6 Marks Question

Question 16 Marks

From the following trial balance of M/s Amit & Sons as at 31^st, March, 2023 prepare trading and profit and loss account for the year ended 31^st March, 2023 And Balance Sheet as at that date:

Name of Accounts	L.F.	Debit Balance (₹)	Credit Balance (₹)
Capital		-	80,000
Drawings		18,000	-
Sales		-	1,55,000
Purchases		82,600
Stock ( ^("st ") April, 2022)		42,000	-
Returns Outward		-	1,600
Carriage inward		1,200	-
Wages		4,000	-
Power		6,000	-
Machinery		50,000	-
Furniture		14,000	-
Rent		22,000	-
Salary		15,000	-
Insurance		3,600	-
8% Bank Loan		-	25,000
Debtors		20,600	-
Creditors		-	18,900
Cash in hand		1,500	-
Total		2,80,500	2,80,500

Adjustments:
i. Closing Stock ₹ 64,000 .
ii. Wages outstanding ₹ 2,400 .
iii. Bad debts ₹ 600 .
iv. Provision for Doubtful debts to be $5 \%$.
v. Rent is paid for 11 months.
vi. Loan from the bank was taken on 1st Oct. 2022.
vii. Provide depreciation on machinery @ 10\% p.a.
viii. Provide Manager's commission at $10 \%$ on net profit after charging such commission.

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Question 26 Marks

Give Journal Entries for the following adjustments in final accounts:
i. Extract of Trial Balance as on $31^{\text {st }}$ March, 2023

Particulars	Debit (₹)	Credit (₹)
Sundry debtors	6,60,000
Bad debts	15,000
Provision for doubtful debts		40,000

Additional Information:
a. Additional Bad Debts ₹ 20,000 .
b. Maintain the provision for doubtful debts @ $5 \%$ on debtors.
ii. Goods costing ₹ 20,000 were distributed among staff members as free of cost. These goods were purchased paying IGST @ $12 \%$.
iii. Two month's rent @ 15,000 per month is outstanding. Rent is subject to levy of $12 \%$ IGST.
iv. Included in general expenses is annual Insurance Premium of ₹ 10,000 paid for the year ending $30^{\text {th }}$ June, 2023. IGST is levied @ $12 \%$.
v. Accrued commission ₹ 5,000 . IGST is levied @ $12 \%$.

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Question 36 Marks

Govind keeps incomplete records. On 1st April, 2022, his position was as follows:

Liabilities	Amount (₹)	Assets	Amount (₹)
Bank Overdraft	7,500	Cash	6,400
Sundry Creditors	15,000	Stock	52,000
Capital	1,64,500	Sundry Debtors	28,000
		Fixed Assets	1,00,000
		Prepaid Expenses	600
	1,87,000		1,87,000

His position on 31st March, 2023 was as follows :
Cash in hand ₹ 3,000 ; Cash at Bank ₹ 5,000 ; Stock ₹ 44,000 ; Debtors ₹ 21,000 ; Fixed
Assets ₹ 80,000 ; Creditors ₹ 22,000 .
You are informed that Govind has taken stocks worth ₹ 4,500 for his private use and that he has been regularly transferring ₹ 2,000 per month from his business banking account by way of drawings. Out of his drawings, he spent ₹ 15,000 for purchasing a Scooter for the business on 1st October, 2022.
You are requested to find out his profit or loss and to prepare the Statement of Affairs after considering the following:
i. Depreciate Fixed Assets and Scooter by $10 \%$ p.a.
ii. Write off Bad-Debts ₹ 1,000 and provide $5 \%$ for doubtful debts on Sundry Debtors.
iii. Commission earned but not received by him was ₹ 2,500 .

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Question 46 Marks

Siya maintains her books of account from Incomplete Records. Her books provide the following information:

Particulars	1^(st ") April 2022 (₹)	31^(st ") March2023 (₹)
Cash	1,200	4,000
Debtors	16,800	27,200
Stock	22,400	24,400
Investments	________	8,000
Furniture	7,500	8,000
Creditors	14,900	11,600

She withdraws ₹ 500 per month for personal expenses. She sold her Investments ₹ 16,000 at $5 \%$ premium and introduced the amount into a business.
You are required to prepare a Statement of Profit or Loss for the year ending $31^{\text {st }}$ March 2023.

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