CA Foundation Question Paper with Solution Dec 2023 - ACCOUNTS
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State with reason, whether the following statement is true or false:
(i) The financial statements must disclose all the relevant and reliable information in accordance with the Full Disclosure Principle.
Answer : True, The financial statements must disclose all the relevant and reliable information in accordance with the Full Disclosure Principle.
(ii) The gain from sale of capital assets is added to revenue to ascertain the net profit of the business.
Answer :
(iii) Depreciation is non-cash and non-operating expense which is to be provided for if there are profits.
Answer :
(iv) Sum of the year's digit method is an example of accelerated method of charging depreciation.
Answer : True, Higher depreciation is charged in earlier years under some years digit method.
(v) Inauguration expenses of 10 lakhs incurred on the new unit in an existing business is a capital expenditure.
Answer :
(vi) Discount column of cash book records the trade discount.
Answer :
Briefly explain the following term :
(i) Conversion Cost :
Answer :
(ii) Diminishing Balance Method :
Answer :
(iii) Money Measurement Concept :
Answer :
(iv) Realisation Concept :
Answer :
From the following information, ascertain the value of Closing Stock as on 31 March, 2023.
| Particulars | (₹) |
| Opening Stock | 1,47,500 |
| Cash Sales | 5,50,000 |
| Credit Sale | 4,00,000 |
| Purchases | 8,85,000 |
| Manufacturing Expenses | 1,35,000 |
| Advertisement Expenses | 43,000 |
| Rate of Gross Profit on Cost | 25% |
At the time of valuing inventory as on 31st March, 2022, a sum of ₹ 12,500 was written off on a particular item, which was originally purchased for ₹ 50,000 and was sold during the year for ₹ 40,000.
Answer :
Statement of Stock as on 31st March, 2023
| ₹ | ₹ | ||
| Inventory as on 1st April, 2022 | 1,47,500 | ||
| Less: | Book value of abnormal inventory (₹ 50,000 - ₹ 12,500) | 37,500 | 1,10,000 |
| Add: | Purchases | 8,85,000 | |
| Manufacturing Expenses | 1,35,000 | ||
| 11,30,000 | |||
| Less: | Cost of goods sold: | ||
| Sales as per books (cash sales + credit sales) | 9,50,000 | ||
| Less: Sales of abnormal item | 40,000 | ||
| 9,10,000 | |||
| Less: Gross Profit @ 20% (25% on cost, so 20% on sales) | 1,82,000 | 7,28,000 | |
| Closing Stock as on 31st March, 2023 | 4,02,000 | ||
Answer :
ABC sports club had the following income and expenditure account for the year ended 31st Dec 2022.
Income and Expenditure Account for the year ended 31 Dec 2022
| Particular | Amount ₹ | Particular | Amount ₹ |
| To Salaries | 2,35,000 | By Subscriptions | 2,50,000 |
| To Stationary Expenses | 30,000 | By Interest | 90,000 |
| To Rent and Taxes | 5,000 | By Donations | 40,000 |
| To Insurance | 2,000 | By Misc. Receipts | 3,000 |
| To Office Expenses | 8,000 | ||
| To Depreciation | |||
| Building | 37,500 | ||
| Furniture | 1,200 | ||
| Sports Equipment | 1,000 | ||
| To Excess of Income over Expenditure | 63,300 | ||
| 3,83,000 | 3,83,000 |
Additional information :
| 31-12-2021 (₹) | 31-12-2022 (₹) | |
| Govt. securities | 18,00,000 | 18,00,000 |
| Subscription outstanding | 70,000 | 1,00,000 |
| Subscription received in advance | 2,000 | 6,000 |
| Salaries unpaid | 10,000 | 15,000 |
| Furniture | 20,000 | 19,800 |
| Land and Building | 20,00,000 | 19,62,500 |
| Sports Equipment | 35,000 | 39,000 |
| Stock of stationary | 3,000 | 5,500 |
Cash in hand and Cash at bank as on 31-12-2021 is ₹ 1,08,000.
You are required to prepare Receipts and Payments Account for the period ending 31.12.2022 and Balance Sheet as on 31.12.2022.
Answer :
Receipts and Payments Account for the period ending 31.12.2022
| Particular | ₹ | Particular | ₹ |
| Opening balance | 1,08,000 | By Salaries (WN 1) | 2,30,000 |
| To Subscriptions (WN 3) | 2,24,000 | By Stationary Expenses (WN 2) | 32,500 |
| To Interest | 90,000 | By Rent and Taxes | 5,000 |
| To Donations | 40,000 | By Insurance | 2,000 |
| To Misc. Receipts | 3,000 | By Office Expenses | 8,000 |
| By Furniture (WN 4) | 1,000 | ||
| By Sports equip (WN 5) | 5,000 | ||
| By Bal. c/d | 1,81,500 | ||
| 4,65,000 | 4,65,000 |
Balance sheet as on 31.12.2022
| Liabilities | (₹) | Asset | ₹ |
| Op. Capital(WN 6) | 40,24,000 | Govt. securities | 18,00,000 |
| Surplus | 63,300 | Subscription outstanding | 1,00,000 |
| Subscription received in advance | 6,000 | Furniture | 19,800 |
| Unpaid Salary | 15,000 | Land and Building | 19,62,500 |
| Sports Equipment | 39,000 | ||
| Stock of stationery | 5,550 | ||
| Cash/Bank | 1,81,500 | ||
| 41,08,300 | 41,08,300 |
Working Note 1
Salary paid in cash/bank during the year
| Particular | ₹ |
| opening balance (31-12-22) | 2,35,000 |
| Less : salary unpaid (31-12-22) | 15,000 |
| Add : salary unpaid (31-12-21) | 10,000 |
| Salary paid in cash/bank during the year | 2,30,000 |
Working Note 2
Stationary Purchase during the year
| Particular | ₹ |
| Stationary consume (31-12-22) | 30,000 |
| Add: closing stock | 5,500 |
| Less : opening balance | 3,000 |
| Stationary Purchase during the year | 32,500 |
Working Note 3
Cash/Bank- Subscriptions received during the year
| Particular | ₹ |
| Income recognized during the year | 2,50,000 |
| Add : Subscription outstanding(31-12-22) | 70,000 |
| Add : Subscription received in Advance ( 31-12-22) | 6,000 |
| Less : Subscription outstanding (31-12-21) | 1,00,000 |
| Less : received in advance ( 31-12-21) | 2,000 |
| cash/bank Subscription received during the year | 2,24,000 |
Working Note 4
Purchase furniture during the year
| Particular | ₹ |
| Closing balance | 19,800 |
| less: Depreciation | 1,200 |
| Opening Balance | 20,000 |
| Purchase furniture during the year | 1,000 |
Working Note 5
Purchase Sports Equipment during the year
| Particular | ₹ |
| Closing balance | 39,000 |
| less: Depreciation | 1,000 |
| Opening Balance | 35,000 |
| Purchase Sports Equipment during the year | 5,000 |
Working Note 6
Balance sheet as on 31.12.2021
| Liabilities | (₹) | Asset | ₹ |
| Op. Capital Balancing (fig) | 40,24,000 | Govt. securities | 18,00,000 |
| Subscription received in advance | 2,000 | Subscription outstanding | 70,000 |
| Unpaid Salary | 10,000 | Furniture | 20,000 |
| Land and Building | 20,00,000 | ||
| Sports Equipment | 35,000 | ||
| Stock of stationery | 3,000 | ||
| Cash/Bank | 1,08,000 | ||
| 40,36,000 | 40,36,000 |
Give the journal entries in the books of P. Also show R's account in P's books.
Answer :
In the books of P
Journal Entries
| Date | Particulars | L.F. | DR. (in ₹) | CR. (in ₹) | |
| 01/07/2022 | R A/c | Dr. | 2,00,000 | ||
| To Bills payable A/c | 2,00,000 | ||||
| (Being bill of exchange accepted and sent to Mr. R) | |||||
| 01/07/2022 | Bank A/c | Dr. | 75,200 | ||
| Discount charges A/c | Dr. | 4,800 | |||
| To R A/c | 80,000 | ||||
| (Being the amount received from X on account of the bills receivable) | |||||
| 04/11/2022 | Bills payable A/c | Dr. | 2,50,000 | ||
| To R A/c | 2,50,000 | ||||
| (Being the bills honoured) | |||||
| 04/11/2022 | Bank A/c | Dr. | 2,36,250 | ||
| Discount charges A/c | Dr. | 13,750 | |||
| To Bills receivable A/c | 2,50,000 | ||||
| (Being X acceptance discounted with bank) | |||||
| 04/11/2022 | Bills receivable A/c | Dr. | 2,00,000 | ||
| To R A/c | 2,00,000 | ||||
| (Being the new bills accepted by R) | |||||
| 04/11/2022 | R A/c | Dr. | 66,984 | ||
| To Bank A/c | 56,700 | ||||
| To Discount account | 10,284 | ||||
| (Being the amount received, and the discount debited to R) | |||||
| 07/03/2023 | R A/c | Dr. | 2,50,000 | ||
| To Bank A/c | 2,50,000 | ||||
| (Being R’s acceptance which was discounted dishonored due to R’s bankruptcy) | |||||
| 07/03/2023 | Bank A/c | Dr. | 93,492 | ||
| Bad debts A/c | Dr. | 93,492 | |||
| To R A/c | 1,86,984 | ||||
| (The amount received from R and the balance being written off as debt) |
R' A/C
| Particulars | (₹) | Particulars | Cr.(₹) |
| To Bills payable A/c | 2,00,000 | By cash | 75,200 |
| To Bank | 2,50,000 | By Disc | 4,800 |
| To Disc | 10,284 | By B/R | 2,50,000 |
| To cash | 56,700 | By Bank | 93,492 |
| By Bad debt A/c | 93,492 | ||
| 5,14,950 | 5,14,950 |
Mr. B and Mr. G had the following mutual dealings and allow each other one month's credit. At the end of three months the accounts rendered are as follow:
| Date | Goods sold by Mr. B to Mr. G (₹) | Date | Goods sold by Mr. G to Mr. B (₹) |
| July 20 | 35,000 | July 25 | 24,000 |
| Aug 17 | 30,000 | Aug 16 | 22,000 |
| Sep 13 | 32,000 | Sep 05 | 25,000 |
You are required to calculate the date upon which the balance should be paid so that no interest is due either to Mr. B or Mr. G (consider 20 Aug. as base date)
Answer :
Attempt any ONE of the following two sub-parts i.e. either (i) or (ii)
(i) From the following particulars prepare account current, as sent by Rose to Lily as on 31st March, 2023 by means of product method charging interest @ 6% p.a.
| ₹ | ||
| 01/01/2023 | Balance due from Lily | 8,500 |
| 10/01/2023 | Sold goods to Lily | 14,700 |
| 15/01/2023 | Purchased goods from Lily | 10,200 |
| 20/01/2023 | Goods returned by Lily | 2,500 |
| 25/02/2023 | Lily paid by cheque | 9,500 |
Answer :
XY in Account Current with AB as on 31.03.23
| Date | Particular | Due date | (₹) | Days | Product (₹) | Date | Particular | Due date | (₹) | Days | Product (₹) |
| 1-1-23 | To Bal. b/d | 1-1-23 | 8,500 | 90 | 7,65,000 | 15-1-23 | By Purchase | 15-1-23 | 10,200 | 75 | 7,65,000 |
| 10-1-23 | To Sales | 10-1-23 | 14,700 | 80 | 11,76,000 | 20-2-23 | By Sales Returns | 20-1-23 | 2,500 | 70 | 1,75,000 |
| 31-3-23 | To Interest | - | 111.45 | - | - | 25-2-23 | By Bank | 25-2-23 | 9,500 | 34 | 3,23,000 |
| 31-3-23 | By Balance of Products | - | - | - | 6,78,000 | ||||||
| By Bal. c/d | - | 1111.45 | - | - | |||||||
| 23,311.45 | 23,311.45 |
Note:
Interest = ₹ 6,78,000 x 6/100 x 1/365 =₹111.45(approx.)
(ii) Mr. X consigned goods costing ₹ 1,50,000 to Mr. Y and spent ₹ 1,800 on insurance. Mr. Y received the goods and spent ₹ 2,000 on freight. He also spent ₹ 1,500 on godown rent. Mr. Y sent bank draft of ₹ 50,000 to Mr. X as advance payment and sent his Account sales showing that 4/5 of the goods had been sold for ₹ 1,40,000. Mr. Y is entitled to a commission of 8%. One of customers turned insolvent and could not pay ₹ 5,000 due from him. (Commission does not include del-credere).
Show the necessary journal entries in the consignee's book.
Answer :
Journal Entries in the books of Consignee
| Date | Particulars | ₹ | ₹ | |
| i | X A/c | Dr. | 2,000 | |
| To Bank A/c | 2,000 | |||
| (To record the freight expenses incurred by Mr. Y.) | ||||
| ii | X A/c | Dr. | 1,800 | |
| To Bank A/c | 1,800 | |||
| (To record the insurance expenses incurred by Mr. Y.) | ||||
| iii | X A/c | Dr. | 1,500 | |
| To Bank A/c | 1,500 | |||
| (To record the godown rent expenses incurred by Mr. Y.) | ||||
| iv | X A/c | Dr. | 1,50,000 | |
| To bank A/c | 1,50,000 | |||
| (To record the cost of goods sent to Mr. Y.) | ||||
| v | Cash / Debtores | Dr. | 1,40,000 | |
| To X A/c | 1,40,000 | |||
| (To record the sales made by Mr. Y.) | ||||
| vi | X A/c | Dr. | 11,200 | |
| To Commission A/c | 11,200 | |||
| ( Commission to be paid to Y - 1,40,000 X 8%) | ||||
| vii | X A/c | Dr. | 5,000 | |
| To Debtores A/c | 5,000 | |||
| (Customer turned insolvent) |
The following is the schedule of balances as on 31.03.23 extracted from the M/s RM & Co.
| Particulars | Dr. ₹ | Cr. ₹ |
| Bank charges | 24,000 | |
| Buildings | 9,00,000 | |
| Capital A/c | 19,48,000 | |
| Carriage Outwards | 30,000 | |
| Cash at bank | 39,000 | |
| Cash in hand | 21,000 | |
| Discount allowed | 36,000 | |
| Discount received | 24,000 | |
| Drawings | 1,80,000 | |
| Electricity Charges | 33,000 | |
| Freight on purchases | 18,000 | |
| Furniture & fixtures | 3,21,000 | |
| General office expenses | 45,000 | |
| Insurance Premium | 82,500 | |
| Interest on loan | 35,000 | |
| Loan | 6,00,000 | |
| Printing and Stationery | 27,000 | |
| Purchase Returns | 39,000 | |
| Purchases | 21,30,000 | |
| Rent for Godown | 82,500 | |
| Salaries | 1,65,000 | |
| Sales | 35,50,000 | |
| Sales Returns | 63,000 | |
| Stock on 1.4.2022 | 9,30,000 | |
| Sundry Creditors | 6,45,000 | |
| Sundry Debtors | 12,90,000 | |
| Vehicles | 3,00,000 | |
| Vehicles running expenses. | 54,000 | |
| TOTAL | 68,06,000 | 68,06,000 |
Prepare Trading and Profit & Loss Account for the year ended 31st March 2023 and the Balance Sheet as at that date after making provision for the following:
(i) Value of stock as on 31.03.2023 is ₹ 4,10,000. This includes goods returned by customers on 31st March, 2023 to the value of ₹ 22,000 for which no entry has been passed in the books.
(ii) Purchases include furniture purc 01.10.2022 for ₹ 30,000.
(iii) Depreciate:
(iv) Sundry debtors include ₹ 35,000 due from Goku and Sundry creditors include ₹ 25,000 due to him
(v) Provision for bad debts is to be maintained at 4% of Sundry Debtors.
(vi) Insurance premium includes ₹ 42,000 paid towards proprietor's life insurance policy and the balance of the insurance charges cover the period from 1.05.2022 to 30.4.2023.
Answer :
M/s RM & Co.
Trading A/c for the year ended 31st March 2023
| Particulars | Amount ₹ | Particulars | Amount ₹ | ||
| To Opening Stock | 9,30,000 | By Sales | 35,50,000 | ||
| To Purchases | 21,30,000 | Less: Sale Returns | (63,000) | ||
| Less: Purchase Returns | (39,000) | Less: Goods returned by customers on 31.3.23 | (22,000) | 34,65,000 | |
| Less: Furniture included in purchase | (30,000) | 20,61,000 | By Closing Stock | 4,10,000 | |
| To Freight on purchase | 18,000 | ||||
| To Gross Profit c/d (Bal. fig.) | 8,66,000 | ||||
| 38,75,000 | 38,75,000 |
Profit/Loss Account for the year ended 31st March, 2023
| Particulars | Amount ₹ | Particulars | Amount ₹ |
| To Salaries | 1,65,000 | By Gross profit b/d | 8,66,000 |
| To Bank Charges | 24,000 | By Discount received | 24,000 |
| To Carriage outwards | 30,000 | ||
| To Discount Allowed | 36,000 | ||
| To Electricity charges | 33,000 | ||
| To General expenses | 45,000 | ||
| To Insurance premium (WN 1) | 37,125 | ||
| To Interest on loan | 35,000 | ||
| To Provision for doubtful debts (WN 3) | 49,720 | ||
| To Printing and stationery | 27,000 | ||
| To Rent for Godown | 82,500 | ||
| To Vehicles running expenses | 54,000 | ||
| To Depreciation (WN 2) | 1,38,600 | ||
| To Net Profit transferred to Capital a/c | 1,33,055 | ||
| 8,90,000 | 8,90,000 |
Balance Sheet of M/s RM & Co.
as at 31st March 2023
| Liabilities | Amount ₹ | Assets | Amount ₹ | ||
| Capital | 19,48,000 | Building | 9,00,000 | ||
| Add: Net Profit | 1,33,055 | Less: Dep. | (45,000) | 8,55,000 | |
| Less: Drawings | (1,80,000) | Vehicles | 3,00,000 | ||
| Less: Insurance Premium | (42,000) | 18,59,055 | Less: Dep. | (60,000) | 2,40,000 |
| Loan | 6,00,000 | Furniture & Fixture | 3,21,000 | ||
| Sundry Creditors | 6,45,000 | Add: Addition included in purchase | 30,000 | ||
| Less: Goku | 25,000 | 6,20,000 | Less: Dep. (WN 2) | (33,600) | 3,17,400 |
| Stock in Trade | 4,10,000 | ||||
| Sundry Debtors (WN 3) | 11,93,280 | ||||
| Cash in hand | 21,000 | ||||
| Cash at bank | 39,000 | ||||
| Prepaid insurance (WN 1) | 3,375 | ||||
| 30,79,055 | 30,79,055 |
Working Notes :
(1). Insurance premium
| ₹ | |
| Insurance premium as given in trial balance | 82,500 |
| Less: Personal premium | (42,000) |
| 40,500 | |
| Less: Prepaid for 1 month [(40500/12) x 1] | (3,375) |
| Transfer to P/L a/c | 37,125 |
(2) Depreciation
| ₹ | ||
| Building @ 5% on 9,00,000 | 45,000 | |
| Vehicles @ 20% on 3,00,000 | 60,000 | |
| Furniture & Fixtures | ||
| 3,21,000 @ 10% | 32,100 | |
| 30,000 @ 10% for 6 months (Included in purchase) | 1,500 | 33,600 |
| Total | 1,38,600 |
(3) Debtors
| Particulars | Amount ₹ |
| Opening Balance | 12,90,000 |
| Less: Return by customer on 31.3.23 | 22,000 |
| Less: Goku | 25,000 |
| 12,43,000 | |
| Less: Provision for doubtful debts @ 4% | 49,720 |
| 11,93,280 |
P, Q and R are the 3 partners in partnership firm. Partnership deed includes the following
(i) R is entitled to get salary of ₹ 10,000 p.a.
(ii) P, Q and R are to get interest @ 6% on their respective capital of ₹ 2,50,000; ₹ 1,50,000 and ₹ 1,00,000.
(iii) R is to get extra benefit of 10% of profit in excess of ₹ 50,000 after providing for (i) and (ii) mentioned above.
(iv) Q is entitled to 10% of profits after providing all the amounts in para (i), (ii) and (iii)mentioned above.
(v) The balance of profits will be shared by P. Q and R is ratio of 5: 3:2.
The profits for the year before providing above items are ₹ 3,50,000.
You are required to prepare Profit and Loss Appropriation Account.
Answer :
X, Y and Z were partners sharing profit and losses in the ratio of 5: 3: 2. Their Balance Sheet as on 31 March 2023 is as follows.
Balance Sheet as on 31 March 2023
| Liabilities | Amount ₹ | Assets | Amount ₹ |
| Capital Accounts | Building | 2,00,000 | |
| X | 4,25,000 | Machinery | 3,50,000 |
| Y | 2,55,000 | Debtors | 1,95,000 |
| Z | 1,40,000 | Stock | 1,05,000 |
| General Reserve | 25,000 | Bank | 25,000 |
| Trade Creditors | 30,000 | ||
| 8,75,000 | 8,75,000 |
Y retired from the business on 1 April 2023 on the following terms:
(i) To appreciate building by 20% and to depreciate machinery by 5%.
(ii) Provision for doubtful debts is to create at 10%
(iii) Goodwill of the firm is valued at 1,60,000 and Goodwill is not to be raised in the books of accounts. New profit sharing ratio will be 5:3.
(iv) Entire sum payable to Y should be brought by X and Z in such a way to make their capital ratios according to new profit ratio. Balance of Y to be paid immediately.
You are required to prepare Revaluation Account, Partners Capital Accounts and Balance Sheet after retirement.
Answer :
Revaluation Account
| (₹) | (₹) | ||
| To Machinery | 17,500 | By Building | 40,000 |
| To Provision for doubtful debts | 19,500 | ||
| To Partners’ Capital A/cs (Profit on revaluation) | |||
| X (5/10) - 1500 | |||
| Y (3/10) - 900 | |||
| Z (2/10) - 600 | 3,000 | ||
| 40,000 | 40,000 |
Partners’ Capital Accounts
| X (₹) | Y (₹) | Z (₹) | X (₹) | Y (₹) | Z (₹) | ||
| To Y's Capital A/c (WN 2) | 20,000 | - | 28,000 | By Balance b/d | 4,25,000 | 2,55,000 | 1,40,000 |
| To Bank A/c (settlement bal. fig.) (WN 1) | - | 3,11,400 | - | By General Reserve | 12,500 | 7,500 | 5,000 |
| To Balance c/d | 4,19,000 | - | 1,17,600 | By X's and Z's Capital A/c (WN 2) | - | 48,000 | - |
| By Revaluation A/c | 1,500 | 900 | 600 | ||||
| 4,39,000 | 3,11,400 | 1,45,600 | 4,39,000 | 3,11,400 | 1,45,600 | ||
| To Balance c/d (WN 4) | 5,14,375 | - | 3,08,625 | By Balance b/d | 4,19,000 | - | 1,17,600 |
| By Bank A/c (bal. fig.) | 95,375 | - | 1,91,025 | ||||
| 5,14,375 | - | 3,08,625 | 5,14,375 | - | 3,08,625 |
Balance Sheet after retirement
| Liabilities | (₹) | Assets | (₹) |
| X's Capital A/c | 5,14,375 | Building (2,00,000 + 40,000) | 2,40,000 |
| Z's Capital A/c | 3,08,625 | Machinery (3,50,000 - 17,500) | 3,32,500 |
| Trade Creditors | 30,000 | Debtors (1,95,000 - provision 19,500) | 1,75,500 |
| Stock | 1,05,000 | ||
| 8,53,000 | 8,53,000 |
Working Notes:
1. Bank A/c
| (₹) | Assets | (₹) | |
| To Balance b/d | 25,000 | By Y's Capital A/c | 3,11,400 |
| To X's Capital A/c | 1,91,025 | ||
| To Z's Capital A/c | 95,375 | ||
| 3,11,400 | 3,11,400 |
2. Calculation of gaining ratio
| X | Y | Z | |
| Old Profit sharing ratio | 5/10 | 3/10 | 2/10 |
| New Profit sharing ratio | 5/8 | 3/8 | |
| Gain | 5/40 | 7/40 |
Gaining ratio = 5:7
3. Goodwill
Goodwill of the firm is valued at ₹ 1,60,000
Y's share = 1,60,000 x 3/10 = ₹ 48,000
to be provided by X and Z in the gaining ratio 5:7
X's share = 48,000 x 5/12 = ₹ 20,000
Z's share = 48,000 x 7/12 = ₹ 28,000
4. Capital of partners after Y's retirement
| (₹) | |
| Balance of X and Z Capital (4,19,000 + 1,17,600) | 5,36,600 |
| Add: Amount required to pay to Y | 3,11,400 |
| 8,48,000 | |
| Less: Balance in Bank | (25,000) |
| Total Capital | 8,23,000 |
| X's new capital balance = 8,23,000 x 5/8 | 5,14,375 |
| Z's new capital balance = 8,23,000 x 3/8 | 3,08,625 |
From the following transactions of a concern, prepare the Machinery Account for the year ending 31st Dec, 2022:
| 01.01.21 | Purchased a second-hand Machinery for ₹ 2,00,000 |
| 01.01.21 | Spent ₹ 50,000 on repairs for making it serviceable |
| 30.06.21 | Purchased additional new Machinery for ₹ 3,50,000 |
| 30.06.21 | Installation charge of new Machine ₹ 15,000 |
| 01.04.22 | Repairs and maintenance of Machinery ₹ 30,000 |
| 30.06.22 | Sold second hand Machinery purchased on 01.01.21 for ₹ 1,55,000 |
| 31.12.22 | Depreciate the Machinery at 10% per annum by WDV method |
Answer :
Prepare Triple Column Cash Book from the following transactions of G. Entreprise for the month of Jan 2023.
| Date | Particulars | Amount ₹ |
| 01-01-2023 | Cash in hand | 14,500 |
| Cash at Bank | 1,95,000 | |
| 03-01-2023 | Received from K | |
| - Cash | 7,300 | |
| - Cheque | 15,000 | |
| Discount allowed to him | 400 | |
| 06-01-2023 | Goods sold for cash | 9,100 |
| 07-01-2013 | Withdrew from bank by self-cheque | 3,000 |
| 12-01-2023 | Issued a cheque to B | 10,590 |
| Discount received | 410 | |
| 14-01-2023 | Received a cheque from R (in full settlement of her account ₹ 6,500) by cheque | 6,350 |
| 17-01-2023 | Withdrew from bank for personal use notes | 15,000 |
| 18-01-2023 | Paid electricity bill by cheque | 5,000 |
| 20-01-2023 | Cash purchases of stationary | 1,200 |
| 31-01-2023 | Deposit the entire cash in bank in excess of ₹ 10,000 |
Answer :
Triple Column Cash Book
| Dr. | Cr. | ||||||||
| Date | Particulars | Discount | Cash | Bank | Date | Particulars | Discount | Cash | Bank |
| 2023 | ₹ | ₹ | ₹ | 2023 | ₹ | ₹ | ₹ | ||
| Jan. 1 | To Balance b/d | - | 14,500 | 1,95,000 | Jan. 7 | By Cash (C) | - | - | 3,000 |
| Jan. 3 | To K's A/c | 400 | 7,300 | 15,000 | Jan. 12 | By B's A/c | 410 | - | 10,590 |
| Jan. 6 | To Sales A/c | - | 9,100 | - | Jan. 17 | By Drawings | - | - | 15,000 |
| Jan. 7 | To Bank A/c (C) | - | 3,000 | - | Jan. 18 | By Electricity Bill | - | - | 5,000 |
| Jan. 14 | To R's A/c | 150 | - | 6,350 | Jan. 20 | By Stationery | - | 1,200 | - |
| Jan. 31 | To Cash (C) (excess cash deposited) | - | - | 22,700 | Jan. 31 | By Bal c/d | - | 10,000 (given) | 2,05,460 |
| Jan. 31 | By Bank (Bal. fig.) (C) | - | 22,700 | - | |||||
| 550 | 33,900 | 2,39,050 | 410 | 33,900 | 2,39,050 |
Note:
(1) Discount allowed and discount received ₹ 550 and ₹ 410 respectively should be posted in respective Accounts in the ledger.
A Ltd issued 25000 equity shares of ₹ 100 each at a premium of ₹ 25 per share payable as follows:
| On Application | ₹ 50 |
| On Allotment | ₹ 50 including premium, and |
| On Final Call | ₹ 25 |
Applications were received for 29000 shares. Letter of regret were issued to applicants for 4000 shares and shares were allotted to all other applicants.
Mr. A, the holder of 150 shares, failed to pay the allotment and call money, the shares were forfeited.
Show the journal entries and cash book in the books of A Limited.
Answer :
In the Books of A Ltd.
Journal Entries
| Date | Particulars | Amount (₹) Dr. | Amount (₹) Cr. | |
| Bank A/c (29,000 X 50) | Dr. | 14,50,000 | ||
| To Equity share Application A/c | 14,50,000 | |||
| (Being application money received on 29,000 shares @ ₹ 50 each) | ||||
| Equity Share Application A/c (29,000 X 50) | Dr. | 14,50,000 | ||
| To Bank A/c (4,000 X 50) | 2,00,000 | |||
| To Equity Share Capital A/c (25,000 X 50) | 12,50,000 | |||
| (Being application money on 25,000 shares @ ₹ 50 each transferred to Equity Share Capital Account and excess money refunded on 4,000 shares @ ₹ 50 each as per Board’s Resolution No……dated…) | ||||
| Equity Share Allotment A/c (25,000 X 50) | Dr. | 12,50,000 | ||
| To Equity Share Capital A/c (25,000 X 25) | 6,25,000 | |||
| To Security premium A/c (25,000 X 25) | 6,25,000 | |||
| (Being allotment money on 25,000 shares @ ₹ 50 per share including premium of ₹ 25 per share being made due as per Board’s Resolution No……dated….) | ||||
| Bank A/c (24,850 X 50) | Dr. | 12,42,500 | ||
| To Equity Share allotment A/c (24,850 X 50) | 12,42,500 | |||
| (Being allotment money received on 24,850 shares @ ₹ 50 each) | ||||
| Equity Share Final Call A/c (25,000 X 25) | Dr. | 6,25,000 | ||
| To Equity Share Capital A/c (25,000 X 25) | 6,25,000 | |||
| (Being final call money on 25,000 shares @ ₹ 25 per share being made due as per Board’s Resolution No……dated….) | ||||
| Bank A/c (24,850 X 25) | Dr. | 6,21,250 | ||
| To Equity Share Final Call A/c (24,850 X 25) | 6,21,250 | |||
| (Being final call money received on 24,850 shares @ ₹ 25 each) | ||||
| Equity Share Capital A/c (150 X 100) | Dr. | 15,000 | ||
| Security premium A/c (150 X 25) | Dr. | 3,750 | ||
| To Share forfeiture A/c (150 X 50) | 7,500 | |||
| To Equity Share allotment A/c (150 X 50) | 7,500 | |||
| To Equity Share Call A/c (150 X 25) | 3,750 | |||
| (Being forfeiture of 150 shares for non-payment of allotment money and final call money as per Board’s Resolution No….dated…) |
Cash Book (Bank Columns)
| Particulars | Amount (₹) | Particulars | Amount (₹) |
| To Equity Share Application | 14,50,000 | By Equity Share Application | 2,00,000 |
| To Equity Share Allotment A/c | 12,42,500 | By Balance c/d | 31,13,750 |
| To Equity Share Final Call A/c | 6,21,250 | ||
| 33,13,750 | 33,13,750 |
What are the sub-fields of accounting?
Answer :
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