Reference no: EM132399187

Business Accounting Questions -

1) Find out net purchase price from the following instructions:

a) List Price - Rs. 7500

b) Trade discount @ 5%

c) Cash discount @ 2.5%

2) X ltd. purchased a machine for Rs.100000 on 01.01.2016 and incurred Rs.10000 for its installation. On 01.07.2017, the company purchased another machine for Rs. 50000. On 01.10.2017, the company sold half of the machinery which it purchased on 01.01.2016 for Rs.45000. Rate of depreciation is 10% p.a. on straight line method. The accounting year is the calander year.

Prepare Machinery Account and Provision for Depreciation Account for the year 2016 and 2017.

3) From the following transactions pass the journal entries:

a) 01.06.2016 - Started business with cash - Rs.6000.

b) 04.06.2016 - Purchased goods for resale - Rs. 700.

c) 11.06.2016 - Bought stationery - Rs. 130.

d) 15.06.2016 - Purchased goods for personal use - Rs.750.

e) 29.06.2016 - Paid for advertisement - Rs. 550.

f) Ajmal Khan drew out of bank Rs. 800 to pay premium on his life policy. He was allowed 2.5% rebate by insurance company net premium was paid in cash, balance retained in business.

g) Salary of Feb 2017 Rs. 10000 not paid till 31.03.2017.

h) Rent of April 2017 Rs.3000 was paid in March 2017.

i) Interest of March 2017 Rs. 5000 not received till 31.03.2017.

j) Incentive for the year 2017-18 Rs. 20000 received on 31.03.2017.

k) Rent to landlord of Rs. 2000 not paid till the end of the year.

4) Following is the Trial Balance of a trader as on 31.12.2016. Prepare Trading, Profit & Loss Account and Balance Sheet for the year ended 31.03.2016

The following adjustments are to be made:

a) Closing stock as on 31.12.2016 - Rs. 3250

b) Depreciate building @ 5%, Furniture & Fixtures @ 10% and Vehicles @ 20%

c) Rs.85 is due for interest on Bank Overdraft

d) Salaries Rs. 300 and Taxes Rs. 120 are outstanding

e) Insurance amounting to Rs.100 is prepaid

f) 1/3rd of the commission received is in respect of work to be done next year

g) Write off a further sum of Rs. 100 as bad debts and provision for doubtful debts to be made equal to 10% on debtors.

5) The books of accounts of Garima for the year ending on 31.03.2017 were closed with a difference in the books. The following errors were detected subsequently:

a) Goods Rs. 125 returned to Mita Bros. were recorded in Returns Inwards as Rs. 251 and from there it was posted to the debit of Mita Bros. Account.

b) A credit sale of Rs. 760 was wrongly posted as Rs. 670 to the customer's account.

c) Payment to Balram of Rs. 7600 was posted to the debit of Sitaram as Rs. 6700.

d) Goods purchased from Gita Rs. 3250 was entered in Sales Day Book as Rs. 3520.

Pass Rectification entries in the next year and prepare Suspense Account.

6) Prepare BRS as on 31.01.2017