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12th Standard Accountancy English Medium All Chapter Book Back and Creative Five Marks Questions 2020

Published on: 11/03/2020

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Questions:

Generic 5

30 x 5 = 150

Calculate quick ratio of Babu construction Ltd., from, the information given below

Particulars	Rs.
Total current liabilities	2,00,000
Total current assets	4,00,000
Inventories	70,000
Prepaid expenses	30,000

Following is the extract of the balance sheet of Hindustan Products Ltd., as on 31^st March 2019.

Particulars	Rs.
I. EQUITY AND LIABILITIES
1. Shareholders' funds
(a) Share capital	2,90,000
(b) Reserves and surplus	60,000
2. Non-current liabilities
Long term borrowings	40,000
3. Current liabilities
(a) Trade payables	1,15,000
(b) Other current liabilities	15,000
Total	5,20,000

Alpha Company issues 10,000 equity shares Rs.10 each payable fully on application.
Pass journal entry if the shares are issued
(i) at par
(ii) at a premium of Rs.2 per share.

From the following information, calculate trade percentages for Malar Ltd

Particulars	Rs. In lakhs
Particulars	2015-16	2016-17	2017-18
Revenue from operations	100	120	160
Other income	20	24	20
Expenses	20	14	40
Income tax	30%	30%	30%

From the following particulars of Vijay Ltd, prepare common size income statement for the year ended 31^st March 2017 and 31^st March 2018

Selvam, Saravanan and Santhosh were partners of a firm sharing profits and losses in the ratio of 3: 2 : 1. Set out below was their balance sheet as on 31't December 2018.

Liabilities	Rs.	Rs.	Assets	Rs.
Bills payable		15,000	Cash in hand	3,000
Sundry creditors		25,000	Cash at bank	35,000
Capital Accounts			Bill receivable	11,000
Selvam	80,000		Book debts	18,000
Sarvanan	50,000		Stock	36,000
Santhosh	40,000	1,70,000	Furniture	7,000
Profit and Loss A/c		30,000	Plant & Machinery	50,000
			Buildings	80,000
		2,40,000		2,40,000

Selvam retired from the partnership on 1^st January 2019 on the following terms:
(i) Goodwill of the firm was to be valued at Rs.30,000
(ii) Assets are to be valued as under stock Rs.30,000 plant and machinery Rs.40,000; Buildings Rs.1,00,000
(iii) A provision for doubtful debts be created at Rs.1,000
(iv) Rs.21,500 was to be paid to Selvam immediately and the balance was transferred to his loan account.
Show revaluation account, capital accounts, bank account and the balance sheet of the reconstituted Partnership.

Das Ltd. offered 50,000 equity shares of Rs.10 each to the public payable as follows: On application Rs.4; on allotment Rs.3; on first call Rs.1 and on second and final call Rs.2.
Applications were received for 1,00,000 shares. All the applicants were allotted 1 share for every two shares applied. Excess application money was used for amount due on allotment and call. Pass necessary journal entries.

Valluvan and Kamban were partners sharing profits and losses as 60% tovalluvan and 40% Kamban. Their balance sheet as at 1^st January, 2019 stood as under:

Liabilities	Rs.	Rs.	Assets	Rs.
Sundry creditors		96,000	Cash in hand	4,000
Bills payable		34,000	Sundry debtors	56,000
Capital Accounts:			Stock	40,000
Valluvan	90,000		Plant and machinery	80,000
Kamban	80,000	1,70,000	Land and Buildings	1,20,000
		3,00,000		3,00,000

The partners agreed to admit Elangovan into the firm subject to revaluation of the following items:
(i) Stock was to be reduced by Rs. 4,000
(ii) Land and Buildings were to be valued at Rs. 1,60,000
(iii) A provision of 2\(\frac{1}{2}\)% was to be created for doubtful debtors.
(iv) A liability of Rs.2,600 for outstanding expenses had been omitted to be recorded in the books
Prepare the Revaluation account, capital accounts and the Balance sheet after the above adjustment

Anusha and Barathi contribute Rs.2,00,000 and Rs.1,00,000 respectively as capital. Their respective share of profit is 3:2 and the profit before interest on capital for the year is Rs.27,000. Compute the amount of interest on capital in each of the following situations:
(i) If the partnership deed is silent as to the interest on capital
(ii) If interest on capital @ 3% is allowed as per the partnership deed
(iii) If the partnership deed allows interest on capital @ 5% p.a.

10.

Thangamuthu, Anaimuthu and Vairamuthu are partners sharing profit and loss in the ratio of 3:3:2.
Thangamuthu wanted to retire on 1st June 2018, the firms books showed a general reserve of Rs.40,000. Pass entry.

11.

Eswari and Ranikumari are partners sharing profits and losses in the ratio of 7:5. They agree to admit Chitra into partnership. Eswari surrenders \(\frac{1}{7}\) th of her share and Ranikumari \(\frac{1}{5}\) th of her share in the favour of Chitrao Calculate the New profit ratio and the sacrificing ratio.

12.

From the following details of vijay who maintains incomplete records, prepare trading and profit and loss account for the year ended 31^st March 2018 and a Balance sheet as on the date.

Particulars	As on 1.4.2017 Rs.	As on 31.3.2018 Rs.
Sundry Creditors	37,500	43,750
Furniture	2,500	2,500
Cash	6,250	10,000
Sundry debtors	62,500	87,500
Stock	25,000	12,500

Other details:

	Rs.
Drawings	10,000
Discount received	3,750
Discount allowed	2,500
Cash received from sundry debtors	1,35,000
Cash paid to creditors	1,12,500
Sales returns	3,750
Purchase returns	1,250
Sundry expenses paid	8,750

13.

From the following details, find out credit purchases:

Particulars	Rs.
Opening sundry creditors	75,000
Closing sundry creditors	90,000
Cash paid to sundry creditors	22,500
Discount received	15,000
Purchase returns	7,500

14.

Write up the capital and current accounts of the partners, Kannagi and vasugi from the following details.

Particulars	Kannagi Rs.	Vasugi Rs.
Capital on 1.4.2018	1,00,000	60,000
Current Alc on 1.4.2018	3,000(Dr)	2,000(Cr)
Drawing during 2018-19	8,000	5,000
Interest on capital	5,000	3,000
Interest in drawings	240	150
Share of profit 2018-19	12,000	10,000
Partner's salary	4,000	-

15.

From the following information, find out the value of goodwill by capitalisation method:
(a) Average profit = Rs. 60,000
(b) Normal rate of return = 10%
(c) Capital employed = Rs. 5,60,000

16.

A partnership firm has decided to value its goodwill for the purpose of setting a retiring Partner. The profit of that firm for the last four years were as follows:
2015 : Rs.20,000; 2016 : Rs.25,000; 2017; Rs.24,000 and 2018: Rs.23,000
The business was looked after by a partner. No remuneration was paid to him. The fair remuneration of the partner valued at comes to Rs. 3,000 per annum.
Find out the value of goodwill, if it is valued on the basis of three years purchase of the average profit of the last four years.

17.

From the following Receipts and Payments Account of Trichy, Rotary club, prepare Income and Expenditure Account for the year ended 31.03.2019

Receipts	Rs	Paymenta	Rs
To Opening Balance		By Furniture Purchased	10,000
Cash in hand	11,000	By Rent	2,800
To Sale of old newspaper	3,600	By Postage	1,700
To Member's Subscription	31,000	By General expenses	4,350
To Locker rent	8,000	By Printing and stationery	45,000
To Interest on investments	1,250	By Audit fees	5,000
To Sale of furniture	5,000	By Closing balance
		Cash in hand	3,000

18.

From the following extract of Receipt and Payment Account and the additional information given below, compute the amount of income from subscriptions and show as how they would appear in the Income and Expenditure Account for the year ending March 31^st, 2015 and Balance sheet.

Dr Receipt and Payment Account for the year ending March 31, 2015 Cr
Receipts	Rs	Payments	Rs
Subscription:
2013-14 7,000
2014-15 30,000
2015-16 5,000	42,000

Additional Information:
(i) Subscriptions outstanding March 31, 2014 Rs. 8,500
(ii) Total subscriptions outstanding March 31, 2015 Rs. 18,500
(iii) Subscriptions received in advance as Rs. 4,000 on March 31, 2014.

19.

Amal and Vimal are partners in a firm sharing profits and losses in the ratio of 7:5. Their balance sheet as on 31st March, 2019, is as follows:

Liabilities	Rs.	Rs.	Assets	Rs.
Capital accounts:			Land	80,000
Amal	70,000		Furniture	20,000
Vimal	50,000	1,20,000	Stock	25,000
Sundry creditors		30,000	Debtors	30,000
Profit and loss A/c		24,000	Bank	19,000
		1,74,000		1,74,000

Nirmal is admitted as a new partner on 1.4.2018 by introducing a capital of Rs.30,000 for 1/3 share in the future profit subject to the following adjustments.
(a) Stock to be depreciated by Rs. 5,000
(b) Provision for doubtful debts to be created for Rs. 3,000
(c) Land to be appreciated by Rs. 20,000
Prepare revaluation account and capital account of partners after admission.

20.

Vijayan, Sudhan and Suman are partners who share profits and losses in their capital ratio. Their balance sheet as on 31.12.2018 is as follows Balance Sheet as on 31.12.2018

Liabilities	Rs.	Rs.	Asset	Rs.
Capital accounts:			Building	80,000
Vijayan	70,000		Stock	45,000
Sudhan	50,000		Debtors	25,000
Suman	30,000	1,50,000	Cash at bank	20,000
General reserve		18,000	Cash in hand	15,000
creditors		17,000
		1,85,000		1,85,000

Suman died on 31.3.2019. On the death of Suman, the following adjustments are made:
(i) Building is to be valued at Rs. 1,00,000
(ii) Stock to be depreciated by Rs. 5,000
(iii) Goodwill of the firm is valued at Rs. 36,000
(iv) Share of profit from the closing of the last financial year to the date of death on the
basis of the average of the three completed years’
profit before death. Profit for 2016, 2017 and 2018 were Rs. 40,000, Rs. 50,000 and Rs. 30,000 respectively.
Prepare the necessary ledger accounts and the balance sheet immediately after the death of Suman.

21.

John, James and Raja are partners in a firm sharing profits and losses equally. Their balance sheet as on 31st March, 2019 is as follows:
Raja retired on 31^st March, 2019 subject to the following conditions:
(i) Machinery is valued at Rs. 1,30,000
(ii) Value of office equipment is brought down by Rs. 2,000
(iii) Provision for doubtful debts should be increased to Rs. 3,000
(iv) Investment of Rs. 25,000 not recorded in the books is to be recorded now
Pass necessary journal entries and prepare revaluation account.

22.

The following balance sheet has been prepared from the books of Pearl on 1-4-2018.

Liabilities	Rs.	Assets	Rs.
Capital	2,26,000	Buildings	1,00,000
Sundry creditors:		Furniture	10,000
Maya A/c	24,000	Stock	20,000
		Sundry debtors
		Peter	50,000
		Cash in hand	15,000
		Cash at bank	55,000
	2,50,000		2,50,000

During the year the following transactions took place.
(a) Wages paid by cash Rs. 2,000
(b) Salaries paid by cheque Rs. 5,000
(c) Cash purchases made for Rs. 3,000
(d) Good purchased on credit from Yazhini Rs. 15,000
(e) Goods sold on credit to Jothi Rs. 25,000
(f) Payment made to Yazhini through NEFT Rs. 5,000
(g) Cash received from Peter Rs. 30,000
(h) Cash sales made for Rs. 6,000
(i) Depreciate buildings at 10%
(j) Closing stock on 31.03.2019 Rs. 15,000
You are required to prepare trading and profit and loss account for the year ended 31-03-2019 and a balance sheet as on that date using Tally.

23.

Record the following transactions in Tally.
1. Robert commenced a transport business with a capital of Rs.1,00,000
2. An account was opened with State Bank of India and deposited Rs. 30,000
3. Purchased furniture by paying cash Rs. 10,000
4. Goods purchased on credit from Mohaideen for Rs. 20,000
5. Cash sales made for Rs. 8,000
6. Goods purchased from Rathinam for Rs. 5,000 and money deposited in CDM
7. Goods sold to Rony on credit for Rs. 60,000
8. Money withdrawn from bank for office use Rs. 9,000
9. Part payment of Rs.10,000 made to Mohaideen by cheque
10. Rony made part payment of Rs. 5,000 by cash
11. Salaries paid to staff through ECS Rs. 6,000
12. Wages of Rs. 3,000 paid by cash
13. Purchased stationery from Pandian Ltd. on credit Rs. 4,000

24.

Raghu and Sam are partners in a firm sharing profits and losses in the ratio of 3:2. Their balance sheet as on 31^st March, 2017 is as follows:

Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Capital accounts:			Machinery		30,000
Raghu	40,000		Furniture		10,000
Sam	30,000	70,000	Stock		10,000
Sundry creditors		30,000	Debtors	21,000
			Less: Provision for
			doubtful debts	1,000	20,000
			Bank		30,000
		1,00,000			1,00,000

Prakash is admitted on 1.4.2017 subject to the following conditions:
(a) He has to bring a capital of Rs. 10,000
(b) Machinery is valued at Rs. 24,000
(c) Furniture to be depreciated by Rs. 3,000
(d) Provision for doubtful debts should be increased to Rs. 3,000
(e) Unrecorded trade receivables of Rs. 1,000 would be brought into books now
Pass necessary journal entries and prepare revaluation account and capital account of partners after admission.

25.

Durai and Velan entered into a partnership agreement on 1st April 2018, Durai contributing Rs. 25,000 and Velan Rs. 30,000 as capital. The agreement provided that:
(a) Profits and losses to be shared in the ratio 2:3 as between Durai and Velan.
(b) Partners to be entitled to interest on capital @ 5% p.a.
(c) Interest on drawings to be charged Durai: Rs. 300 Velan: Rs. 450
(d) Durai to receive a salary of Rs. 5,000 for the year, and
(e) Velan to receive a commission of Rs. 2,000
During the year, the firm made a profit of Rs. 20,000 before adjustment of interest, salary and commission. Prepare the Profit and loss appropriation account.

26.

Bragathish and Naresh are partners who maintain their capital accounts under fixed capital method. From the following particulars, prepare capital accounts of partners.

Particulars	Bragathish Rs.	Naresh Rs.
Capital on 1^stApril 2018	4,00,000	6,00,000
Current account on 1^st April 2018	20,000(Cr.)	15,000(Dr.)
Additional capital introduced during the	50,000	Nil
Drawings made during the year	45,000	60,000
Interest on drawings	2,000	3,000
Share of profit for the year	80,000	1,20,000
Interest on capital	20,000	30,000
Commission	17,000	Nil
Salary	Nil	38,000

27.

From the following Receipts and Payment account of Yercaud Youth Association, prepare Income and expenditure account for the year ended 31^st March, 2019 and the balance sheet as on that date.

Dr. Receipts and Payments Account for the year ended 31^st March, 2019 Cr
Receipts	Rs.	Payments	Rs.
To Balance b/d		By Salary	14,000
Cash in hand	9,600	By Office expenses	7,200
To Government grants		By Books purchased	15,000
for purchase of books	10,000	By Stationery purchased	1,800
To Subscription	24,800	By Newspaper purchased	2,100
To Admission fees	2,000	By Prizes awarded	5,000
To Prize fund receipts	6,000	By Balance c/d
To Bank interest	1,500	Cash in hand	9,900
To Sale of newspapers	1,100
	55,000		55,000

Additional information:
(i) Opening capital fund Rs. 20,000.
(ii) Stock of books on 1.4.2018 Rs. 9,200.
(iii) Subscription due but not received Rs. 1,700.
(iv) Stock of stationery on 1.4.2018 Rs. 1,200 and stock of stationery on 31.3.2019, Rs. 2,000

28.

From the following receipts and payment account, prepare income and expenditure account of Kumbakonam Basket Ball Association for the year ended 31^st March, 2018

Receipts	Rs.	Rs.	Payments	Rs.	Rs.
To Balance b/d			By Rent of ground paid		12,000
Cash in hand	23,000		By Printing charges		5,000
Cash at bank	12,000	35,000	By Bank charges		1,000
To Rent of hall received		6,000	By Insurance for building		2,000
To Subscription received		9,000	By Tournament expenses		16,000
To Life membership fees		7,000	By Audit fees		3,000
To Locker rent received		2,000	By Sports materials purchased		4,000
			By Balance c/d
			Cash in hand	2,000
			Cash at bank	14,000	16,000
		59,000			59,000

29.

Selvam does not keep his books under double entry system. From the following information prepare trading and Profit and loss A/c and Balance Sheet as on 31-12-2018

Particulars	1-1-2018 Rs.	31-12-2018 Rs.
Machinery	60,000	60,000
Cash at bank	25,000	33,000
Sundry debtors	70,000	1,00,000
Stock	45,000	22,000
Bills receivable	20,000	38,000
Bank loan	45,000	45,000
Sundry creditors	25,000	21,000

Particulars	Rs.	Particulars	Rs.
Cash sales	20,000	Credit sales	1,80,000
Cash purchases	8,000	Credit purchases	52,000
Wages	6,000	Salaries	23,500
Advertisement	7,000	Interest on bank loan	4,500
Drawings	60,000	Additional capital	21,000

Adjustments:
Write off depreciation of 10% on machinery. Create a reserve of 1% on debtors for doubtful debts.

30.

Bharathi does not maintain her books of accounts under double entry system. From the following details prepare trading and profit and loss account for the year ending 31^st March, 2019 and a balance sheet as on that date.

**Dr. Cash Book Cr.**
Receipts	Rs.	Payments	Rs.
To balance b/d	32,000	By Purchases A/c	56,000
To Sales A/c	1,60,000	By Creditors A/c	80,000
To Debtors A/c	1,20,000	By General expenses A/c	24,000
		By Wages A/c	10,000
		By Balance c/d	1,42,000
	3,12,000		3,12,000

Other Information:

Particulars	1.4.2018 Rs.	31.3.2019 Rs.
Stock of goods	40,000	60,000
Debtors	38,000	?
Creditors	58,000	52,000
Machinery	1,70,000	1,70,000

Additional information:	Rs
(i) Credit purchases	74,000
(ii) Credit sales	1,40,000
(iii) Opening capital	2,22,000
(iv) Depreciate machinery by 10% p.a.

Generic 3

5 x 3 = 15

31.

Rajan Ltd. purchased machinery of Rs.6,00,000 from Jagan Traders. It issued equity shares of Rs.10 each fully paid in satisfaction of their claim. What entries will be made if such issue is made:
(a) at par and
(b) at a premium of 50%.

32.

Sara Company issues 10,000 equity shares of Rs.10 each payable fully on application. Pass journal entries if the shares are issued
(i) at par
(ii) at a premium of Rs.2 per share.

33.

From the following Balance Sheet of Sundaram Ltd. calculate proprietary ratio:

**Balance Sheet of Sundaram Ltd. as on 31.3.2019**
Particulars	Amount Rs.
I. EQUITY AND LIABILITIES
1. Shareholders' funds
(a) Share capital
(i) Equity share capital	2,50,000
(ii) Preference share capital	1,50,000
(b) Reserves and surplus	50,000
2. Non-current liabilities
Long-term borrowings	-
3. Current liabilities
Trade payables	1,50,000
Total	6,00,000
II ASSETS
1. Non-current assets
(a) Fixed assets	4,60,000
(b) Non-current investments	1,00,000
2. Current assets
Cash and Cash equivalents	40,000
Total	6,00,000

34.

From the following information, find out the value of goodwill by capitalisation method:
(i) Average profit Rs. 20,000
(ii) Normal rate of return 10%
(iii) Capital employed Rs. 1,50,000

35.

A partnership firm earned net profits during the last three years as follows:
2016 : Rs. 20,000; 2017 : Rs. 17,000 and 2018 : Rs. 23,000
The capital investment of the firm throughout the above mentioned period has been Rs. 80,000. Having regard to the risk involved, 15% is considered to be a fair return on capital employed in the business. Calculate the value of goodwill on the basis of 2 years purchase of super profit.

Generic 2

3 x 2 = 6

36.

From the following particulars, calculate the trend percentages of Kala Ltd.

Particulars	Rs.in thousands
	2015-16	2016-17	2017-18
Revenue from operations	400	500	600
Other income	100	150	200
Expenses	200	290	350

37.

From the following particulars, prepare comparative income statement of Arul Ltd.

Particulars	2015-16 Rs.	2016-17 Rs.
Revenue from operations	50,000	60,000
Other income	10,000	30,000
Expenses	40,000	50,000

38.

From the following information of Geetha Ltd., calculate fixed assets turnover ratio
(i) Revenue from operations during the year were Rs. 55,00,000.
(ii) Fixed assets at the end of the year Rs. 5,00,000.

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Answers Key:

Generic 5

30 x 5 = 150

Quick ratio = \(\frac { Quick\quad assets }{ Current\quad liabilities } \)
Quick assets = Current assets - Inventories - Prepaid expenses
= Rs.4,00,000 + Rs.70,000 - Rs.30,000 = Rs.3,00,000
∴ Quick ratio = \(\frac { 3,00,000 }{ 2,00,000 } \) = 1.5:1

Return on Investment (ROI) = \(\frac { Net\quad profit\quad before\quad interest\quad and\quad tax }{ Capital\quad employed } \)
Capital employed = Share capital + Reserves and surplus + Long term borrowings
= 2,90,000 + 60,000 + 50,000 = Rs.3,90,000
∴ Return on Investment = \(\frac { 50,000 }{ 4,00,000 } \) x 100 = 12.5%

In the books of Y company Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (10,000 x 10)	Dr.	1,00,000
To Equity share application A/c			1,00,000
(Application money received)
Equity share application A/c	Dr.	1,00,000
To Equity share capital A/c			1,00,000
(Application money transferred to share capitals)

(ii) Issued at a premium

In the books of Y company Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (10,000 x 12)	Dr.	1,20,000
To Equity share application A/c			1,20,000
(Application money received)
Equity share application A/c	Dr.	1,20,000
To Equity share capital A/c (10,000 x 10)			1,00,000
To Securities premium A/c (10,000 x 2)			20,000
(Application money transferred)

Trend analysis for Malar Ltd
Particular	Rs.In lakshs			Trends percentage
Particular	2015-16	2016-17	2017-18	2015-16	2016-17	2017-18
Revenue from operations	100	120	160	100	120	160
Add: other income	20	24	20	100	120	100
Total revenue	120	144	180	100	120	150
Less: Expenses	20	14	40	100	70	200
Profit before tax	100	130	140	100	130	140
Less: Income tax (30 %)	30	39	42	100	130	140
Profit after tax	70	91	98	100	130	140

Common-size income statement of Vijay Ltd for the year ended 3st March 2017 and 31st March 2018

Particulars	Absolute amount 2016-17	Percentage of revenue from operations for 2016-17	Absolute amount 2017-18	Percentage of revenue from operations for 2017-18
Particulars	Rs.	Rs.	Rs.
Revenue from operations	4,00,000	100	6,00,000	100
Add: other income	50,000	12.50	1,50,000	25
Total revenue	4,50,000	112.50	7,50,000	125
Less: Expenses	5,00,000	125	3,00,000	50
Profit / Loss before tax	- 50,000	- 12.50	10,50,000	125
Less: Income Tax (40 %)	-	-	4,20,000	70
Profit before tax	- 50,000	- 12.50	6,30,000	55

Dr Revaluation Account Cr
Particulars	Rs	Rs	Particulars	Rs
To Stock A/c		6,000	By Buildings A/c	20,000
Plant and Machinery A/c		10,000
To Provision for doubtful debts A/c		1,000
To Profit on revaluation A/c
Selvam	1,500
Saravanan	1,000
1,000	500	3,000

		20,000		20,000

Dr Capital Account Cr
Particulars	Selvam Rs	Saravanan Rs	Santhosh	Particulars	Selvam Rs	Saravanan Rs	Santhosh Rs
To Bank A/c	21,500	-	-	By Balanced b/d	80,000	50,000	40,000
To Selvam's				By Revaluation
loan A/c	90,000	-	-	A/c	1,500	1,000	500
				By profit and
To Balance C/d	-	71,000	50,500	loss A/c	15,000	10,000	5,000
				By Goodwill	15,000	10,000	5,000

	1,11,500	71,000	50,500		1,11,500	71,000	50,500
				By Balance b/d		71,000	50,500

Dr Bank Account Cr
Particulars	Rs	Particulars	Rs
To Balance b/d	35,000	By Selvam A/c	21,500
		By Balance c/d	13,500
	35,000		35,000

Balance sheet as on 1.1.2018
Liabilities	Rs	Rs	Assets	Rs	Rs
Bills payable		15,000	Cash in hand		3,000
Sundry creditors		25,000	Cash at bank		13,500
Selvam's loan A/c		90,000	Bills receivable		11,000
Capital Accounts			Book debts	18,000
Saravanan	71,000		Less: provision for bad debts	1,000	17,000
Santhosh	50,500	1,21,500
			Stock	36,000
			Less:Decreased	6,000	30,000
			Furniture		7,000
			Plant and Machinery	50,000
			Less : depreciation	10,000	40,000

			Building	80,000
			Add: Appreciation	20,000	1,00,000
			Good will		30,000
		2,51,500			51,500

Journal Entries in the Books of Preeti Ltd.
Particulars		Debit Rs.	Credit Rs.
Bank A/c (1,00,000 x 4)	Dr	4,00,000
To Equity shares application A/c			4,00,000
(Application money received)
Equity share application A/c (50000 x 4)	Dr	2,00,000
To Equity share capital A/c			2,00,000
(Application money transferred to share capital A/c)
Equity share application A/c (50000 x 4)	Dr	2,00,000
To Equity share allotment A/c (50000 x 3)			1,50,000
To Calls in advance A/c			50,000
(balancing figure)
(Excess amount adjusted towards allotment and call)
Share Allotment A/c (50,000 x 3)	Dr	1,50,000
To Share Capital A/c			1,50,000
(Allotment money due)
Equity share first call A/c (50,000 x 1)		50,000
To Equity share capital A/c			50,000
(First call money due)
Bank A/c	Dr	50,000
Calls in advance A/c	Dr	50,000
To Equity share first call A/c			1,00,000
(First call money received and calls in advance adjusted)
Equity share second and final
call A/c (50,000 x 2)		1,00,000
To Equity share capital A/c			1,00,000
(Second and final call money due)
Bank A/c (50,000 x 2)	Dr	1,00,000
To Equity share second and final call A/c			1,00,000
(Second and final call money received)

Dr Revaluation Account Cr
Particulars		Rs.	Particulars	Rs.
To Stock A/c		4,000	By Land and Buildings A/c	40,000
To Provision for doubtful debts A/c		1,400
To Outstanding expenses A/c		2,600
To Profit on revaluation transferred to :
Valluvan's capital A/c	19,200
Kambans capital A/c	12,800	32,000
		40,000		40,000

Dr Capital Account Cr
Particulars	Ragu Rs.	Sam Rs.	Particulars	Ragu Rs.	Sam Rs.
To Balance c/d	1,09,200	92,800	By Balance b/d	90,000	80,000
	34,000	26,000	By Revaluation A/c	19,200	12,800
	1,09,000	92,000		1,09,000	92,000
			By Balance b/d	1,09,000	92,000

Balance sheet ofValluvan and Kamban as on 1st January, 2019
Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Outstanding expenses		2,600	Cash in hand		4,000
Sundry creditors		96,000	Sundry Debtors	56,000
Bills payable		34,000	Less: Provision for doubtful debts	1,400	54,600
Capital Accounts:			Stock	40,000
Vallauvan	1,09,200		Loss: Reduction	4,000	36,000
Kamban	92,800	2,02,000	Plant & Machinery		80,000
			Land and buildings	1,20,000
			Add: Appreciation	40,000	1,60,000
		3,34,600			3,34,600

(i) Interest on capital will not allowed as the partnership deed is silent as to the interest on capital.
(ii) Profit before interest on capital is 27,000
Computation of interest on capital:
Anusha: Rs.2,00,000 x \(\frac{3}{100}\) = Rs.6,000
Barathi: Rs.1,00,000 x \(\frac{3}{100}\) = Rs.3,000
Computation of interest on capital:
Anusha: Rs.2,00,000 x \(\frac{5}{100}\) = Rs.10,000
Barathi: Rs.1,00,000 x \(\frac{5}{100}\) = Rs.5,000

10.

Journal entries
Date	Particulars	Debit Rs	Credit Rs
2018	General reserve A/c	40,000
June 1	To Thangamuthu's capital A/c (40,000 x 3/8)		15,000
	To Anaimuthu's capital A/c (40,000 x 3/8)		15,000
	To Vairamuthu's capital A/c (40,000 x 2/8)		10,000
	(General reserve transferred Partner's capital account

11.

Eswari :  Ranikumari : Chitra
Old ratio = 7 : 5 : -
Old share = \(\frac{7}{12}\) :    \(\frac{5}{12}\) : -
Surrender = \(\frac { 7 }{ 12 } \times \frac { 1 }{ 7 } \) : \(\frac { 5 }{ 12 } \times \frac { 1 }{ 5 } \) : -
=   \(\frac{1}{12}\) : \(\frac{1}{12}\) : -
New ratio= Old share - Surrender
=   \(\frac { 7 }{ 12 } -\frac { 1 }{ 12 } \) : \(\frac { 5 }{ 12 } -\frac { 1 }{ 5 } \) : -
= \(\frac{6}{12}\) :   \(\frac{4}{12}\) :   \(\frac{2}{12}\)
= 6 : 4 : 2
New ratio = 3 : 2 : 1
Sacrificing ratio = 1 : 1

12.

Calculation of opening capital

Statement of affairs as on 1.4.2017
Liabilities	Rs.	Assets	Rs.
Sundry creditors	37,500	Furniture	2,500
Opening capital (B/F)	58,750	Cash	6,250
		Sundry Debtors	62,500
		Stock	25,000
	96,250		96,250

Dr. Total Debtors account Cr.
Liabilities	Rs.	Particulars	Rs.
To Balance b/d	62,500	By Cash received	1,35,000
To Credit Sales (B/F)	1,66,250	By Discount allowed	2,500
		By Sales returns	3,750
		By Balance c/d	87,500
	2,28,750		2,28,750

Dr. Total Creditors account Cr.
Liabilities	Rs.	Particulars	Rs.
To Cash paid	1,12,500	By Balance b/d	37,500
To Discount received	3,750	By Credit purchases (B/F)	1,23,750
To Purchase returns	1,250
To Balance c/d	43,750
	1,61,250		1,61,250

Trading and Profit and loss account for the year ended 31.3.2018
Particulars	Rs.	Rs.	Particulars	Rs.	Rs.
To Opening stock		25,000	By Sales	1,66,250
To Purchases	1,23,750		Less: Sales returns	3,750	1,62,500
Less: Purchase returns	1,250	1,22,500
			By Closing stock		12,500
To Gross profit c/d		27,500
		1,75,000			1,75,000
To Discount allowed		2,500	By Gross profits b/d		27,500
To Sundry expenses		8,750	By Discount received		3,750
To Depreciation		125
To Net profit		19,875
(Transferred to capital a/c)		31,250			31,250

Balance sheet as on 31.3.2018
Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Capital	58,750		Furniture	2,500
Add: Net profit	19,875		Less: Depreciation	125	2,375
	78,625		Cash		10,000
Less: Drawings	10,000	68,625	Sundry debtors		87,500
Sundry creditors		43,750	Closing stock		12,500
		1,12,375			1,12,375

13.

Dr Total Debtors account Cr
Particulars	Rs.	Particulars	Rs.
To Cash paid	22,500	By Balance b/d	75,000
To Discount received	15,000	By Credit purchase (B/F)	60,000
To Purchase return	7,500
To Balance c/d	90,000
	1,35,000		1,35,000

14.

Dr Capital Account Cr
Date	Particulars	Kannagi Rs.	Vasugi Rs.	Date	Particulars	Kannagi Rs.	Vasugi Rs.
31.3.2019	To Balance c/d	1,00,000	60,000	1.4.2018	To Balance b/d	1,00,000	60,000

		1,00,000	60,000			1,00,000	60,000

Dr Current Account Cr
Particulars	Kannagi Rs.	Vasugi Rs.	Particulars	Kannagi Rs.	Vasugi Rs.
To Balance b/d	3,000	-	BY Balance b/d	-	2,000
To Drawings	8,000	5,000	By Interest on capital	5,000	3,000
To Interest on drawings	240	150	By Share of profit	12,000	10,000
To Balance c/d (Balancing figure)	9,760	9,850	By Salary	4,000	-
	21,000	15,000		21,000	15,000
			By Balance c/d	9,760	9,850

15.

Total capitalised value of the average profit
\(=\frac{Average\ profit}{Normal\ rate\ of \ return}\times 100\)
\(=\frac{60,000}{10}\times100\)
= Rs.6,00,000
Goodwill= Total capitalised value of the average profit - Capital employed
= 6,00,000 - 5,60,000
= Rs. 40,000

16.

Average profit \(=\frac{Total\ profit}{Number\ of\ years}\)
\(=\frac{20,000+25,000+24,000+23,000}{4}\)
\(\frac{92,000}{4}\)
Average profit =Rs.23,000
Average profit before adjusting fair remuneration of the partner = Rs.23,000
Less:
Fair remuneration of partners =3,000
_____
Average profit =20,000
_____
Goodwill = Average profit x Number of years of purchase
=20,000x3= Rs. 60,000

17.

Dr In the books of Trichy Rotary club Income and Expenditure Account for the year ended 31^st March, 201 Cr
Expenditure	Rs	Income	Rs
To Rent	2,800	By Dividend received	27,600
To Secretary's honorarium	15,000	By Sale of old newspaper	3,000
To Postage	1,700	By Member's subscription	31,000
To General Expenses	4,350	By Locker rent	8,000
To Printing and stationery	45,000	By Interest on investment
To Audit fees	5,000	By Profit on sale of
		furniture (5000-4000)
		By Deficit (excess of
		expenditure over income)
	73,850		73,850

18.

Dr Income and Expenditure Account for the year ending on March 31, 2015Cr
Income	Rs.	Rs.
By Subscriptions
received for 2014-15	30,000
Add: Outstanding for
2014-15	17,000
Add;	47,000
Received in advance
For 2014-15
	4,000	51,000

Balance sheet as on March31,2015
Liabilities	Rs	Asets	Rs	Rs
Subscription received in		Subscription
advance for 2014-15	5,000	outstanding
		2013-14	1,500
		2014-15	17,000	18,500

19.

Dr Revaluation A/c Dr
Particulars	Rs.	Rs.	Particulars	Rs.
To Stock A/c		5,000	By Land A/c	20,000
To Provision for doubtful debts A/c		3,000
To Profit on revaluation transferred to
Amal's capital A/c	7,000
Vimal's capital A/c	5,000	12,000
		20,000		20,000

Dr Capital A/c Dr
Particulars	Amal Rs.	Vimal Rs.	Nirmal Rs.	Particulars	Amal Rs.	Vimal Rs.	Nirmal Rs.
To Balance c/d	91,000	65,000	30,000	By Balance b/d	70,000	50,000	-
				By Bank A/c	-	-	30,000
				By Revaluation A/c	7,000	5,000	-
	91,000	65,000	30,000		91,000	65,000	30,000
				By Balance b/d	91,000	65,000	30,000

20.

Dr Revaluation Account Cr
Particulars	Rs	Rs	Particulars	Rs
To Stock A/c		5,000	By Buildings A/c	20,000
To Profit on revaluation
transferred to
Vijayan's capital A/c
(15,000 \(\times\) 5/12)	7,000
Sudhan's capital A/c
(15,000 \(\times\) 4/12)	5,000
Suman's capital A/c	3,000	15,000
(15,000 \(\times\) 3/12)
		20,000		20,000

Dr Capital Account Cr
Particulars	Vijayan Rs	.Sudhan Rs	Suman Rs	Particulars	Vijayan Rs	Sudhan Rs	Suman Rs
To Suman's				By Balance b/d	70,000	50,000	30,000
capital A/c	4,200	3,000	-	By Gene
To Suman's				reserve	8,400	6,000	3,600
To Balance c/d	81,200	58,000	-	A/c (profit)	7,000	5,000	3,000
				By Vijayan's
				capital A/c			4,200
				BySudhan's
				capital A/c			3,000

	85,400	61,000	43,800		85,400	61,000	43,800
				By Balanced b/d	81,200	58,000	-

Balance Sheet as on 31st March 2019
Liabilities	Rs	Rs	Assets	Rs	Rs
Capital accounts			Building	80,000
Vijayan	81,200		Add: Appreciation	20,000	1,00,000
Sudhan	58,000	1,39,200	Stock	45,000
			Less: Deprec	5,000	40,000
Suman's Executor's A/c		43,800	Debtors		25.000
		17,000	Cash at bank		20,000
					15,000

		2,00,000			2,00,000

Working Notes:
(i) Profit sharing ratio = capital ratio = 70,000 : 50,000 : 30,000 that is 7 : 5 : 3
Gaining ratio between Vijayan and Sudhan = old profit sharing ratio = 7: 5
(ii) Calculation of current year's profit
Average profit = \(\cfrac { 40,000+50,000+30,000 }{ 3 } =\cfrac { 1,20,000 }{ 3 } =40,000\)

Current year's profit = \(40,000\times \cfrac { 3 }{ 12 } =10,000\)
Suman's Share of current year's profit = \(10,000\times \cfrac { 3 }{ 15 } =2,000\)
(iii) Suman's Share of good will = \(36,000\times \cfrac { 3 }{ 15 } =7,200\)
It is to be borne by Vijayan and Sudhan in the gaining ratio 7 : 5

21.

Journal entries
Date	Particulars		Debit Rs.	Credit Rs.
2019 March 31	Revaluation A/c	Dr.	13,000
	To Machinery A/c			10,000
	To Office equipment A/c			2,000
	To Provision for doubtful debts A/c			1,000
	(Depreciation on machinery and furniture andprovision made for doubtful debts adjusted)
"	Investments A/c	Dr.	25,000
	To Revaluation A/c			25,000
	(Unrecorded investments brought into accounts)
"	Revaluation A/c	Dr.	12,500
	To John’s capital A/c			4,000
	To James’s capital A/c			4,000
	To Raja’s capital A/c			4,000
	(Profit on revaluation transferred to capital accounts)

Dr. Revaluation Account Cr.
Particulars	Rs.	Rs.	Particulars	Rs.
To Machinery A/c		10,000	By Investments A/c	25,000
To Office equipment A/c		2,000
To Provision for doubtful debts		1,000
To Profit on revaluation transferred to
John’s Capital A/c (1/3)	4,000
James Capital A/c (1/3)	4,000
Raja’s Capital A/c (1/3)	4,000	12,000
		25,000		25,000

22.

Following steps are to be followed to enter the transactions in Tally ERP 9
1. To create company:
Company Info > Create Company
Type the Name as Peral and keep all other fields as they are and choose 'Yes' to accept.
2. To maintain accounts only:
Gateway of Tally > F11 Accounting Features > General > Maintain accounts only: Yes > Accept Yes
3. To create ledger accounts with opening balances:
Gateway of Tally > Masters > Accounts Info> Ledgers> Single Ledger> Create

Creation of	Name	Under	Opening balance	Accept
Bright’s Capital A/c	Bright’s Capital A/c	Capital Account	2,26,000	Yes
Ramesh A/c (Sundry creditors)	Ramesh A/c	Sundry Creditors	24,000	Yes
Machinery A/c	Machinery A/c	Fixed Assets	1,00,000	Yes
Furnitures A/c	Furnitures A/c	Fixed Assets	10,000	Yes
Opening stock	Opening stock	Stock-in -Hand	20,000	Yes
Shankar A/c (Sundry debtors)	Shankar A/c	Sundry Debtors	50,000	Yes
Cash in hand	Cash	Cash-in-Hand	15,000	Yes
Cast at bank	Bank	Bank Accounts	55,000	Yes

Note:
Cash account need not be created as it is a default ledger. Only the opening balance has to be recorded by altering the cash account.
To record the opening balance of Cash
Gateway of Tally > Masters > Accounts Info > Ledgers > Single Ledger > Alter

After creating the ledgers and recording the opening balances of ledger accounts the balance sheet of Bright is shown as in the following figure:

4. To create ledger accounts for transactions

Creation of	Name	Under	Accept
Wages A/c	Wages A/c	Direct Expenses	Yes
Salaries A/c	Rent A/c	Indirect Expenses	Yes
Purchases A/c	Purchases A/c	Purchases Account	Yes
Senthamarai A/c	Senthamarai A/c	Sundry Creditors A/c	Yes
Sales A/c	Sales A/c	Sales Account	Yes
Pushparaj A/c	Pushparaj A/c	Sundry Debtors A/c	Yes
Depreciation A/c	Depreciation A/c	Indirect Expenses	Yes

5. To enter transactions through vouchers
Gateway of Tally > Transactions > Accounting Vouchers
Example: Wages of Rs. 2,000 paid by Cash
F5: Payment Voucher
Account: Cash
Particulars: Wages A/c
Amount: Rs. 2,000
Narration: Wages paid by cash
Accept: Yes
In the similar way, record the other transactions. Use Payment Voucher for Salaries paid and payment to Senthamarai.
Use Purchase Voucher for credit purchases from Senthamarai and cash purchases.
Use Sales Voucher for credit sales to Pushparaj and cash sales.
Use Receipt Voucher for cash received from Shankar.
Use Journal Voucher for depreciation.
To record closing stock:
Since maintain accounts only is set to 'Yes' and integrate accounts and inventory is set to "No" under accounting features. Stock has to be recorded manually. Hence the closing stock has to be recorded by altering the stock account and while entering the data of closing stock, the date of opening stock has to be entered. The following procedure is to be followed:
Gateway of Tally > Masters > Accounts Info > Ledgers > Single Ledger > Alter > Stock > Closing balance > Date (opening date) > Amount > Accept Yes

6. To view reports:
(i) To view Profit and Loss Account:
F10: A/c Reports > Profit & Loss A/c > Alt + F1 (detailed) (or)
Gateway of Tally > Report > Profit & Loss A/c > Alt + F1 (detailed)

(ii) To view Balance sheet:
F10: A/c Reports > Balance sheet > Alt + F1 (detailed) (or)
Gateway of Tally > Reports > Balance Sheet > Alt + F1 (detailed)

23.

Analysis of transactions, passing journal entries, identification of voucher type and group:
S.NO.	Particulars		Debit Rs.	Credit Rs.	Voucher type	Group
(1)	Cash A/c	Dr.	1,00,000		Receipt	Cash -in -Hand
	To Robert’s Capital A/c			1,00,000	Voucher	Capital Account
(2)	State Bank of India A/c	Dr.	30,000		Contra	Bank Accounts
	To Cash A/c			30,000	Voucher	Cash-in-Hand
(3)	Furniture A/c	Dr.	10,000		Payment	Fixed Assets
	To Cash A/c			10,000	Voucher	Cash-in-Hand
(4)	Purchases A/c	Dr.	20,000		Purchase	Purchase Accounts
	To Mohaideen A/c			20,000	Voucher	Sundry Creditors
(5)	Cash A/c	Dr.	8,000		Sales	Cash-in-Hand
	To Sales A/c			8,000	Voucher	Sales Accounts
(6)	Purchases A/c	Dr.	5,000		Purchase	Purchase Accounts
	To Cash A/c			5,000	Voucher	Cash-in-Hand
(7)	Rony A/c	Dr.	60,000		Sales	Sundry Debtors
	To Sales A/c			60,000	Voucher	Sales Accounts
(8)	Cash A/c	Dr.	9,000		Contra	Cash-in-Hand
	To Bank A/c			9,000	Voucher	Bank Accounts
(9)	Mohaideen A/c	Dr.	10,000		Payment	Sundry Creditors
	To Bank A/c			10,000	Voucher	Bank Accounts
(10)	Cash A/c	Dr.	5,000		Receipt	Cash -in -Hand
	To Arun A/c			5,000	Voucher	Sundry Debtors
(11)	Salaries A/c	Dr.	6,000		Payment	Indirect Expenses
	To Bank A/c			6,000	Voucher	Bank Accounts
(12)	Wages A/c	Dr.	3,000		Payment	Direct Expenses
	To Cash A/c			3,000	Voucher	Cash-in-Hand
(13)	Stationery A/c	Dr.	4,000		Journal	Indirect Expenses
	To Pandian Ltd. A/c			4,000	Voucher	Sundry Creditors

Following steps are to be followed to enter the transaction in Tally ERP 9
1. To create company
Company Info > Create Company
Type the Name as Robert and keep all other fields as they are and choose ‘Yes’ to accept.

2. To maintain accounts only
Gateway of Tally > F11 Accounting Features > General > Maintain accounts only: Yes > Accept> Yes

3. To Create ledger accounts
Gateway of Tally > Masters > Accounts Info > Ledgers > Single Ledger > Create

(i) To Create Devi's Capital A/c
Name: Devi's Capital A/c
Under Capital Account
Accept: Yes

(ii) To Create Indian Bank A/c
Name: Indian Bank A/c
Under: Bank Accounts
Accept: Yes

(iii) To Create Furniture A/c
Name: Furniture A/c
Under: Fixed Assets
Accept: Yes

(iv) To Create Purchases A/c
Name: Purchases A/c
Under: Purchase
Accept: Yes

(v) To Create Mohaideen A/c
Name: Mohaideen A/c
Under: Sundry Creditors
Accept: Yes

(vi) To Create Sales A/c
Name: Sales A/c
Under: Sales Account
Accept: Yes

(vii) To create Rony A/c
Name: Rony A/c
Under: Sundry Debtors
Accept: Yes

(viii) To create Salaries A/c
Name: Salaries A/c
Under: Indirect Expenses
Accept: Yes

(ix) To create Wages A/c
Name: Wages A/c
Under: Direct Expenses
Accept: Yes

(x) To create Stationery A/c
Name: Stationery A/c
Under: Indirect Expenses
Accept: Yes

(xi) To create Pandian Ltd. A/c
Name: Pandian Ltd. A/c
Under:Sundry Creditors
Accept: Yes

4. To enter transactions through vouchers
Gateway of Tally > Transactions > Accounting Vouchers
(i) Robert commenced a transport business with a capital of Rs. 1,00,000
F6: Receipt Voucher: Accounts: Cash
Particulars: Robert Capital A/c (Choose from List of Ledgers Accounts)
Enter the amount of Capital Rs. 1,00,000
Narration: Capital Introduced
Accept: Yes

(ii) An account was opened with State Bank of India and deposited Rs. 30,000
F4: Contra Voucher
Accounts: State Bank of India
Particulars: Cash
Amount: Rs. 30,000
Narration: Opened bank account in SBI
Accept: Yes

(iii) Purchased Furniture by paying cash Rs. 10,000
F5: Payment Vouchers
Account: Cash
Particulars: Furniture A/c
Amount: Rs. 15,000
Narration: Furniture bought by Cash
Accept: Yes

4 Goods purchased on credit from Mohaideen for Rs. 20,000
F9: Purchase voucher
Party A/c name: Mohaideen A/c
Particulars: Purchases A/c
Amount: Rs. 20,000
Narration: Goods purchased on
credit from Mohaideen
Accept Yes

(5) Cash sales made for Rs. 8,000
F8: Sales Voucher,
Account: Cash
Particulars: Sales A/c
Amount: Rs. 8,000
Narration: Cash Sales Mode
Accept: Yes

(6) Goods purchased from Rathinam for Rs. 5,000 and money deposited in CDM
F9: Purchase Voucher
Account: Bank
Particulars: Purchase A/c
Amount: Rs. 5,000
Narration: Goods Purchased

(vii) Goods sold to Rony on credit for Rs. 60,000
F8: Sales Voucher
Party: A/c Name: Rony A/c
Particulars: Sales A/c
Amount: Rs. 70,000
Narration: Goods sold on credit to Rony
Accept: Yes

(viii) Money withdrawn from bank for office use Rs. 9,000
F4: Contra Voucher
Account: Cash
Particulars: State Bank of India A/c
Amount: Rs. 9,000
Narration: Cash withdrawn from bank
Accept: Yes

(ix) Part payment of Rs 10,000 to Mohaideen by cheque
F5: Payment Vouchers
Account: State Bank of India
Particulars: Mohaideen A/c
Amount: Rs.10,000
Narration: Payment made to
Mohaideen by cheque
Accept Yes

(x) Rony made part payment of Rs. 5,000 by cash
F6: Receipt voucher
Account: Cash
Particulars: Rony A/c
Amount: Rs. 5,000
Narration: Cash received from Rony
Accept Yes.

(xi) Salaries Paid to Staff through ECS Rs. 6,000
F5: Payment Vouchers
Account: Indian Bank
Particulars: Salaries A/c
Amount: Rs 6,000
Narration: Salaries paid through ECS,
Accept: Yes

(xii) Wages of Rs. 3,000 paid by cash
F5: Payment voucher
Account: Cash
Particulars: Wages A/c
Amount: Rs. 3,000
Narration: Wages paid by cash
Accept Yes

(xiii) Purchased stationery from Pandian Ltd. on credit Rs.4,000
F7: Journal Voucher
Particulars: Computer A/c
Account: Muthu Ltd.
Amount: Rs. 4,000
Narration: Stationery bought on credit from Pandian Ltd.
Accept: Yes

To view reports
(i) To view Trial Balance
Gateway of Tally > Reports > Display > Trial Balance > Alt + F1 (detailed)

(ii) To view profit and loss Account
F10: A/c Reports > Profit & Loss A/c > Alt + F1 (detailed) or
Gateway of Tally > Reports > Profit & Loss A/c Alt + F1 (detailed)

(iii) To view Balance sheet
F10: A/c Reports > Balance sheet > Alt + F1 (detailed)
Gate of Tally > Reports > Balance Sheet > Alt + F1 (detailed)

(iv) To view Ratio Analysis
F10: A/c Reports > Ratio Analysis (or)
Gateway of Tally > Reports > Ratio Analysis

(v) To view Day book
F10: A/c Reports > Day Book > Alt + F1 (detailed (or)
Gateway of Tally > Reports > Display > Day Books > Alt + F1 (detailed)

24.

**Journal entries**
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
2017	Bank A/c	Dr.		10,000
April 1	To Prakash’s capital A.c (Capital brought by Prakash)				10,000
"	Revaluation A/c	Dr.		11,000
	To Machinery A/c				6,000
	To Furniture A/c				3,000
	To Provision for doubtful debts A/c (Depreciation on machinery and furniture and provision made for doubtful debts adjusted)				2,000
"	Trade receivables A/c		1,000
	To Revaluation A/c (Unrecorded trade receivables recorded)				1,000
"	Raghu’s capital A/c			6,000
	Sam’s capital A/c	Dr.		4,000
	To Revaluation A/c (Loss on revaluation transferred to capital accounts)				10,000

**Dr. Revaluation Account Cr.**
Particulars	Rs.	Particulars	Rs.	Rs.
To Machinery	6,000	By Trade receivables A/c		1,000
To Furniture	3,000	By Loss on revaluation transferred to
To Provision for bad debts	2,000	Raghu’s capital A/c (3/5)	6,000
		Sam’s capital A/c (2/5	4,000	10,000
	11,000			11,000

**Dr. Capital Account Cr.**
Particulars	Ragu Rs.	Sam Rs.	Praksh Rs.	Particulars	Ragu Rs.	Sam Rs.	Prakash Rs.
To Revaluation A	6,000	4,000	-	By Balance b/d	40,000	30,000	-
To Balance c/d	34,000	26,000	10,000	By Bank	-	-	10,000
	40,000	30,000	10,000		40,000	30,000	10,000
				By Balance b/d	34,000	26,000	10,000

25.

Dr. Profit and loss appropriation account for the year ended 31st March 2019 Cr.
Particulars	Rs.	Particulars	Rs.
To Interest on capital A/c:		By Profit and loss A/c	20,000
Durai (25,000 \(\times\) 5%)	1,250	By Interest on drawings A/c
Velan (30,000 \(\times\) 5%)	1,500	Durai	300
To Salary to Durai A/c	5,000	Velan	450
To Commission to Velan A/c	2,000
To Partners’ capital A/c (profit transferred)
Durai (11,000 \(\times\) 2/5)	4,400
Velan (11,000 \(\times\) 3/5)	6,600	11,000
		20,750	20,750

26.

**Dr. Partners’ Capital Account Cr**
Particulars	Bragathish Rs.	Naresh Rs.	Particulars	Bragathish Rs.	Naresh Rs.
To Balance c/d	4,50,000	6,00,000	By Balance b/d	4,00,000	6,00,000
			By Bank A/c	50,000	-
			(Additional capital)
	4,50,000	6,00,000		4,50,000	6,00,000
			By Balance b/d	4,50,000	6,00,000

**Dr. Partners’ Current Account Cr**
Particulars	Bragathish Rs.	Naresh Rs.	Particulars	Bragathish Rs.	Naresh Rs.
To Balance b/d	-	15,000	By Balance b/d	20,000	-
			By Profit and loss
To Drawings A/c	45,000	60,000
			appropriation A/c	80,000	1,20,000
To Interest on			(share of profi
	2,000	3,000
To Balance c/d	90,000	1,10,000	By Interest on capita A/c	20,000	30,000
			By Commission A/c	17,000	-
			By Salary A/c	-	38,000

	1,37,000	1,88,000		1,37,000	1,88,000
			By Balance b	90,000	1,10,000

27.

Dr Income and Expenditure Account for the year ended 31^st March, 2019 Cr
Expenditure	Rs	Rs	Income	Rs	Rs
To Salary		14,000	By Subscription	24,800
To Office expenses		7,200	Add: Subscription
To Stationery	1,800		not received	1,700	26,500
Add: Opening stock	1200		By Admission fees		2,000
	3,000		By Bank interest
Less: Closing stock	2000	1,000	By Sale of		1,500
To Newspaper purchased		2,100	newspapers		1,100
To Prizes awarded		5,000	By Government
To Excess of income over		11,800	grants		10,000
expenditure (surplus)
		41,100			41,100

Balance sheet as on 31^st March, 2018
Liabilities	Rs	Rs	Assets	Rs	Rs
Capital fund	20,000		Books: Purchased	15,000
Add: Excess of income over			Add: Opening stock	9,200	24,200
expenditure (surplus	11,800	31,800	Cash in hand		9,900
Prize fund receipts		6,000	Stock of stationery		2,000
			Subscription recurred		1,700
		37,800			37,800

28.

kumbakonam basketball association
Dr Income Expenditure A/c for the year ended 31^st March, 2018 Cr
Expenditure	Rs	Income	Rs
To Rent of ground	12,000	By Rent of hall received	6,000
To Printing Charges	5,000	By Subscription received	9,000
To Bank charges	1,000	By Locker rent received	2,000
To Tournament expenses	16,000	By Deficit	26,000
To Audit fees	3,000	(Excess of expenditure over income)
To Sports materials purchased	4,000
To Insurance for building	2,000
	43,000		43,000

29.

In the books of selvam Statement of affairs as on
1^st January 2018
Liabilities	Rs.	Assets	Rs.
Bank Loan	45,000	Machinery	60,000
Sundry creditors	25,000	Cash at bank	25,000
Opening capital	1,50,000	Sundry debtors	70,000
(Balancing figure)		Stock	45,000
		Bills receivable	20,000
	2,20,000		2,20,000

**Dr Bills receivable account Cr**
Particulars	Rs.	Rs.	Assets	Rs.	Rs.
To Opening stock		45,000	By Sales
To Purchase			Cash	20,000
Cash	8,000		Credit	1,80,000	2,00,000
Credit	52,000	60,000	By Closing stock		22,000
To Wages		6,000
To Gross profit c/d		1,11,000
		2,22,000			2,22,000
To Advertisement		7,000	By Gross profit b/d		1,11,000
To Salaries		23,500
To Depreciation 10%		6,000
To Reserve on debtors 1 %		1,000
To Interest on bank loan		4,500
To Net profit transfered to capital alc		69,000
		1,11,000			1,11,000

**Balance sheet as on 31st December 2018**
Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Bank loan		45,000	Machinery	60,000
Sundry creditors		21,000	Less: Depreciation 10%	6,000	54,000
Capital	1,50,000		Cash at bank		33,000
Add: Net profit	69,000		Sundry debtors	1,00,000
	2,19,000		Less: Reserve for doubtful		99,000
Add: Additional			debts	1,000
capital	21,000		Closing stock		22,000
	2,40,000		Bills receivable		38,000
Less: Drawings	60,000	1,80,000
		2,46,000			2,46,000

30.

Dr. In the books of Bharathi
Total debtors account Cr.
Particulars	Rs.	Particulars	Rs.
To Balance b/d	38,000	By Cash A/c (received)	1,20,000
To Sales A/c (credit)	1,40,000	By Balance c/d (balancing figure)	58,000
	1,78,000		1,78,000
To Balance b/d	58,000

**Dr. Trading and Profit and Loss Account for the year ended 31st March, 2019 Cr.**
Particulars		Rs.	Particulars		Rs.
To Opening stock		40,000	By Sales
To Purchases			Cash	1,60,000
Cash	56,000		Credit	1,40,000	3,00,000
Credit	74,000	1,30,000	By Closing stock		60,000
To Wages		10,000
To Gross profit c/d		1,80,000
		3,60,000			3,60,000
To General expenses		24,000	By Gross profit b/d		1,80,000
To Depreciation on machinery		17,000
To Net profit transferred to capital a/c		1,39,000
		1,80,000			1,80,000

**Balance Sheet as on 31st March, 2019**
Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Capital	2,22,000		Cash		1,42,000
Add: Net profit	1,39,000	3,61,000	Stock of goods		60,000
Creditors		52,000	Debtors		58,000
			Machinery	1,70,000
			Less: Depreciation	17,000	1,53,000
		4,13,000			4,13,000

Generic 3

5 x 3 = 15

31.

(a) When shares are issued at par:

In the books of Rajan Ltd Journal entries
Particulars		Debit Rs.	Credit Rs.
Machinery A/c	Dr.	6,00,000
To Jagan Traders A/c			6,00,000
(Purchase of machinery)
Jagan Traders A/c	Dr.	6,00,000
To Equity share capital A/c			6,00,000
(Issue of 60,000 shares of Rs.10 each fully paid)

(b) When shares are issued at a premium of 50%

Particulars		Debit Rs.	Credit Rs.
Machinery A/c	Dr.	6,00,000
To Jagan Traders A/c			6,00,000
(Purchase of machinery)
Jagan Traders A/c	Dr	6,00,000
To Equity share capital A/c (40,000 × 10)			4,00,000
To Securities premium A/c (40,000 × 5)			2,00,000
(Issue of 40,000 shares of Rs.10 each at a premium of 50%)

Tutorial note
Computation of number of shares to be issued
Total amount = Rs. 6,00,000
Face value of the shares = Rs. 10
Premium = 50%; Therefore, premium amount = 10 × 50% = Rs. 5
Issue price = Face value + premium = 10 + 5 = Rs.15
Number of equity shares to be issued = \(\frac{Total\ amount}{Issue\ price}=\frac{6,00,000}{15}\) = 40,000 shares

32.

(i) Issued at par

In the books of Sara Company Journal entries
Particulars		Debit Rs.	Credit Rs.
Bank A/c (10,000 x10)	Dr.	1,00,000
To Equity share application A/c			1,00,000
(Application money received)
Equity share application A/c	Dr.	1,00,000
To Equity share capital A/c			1,00,000
(Application money transferred to share capital)

(ii) Issued at a premium

Particulars		Debit Rs.	Credit Rs.
Bank A/c (10,000 × 12)	Dr.	1,20,000
To Equity share application A/c			1,20,000
(Application money received)
Equity share application A/c	Dr.	1,20,000
To Equity share capital A/c (10,000 × 10)			1,00,000
To Securities premium A/c (10,000 × 2)			20,000
(Application money transferred to share capital)

33.

Proprietary ratio = \(\frac { Shareholder's\ funds }{ Totalassets } \)
Shareholder's funds = Equity share capital + Preference share capital + Reserves and surplus
= Rs.2,50,000 + Rs.1,50,000 + Rs.50,000 = Rs.4,50,000
Total assets = Rs.6,00,000
∴ Proprietary ratio = \(\frac { 4,50,000 }{ 6,00,000 } \) = 0.75 : 1

34.

Capitalised value of the business = \(\frac{Average\ profit}{Normal\ rate\ of\ return}\times100\)
= \(\frac{20,000}{10}\times100\)
= Rs. 2,00,000
Capital employed = Fixed assets (excluding goodwill) + Current assets - Current Liabilities
Capital employed = Tangible assets of the firm - Liabilities of the firm
Net tangible assets = 2,20,000 - 70,000 = Rs. 1,50,000
Goodwill = Total capitalised value of the average profit - Capital employed
= 2,00,000 - 1,50,000
= Rs. 50,000

35.

Average profit \(=\frac{Total\ profit}{Number\ of\ years}\)
\(=\frac{20,000+17,000+23,000}{3}\)
\(=\frac{60,000}{3}\) = Rs.20,000
Normal profit = Capital employed x Normal rate of return
80,000 \(\times\) 15% = Rs. 12,000
Super profit = Average profit - Normal profit
20,000 - 12,000 = Rs. 8,000
Goodwill = Super profit \(\times\) Number of years of purchase
= 8,000 \(\times\) 2 = Rs.16,000
Goodwill = Rs. 16,000

Generic 2

3 x 2 = 6

36.

Trend analysis for kala ltd
Particulars	Rs. in thousands			Trends percentage
Particulars	2015-16	2016-17	2017-18	2015-16	2016-17	2017-18
Revenue from operations	400	500	600	100	125	150
Add: Other income	100	150	200	100	150	200
Total revenue	500	650	800	100	130	160
Less: Expenses	200	290	350	100	145	175
Profit aftertax	300	360	450	100	120	150

Note: 2016 - 17.
Percentage for Revenue from operations = \(\frac{500}{400}\) x 100 = 125%
Percentage of other income = \(\frac{150}{100}\) x 100 = 150%
Percentage of total revenue = \(\frac{650}{500}\) x 100 = 130%
Percentage for expenses = \(\frac{290}{500}\) x 100 = 145%
Percentage for profit before tax = \(\frac{360}{300}\) x 100 = 120%
In 2017 -18.
Percentage for revenue from operations = \(\frac{600}{400}\) x 100 = 150%
Percentage for other income = \(\frac{200}{100}\) x 100 = 200%
Percentage of total revenue = \(\frac{800}{500}\) x 100 = 160%
Percentage for expenses = \(\frac{350}{200}\) x 100 = 175%
Percentage for profit before tax = \(\frac{450}{300}\) x 100 = 150%

37.

Comparative income statement of Arul Ltd for the years ended 31^st March 2016 and 31^st March 2017
Particulars	2015-16	2016-17	Absolute amount of increase (+) or decrease (-)	Percentage increase (+) or decrease (-)
Revenue from Operations	50,000	60,000	+10,000	+20
Add: Other income	10,000	30,000	+20,000	+200
Total revenue	60,000	90,000	+30,000	+50
Less: Expenses	40,000	50,000	+10,000	+25
Profit before tax	20,000	40,000	+20,000	100

Note:
Computation of percentage increase for revenue form operations = \(\frac{10,000}{50,000}\times100\) = 20%
Percentage increase for other incomes = \(\frac{20,000}{10,000}\times100\) = 200%
Percentage increase for expenses = \(\frac{10,000}{40,000}\times100\) = 25%

38.

Fixed assets turnover ratio = \(\frac { Revenue\ from\ operations }{ Average\ fixed\ assets } \)
= \(\frac { 55,00,000 }{ 5,00,000 } \) = 11 times