Sunday
December 21, 2014

Homework Help: Account

Posted by renu on Friday, October 1, 2010 at 2:15am.

Ques.: The following is the Trial Balance of a trader as at 31st December, 2001:

Debit Balances Rs. Credit Balances Rs.
Stock (1-1-2001)
Sales returns
Purchases
Freight and carriage
Rate, Rent etc.
Salaries and wages
Sundry debtors
Bank Interest
Printing and advertisement
Cash at Bank
Investments
Furniture and fittings
Discounts
General expense
Audit Fees
Insurance
Travelling expenses
Postage and telegrams
Cash in hand
Deposit with Pran
Drawing Account 46,800
8,600
2,43,100
18,600
5,700
9,300
24,000
900
14,600
8,000
5,000
1,800
7,540
3,910
700
600
2,330
870
380
30,000
10,000
4,42,730
Neeru’s capital account
Sales
Purchases returns
Sundry creditors
Bank loan at 6%
Income from investments
Discounts 1,08,090
2,89,600
5,800
14,800
20,000
250
4,190
4,42,730

Adjustments:
(i) Stock at the end was Rs. 78,600
(ii) Included amongst the debtors is Rs. 3,000 due from Zeenat and included amongst the creditors is Rs. 1,000 due to her.
(iii) The effect of advertising not yet expired, a quarter of the amount ‘Printing and Advertising’ is to be carried forward to the next year.
(iv) Reserve 2 per cent for discount on Debtors and create a bad debts reserve at 5 percent.
(v) A depreciation of 10% p.a. is to be written off Furniture and fittings.
(vi) Wages owing on 31st December, 2001 is Rs. 300, salaries owing Rs. 500 and carriage owing Rs. 100.
(vii) Prepaid insurance is Rs. 80.
(viii) Furniture which stood at Rs. 600 in books Ist January, 2001 was disposed of at Rs. 290 on June, in part exchange for new furniture costing Rs. 520. A net invoice at Rs. 230 was passed through the purchase-day book.
(ix) Purchase Invoice amounting to Rs. 400 had been omitted from the books.
(x) A Neon-sign costing Rs. 100 is included in Advertising.
(xi) Two dishonored cheques for Rs. 200 and Rs. 300 respectively has not been entered in the cast book. The first for Rs. 200 is known to be bad. In the case of a second cheque for Rs. 300, it is expected that 75% of it would be realized.
(xii) Private purchase amounting to Rs. 600 had been included in the Purchase Day Book.
(xiii) Charge full year’s interest on Deposit with Pran at 7% p.a.
(xiv) Provide for interest on Bank loan for the amount due.
Prepare Final Accounts.

Q.2 : From the following Balance Sheets of Sriramco, prepare
(a) Statement of Changes in Working Capital, and (b) Funds Flow Statement: Balance Sheet of Sriramco as on 31st December…

Assets
Goodwill
Land and Buildings
Plant
Investments
Book Debts
Stock
Cash in hand and at Bank
Preliminary Expenses




Liabilities
Share Capital
Equity Share Capital
10% Red. Pref. Share Capital
Capital Reserve
General Reserve
P. and L. Account
Proposed Dividend
Sundry Creditors
Provision for Taxation
2000. 2001
Rs.
90,000
2,80,000
1,00,000
30,000
1,80,000
80,000
40,000
20,000 Rs.
80,000
2,00,000
2,00,000
40,000
2,10,000
1,20,000
45,000
10,000
8,20,000 9,05,000





4,00,000
2,00,000
-
60,000
30,000
60,000
30,000
40,000




5,00,000
1,00,000
30,000
80,000
45,000
60,000
45,000
45,000
8,20,000 9,05,000

The following additional information is also available
(a) A machine has been sold for Rs. 40,000 whose written down value was Rs. 36,000.
Depreciation of Rs. 15,000 has been charged on plant in 2001;
(b) A piece of land had been sold out in 2001 and the profit on the sale has been credited to
capital reserve;
(c) An interim dividend of Rs. 30,000 has been paid in 2001;
(d) Income tax paid during 2001 amounts to Rs. 45,000;
(e) Preference Shares were redeemed at 5% premium.

Ques. 3 : The capital structure of Bombay Refrigeration Company Ltd. Consists of an equity share capital of Rs. 3, 00,000 (share of Rs. 10 par value) and Rs. 3,00,000 10% debentures. Sales increased by 20% from 30,000 to 36,000 units, the selling price is Rs. 10 per unit. Variable cost Rs.6 Per unit and fixed costs amount to Rs. 50,000 The company’s tax rate is 50%.

You are required to compute the degree of operating leverage, degree of financial leverage and degree of combined leverage.

Ques. 4: The following details relates to the two machines X and Y:

Machine X Machine Y
Cost
Estimated Life
Estimated salvage value
Working Capital required in the beginning Rs. 56,125 Rs.56,125
5 years 5 years
Rs. 3,000 Rs. 3,000
Rs.10,000 Rs. 20,000


Annual income after tax and depreciation:

Year Rs. Rs.
I 3,275 11,375
II 5,375 9,375
III 7,375 7,375
IV 9,375 5,375
V 11,375 3,375


Overhauling charges at the end of third year Rs. 25,000 on machine X. Depreciation has been charged at straight line method. Discount rate is 10%? P.V.F. at 10% for five years are 0.909, 0.826, 0.751, 0.683 and 0.621. Suggest which project should be accepted.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Accounts - The following is the Trial Balance of a trader as at 31st December, ...
accounting - Accrued salaries 1 Bill’s Company Partial Worksheet For the Year ...
accounting - Is there a method of determining if you debit or credit an account...
quick accounting question - In trial balances, can the account number be on the ...
Accounts - From the following Balance Sheets of Sriramco, prepare (a) Statement ...
accounting - On July 1, 2013, a firm purchased a 1-year insurance policy for $6...
Accounting - On July 1, 2013, a firm purchased a 1-year insurance policy for $6,...
Accounting Question - Below are two questions from my accounting class. I am ...
College Accounting - How do the entries affect account balances and why both ...
Accounting - Please double check me. Indicate whether a debit or credit ...

Search
Members