By QB365 on 31 Dec, 2022
QB365 provides a detailed and simple solution for every Possible Questions in Class 12 Accountancy Subject - Important 3 Mark English Medium. It will help Students to get more practice questions, Students can Practice these question papers in addition to score best marks.
12th Standard
Accountancy
Answer all the following Questions.
Following are the balances of Shanthi as on 31st December 2018.
Particulars | Rs | Particulars | Rs |
---|---|---|---|
Bills receivable | 6,000 | Sundry creditors | 25,000 |
Bills payable | 4,000 | Stock | 45,000 |
Machinery | 60,000 | Debtors | 70,000 |
Furniture | 10,000 | Cash | 4,000 |
Prepare a statement of affairs as on 31st December 2018 and calculate capital as at that date.
From the following details find out total sales made during the year.
Rs | |
---|---|
Debtors on 1st April 2018 | 50,000 |
Cash received from debtors during the year | 1,50,000 |
Returns inward | 15,000 |
Bad debts | 5,000 |
Debtors on 31st March 2019 | 70,000 |
Cash Sales | 1,40,000 |
State the procedure for calculating profit or loss through statement of affairs.
From the following Receipts and Payment Account of Ooty Recreation Club, prepare Income and Expenditure Account for the year ended 31.03.2018
Receipts | Rs. | Payments | Rs. |
---|---|---|---|
To Opening balance | By Sports materials purchased | 10,000 | |
Cash in hand | 5,000 | By Stationery paid | 7,000 |
To Rent received | 10,000 | By Computer purchased | 25,000 |
To Sale of investments | 8,000 | By Salaries | 20,000 |
To Subscription received | 54,000 | By Closing balance | |
Cash in hand | 15,000 | ||
77,000 | 77,000 |
How will the following items appear in the final accounts of a club for the year ending 31st March 2017? A club received subscription of Rs. 25,000 during the year 2016-17. This includes subscription of Rs. 2,000 for 2015-16 and Rs. 1,500 for the year 2017-18. Subscription of Rs. 500 is still outstanding for the year 2016-17.
From the following particulars, show how the item ‘subscription’ will appear in the Income and Expenditure Account for the year ended 31-12-2018?
Subscription received in 2018 is Rs.16,000 which includes Rs. 3,000 for 2017 and Rs. 5,000 for 2019.
Subscription outstanding for the year 2018 is Rs. 4,000. Subscription of Rs.2,000 was received in advance for 2018 in the year 2017.
A and B contribute Rs. 4,00,000 and Rs. 2,00,000 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.
Arun is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 12% p.a. During the year ended 31st December 2018 he drew as follows:
Date | Rs. |
---|---|
March 1 | 6,000 |
June 1 | 4,000 |
September 1 | 5,000 |
December 1 | 2,000 |
Calculate the amount of interest on drawings.
John is a partner in a firm. He withdraws Rs.1,000 p.m. regularly. Interest on drawings is charged @ 5% p.a. Calculate the interest on drawings using average period, if he draws
(i) at the beginning of every month
(ii) in the middle of every month
(iii) at the end of every month
From the following information relating to Arul enterprises, calculate the value of goodwill on the basis of 2 years purchase of the average profits of 3 years.
(a) Profits for the years ending 31st December 2016, 2017 and 2018 were Rs. 46,000, Rs. 44,000 and Rs. 50,000 respectively.
(b) A non-recurring income of Rs. 5,000 is included in the profits of the year 2016.
(c) The closing stock of the year 2017 was overvalued by Rs. 10,000.
The following particulars are available in respect of a business carried on by a partnership firm:
(a) Profits earned: 2016: Rs. 30,000; 2017: Rs. 29,000 and 2018: Rs. 32,000.
(b) Profit of 2016 includes a non-recurring income of Rs. 3,000.
(c) Profit of 2017 is reduced by Rs. 2,000 due to stock destroyed by fire.
(d) The stock is not insured. But, it is decided to insure the stock in future. The insurance premium is estimated at Rs. 5,600 per annum.
You are required to calculate the value of goodwill on the basis of 2 years purchase of average profits of the last three years.
From the following information relating to a partnership firm, find out the value of its goodwill based on 3 years purchase of average profits of the last 4 years:
(a) Profits of the years 2015, 2016, 2017 and 2018 are Rs. 10,000, Rs. 12,500, Rs. 12,000 and Rs. 11,500 respectively.
(b) The business was looked after by a partner and his fair remuneration amounts to Rs. 1,500 per year. This amount was not considered in the calculation of the above profits.
Anu and Arul were partners in a firm sharing profits and losses in the ratio of 4:1. They have decided to admit Mano into the firm for 2/5 share of profits. The goodwill of the firm on the date of admission was valued at Rs.25,000. Mano is not able to bring in cash for his share of goodwill. Pass necessary journal entry for goodwill on the assumption that the fluctuating capital method is followed.
Varun and Barath are partners sharing profits and losses 5:4. They admit Dhamu into partnership. The new profit sharing ratio is agreed at 1:1:1. Dhamu’s share of goodwill is valued at Rs. 15,000 of which he pays Rs .10,000 in cash. Pass necessary journal entries for adjustment of goodwill on the assumption that the fluctuating capital method is followed.
Justina, Navi and Rithika are partners sharing profits and losses equally. On 31.3.2019, Rithika retired from the partnership firm. Profits of the preceding years is as follows:
2016: Rs. 5,000; 2017: Rs. 10,000 and 2018: Rs. 30,000
Find out the share of profit of Ritika for the year 2019 till the date of retirement if
(a) Profit is to be distributed on the basis of the previous year’s profit
(b) Profit is to be distributed on the basis of the average profit of the past 3 years
Also pass necessary journal entries by assuming that partners’ capitals are fluctuating. Accountancy
Kavitha, Kumudha and Lalitha are partners sharing profits and losses in the ratio of 5 : 3 : 3 respectively. Kumudha retires from the firm on 31st December, 2018. On the date of retirement, her capital account shows a credit balance of Rs. 2,00,000. Pass journal entries if:
i) The amount due is paid off immediately by cheque.
ii) The amount due is not paid immediately.
iii) Rs. 70,000 is paid immediately by cheque
Maruthu Ltd. forfeited 150 equity shares of Rs.10 each for non payment of final call of Rs.4 per share. Of these 100 shares were reissued @ Rs.9 per share. Pass journal entries for forfeiture and reissue.
Gemini Ltd. forfeited 20 equity shares of Rs.10 each, Rs.7 called up, on which Mahesh had paid application and allotment money of Rs.5 per share. Of these 15 shares were reissued to Naresh by receiving Rs.6 per share paid up as Rs.7 per share. Pass journal entries for forfeiture and reissue.
Calculate trend percentages for the following particulars of Kurinji Ltd.
Particulars | Rs.in thousands | ||
---|---|---|---|
2015-16 | 2016-17 | 2017-18 | |
Revenue from operations | 120 | 132 | 156 |
Other income | 50 | 38 | 65 |
Expenses | 100 | 135 | 123 |
From the following information, calculate trend percentages for Mullai Ltd
Particulars | Rs.in lakhs | ||
---|---|---|---|
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 Balance Sheet of Sundaram Ltd. calculate proprietary ratio:
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 |
From the given information calculate the inventory turnover ratio and inventory conversion period (in months) of Devi Ltd.
Particulars | Rs |
---|---|
Revenue from operations | 12,00,000 |
Inventory at the beginning of the year | 1,70,000 |
Inventory at the end of the year | 1,30,000 |
Purchases made during the year | 6,90,000 |
Carriage inwards | 20,000 |
What are the pre-defined ledgers available in Tally.ERP 9?
Mention the commonly used voucher types in Tally.ERP 9.
Explain how to view profit and loss statement in Tally.ERP 9.
Abdul Ltd. issues 50,000 shares of Rs.10 each payable fully on application. Pass journal entries if shares are issued
(i) at par
(ii) at a premium of
(iii) 3 per share.
Write a short note on
(i) Rights issue
(ii) Bonus issue
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
Find out the value of goodwill at three years purchase of weighted average profit of last four year.
Year | Profit Rs. |
Weight |
---|---|---|
2015 | 10,000 | 1 |
2016 | 12,000 | 2 |
2017 | 16,000 | 3 |
2018 | 18,000 | 4 |
Purchase of super profit method.
A and B are partners showing profits ratio of 3: 2 'C' admit into partnership. C paying for premium Rs. 10,000 and for capital Rs. 1,00,000. No Goodwill a/c appears in the books. New profit sharing ratio 2:2:1 Pass journal entries.
Answers
Liabilities | Rs | Assets | Rs |
---|---|---|---|
Sundry creditors | 25,000 | Cash | 4,000 |
Bills payable | 4,000 | Stock | 45,000 |
Capital (balancing figure) | 1,66,000 | Debtors | 70,000 |
Bills receivable | 6,000 | ||
Machinery | 60,000 | ||
Furniture | 10,000 | ||
1,95,000 | 1,95,000 |
Particulars | Rs | Particulars | Rs |
---|---|---|---|
To Balance b/d | 50,000 | By Cash A/c | 1,50,000 |
To Sales A/c (credit) | 1,90,000 | By Returns inward A/c | 15,000 |
(balancing figure) | By Bad debts A/c | 5,000 | |
By Balance c/d | 70,000 | ||
2,40,000 | 2,40,000 |
Total Sales = Cash Sales + Credit Sales
= Rs.1,40,000 + Rs.1,90,000
= Rs. 3,30,000
(ii) Format of bills receivable account
Particulars | Rs. | Particulars | Rs. |
---|---|---|---|
To Balance b/d | xxx | By Cash / Bank A/c | xxx |
(opening balance) | (Bills receivable honoured) | ||
To Sundry debtors A/c | xxx | By Sundry debtors A/c | xxx |
(Bills receivable received during the year) | (Bills receivable dishonoured) | ||
By Balance c/d | xxx | ||
(closing balance) | |||
xxx | xxx |
Following are the steps to be followed under the statement of affairs method to find out the profit or loss.
(1) Ascertain the opening capital by preparing a statement of affairs at the beginning of the year by taking the opening balances of assets and liabilities.
(2) Ascertain the closing capital by preparing a statement of affairs at the end of the accounting period after making all adjustments such as depreciation, bad debts, outstanding and prepaid expenses, outstanding income, interest on capital, interest on drawings, etc.
(3) Add the amount of drawings (both in cash and/in kind) to the closing capital.
(4) Deduct the amount of additional capital introduced, to get adjusted closing capital.
(5) Ascertain profit or loss by subtracting opening capital from the adjusted closing capital.
a) If adjusted closing capital is more than the opening capital, it denotes profit
b) If adjusted closing capital is lesser than the opening capital, it denotes loss Following format is used to find out the profit or loss:
Particulars | Rs. |
---|---|
Capital at the end of the year | xxxx |
Add: Drawings during the year | xxxx |
xxxx | |
Less: Additional capital introduced during the year | xxxx |
Adjusted closing capital | xxxx |
Less: Opening Capital | xxxx |
Profit or loss for the year | xxxx |
In the books of Ooty Recreation Club
Expenditure | Rs. | Income | Rs. |
---|---|---|---|
To Sports materials purchased | 10,000 | By Rent received | 10,000 |
To Stationery paid | 7,000 | By Subscription received | 54,000 |
To Salaries | 20,000 | ||
To Surplus | 27,000 | ||
(Excess of income over expenditure) | |||
64,000 | 64,000 |
Expenditure | Rs. | Income | Rs. | Rs. |
---|---|---|---|---|
By Subscription | 25,000 | |||
Less: Subscription for the year 2015-16 | 2,000 | |||
23,000 | ||||
Less: Subscription for the year 2017-18 | 1,500 | |||
21,500 | ||||
Add: Outstanding subscription for the year 2016-17 |
500 | 22,000 | ||
Liabilities | Rs. | Assets | Rs. |
---|---|---|---|
Subscription received in advance for the year 2017-18 | 1,500 | Outstanding subscription for the year 2016-2017 | 500 |
Expenditure | Rs. | Income | Rs. | Rs. |
---|---|---|---|---|
By Subscription received during the year | 16,000 | |||
Less: Subscription received for 2017 | 3,000 | |||
13,000 | ||||
Less: Subscription received for 2019 | 5,000 | |||
8,000 | ||||
Add: Subscription due for 2018 | 4,000 | |||
12,000 | ||||
Add: Received in advance in 2017 for 2018 | 2,000 | 14,000 |
(b) Treatment of consumable items such as sports materials, stationery items, medicines, etc.
(i) Consumable items such as sports materials, stationery, medicines, etc., consumed during the year will appear on the debit side of income and expenditure account.
(ii) Consumption = Opening stock + Purchases during the current year - Closing stock
(iii) Closing stock will appear on the assets side of the balance sheet as at the end of the year.
(iv) If there is any sale of old sports materials, etc., that will be shown on the credit side of income and expenditure account or can be subtracted from the respective items consumed on the debit side of income and expenditure account.
(i) Interest on capital will not be allowed as the partnership deed is silent as to the interest on capital.
(ii) Profit before interest on capital is Rs. 27,000.
Computation of interest on capital:
A: 4,00,000 \(\times\) \(\frac{3}{100}\) = Rs. 12,000
B: 2,00,000 \(\times\) \(\frac{3}{100}\) = Rs. 6,000
Since there is sufficient profit, interest on capital will be provided.
(iii) Profit before interest on capital is Rs. 27,000.
Computation of interest on capital:
A: 4,00,000 \(\times\) \(\frac{5}{100}\) = Rs. 20,000
B: 2,00,000 \(\times\) \(\frac{5}{100}\) = Rs. 10,000
Since the profit is insufficient, interest on capital will not be provided. Profit of Rs. 27,000 will be distributed to the partners in their capital ratio of 2:1.
Interest on drawings = Amount of drawings x Rate of interest x Period of interest
Withdrawal on March 1 | 6,000 \(\times\) \( \frac { 12 }{ 100 } \times \frac { 10 }{ 12 }\) | Rs. 600 |
Withdrawal on June 1 | Rs.4,000 \(\times\) \( \frac { 12 }{ 100 } \times \frac { 7 }{ 12 }\) | Rs. 280 |
Withdrawal on September 1 | Rs. 5,000 \(\times\) \( \frac { 12 }{ 100 } \times \frac { 4 }{ 12 }\) | Rs. 200 |
Withdrawal on December 1 | Rs. 2,000 \(\times\) \( \frac { 12 }{ 100 } \times \frac { 1 }{ 12 }\) | Rs. 20 |
Total interest on drawings | Rs. 1,100 |
Total amount withdrawn = 1,000 \(\times\) 12 = Rs.12,000
(i) If drawings are made at the beginning of every month:
Average period = 6.5
Interest on drawings = Total amount of drawings \(\times\) Rate of interest \(\times\) \(\frac { Average\ period }{ 12 } \)
= Rs.12,000 \(\times\) \(\frac { 5 }{ 100 } \times \frac { 6.5 }{ 12 } \)= Rs. 325
(ii) If drawings are made in the middle of every month:
Average period = 6
Interest on drawings = Total amount of drawings \(\times\) Rate of interest \(\times\) \(\frac { Average\ period }{ 12 } \)
= Rs. 12,000 \(\times\) \(\frac { 5 }{ 100 } \times \frac { 6 }{ 12 } \)= Rs. 300
(iii) If drawings are made at the end of every month:
Average period = 5.5
Interest on drawings = Total amount of drawings × Rate of interest \(\times\) \(\frac { Average\ period }{ 12 } \)
= Rs.12,000 \(\times\) \(\frac { 5 }{ 100 } \times \frac { 5.5 }{ 12 } \)= Rs. 275
Particulars | 2016 Rs. |
2017 Rs. |
2018 Rs. |
---|---|---|---|
Profit | 46,000 | 44,000 | 50,000 |
Less: Non- recurring income | 5,000 | - | - |
41,000 | 44,000 | 50,000 | |
Less: Over valuation of closing stock | - | 10,000 | - |
41,000 | 34,000 | 50,000 | |
Add: Over valuation of opening stock | - | - | 10,000 |
Profit after adjustments | 41,000 | 34,000 | 60,000 |
Tutorial note: Over valuation of closing stock in 2017 will result in over valuation of opening stock in 2018.
Average profit = \(\frac { Total\ profit }{ Number\ of\ year } \)
= \(\frac { 41,000+34,000+60,000 }{ 3 } \)
= \(\frac { 1,35,000 }{ 3 } \) = Rs. 42,000
Goodwill = Average profit \(\times\) Number of years of purchase
= 45,000 × 2
= Rs. 90,000
Particulars | 2016 Rs. |
2017 Rs. |
2018 Rs. |
---|---|---|---|
Profit | 30,000 | 29,000 | 32,000 |
Less: Non- recurring income | 3,000 | - | - |
27,000 | 29,000 | 32,000 | |
Add: Stock destroyed by fire (abnormal loss) | - | 2,000 | 32,000 |
Profit after adjustments | 27,000 | 31,000 | 32,000 |
Average profit = \(\frac { Total\ profit }{ Number\ of\ year } \)
Average profit = \(\frac { 27,000+31,000+32,000 }{ 3 } \)
= \(\frac { 90,000 }{ 3 } \) = Rs. 30,000
Particulars | Rs. |
---|---|
Average profit before adjusting insurance premium payable |
30,000 |
Less: Insurance premium payable in future |
5,600 |
Average profit | 24,400 |
Goodwill = Average profit \(\times\) Number of years of purchase
= 24,400 \(\times\) 2
= Rs. 48,800
Average profit \(=\frac{Total\ profit}{Number\ of\ years}\)
\(=\frac{10,000+12,000+12,000+11,500}{4}\)
\(=\frac{46,000}{4}\) = Rs.11,500
Average profit before adjusting fair remuneration of the parter | = Rs. 11,500 |
Less: Fair remuneration of partners | = Rs. 1,500 |
Average profit | = Rs. 10,000 |
Goodwill Average profit \(\times\) Number of years of purchase
= 10,000 \(\times\) 3
= Rs. 30,000
Goodwill = Rs. 30,000
As the sacrifice made by the existing partners is not mentioned, it is assumed that they sacrifice in their old profit sharing ratio of 4 : 1. Therefore sacrificing ratio is 4 : 1
Manos share of goodwill = 25,000 x \(\frac{2}{5}\)
= Rs. 10,000
Date | Particulars | L.F | Debit Rs. |
Credit Rs. |
---|---|---|---|---|
Manos capital A/c Dr | 10,000 | |||
To Anu's capital A/c \((\frac{4}{5})\) | 8,000 | |||
To Arul's capital A/c \((\frac{1}{5})\) | 2,000 | |||
(Mano's share of goodwill created to the old partner's capital account in the sacrificing ratio) |
Calculation of sacrificing ratio
Sacrificing ratio = Old share - New share
Varun \(=\frac { 5 }{ 9 } =\frac { 1 }{ 3 } =\frac { 5-3 }{ 9 } =\frac { 2 }{ 9 } \)
Bharath \(=\frac { 4 }{ 9 } =\frac { 1 }{ 3 } =\frac { 4-3 }{ 9 } =\frac { 1 }{ 9 } \)
Therefore, sacrificing ratio is 2 : 1
Date | Particulars | L.F | Debit Rs. |
Credit Rs. |
---|---|---|---|---|
Cash A/c Dr | 10,000 | |||
Damn's capital A/c Dr | 5,000 | |||
To Varun's capital A/c (2/3) | 10,000 | |||
To Bharath's Capital A/c (1/3) | 5,000 | |||
(Share of goodwill of Damu credited to old partner's capital account) |
(a) If profit is to be distributed on the basis of the previous year’s profit:
Ritika’s share of profit for 3 months \(=30000\times\frac{3}{12}\times\frac{1}{3}=Rs.2,500\)
Date | Particulars | L.F | Debit Rs. |
Credit Rs. |
|
---|---|---|---|---|---|
2019 March 31 |
Profit and loss Suspense A/c | Dr. | 2,500 | ||
To Rithika’s capital A/c | 2,500 | ||||
(Rithika’s current year share of profit credited to her capital account) |
(b) If profit is to be distributed on the basis of the average profit of the past 3 years:
Average profit \(=\frac{5,000+10,000+30,000}{3}\)
= 15,000
Ritika’s share of profit for 3 months \(=15000\times\frac{3}{12}\times\frac{1}{3}=Rs.1,250\)
Date | Particulars | L.F | Debit Rs. |
Credit Rs. |
|
---|---|---|---|---|---|
2019 March 31 |
Profit and loss Suspense A/c | Dr. | 1,250 | ||
To Rithika’s capital A/c | 1,250 | ||||
(Rithika’s current year share of profit credited to her capital account) |
Date | Particulars | L.F | Debit Rs. |
Credit Rs. |
|
---|---|---|---|---|---|
2018 Dec. 31 |
(i) Kumudha’s capital A/c | Dr. | 2,00,000 | ||
To Bank A/c | 2,00,000 | ||||
(Amount due paid immediately) | |||||
" | (ii) Kumudha’s capital A/c | Dr. | 2,00,000 | ||
To Kumudha’s loan A/c | 2,00,000 | ||||
(Amount due transferred to loan account) | |||||
" | (iii) Kumudha’s capital A/c | 2,00,000 | |||
To Bank A/c | 70,000 | ||||
To Kumudha’s loan A/c | 1,30,000 | ||||
(Rs. 70,000 paid and the balance transferred to loan account) |
Date | Particulars | L.F. | Debit Rs. |
Credit Rs. |
|
---|---|---|---|---|---|
Equity share capital A/c (150 × 10) | Dr. | 1,500 | |||
To Equity share final call A/c (150 × 4) | 600 | ||||
To Forfeited shares A/c (150 × 6) | 900 | ||||
(50 shares forfeited) | |||||
Bank A/c (100 × 9) | Dr. | 900 | |||
Forfeited shares A/c (100 × 1) | 100 | ||||
To Equity share capital A/c (100 × 10) | 1,000 | ||||
(100 forfeited shares reissued @ Rs.9 per share) | |||||
Forfeited shares A/c | Dr. | 500 | |||
To Capital reserve A/c | 500 | ||||
(Gain on reissue of forfeited shares transferred to capital reserve account) |
Working note:
Forfeited amount for 150 shares = Rs.900
Forfeited amount for 100 shares = \(\frac{900}{150}\) x 100 = Rs.600
Gain or loss = Amount forfeited – loss on reissue
= 600 - 100
Net gain = Rs.500
Date | Particulars | L.F. | Debit Rs. |
Credit Rs. |
|
---|---|---|---|---|---|
Equity share capital A/c (20 × 7) | Dr. | 140 | |||
To Equity share first call A/c (20 × 2) | 40 | ||||
To Forfeited shares A/c (20 × 5) | 100 | ||||
(Forfeiture of 120 shares, Rs.7 called up) | |||||
Bank A/c (15 × 6) | Dr. | 90 | |||
Forfeited shares A/c | 15 | ||||
To Equity share capital A/c (15 × 7) | 105 | ||||
(Reissue of 15 forfeited shares @ Rs.6 per share) | |||||
Forfeited shares A/c | Dr | 60 | |||
To Capital reserve A/c | 60 | ||||
(Gain on reissue of forfeited shares transferred to capital reserve account) |
Note:
Computation of transfer to capital reserve
Forfeited amount for reissued shares of 15 | = \(\frac{100}{20}\times\)15 | = 75 |
Less: Loss on reissue | 15 | |
Transfer to capital reserve | 60 |
Remaining balance in shares forfeited account Rs. 25 will appear in the balance sheet. Accountancy.
Particulars | Rs.in thousands | Trend percentages | ||||
---|---|---|---|---|---|---|
2015-16 | 2016-17 | 2017-18 | 2015-16 | 2016-17 | 2017-18 | |
Revenue from operations | 120 | 132 | 156 | 100 | 110 | 130 |
Add: Other income | 50 | 38 | 65 | 100 | 76 | 130 |
Total revenue | 170 | 170 | 221 | 100 | 100 | 130 |
Less: Expenses | 100 | 135 | 123 | 100 | 135 | 123 |
Profit | 70 | 35 | 98 | 100 | 50 | 140 |
Computation of trend percentage for revenue from operations:
For 2016-17: \(\cfrac { 132 }{ 120 } \times 100=110\)%
For 2017-18: \(\cfrac { 156 }{ 120 } \times 100=130\)%
Particulars | Rs.in lakhs | Trend percentages | ||||
---|---|---|---|---|---|---|
2015-16 | 2015-16 | 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 | 170 | 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 |
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
Inventory turnover ratio = \(\frac { Credit\ revenue\ from\ operations }{ Average\ inventory } \)
Cost of revenue from operations = Opening inventory + Net Purchases + Direct expenses
(carriage inwards) - Closing inventory
= Rs.1,70,000 + Rs.6,90,000 + Rs.20,000 - Rs.1,30,000
= Rs.7,50,000
Average inventory = \(\frac { Opening\ inventory+Closing\ inventory }{ 2 } \)
= \(\frac { 1,70,000+1,30,000 }{ 2 } =\frac { 3,00,000 }{ 2 } \)
= Rs.1,50,000
∴ Inventory turnover ratio = \(\frac { 7,50,000 }{ 1,50,000 } \) = 5 times
Inventory conversion period (in months) = \(\frac { Number\ of\ months\ in\ a\ year }{ Inventory\ turnover\ ratio } \)
= \(\frac { 12 }{ 5 } \) = 2.4 months.
In Tally, to record transactions, the transactions are to be identified with the related ledger accounts. In Tally ERP 9, there are two types of pre. defined ledgers.
(i) Cash: Under the group cash-in-hand this ledger is created, you can enter the opening balance as on the books beginning from.
(ii) Profit and loss account : This ledger is created under the group primary. In this ledger previous year's profit or loss is entered as the opening-balance of this ledger.
To create ledger:
Gateway of Tally ➝ Masters >
Accounts Info > Ledgers >
Single Ledger > create
Following are some of the major accounting vouchers used in an organisation:
(i) Receipt Voucher
(ii) Payment Voucher
(iii) Contra Voucher
(iv) Purchase Voucher
(v) Sales Voucher
(vi) Journal Voucher
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)
a.Issued at par:
Date | Particulars | L.F. | Debit Rs. | Credit Rs. | |
---|---|---|---|---|---|
Bank A/c (50000 x 10) | Dr | 5,00,000 | |||
To Share application A/c | 5,00,000 | ||||
(Application money received) | |||||
Share application A/c | Dr | 5,00,000 | |||
To Share capital A/c | 5,00,000 | ||||
(Application money transferred to share capitals) |
b.Issued at a premium:
Date | Particulars | L.F. | Debit Rs. | Credit Rs. | |
---|---|---|---|---|---|
Bank A/c (50000 x 13) | Dr | 6,50,000 | |||
To share application A/c | 6,50,000 | ||||
(Application money received) | |||||
Share application A/c | Dr | 6,50,000 | |||
To Securities premium A/c | 1,50,000 | ||||
To Securities premium A/c | 1,50,000 | ||||
(Application money transferred) |
Issue of shares for consideration other than cash.
(i) Rights issue
Issue of equity shares to the existing shareholders of the company through a letter of offer is known as rights issue.
(ii) Bonus issue
Issue of equity shares to the existing shareholders of the company free of cost out of accumulated profit is known as bonus issue.
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
Year | Profits(a) Rs. |
Weight(b) | Weighted profit (axb) Rs. |
---|---|---|---|
2015 | 10,000 | 1 | 10,000 |
2016 | 12,000 | 2 | 24,000 |
2017 | 16,000 | 3 | 48,000 |
2018 | 18,000 | 4 | 72,000 |
Total | 10 | 1,54,000 |
Weighted average profit = \(\frac{Total\ of\ weighted\ profit}{Total\ of\ weights}\)
=\(\frac{1,54,000}{10}=Rs.15,400\)
Weighted average profit = 15,400
Goodwill = Weighted average profit \(\times\) Number of years of purchase
= 15,400 \(\times\) 3 = 46,200
Goodwill = Rs. 46,200
Since the amount of goodwill is brought in by 'C' in cash.
Particulars | LF | Debit | Credit |
---|---|---|---|
(i) Cash A/c Dr To C's Capital A/c (Amount of goodwill and Capital Credited) |
1,10,000 | ||
1,10,000 | |||
(ii) C's Capital A/c Dr To A's Capital A/c (Amount of goodwill Credited to A's A/C) |
10,000 | ||
10,000 | |||
(iii) A's Capital A/c Dr To Cash A/c (Amount of goodwill withdrawn by A) |
10,000 | ||
10,000 | |||