3. |
(a) |
Morning, Day and Night Carry on business in partnership sharing the Profits and Losses in the proportion of 25%, 25% and 50% respectively. Their Balance Sheet as on 31.03.2005 was as under: |
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| Liabilities | | Rs. | Assets | Rs. |
Sundry Creditors General Reserves Capitals— Morning Day
Night |
24,00,000 24,00,000
50,00,000 |
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1,20,000 80,000
98,00,000 |
Cash/Bank Sundry Debtors Inventories Fixed Assets W.D.V Investment (At cost) (Market Value Rs. 15,00,000/-) |
1,00,000 75,00,000 10,00,000 4,00,000
10,00,000 |
| 1,00,00,000 | | 1,00,00,000 |
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On 1st April, 2005, Morning and Day retired and Night continued the business. Night paid Rs. 36,00,000 to Morning and Rs. 36,00,000 to Day in full and final discharge of their claim in the partnership. This amount was brought in by Night for the purpose of payment to the retiring partners. None of the assets and liabilities are to be revalued. |
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You are asked to:
(i) | Pass accounting entries in relation to the above in the books of business Unit. |
(ii) | Prepare the Balance Sheet of business Unit after the above transactions are recorded. |
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8 |
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(b) |
The Balance in Profit & Loss Account as per Balance Sheet as at 31st March, 2004 is Rs. 32,600, whereas the Balance on Balance Sheet as at 31st March, 2005 is Rs. 38,100. The following facts are ascertained:
(i) | Rs. 7,500 depreciation has been charged; |
(ii) | Provision for dividend Rs. 10,000 has been made; |
(iii) | Rs. 9,500 has been transferred to General Reserve; |
(iv) | Rs. 1,000 Davidend (Gross) has been credited; |
(v) | Rs. 3,300 Loss on Sale of Fixed Assets has been debited; |
(vi) | Indirect Expenses debited amount to Rs. 30,200 in total. |
Find out Gross Profit, Trading Profit and Net Profit. |
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6 |
4. |
Given below is the relevant portion of Trail Balance as on 31.03.2005. You are asked to give adjustment entries and open necessary Ledger Accounts after taking into consideration the information under the Trail Balance. Prepare also adjusted Trial Balance as on 31.03.2005; |
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Trial Balance as on 31.03.2005 |
Materials Consumed Stock as on 31.03.2005 Suspense A/c of N. K. Sinha Suspense A/c of S. K. Sinha Other Balance |
Dr. Rs. 3,75,000 50,000
7,500 |
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Cr. Rs.
20,000
4,12,500 |
| 4,32,500 | | 4,32,500 |
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Information: |
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(i) |
Analysis of N. K. Sinha's account reveals that goods costing Rs. 30,000 were sent to him under consignment agreement. All the goods were sold except ¼ (which was valued at cost) for Rs. 50,000 against which a cheque of Rs. 20,000 only was received. No entry was passed except that of cheque received. Commission @ 1% is payable to N. K. Sinha. |
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(ii) |
Similarly a joint venture agreement ws entered into with S. K. Sinha for which an advance of Rs. 7,500 was made. It is now ascertained that the venture earned a Profit of Rs. 5,000 of which the proprietor's share is 3/5 ths. |
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