i . Total capital employed in the business Rs. 4,00,000. ii. Net profits of the fi rm or the past three years were Rs. 53,800, Rs. 45,350, Rs. 56,250. iii. Normal rate of return at 10%. iv. Goodwill is to be valued at three years purchase of s uper profit. [Ans. Rs. 35,400] 6. Following is the Balance Sheet of Mr. Atul as on 31st March, 1993: Liabilities Capital General Reserve Creditors Bills Payable Amount 77,500 22,500 40,000 5,000 1,45,000 Assets Fixed Assets Current Assets Prepaid Advertisement Amount 85,000 50,000 10,000 1,45,000 OMTEX CLASSES 8TH YEAR

The net profits for the last three years were Rs. 19,500; Rs. 22,500; Rs. 30,000 . Calculate the value of goodwill at two times of super profit, taking into cons ideration the standard rate of return on the capital employed is 15%. [Ans. Rs. 21,000] Note: Capital Employed = Partners Capital + General Reserve + Accumulated Profit Unadjusted losses Expenses yet to be written off. IMPORTANT POINTS TO R MEMBER Any Number which is followed by the word Years Purchase / Times / Thrice / Twice are considered as number of years purchase. If Number of Years of purcha se is not given then assume it as 1 years purchase. If there is a continuous los s in the Firm then the Good will of the Firm would be Zero (0). If the total Pro fits/ Loss are negative then also the goodwill will be Zero. 8 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR CH. 2. COMPUTER AWARENESS [Q. 2 (B): 5 MARKS] Answer the following questions 1. What is the computer hardware? Ans. Computer hardware refers to physical comp onents like input devices, central processing unit and output devices of a compu ter system. 2. Explain about the components of computer hardware? Ans. The computer hardware comprises of the following components. i. Input devices: - The data is required to be transmitted to computer for processing. It is done with the help of input devices like punch card reader, paper tape reader, mark and character reader, k eyboard, speech recognizer etc. ii. Central processing Unit: - This unit process es raw data according to the instructions given to the computer. It has mainly t hree parts. Control unit, Arithmetic / Logic unit and memory unit. iii. Output d evices: - The processed data is to be made available to the user in the form required by him. For this purpose the following devices are used. Printers, visu al display unit etc. This is necessary to provide back up storage. It may be in the form magnetic tapes, magnetic dises, floppies, C.D.s etc. 3. Write a short note on second generation computers. Ans. The computers of the second generation: - We are initially characterized by either magnetic drum or m agnetic core storage later on they used transistors in place of vacuum tubes the transistors being small in size occupied lesser space and power. They were less expensive and generated less heat as compared to the vacuum tubes. The computer became compact. These computers were also applied in other field such as scient ific and mathematical application in addition to application in the fields of bu siness and industry. The United states of America had more than 5000 computers. Some of the important second generation computers are IBM 1620, IBM 1401, IBM 70 94, CDC 1604, CDC 3600, RCA 501 and UNIVAC 1108 of these the most popular model of the second generation was IBM 1401. 4. Write short notes on Third Generation Computers (1965 71) Ans. In the early six ties integrated circuits were developed which were later on used in computers. I ntegrated circuits (I.C.) improved secondary stage devices, new input output dev ices such as Visual Display Unit (V.D.U) and high speed printers. These computer s came to be known as Mini computers. I.C.s were more efficient and they were hav ing much higher speed than transistors. Because of the I.C.s it became possible t o have lot of functions from computers. They had a very large memory. Also many computer languages were introduced. 5. Write short note on Fourth Generation of Computers (1971 85) Ans. In 1971, Inte l corporation developed and I.C. which was a revolutionary in a computer world. Later in 1974, another breed of computer known as Micro computers came into exis tence and which became popular during the fourth phase. The computer which used large 9 BOOK KEEPING & ACCOUNTANCY

H.S.C scale integrated circuits used micro processor chips like 8080, 8085, 8086, 6800 , 68000 of this 8086 and 68000 are 16 Bit chips and rest are 8 Bit chips. It red uced the size and increased the number of functions. Secondary devices are furth er developed. These computers left no field in human life uncovered. Some of the important models of fourth generation are Intel 4004, Apple I & II, DCM Spectru m, 2X Spectrum, BBCs ACCOM, IBM Compatibles etc. and sinclairs ZX 81. OMTEX CLASSES 8TH YEAR 6. Write short notes on First generation Computers. Ans. The first generation co mputers were voluminous computers in which electronic valves were used. They wer e built by using vacuum tube. As the vacuum tubes were used as an electronic com ponent, the computers were very large in size. ENIAC was the first computer of t his category. Thus, the computer from ANIAC to IBM 650 belongs to this generatio n. The data manipulation capacity of ENIAC was thirty times more than the previo us computers vacuum tubes were replaced by the transistors. Transistors were ver y small in size and weighs as compared to vacuum tubes and consumed very low pow er. 7. Write short notes on Central Procession Unit. Ans. It is popularly known as t he heart, Brain and Nervous system of the computer. It provides central control of the operation of the whole computing machine. The CPU is known as a part of t he computer system. The CPU consists of a memory unit, control unit and An Arith metic and logic unit. i. Memory unit: - A memory unit of the central processing unit is a place where the computer program and data are stored during processing . A memory unit is a random access storage device comprising number of storage l ocations. The data which is to be stored in the memory unit for processing are f ixed by the computer program. The main or internal memory is called as primary s torage. It normally consists of the program to be executed and the data required by the program. ii. The Control Unit: - All the operations carried out by the c omputer are directed by the control unit. A control unit is called as the nerve centre of the computer since it controls and co ordinates all hardware operation s. The program and data are transferred from the input device into the memory as directed by the control unit during the execution of the program each instructi on is retrieved in turn from the memory and interpreted. A control unit informs the Arithmetic logic unit as to how precisely the operation to be preformed. It directs the transfer to the Arithmetic logic unit of any item of data that is re quired for operation. iii. The Arithmetic Logic Unit (ALU): - The arithmetic log ic unit comprises a number of accumulators and registers. Accumulator means a re gister and associated equipment in the arithmetic unit of the computer where ari thmetic and logical operations are performed. A register is a hardware device fo r holding data to be operated upon. The ALU obtains the data from the main memor y as per the direction given by the controlling unit based on the program given to it. This data is loaded into accumulators in the ALU. The ALU operates on the data which is available in the main memory. The ALU after processing the data sent to output device. 10 BOOK KEEPING & ACCOUNTANCY

H.S.C 8. EXPLAIN THE IMPORTANCE OF COMPUTER IN MODERN AGE. Today computers are put to a variety of uses. They have been designed with highly improved performances. Co mputers can be used to process voluminous data at a high speed. As regards its a pplication in the field of accounting, a computer should be able to deal with ro utine accounting. It means all normal accounting processes such as financial tra nsactions should be dealt with the use of a computer. All cash and bank transact ions, handling of accounts of debtors and creditors and calculation of wages and salaries etc should be handled with the use of computer. In addition, computers can be put to other popular uses such as production, programming and control, f lexible budgetary control, variance analysis, sales and forward trends etc. Foll owing points explain the importance of computer in modern age. Speed: - In the m odern world, the desire of a man to complete tasks within the stipulated time li mits has been, to a large extent, fulfilled by using a computer. Computers enabl e us to do arithmetical computations with a high degree of speed and ease. It ha s enables us to do things, which would have been almost impossible earlier. The speed which computers functions are measured in Pico seconds (1/1000 of Nano sec ond). Thus, computers are capable of making millions of computations per second. Hence, a powerful computer is capable of completing the tasks in less than an h our, which could have taken a year for a group of people to compute. Accuracy: Computers are not only fast in completing a job at a great speed, but it is als o performed with a high degree of accuracy. Sometimes, it is common to say that there is a Computer error. As a matter of fact, it is Human error and not a Computer error since a computer carries out the instructions efficiently given by the prog rammer. As such, if the instructions are faulty, the errors creep in the compute rs output. Therefore, if the computer is provided with accurate data and instruct ions, there will be no error in the output given by a computer. Thus, a computer offers the greatest advantage of achieving high degree of accuracy in accountin g processes. Diligence: - By doing similar job continuously, human beings get ti red which results into some mistakes. As against this, a computer is capable of doing the same job continuously error free. A computer takes the same time to co mplete the first calculation as well as the 10000th calculation. Thus, the degre e of diligence possessed by a computer is impossible in case the same job is don e by human beings. Storage: - Another advantage offered by a computer is that of its enormous capability to store data. A computer is capable of storing data al ong with the instructions given by the programmer in the primary (main) memory. In case, the primary memory is not sufficient it can be stored in its secondary (auxiliary) memory. There are various devices used for storing the secondary mem ory. Some of the common devices used in secondary memory are Compact Disks, Tape s, Drums, pen Drives etc. Having large capacity to store data. Versatility: - A computer possesses great versatility, which is capable of performing arithmetic calculations, logic operation of comparison and moving data within different sec tions of the computer and in input and output operations. Although, a computer l acks a brain of its own, it can be put to a varied uses such as preparation of m ark lists, financial accounting, share analysis etc. Further, a computer can pro duce results almost in whatever form it is most suitable. Miscellaneous: - In ad dition to the above mentioned advantages, a computer can offer economies in the form of effective managerial control, saving in labour cost because it is fully automatic. OMTEX CLASSES 8TH YEAR 11 BOOK KEEPING & ACCOUNTANCY

H.S.C 9. EXPLAIN THE ROLE OF COMPUTER IN ACCOUNTING. Ans. The role of computer in acco unting is explained as follows. 1. For various reasons, every business organizat ion is required to prepare and maintain various books of account. The computer i s used by many business organizations to carry out accounting operations at a gr eater speed and accuracy. 2. The computer is useful for classifying, processing, analyzing, tabulating, recording and interpreting the accounting data for vario us purposes. 3. It is useful for improving the financial system of the organizat ion. 4. With the help of the computer, accountants can easily, accurately and sp eedily prepare the different source documents like voucher, invoice, quotation, receipt, etc. 5. The computer is useful for recording accounting entries in the journal and posting such entries in the ledger. It is also used to prepare trial balance, final account, accounting statements like Balance sheet, etc. ******** ************************************************************************ OMTEX CLASSES 8TH YEAR 12 BOOK KEEPING & ACCOUNTANCY

H.S.C 8TH YEAR CH. 3. BILLS OF EXCHANGE [Q.3: 17 MARKS] OMTEX CLASSES Note: - In Q.3 of the Board paper, one problem on Renewal of bills of exchange a nd another problem on dealing of multiple bills by a drawer (one drawer and mult iple drawees) will be asked. Students are required to attempt any one out of the se two. DEFINITION:BILLS OF EXCHANGE: - A Bills of Exchange is a Negotiable (exch angeable) Instrument, containing an unconditional order signed by the maker (dra wer) directing a certain person (drawee) to pay a certain sum of money only to t he bearer of the Instrument. THERE ARE THREE PARTIES IN THE BILL OF EXCHANGE. DRA WER: - The drawer is the person or the party who draws the bill. He is the credi tor and he has to receive the money from other person. DRAWEE: - The drawee is t he person or the party on whom the bill is drawn. He is a debtor and he has to p ay the amount to the drawer. Once he accepts the bill he becomes an Acceptor. PAYE E: - The payee is the person or the party to whom the bill is made payable. If t he bill is made payable to the drawer himself, the drawer and the payee are the same person. TERM OF THE BILL: -A bill of exchange is subject to certain terms a nd conditions. Such terms and conditions include period of the bill, place of pa yment, amount of the bill, etc. GRACE DAYS/ DAYS OF GRACE: - While calculating t he due date of any time bill, three extra days knows as days of grace should be added to the specified period mentioned in the bill. For example, a bill drawn o n 15th January, 2007 for two month will become due on 18th March, 2007. DUE DATE S / MATURITY DATES: - The date on which the Bill is ready for the payment is kno wn as due date or maturity date of that Bill. If the due date falls on Sunday or any other public holiday the payment of the bill should be made on the immediat ely preceding working day. If a bill falls due for payment on 15 th August, it m ust be paid on 14th August. If a bill falls due on 26th January, it must be paid on 25th January. In case 25th January is Sunday the payment must be made on 24t h January. HONOUR OF THE BILL: - When the bill is paid on the due date is known as honour of the Bill. DISHONOUR OF THE BILL: - When the Bill is not paid on the due date then it is known as dishonour of the bill. RETIREMENT OF THE BILL: - When the Bill is paid before the due date then it is k nown as retirement of the Bill. HUN DIES: - When the subject matter of the Bill is in Indian language say Tamil, Telungu, Guajarati, Hindi etc. then it is known as hundies. ACCEPTANCE OF THE B ILL: - When the drawee puts the signature on the bill then it is known as accept ance of the bill. THERE ARE TWO TYPES OF ACCEPTANCE GENERAL ACCEPTANCE: - When t he bill is accepted without any terms and conditions then it is known as general acceptance. 13 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR QUALIFIED ACCEPTANCE: - When the bill is accepted with certain terms and conditi ons then it is known as qualified acceptance. DRAFT: - Before the acceptance of the bill, it is known as draft. ENDORSEMENT OF BILL: - When the ownership of the bill is transferred then it is known as endorsement of Bill. There are two part ies in the endorsement of Bill. ENDORSER: - A person who transfers the ownership of the bill is known as endorser. ENDORSEE: - A person on whom the bill has bee n transferred is known as endorsee. TYPES OF BILL: - There are two types of Bill INLAND BILL: - A bill which is drawn & made payable in the same country, it is known as Inland bill. FOREIGN BILL: - A bill which is drawn in one country & mad e payable in another country then it is known as foreign bill. NOTING CHARGES: It is a fee charged by the Notary Public, In case of dishonour of Inland bill. Notary Public is a government officer who is appointed to register the dishonour bill. PROTESTING: - It is also a fee charged by the government in case of forei gn bill. 14 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR Pro Forma of a bill of exchange BILL OF EXCHANGE ________________ ________________ (Drawers Name & Address) _______________ (Date of Bill drawn) ______________ after date, pay __________________________________ ________________ _________________________ or his / her order, the sum of Rupees _____________________ _______________________________________________ only for value received. Rs. ______________/Sd /_______________ (Drawers Name) Accepted Sd /_______________ (Drawees name) _______________ (Date of acceptance) STAMP To ___________________ (Drawees Name) ___________________ ___________________ (Dr awees Address)

Notes: 1. If the question includes Prepare a demand bill or if the term is On deman d, or if the period is not given at all, the wording will be: On demand, pay 2. If t e term given in 45 days after acceptance/sight, the wording will be: Forty five day s after acceptance / sight, pay 3. If instead of the term, the due date itself is g iven the wording will be: On such and such a date, pay 15 BOOK KEEPING & ACCOUNTANCY

H.S.C PREPARE A BILL OF EXCHANGE FROM THE FOLLOWING DETAILS. [Q. 1. (F) - 5 Marks] 1. Drawer Drawee Payee Period Amount Date of bill Accepted on : : : : : : : Soun dariya, Neelam Bhawan, Kalyan Sugandi, Dastur Nagar, Amaravati Umesh , Deogad 90 days Rs. 7,555 15th March 1995 20th March 1995 OMTEX CLASSES 8TH YEAR 2. On 10th March, 1995 Rajesh Bhoyar, Gandhinagar, Nagpur draws a 2 months bill for Rs. 3,000 on Samir Choudhary, Main Road, and Belapur. Samir Choudhary accept ed the bill on 15 th March 1995 3. Drawer : Vilas Patil, 20, M.G. Road, Pune. Dr awee: Vikas Pawar, 31, S.V. Road, Nashik Payee: Viraj Potade, 41, A.B. Road, Sho lapur, Period, 3 months Amount Rs. 7500 Date of Bill, 1st January, 2007 Date of Acceptance: - 3rd January, 2007 4. Drawer Drawee Payee Amount Period Date of Bil l Accepted on 5. Drawee Drawer Period Date of Bill Amount of the Bill Accepted O n 6. Drawer Drawee Payee Period Date of Bill Date of Acceptance Amount of the Bi ll : : : : : : : : : : : : : : : : : : : Shri Narayandas Kela, Gandhi Chauk, Dha mangaon Shri Atul Khatke, Mandrup Road, Solapur Shri Ranjeet Chavan, Ambajogi Rs . 5,000 90 days. 15th March, 1995 20th March, 1995 K . Prabhakar, Nehur Road, So lapur. M. Sudhakaran, Shivaji Nagar, Nanded. 3 Months. 5th February,1996 Rs. 400 0/9th February,1996 Vilas Ptil, 44, M.G. Road, Nanded. Pankaj Pawar, 70, Bhavani Galli, Solapur. Ramchandra Rampure, Rampur. 60 days. : 28th January, 1995 29th January, 1995 Rs. 2,800/16 BOOK KEEPING & ACCOUNTANCY

H.S.C 7. Drawer Drawee Payee Amount Period Date of Bill Date of Acceptance: 8. Drawer Drawee Payee Amount Period Date of Bill Bill accepted 9. Drawer Drawee Payee Amo unt Period Date of Bill Accepted on 10. Drawer Drawee Payee Amount Period Date o f Bill Date of Acceptance 11. Drawer Drawee Payee Amount of Bill Period Date of Bill Date of Acceptance 12. Drawer Drawee Payee Amount Period Date of Bill Date of Acceptance : Rekha, Main Road, Jalgaon. : Basant, Sandesh, Nandura. : Uma Chandak, Khamgaon . : Rs. 2500/: 2 months. : 21st January, 1995 25th January, 1995 : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : OMTEX CLASSES 8TH YEAR Shekhar Desai, Shastri Road, Mahad. Sharad Verma, Narayanpeth, Pune Mukund Pande , Panel. Rs. 3,500/3months. 21st June, 1995 for 3,000 on 25th June, 1995. Vijay Bhat, Main Road, Nagpur. Ashok Kulkarni, M.G. Road, Nagpur. Anil Jadhav, Pune. R s. 6,950. 80 days. 7th March, 1996. 10th March, 1996. For 90 days. Namdev Tukara m, Paithan. Nivruti Sopan, Dehu. Vitthal Pandurang, Pandharpur. Rs. 5,111 3 mont hs 17th August, 1995 20th August, 1995 Priti Chavan, Chandika Road, Malvan. Sneh lata Patil, Prashant Nagar, Ambajogai Archana Ghime, Amaravati Rs, 10,000/2 mont hs. 1st January, 1996 5th January, 1996 Shri Ravindra Patil, Housing Society, Am bajogai Shri Bhaurao Deshmukh, Bazar Chauk, Dhamangaon Shri Prasad Shendage, Mal van Rs. 7,500/3 months 1st January, 1995 5th January, 1995 17 BOOK KEEPING & ACCOUNTANCY

H.S.C 13. Drawer Drawee Payee Amount Period Term Date of Bill Drawn Date of Acceptance Accepted bill for Rs. : : : : : : : : : Abhijit Patil, Vikram nagar, Patna. Tejas Kapare, Kothrud, Pune. Amey Patki, Nag pur. Rs. 7500 60 days After sight 1st June 2006 11th June 2006 7000 only. OMTEX CLASSES 8TH YEAR 14. Drawer: Yamini Gupta, Sarvapriya Vihar, Delhi Drawee Kamini Sharma, Raj baug , Agra. Period 100 days. Term After acceptance Date of Bill 1st January, 2007 Am ount Rs. 10,500/Date of Acceptance 3rd January, 2007 18 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR TRADE BILLS {IN THE BOOKS OF DRAWER & DRAWEE} 1. Anand brought goods worth Rs. 4,500 from Samant on August 1, 2006. On the sam e day, Anand accepted the bill for Rs. 4,500 at 3 months drawn by Samant. Samant got the bill discounted with his bank at 4%. Before the due date, Anand informed Samant abou t his inability to pay the amount of bill. He further requested him to accept Rs . 2,500 in cash and immediately draw upon him a new bill for the remaining amoun t at 2 months together with interest at 8% p.a. Samant agreed. The second bill w as duly paid on maturity. Give journal entries in the books of Samant and Anand. Note: - Here 1st part payment is made and then the interest is charged. 2. On 1st March, Ramchandra sold goods to Raman worth Rs. 8,000/- and Raman acce pted the Bill for Rs. 8,000/- at 3 months drawn by Ramchandra. Ramchandra discounted the bill with his bank @ 6% p.a. On due date the bill was dishonoured and Raman requested Ram chandra to accept Rs. 4,000/- immediately and draw upon him a new bill for the r emaining amount at 3 months together with an interest at 10% p.a. Ramchandra agr eed. The second Bill was duly honoured. Give Journal entries in the books of Ram chandra. Note: - Here 1st part payment is made and then the interest is charged. 3. Premlal sold goods to Sunderlal worth Rs. 10,000/- and Sunderlal accepted the bill for Rs. 10,000/at 3 months drawn by Premlal. Premlal Discounted the bill w ith his bank @ 6 % p.a. on due date the bill was dishonoured and Sunderlal reque sted Premlal to accept Rs. 4,000 immediately and draw upon him a new bill for th e remaining amount at 3months together with an interest at 10% p.a. Premlal agre ed and the second bill was duly honoured. Give the Journal entries in the books of Premlal. Note: - Here 1st part payment is made and then the interest is charg ed. 10,000 to Babita and accepted a bill drawn by Babita for the balance amount for four months. Babita discounted the bill with her bank for Rs. 9600/- Before the due date Archana approached Babita with a request to renew the Bill Babita a greed with the condition that Archana should pay Rs. 6000 with interest of Rs. 1 20 and accept a new bill for the balance. The arrangement was duly carried out. New bill is met on the due date. Pass journal entries in the books of Babita. No te: - Here 1st interest is charged and then the part payment is made. 4. Archana purchased goods from Babita on Credit for Rs. 20,000. On next day Arc hana paid Rs. 5. Baloo owes Kaloo Rs.8000. Kaloo then draws a bill for Rs. 8000 on Baloo for a period of three months. Baloo accepts and return it to Kaloo. Kaloo discounted the bill with his bank at 12 % p.a. On due date, the bill was dishonoured noting charges amount t o Rs. 30. Kaloo then draws a bill for the balance plus interest of Rs. 170. Befo re the due date of this bill Baloo pays the amount at a discount of Rs. 40 to re tire the bill. Pass Journal Entries in the books of Kaloo. Note: - Here only the interest is charged and there is no part payment occurs. 6. Minal draws a bill on Usha for Rs. 5,000 at 3 months. Usha accepts the bill a nd return to Minal. Minal discounted the bill @ 12 % p.a. with the bank. On Maturity Usha finds hers elf unable to make payment of the bill and requested Minal to renew the bill. Mi nal accepts the proposal on the condition that Usha should Pay Rs. 2,000 in cash and accept a new bill at one month along with interest at 10% p.a. These arrang ements were carried through. Usha retires the bill by paying Rs. 3015/- Pass Jou rnal Entries in the books of Minal. Note: - Here 1st part payment is made and th en the interest is charged. MISCELLANEOUS PROBLEM 7. Rupali accepted a bill for Rs. 2,000/- drawn by Deepali

at three months. Deepali got the bill discounted with her bank for Rs. 1,900. B efore the due date Rupali approached Deepali for renewal of the bill. Deepali ag reed on the condition that Rs. 1,000/- be paid immediately together with interes t on the remaining amount at 6% p.a. For balance Rupali should accept a new bill for three months. These arrangements were carried through but afterwards, Rupal i become Insolvent and only 40 % of the amount could be recovered from her estat e. Give journal entries in the books of Deepali. 8. Chanda accepted a bill for Rs. 6,000 drawn by Nanda at three months. Nanda go t the bill discounted with his bank for Rs. 5,700. Before the due date, Chanda approached N anda for renewal of the Bill. Nanda agreed on the condition that Rs. 3,000 is pa id immediately together with an interest on remaining amount at 18% p.a. for fou r months and for the balance Chanda should 19 BOOK KEEPING & ACCOUNTANCY

H.S.C accept a new bill. But afterwards Chanda become insolvent and only 25% of the am ount could be recovered from her estate. Pass journal entries in the books of Na nda. OMTEX CLASSES 8TH YEAR 9. Pankaj draws a bill on Anil worth Rs. 8,000 for three months which was accept ed by Anil. On the same date Pankaj discounted the bill with his bank @ 10 % p.a. On the due date A nil dishonoured his acceptance. Anil paid Rs. 4,000/- to Pankaj and accepted a f resh bill for two months for the balance including interest of Rs. 40. Anil beca me insolvent before the maturity of the bill and 50 paise in a rupee was receive d at first and final dividend from his estate. Give Journal entries in the books of Pankaj. Bhagwan endorsed the bill to Ishwar. On the due date of the bill, Is hwar informed that the bill is dishonoured and the noting Charges were Rs. 20. B hagwan drew a new bill on Deo for the amount due including noting charges and an interest of Rs. 130. Before the due date of the second bill Deo become bankrupt and 20 paise in a rupee was received from his estate as first and final dividen d. Pass the necessary journal entries in the books of Bhagwan. Mahendra for 3 mo nths. After a month Mahendra discounted the bill with his bank at 10 % p.a. On t he due date Ravindra dishonoured his acceptance. Ravindra paid Rs.3, 000 to Mahe ndra and accepted a fresh bill for 3 months for the balance including interest @ 8% p.a. Before Maturity of the Bill Ravindra become insolvent and 50 paise in a rupee was discovered from his estate as first and final dividend. Give Journal entries in the books of Mahendra and Ravindra. amount which Anand owed to Prakas h. Anand accepts the same and return it to Prakash who discounted at his bank fo r Rs. 3,900. On 1st Aug, 1976 Anand requested Prakash to renew the bill and Prak ash agreed on the condition that Rs. 1,000 is paid immediately and Anand should accept the new bill for 3 months for the balance payable plus interest of Rs. 45 . These arrangements were carried through. However, on 1st October, 1976, Anand retired his acceptance for Rs. 3, 035. Pass journal entries in the books of Prak ash and Anand. accepted the bill. On 4th January 1988 Vandana discounted the bil l with her bank for Rs. 5850. However, on the due date the bill was dishonoured. Lata agreed to accept a new bill with an interest of Rs. 100 for a period of on e month. The bill was duly met on the due date. Give the journal entries in the books of Vandana and show Vandanas account in the books of Lata. February, 1989. Mukund accepts it and returns it to Prakash. On 4 th March, 1989, Mukund approac hes Prakash and request him to accept Rs. 1000 in cash and draw a fresh bill for 3 months for the balance plus interest @ 10% p.a. Prakash accepts the request a nd draw a bill accordingly which is accepted by Mukund. On 1st June 1989 Mukund retired his acceptance under discount of Rs. 30/-. Pass journal entries in the b ooks of Prakash and prepare Prakash account in the ledger of Mukund. The bill is sent to the bank for collection. On maturity Ajay finds he unable to make payme nt of the bill and request Abhay to renew it. Abhay accepts the Proposal on the condition that Abhay should pay Rs. 700 in cash along with noting charges of Rs. 10 and draw a renew bill for one months for the balance. These arrangements wer e carried through. Afterwards Ajay retired the bill by paying Rs. 695. Give jour nal entries in the books of Abhay and Ajay. with the bank at Rs. 3900. On the da te of maturity, the bill was dishonoured. Rama paid noting charges for Rs. 20 Kr ishna paid half the mount for the bill and full amount of the noting charges and accepted a bill for the balance including interest of Rs. 50. The second bill w as duly honoured. Pass necessary journal entries in the books of Rama and show K rishnas account. 10. Bhagwan sold goods to Deo for Rs. 3,000. On the same date Deo accepted a bil

l for 2 months. 11. Mahendra sold goods to Ravindra worth Rs. 6000 and for that Ravindra accepte d a bill drawn by 12. Prakash drew a bill for Rs. 4,000 on Anand on 1st May, 1976 for three months . This was for the 13. On 1st January, 1988 Vandana drew a bill for Rs. 6,000 for 2 months periods on Lata. Lata duly 14. Mukund owes (be obligated) Prakash Rs. 4000 for which Prakash draws a bill f or 2 months on 1 st 15. Abhay draws a bill on Ajay for Rs. 1,400 at 3 months. Ajay accepts the bill and returns it to Abhay. 16. Krishna accepted a bill for three months drawn by Rama for Rs. 4000. Rama di scounted the bill 20 BOOK KEEPING & ACCOUNTANCY

H.S.C 17. Jain purchased goods worth Rs. 3,000 from Sharma on 1st June 1977 and gave h im acceptance on OMTEX CLASSES 8TH YEAR 3rd June for a period of three months. On 15th June Sharma discounted the bill f or Rs. 2980. On 6th September, when the bill was presented for payment. Jain dis honoured the same. Rs. 20 was paid as noting charges. Pass journal entries in th e books of Sharma and Sharmas account in the books of Jain. discounted the bill w ith bank at Rs. 7800. On the due date, the bill was dishonoured. Noting charges amounted to Rs. 20. Sagar Paid half the amount of the bill and full amount of th e noting charges including interest of Rs. 100. Pass journal entries in the book s of Sindhu and show the account of Sagar. 80,000. On the same date Shri Jameers heth drew a bill on Shri Nanchand for the same amount for three months. Shri Nan chand accepted the bill and returned the same to Shri Jameersheth on 4th January , 1982. Shri Jameersheth discounted the bill with the banker at 10 % p.a. On the due date bank informed that the bill was dishonoured and Shri Nanchand requeste d Shri Jameersheth to accept Rs. 40000 immediately and draw upon him the new bil l for the remaining amount for two months together and interest at 12% p.a. Shri Jameersheth agreed and the second bill was duly honoured. Pass the necessary Jo urnal entries in the books of Shri Jameersheth of Jalgaon and show Shri Jameersh eths account in the books of Shri Nanchand of Nagpur. Ameet draws a bill for Rs. 7500 on Tushar for four months. Ameet discounts the bill with the bank at 8%p.a. On the due date Tushar requested Ameet to accept Rs. 4,700 (including Rs. 200 f or interest) and to draw a bill for the balance of three months. Ameet agrees th is proposal. Before the due date of the new bill Tushar retires the bill for Rs. 2960. Pass the journal entries in the books of Tushar and open Tushars account i n the books of Ameet. months. Barbar discounted the bill with his bank for Rs. 5 850. Before the Due date, Akbar approaches Barbar with the request for renewal o f the bill. Barbar agreed on the condition that Rs. 4,000 is paid immediately in cash together with an interest on the remaining amount at 12%p.a. for three mon ths and for the balance Akbar should accept a new bill at three months. These ar rangements were carried through. Barbar endorsed the new bill to Kadar. Akbar me t the bill on due date. Give the transaction in the books of Akbar and prepare A kbars account in the books of Barbar. who discounts the bill with the bank at a d iscount of 8%p.a. Before the due date of Bill Moni requested Sonia to accept Rs. 4000 in cash and draw a bill for the balance plus interest at 12%p.a. for two m onths. Sonia draws a bill as the request is agreed. The bill is sent to bank for collection. On the due date the bill was honoured. Pass the necessary journal e ntries in the books of Sonia and Moni. 18. Sagar owes Sindhu Rs. 8000 Sagar accepted a bill for 3 months by Sindhu for Rs. 8000. Sindhu 19. On 1st January, 1982 Shri Jameersheth of Jalgaon sold goods to Shri Nanchand of Nanded for Rs. 20. 21. Akbar owed to Barbar Rs. 6,000. Akbar accepted the bill drawn by Barbar for the amount at four 22. Sonia draws a bill on Moni for Rs. 6,000 at 4 months. Moni accepts the bill and returns it to Sonia 23. Journalize the following transactions in the books of Kamesh:

a. Nanda informs Kamesh that Shantis acceptance for Rs. 4,000 endorsed to Nanda has been dishonoured and noting charges have been Rs. 100 b. Ashok renews his accept ance to Kamesh for Rs. 2400 by paying Rs. 800 in cash and accepting a new bill f or the balance plus interest @ 12 p.a. for 3 months. c. Devas acceptance to Kames h Rs. 12,000 is retired one month before its due date at a discount of 12% p.a. d. The bank informs Kamesh that Sudhakars acceptance for Rs. 4,000 has been disho noured and it has paid noting charges Rs. 80. 24.Journalise the following transactions in the books of Kailash. a. Sandeep informs Kailash that Vilas acceptance for Rs. 8,000 endorsed to Sandeep h as been dishonoured. Noting Charges amounted to Rs. 200. b. Kalpana renews her a cceptance to Kailash for Rs. 7,500 by paying Rs. 3,500 in cash and accepting a f resh bill for the balance plus interest at 10% p.a. for 3 months. c. Uma retired her acceptance to Kailash for Rs. 3,000 by paying Rs. 2,900 in cash. 21 BOOK KEEPING & ACCOUNTANCY

H.S.C d. Kailash sent a bill of Anita for Rs. 6,000 to bank for collection. But Bank i nformed that the bill has been dishonoured by Anita. OMTEX CLASSES 8TH YEAR 25. Journalise the following transactions in the books of Rahul. a. Pradeep informed Rahul that, Vijays acceptance for Rs. 1,000 endorsed to Pradeep has been dishonoured. Noting charges amounted to Rs. 50. b. Nilesh renews his ac ceptance to Rahul for Rs. 600 by paying Rs. 200 in cash and accepting a fresh bi ll for balance plus interest at 12% p.a. for 3 months. c. Prashants acceptance to Rahul for Rs. 3,000 retired one month before due date at a discount of 12% p.a. d. Bank informs Rahul as to the dishonour of Avirajs acceptance for Rs. 1,000 to Rahul, discounted with the bank. Noting charges are Rs. 20. 26.Journalize the following transactions in the books of Maharaja. a. Ayub informs Maharaja that Sadashivs acceptance for Rs. 2,000 endorsed to Ayub has been b. c. d. dishonoured, noting charges amounted to Rs. 150 Pankaj renews his acceptance to Maharaja for Rs. 1200 by paying Rs. 400 in cash and accepting a fresh bill for t he balance plus interest at 12% p.a. for 3 months. Vaibhavs acceptance to Maharaj a for Rs. 6000 retired one month before the due date at a discount of 12%p.a. Ba nk informs Maharaja as to the dishonour of Kasams acceptance for Rs. 2000 to Maha raja discounted with Bank noting charges Rs. 200. 27. Journalise the following transactions in the books of Mr. Ashok Agrawal. The bank informed Mr. Ashok Agrawal that Kamleshs acceptance for Rs. 12,000 sent to bank for collection had been honoured and bank charges debited were Rs. 60. Discharge d Dr. Ashok Agrawals acceptance to Mahesh for Rs. 15,250 by endorsing Prakashs acc eptance to Mr. Ashok Agrawal for Rs. 15,100. Vishal renewed his acceptance to Mr . Ashok AGrawal for Rs. 11,200 by paying Rs. 6000 in cash and accepting a fresh bill for the balance plus interest @ 12% p.a. for three months. Dinesh who had a ccepted Mr. Ashok Agrawals bill of Rs. 14,000 was declared bankrupt and only 45% of the amount due could be recovered from his estate. 28.Journalise the following transactions in the books of Ashwin. Bank informed t hat Sachins acceptance for Rs. 5,750 sent to bank for collection had been honoured and bank charges debited were Rs. 50. Nitin renewed his acceptance for Rs. 7,200 by paying Rs. 2,200 in cash and accepting a new bill for the balance p lus interest @8% p.a. for 3 months. Discharged our acceptance to Pravin for Rs. 4,250 by endorsing Bhavins acceptance to us for Rs. 4,000. Jatin who had accepted Ashwins bill of Rs. 8,500 was declared insolvent and only 40% of the amount due could be recovered from his estate. 29.Journalise the following transactions in the books of Kamalakar. Nisha inform s Kamalakar that Shantis acceptance for Rs. 14,000 endorsed to Nisha has been dishonoured and noting charges have been paid Rs. 200. Asha renews hare acceptan ce to Kamalakar for Rs. 12400 by paying Rs. 6000 in cash and accepting a new bil l for the balance plus interest @ 12% p.a. for 3 months. Devikas acceptance to Ka

malakar for Rs. 42000 is retired one month before its due date at a discount of 12% p.a. The bank informs Kamalakar that Sindhus acceptance for Rs. 15000 has bee n dishonoured and it has paid noting charges Rs. 100. Bank informs Kamalakar tha t Sangitas acceptance for Rs. 12000 which was sent to bank for collection has bee n dishonoured. 22 BOOK KEEPING & ACCOUNTANCY

H.S.C 30. OMTEX CLASSES 8TH YEAR Journalise the following transactions in the books of Ranbir. Sonam informs Ranb ir that Salmans acceptance for Rs. 3200 endorsed to Sonam has been dishonoured an d the noting charges amounted to Rs. 80. Ravindra renews his acceptance to Ranbi r for Rs. 4,800 by paying Rs. 1800 in cash and accepted a fresh bill for the bal ance, plus interest @ 12% p.a for 2 months. Dilips acceptance to Ranbir for Rs 80 00 is retired one moth before the due date at a discount of 12% p.a. The bank inform Ranbir that Shirins acceptance for Rs 5500 to Ranbir discounted w ith the bank earlier has been dishounred and the noting charges Rs. 100. 23 BOOK KEEPING & ACCOUNTANCY

H.S.C 8TH YEAR CH. 4. DEPRECIATION [Q. 2 : 10 MARKS] OMTEX CLASSES Note: - As per the syllabus a Standard XII (SYJC), the students are required to study the following two methods of depreciation only, viz. i. ii. Fixed Installment Method / Original Cost Method / Straight Lime Method / Equal I nstallment method. Reducing Balance Method / Written Down Value Method / Diminis hing Balance Method. PROBLEMS 1. M/s Modern company purchased Machinery worth Rs. 2, 00,000 on 1st Ap ril, 2006. Accounting year of the Company closes on 31st March every year. Compa ny provides depreciation at 10% p.a. on the original cost. On 31st March, 2008 t he machinery was sold for Rs. 1, 20,000. Give the machinery Account and deprecia tion account for three years. [F.I.M] 2. M/s Classic company purchased Machinery worth Rs. 1, 00,000 on 1st April, 200 6. Accounting year of the Company closes on 31st March every year. Company provides depreciation at 10% p.a. on the original cost. On 31st March, 2008 the machiner y was sold for Rs. 20,000. Give the machinery Account and Depreciation account f or three years 3. Shri Yuvraj and company, Kolhapur, purchased furniture for Rs. 60,000 on 1.4. 2007. On 1.10.2009 the company sold out a part of the furniture for Rs. 6000, the origina l cost of which on 1.4.2007 was Rs. 12,000. The company charges depreciation at the rate of 10% p.a. on Original Cost method. The financial year of the company ends on 31st March, every year. Prepare: Furniture account and depreciation acco unt for the years 2007 2008-, 2008 2009, 2009-2010. [F.I.M] additional furniture on 1 10 1977 worth Rs. 16,000. They charged depreciation at 15% p.a. on Fixed I nstalment basis. On 1 10 1979 they sold out one cupboard for Rs. 2,200 original cost of which on 1-4-1977 was 4,000. On the same date a new cupboard was purchas ed for Rs. 8,000. Show the furniture account and depreciation account for the ye ar 1977-78, 1978-79 and 1979-80 assuming that the financial year closes on 31st March every year. [F.I.M] this he had spent Rs. 36,000 on materials and Rs. 16,0 00 on wages. He estimated he life of the furniture to be 10years. He also estima ted that its expected scrap value at the end of its life would be Rs. 12,000. He closed his books of accounts on 31st March every year. He sold the entire furni ture for Rs. 40,000 on 1st October 1978. Show the furniture account and deprecia tion account for the year ended 31st March, 1976, 31st March 1977, 31st December 1978 and 31st December 1979. [F.I.M] towards installation charges. The company depreciates the machinery at the rate of 10% p.a. on original cost. On 1-10-1989 the company sold out a part machinery for Rs. 3,200. The original cost of the s old machinery on 1-4-1987 was Rs. 6,000. On 1-10-89 the company purchased machin ery for Rs. 10,000. As the company closes the financial year 24 BOOK KEEPING & A CCOUNTANCY 4. M/s. Deepali International bought furniture worth Rs. 24,000 on 1 4 1977 and 5. Janab Hasansab of Hyderabad made furniture for his own office on 1 st October 1975. For 6. The company purchased machinery worth Rs. 36,000 on 1-4-1987 and spent Rs. 4,

000

H.S.C OMTEX CLASSES 8TH YEAR 31st March every year. Prepare Machinery account and the deprecation account for the years 1987-88, 1988-89 and 1989-90. [F.I.M] 7. Shirish Enterprises purchased a machinery costing Rs. 36,000 on 1-4-1989 and was installed on the same date. The installation expenses amounted to Rs. 4,000. The firm decided to charge depreciation at 10% p.a. on straight line method. On 1-1 0-91 a part of machinery with an original price of Rs. 6,000/- (including the in stallation charges) was sold for Rs. 3,200 and a new machinery costing Rs. 10,00 0 was purchased on the same date. The firm closes its books of accounts on 31st March every year. Prepare Machinery account and Depreciation account for the yea r 1989-90, 1990-91 and 1991-92 in the books of the firm. [F.I.M] July 1987. Esti mated life of the Furniture is 10 years and scrap value Rs. 24,000. The Furnitur e was sold on 31st December 1990 for Rs. 70,000. The accounts are closed on 31 s t December every year. From the above information prepare Furniture account and Depreciation account for the years 1987, 1988, 1989 and 1990, by charging deprec iation under Fixed Instalment Method. [F.I.M] 8. S. Narayan from Bombay purchased Furniture for his office costing Rs. 1,04,00 0 on 1 st 9. M/s J.K. Company, Maroda, purchased machinery for Rs. 80,000 on 1 st April 20 02. Company purchased additional machinery for Rs. 36,000 on 1 st October, 2003. The company charges depreciation @10% p.a. on the original cost. The financial year of the Company ends on 31st March every year. On 30th September, 2004 a part of the machinery, original cost of which was Rs. 30,000 on 1st April, 2002 was sol d by the Company for Rs. 22,000. Prepare Machinery account for 3 years and give journal entries for the year 2002 2003. [F.I.M] [MARCH 2009]. M/s Dolphin, New d elhi, showed a debit balance of Rs. 32,000 to the Machinery A/c on 1st April, 20 01(Original cost of the Machinery was Rs. 40,000). On 1st October, 2001 the Mill bought additional Machinery for Rs. 15,000 and spent Rs. 1,000 for its installa tion. One more machinery costing Rs. 20,000 was purchased on 31 st March, 2003. Depreciation is charged on 31st March, every year at 10% p.a. under the straight line method. On 31 st March, 2004, the machinery which was purchased on 1st Oct ober, 2001 was sold for Rs. 12000. Prepare Machinery A/c and Depreciation A/c fo r the years 2001 2001, 2002 2003 and 2003 2004. [F.I.M] Accounting year of the C ompany closes on 31st March every year. Company provides depreciation at 10% p.a . on the written down value. On 31st March, 2008 the machinery was sold for Rs. 1, 20,000. Give the machinery Account and depreciation Account for three years. [F.I.M] Accounting year of the Company closes on 31st March every year. Company provides depreciation at 10% p.a. on the Diminishing balance method. On 31st Mar ch, 2008 the machinery was sold for Rs. 20,000. Give the machinery Account and D epreciation account for three years. at the rate of 10% on the Reducing Balance method. On 1 7 75, he sold out a part of the Furniture for Rs. 2,000, the origin al cost of which on 1 4 73 was Rs. 4,000. The financial year of Aurangabadkar en ds on 31st March every year. You are required to prepare his furniture account f or the first four years, and to pass journal entries for the transactions of the third year. [W.D.V.] 25 BOOK KEEPING & ACCOUNTANCY 10. 11. M/s Philips company purchased Machinery worth Rs. 2, 00,000 on 1st April, 20

06. 12. M/s View Sonic company purchased Machinery worth Rs. 1, 00,000 on 1st April, 2006. 13. Aurangabadkar purchased furniture worth Rs. 20,000 on 1-4-73. He charges dep reciation

H.S.C 14. On 1st July, 1992, Ajanta Traders, Pune, acquired a building for Rs. 8,00,00 0. On 1st April, 1993, an extension was made to the above building by spending Rs. 4,00,000. On 1 st October 1994, half of the building was sold through a broker for Rs. 5,60,000 and brokerage at 2% of the selling price was paid. Depreciation is charged on 3 1 st March every year at 10% p.a. under the Diminishing Balance Method. Prepare the Building Account and the Depreciation account for three years. [W.D.V.] OMTEX CLASSES 8TH YEAR 15. M/s Jalaram Mill, Mulund, showed a debit balance of Rs. 32,000 to the Machin ery A/c on 1st April, 2001(Original cost of the Machinery was Rs. 40,000). On 1st October, 2001 the Mill bought additional Machinery for Rs. 15,000 and spent Rs. 1,000 for its installation. One more machinery costing Rs. 20,000 was purchased on 31 st March, 2003. Depreciation is charged on 31st March, every year at 10% p.a. under the Diminishing Balanced Method. On 31st March, 2004, the machinery which was p urchased on 1st October, 2001 was sold for Rs. 12000. Prepare Machinery A/c and Depreciation A/c for the years 2001 2001, 2002 2003 and 2003 2004. (February, 20 08) [W.D.V.] 1st October, 2004 they purchased one more computer for Rs. 40,000. On 1 st October, 2006 they sold one computer, which was purchased on 1 st April, 2004 for Rs. 18,780. Depreciation on computers was provided @ 10% p.a. on dimin ishing balance method and the financial year closes on 31st March every year. Pr epare computer A/c depreciation A/c for years 2004 05, 2005 06 and 2006 07. (Sep tember. 2008) [W.D.V.] 1.10.2009 the company sold out a part of the furniture fo r Rs. 6000, the original cost of which on 1.4.2007 was Rs. 12,000. The company c harges depreciation at the rate of 10% p.a. on Reducing balance method. The fina ncial year of the company ends on 31st March, every year. Prepare: Furniture acc ount and depreciation account for the years 2007 2008-, 2008 2009, 2009-2010. [W .D.V] FEBRUARY 2011. Company purchased additional machinery for Rs. 36,000 on 1 st October, 2003. The company charges depreciation @10% p.a. on the diminishing balance. The financial year of the Company ends on 31st March every year. On 30t h September, 2004 a part of the machinery, original cost of which was Rs. 30,000 on 1st April, 2002 was sold by the Company for Rs. 22,000. Prepare Machinery ac count for 3 years and give journal entries for the year 2002 2003. 16. On 1st April, 2004 Saikripa enterprises purchased two computers of Rs. 40,00 0 each. On 17. Shri Yashraj and company, Kolhapur, purchased furniture for Rs. 60,000 on 1. 4.2007. On 18.M/s J.K. Company, Maroda, purchased machinery for Rs. 80,000 on 1 st April 20 02. 26 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR CH. 5. JOINT VENTURE ACCOUNTS [Q. 4: 12 MARKS] Method I When Separate set of Boo ks is maintained. 1. Dimple and Simple entered into a joint venture. They agreed to share profits and losses in the proportion of their initial contributions to the joint venture . They opened a joint Bank A/c. and deposited Rs. 60,000 and Rs. 40,000 respecti vely as initial contributions. They made cash purchases of Rs. 70,000. They also paid Rs. 4,500 for insurance and freight and Rs. 1,750 for sundry expenses. At the end of the venture, the sales amounted to Rs. 1, 10,000/- There was unsold s tock of goods worth Rs. 5000. Simple took over the unsold stock. The Joint Ventu re was closed. You are asked to prepare Joint Venture A/c. Joint Bank A/c and Co ventures A/c. Also pass journal entries. 2. A and B entered in to Joint Venture to construct a building for X enterprises limited. The contract price was Rs. 2, 50,000. They opened joint bank account a nd deposited Rs. 1,20,000 and Rs. 60,000 respectively and agreed to share profit s and losses in the ratio 3 : 2. The following transactions were made from Joint Bank A/c: Wages Rs. 70,000 and Material purchases Rs. 1,25,000. Apart from this A supplied material of Rs. 12,000 and B paid the architect fees of Rs. 2,500 on completion of construction. X enterprises Ltd. paid the full amount and unsold stock was taken over by B at an agreed value of Rs. 15,000. Prepare Joint ventur e A/c, Joint Bank A/c and Co venturers A/c. Also pass journal entries. 3. Suresh and Ramesh entered into a joint venture to construct a building at a c ontract price of Rs. 7,00,000. They agreed to share profits and losses in the ra tio of 2:1. Suresh deposited Rs. 5,00,000 and Ramesh Rs. 1,00,000 into joint ban k. The transactions were as follows. Purchase of materials Rs. 3,50,000 Tools an d equipment Rs. 1,00,000. Wages Rs. 1,20,000 Architect fees Rs. 25,000 Besides t hese, Suresh supplied material worth Rs. 15,000 and Ramesh supplied material wor th Rs. 13,500. Building was ready and contract price received. Prepare Joint ven ture A/c, Joint Bank A/c & Co Venturers A/c. Also pass journal entries. 4. Ashok, Kishor & Anup undertook the construction of an office building at a co ntract price of Rs. 10,00,000. Receivable in cash Rs. 6,00,000 and Rs, 4,00,000 in shares. They agreed to share profits and losses equally. They opened the join t bank a/c and contributed the following amount. Ashok Rs. 3,00,000, Kishor - Rs . 3,00,000, and Anup Rs.2,00,000. Ashok paid Rs. 10,000 as architect fees, Kisho r brought in the venture mixture of Rs. 25,000 and Anup brought in motor truck o f Rs. 55,000. The following transactions were made from Joint bank A/c. Purchase of material Rs. 4, 50,000, Plant Rs. 30,000 and freight and wages Rs. 1, 50,000 . At the close of the venture, Ashok took away the unused material worth Rs. 8,0 00. Kishor took away the mixture worth Rs. 27 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR 15,000 and Anup took away the truck worth Rs. 35,000. The scrap value realised o f the plant was Rs. 6,000. The Contract price was received in full and Kishor to ok over the shares for Rs. 4,10,000. Prepare Joint Venture A/c, Joint Bank A/c & co ventures A/c. Pass journal entries. 5. Sanjay, Ajay and Vijay entered into a Joint venture for construction of a bui lding for contract price of Rs. 6, 00,000. Payable in cash Rs. 4,00,000 and Rs. 2,00,000 in debentures. They decided to share profits and losses in the ratio of their initial contributions. They opened Joint Bank A/c. where Sanjay deposited Rs. 3,00,000 Ajay Deposited Rs. 2,00,000 and Vijay deposited Rs. 1,00,000. The following payments are made out through Joint Bank A/c . Purchase of material Rs . 2,50,000, Plant Rs. 45,000, Wages Rs. 77,000 and other charges Rs. 11,000. San jay brings truck of Rs. 40,000. Ajay brings materials of Rs. 55,000 and Vijay br ings mixture of Rs. 10,000. At the end of the venture unused material was taken over by Sanjay for Rs. 5,000. Ajay took over mixture for Rs. 15,000 and Vijay to ok over Plant for Rs. 12,000. The truck was sold in the market for Rs. 22,000. C ontract price was received and debentures were taken over by Vijay for Rs. 1,90, 000. Prepare Joint Venture A/c., Joint Bank A/c., Co ventures A/c and also passe s journal entries. 6. Harish, Iqbal and Joseph undertook to construct a building for Prabhu & Co. a t a contract price of Rs. 2, 50,000. The price was to be paid as follows: Rs. 2, 00,000 in cash and balance in preference shares of the company. Profit was agree d to be divided in the ratio of 2:2:1. The participants contributed cash as foll ows. Harish Rs. 30,000 Iqbal Rs. 25,000 and Joseph Rs. 20,000. These amount were credited to a joint bank A/c. Iqbal was to be paid a remuneration of Rs. 1,500 for managing the business. Harish prepared the plats and paid Rs. 3,500 for them . Iqbal brought a concrete mixture for Rs. 12,000 and Joseph brought a truck for Rs. 25,000. They brought Plant for Rs. 15,000 Material for Rs. 1,20,000 and pai d wages Rs. 1,05,000. When the contract was completed Harish took over unused ma terial for Rs. 10,000. Iqbal took back the concrete mixture for Rs. 11,000 and J oseph agreed to take back the truck for Rs. 18,000. The plant was sold as scrap for Rs. 6,000. When the contract price was received, Harish agreed to take over preference shares at a discount of 20%. All the accounts were closed. Prepare Jo int venture A/c, Joint Bank Account and the Co venturers account also pass journa l entries. 7. X, Y and Z entered into a joint venture to construct a premises and the contr act price was Rs. 4,00,000. Payable Rs. 2,00,000 in cash and Rs. 2,00,000 in sha res. X,Y and Z contributed Rs. 1,00,000 each. The following payments were made t hrough bank: Raw materials Rs. 75,000; Transportation charges Rs. 25,000; Machin ery Rs. 50,000; Insurance Rs. 25,000. Besides this X paid other expenses Rs. 20, 000. Y paid for mixture worth Rs. 20,000 and Z brought in materials of Rs. 20,00 0. After completion X and Z took over unused materials of Rs. 5,000 each and Y t ook over the mixture for Rs. 10,000. The scrap of plant was sold for Rs. 8,000. Due to a certain defect, contract price was reduced by Rs. 10,000 and shares wer e taken over by X at a premium of 5%. Prepare Joint Venture A/c. Joint Bank A/c and Co venturers. 8. X,Y and Z entered into a Joint Venture to sell a certain plot of land. They c ontributed Rs. 25,000 each. They purchased land of 5,000 sq. m. at Rs. 10 per sq . m. 1/5 th of the land 28 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR was left over for public roads and the balance was divided into 8 plots of equal size. A plan was got prepared for Rs. 2,000 and other expenses were Rs. 3,500. 5 plots were sold @ Rs, 15 per sq. m. and 3 plots were sold @ Rs. 14 per sq. m. Prepare joint venture A/c Joint Bank A/c and Co Venturers A/c. Pass journal entri es. 9. A, B & C entered into a joint venture sharing profits and losses in the ratio of their initial contributions. They opened a Joint Bank A/c. wherein they depo sited Rs. 1,00,000 Rs. 1,50,000 and Rs. 2,00,000 respectively. Expenses made thr ough Joint Bank were as follows. Purchase of Raw material Rs. 50,000. Paid archi tect fees Rs. 10,000, Plant Rs. 25,000 Besides this, A brought in mixture of Rs. 20,000, B paid insurance charges Rs., 5,000 and C brought in machinery worth RS . 12,000. At the end of the venture, A took back the mixture worth Rs. 5,000, B took back the unused materials for Rs. 4,000 and C took back the machinery for R s. 8,000. Scrap of plat realized Rs. 2,000. On completion they received the cont ract price Rs. 1,00,000 in cash and Rs. 1,00,000 in debenture which where taken over by A at a loss of Rs. 10,000. Prepare Joint Venture A/c Joint Bank A/c and Co venture A/c. Pass Journal entries. 10. Ram and Rajiv entered into a Joint venture to construct a conference hall at a contract price of Rs. 3,00,000. Ram contributed Rs. 1,00,000 and Rajiv contri buted Rs. 1,50,000. Ram brought in material worth Rs. 2,000 and Rajiv Paid trans portation charges worth Rs. 6,000 Plant was purchased for Rs. 50,000 and materia l worth Rs. 2,00,000 were also purchased. On completion, plant was sold for Rs. 20,000. Due to certain defect, one bill of Rs. 20,000 was not recovered and the balance was received in cash. Venturers share profits in the ratio of their init ial contributions. Prepare Joint Venture A/c, Joint Bank A/c and Co venturers A/c and pass Journal entries. 11. A and B entered into a Joint venture. They contributed Rs. 75,000 each and p urchases a plot of 6,000 sq. m. @ Rs. 20 per sq. m. Besides this A got the plan prepared for Rs. 2,000 and B paid the stamp duty of Rs. 3,000. Fencing expenses were Rs. 5,000 and other expenses amounting to Rs. 3,000 were paid from Joint Ba nk A/c. Later on, 1/6th of the land was left over for roads and the balance was divided into 10 equal plots. 5 plots were sold for Rs. 30 per sq. m. and 4 plots were sold for Rs. 40 per sq. m. Remaining one plot was taken over by A for Rs. 10,000. Prepare Joint Venture A/c. Joint Bank A/c and Co Venturers A/c. Also pass the necessary Journal Entries. 12. Pramod and Amit jointly undertook to construct a factory building for a limi ted company. The contract price was Rs. 5, 00,000 and was received after work ha s been completed. They contributed_ Pramod Rs. 80,000 & Amit Rs. 40,000 and depo sited in Joint Bank Account. They agreed to share profit or Loss in the capital ratio. Pramod got plans ready and paid Rs. 5, 000 for that Amit brought into the venture Plant and Machinery valued at Rs. 20, 000 and a motor truck at Rs. 16, 000. For the purpose of erection of factory building, materials of the value of Rs. 3, 50, 000 were purchased and wages paid Rs. 60, 000. They also paid other s undry expenses amounting to Rs. 25, 000. The contract was completed and the comp any settled their account fully. Uninsured Material valued at Rs. 4, 000 was tak en over by Pramod. The plant and Machinery was sold as scrap for Rs. 3, 000 and Amit took back the motor truck at an agreed value of RS. 29 BOOK KEEPING & ACCOU NTANCY

H.S.C OMTEX CLASSES 8TH YEAR 5000. You are required to show Joint venture A/c, Joint Bank A/c in the books of the Joint venture. 13. Raghu and Ramesh entered into a joint venture to produce an advertisement film for Bharati Traders, at a contract price of 40,000. Raghu contributed Rs. 10, 000 and Ramesh Rs. 20,000 and opened a joint account in the bank with these contributions. Raghu purchases from his own funds raw film for Rs. 8, 000 and a Camera for Rs. 7,000 for joint venture. They Paid from the Join t Bank Account: Artists fees Rs. 18, 000, Hire of sets Rs. 2,000 and technician C harges RS. 10,000. The firm was completed but due to certain defects in the firm , the contract Price was reduced by 10% the amount being received by cheque from Bharati Traders. At the end of venture, the camera was sold for Rs. 5,000 and R amesh took over the unused film for Rs. 400. Raghu and Ramesh shared profit and losses in the proportion of 1:2 and settled account of the venture. Prepare the Joint venture Account the Joint Bank account and the accounts of the Co ventures . 14. Suratwala and Bodochwala entered into a joint venture to construct a bridg e of Koyna river at a contract price of Rs. 7, 00, 000. Suratwala and Bodochwala introduced Rs. 1,50,000 and Rs. 1, 00, 000 and opened a joint account in the ba nk. Suratwala supplied material worth Rs. 60, 000 and Bodochwala brought a Motor Truck costing Rs. 50, 000. Total Material used amounted to Rs. 2,50,000; paymen t for wages Rs. 3,00,000 and other expenses amounted to Rs. 40,000. Suratwala to ok over unused material at Rs. 5, 000. Motor truck was sold as a scrap of Rs. 4, 000 contract prices was received in full on completion of contract. Prepare Join t Venture A/c, Co- ventures accounts and Joint Bank Account. 15. Shri Nandkarni o f Nanded and Shri Kulkarni of Kolhapur undertook in January 1983 the constructio n of Ajanta Market Hall for Rs. 5, 00, 000 to be completed within one year. On the same date Nandkarni brought in Rs. 5, 000 and Kulkarni brought Rs. 10,000. Thes e amounts were deposited in a Joint Bank account which was newly opened by them for the purpose. Both agreed to share profits and losses equally. The work was c ompleted in time and the following expenses were incurred and paid from Bank acc ounts, Material Rs. 2,30,000; Wages, Rs. 1,90,000 and Plant Rs. 40,000. The paym ents were received in instalments but due to certain defects a bill of Rs. 15,00 0 was not paid. When the work was over, as half of plant was taken over by Nandk arni @ 20% below while the other half could be sold for Rs. 15,000. Prepare: Joi nt venture A/c, Joint Bank A/c, Accounts of Co- ventures. 16. Manoj and Ambalal enter into a joint venture to prepare a building for the government, who agrees to pay Rs. 2,00,000. A Bank Account is opened in their joint names; Manoj contri buting Rs. 25,000 and Ambalal Rs. 25,000 and it is agreed that they will share t he profit and losses in the proportion of 2/5th and 3/5th respectively. Payment made out of the Joint Bank accounts were: Purchases of Equipments : Rs. 14,000 H ire Purchases of Equipments : Rs. 13,000 Wages : Rs. 85,000 Purchases of Materia ls : Rs. 18,000 Office expenses : Rs. 8,000 Manoj and Ambalal then paid Rs. 5, 0 00 and Rs. 3,000 respectively for other expenses. The building was completed the government paid the amount by cheque and the joint venture was closed. Ambalal taking up the equipments at Rs. 4,000 and Manoj taking up the unused material at Rs. 2, 000. Prepare Joint Venture A/c, Joint Bank A/c and CoVentures A/c. 30 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR Method II: When no Separate set of Books is maintained. I.e. Individual Books of Accounts are maintained. 17. Abhay Kumar and Jaywant en tered into a joint venture to share profits and losses in equal proportion. The following transactions were made: Abhay Kumar brought goods for Rs. 60,000/ Abhay Kumar paid for expenses incurred on the above purchases Rs. 3,500/ Jaywant suppl ied goods of Rs. 24,000 from the stock. Jaywant had to pay Rs. 600/- and Rs. 700 /- for loading and freight respectively on supply of goods. Abhay Kumar paid Rs. 350/- and Rs. 250/- for warehousing charges and other expenses respectively. Ab hay Kumar sold goods for Rs. 1,20,000/ Jaywant sold goods for Rs. 10,000/ The unso ld stock of goods was taken over by Jaywant for Rs. 5,000/You are asked to prepa re Joint Venture account and Jaywant A/c in the books of Abhay Kumar 18. A and B entered into a joint venture to sell carpets. A purchased 200 carpets at Rs. 20 each and B purchased 100 at Rs. 25 each. A paid transportation expenses Rs. 500 and also paid freight Rs. 200. B Paid advertising expenses Rs. 100. Later on A sold 150 carpets for Rs. 35 each and B sold 125 carpets for Rs. 30 each. Remaini ng 25 carpets were taken over by B for Rs. 500. Venturers settle their accounts. You are asked to prepare Joint Venture account and Bs Account in the books of A. 19. Humayun and Phiroz entered into a joint venture. They agreed to share the pr ofits and losses equally. Following transactions were made by them. Humayun boug ht goods Rs. 90,000 Phiroz paid for freight Rs. 7000 Phiroz sold goods Rs. 75,00 0 Phiroz paid commission on sales Rs. 2500 Humayun paid for warehousing charges Rs. 3500 Humayun sold rest of the goods Rs. 45,000 Humayun paid commission on sa les Rs. 3500 You are asked to show as to how the above transactions will be ente red in the books of Humayun. 20. Ramrao and Shamrao decided to undertake a business venture jointly. They agr eed to share the profits and losses in the proportion of 2/3 and 1/3 respectivel y. Ramrao supplied goods for the joint venture worth Rs. 15,000 and paid Rs. 650 for carriage and freight. Shamrao supplied goods worth Rs. 12,000 and spent Rs. 500 for sundry expenses. Shamrao sold goods for Rs. 35,000. Shamrao is entitled to get a commission of 10% on sales as per agreement. Shamrao settled the accou nt of Ramrao by remitting the amount due by bank draft. Open the necessary ledge r account in the books of Ramrao. 21. East and West entered into a joint venture to share profits and losses in the ratio 2:1 to sell rice. East purchased 100 b ags of rice at Rs. 200 each. He also paid packing charges Rs. 2000 and freight R s. 300. West paid warehousing charges Rs. 1000 and sold all the bags for Rs. 300 each. He was entitled to a commission of 5% on sales. They settled their accoun t by a draft. Prepare necessary ledger accounts in the books of west. 22. Kapil and Rohan entered into a joint venture to deal in computers. They agre ed to share profits and losses in the ratio 3:2. Kapil purchased 20 computers @ Rs. 25,000 each and supplied 5 computers @ Rs. 20,000 each from his own shop whi le Rohan purchased 15 31 BOOK KEEPING & ACCOUNTANCY

H.S.C computers @ Rs. 24,000 each and got 5 computers from his godown @ Rs. 20,000 eac h. Kapil paid for the transportation charges amounting to Rs. 30,000 while Rohan paid for insurance and other charges totally amounting to Rs. 40,000. Finally a ll the computer were sold except 4 computers out of which both took back 2 compu ter each @ Rs. 17,000 each. Kapil sold 16 computers and Rohan sold the remaining computers. The selling price of each computer was Rs. 32,000 each. Both the ven turers were to get 4% commission on the sales made by them. The venturers settle their accounts by a draft. You are required to prepare Joint venture A/c and Co Venturers account in the books of Kapil. 23. Jaganlal of Mumbai purchases cotton goods and supplied them to Babanlal of D elhi for sale on joint venture basis. They have agreed to share the profits and losses equal proportion. Jaganlal bought goods worth Rs. 35,000/- and sent them to Babanlal in Delhi. Jaganlal paid Rs. 2500 towards the freight charges. Jaganl als bill of exchange for Rs. 20000 payable after 3 months drawn on Babanlal was a ccepted by Babanlal. Jaganlal discounted the same bill with bank for Rs. 18200. Babanlal informed Jaganlal that he had incurred Rs. 4500 expenses and the entire goods were sold for Rs. 50,000. Babanlal remitted the required amount to Jaganl al. You are required to prepare Joint venture A/c and Coventurers account in the books of Jaganlal of Mumbai. 24. Satish and Ramesh enter into a joint venture to deal in TV. Sets. Satish is to purchase TV sets in Mumbai and sent it to Ramesh in Pune. They agreed to share profits and losses in the ratio of 3:1. Satish pu rchased 50 TV sets in Mumbai costing Rs. 7000 each and paid Rs. 10,000 as transp ortation cost. Ramesh received the consignment and sold all the TV sets at a lum p sum price of Rs. 4, 45,000. Ramesh sent a draft of Rs. 75,000 to Satish as an advance. The expenses incurred by Ramesh were Rs. 6000 to sell the TC sets. Vent urers settle their accounts. You are requested to open Joint Venture A/c and Rame sh A/c in the books of Satish. 25. Mahesh and Kalpesh enter into a joint venture to share profits and losses in the proportion of 3:2. Mahesh paid Rs. 25,000 fo r purchases of goods and supplied goods of Rs. 3500 from his stock. Kalpesh made purchases of R. 78000 for the joint venture in addition to goods supplied from his godown worth Rs. 14000. Mahesh accepted a bill drawn by Kalpesh of Rs. 25000 which was discounted by Kalpesh for Rs. 24000 and the discount to be treated as an expense of the joint venture. Kalpesh also received Rs. 5000 cash as an adva nce from Mahesh. The expenses of the joint venture amounted to Rs. 10000 which w ere paid by Mahesh and Kalpesh equally. Mahesh sold goods amounting to Rs. 3000 and Kalpesh could sell goods worth Rs. 70000. The unsold goods were taken away b y Mahesh for Rs. 4000. The Coventurers are entitled for a commission of 10% of sa les made by them. Venturers settled their accounts by cheque. Prepare Joint ventu re account and coventurers account in the books of Mahesh. 26. Usha and Sulbha de cided to undertake a venture jointly. They agreed to share profits and losses in the ratio of and respectively. Usha supplied from her own stock goods worth Rs. 90,000 and paid Rs. 3,600 for freight. Sulbha supplied goods worth Rs. 72,000 a nd spent Rs. 3,000 for sundry expenses. Usha drew a 4 months bill on Sulbha for Rs. 12,000 as an advance. The same was discounted by her at 15% p.a. and discoun t was charged to Joint Venture A/c. Sulbha sold all the goods for Rs. 2,10,000. At the end of the venture, the accounts were settled. Give journal entries in th e books of Usha. OMTEX CLASSES 8TH YEAR 27. Narayani and Indrayani entered into a joint venture to buy and sell second h and motor cars and agreed to share profits & losses equally. Narayani purchased two cars for Rs . 75,000 and Rs. 78,000 respectively, paid Rs. 4,000 for repairing these cars an d sold them for Rs. 1,30,000 and Rs. 1,40,000 respectively. Indrayani purchased

three cars for RS. 2,70,000 in all, incurred an expense of Rs. 4,000 for recondi tioning these cars, sold two cars at a total price of Rs. 2,40,000 and took over the third car at an agreed price of Rs. 90,000. Prepare the Joint Venture A/c a nd the Co Ventures A/c in the books of Narayani. 28. Pritam of Sindhudurg and Prasad of Ratnagiri entered into a joint venture to consign 100 computers to Priti of Mumbai to sell at their joint risk which is i n proportion of 2/3 and 1/3 respectively. Pritam supplied 55 computers at Rs. 25 ,000 each paying freight of Rs. 7,500 and other charges Rs. 1,500. Prasad supple d 45 computers at Rs. 24,000 each paying insurance Rs. 750, freight Rs. 350 and other charges Rs. 1,800. Pritam advanced to Prasad Rs. 25,000 on account of vent ure. All the computers were sold by Priti for Rs. 28,00,000 out of which she 32 BOOK KEEPING & ACCOUNTANCY

H.S.C deducted 2% for her expenses and 2% for her commission on total sales. Priti rem itted Rs. 13,00,000 to Pritam by bank draft and balance to Prasad by accepting a bil drawn by Prasad for one month. Pass Journal Entries in the books of Pritam assuming that all accounts have been finally settled. 29. Ramsingh of Rampur and Narsingh of Nagpur entered into Joint Venture. They decided to send 500 TV sets to Harsingh of Hyderabad on their joint risk. They share profits and losses in the ratio of 3/5 and 2/5 respectively. Ramsingh sent 300 sets at Rs. 2,500/- eac h and paid Rs. 17,000/- for the expenditure of sending the goods. Narsingh sent 200 TV sets at Rs, 2,000/each and paid Rs. 13,000 for the expenditure of sending the goods. Ramsingh advanced to Narsingh Rs. 50,000/- on account of Joint Ventu re. All the TV sets were sold by Harsingh for Rs. 14,00,000/- from which he dedu cted 3% for his expenses and 2% commission on total sales and he remitted Rs. 10 ,00,000 to Ramsingh and the balance amount to Narsingh. The co venturers closed their venture and settled their accounts. Prepare: Joint Venture A/c, Narsingh A /c, Harsingh A/c in the books of Ramsingh. 30. Anil and Sunil entered in to a jo int venture to consign 500 bales of cotton to Mukesh to be sold on their joint r isk. Anil sends 150 bales at Rs. 300 each and pays Rs. 2000 for freight and insu rance. Sunil purchases 350 bales at Rs. 250 each paying for insurance and other charges Rs. 4000. Anil advances a cheque of 12,000 to Sunil and also accepts a b ill for the same amount drawn by Sunil which was discounted by Sunil@ 90% of its value. Mukesh sold all the bales @ Rs. 400 each. The expenses incurred by Mukes h are Rs. 5000 and his commission was 10% of the sales value. Mukesh remits Rs. 100000 to Sunil and the balance to Anil by a cheque. Venturers settle their acco unts by a draft. Prepare joint ventures account and coventurers account in the bo oks of both the parties and pass journal entries. 31. Nagpurkar of Warud and War udkar of Akola entered into joint venture to sent oranges to M/s Modern Fruit Co ., Amrutsar on their Joint risks for sale. They decided to share profits and los ses equally. Nagpurkar purchased oranges of Rs. 2,40,000and paid for transportat ion, packing and insurance Rs. 70,000. Warudkar purchased oranges of Rs. 3,70,00 0 and paid for transportation, packing and insurance Rs. 1,00,000. All the orang es were sold by M/s Modern Fruit Co. For Rs. 10,00,000 from which company deduct ed Rs. 25,000 for expenses and 5% commission on sale proceeds and remitted Rs. 5 ,00,000 to Warudkar and remaining amount to Nagpurkar. The co ventures closed th eir venture and settled their accounts. Prepare Joint venture account, Warudkar account, M/s Modern Fruit co. Account in the books of Nagpurkar. 32. Arun of Sol apur and Dhanaji of Sangli entered into Joint venture to send 100 bales of cotto n to Shivaji of Mumbai to be sold at their equal joint risks. Arun sends 60 bale s at Rs. 12,000 each and pays Rs. 18000 for freight and other charges. Dhanaji s ends 40 bales at Rs. 11,000 each and pays Rs. 10,000 for freight and other charg es. Shivaji sold all the bales of cotton at Rs. 15,00,000. He charges Rs. 10,000 as his commission and other expenses and remits the balance due fully to Dhanaj i. Dhanaji settled account of Arun by remitting to him the balance due. You are required to prepare Joint venture account, Dhanaji account, Shivaji account in t he books of Arun. 33. Methe and Mane decided to undertake the business jointly. They agreed to share the profits and losses in the ratio of and respectively. Me the supplied goods from his own stock for joint venture worth Rs. 4,50,000 and p aid Rs. 15,000 for carriage and freight. Mane supplied goods worth Rs. 3,60,000 and spent Rs. 15,000 for sundry expenses. Methe drew a bill on Mane for Rs. 60,0 00 as an advance. Mane sold goods for Rs. 10,50,000. AT the end of venture the a ccounts were settled. Give Journal entries in the books of Methe. 34. Vithal of Bombay and Kailash of assai entered into Joint Venture to purchase and sell cycl es. They decided to share profits and losses equally. Vitthal purchased 200 cycl es at Rs. 500 each and spent Rs. 2000 for carriage, Rs. 4000 for insurance and d raws a bill for Rs. 20000 on Kailash, which is duly accepted by Kailash. Kailash purchased 140 cycles at Rs. 600 each and spent Rs. 10 per cycles for carriage a nd Rs. 2000 for selling expenses. Vitthal sold 180 cycles at Rs. 750 each. All t he remaining cycles of venture were sold by Kailash at Rs. 550 each. Joint

OMTEX CLASSES 8TH YEAR 33 BOOK KEEPING & ACCOUNTANCY

H.S.C venture was completed and both the parties settled their accounts. You are requi red to pass journal entries in the books of Vitthal. 35. Yashpal of Udgir and Ba lu of Latur entered into Joint Venture to consign 300 machines to Amol of Amrava ti to be sold on their joint risk which is in the proportion of 2:3 respectively . Yashpal sent 180 machines at Rs. 300 each and paid freight Rs. 700 and sundry expenses Rs. 300. Balu sent 120 machines at Rs. 250 each and paid for insurance Rs. 500 and carriage Rs. 500. Amold sold all the machines at Rs. 400 each. He sp ent Rs. 4,000 for advertisement and Rs. 1,000 for godown charges. Amol deducted 5% commission on sales and sent Rs. 80,000 to Yashpal and balance to Balu by ban k draft. Prepare: Joint venture A/c, Balus A/c, Amols A/c in the ledger of Yashpal . OMTEX CLASSES 8TH YEAR 34 BOOK KEEPING & ACCOUNTANCY

H.S.C 8TH YEAR CH. 6. SINGLE ENTRY SYSTEM [Q. 5: 10 MARKS] OMTEX CLASSES Proprietary concerns 1. Rao commenced business on 1st April, 06 with cash of Rs. 20,000. On 1st Oct, 06, he introduced a further capital of Rs.5,000. During the year he withdrew Rs. 400 p.m. for personal use. On 31st march, 07 his asset and liabilities were: Sto ck in trade 20,000 Debtor 15,000 Furniture 4,000 Cash at bank 3,000 Unpaid expen se 1,000 Sundry creditors 8,000 Prepare closing statement of affairs and profit earned by Mr.Rao for the year ended 31/3/07. 2. The following information is ava ilable from Rajendras records: Particular 1.4.06 31.3.07 Creditor 5,000 8,000 Ban k overdraft 15,000 Bank balance 10,000 Plant and machinery 10,000 20,000 Furnitu re 4,000 4,000 Debtors 30,000 52,000 Stock 34,000 28,000 Ram had withdrawn Rs.50 00 for personal expenses and Rs. 4000 for sons marriage. Out of business funds, h e had also purchased a residential building costing Rs.20000; which is not shown in the above balance. Additions to Machinery were made on 1/04/06. Dep. at 10 % p.a. should be provided on plant and machinery. Find out Rams net profit for the year ended 31st march 07. 3. On 01/04/06, Mr. Bannerjee commenced business with a capital of Rs.25,000. During the year 2006-07, he with drew for his personal u se goods worth Rs.2, 000 and cash Rs.3,000. He also gave a donation of Rs. 500 t o shri Ramakrishna mission. He paid Life Insurance premium of Rs.1000.During the year, he received a gift of Rs.5000 from his father by cheque which was deposit ed in the bank account of the business. On 31/3/07; his position was as under: P articulars RS Machinery 20,000 Furniture 2,000 Stock 5,000 Debtors 8,000 Balance at bank 1,500 Prepaid insurance 200 Payable to creditors 3,000 Liabilities for expenses 700 35 BOOK KEEPING & ACCOUNTANCY

H.S.C Find out the profit earned by him after providing for depreciation at 10% on pla nt & Machinery and furniture and Rs.400 as reserve for Doubtful Debt. Also prepa re statement of affair as on 31.03.07. 4. Ash keeps her books on single entry & following information is disclosed. Particulars 31.3.06 31.3.07 Cash 18,000 27,0 00 Stock 15,000 18,750 Debtors 30,000 45,000 Furniture 7,500 7,500 Sundry credit ors 26,250 31,500 Bills payable 9,000 Loan from y 3,000 Investments - 15,000 Miss Ash transferred Rs150 each month during first half year and Rs.100 each month fo r the remaining period from her business to her private banking account by way o f drawing, and took away Rs.350 worth of goods for private use. She sold her pri vate car for Rs.3, 500 and proceeds were utilised for business. Furniture to be depreciated by 10% and Reserve for Doubtful debts to be maintained at 5% on debt ors. Prepare opening and closing statement of affairs and also profit and loss s tatement for the year ending 31/03/07. 5. Mr. Mukesh maintains single entry book s of accounts. From the following details, determine profit for the year and sta tement of affairs at the end of year: Rs.1000 (cost) furniture was sold for Rs.5 ,000 on 1st April,06 ; 10% depreciation is to be charged on furniture. Mr. Mukes h has drawn Rs.1000 per month and Rs.2,000 was invested in 2006. Particulars 1.0 4.06 31.3.07 Stock 40,000 60,000 Debtors 30,000 40,000 Cash 2,000 1,000 Bank 10, 000 5,000( O. D ) Creditors 15,000 25,000 Outstanding expenses 5,000 8,000 Furni ture(cost) 3,000 2,000 st April 06 is as per cash book, but the bank overdraft o n 31.03.07 is Bank balance on 1 as per bank statement. Rs2,000 cheques drawn in March 07 have not been en cashed with in the year. Provide interest on Drawing @ 10%p.a. 6. Mr. Ganesh keeps his books by single entry method. His financial pos ition on 1.01.04 and 31.12.04 was as under. Particulars 1.1.04 31.12.04 Cash 10, 000 16,000 Bank 20,000 36,000 Stock 16,000 24,000 Debtors 24,000 30,000 36 BOOK KEEPING & ACCOUNTANCY OMTEX CLASSES 8TH YEAR

H.S.C OMTEX CLASSES 8TH YEAR Creditors 15,000 18,000 Plant and machinery 60,000 90,000 Furniture and fitting 18,000 18,000 During the year Mr. Ganesh withdrew Rs.8,000 for his private purpo se and he had used 2,000 worth of stock also for his private purpose. On 1.10.03 he sold some of his house hold furniture for Rs.2,000 and paid this amount into his Bank A/c of business. Prepare a statement of profit & loss for the year end ed 31.12.04 and a statement of affairs after taking into consideration the follo wing: 1. Provide interest on capital @ 5% p.a on opening balance and Interest on drawing ( only on cash drawings) @10% p.a. (on an average of 6 months) 2. Depre ciate plant and machinery @10 %( assuming addition were made on 1.10.04) and fur niture at 5%. 3. stock on 31.12.04 was overvalued by Rs.2,000 4. Write off bad d ebts Rs.2,000 and provide Reserve for Doubtful debts at 7.5% on debtors. 7. Moha n keeps his books under single entry system. Prepare: Statement of affair as on 31.12.00 & 31.12.01. Statement of profit/loss for the year ending 31.12.01. He g ives the following information: Particulars 31.12.01 31.12.00 Bank balance 4,500 Cr. 1,000 Dr Stock 12,000 15,000 Debtors 9,300 10,400 Furniture 9,600 9,600 Cre ditors 10,900 14,300 Loose tool 2,700 2,700 Outstanding salary 1,000 1,500 Prepa id insurance 300 200 Add information: 1.He has withdrawn from business Rs 2,500 of which he spent Rs2,000 For investing in securities in the name of the busines s. 2. Provide depreciation at 20% on loose tools and 7% on furniture. 8. Premjee t a trader keeps his books by the single entry Method. His financial position on 1st April 06 and on 31st March, 07 were as follows: Particulars 1.04.06 31.03.0 7 Cash in hand 1,500 1,600 Bank balance 1,200(Dr.) 1,800(Cr.) Stock in trade 4,0 00 4,650 Debtors 3,400 3,800 Creditors 2,400 3,600 Plant and machinery 6,000 8,0 00 Furniture 1,200 1,600 During the year, Sri Premjeet had withdrawn Rs.75 per m onth for his household use. From the above information ascertain his profit or l oss for the year ended and also give his statement of affairs as on 31.03.07 aft er taking into account the following further information: 37 BOOK KEEPING & ACCOUNTANCY

H.S.C 1. Depreciate plant and machinery by 15% and furniture by 121/2% p.a (assume the OMTEX CLASSES 8TH YEAR addition on 30th September,2006) 2. Of the debtors Rs100 are bad and to be writt en off. 3. Create a reserve for Discount on Debtors at 2% and a reserve for Doub tful debts at 5%. 4. Allow interest on capital at 5% and charge interest on Draw ing at 6%p.a 9. Mr. Gopal maintained his books on single entry. The following st atement of affairs had been Prepared as on 31.03.06 Liabilities Amt Asset Amt Ca pital account 28,000 Leasehold land 2,075 Sundry creditors 3,170 Plant and Machi nery 4,940 Bill payable 2,150 Stock in trade 9,673 Book debts 15,550 Cash in han d 1,082 33,320 33,320 On 31.03.07 it was learnt that he had introduced further c apital of Rs1,000 on 1 st july,06 and he drawn Rs1,580 on various dates during t he year. It was also ascertained that the proprietor had taken Rs.75 worth of go ods for his own use. Statement prepared on the same date disclosed that book deb ts were Rs.14,640, Creditors were Rs.2,309 and Bills payable were Rs.1,775. The stock was valued at Rs.11,417 and cash in hand amounted Rs.917 on the same date. Prepare: 1. Statement of profit for the year 06-07 2. Statement of affairs as o n 31.03.07 taking in to consideration the following: 5% Reserve to be created on Book debts. 5% Depreciation to be written off on plant and machinery. Rs.125 to be written off the lease. Interest at 5% p.a. to be provided on the capital. 10 . Mr. Suryakant maintains books on single entry and who gives you the following information. Particulars 31-3-2006 31-3-2007 Cash in hand 500 2000 Cash at bank 2500 5000 Stock 20000 30000 Sundry debtors 25000 40000 Investments 20000 20000 F urniture 10000 25000 Machinery 25000 40000 Sundry creditors 10000 10000 Outstand ing expenses 3000 2000 Additional information 1. Mr. Suryakant introduced furthe r capital of Rs. 20000 on 1st July, 2006 and had withdrawn Rs. 10,000 during the year. 38 BOOK KEEPING & ACCOUNTANCY

H.S.C 2. 3. 4. 5. 6. Interest on capital is allowed at 10% p.a. Additions to furniture and machinery were made on 1st October, 2006 Write of deprecation on furniture and machinery a t 10% p.a. Create reserve for doubtful debts at 5% on sundry debtors. Prepare: a . Statement of affairs. B. Statement of profit and loss for the year ended 31st March, 2007. OMTEX CLASSES 8TH YEAR 11. Mrs. Archana keeps her books on single entry system and gives the following information. Particulars 31-3-2006 31-3-2007 Cash at bank 5000 32000 Sundry debt ors 25000 40000 Stock in trade 30000 50000 Furniture 20000 20000 Machinery 50000 50000 Bills payable 5000 5000 Sundry creditors 15000 20000 Additional informati on Mrs. Archana withdrew from business Rs. 15,000 for personal use. She further introduced fresh capital of Rs. 25,000. Depreciation is to be charged @10% p.a. on Furniture and Machinery. Prepare: (i) Statement of Affairs as on 31-3-2006 (i i) Statement of Affairs as on 31-3-2007 (iii) Statement of profit or loss for th e year ending 31-3-2007. Partnership Firms 12. Sameer and Ashok are partners in a partnership form sharing profits and loss es in the ration of 2:1. They maintain their books of accounts under single entr y system. The following information is available form their records. Liabilities Amt Capital accounts Sameer 270000 Ashok 145000 12% Loan from Sameer 50000 Bill s Payable 18000 Sundry Creditors 24000 Bank Overdraft 17000 Asset Buildings Mach inery Furniture Stock in Trade Sundry Debtors Cash in Hand Goodwill Amt 250000 1 00000 59000 16000 22000 15800 46200 39 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES Profit and Loss A/c 524000 8TH YEAR 15000 524000 Further information On 31st March, 2009 their assets and liabilities were: Build ings Rs. 300000, Machinery Rs. 160000, Furniture Rs. 59,000, Stock in Trade Rs. 24,000, Sundry Debtors Rs. 23,000, 12% Loan from Sameer Rs. 50,000, Bills Payabl e Rs. 19,000, Sundry Creditors Rs. 21,500, Bank over draft Rs. 15000, Profit and Loss A/c (Dr. Balance) Rs. 10,000, Cash in hand Rs. 20,000 and Prepaid insuranc e Rs. 5400. Additions were made to Buildings and Machinery on 1st July, 2008 and 1st September 2008 respectively. Prepare a Profit or Loss Statement for the yea r ended 31st March, 2009 and a closing Statement of Affairs as on that date by c onsidering the following adjustments. Adjustments: i. Buildings and Machinery ar e to be depreciated by 5% p.a. and 10% p.a. respectively. ii. Bad debts are writ ten off Rs. 5000 and provision for Bad and Doubtful debts be made at 5% on debto rs. iii. Goodwill is valued at Rs. 40,000 and furniture are valued at Rs. 55,000 . iv. During the year 2008 2009, Sameer and Ashok had withdrawn Rs. 24,000 and R s. 25,000 respectively. v. During the year 2008 2009, Sameer and Ashok had intro duced Rs. 20,000 and Rs. 35,000 respectively as further capital. 13. Usha, Asha and Harsha were partners in a firm sharing profit and losses as 2/5, 2/5 and 1/5 respectively. They kept their books on single entry system. The following infor mation is available from their records. Liabilities Amt Amt Asset Amt Amt Capita l accounts Land & buildings 90000 Usha 90000 Plant & machinery 60000 Asha 90000 Furniture & fixtures 40000 Harsha 63000 243000 12% investments 20000 Sundry Cred itors 8000 Stock in Trade 15000 Bills Payable 6000 Bills Receivable 5600 Outstan ding Salaries 1200 Sundry Debtors 18000 10% Bank Loan 8400 Less: R.D.D. (600) 17 400 Cash in hand 8000 Cash at bank 10000 Prepaid Rent 600 266600 266600 Further information (1) During the accounting year 2001 2005 Usha, Asha and Harsha had w ithdrawn Rs. 8,000, Rs. 6,000 and Rs. 7,000 respectively for their personal 40 BOOK KEEPING & ACCOUNTANCY

H.S.C use. On 1st October, 2004 Usha, Asha and Harsha had introduced Rs. 14,000, Rs. 1 3,000 and Rs. 10,000 respectively as further capital. (2) Interest on capital @1 2% p.a. and on drawing @10% p.a. is provided. (3) As Usha was working as managin g partner, she was given salary of Rs. 1,200 p.m. and Asha was given commission @ 2% on gross profit. (4) Provide for Bad debts Rs. 600 and maintain R.D.D. @ 5% on debtors. (5) The financial position of the firm as on 31st March 2005 was on follows: Land & Building Rs. 90,000, Plant & machinery Rs. 70,000 and Furniture & Fixtures Rs. 40,000, 12% Investments Rs. 30,000, Stock in trade Rs. 14,000, B ills Receivable Rs. 10,200, Sundry Debtors Rs. 25,000, cash in hand Rs. 15,000, Cash at Bank Rs. 16,000, Prepaid Rent Rs. 1,600, Sundry creditors Rs. 6,500, Bil ls Payable Rs. 5,000, Outstanding salaries Rs. 1,800, 10% Bank Loan Rs. 10,000. (6) Additions to Plant & Machinery, Investments and Bank Loan were made on 1st J uly 04, 1st August 04 and 1st October 04 respectively. (7) Provide depreciation @10% p.a. on Plant and Machinery and 5% p.a. on Furniture and Fixtures. You are required to prepare : (1) Statement of Profit or Loss for the year ended 31st Ma rch, 2005 and (2) Closing Statement of Affairs as on same date. OMTEX CLASSES 8TH YEAR 14. Sharma and Varma were partners in the Partnership Firm, sharing profits and losses in the ratio of 2:3 respectively. They kept their books under single entr y system. The following information is available form their records. Particulars 1-4-2003 31-3-2004 (Rs.) (Rs.) Cash in hand 17500 28600 Cash at bank 18500 2520 0 Prepaid insurance 6200 8500 Outstanding wages 7800 6700 12% investments 45000 40000 Stock in trade 28000 36000 Sundry debtors 16000 21000 Sundry creditors 170 00 15000 Bills receivable 15000 18000 Goodwill 42000 42000 Patents 32000 32000 B ills payable 12500 9600 Furniture & fixtures 51000 51000 Plant & Machinery 85000 85000 Land & Buildings 120000 120000 Adjustments (1) On the revaluation of asse ts and liabilities it is found that land and building is valued at Rs. 2,00,000 while Machinery & furniture valued at Rs. 78,000 and Rs. 47,000 respectively. (2 ) Bad debts incurred during the year 2003 04 are Rs. 2800 and it is decided to c reate RDD at 5% on debtors. 41 BOOK KEEPING & ACCOUNTANCY

H.S.C (3) Interest on capital is allowed @ 12% p.a. while interest on partners drawing s is charged @ 10% p.a. (4) Additions to investments was made on 1st July 2003 a t the same rate of interest. (5) During the accounting year 2003 04, Sharma and Varma had withdrawn Rs. 28,200 and Rs. 24,000 respectively for their personal us e. (6) Write off Goodwill and Patents @ 10% and 5% respectively. Prepare: (1) Op ening and closing statement of Affairs and (2) Statement of Profit or Loss for t he year ended 31st March, 2004. OMTEX CLASSES 8TH YEAR 42 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR CH. 7. FINAL ACCOUNTS OF NPO [NOT FOR PROFIT ORGANISATION] [Q. 6: 16 MARKS] 1. Dr. Narendra commenced practice in the month of April 2007. He prepared the foll owing Receipts & Payments Account for the year ended 31st March, 2008. Receipts and Payments A/c For the year ended 31st March, 2008 Receipts To Cash To Visits To Sundry Receipts Amount 10000 7000 400 Payments By Furniture By Equipment By Drugs By Salaries By Rent By conveyance By Stationery By Lighting By periodicals By Drawings By Balance c/d Amount 1500 2500 2000 1000 500 700 100 125 100 4375 4500 17400 17400 1. 2. 3. 4. 5. 6. Rs 200 were to be received on account of visits. Unpaid Salaries Rs. 200 60% of conveyance is for private purposes. Value of drugs on hand was estimated at Rs. 1,000. Depreciate furniture and equipment by 10% Prepare Income and Expenditure account and balance sheet. 2. From the following Receipts and payments account of Western Gymkhana for the yea r ended 31st March, 2007 and other information, prepare Income and Expenditure a ccount for the year ended on and a Balance Sheet as at that date. Receipts To Balance B/F T Subscriptions for: 2006 2007 2008 To Donations To Ente rtainment Receipts To Interest To Entrance Fees Amount 1,040 85 4000 103 1200 87 6 81 1000 8385 Payments By salaries By Entertainment Expenses By Electric charge s By General Expenses By Rates and Taxes By Investments By Stationery and Printi ng By Expenses of 2006 By Fixed Deposit By Balance c/f Amount 1300 645 234 350 1 20 3000 241 600 1000 895 8385 The Gymkhana has 450 members paying an annual subscription of Rs. 10/- each. Rs. 20/- is still in arrears towards subscription for the year 2006 carry forward R s. 20/- or rates paid in advance. Provide Rs. 200/- for salaries outstanding. Th e Gymkhana owns Land and Building standing in the books of Rs. 15,000/- and Furn iture standing at Rs. 1,150, on which depreciation at 5% and 15% respectively is to be written off. Interest for 3 months at 12% p.a. is accrued on Investments. The Capital Fund as on 1st April, 2006 was Rs. 16,695/- 50% of the Entrance Fee s is to be capitalised. Donations are capitalised. 43 BOOK KEEPING & ACCOUNTANCY

H.S.C 3. OMTEX CLASSES 8TH YEAR From the following information, prepare Income and Expenditure account for the y ear ended 31st March, 2008 and a Balance Sheet as on that date. Receipts To Cash in hand (1.4.2007) To Subscriptions 2006 07 2007 08 2008 09 To proceeds from Drama To Entrance Fees To Interest on Securities To sale of Old Fu rniture Amount 1750 150 14100 75 2500 800 500 200 20075 Payments By Bank Overdra ft By Salaries By Furniture By Investments in Securities By Printing and Station ery By Cost of Staging drama By Sundry Expenses By Cash at Bank By Cash in Hand Amount 2500 5300 2000 4000 800 1500 1300 2500 175 20075 1. The society has 1500 members, each paying an annual subscription of Rs. 12. 2 . Subscriptions of Rs. 100 pertaining to the year 2006 07 are still in arrears. 3. Value of Stationery at hand on 31st March, 2007 was Rs. 200 and on 31st March , 2008 was Rs. 150. 4. Entrance fees are to be treated as Capital receipts. 5. S alary of Rs. 700 for the current year is unpaid. 6. Balances as on 31st March, 2 007: Investment Rs. 4500, Building Rs. 25000, Furniture Rs. 200. 7. Depreciate b uilding by 2 % and furniture by 5%. 4. From the following information, prepare Income and Expenditure account for the y ear ended 31st March, 2008 and a Balance Sheet as on that date. Receipts To Cash in hand (1.4.2007) To Subscriptions 2006 07 2007 08 2008 09 To proceeds from Drama To Entrance Fees To Interest on Securities To sale of Old Fu rniture Amount 1775 150 14100 75 2500 800 500 200 20100 Payments By Bank Overdra ft By Salaries By Furniture By Investments in Securities By Printing and Station ery By Cost of Staging drama By Sundry Expenses By Cash at Bank By Cash in Hand Amount 2300 5500 2000 4000 1000 1300 1300 2500 200 20100 1. The society has 1800 members, each paying an annual subscription of Rs. 10. 2 . Subscriptions of Rs. 200 pertaining to the year 2006 07 are still in arrears. 3. Value of Stationery at hand on 31st March, 2007 was Rs. 100 and on 31st March , 2008 was Rs. 150. 4. 50% of Entrance Fees are to be treated as Capital receipt s. 5. Salary of Rs. 700 for the current year is unpaid. 6. Balances as on 31st M arch, 2007: Investment Rs. 5000, Building Rs. 25000, Furniture Rs. 200. 7. Depre ciate building by 10 % and furniture by 5%. 44 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR 5. From the following information, prepare Income a nd Expenditure account for the year ended 31st March, 2008 and a Balance Sheet as on that date. Receipts To Cash in hand (1.4.2007) To Subscriptions 2006 07 2007 08 2008 09 To proceeds from Drama To Entrance Fees To Interest on Securities To sale of Old Fu rniture Amount 2000 150 14100 75 2475 600 500 100 20000 Payments By Bank Overdra ft By Salaries By Furniture By Investments in Securities By Printing and Station ery By Cost of Staging drama By Sundry Expenses By Cash at Bank By Cash in Hand Amount 2300 6000 2500 3000 1000 1200 1300 2500 200 20000 1. The society has 2000 members, each paying an annual subscription of Rs. 10. 2 . Subscriptions of Rs. 10 pertaining to the year 2006 07 are still in arrears. 3 . Value of Stationery at hand on 31st March, 2007 was Rs. 500 and on 31st March, 2008 was Rs. 350. 4. 75% of Entrance Fees are to be treated as Capital receipts . 5. Salary of Rs. 700 for the current year is unpaid. 6. Balances as on 31st Ma rch, 2007: Investment Rs. 5000, Building Rs. 25000, Furniture Rs. 200. 7. Deprec iate building by 10 % and furniture by 5%. 6. From the following information, prepare Income and Expenditure account for the y ear ended 31st March, 2008 and a Balance Sheet as on that date. Receipts To Cash in hand (1.4.2007) To Subscriptions 2006 07 2007 08 2008 09 To proceeds from Drama To Entrance Fees To Interest on Securities To sale of Old Fu rniture Amount 2000 150 10100 75 2475 600 500 100 16000 Payments By Bank Overdra ft By Salaries By Furniture By Investments in Securities By Printing and Station ery By Cost of Staging drama By Sundry Expenses By Cash at Bank By Cash in Hand Amount 2300 5000 1500 2000 1000 200 1300 2500 200 16000 1. The society has 1000 members, each paying an annual subscription of Rs. 12. 2 . Subscriptions of Rs. 10 pertaining to the year 2006 07 are still in arrears. 3 . Value of Stationery at hand on 31st March, 2007 was Rs. 500 and on 31st March, 2008 was Rs. 350. 4. 90% of Entrance Fees are to be treated as Capital receipts . 5. Salary of Rs. 4700 for the current year is unpaid. 6. Balances as on 31st M arch, 2007: Investment Rs. 15000, Building Rs. 50000, Furniture Rs. 500. 7. Depr eciate building by 7 % and furniture by 10%. 45 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR 7. From the following information, prepare Income a nd Expenditure account for the year ended 31st March, 2008 and a Balance Sheet as on that date. Receipts To Cash in hand (1.4.2007) To Subscriptions 2006 07 2007 08 2008 09 To proceeds from Drama To Entrance Fees To Interest on Securities To sale of Old Fu rniture Amount 2000 150 4100 75 2475 600 500 100 10000 Payments By Bank Overdraf t By Salaries By Furniture By Investments in Securities By Printing and Statione ry By Cost of Staging drama By Sundry Expenses By Cash at Bank By Cash in Hand A mount 2300 1000 2500 1000 1000 1200 300 500 200 10000 1. The society has 300 members, each paying an annual subscription of Rs. 15. 2. Subscriptions of Rs. 100 pertaining to the year 2006 07 are still in arrears. 3 . Value of Stationery at hand on 31st March, 2007 was Rs. 500 and on 31st March, 2008 was Rs. 350. 4. 75% of Entrance Fees are to be treated as Capital receipts . 5. Salary of Rs. 800 for the current year is unpaid. 6. Balances as on 31st Ma rch, 2007: Investment Rs. 15000, Building Rs. 125000, Furniture Rs. 600. 7. Depr eciate building by 10 % and furniture by 5%. 8. From the following information, prepare Income and Expenditure account for th e year ended 31st March, 2008 and a Balance Sheet as on that date. Receipts To Cash in hand (1.4.2007) To Subscriptions 2006 07 2007 08 2008 09 To proceeds from Drama To Entrance Fees To Interest on Securities To sale of Old Fu rniture Amount 2000 50 4195 100 2300 680 570 105 10000 Payments By Bank Overdraf t By Salaries By Furniture By Investments in Securities By Printing and Statione ry By Cost of Staging drama By Sundry Expenses By Cash at Bank By Cash in Hand A mount 2300 1000 2500 1000 1000 1200 300 500 200 10000 1. The society has 290 members, each paying an annual subscription of Rs. 15.5. 2. Subscriptions of Rs. 100 pertaining to the year 2006 07 are still in arrears. 3. Value of Stationery at hand on 31st March, 2007 was Rs. 500 and on 31st Marc h, 2008 was Rs. 350. 4. 80% of Entrance Fees are to be treated as Capital receip ts. 5. Salary of Rs. 80 for the current year is unpaid. 6. Balances as on 31st M arch, 2007: Investment Rs. 15000, Building Rs. 125000, Furniture Rs. 600. 7. Dep reciate building by 10 % and furniture by 5%. 46 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR 9. From the following balance Sheet and Receipts an d Payments account of Nanavati Hospital, Bombay, prepare Income and Expenditure account for the year ending on 31 st March, 2007 and the Balance sheet as on that date. Balance Sheet as on 1st April, 2006 Liabilities Salaries Unpaid Medicines Bill Unpaid Capital Fund Amount 2000 1500 383000 Assets Cash Securities Furniture Land and Buildings Equipments Subscripti on Due Interest Accrued Amount 11000 150000 4000 200000 15000 5000 1500 386500 386500 Receipts and Payment Account Receipts Cash To subscription Interest (Rs. 1500/- last year) Donations(Revenue) Life Membership Fee Amount 11000 30000 5000 4300 10000 60300 Payments Furniture purchased on 1-4-2006 Salaries including Rs. 2000/- of last year. Equipment pur chased on 1-4-06 Dispensary expenses Medicines Taxes Cash Amount 1900 2300 7500 4700 5500 500 17200 60300 Adjustments. 1. Capitalise the amount of life membership fees. 2. Interest earne d but not received Rs. 1,000/3. Subscription include Rs.1000/- for 2008 and outs tanding subscription for 31st march, 2007 is 4,200 4. Unpaid salary for the year 2007 is Rs. 2500/5. Provide for depreciation on furniture 10%, Land and Buildin g 5%, Equipments 20%. 6. Prepaid taxes Rs. 100/10. The Balance Sheet as at 1st April, 2006 and the Receipts and Payments accoun t for the year ended 31st March, 2007 of the Young Sports Club, Dadar are as under. Young Sports Club Balance Sheet as on 1st April, 2006 Liabilities Capital Fund Outstanding Expenses: Salaries 400 Printing Income and Expenditure A/c Amount 30000 300 700 23300 54000 Assets Building Furniture Entra nce Fee receivable Subscriptions Fee receivable Sports Material & Equipments Cas h in Hand Cash at Bank Amount 9500 5000 200 800 28000 4200 6300 54000 Young Sports Club, Dadar, Receipts and Payments A/c for the year ending 31st Mar ch, 2007 Receipts To Opening Balance Cash in Hand Amount 4200 6300 10500 Payments By Cric ket Tournament Expenditure By Printing & Stationery Amount 16460 47 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 18000 4000 14520 300 8TH YEAR 860 1600 500 470 300 400 15000 11730 47320 To Subscriptions To Receipts from Cricket Tournament To Interest on Bank A/c By Salaries & Honorarium By Repairs to Building By Newspapers and Periodicals By Advertising Expenses By Insurance By Investments By Closing Balance Cash in Han d 5280 Cash in Bank 6450 47320 You are also given the following additional information. 1. Subscriptions of the amount of Rs. 800 were receivable as on 31st March, 2007 2. Subscriptions Rs. 2 00 and Entrance Fees Rs. 300 were received in advance. 3. Outstanding Expenses w ere: Salaries and Honorarium Rs. 100; Insurance Rs. 50; Cricket Tournament Expen ses Rs. 250. You are required to prepare Income & Expenditure account for the ye ar ending 31 st March, 2007 and a Balance Sheet as on that date. 11. The following is the Receipts and payments Account of Modern Sports Club, Sa tara, for the year ended on 31st March, 2007. Receipts To Balance b/d To Subscription To Entrance Fees To Interest on Investme nts To Proceeds from Matches To Life member fees Receipts and Payments Account for the year ended on 31st March, 2007. Amount 1490 13600 520 840 5180 5000 26630 Payments By Upkeep of Garden By wages By Salary By Ground rent By Printing By Postage By Bank balance By Balance c/d A mount 9500 2360 7000 210 930 190 5000 1440 26630 Adjustments: 1. Ledge balances of the club as on 31.3.2006 were Capital fund Rs. 66,430, Club house and ground Rs. 40,000, Investments Rs. 18,640, furniture Rs. 6,400, Outstanding subscription Rs. 600. 2. Printing includes Rs. 200, Upkeep o f garden includes Rs. 500 and Subscription includes Rs. 400 for the previous yea r. 3. Entrance fees are to be capitalized. 4. The Rotary club of Satara owed Rs. 210 for the use of club hall. 5. Provide 10% depreciation on furniture. 6. Subs criptions outstanding for the current year were Rs. 1,000. Prepare _ Income and Expenditure account for the year ended 31st March, 2007 and Balance Sheet as on that date. 48 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR 12. Dr. Subhash Raje started practice as a medical practitioner on 1st April, 2007. He gives you the Receipts & Payments Accounts for the year 2007 08 and the adjustments to be made. Prepare his Income and Expenditure Account and Balance sheet for 2007 -08. Receipts and payments account for the year ended 31st March, 2008. Receipts To Cash Introduced To Visits To Receipts From Dispensary To Sundry Rece ipts Amount 107500 84000 64000 12000 Payments By Furniture By Equipment By Drugs By Salary By Rent By Conveyances By Stationery By Lighting By Journals By Drawi ngs By Balance c/f Amount 50000 40000 35000 24000 6000 18000 5600 10000 1200 377 00 40000 267500 267500 1. 2. 3. 4. 5. 6. Adjustments: Receipts in arrears are: Visits Rs. 11,500 and Dispensary Rs. 9,000 . The outstanding salaries are Rs. 1,800 and the outstanding expenses on drugs a re also Rs. 3,000. 40% of the amount spent on conveyance was for domestic use. S tock of drugs in hand at the close of the year was worth Rs. 4,200. Depreciate f urniture at 5% p.a. and equipments at 10% p.a. Furniture and equipment purchased on 1st April 2007. 13. The following is the Receipts and Payments A/c of the Saraswati Vidya Mandir , Latur. Receipts and Payments Account for 2007 08. Amount 32,000 68,000 46,000 90,000 1,00.000 62,000 24,000 30,000 452000 Receipts To Cash Balance b/f To Admission Fees To Tuition Fees To Donations To Govt. Gra nt To Life Members Fees To Term Fees To Examination Fees Payments By Furniture (3 1-12-2007) By Salaries By Office Expenses By Sports Material By Printing & Stati onery By Fixed Deposit(@10% on 1.10.2007) By Cash Balance c/f Amount 80000 12400 0 42000 18000 17000 100000 41000 452000 Additional Information: 1. The assets of the society on 1st April, 2007 were: Bu ilding Rs. 50,000 Furniture Rs. 47,000 Library Rs. 40,000 Laboratory Rs. 48,000 2. The tuition fees receivable from students for 2007 08 is Rs. 12,000. 3. Furni ture and Building are to be depreciated at 10% p.a. each. 4. The 50% of donation s and entire amount of Life Members Fees are to be capitalized. 5. Sports materia l is valued at Rs. 42,000 on 31-03-08. 6. The capital fund on 1st April, 2007 wa s Rs. 2,17,000. Prepare Income and Expenditure Account for the year ended 31st M arch, 2004 and a Balance sheet as on that date. 49 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR 14. From the following Receipts and Payments Accoun t of Ajanta Club, Ratnagiri and additional information, prepare an Income and Expenditure Account for the year e nded 31st March, 2008 and Balance Sheet as on that date. Receipts and Payments A /c for the year ended 31st March, 08 Amount 30000 84000 26000 36000 12000 12100 40300 11600 252000 Payments By Balanc e b/d Bank By Stationery A/c By Furniture A/c By Investments A/c By Salaries A/c By Expenses of entertainment programme By Balance c/d Cash Balance Bank Balance Amount 25000 11500 40000 60000 45000 50000 8500 12000 252000 Receipts To Balance b/d Cash To Receipts from entertainment programme To Entranc e Fees To Interest on Investments To Charity To Subscriptions 2006 07 2007 08 20 08 09 Additional Information. 1. Capitalize 50% of the entrance fees. 2. Outstanding s alary is Rs. 8,700 while outstanding interest on investment is Rs. 1500. 3. Ther e are 500 members of the club, each of them is paying an annual subscription of Rs. 100. 4. Opening stock of stationery was Rs. 1,800 and closing stock of stati onery is Rs. 1900. 5. The assets of the Ajanta club on 1st April 2007 were Build ing: Rs. 1,50,000. Furniture Rs. 50,000 and Equipment Rs. 30,000. The capital Fu nd as on 1st April 2007 was Rs. 2,48,900. New Furniture was purchased on 1st Oct ober, 2007. 6. Provide depreciation on Building and Furniture @10% and 5% respec tively. Equipment valued at Rs. 26,000 at the end of the accounting year 2007 08 . Note: In the absence of any information to the contrary, entrance fees should be treated as revenue receipt. If any specific instruction is given in the probl em, entrance fes should be treaed accordingly. 15. Girgaon Library showed the following position on 1st April, 2007. Balance Sheet as on 1st April, 2007 Amount Rs. 267650 2350 Assets Furniture Books Investments Cash at Bank Liabiliti es Capital Fund Outstanding Liability for Expenses Amount Rs. 82500 120000 45000 22500 270000 270000 Receipts and Payments Account for the year ended Receipts To Opening Balance To Entrance Fes To subscriptions To Sale Proceeds of old papers To Hire of Lecture Hall To interest on investments Amount 22500 4150 0 50000 1275 21000 3400 31st March, 2008 Amount 2360 1250 6250 33000 2350 14400 42000 23300 Payments By Electric Charges By Postage & Stationery By Telephone Charges By Pur chase of Books By Expenses of 2006 07 By Rent By Investments By Salaries 50 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES By closing Balance 8TH YEAR 14765 139675 139675 You are asked to prepare an Income and Expenditure A/c of the Library for the ye ar ended 31 st March, 2008 and a Balance Sheet as on that date after making the following adjustments. 1. Subscriptions include Rs. 12500 received in advance an d subscriptions of Rs. 27500 in respect of current year are still receivable. 2. Outstanding Liabilities on 31st March, 2008 were Rent Rs. 4,000 and Salaries Rs . 3,000. 3. Books, excluding any additions during the year, are to be depreciate d at 10% p.a. 4. 50% of the Entrance Fees are to be capitalized. 16. From the following Balance Sheet and Receipts and Payments Account of Ashwin i Hospital, Mumbai, prepare an Income and Expenditure Account for 2007 08 and a Ba lance Sheet as on 31-03-2008. Balance Sheet as on 1-04-2007 Liabilities Salaries unpaid Medicines bill unpaid Capital fund Amount 12000 1150 0 446000 Assets Cash Securities Furniture Land and buildings Equipment Subscript ions due Interest accrued Amount 41000 150000 24000 200000 45000 5000 4500 46950 0 469500 Receipts and payments A/c for the year ended 31st March, 08 Receipts To Cash Balance b/f To Subscriptions To interest (including Rs. 4500 of last year) To Donations (Revenue) To Life Membership Fees Amount 41000 60000 15 000 14300 40000 Payments By Furniture (Purchased on 1-4-07) By Salaries (Includi ng Rs. 12000 of last year) By Equipment (purchased on 1-4-07) By Dispensary Expe nses By Medicines By Taxes By Cash Balance c/f Amount 11900 48000 7500 24700 455 00 4500 28200 170300 170300 Adjustments: Capitalize the entire amount of life membership fees. Interest earn ed but not received is Rs. 2,000. Subscriptions for 2007 08 are Rs. 4,200. Unpai d salary for the year 2007 08 is Rs. 12,500. Provide for depreciation on furnitu re at 10%, on land and buildings at 5% and on equipment at20%. Prepaid taxes are Rs. 400. 51 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR 17. The following is the Receipts and Payments Acco unt of the Shree Sports Club, Ahmednagar. Receipts and payments account for the year ended 31st March, 2008. Receipts To balance b/d Cash To subscriptions To interest on investments To Rent To Badminton Fees To Tournament Fees To Admission Fees To Donations. Amount 700 0 20000 3000 6000 12000 19000 22000 45000 134000 Payments By Salaries By Badmint on court (1.4.07) By Insurance By Furniture (1.4.07) By Sundry Expenses By Tourn ament Expenses By Printing Charges By Newspapers & Magazines By 12% Investments By Balance c/d Cash Amount 8500 22000 3000 17000 6000 8000 1500 600 50000 17400 134000 On 31st March, 2007, the club owned a building worth Rs. 1,50,000. The capital f und on the same date was Rs. 1,57,000. Prepare and Income and Expenditure accoun t for the year ended 31st March, 2008 and a Balance sheet as on that date after considering the following additional information. 1. Subscriptions received for 2008-09 Rs. 1500; subscriptions still due for 2007 08: Rs 4,000. 2. Outstanding salaries on 31st March, 2008: Rs. 3000 and Insurance premium is paid for one yea r ending 30th June, 2008. 3. Depreciation on building, badminton court and furni ture @10%, p.a. each. 4. Capitalize 70% of the admission fees. 5. Donations are received for endowment fund. 6. Investments purchased on 1st July 2007. 18. From the following Receipts and payments Account of South Indian Cultural So ciety, Matunga, Mumbai, prepare Income and Expenditure Account for the year ended 31st March 2008 and a Balance Sheet as on that date: Receipts To Opening Cash in Hand To Subscriptions 2006 07 2007 08 2008 - 09 To P roceeds from Dramas To Entrance Fees To Interest on Securities To Miscellaneous Income Amount 7420 7300 185500 5000 70000 30000 4200 7500 3,16,920 Payments By O pening Bank Overdraft By Investments in Securities By Purchase of Furniture By S alaries By Printing & Stationery By Cost of Staging Dramas By Sundry Expenses By Closing Balances Cash in hand Amount 92700 53000 41450 36200 1890 21710 14420 5 5550 3,16,920 Additional Information: 1. The society has 1000 members each paying an annual su bscription of Rs. 200. Subscriptions of Rs. 9,000 are still in arrears in respec t of 2006 07. Capital fund as on 1st April, 2007 was 1,22,950. 2. Stock of stati onery amounted to Rs. 1,125 on 31-3-2007 and Rs. 2,087 on 31-3-2008. 3. Half the entrance fees are to be capitalized. 4. Salary for the year 2007 08 Rs. 1550 is outstanding. 5. Outstanding Sundry Expenses on 31-3-2007 had amounted to Rs. 13 20. 6. Sundry expenses paid in 2006-07 included telephone charges Rs. 1125 relat ing to 2007-08. 7. On 31-3-2007, the society owned premises worth Rs. 124500. Bi lliard Table worth Rs. 40,000 and investments worth Rs. 26,500. 52 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR 8. Both the premises and the Billiards Table at the end of the year are to be de preciated at 10% on the opening balances. 19. From the following Balance sheet and Receipts and Payments Account of Padmavati High School, Thane, prepare Income and Expenditure account for the year ended 31 -03-2007 and balance sheet as on that date. Balance sheet as on 31st March, 2006 Liabilities Entrance fees Capital fund Amount (Rs.) 30000 519000 Assets Furnitur e Computer laboratory Library Investment Cash in hand Cash at bank Outstanding T uition Fees Amount (Rs.) 84000 100000 125000 200000 5000 15000 2000 549000 549000 Receipts and Payment Account for the year ended 31st March, 2007 Receipts To balance b/d Cash in hand Cash at bank To Tuition Fees To Term Fees T o Government Grant (salary) To Sundry receipts To sale of old newspapers To inte rest on investments To Donation of library Amount (Rs.) 5000 15000 400000 120000 104500 11000 500 10000 150000 816000 Payments By Furniture purchased By Salarie s By rent By Sundry expenses By Stationery By Annual gathering expenses By repai rs of buildings By Insurance By Balance c/d Cash in Hand Cash at Bank Amount (Rs .) 52000 300000 140000 27000 49000 24000 32500 2000 44500 127000 816000 Adjustments: 1. Tuition fees receivable Rs. 150000 2. Salary still payable Rs. 1 50000 3. Rent paid in advance Rs. 20000 4. Insurance premium is paid for one yea r ending 30-9-07 5. Depreciate furniture and library at 10% and computer laborat ory at 20%. Depreciation is to be charged on the closing balance of assets. 20. Following is the Balance sheet and receipts and payments account of the Memorial Hospital, Sawantwadi. Prepare Income and expenditure account for the year ended on 31.3.2010 and the balance sheet as on that date. Balance sheet as on 1.4.200 9 Liabilities Capital fund Outstanding Salaries Medical bill Amount (Rs.) 10,04,00 0 22000 6000 Assets Cash in hand Cash at bank Land and building Furniture Amount (Rs.) 6000 34000 800000 70000 53 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES Equipments Outstanding subscribtion 1032000 8TH YEAR 120000 2000 1032000 Receipt and payments account For the year ending 31.3.2010 Receipts To balance b/d Cash in hand Cash at bank To subscription (includes Rs. 2000 received for previous year) To Sale of furniture (Book value Rs. 30000) To Donations (revenue) To Life membership fees Amount (Rs.) 6000 34000 130000 20000 44000 25000 259000 Payments By Salaries (including of the previous year) By med icines By equipments purchased By taxes By general expenses By balance c/d Cash in hand Cash at bank Amount (Rs.) 110000 52000 20000 3000 8600 15400 50000 25900 0 1. 2. 3. 4. 5. 6. Consider the following adjustments. Outstanding subscription Rs. 12000. Capitali se the amount of membership fees. Prepaid taxes Rs. 500. Outstanding Salary Rs. 12000. Write off depreciation Rs. 20000 from Land and Building and Rs. 30000 fro m equipments. Outstanding medicine bill as on 1.4.09 is still due. 54 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR CH. 8. FINAL ACCOUNTS OF PARTNERSHIP FIRM [Q. 7: 20 MARKS] 7. From the following Trial Balance of M/s Sonia and Sufi, you are required to p repare Trading Profit and Loss Account for the year ended 31st December, 2004 an d the Balance sheet as on that date. Trial Balance as on 31.12.2004 Particulars Sonias Capital Sufis capital Sonias Drawing Sufis Drawing Stock on 1 1 004 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 Debit (Rs.) 14, 450 10, 000 2, 00, 000 25, 000 2, 75, 000 5, 000 1, 00, 000 25, 000 25, 000 1, 25, 000 1, 40, 000 77, 550 19, 000 17, 500 7, 500 3, 000 2, 000 3, 500 9, 34, 500 9, 34, 500 Credit (Rs.) 1, 80, 000 1, 50, 000 4, 00, 000 60, 000 4, 500 Adjustments: 1. Stock as on 31st December, 1978 Rs. 1, 30,000 and its market val ue were Rs. 1, 40,000. 2. Write off Rs. 1000 for bad & Provide for Bad and Doubt ful debts at 5% on Sundry Debtors. 3. Goods worth Rs. 1000 were distributed as f ree samples. 4. Prepaid Insurance Rs. 750. 5. Depreciate Plant and Machinery by 10% p.a. and Patent by 15% p.a. 6. Outstanding expenses Salaries Rs. 2,500 Wages Rs. 1,000 Printing and Stationery Rs. 500. 7. Uninsured goods worth Rs 1200 wer e lost by fire. 55 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR 2. Misha and Latha are partners sharing profits and losses in the ratio of 2 : 1 . From the following Trial Balance prepare Trading and Profit and loss account f or the year ending 31st December, 2004. Trial Balance as on 31.12.2004 Particulars Stock (1st January) Sundry Debtors Bills payable Purchases Wages Ret urns Outward Salaries Office Expenses Insurance Plant & Machinery Sundry Credito rs Rent Sales Reserve for Doubtful Debts Travelling Expenses Returns Inward Land and Building Bills Receivable Bank Mishas capital Lathas capital Debit (Rs.) 10, 000 28, 000 40, 000 8, 500 2, 700 2, 446 1, 300 30, 000 1, 800 60, 000 400 1, 40 0 3, 500 44, 800 3, 400 6, 655 1, 84, 501 Credit (Rs.) 10, 101 2, 500 21, 500 60, 000 30, 000 1, 84, 501 Adjustments: 1. Closing stock was valued at Rs. 26,500. 2. Provide 10% Depreciat ion on Plant and Machinery. 3. Goods worth Rs. 1000 were distributed as free sam ples. 4. Prepaid Insurance Rs. 300. 5. Maintain Reserve for Doubtful debts at 1% of Sundry debtors. 6. Outstanding rent for the current year Rs. 200. 7. Goods w orth Rs. 100 were taken over by Latha for her personal use, but no entry is made in the books. 56 BOOK KEEPING & ACCOUNTANCY

H.S.C 3. Surya and Abhijeet are in a Partnership firm. The trial Balance of the firm o n 31 st December, 2004 was as follows. Trial Balance as on 31st December, 2004 Particulars Capitals: Surya Abhijeet Drawings: Surya Abhijeet Buildings Plant an d Machinery Cash at bank Purchases and Sales Returns Carriage Opening stock Wage s Debtors & Creditors Salaries Rent and Insurances Postage and Telegrams Bad Deb ts Discounts Reserve for Bad Debts Outstanding Salaries Trade Expenses Debit (Rs .) Credit (Rs.) 15, 000 10, 000 500 200 20, 000 6, 000 600 47, 500 1, 500 350 11 , 000 6, 000 17, 600 2, 500 400 200 250 100 300 1, 15, 000 OMTEX CLASSES 8TH YEAR 75, 500 1, 000 12, 600 50 750 100 1, 15, 000 Adjustments: 1. Partners share Profits and Losses in the ratio of their capitals . 2. Write off Rs. 450 for Bad debts & Reserve for Bad and Doubtful Debts is to be maintained at 5% on the Debtors. 3. Depreciate Building @ 5% and Machinery @ 10% p.a. 4. Goods worth Rs. 1, 000 were destroyed by fire and the insurance comp any admitted a claim for Rs. 800. 5. Stock as on 31st December, 2004 was valued at Rs. 8, 000. 6. Goods worth Rs. 1000 were distributed as free samples. 7. Wage s outstanding Rs. 1000. Prepare Trading and Profit & Loss account for the year e nded 31st December, 2004 and a Balance sheet as on that date. 57 BOOK KEEPING & ACCOUNTANCY

H.S.C 4. Agarkar and Dravid are in partnership sharing profit and losses in the ratio of 2: 1 from the following information of Trial balance and adjustments you are required to prepare profit and loss account, trading account and Balance sheet a s on 31st march 2003. Trial Balance as on 31st December, 2003 Particulars Prepaid Insurance Insurance R.B.D.D Discount Postage and Telephones Salaries Debtors Creditors Wages Opening Stock Carriage Return Inward Return Out ward Purchase and sales Bank Overdraft Plant and Machinery Land and Building Dra wings:Agarkar Dravid Capitals:Agarkar Dravid Debit (Rs.) 400 1, 000 400 1, 600 2 8, 000 33, 000 12, 000 24, 000 500 2,800 96, 600 12, 000 88, 000 4,000 2,000 30, 000 26, 000 3, 06, 300 4, 600 1, 50, 800 60, 400 Credit (Rs.) 500 OMTEX CLASSES 8TH YEAR 34, 000 3, 06, 300 Adjustments: 1. Write off Rs. 1,000 for bad debts and provide for R.B.D.D @ 5% o n debtors. 2. Goods worth Rs. 2,000 were distributed as free samples. 3. Closing Stock 31 12- 2003 was valued at cost Rs. 28, 000 while its market value is Rs. 30,000/-. 4. Salaries were outstanding Rs. 1,000. 5. Depreciate Land and Buildin g @ 5% p.a. and Plant and Machinery @ 10% p.a. 6. Goods worth Rs. 3,000 were des troyed by fire, but insurance company admitted the claim for Rs. 400 only. 7. Dr avid had taken goods worth Rs. 1000 for his own use, but no entry is made in the books. 58 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR 5. From the following Trial Balance and adjustments you are required to prepare the Trading account, Profit and loss account and Balance sheet as on 31st Decemb er, 2004. Trial Balance as on 31st December, 2004 Particulars Aishwaryas Capital Revathis Capital Aishwaryas Drawing Revathis 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 Cre ditors Cash at Bank Wages Salaries Rent and Taxes Insurance Printing and Station ery Power and Fuel Debit (Rs.) 14, 000 10, 000 2, 00, 000 15, 000 2, 85, 000 3, 90, 000 70, 000 15, 000 1, 00, 000 25, 500 15, 000 1, 25, 000 78,00 0 19, 000 17 , 500 7, 000 3, 000 2, 000 3, 800 9, 34, 800 4, 000 Credit (Rs.) 2, 00, 000 1, 3 0, 000 1, 40, 800 9, 34, 800 Adjustments 1. Stock on 31st December, 2004 is valued at Rs. 50,000 but is marke t value is Rs. 45,000. 2. Depreciate plant and machinery @ 5% p.a. Patents by 10 %. 3. Write off Rs. 1,000 for bad debts and provide for R.B.D.D @ 5% on debtors. 4. Insurance were prepaid for Rs. 200. 5. Salaries outstanding amounted to Rs. 800. 6. Goods worth Rs. 5000 were destroyed by fire. 7. Goods worth Rs. 400 were distributed as free samples. 59 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR 6. From the following Trial Balance and Adjustments of Kumbhar and Maroti you ar e required to prepare Trading and Profit and Loss Account for the year ended on 31st March, 2005 and Balance Sheet as on that date. Trial Balance as on 31st Mar ch, 2005 Debit Balance Stock (1.4.2004) Salary and Wages Cash Purchases Sundry expenses W ages Bills Receivable Travelling Expenses Bad Debts Factory Expenses Commission Investments Debtors Tools and Equipments Furniture Goodwill Building Rs. 35000 4 200 10000 225200 13600 12000 6000 2000 3000 8000 4000 20000 40000 6000 12000 210 00 50000 472000 Credit Balance Sales Discount Creditors Bank Overdraft Interest on Investment Capitals: Kumbhar Maroti Rs. 330000 4000 20000 10000 8000 60000 40 000 472000 Adjustments 1. Partners share Profits and Losses in the ratio of their capitals. 2. Closing stock is valued at Cost Price Rs. 40,000 and at Market Price Rs. 45, 000. 3. Kumbhar has withdrawn goods worth Rs. 1,200 for his own use, but no entr y is made in the books. 4. Uninsured goods worth Rs. 12,000 were lost by fire. 5 . Rs. 450 is to be written off as bad debts. 6. Unpaid expenses: Salary and Wage s Rs. 800 Rent Rs. 1,200 7. Depreciate building @ 7 % p.a. 60 BOOK KEEPING & ACCOUNTANCY

H.S.C 7. From the following information you are required to prepare the Trading accoun t, profit and loss account and Balance sheet as on 31st March, 2005. Trial Balan ce as on 31st March, 2005 Particulars Sachins Capital Gangulys capital Sachins Drawing Gangulys 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 Po wer and Fuel Debit (Rs.) 4, 000 1, 000 2, 20, 000 5, 000 2, 95, 000 5, 000 1, 00 , 000 24, 000 25, 000 1, 25, 000 77, 550 19, 000 17, 500 7, 950 3, 000 2, 000 3, 500 2, 40, 000 Credit (Rs.) 1, 00, 000 2, 30, 000 OMTEX CLASSES 8TH YEAR 2, 00, 000 1, 60, 000 4, 500 9, 34, 500 9, 34, 500 Adjustment 1. Stock on 31st March, 2004 is valued at Rs. 30,000 but is market va lue is Rs. 35,000. 2. Depreciate plant and machinery @ 5% p.a. Patents by 20%. 3 . Insurance were prepaid for Rs. 200. 4. Salaries outstanding amounted to Rs. 80 0. 5. Maintain Reserve for Doubtful debts at 10% of Sundry debtors. 6. Goods wor th Rs. 5000 were destroyed by fire and the insurance company admitted a claim fo r Rs. 3000 only. 7. Sachin has withdrawn goods worth Rs. 500 for his own use, bu t no entry is passed in the books. 61 BOOK KEEPING & ACCOUNTANCY

H.S.C 8. Abhijit, Pawan and Vikram are partners. The following balanced were extracted from the books of a partnership firm as on 31st March, 1999. Trial Balance As O n 31st March, 1999 Debit Balance Purchases Debtors Stock (1st April, 1998) Wages Salaries Furniture Building Insurance Loan at 5% to Vijay (1st Dec. 98) Rent and Taxes Investment Cash in Hand Bills Receivable Current Account : Abhijit Rs. 165000 6000 25000 20 000 8000 8000 45200 3500 4000 2000 10000 8820 10000 2000 371520 371520 Credit Ba lance Capital Accounts: Abhijit Vikram Pawan Current Accounts: Vikram Pawan Sale s Reserved for Doubtful Debts Interest on Investment Creditors Bills Payable Ret urn Outwards 2000 3000 250000 7800 720 25000 14000 3000 24000 12000 30000 Rs. OMTEX CLASSES 8TH YEAR Adjustment 1. Closing stock Rs. 13,000. 2. Partners are allowed a salary at Rs. 3000 p.a. 3. Rs. 1200 paid during the year as building repairs wrongly debited t o building account. 4. Depreciate furniture at 12% p.a. and Building at 10% p.a. 5. Rs. 1000 due from customer is not recoverable and create R.D.D. at 5% on deb tors. 6. Goods of Rs. 12,000 were destroyed by fire. The insurance company admit ted a claim for Rs. 7,410. 7. Prepare Final Accounts for the year ending 31st Ma rch, 1999. 62 BOOK KEEPING & ACCOUNTANCY

H.S.C 9. Mr. Kale and Mr. Gore were partners sharing profits and losses equally. The T rial Balance of their firm was as under: Prepare Trading and Profit and Loss Acc ount for the year ended on 31st March, 2004 and Balance Sheet as on that date: T rial Balance as on 31st March, 2004. Debit Balance Opening Stock Wages Purchases Investments Postage Printing & Stati onery Carriage Outwards Insurance Debtors Furniture Bad Debts Carriage Inwards C ash in Hand Machinery (Purchased on 1.7.03) Salaries (For 10 months) Sundry Expe nses Bills receivable Rs. 30000 9500 52500 10000 1000 2500 1300 3200 35000 5500 1200 1800 5400 32000 15000 2100 8500 216500 Credit Balance Capitals: Mr. Kale Mr . Gore Current Accounts: Mr. Kale Mr. Gore Bills Payable 10% Bank Loan(Taken on 1.10.2003) Bank Overdraft Creditors Sales R.D.D. Returns Outward Rs. 30000 60000 2100 1400 7500 10000 6500 25000 70500 3000 500 OMTEX CLASSES 8TH YEAR 216500 Adjustment 1. Closing stock was valued at Rs. 61,500. 2. Printing and Stationery included Rs. 500 paid for purchase of postal stamps. 3. Depreciate Furniture an d Machinery at 10% p.a. 4. 5% interest is to be allowed on capital. 5. Of the de btors Rs. 500 were bad and should be written off, and R.D.D. should be maintaine d at 5%. 6. Goods of Rs. 7,500 were purchased on 30th March, 2004 and included i n the closing stock but those purchases were not recorded in the books of accoun ts. 7. Bills receivable include a dishonoured bill of Rs. 500. 63 BOOK KEEPING & ACCOUNTANCY

H.S.C 10. Following is the Trial Balance of Kalavati and Lilavati as on 31st March, 20 05 who share Profits and Loses to the ratio of 3:2. Interest on capital was allo wed at 5% p.a. Trial Balance as on 31st March, 2005 Debit Balance Opening Stock Sundry Debtors Purchases Wages Salaries Office expen ses Discount Rent, Rates & Taxes Plant & Machinery Return Inward Land & Building Cash at Bank Current A/c : Kalavati Lilavati Rs. 10000 14100 20000 4250 1350 12 23 650 900 15000 1750 20000 7327 2100 600 99250 Credit Balance Return Outward Su ndry Creditors Sales R.B.D.D. A/c. Capital A/c. Kalavati Lilavati Loan at 9% (Ta ken on 1.10.2004) Rs. 1250 15800 35000 200 35000 10000 2000 OMTEX CLASSES 8TH YEAR 99250 Additional Information 1. Closing stock was valued at Rs. 20,500. 2. Unpaid wage s Rs. 750. 3. Outstanding salary Rs. 657. 4. Provide depreciation on Plant & Mac hinery at 10% p.a. and on land & building at 5% p.a. 5. Write of Rs. 100 as bad debts and provide R.B.D.D. at 5% on debtors. 6. Rent, Rates and Taxes prepaid Rs . 100. 7. Prepare Trading A/c and Profit & Loss A/c for the year ending 31st Mar ch, 2005 and a balance sheet as on that date. 64 BOOK KEEPING & ACCOUNTANCY

H.S.C 11. Given below is the Trial Balance of M/s Radha and Krishna on 31st March, 200 4. Partners share profit & losses in the ratio of 3:2 respectively. From the fol lowing trial balance and additional information, prepare a Trading & Profit & Lo ss account for the year ended 31st March, 2004 and a Balance sheet as on that da te. Trial Balance as on 31st March, 2004. Particulars(Debit) Partner s Current A/c Radha Partner s Drawings Radha Krishna Purchases Returns Debtors Furniture Premises Bad debts Discount Provident Fund C ontribution Provident Fund Investment Salaries & Wages Opening Stock Cash in han d Royalties 15000 10000 120000 2500 65000 50000 160000 7500 5000 15000 60000 150 03 80000 18000 4000 643003 643003 16000 Amount Particulars(Credit) Partners Capi tal Account Radha Krishna Partners Current Account Krishna Sales Returns Credito rs RDD Provident fund Interest on P.F. Investment Outstanding Salaries & Wages G eneral Reserve 10000 365000 3500 10000 2000 65000 6000 6500 45003 80000 50000 Am ount OMTEX CLASSES 8TH YEAR Adjustments: 1. The closing stock was valued at marked price Rs. 90,000 which is 20% above co st. 2. Write off bad debts Rs. 1500 and make a provision for doubtful debts @5% on debtors. 3. Provide 2% Reserve for discount on debtors and creditors. 4. Depr eciate Furniture @ 15% and Premises @ 20%. 5. Interest on capital is allowed @ 1 0% p.a. and interest on drawings be charged @ 15% p.a. 6. Radha is entitled to r eceive rent for her premises at Rs. 300 p.m. where business is carried out and K rishna is to be given 5% commission on Gross Profit. 65 BOOK KEEPING & ACCOUNTANCY

H.S.C 12. X, Y & Z are partners in a firm of following terms. a. Y and Z to get salari es of Rs. 10,000 and Rs. 5,000 respectively for the year. b. Interest on Capital and on drawings is to be calculated at 10% p.a. c. They share profits and losse s as X 50%, Y 30%, Z 20%. The Trial Balance of the firm as on 31st March 1996 was as follows. Debit Balance Furniture Premises Plant & Machinery Purchases Opening Stock Works Managers Salary Office Expenses Rent & Insurance Legal Fees Debtors Balance at b ank Drawings: X Y Z Rs. 22,000 60,000 70,000 2,80,000 42,000 64,000 45,200 10,50 0 3,500 20,600 43,700 17,000 11,000 9,000 6,98,500 Credit Balance Capital A/c X Y Z Current A/c X Y Z Sales Creditors Rs. 80,000 50,000 30,000 6,000 12,000 18,0 00 4,65,000 37,500 OMTEX CLASSES 8TH YEAR 6,98,500 Your are informed that: 1. 2. 3. 4. 5. 6. 7. Stock on 31st march, 1996 is valued at Rs. 36,000 Outstanding expenses are Works Managers salary Rs. 6,000, Rent Rs. 1,000 Prepaid insurance Rs. 500 Machinery of Rs. 2,000 is included in Purchases. Depreciate all fixed assets at 10% Provide for commission receivable Rs. 2,000 On 31st March 1996 goods worth Rs. 5,000 wer e destroyed by fire and insurance co. Admitted claim for Rs. 2,000. 8. Goods dis tributed as free samples Rs. 1,000 were not recorded. 66 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR 13. Following is the Trial Balance of Vinod and Vikas sharing profits and losses equally. Prepare a Trading and Profit & Loss account for the year ending 31 st March, 1996 and a Balance Sheet as on that date after considering the adjustment given below. Trial Balance as on 31st March, 1996 Particulars(Debit) Stock (1-4-1995) Purchases Returns Inwards Carriage Motive Po wer Wages Trade Expenses Sundry Debtors Salaries Insurance Postage Commission Pl ant & Machinery Furniture Advertising Office Rent (10 months) Drawings Vinod Vik as Building Cash in Hand Amount 44000 170000 10000 4000 6000 56000 4000 72000 38 000 2400 3600 5000 60000 16000 8000 10000 14000 6000 24000 3000 Particulars(Cred it) Capital A/c Vinod Vikas Sales Creditors Commission Bank Loan Amount 80000 80 000 320000 40000 4000 32000 556000 556000 Adjustments 1. Stock on 31.3.1996 was valued at cost price Rs. 80,000 and market price Rs. 7 2,000. 2. Depreciate Plant & Machinery and Building at 20% and 10% respectively. 3. Insurance has been paid for one year ending 31.6.1996. 4. Goods withdrawn by Vinod amounting to Rs. 10,000 during the year were not recorded in the books. 5. Bad debts were Rs. 2000 and an R.D.D. is to be created at 5% on debtors. 6. G oods of Rs. 6000 were purchased on 30.3.1996 and also included in the closing st ock, but the purchase was not recorded in the books of account. 67 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR 14. From the following Trial Balance of Somnath and Ambadas being equal partners , you are required to prepare Trading and Profit & Loss A/c for the year ended 3 1st March, 1996 and Balance Sheet as on that date after taking into consideratio n the additional information. Trial Balance as on 31st March, 1996 Particulars(Debit) Opening Stock Drawings: Somnath Ambadas Insurance Salaries an d Wages Carriage Purchase Bills Receivable Rent Debtors Returns Machinery Travel ling Expenses Cash at Bank Building Office Expenses Advertisement (for 3 years) Amount 60000 1000 1500 600 4500 2500 65000 600 3500 18000 1000 12000 3000 1000 3 0000 2700 3000 209900 Particulars(Credit) Capital A/c Somnath Ambadas Reserve Fu nd Sales Bills Payable Creditors Reserve for Bad and Doubtful Debts Returns Amou nt 22000 18000 21600 130000 1000 16000 800 500 209900 Adjustments: 1. Closing stock: cost Rs. 25,000 and market price Rs. 30,000. 2. A llow interest on capital at 10% p.a. 3. Prepaid insurance Rs. 50. 4. Provide for R.B.D.D. at 5% on debtors. 5. Uninsured goods costing Rs. 3000 were destroyed b y fire. 6. Outstanding expenses: Salaries Rs. 1000; Rent Rs. 500. 7. Provide dep reciation on Machinery at 20%; Building 2 %. 68 BOOK KEEPING & ACCOUNTANCY

H.S.C 15. Pradeep and Prashant are partners sharing profits and losses in equal ratio. From the following Trial Balance you are required to prepare Trading and Profit & Loss account for the year ended 31st March, 1998 and Balance Sheet as on that date after taking into consideration the additional information. Trial Balance as on 31st March, 1998 Particulars(Debit) Land and Building Plant(Addition on 1st Jan. 98, Rs. 3,000) D rawings Pradeep Prashant Opening Stock Wages Purchases Carriage Office Expenses Rent, Rates and Taxes Insurance Motor van Salaries Bad debts Customers Account C ash at Bank Amount 44500 9750 3000 2000 26000 5000 34500 700 2270 1750 480 20000 1750 950 14600 250 167500 Particulars(Credit) Capitals Pradeep Prashant Sales S uppliers Account Reserve for Doubtful Debts Outstanding Expenses Amount 60000 40 000 57000 9500 500 500 OMTEX CLASSES 8TH YEAR 167500 Additional Information: 1. 2. 3. 4. 5. Closing stock on 31st March, 1998 was at cost Rs. 40,000 and Market price Rs. 50,000. Provide 10% p.a. interest on Capita l. Charge interest on drawings: Pradeep Rs. 100 and Prashant Rs. 150. Depreciate plant at 10% p.a. Prashants withdrawal of goods worth Rs. 1,000 for personal use but not recorded in the books. 69 BOOK KEEPING & ACCOUNTANCY

H.S.C 16. Given below is the Trial Balance of Sagar and Sindhu who are partners sharin g profits and losses in equal ratio. You are required to prepare a Trading and P rofits and Losses in equal ratio. You are required to prepare a Trading and Prof it & Loss A/c for the year ended 31 st March, 2006 and a balance sheet as on tha t date after taking into account the given adjustments. Trial Balance as on 31st March, 2006. Particulars(Debit) Amount Particulars(Credit) Amount OMTEX CLASSES 8TH YEAR Purchases Patent Rights Buildings Opening sock Printing & Stationery Sundry Debt ors Wages & Salaries Partners Drawings Sagar Sindhu Audit Fees Sundry Expenses Fu rniture & Fixtures 10% Investments (Purchased on 1st Oct. 2005) Conveyance Expen ses Cash Provident Fund contribution Carriage Inwards Trade Expenses Goodwill Ma chinery Shop Fittings Bad Debts Bills Receivable 98000 4000 100000 15000 1750 35000 11000 4500 6500 700 3500 8000 10000 2000 4000 800 1300 2700 20000 20000 18000 250 9000 Capitals Sagar Sindhu Provident Fund Creditors Bank Loan Sales Reserve for Doubt ful Debts Purchases Returns General Reserve Commission Bills Payable 30000 40000 17000 45000 42000 163250 6250 3500 10000 9000 10000 376000 376000 Adjustments 1. The closing stock at the end of the year was valued at market pri ce Rs. 1,44,000 which is 20% above cost. 2. Commission includes Rs. 1,400 receiv ed in advance. 3. Goods worth Rs. 15,000 were sold on 30th March 2006, but not y et recorded in the books of accounts. 4. 1/6th shop fittings and 20% of goodwill were to be written of. The provision for Bad debts was to be maintained @ 5% on debtors. 5. Provide interest on Partners capital @ 10% p.a. and charge interest on drawings @ 12% p.a. 6. Sagar is allowed a commission @ 2% on Gross profit. 7. Machinery and Buildings were to be depreciated at 15% and 205 respectively. Pat ent Rights and Furniture and Fixtures were valued at Rs. 2,000 and Rs. 5,000 res pectively. 8. Bills Receivable include a dishonoured bill for Rs. 2500. An amoun t of Rs. 2,000 spent on repairs on machinery was wrongly included in machinery a ccount. 70 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR 17. Asha and Nir0sha are the partners sharing profits and losses equally. You ar e required to prepare the Trading and profit and loss account for the year ended 31st December, 1997 and a Balance sheet as at that date after making the necess ary adjustments. Trial Balance as on 31st December, 1997 Debit Balance Amount Buildings 70000 Plant and Machinery 60000 Furniture 16000 S undry Debtors 28800 Return Inwards 6000 Discount 2600 Printing and Stationery 15 00 Insurance Charges 1600 Bad debts 1400 Salaries 19300 Purchases 98000 Cash at Bank 25800 Stock ( on 1.1.97) 20000 Carriage Inwards 2500 Legal Charges 500 Ashas Drawings 8000 Niroshas Drawings 6000 3,68,000 Adjustments: Credit Balance Amount Ashas Capital 80000 Niroshas Capital 100000 Discount Receive d 1800 Loan From Vijay 30500 Sales 120000 Sundry Creditors 30000 Reserve for Bad Debts 2000 Return Outward 3700 3,68,000 1. The stock on 31.12.97 was of the value of Rs. 44,000 which is less than its m arket value by 2,000. 2. On 24th December, 1997 stock of the value of Rs. 6,000 was stolen Insurance company admitted the claim for Rs. 4,000 only and paid the amount on 7th Jan 1998. 3. Goods worth Rs. 4,000 were received on 31st December, 1997 and were included in the closing stock, but purchase invoice was omitted t o be entered in the books. 4. The partnership firm distributed goods worth Rs. 1 ,500 as free samples and Asha withdrew goods worth Rs. 3,000 for personal use, b ut no record was made of the same in the books. 5. Of the sundry Debtors Rs. 800 were bad debts and should be written off. 6. Make reserve for discount at 5% on debtors and creditors. 7. Depreciation Plant and Machinery by 10% and Furniture by 5%. 71 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR 18. Following is the Trial balance of a firm as on 31st December, 1997 Trial Bal ance as at 31st December, 1997 Debit Balance Bank Bills Receivable Sundry Debtors Stock on 31.12.96 Purchases(net) Petty cash A/c Wages Salaries Rent (for 10 months) Electricity Charges Drawings A Drawings B Buildings Furniture Carriage Inwards Donations Carriage Outwards Miscellaneou s Expenses Printing and Stationery Postage and Telegram Fuel and power Amount Credit Balance 2,000 8,000 23,000 31,000 1,80,000 4,000 38,300 20,800 1,000 2,180 6,000 4,000 3 4,000 4,000 2,000 1,000 3,500 1,500 2,300 1,430 1,390 As Capital Bs Capital Bills Payable Sundry Creditors Reserve for bad debts Sales Amount 25,000 15,000 7,500 33,300 600 2,90,000 3,71,400 3,71,400 Adjustments: 1. Wages include Rs. 3,300 paid for the construction of a part of t he building. 2. Provide for outstanding rent 3. Depreciation is to be provided o n furniture@ 10% and Building @ 5% 4. Bills Receivable and Bills Payable include dishonoured bills for Rs. 2,000 and Rs. 1,500 respectively. 5. Bad debts to be written off Rs. 500. Provide reserve for doubtful debts @ 5% on debtors. 6. Pett y cash A/c shows the amounts transferred from cash book. Actual petty cash expen ses are Rs. 3,100. You are required to prepare Trading and profit and loss accou nt for the year ended 31st December 1997 and a balance sheet as on that date. 72 BOOK KEEPING & ACCOUNTANCY

H.S.C 19. From the following Trial Balance of M/s Kale and Gore your are required to p repare Trading and Profit and Loss account for the year ended 31st December, 199 7 and the Balance sheet as on that date after taking into account the necessary adjustments. Trial Balance as on 31st December, 1997 OMTEX CLASSES 8TH YEAR Particulars Debit (Rs.) Credit (Rs.) Kales Capital 1, 80, 000 Gores capital 1, 50, 000 Kales Drawing 14, 450 Gores Drawing 10, 000 Stock on 1 1 2004 2, 00,000 Bills Receivable 25, 000 Purchases 2, 75, 000 Sales 4, 00, 000 Bills Payable 60, 000 Return In ward 5, 000 Return Outward 4, 500 Plant and Machinery 1, 00, 000 Loose Tools 25, 000 Patents 25, 000 Sundry Debtors 55, 000 Sundry Creditors 40, 000 C ash at Bank 47, 550 Wages 19, 000 Salaries 17, 500 Rent and Taxes 7, 500 Insuran ce 3, 000 Printing and Stationery 2, 000 Power and Fuel 3, 500 8, 34, 500 8, 34, 500 Adjustments: 1. Depreciate Plant and Machinery by 5% and Patents by 15%. 2. Prov ide for Bad and Doubtful debts @ 5% on Sundry debtors. 3. Prepaid Insurance Rs. 750 4. Outstanding expenses : a. Salaries Rs. 2,500 b. Wages Rs. 1,000 c. Printi ng and Stationery Rs. 500. 5. Stock as at 31st December 1997 Rs. 1,30,000. 6. Ka le and Gore have taken goods worth Rs. 2,000 and Rs. 3,000 respectively for thei r personal use. No entry has been passed in the books. 73 BOOK KEEPING & ACCOUNTANCY

H.S.C 20. Keshav & Devidas are partners and the Trial Balance and the necessary adjust ments of their firm are given below. Trial Balance as at 31st March 1998 OMTEX CLASSES 8TH YEAR Debit Balance Amount Credit Balance Amount Purchases 1,25,225 Capital Sales retu rn 4,250 Keshav 27,000 Debtors 50,200 Devidas 35,000 Opening Stock 28,788 Sales 2,05,000 Wages 20,167 Purchase Returns 3,230 Salaries 13,677 Commission 245 Furn iture( Balance as on 1.4.98) Creditors 21,073 Rs. 6750 Dividend in Investments 8 25 Add: Purchases Reserve for Doubtful debts 500 On 31.2.98 Rs. 700 7,450 Devida s Loan 10,000 Machines 7,500 Bad Debts 315 Advt. (for 3years w.e.f. 1stOct. 97) 3000 Investments 9,500 Insurance 320 Drawings Keshav 3,000 Devidas 1,500 Cash an d Bank Balances 27,981 3,02,873 3,02,873 Adjustments: 1. Closing Stock Rs. 15,000 2. Depreciation on Machines @ 5% and on furniture @ 10% p.a. 3. Deduct Rs. 200 for bad debts and provide 2% R.D.D 4. In terest on capital (Opening Balance) at 5% p.a. but on drawings at 10% p.a. 5. Ke shav is to get 1% commission on Gross profit and Devidas is to be paid at Rs. 2, 000 p.a. as a salary. 6. After considering the adjustment, prepare the Trading, Profit and Loss A/c for the year ending 31st March 1998 and a Balance sheet on t hat date. 74 BOOK KEEPING & ACCOUNTANCY

H.S.C 21. Pankaj and Bindas are partners sharing profits in the ratio of their capital . Their Trial Balance as on 31.03.1997 is as under. Trial Balance as on 31.3.199 7 is as under OMTEX CLASSES 8TH YEAR Debit Balance Amount Credit Balance Amount Land and Building 1,00,000 Pankajs Cap ital 30,000 Plant and Machinery 30,000 Bindass Capital 50,000 Purchases 1,20,000 Bills Payable 6,000 Wages 3,500 Creditors 12,000 Opening Stock 10,000 Outstandin g commission 500 Carriage Outward 400 10% Loan (taken on 1.7.96) 10,000 Sundry D ebtors 25,000 Sales 2,00,000 Interest on Loan 250 Discount 1,100 Prepaid taxes 2 00 Commission 4,000 Salary 4,500 Reserve for bad debts 3,000 Commission 700 Gene ral Reserve 1,000 Loss by fire 2,000 Travelling Expenses 3.400 Electricity 650 P ankajs Drawings 2,000 Bindass Drawings 3,000 Cash on hand 10,000 Sales Returns 2,0 00 3,17,600 3,17,600 Prepare Trading and Profit and loss A/c for the year ended 31st March 1997 and t he Balance sheet as on that date after taking into account the following adjustm ents. 1. Closing stock cost price Rs. 20,000 and Market price is less than the c ost price by 5000. 2. Goods distributed as free samples Rs. 1,000. 3. Purchase r eturns of Rs. 2,000 on 30th March, 1997 have not been recorded in the books. 4. Wages included Rs. 1,000 paid for installation of Plant and Machinery. 5. Bills payable include a dishonoured bill of Rs. 1,000 6. Depreciate Machinery by 10% a nd Land & Building by 5% 7. Reserve for Bad debts is to be maintained at 5% on D ebtors. 75 BOOK KEEPING & ACCOUNTANCY

H.S.C 22. Dalal & Raja are partners sharing profit and losses equally. From the follow ing Trial Balance of the firm, prepare Trading a/c Profit and Loss A/c and Balan ce sheet for the year ending 31.12.1997. Trial Balance as on 31.12.1997 Debit Stock Purchases Sales Return Debtors Wages Royalties Furniture Machinery A dvertisement for 4 years Salary Provident fund contribution Provident fund inves tment Insurance Cash Drawings : Dalal Raja Rs. 20,000 1,30,200 500 20,000 6,000 1,000 5,000 30,000 4,000 3,000 500 2,000 500 3,000 3,500 1,500 2,30,700 Credit C apital Accounts: Dalal Raja Current Accounts Dalal Raja Sales Purchase Return Co mmission Provident Fund Interest on Provident fund investments. Reserve for Doub tful debts Creditors Rs. 15,000 15,000 2,000 2,000 1,70,500 3,200 300 2,000 200 500 20,000 OMTEX CLASSES 8TH YEAR 2,30,700 Adjustments. 1. Closing stock: Cost price Rs. 25,000. Dalal has taken goods worth Rs. 500 for his personal . 3,000 were sold and dispatched on 27.12.1997 but no s book. 4. Prepaid insurance Rs. 100. 5. Depreciation y by 20% 6. Write off bad debts Rs. 400/- and provide ebts at 3% on debtors. 76 BOOK KEEPING & ACCOUNTANCY Market Price Rs. 30,000/2. use. 3. Goods amounting Rs entry was made in the sale Furniture by 15%, Machiner for reserve for doubtful d

H.S.C 23. Hira and Manik are partners in a firm sharing profits and losses in the rati o of their opening capitals. Below given is their Trial Balance as on 31st March 1998. Trial Balance as at 31st March 1998 OMTEX CLASSES 8TH YEAR Debit Rs. Credit Rs. Plant and Machinery 50,000 Sales 2,40,000 Opening Stock 30, 000 Discount 2,000 Purchases 80,000 Sundry Creditors 20,000 Freehold Land & Buil ding 85,000 Bills Payable 10,750 Carriage inwards 1,700 Hiras Loan A/c 50,000 Car riage outwards 2,500 Capital A/c Wages 16,000 Hira 50,000 Sundry Debtors 50,000 Manik 25,000 Salaries 12,000 Furniture 18,000 Trade Expenses 6,000 Return Inward s 950 Advt. Suspense A/c 12,500 Discount 900 Partners Drawings: Hira 3,000 Manik 2,000 Bills Receivable 20,000 Insurance 1,200 Bad debts 1,000 Cash at Bank 5,000 3,97,750 3,97,750 You are required to prepare the Trading and Profit and Loss account of the firm for the year ended 31st March 1998 and the Balance sheet as at that date after t aking into consideration the following adjustments. 1. Closing stock Rs. 45,000 2. Depreciate Plant @10% p.a. and Furniture @20%p.a. 3. Appreciate Freehold Land & Building to Rs. 90,000 4. Bad debts reserve to be written off against 2 % on sundry debtors. 5. Advertisement Suspense A/c is to be written off against reven ue over five years. 6. Partners Drawings are to bear interest @10% p.a. amounts w ere withdrawn evenly throughout the year. 7. Annual charge for insurance is Rs. 1,000 the balance represents amount paid in advance 8. Hira gave loan @ 10% to t he firm on 30th September, 1997. 9. Manik was to be allowed a partnership salary of Rs. 250/- p.m. 77 BOOK KEEPING & ACCOUNTANCY

H.S.C 24.Sridevi & Jayaprada were partners sharing profits and losses in ratio 3/5 & 2 /5. Interest on Capital was allowed @ 5% p.a. but interests on drawings were ign ored. The following balances of accounts were given on 30.9.1997. OMTEX CLASSES 8TH YEAR Debit Rs. Opening Stock 20,000 Sundry Debtors 28,200 Purchases 40,000 Wages 8,50 0 Salaries 2,700 Office Expenses 2,446 Conveyance 1,300 Insurance 1,800 Plant & Machinery 30,000 Return Inward 3,500 Land & Building 40,000 Cash at Bank 2,654 B ills Receivable 12,000 Drawings : Sridevi 4,200 Jayaprada 1,200 1,98,500 Credit Rs. Return Outward 2,500 Sundry Creditors 31,600 Sales 70,000 Reserve for Bad Debts 400 Capital Account: Sridevi 70,000 Jayaprada 20,000 Loan @ 10% p.a. (Taken on 1.4.97) 4,000 1,98,500 You are given the following additional information. 1. Closing stock was valued at Rs. 52,000/2. Wages unpaid was Rs. 2,000/- & outstanding salaries were Rs. 1, 600/3. Bills Receivable includes a dishonoured bill of Rs. 2,000 4. Write off Rs . 200/- as further bad debts and provide 6% reserve for bad debts on Sundry debt ors. 5. Depreciation Plant & Machinery @ 10% and Land & Building @ 5% 6. Goods d istributed as free samples amounted to Rs. 2,000 were not recorded. 7. Sridevi w as entitled to a salary @ Rs. 500 p.m. and Jayaprada was entitled to a commissio n of 5% on Gross profit. 8. Carriage inward included Rs. 1, 000 paid for transpo rt charges and octroi on new machinery purchases on 1- 10 1996. 78 BOOK KEEPING & ACCOUNTANCY

H.S.C 25. Prepare Trading and Profit & Loss account for the year ended 31st December, 1996 and Balance sheet as on that date from the following Trial Balance of Kaver i and Narmada OMTEX CLASSES 8TH YEAR Debit Balance Rs. Kaveris Drawings 4,000 Narmadas Drawings 4,000 Land & Building 2 1,000 Plant & Machinery 12,600 Stock(1.1.1996) 8,000 Purchases 12,000 Wages 5,00 0 Carriage Outward 500 Carriage Inward 400 Coal 1,260 Salary 7,500 Rent, Rates & Taxes 560 Discount Allowed 300 Cash & Bank Balance 5,080 Sundry Debtors 9,000 P rinting & Stationery 460 Bad Debts 240 Advertisement 1,750 Sales Return 400 Furn iture 1,240 Bills Receivable 1,600 96,890 Credit Balance Rs. Kaveri Capital 12,000 Narmadas Capital 20,000 Bills Payable 6, 790 Creditors 14,600 Purchase Returns 500 Sales 43,000 96,890 Adjustments: 1. Closing Stock is valued at Rs. 10,000/- at cost whose market val ue was Rs. 15,000/2. Depreciation Land & Building and Plant & Machinery by 10% & Furniture by 5%. 3. Provision for doubtful debts should be maintained at 5% on sundry debtors. 4. Kaveri has withdrawn goods for his personal use Rs. 500 for w hich no entry is passed. 5. Fire occurred in the Godown and goods worth Rs. 5, 0 00 were destroyed, but Insurance Company admitted Claim for Rs. 3, 500. 6. Salar y outstanding Rs. 1,500. 7. Wages outstanding Rs. 1,000 and 8. Rates prepaid Rs. 60. 79 BOOK KEEPING & ACCOUNTANCY

H.S.C 26.Kamesh and Mani are partners sharing profits and losses in equal ratio. From the following Trial Balance you are required to prepare Trading and profit and L oss Account for the year ended 31st December, 2005 and Balance sheet as on that date after taking into consideration the additional information. Debit Balance Land and Building Plant (addition on 1st October, 2005 Rs. 3,000) Drawings: Kamesh Mani Opening Stock Wages Purchases Carriage inwards Office expe nses Rent, Rates and Takes Insurance Motor Van ( addition on 1st June Rs. 10, 00 0) Salaries Bad debts Debtors Cash at Bank Amount 44, 500 9, 750 3, 000 2, 000 2 6, 000 5, 000 34, 500 700 2, 270 1, 750 480 20, 000 1, 750 950 14, 600 250 1, 67 , 500 Credit Balance Capitals Kamesh Mani Sales Sundry Creditors Reserve for Dou btful Debts Outstanding Expenses Amount 60, 000 40, 000 57, 000 9, 500 500 500 OMTEX CLASSES 8TH YEAR 1, 67, 500 Additional Information: 1. Closing stock on 31st December, 2005 was at cist Rs, 40, 000/- and Market price Rs. 50,000/2. Depreciate Plant at 10% p.a. and Land a nd Building @ 20% p.a. 3. Mani withdrawal of goods worth Rs. 1, 000 for personal use but not recorded in the books. 4. Depreciate Motor van by 10% p.a. 5. The g oods for Rs. 5, 600 purchases and received on 25th December, 2002 were not recor ded in the purchase book. 6. Goods worth Rs. 3, 000 were destroyed by fire but i nsurance company admitted claim for the full amount. 7. Insurance is paid for th e year ended 31st March 2005. 80 BOOK KEEPING & ACCOUNTANCY

H.S.C 27. From the following Trial Balance of SKY Traders, you are required to Prepare Trading and profit and Loss Account for the year ended 31st March, 2005 and the Balance sheet as on that date. Trial Balance as on 31st March 2005 OMTEX CLASSES 8TH YEAR Debit Balance Amount Machinery 12, 000 Wages 4, 000 Purchases 41, 000 Stock ( 14 - 2004 ) 7, 000 Carriage inwards 400 Office Expenses 2, 600 Leasehold propert y 10, 000 Furniture 2, 000 Insurance 2, 000 Bad debts 250 Discount 350 Rent ( 10 month) 1, 000 Drawing: Maridas 4, 000 Nambirajan 6, 000 Packing expenses 200 Ca sh at Bank 5, 700 Salaries 4, 000 Bills receivable 6, 000 Sundry debtors 5, 300 Cash in hand 3, 500 1, 17, 300 Credit Balance Amount Discount 400 Sales 60, 000 Unpaid Salaries 200 Capital: Ma ridas 30, 000 Nambirajan 15, 000 Creditors 6, 900 Bills Payable 4, 300 Return Ou twards 500 1, 17, 300 Adjustments: 1. Maridas and Nambirajan share profits and losses in the ratio 3: 2. 2. On 31st March 2005 Stock was valued at Rs. 11, 000/3. Rent is payable for two months. 4. On 29th March, 2005 goods were sold to a customer on credit for R s. 2, 000 no entry has been passed in the books for sale. 5. Machinery to be dep reciated at 10% p.a. 6. R.D.D is to be created at 5% on sundry debtors. 81 BOOK KEEPING & ACCOUNTANCY

H.S.C 28.From the following Trial Balance of Shyam and Sundar, You are required to pre pare a Trading and Profit and Loss account for the year ended 31st December, 200 2 and Balance sheet as on that date after taking into consideration the addition al information. They share profits and losses in their capital ratio. Trial Bala nce as on 31st December, 2002 OMTEX CLASSES 8TH YEAR Particulars Amounts Particulars Amounts Drawings: Capital Accounts: Shyam 2, 000 Shyam 40, 000 Sundar 1, 000 Sundar 60, 000 Opening Stock 12, 000 Creditors 30, 000 Purchases 80, 000 Sales 1, 40, 000 Office Salaries 6, 000 R.D.D 1, 000 Royal ties 2, 000 Return Outwards 2, 400 Trade Expenses 1, 400 Bills Payable 6, 000 Ad vertisement 5, 200 Reserve Fund 4, 000 Wages and Salaries 10, 400 Cash in Hand 8 , 000 Debtors 50, 000 Bad Debts 400 Investments 16, 000 Motor Van 30, 000 Furnit ure 10, 000 Office Rent 3, 400 Plant and Machinery 24, 000 Freehold Property 16, 000 Bills Receivable 4, 000 Discount 1, 600 2, 83, 400 2, 83, 400 Adjustments: 1. Closing stock was valued at Rs. 17, 600 2. Audit Fee for the yea r was outstanding Rs. 2, 400 3. Create R.D.D at 5% on Debtors. 4. The goods for Rs. 5, 600 purchased and received on 25th December, 2002 were not recorded in th e purchase book. 5. Depreciate freehold property at 10% and Motor Van at 25% 82 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR 29.Ram and Sham are partners sharing Profits & Losses in the ratio of 2:3. Their trial balance as on 31st March, 2005 is given below. You are required to prepar e Trading A/c and Profit & Loss A/c For the year ending 31st March, 2005 and a B alance sheet as on that date after taking into account the given adjustments. Tr ial Balance as on 31st March, 2005 Particulars Purchases Patent rights Buildings Stock(1-4-2004) Printing & Station ery Sundry Debtors Wages & Salaries Audit Fees Sundry Expenses Furniture 10% inv estment (purchased on 1-10-2004) Cash Provident fund contribution Carriage inwar d General expenses Amounts 98, 000 4, 000 1, 00, 000 15, 000 1, 750 35, 000 11, 000 700 3, 500 8, 000 10, 000 4, 000 800 1, 300 2, 700 Particulars Capitals: Ram Sham Provident Fund Creditors Bank Loan Sales Reserve for doubtful debts Purcha se Returns. Amounts 30000 40000 7000 45000 12000 158000 250 3500 295750 295750 Adjustments 1. Closing stock is valued at cost Rs. 15, 000 while its market price Rs. 18, 00 0. 2. On 31st December 2004 the stock of stationery was Rs. 500. 3. Reserve for bad and doubtful debts at 5% on debtors. 4. Depreciate building at 5% and Patent s at 10% 5. Interest on capital is to be allowed @5%. 6. Goods worth Rs. 10, 000 were destroyed by fire. The insurance company admitted a claim for Rs. 8, 000/-. 83 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR CH. 7. OBJECTIVES [Q. 1: 20 MARKS] SET I 1. Write word/term/phrase which can substitute each of the followings: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 2 3. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 4 3. 44. 45. Reputation of a firm expressed in terms of money. Payment of expenses before they have become due. Payment of bill of exchange before its due date at rebate. The person on whom the bill of exchange is drawn. The account that is c redited when depreciation is charged. A bill before acceptance. Amount by which book value of fixed assets exceeds its selling price. Expenses due but not paid. Partners of joint venture business. Normal Rate of Return x Capital employed. W hich types of expenses are debited to Trading Account? What are Not for Profit Con cerns? How are drawings treated in preparing statement of Profit or Loss? Who is an endorsee? What is depreciation? A partnership for specific purpose and for t emporary period. List of debit and credit balances of the ledger accounts. A per son who accepts the bill. Written agreement among the partners. The balance whic h cannot be recovered from the debtors. The account that serves the purpose of P &L A/c for non trading organisation. The system of book keeping under which only one aspect of the transactions is recorded. The person on whom the bill of exch ange is drawn. The account that is credited when depreciation is charged. The pr esent value of tangible trading assets less all the liabilities, which is requir ed for valuation of goodwill. Goods returned to the supplier. It is a stick or l ever used to change the position of the cursor on a screen. A bill in which the period of the bill is counted from the date of the bill accepted. The receipts t hat are an unusual nature not arising through named activities of the business. A fixed asset which is not essential for conduct of business. Debit balance of t rading account. Written terms of agreement between the partners. Summary of actu al cash receipts and cash payments. A system in which accounts are prepared from incomplete records. An account opened by covertures in the bank for recording c ash transactions. A statement showing financial position of the business. Making the payment of bill before its due date. Summary of actual cash receipts and ca sh payments. The relationship between persons who have agreed to share profit or loss in Joint Venture Business. A Partner who only lends his name to the firm. A Partner who lends only his name to the firm. Concerns established for providin g services. Profit earned over and above normal profit. A temporary partnership without firm name. A person who endorses the bill. 84 BOOK KEEPING & ACCOUNTANCY

H.S.C 46. 47. 48. 49. 50. The balance which cannot be recovered from the debtors. An accounting system whe re rules of debit and credit are not followed. Money value of business reputatio n. A person entered into a joint venture. The Gifts received from legal represen tative as per the will of a deceased person. OMTEX CLASSES 8TH YEAR 2. Match the following: 1. 2. 3. 4. 5. Group A Opening Stock Fixed instalment Account Subscription a. b. c. d. e. f. g. h. Group B ains constant. Trading account Revenue income Capital rting symbolic language Separate set of books Utility 1. 2. 3. 4. 5. Group A Unpaid expenses Single Entry System Computer Co Venture Maker of a bill a. b. c. d. e. f. g. h. Group B Electronic device Partnership firm Drawee Asset side Unscientific Liabil ity side Drawer Joint venture 1. 2. 3. 4. 5. Group A Not for profit concerns Fixed capital method. Unexpired expenses Tempora ry Partnership Pure Single Entry System a. b. c. d. e. f. g. h. Group B Capital A/c. of partner. Current A./c of Partner. Joint venture Asset Li ability Only personal A/cs. Profit & Loss A/c. Income and Expenditure A/c. 1. 2. 3. 4. 5. Group A Goodwill Discount to customers Statement of Affairs Income and Expenditu re account Fixed Instalment Method. a. b. c. d. e. f. g. h. Group B Book Debts Sundry Creditors Tangible Asset Intangible Asset Single Entry System Double Entry System Original Cost Not for Profit concerns 1. 2. 3. 4. 5. Group A Partners Salary Subscription received in advance for the current year. Di shonour of bill. Cash in hand. Unsold goods taken over by co ventures Group A a. b. c. d. e. f. g. h. Group B Balance sheet asset side. Current asset. Deducted from gross profit. Cre dited to joint venture account. Credited to covertures A/c Noting Charges. Closi ng balance sheet liability side. Fixed assets. Group B 85 BOOK KEEPING & ACCOUNTANCY method Software Joint Bank Amount of depreciation rem income Balance sheet Conve programme

H.S.C 1. 2. 3. 4. 5. OMTEX CLASSES a. b. c. d. e. f. g. h. Intangible Asset Records all cash transactions Trading A /c cant be prepared Current asset Temporary memory Uniformity maintaining account s. Temporary partners Nominal A/c 8TH YEAR RAM Co Ventures Goodwill Receipts & Payment A/c Single Entry System of Book Keep ing. 1. 2. 3. 4. 5. Group A Co - Venture Rebate Credit balance of Income & Expenditure Account Dorma nt Partner Trading Account a. b. c. d. e. f. g. h. Group B Limited liability Surplus Temporary partner Retirement of a bill Deficit Does not take active part in the business Account showing the net profit / net loss Power and Fuel / Gross profit. A Group 1. 2. 3. 4. 5. Not for profit concerns. Fixed Capital method. Unexpired expenses. Temporary par tnership Pure single entry system. a. b. c. d. e. f. g. h. B Group Capital account of partner Current account of partner Joint venture Asse t Liability Only Personal account Profit and Loss account. Income and expenditur e account. 1. 2. 3. 4. 5. A Interest on partners loan Excess of income over expenditure Legal due date Pri nting and Stationery Goods sold by consignee 1. 2. 3. 4. 5. 6. 7. 8. B Deficit Before adding three grace days Not Exceeding 6% After adding three gra ce days. Surplus Trading Account Debited to Consignees Account. Profit / loss acc ount. A 1. 2. 3. 4. 5. Depreciation Dishonour of bill Joint Venture Goodwill Co Ventur ers 1. 2. 3. 4. 5. 6. B Temporary Partners Intangible Asset Wear and tear Notary public Temporary part nership Tangible Asset 3. Select the most appropriate alternative from those given below 1. Debit Balance in Profit and Loss Account shows _______________ a. Net profit b. Gross profit c. Net loss d. Gross loss 2. A bill of exchange must be accepted by _______________ 86 BOOK KEEPING & ACCOUNTANCY

H.S.C 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. a. A drawer b. A payee c. An endorsee d. A drawee At the end of the financial ye ar balance of Depreciation account is transferred to _______ a. Depreciation acc ount b. Asset account c. Trading account d. Profit and loss account. In the abse nce of partnership deed the partners share the profit and loss of the firm ____ a. In the ratio of capital b. Equally c. As per rights in management d. On the b asis of experience. ____________ has to ultimately bear the noting charges. a. D rawer b. Drawee c. Endorser d. Bank The Indian Partnership Act came into force i n ____________________. a. 1942 b. 1932 c. 1953 d. 1956 Excess of assets over li abilities is termed as ___________________. a. Endowment Fund b. Capital Fund c. Special Fund d. None of these Fixed Instalment method of depreciation is also c alled as _______________ a. Straight Line Method. b. Reducing Balance Method. c. Written down value method. d. Depreciation Fund Method. Drawing a fresh bill in cancellation of old bill is called as _________________. a. Retirement of Bill. b. Discounting of bill. c. Endorsement of Bill. d. Renewal of bill. When the co ventures incur the joint venture expenses from his pocket _________ A/c is cred ited. a. Joint Venture A/c b. Joint Bank A/c c. Co ventures A/c d. Consignees A/c The Indian Partnership Act is in force since ____________ a. 1932 b. 1942 c. 19 52 d. 2002 Normally, Receipts and payments account shows ____________ balance. a . Debit b. Credit c. Nil d. Overdraft Excess of opening capital over the closing capital is considered as a. Income b. Profit c. Gain d. Loss Making payment of the bill before the due date is known as ____________ of a bill. a. Retirement b . Honouring c. Dishonouring d. Renewal OMTEX CLASSES 8TH YEAR 87 BOOK KEEPING & ACCOUNTANCY

H.S.C 15. If two or more persons come together to carry on a business activity for a s hort period, it is known as ____________ a. Joint venture b. Consignment c. Part nership firm. d. Co operative society. 16. The interest on capital of a partner is _______ to profit & loss account. a. Credited b. Added c. Debited d. Divided 17. If fixed capital method is adopted, Net profit is transferred to _______ acc ount of the partner. a. Current b. Capital c. Balance sheet d. Trading 18. Not f or profit organisation prepares _________ to find out its financial position. a. Balance sheet b. Receipts & payments accounts. c. Trading account d. Income & E xpenditure account. 19. Wages paid for Installation of Machinery should be debit ed to the ____________ account. a. Installation b. Wages c. Salaries d. Machiner y. 20. There are ___________Parties to a bill of exchange. a. Four b. Three c. T wo d. One. 21. Persons entering into a joint venture are called _______________ a. Partners b. Co partners c. Co venturers d. Consignees 22. The _________ has t o ultimately bear the noting charges. a. Drawer b. Endorser c. Bank d. drawee 23 . The component of CPU that controls the various input output devices is _______ ____ a. Memory unit, b. Control unit, c. arithmetic logical unit d. Key board 24 . Loss on sale of asset is debited to _______________ a. Assets A/c b. P&L A/c c . Depreciation A/c d. Trading A/c 25. In the absence of partnership deed the par tners share profit & loss of the firm ___________ a. In the ratio of capital b. Equally c. As per rights in management OMTEX CLASSES 8TH YEAR 88 BOOK KEEPING & ACCOUNTANCY

H.S.C d. On the basis of experience 26. Partners drawings are transferred to his ______ ____ a/c under fixed capital method. a. Capital A/c b. Current A/c c. Trading A/ c d. Profit and loss A/c 27. Sale of old materials must be shown on credit side of ____________ a. Cash book b. Income and expenditure account c. Balance sheet d. Receipt and Payments account 28. Cost of asset = _____________ a. Purchase pr ice + scrap value b. Purchase price + depreciation c. Purchase price + incidenta l cost d. None of the above 29. A person in whose favour the bill is endorsed is called ___________ a. Endorsee b. Endorser c. Drawer d. None of the above 30. E xpenses incurred by covertures is debited to ___________ c. d. 31. Reserve for d iscount on ______________ has a debit balance. a. Debtors c. Bills Receivable d. Loan advanced. Income and Expenditure Account is a _______________ a. Personal account b. Real account c. Nominal account d. Asset account Under ____________ s ingle entry system, no records are kept separately for impersonal accounts. a. Q uasi b. Pure c. Simple d. Modern There are ___________ parties to a bill of exch ange. a. Two b. Three c. Four d. Five Persons who enter into Joint Venture are c alled ___________ a. Co ventures b. Partners c. Shareholders d. Loan holders a. b. None of the below Consignees account Co venturers account Joint venture acc ount. OMTEX CLASSES 8TH YEAR b. Creditors 32. 33. 34. 35. 36. Reserve for discount on ______________ has a debit balance. a. Debtors b. Cr editors c. Bills Receivable d. Loan advanced. 37. Income Statements and Balance Sheet are prepared in a systematic and scientific manner under ________________ a. Double Entry System. 89 BOOK KEEPING & ACCOUNTANCY

H.S.C 38. 39. 40. 41. 42. 43. 44. 45. 46. b. Single Entry System c. Partial Entry System. d. Indian System. Before accepti ng a bill, it is called a _________ a. Note b. Draft c. Hundi d. Request. Valuat ion of goodwill depends upon ________ capacity of business. a. Normal b. Repayin g c. Earning d. Capital If two or more persons come together to carry on a busin ess activity for a short period, it is known as ___________ a. Joint venture b. Consignment c. Partnership d. Stock exchange Subscription received in advance du ring the accounting year is ____________ a. an income b. an expense c. an asset d. a liability Depreciation is charged only on the ____________ a. Current asset b. Intangible assets c. Immovable assets d. Fixed assets Brain of computer is _ ____________ a. Micro processor (march 2008) b. RAM c. DRAM d. DOS Unsold stock of Joint Venture taken over by Co venture is credited to ___________ a. Co ventu res A/c b. Joint Venture A/c c. Joint Bank A/c d. Stock A/c A one months bill draw n on 31st January, 2007 will be matured on ___________ a. 3rd March, 2007 b. 28t h February, 2007 c. 29th February, 2007 d. 2nd March, 2007 Interest on the capit al of partner is debited to _______________ a. Trading account b. Profit and los s account c. Partners capital account d. Partners current account OMTEX CLASSES 8TH YEAR 47. Computer is a / an ______________ a. Mechanical device b. Automation device c. Electronic device d. Electric device 48. Joint venture is a ________________ a. Trading concern b. Non trading concern c. Religious concern d. Public concern 90 BOOK KEEPING & ACCOUNTANCY

H.S.C OMTEX CLASSES 8TH YEAR 49. A donation received for a specific purpose is a _______________ a. Capital r eceipt b. Revenue receipt c. Liability d. Asset 50. A bill drawn and accepted on 12th June 2007 for two months will be due for payment on ___________ a. 12th Au gust, 2007 b. 15th August, 2007 c. 16th August, 2007 d. 14th August, 2007 OMTEX WISHING YOU ALL THE VERY SUCCESS IN YOUR FORTH COMING BOARD EXAMINATON BISMILLAH Important points to remember 1. Bad debts = Trial balance amount (debit side) 2. Further bad debts = Adjustme nt Amount. 3. N.R.D.D. = Adjustment percentage 4. O.R.D.D. = Trial balance amoun t (credit side) 1. Interest on drawings is to be calculated for 6 months only. 2. If bills recei vable is dishonoured then (-) from Bills receivable and (+) to debtors. 3. If bi lls payable is dishonoured then (-) from bills payable and (+) to creditors. 4. N.R.D.D. on debtors should be charged at second last. 5. Discount on debtors sho uld be charged at last. 91 BOOK KEEPING & ACCOUNTANCY

H.S.C Dr Particulars Format of Trading Account Amount (Rs.) Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Xxx Particulars By Sales () Returns By Goods loss by fire By Goods lost by theft By Goods Withdrawn by par tner By Goods distributed as free samples By Closing Stock Cr Amount (Rs.) Xxx X xx Xxx Xxx Xxx Xxx Xxx OMTEX CLASSES 8TH YEAR To Opening Stock To Purchases (-) Returns To wages/ Wages & Salaries To Producti ve wages To Octroi Duty To Royalties/Royalties on purchase To carriage inward To cleaning Charges To Factory Expenses To Motive Power To li ghting & heating To Power & Fuels To factory insurance To custom duty To Factory electricity To Factory Manager expenses To Factory Rent To Factory Repairs To w ages & Salaries To carriage To carriage on purchases To freight Charges To excis e duty To Import duty To dock Charges To Cartage charges To Manufacturing expens es To Gas, Fuel To coal & Coke To ware housing charges To Gross Profit c/d xxx By Gross loss c/d Xxx xxx Xxx 92 BOOK KEEPING & ACCOUNTANCY

H.S.C Dr Particulars Format of profit & loss Account Amount (Rs.) To Gross loss b/d Xxx To salaries Xxx To carriage outward Xxx To su ndry expenses Xxx To printing & Stationery Xxx To electricity charges Xxx To mis cellaneous expenses Xxx To advertisement Xxx To office expenses Xxx To office re nt Xxx To office insurance Xxx To Royalty on sales Xxx To salary & Wages Xxx To Commission Xxx To Interest Xxx To Discount Xxx To Bad Debts Xxx (+) F.B.D. Xxx ( +) N.R.D.D. Xxx (-) O.R.D.D. Xxx To entertainment expenses Xxx To Telephone Char ges Xxx To Rent & Rates Xxx To Sales Tax. Xxx To Postage & Telegram Xxx To Offic e Manager Salary Xxx To Unproductive Wages Xxx To freight on sales Xxx To legal fees Xxx To Delivery van expenses xxx To conveyance Expenses xxx To Petty Cash e xpenses xxx To Administrative expenses xxx To Refreshment Expenses xxx To loss o n sale of asset xxx To publicity expenses xxx To loading charges xxx To deprecia tion xxx To loss on sale of assets xxx To brokerage xxx To net profit c/d xxx Xx x Cr Amount (Rs.) By Gross Profit b/d Xxx By income received Xxx By commission X xx By interest Xxx By discount Xxx By premium Xxx By Rent Xxx By Sundry receivab le Xxx By appreciation Xxx By Profit on sales of Assets Xxx By Sale of scrap Xxx Particulars OMTEX CLASSES 8TH YEAR By net loss c/d xxx Xxx 93 BOOK KEEPING & ACCOUNTANCY

H.S.C Dr Liabilities Format of Balance Sheet Amount (Rs.) Capital A/c Xxx A Xxx B Xxx Current A/c Xxx A Xxx B Xxx Reserves Xx x General Reserves Xxx Fund Xxx Reserve Fund Xxx Loan Xxx Loan from partners Xxx Bank Loan Xxx Bank overdraft xxx Sundry Creditors xxx Bills Payable xxx Outstan ding expenses xxx Income received in advance xxx Cr Amount (Rs.) Good will Xxx L and & Buildings Xxx Free hold Premises Xxx Machinery Xxx Furniture Xxx Lease Hol d Premises Xxx Office Equipments Xxx Sundry Debtors Xxx Cash in hand Xxx Cash at Bank Xxx Bill Receivable Xxx Live stock Xxx Shares & securities Xxx Prepaid exp enses Xxx Loan Given Xxx Computer Xxx Copy right Xxx Patients Xxx Trade Mark Xxx Brand Name Xxx Loose Tools Xxx Fittings Xxx Fixed assets Xxx Current Assets Xxx Vehicles Xxx Income receivable Xxx Closing Stock Xxx Insurance claim receivable Xxx Patents & Patterns Xxx Premises Xxx Assets Xxx OMTEX CLASSES 8TH YEAR Xxx 94 BOOK KEEPING & ACCOUNTANCY