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12th Standard English Medium Accountancy Reduced Syllabus Creative Five mark Question with Answer key - 2021(Public Exam )

Published on: 27/02/2021

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Questions:

Generic 5

25 x 5 = 125

From the following figures obtained from Sun Ltd; calculate the trade payables turnover ratio and credit payment period (in days).

Particulars	Rs.
Credit purchases during 2018 - 2019	1,00,000
Trade creditors as on 1.4.2018	20,000
Trade creditors as on 31.3.2019	10,000
Bills payable as on 1.4.2018	4,000
Bills payable as on 31.3.2019	6,000

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

Balance sheet of Luckman Ltd. as on 31.3.2018
Particulars	Rs.
I. EQUITY AND LIABILITIES
1. Shareholders' funds
(a) Share capital
(i) Equity share capital	1,00,000
(ii) Preference share capital	75,000
(b) Reserves and surplus	25,000
2. Non-current liabilities
Long term borrowings	-
3. Current liabilities
Trade payables	2,00,000
Total	4,00,000
II. ASSETS
1. Non-current assets
(a) Fixed assets	2,75,000
(b) Non -current investments	50,000
2. Current assets
Cash and cash equivalents	75,000
Total	4,00,000

Calculate (i) Inventory turnover ratio (ii) Trade receivables turnover ratio (iii) Trade payables turnover ratio and (iv) Fixed assets turnover ratio from the following information obtained from Dolphin Ltd.

Particulars	As on 31^st March 2017 Rs.	As on 31^st March 2018 Rs.
Inventory	70,000	50,000
Trade receivables	40,000	30,000
Trade payables	20,000	25,000
Fixed assets	2,75,000	2,50,000

Additional information:
(i) Revenue from operations for the year Rs.5,25,000
(ii) Purchases for the year Rs.2,25,000
(iii) Cost of revenue from operations Rs.3,00,000
Assume that sales and purchases are for credit

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.

Global Company issued shares Rs.10 each at 10% premium, payable Rs.2 on application, Rs.3 on allotment (including premium), Rs.3 on first call and Rs.3 on second and final call.
Journalise the transactions relating to forfeiture of shares for the following situations:
i. Muthu who holds 50 shares failed to pay the second and final call and his shares were forfeited.
ii. Muthu who holds 50 shares failed to pay the allotment money, first call and second and final call money and his shares were forfeited.
iii. Muthu who holds 50 shares failed to pay the allotment money and first call and his shares were forfeited after the first call.

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%

Prepare common-size statement of financial position of Raheem Ltd as on 31^st March 2016 and 31^st March 2018.

Particulars	31st March 2016	31st March 2017
Particulars	Rs.	Rs.
I. Equity and liabilities
l. Shareholders fund
a. Share capital	5,00,000	6,00,000
b. Reserve and surplus	4,00,000	3,60,000
2. Non-current liabilities
Long-term borrowings	8,00,000	2,40,000
3. Current liabilities
Trade payables	30,000	-
Total	20,00,000	12,00,000
II. Assets
l. Non-current assets
a. Fixed assets	10,00,000	6,00,000
b. Non-current investments	5,00,000	2,40,000
2. Current assets
Inventories	3,00,000	1,20,000
Cash and cash equipments	2,00,000	2,40,000
Total	20,00,000	12,00,000

On 1.1.2019, Pandiyan died and on his death the following arrangements are made:
(i) Stock to be depreciated by 10 %
(ii) Land is to be apprecia!.e4. by Rs.11,000
(iii) To provide 3,000 for bad debts
(iv) The final amount due to Pandiyan was not paid
Prepare revaluation account, partner's capital account and the balance sheet of the firm after death

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.

10.

Durga and Preethi entered into a partnership agreement on 1st April 2018, Durga contributing Rs.50,000 and Preethi Rs.60,000 as capital. The agreement provided that:
(a) Profits and losses to be shared in the ratio 3:2 as between Durga and Preethi.
(b) Partners to be entitled to interest on capital @ 5% p.a.
(c) Interest on drawings to be charged Durga Rs.600 Velan Rs.900
(d) Durga to receive a salary Rs.10,000 for the year and
(e) Preethi to receive a commission of Rs.4,000 During the year, the firm made a profit of Rs.40,000 before adjustment of interest, salary and commission prepare the profit and loss appropriation account.

11.

Arul is a partner in a partnership firm. As per the partnership deed, interest on drawing is charged at 6%p.a. During the year ended on 31^st December 2018 he drew as follows.

Date	Rs.
March 1	3,000
June 1	2,000
September 1	5,000
December 1	4,000

Calculate the amount of interest on drawings under any 2 methods

12.

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

13.

From the following information, prepare capital accounts of partners Manoj and Seran, when their capitals are fluctuating

Particulars	Manoj Rs.	Seran Rs.
Capital on 1^st January 2018 ( Cr. balance)	1,00,000	87,500
Drawings during 2018	20,000	17,500
Interest on drawings	500	250
Share of profit for 2018	10,500	8,250
Interest on capital	6,000	5,250
Salary	9,000	Nil
Commission	Nil	1250

14.

Kavitha and Radha are partners of a firm sharing profits and losses in the ratio of 4:3. They admit Deepa on 1.1.2019. On that date, their balance sheet showed debit balance of profit and loss account being accumulate loss
Rs. 1,40,000 on the asset side of the balance sheet. Give the journal entry to transfer the accumulated loss on admission.

15.

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

16.

Compute the amount of total purchases and total sales of Mr. Amit from the following information for the year ending on March 31, 2018.

	Rs.
Total debtors as on April 01, 2017	40,000
Total creditors as on April 01,2017	50,000
Bills receivable as on April 01, 2017	30,000
Bills payable as on April 01, 2017	45,000
Discount received	5,000
Bad debts	2,000
Return inwards	4,000
Discount allowed	3,000
Cash sales	10,000
Cash purchases	8,000
Total debtors as on March 31, 2018	80,000
Cash received from debtors	1,00,000
Cash paid to creditors	80,000
Cash received against bills receivable	25,000
Payment made against bills receivable	40,000
Total creditors as on March 31, 2018	40,000
Bills payable as on March 31, 2018	50,000
Bills receivable as on March 31,2018	35,000

17.

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	-

18.

Calculate the missing information:

Particulars	Rs.
Closing capital	32,000
Drawings	4,800
Additional capital	8,000
Profit made during the year	9,600

19.

From the following information, compute the value of goodwill as per annuity method:
(a) Capital employed: Rs.1,00,000
(b) Normal rate of return: 15%
(c) Profit of the years 2016, 2017 and 2018 were Rs.6,000, Rs.8,000 and Rs.20,000 respectively
(d) The present value of annuity of n for 3 years at 10% is 2.4868

20.

From the following information, calculate the value of goodwill based on 3 years purchase of Super profit
(i) Capital employed: 1,00,000
(ii) Normal rate of return: 10%
(iii)Average profit of the business: 42,000

21.

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. 23,000 Rs.22,000 and Rs. 25,000 respectively.
(b) A non-recurring income of Rs. 2,500 is included in the profits of the year 2016.
(c) The closing stock of the year 2017 was overvalued by Rs. 5,000.

22.

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

23.

Following is the receipts and payments accounts of Literacy club for the year ended 31^stMarch 2016

Receipts	Rs.	Rs.	Payments	Rs.
To Balance c/d		19,550	By Salary	3,000
			By News papers	2,050
To Subscribtions			By Electricity bill	1,000
2014·2015	1,200		By Fixed deposit	20,000
2015·2016	26,500		(on 1^st July, 2015 @
	500		9% per annum
		28,200	By Books	10,600
			By Rent	6,800
To slae old news paper		1,250	By Furniture	10,500
To Government grants		10,000	By Balance dd	11,200
To sale of old furniture		5,700
(book value Rs.7,000)
To interest on fixed deposits		450
		65,150		65,150

Additional information:
(i) Subscription outstanding as on 31^stMarch, 2015 were Rs. 2000 and on 31^stMarch, 2016 Rs. 2,500.
(ii) On 31^stMarch, 2016 Salary outstanding was Rs. 600 and rent outstanding was Rs. 1,200.
(iii) The club owned furniture Rs. 15,000 and books Rs. 7,000 on 1st April, 2015. Prepare income and expenditure account of the dub for the year ended 31^stMarch 2016 and as certain capital fund on 31^stMarch, 2015. Also prepare a balance sheet as on 31^stMarch, 2016.

24.

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.

25.

From the following Receipt and Payment Account for the year ending 31^stMarch 2015 of crickets club. Prepare Income and Expenditure Account for the same period:

Dr Receipt and Payment Account for the year ending March 31, 2015 Cr
Receipts	Rs	Payments	Rs
To Balance c/d	25,000	By Purchase of furniture (1.7.14)	5,000
Bank	25,000	By Salaries	2,000
To Subscriptions		By Electricity charges	600
2014 1,500		By Postage and stationery	150
2015 10,000		By Purchase of books	2,500
2016 500	12,000	By Entertainment expenses	900
To Donation	2,000	papers (1.7.14	8000
To Hall rent	300	By Miscellaneous expenses	600
To Interest on bank deposits	450	By Balance c/d
To Entrance fees	1,000	Cash	300
		Bank	20,400
	40,750		40,750

The following additional information is available:
(i) Salaries outstanding Rs. 1,500
(ii) Entertainment expenses outstanding Rs. 500
(Hi) Bank interest receivable Rs. 150
(iv) Subscription accrued Rs. 400
(v) 50 percent of entrance fees is to capitalised
(vi) Furniture is to be depreciated at 10percent per annum

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Answers Key:

Generic 5

25 x 5 = 125

Trade payables turnover ratio = \(\frac { Net\quad credit\quad purchases }{ Average\quad trade\quad payables } \)
Average trade payables = \(\frac { Opening\quad trade\quad payables+Closing\quad trade\quad payables }{ 2 } \)
= \(\frac { (20,000+4,000)+(10,000+6,000) }{ 2 } \)
= \(\frac { 40,000 }{ 2 } \) = Rs.20,000
Average payment period (in days) = \(\frac { Number\quad of\quad days\quad in\quad a\quad year }{ Trade\quad payables\quad turn\quad over\quad ratio } \)
=\(\frac { 365 }{ 5 } \) = 70 days
∴ Trade payables turnover ratio (in days) = \(\frac { 1,00,000 }{ 20,000 } \) = 5 times.

Proprietary ratio = \(\frac { Shareholder's\quad funds }{ Total\quad assets } \)
Shareholder's funds = Equity share capital + Preference share capital + Reserves and surplus
= Rs.1,00,000 + Rs.75,000 + Rs.25,000 = Rs.2,00,000
∴ Proprietary ratio = \(\frac { 2,00,000 }{ 4,00,000 } \) = 0.5:1

(i) Inventory turnover ratio = \(\frac { Cost\quad of\quad revenue\quad from\quad operations }{ Average\quad inventory } \)
Average inventory = \(\frac { Opening\quad inventory+Closing\quad inventory }{ 2 } \)
=\(\frac { 70,000+50,000 }{ 2 } \) = 60,000
∴ Inventory turnover ratio =\(\frac { 3,00,000 }{ 60,000 } \) = 5 times.
(ii) Trade receivables turnover ratio = \(\frac { Credit\quad revenue\quad from\quad operations }{ Average\quad trade\quad receivables } \)
Average trade receivables = \(\frac { Opening\quad trade\quad receivables+Closing\quad trade\quad receivables }{ 2 } \)
= \(\frac { 40,000+30,000 }{ 2 } \) = 35,000
∴ Trade receivables turnover ratio = \(\frac { 5,25,000 }{ 35,000 } \) = 15 times
(iii) Trade payables turnover ratio = \(\frac { Net\quad credit\quad purchases }{ Average\quad trade\quad payables } \)
Average trade payables = \(\frac { Opening\quad trade\quad payables+Closing\quad trade\quad payables }{ 2 } \)
= \(\frac { 20,000+25,000 }{ 2 } =\frac { 45,000 }{ 2 } \)
= Rs.22,500
∴ Trade payables turnover ratio =\(\frac { 2,25,000 }{ 22,500 } \) = 10 times.
(iv) Fixed assets turnover ratio = \(\frac { Revenue\quad from\quad operations }{ Average\quad fixed\quad assets } \)
Average fixed assets = \(\frac { Opening\quad fixed\quad assets+Closing\quad fixed\quad assets }{ 2 } \)
= \(\frac { 2,75,000+2,50,000 }{ 2 } =\frac { 4,75,000 }{ 2 } \)
= Rs.2,62,500
∴ Fixed assets turnover ratio = \(\frac { 5,25,000 }{ 2,62,500 } \) = 2 times

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)

(i) When final call money is not paid

In the books of Global company Journal entries
Particulars		Debit Rs.	Credit Rs.
Equity share capital A/c (50 x 10)	Dr.	500
To Equity share second and final call A/c (50 x 3)			150
To Forfeited shares A/c (50 x 7)			350
(50 shares forfeited)

Note: Since the premium amount is received by the company, premium should not be cancelled.
(ii) When allotment, first call money and second and final call money is not paid

In the books of Y company Journal entries
Particulars		Debit Rs.	Credit Rs.
Share capital A/c (50 x 10)	Dr.	500
Share premium A/c (50 x 1)	Dr.	50
To Share allotment A/c (50 x 3)			150
To Share first call A/c (50 x 3)			150
To Share second and final call A/c (50 x 3)			150
To Shares forfeited A/c (50 x 2)			100
(50 shares forfeited)

(iii) When allotment and first call money is not paid

In the books of Y company Journal entries
Particulars		Debit Rs.	Credit Rs.
Share capital A/c (50 x 7)	Dr.	350
Share premium A/c (50 x 1 )	Dr.	50
To Share allotment A/c (50 x 3)			150
To Share first call A/c (50 x 3)			150
To Shares forfeited A/c (50 x 2)			100
(50 shares forfeited)

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 balance sheet of Raheem Ltd as on 31st March, 2016 and 31 st March, 2017
Particulars	Absolute amount on 31st March 2016	Percentage of total assets on 31st March 2016	Absolute amount on 31st March 2017	Percentage of total assets on 31st March 2017
Particulars	Rs.		Rs.	Percentage of total assets on 31st March 2017
I. Equity and liabilities
l. Shareholders fund
a. Share capital	5,00,000	25	6,00,000	50
b. Reserve and surplus	4,00,000	20	3,60,000	30
2. Non-current liabilities
Long-term borrowings	8,00,000	40	2,40,000	20
3. Current liabilities
Trade payables	30,000	15	-	-
Total	20,00,000	100	12,00,000	100
II. Assets
l. Non-current assets
a. Fixed assets	10,00,000	50	6,00,000	50
b. Non-current investments	5,00,000	25	2,40,000	20
2. Current assets
Inventories	3,00,000	15	1,20,000	10
Cash and cash equipments	2,00,000	10	2,40,000	20
Total	20,00,000	100	12,00,000	100

Dr Revaluation Account Cr
Particulars	Rs	Rs	Particulars	Rs
To Stock A/c		2,000	ByLand A/c	11,000
To Debtors A/c		3,000
To Profit on revaluation transferred to
Sankar's capital Ale (6,000 x 3/6)	3,000
Saleem's capital Ale (6,000 X 2/6)	2,000
Pandian's capital Ale (6,000 X 1/6)	1,000	6,000
		11,000		11,000

Capital Account
Particulars	Sankar Rs	Saleem Rs	Pandiyan Rs	Particulars	Sankar Rs	Saleem Rs	Pandiyan Rs
To profit and loss				By Balance b/d	50,000	40,000	10,000
A/c	3,000	2,000	1,000	By General reserve	18,000	12,000	6,000
				reserve	18,000	12,000	6,000
To Pandian's
Executor's A/c			16,000	By Revaluation
To Balance c/d	68,000	52,000		A/c (profit)	3,000	2,000	1,000

	71,000	54,000	17,000		71,000	54,000	17,000
				By Balance b/d	68,000	52,000

Balance sheet as on 31st December 2018
Liabilitie	Rs	Rs	Assets	Rs	Rs
Capital account			Land	80,000
Sankar	68,000		Add: Appreciation	11,000	91,000
Saleem	52,000	1,20,000
Pandians Executor's A/c		16,000	Stock	20,000
		14,000	Less: Depreciation	2,000	18,000
			Debtors	30,000
			Less: Bad debts	3,000	27,000
		1,50,000	Cash at bank		14,000
					1,50,000

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

10.

Profit and loss appropriation accounts for the year ended 31^st March 2019

Dr Cr
Particulars	Rs.	Rs.	Particulars	Rs.
To Interest on capital AI c			By Profit and loss AI c	40,000
Durga (50,000 x 5/100)		2,500	By Interest on drawings A/c
Preethi (60,000 x 5/100)		3,000
To Salary Durga		10,000	Durga	600
To Commission to Preethi A/c		4,000	Preethi	900
To Partner's capital A/c
To Partner's capital A/c (Profit transferred)
Durga (22,000 x 3/5)	13,200
Preethi (22,000 x 2/5)	8,800	22,000
		41,500		41,500

11.

Interest on drawings = Amount of drawings x Rate of interest x Period of interest
Withdrawal on March 1= Rs.3,000 x \(\frac{6}{100}\) x \(\frac{10}{12}\) = Rs.150
Withdrawal of June 1 = ~2,000 x \(\frac{6}{100}\) x \(\frac{7}{12}\) = Rs.70
Withdrawal of September 1 = Rs.5,000 x \(\frac{6}{100}\) x \(\frac{4}{12}\) = Rs.100
Withdrawal of December 1 = Rs.4,000 x\(\frac{6}{100}\) x \(\frac{1}{12}\) = Rs.20
_______
Total interest on drawings = Rs.340
________

12.

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

13.

Dr Partner's capital Account Cr
Particulars	Manoj Rs.	Seran Rs.	Particulars	Manoj Rs.	Seran Rs.
To Drawing A/c	20,000	17,500	By Balance b/d	1,00,000	87,500
To Interest on drawings A/c	500	250	By Profit and loss appropriation A/c	10,500	8,250
To Balance c/d (Balancing figure)	1,05,000	84,500	By Interest on capital A/c	6,000	5,250
			By Salary A/c	9,000	-
			By Commission A/c	-	1,250

	1,25,500	1,02,250		1,02,250	1,02,250

			By balance b/d	1,05,000	84,500

14.

Journal entry
Date	Particulars		Debit Rs.	Credit Rs.
2019 January 1	Kavutha's capital A/c	Dr	80,000
	Radha's capital A/c	Dr	60,000
	To Profit and loss A/c			1,40,000
	(Accumulated loss transferred to old partner's capital account in the old profit sharing ratio)

15.

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

16.

Dr. Total Bills receivable account Cr.
Particulars	Rs.	Particulars	Rs.
To Balance b/d	30,000	By Cash	25,000
To Total Debtors	30,000	By Balance c/d	35,000
(Balancing figure)	60,000		60,000

Dr. Total Bills payable account Cr.
Particulars	Rs.	Particulars	Rs.
To Cash	40,000	By Balance b/d	45,000
To Balance c/d	50,000	By Total creditors	45,000
		(Balancing figure)
	90,000		90,000

Dr. Total Debtors account Cr.
Particulars	Rs.	Particulars	Rs.
To Balance b/d	40,000	By Bad debts	2,000
To Sales	1,79,000	By Return inwards	4,000
(balancing figure)		By Discount allowed	3,000
		By Cash	1,00,000
		By Bills receivable	30,000
		(Transfer from bills receivable account)
		By Balance c/d	80,000
	2,19,000		2,19,000

Dr. Total Creditors account Cr.
Particulars	Rs.	Particulars	Rs.
To Discount received	5,000	By Balance b/d	50,000
To Cash	80,000	By Purchases	1,20,000
To Bills payable	45,000	(credit)
(transfer from bills		(Balancing figure)
payable account)
To Balance c/d	40,000
	1,70,000		1,70,000

17.

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

18.

Statement of profit or loss
Particulars	Rs.
Closing capital	32,000
Add: Drawings	4,800
	36,800
Less: Additional capital	8,000
Adjusted closing capital	28,800
Less: Opening capital [B/F]	19,200
Profit made during the year	9,600

19.

Average profit \(=\frac{Total\ profit}{Number\ of\ profits}\)
\(=\frac{16,000+18,000+20,000}{3}\)
\(=\frac{54,000}{4}=Rs. 18,000\)
Normal profit = Capital employed x Normal rate of return
= 1,00,000 x 15%
= Rs.15,000
Super profit = Average profit - Normal profit
= 18,000 - 15,000
= Rs.3,000
Goodwill = Super profit x Value of annuity
= 3,000 x 2.4868
= Rs.7,460.40

20.

Normal profit = Capital employed x Normal rate of return
= 1,00,000 x 10% = Rs. 10,000
Super profit = Average profit - Normal profit
=42,000 - 10,000 = Rs. 32,000
Goodwill = Super profit x Number of years of purchase
=32,000 x 3
=Rs. 96,000

21.

Calculation of adjusted profit
Particulars	2016 Rs.	2017 Rs.	2018 Rs.
Profit	23,000	22,000	25,000
Less: Non - recurring income	2,500	-	-
	20,500	22,000	25,000
Less: Less over valuation of closing stock	-	5,000	-
	20,500	17,000	25,000
Add: Over valuation of opening stock	-	-	5,000
Profit after adjustments	20,500	17,000	30,000

Average profit \(=\frac{Total\ profit}{Number\ of\ years}\)
\(=\frac{20,500+17,000+30,000}{3}\)
\(\frac{67,500}{3}\)
Average profit =Rs. 22,500
Goodwill =Average profitxNumber of years of purchase
=22,500x2=2=45,000
[Note: Over valuation of closing stock in 2017 will result in over valuation of opening stock in 2018]

22.

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

23.

Balance sheet as on 31^st March 20
Liabilities	Rs	Assets	Rs
(balancing figure)	43,550	Cash in hand	19,550
(balancing figure)		Subscription outstanding	2,000
		Furniture	15,000
		Books	7,000
	43,550		43,550

Dr Income and Expenditure Account for the year ended 31^stMarch 2 Cr
Expenditure	Rs.	Rs.	Income	Rs.	Rs.
To Salary	3,000		By Subscriptions	26,500
Add: Outstanding	600	3,600	Add: Outstanding for 2015-16	1,700	28,200
To Newspapers		2,050	By Sale of old newspaper		1,250
To Rent		6,800	By Interest on fixed deposit	450
Add: Outstanding	1,200	8,000	Add: Accrued interest	900	1,350
To Loss on sale of
furniture (7000 - 5700)		1,300
To Surplus		24,850
(Excess of income over
expenditure)
		40,800			40,800

Balance sheet as on 31^st March, 2016
Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Salary outstanding		600	Cash in hand		11,200
Rent outstanding		1,200	Subscription outstanding
Subscription			for 2014 - 15	800
received in advance		500	(2000 - 1200)
Capital fund	43,550		for 2015 - 16	1,700	2,500
Add: Surplus	24850	68,400	Fixed depo		20,000
			Accrued interest on fixed
			deposit		900
			Furniture (15000-7000 + 10,500		18,500
			Books (7,000 + 10,600		17,600
		70,700			70,700

24.

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

25.

Dr In the books of Cricket club Income and Expenditure Account for the year ending 31.3.2 Cr
Expenditure	Rs.	Rs.	Income	Rs.	Rs
To Salaries	2,000		By Subscriptions		10,400
			By Donation		2,000
Add: Outstanding	1,500	3,500	By Entrance fees		500
To Telephone charges		300	(50% of 1000)
To Electricity charges		600	By Bank interest	450
To Entertainment expenses	900		Add: Outstanding interest	150	600
			By Interest on investment		200
Add: Outstanding expense	500	1,400	By Hall rent		300
To Miscellaneous expenses		600
To Depreciation on furniture		375
To Surplus (Excess of income		7,075
over expenditure)
		14,000			14,000