Financial Statements – With Adjustments — Account STD 11 Commerce — Question

Prepare trading and profit and loss account from the following particulars of M/s Neema Traders as on March 31, 2017.

Stock on March 31, 2017 ₹ 16,000.

Pass the Journal entries rectifying the following errors:

1. Purchases of ₹ 10,000 was omitted to be recorded.
2. Purchases of office furniture of ₹ 10,000 was recorded in Purchases Book.
3. Office Rent of ₹ 15,000 was debited to the Personal Account of the landlord.
4. Old machine sold for ₹ 5,000 was credited to Sales Account.
5. Bill for ₹ 800 received from Mukesh for repair of machinery was entered in the Purchases Book as ₹ 700.

The following trial balance is extracted from the books of M/s Ram on March 31, 2017. You are required to prepare trading and profit and loss account and the balance sheet as on date:

Show the treatment of the following in Final Accounts when given inside the Trial Balance.

1. Prepaid Expenses.
2. Depreciation.
3. Closing Stock.
4. Interest on Capital.
5. Commission received in advance.

Following balances appear in the books of M/s. Amrit as on 1st April, 2018:

2018		₹
1st April	Machinery A/c	60,000
	Provision for Depreciation A/c	36,000

On 1st April, 2018, they decided to dispose off a machinery for ₹ 8,400 which was purchased on 1st April, 2014 for ₹ 16,000.
You are required to prepare the Machinery Account, Provision for Depreciation Account and Machinery Disposal Account for the year ended 31st March, 2019. Depreciation was charged at 10% p.a on Cost following Straight Line Method.

What is the difference between Single Entry System and Double Entry System?

Briefly explain three advantages and three disadvantages of computerised accounting.

The following are the balances extracted from the books of Mr. A. Mukhopadhyay. Prepare a Trial Balance as on 31st March, 2019:

In the following Purchases Return Book, determine the missing information: