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Solved Numerical

Financial Accounting
M.com I
Solved Questions.

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Degree College of Commerce
Mansehra.
2015
Issue of Right and Bonus shares

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Right shares:
According to company act 1984 section 86,
An option to buy certain securities at certain privilege price within specified period of
time
Bonus:
The extra dividend paid by the company out of accumulated profit to their
shareholders is called bonus
Bonus share:
When bonus is paid in the form of shares to existing shareholders against
any accumulated profit or reserve such type of issue is known as bonus issue or issue
of bonus shares
Value of right.
V=__M S
N+1

V = value of right share


M = market value of share
S = value of share offered by company
N = number of share
Q1
M (Market value) = 350
S (offered value) = 100 + 20 % prem.
N (number of shares) = 5/3
Solution
V = MS
N+1
350 - 120
5/3 + 1
230
1.66 + 1
230
2.66

86.25
Q2
M = 20,

S = 15 (10 + 5),

N = 10/2

Solution
V=Ms/N+1
V = 20 15 / 10/2 + 1
V=5/5+1
V=5/6
V = 0.83
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Q3
M = 240,

S = 120,

N = 2/1

Solution
V = m s / n + 1
V = 240 120 / 2/1 +1
V = 120 / 2 +1
V = 120 / 3
V = 40

Q4
General journal
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Dat
e
1

Particulars

Dr

(amount)

Shareholders a/c
To share capital
To share premium

100,00,000

Bank
To shareholder a/c
Received cash @ Rs 15
Bonus
To shareholders a/c
Bonus @ 5 per share

7500,000

Cr ( amount )

50,00,000
50,00,000
7500,000
2500,000
2500,000

Q5
Dat
e
1

Particulars

General journal
Dr (amount)

Premium
w-1
To bonus to shareholder a/c

Cr ( amount )

600000
600000

Bonus to shareholder a/c


600000
To share capital a/c
Working - 1
Total capital = 10, 00,000
Bonus declared = 60 %
Value of bonus = 10, 00,000 x 60 / 100 = 600,000

6000000

Q6
Dat
e
1
2

Particulars

General journal
Dr (amount)

General reserve
w-1
To bonus to shareholder a/c

600000

Bonus to shareholder a/c


To share capital a/c
To share premium

600000

Cr ( amount )

600000

Working; 1
Original capital: 10, 00000
Bonus declared: 60 %
1000000 x 60/100
600000

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200000
400000

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Q7
Dat
e
1
2

Particulars

General journal
Dr (amount)

Profit & loss


To bonus to shareholder a/c

150000

Bonus to shareholder a/c


To share capital a/c
( 12500 x 10)
To share premium
(12500 x 2 )

150000

Cr ( amount )

150000
125000
25000

Working. 1
Calculation of number of bonus shares.
Bonus declared. Rs. 150000
Value of share. 12
No of shares. 150000/12 = 12500

Q8
Dat
e
1

Particulars

General journal
Dr (amount)

Share Premium
Reserve fund
Profit & loss
To bonus to shareholder a/c w-1
Bonus to shareholder a/c
To share capital a/c

Cr ( amount )

50000
60000
40000
150000
150000

W-1
Amount of bonus:
Total shares. 2000 x
1500 x 10
150000
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150000

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Balance Sheet
Equities
Amount Assets
Share capital (2000 + 1500) x10 350000 Sundry Assets
Reserve fund ( 100000 60000) 40000
Profit & loss (80000 40000)
40000
Creditors
45000
Total
475000 Total

Amount
475000

475000

Q. 9
Dat
e
1
2

Particulars

General journal
Dr (amount)

Investment
To cash

Cr ( amount )

162063
162063

Profit & loss


449126
To dividend
162063
To general reserve
100000
To bonus
162062
To contingencies reserve
25000
*Bonus
162063
To investment
162063
Dividend
162063
To cash
162063
Bonus shares are issued from investment, made in Tannery Ltd.

Q 10
Calculation of bonus to be declared.
Rule applied when amount of bonus to be declared is not given. Rule (The remaining balance
of reserve must not be less than 25% of new capital (existing capital + bonus declared)
Q=4FR-1C
5
Q= QUANTUM OF RESERVE.
FR= FREE RESERVE
C= EXISTING CAPITAL
C + Q = NEW CAPITAL

So FR-Q= (C+Q)
FR= (C+Q) + Q
FR= C+Q+4Q
4

?. 5200,000
80, 00,000
60, 00,000
? 60,00,000+5200,000= 11200,000

Reserve a/c

journal entries
5200000

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FR= C+5Q
To bonus to shareholders 5200000
4
To bonus to shareholders 5200000
4FR= C+5Q
To share Capital
5200000
4FR-C= 5Q
4FR-C= Q
5
Now Q= 4FR-C
5
Q= 4( 80,00,000)-6000000
5
Q= 320,00,000-6000000
5
Q= 260,00000
5
Q= 5200,000
Now remaining free reserve is 80,00000-5200000=2800000 which is 25% of 11200000

Q 11
Dat
e
1
2

Particulars

General journal
Dr (amount)

Reserve fund
To bonus to shareholder a/c
Bonus to shareholder a/c
To share capital a/c w-1
Share premium a/c

Cr ( amount )

360000
360000
360000

W-1
No of bonus share.
Bonus declared. 360000
Value per share. 12
360000/12 = 30000
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300000
60000

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Capital. 30000 x 10 = 300000


Premium. 30000 x 2 = 60000
Q 12
Dat
e
1

Particulars

General journal
Dr (amount)

Reserve fund
Profit & loss a/c
To bonus to shareholder a/cw-1
Bonus to shareholder a/c
To share capital a/c

Cr ( amount )

6000
4000
10000
10000
10000

W-1.
Share capital. 50000
Bonus = 20 % of capital. (50000 x 20/100) = 10000
Equities
Share capital ( 50000 + 10000)
Reserve fund ( 30000
6000 )
Profit & loss ( 15000 4000 )
Total

Balance sheet
Amount Assets
60000
24000
11000

Amount

95000

Q 13
General journal
Dat Particulars
e
1
Reserve A/C
Profit & loss A/C
To bonus to shareholder a/c
2
Bonus to shareholder a/c
To share capital a/c

Dr

(amount)

Cr ( amount )

35000
29000
64000
64000

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64000

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W-1
Calculation of the amount of bonus.
Bonus declared= 2 shares against 5 held
Original capital = 160000
Bonus = 160000 x 2/5
= 64000
Balance sheet
Equities
Amount
Assets
Authorized Capital.
300000
Paid up Capital.(160000 + 64000) 224000
Reserve fund ( 90000 35000 ) 55000
Profit & loss ( 60000 29000 )
31000
Total
310000

Amount

Redemption of preference shares (Mukhar G. Volume I Chapter # 36)


Definition.
When capital is refunded after a specific period of time on agreed price
such a practice is called redemption of share
Methods.
There are three methods used to redeem the preference shares.
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1. Fresh shares are issued to redeem the existing shares.


2. Capitalization of undistributed profit.
3. Both 1 & 2 together
Accounting entries.
Method 1. By issuing fresh shares
At par.
1. When issued. ( Bank To Share capital)
2. When redeemed (redeemable preference share To preference shareholder A/c)
3. When payment is made ( preference shareholders To bank)
At Discount.
1. When issued ( bank + discount To share capital )
2. When redeemed ( redeemable preference share To P. shareholder + discount)
3. When payment is made ( preference shareholders To bank )
At premium.
1.
2.
3.
4.

When issued ( bank To S. capital + premium )


When redeemed (redeemable preference share + premium To P. s. holders)
When payment is made ( Preference share to Bank )
When premium is adjusted (P & l a/c + security premium To premium on redemption of
redeemable preference share )

Method 2. Capitalization 0f undistributed profit.


At par
1. When redeemed at par ( redeemable p. share To preference shareholders a/c) (due)
2. When payment is made ( P. shareholder To Bank )
3. When transferred to capital ( profit & loss To capital redemption reserve A/C)
At premium.
1.
2.
3.
4.

Redeemed ( redeemable P. share + premium on redemption To P. shareholder a/c)


Payment made ( preference shareholder To Bank)
Adjustment of premium ( profit & loss to premium on redemption )
Transfer the amount of redemption to capital ( General Reserve, Profit & loss To capital
reserve)

Q .1
Journal entries.
Date
1

Particulars
Redeemable preference share
To Preference shareholders a/c
Amount payable on redemption is recorded
Bank
To share capital
Issued fresh shares for redemption W-1

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Dr
Amount
1800000

Cr
Amount
1800000

900000
900000

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General reserve A/c


To Redeemable preference share
Amount of reserve capitalized for redemption of shares.
Preference shareholders a/c
To bank
Payment made
Profit & loss
To capital redemption reserve a/c
Being amount transferred to capital reserve a/c W-2

Liabilities
Share capital 40000 x
100=40,00,000
9000 x 100= 900,000
Reserve & Surplus
Securities and premium
Loan
Current liabilities & provision

Total
W1
redemption

900000
90000
1800,000
1800,000
900,000
900,000

Balance sheet
Amount Assets

Amount

4900,00
0
500,000
1800,00
0
1600,00
0
8800,00
0

W-2 amount transferred to capital


reserve fund.

Calculation of no of new shares to be issued.


1800,000
Redeemable preference shares. 1800,000
(900,000)
Less reserve fund utilized
(900,000)
900,000
900,000
900,000 = 9000 shares
100

Value of share redeemed=


less proceed from new shares

Q .2
Journal entries.
Date

Particulars

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Dr
Amount

Cr
Amount

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1
Redeemable preference share
Premium on red. Of pref. shares
To Preference shareholders a/c (w-1)
Amount payable on redemption is recorded ( 5% premium)
2
Profit & Loss
To premium on red. of pref. shares
Premium adjusted
3
Bank
Profit & loss
To investment
Investment sold out.
4
Bank
To share capital
( 81000 x 10 )
w-2
To share premium
( 81000 x 2 )
New shares are issued for red. At premium
5
Pref. shareholders a/c
To bank
Payment made for redemption
6
Profit & loss
To capital redemption reserve a/c
w- 3

1200000
60000

1260000

60000
60000
300000
50000
350,000
972000
810,000
162,000
1260,000
1260,000
390,000
390,000

Liabilities

Balance sheet
Amount Assets

Amount

Issued capital 400000 + 810,000

4810,000

Plant & machinery

25,00,00

Profit & loss

200,000

Furniture & fixtures

Sundry creditors

1100,00

Stock

900,000

Security premium

162000

Debtors

1500,000

Capital redemption reserve

390,000

Bank

Total

6662,00
0

Total

w-4

1400,000
362,000

W1
Total amount payable.
Face value of redeemable shares. 1200,000
Add premium 5%
60,000

6662,00
0

W- 2
No of new shares to be issued.
net amount payable.
1200,000
less available profit.
(390,000)

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Total payable
1260,000
No of shares = 810,000/ 10 = 81000

810,000

W-3
Balance of profit.
Profit & loss A/C
700000
Less
Loss on investment
(50,000)
Adjusted for premium
(60,000)
Balance for balance sheet. (200,000)
Capital redemption reserve 390,000
W-4
Dr
Particulars
Balance b/d
Investment
Share capital
Share premium

Bank Account
Rs
Particulars
350,000
By preference
300,000
Shareholders a/c
810,000
Balance
162000

Total

1622000

Total

Cr
Rs
1260,000
362, 000

1622000

Q .3
Journal entries.
Date
1

Particulars
Redeemable preference share

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Dr
Amount
56000

Cr
Amount

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Premium on red. Of pref. shares


To Preference shareholders a/c (w1)
Amount payable on redemption is recorded ( 5%
premium)
Securities premium
To premium on red. of pref. shares
Premium adjusted
Profit & loss
To capital redemption reserve a/c
Undistributed profit transferred to capital redemption
reserve account.
Pref. shareholders a/c
To bank
Payment made for redemption w-2
Capital redemption reserve a/c
To bonus to bonus to shareholders account w3
Issue of bonus shares 1 to each 4 held
Bonus to shareholders a/c
To share capital account

Balance sheet
Liabilities
Amoun Assets
t
Issued capital 168,000 + 42000
210,000 Fixed asset
Securities premium w-4
1400
Current asset
Profit & loss w-5
5000
Shareholder account
6600
Capital redemption reserve w-6
14000
Sundry creditor
28000
Total
265000 Total
W-1
w-2
Description
Rs
Description
Rs
Amount payable for
Amount paid
redemption
5600 Total payable
61600
Net value of P.
0
Less 60
shares
5600 shareholders not
(6600)
Add premium 10 %
6160 found. ( 60 x 110)
55000
Total payable amount 0
Net paid

W-4
Description

Rs

w-5
Description

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Rs

5600
61600

5600
5600
56000
56000
55000
55000
42000
42000

42000
42000

Amount

w-7

200,000
65,000

265,000
w-3
Description
Bonus shares
Equity shares
Ratio of bonus
No of bonus shares.
16800 x

w-6
Description

Rs
16800

4200
shares

Rs

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Securities premium
Previous premium
Less adjusted
Balance

W-7
Description
Current assets
Total current assets
Less cash paid
Balance

7000
5600
1400

Balance of profit
Previous balance
Less capitalized
Balance

61,000
(56000
)
5000

Capital redemption
reserve
Capitalized and
transferred to it.
Less issue of bonus
Balance

56000
(42000
)
14000

Rs
120,00
0
(55000
)
65000

Q .4
Journal entries.
Date
1

Particulars
Redeemable preference share
Premium on red. Of pref. shares
To Preference shareholders a/c (w1)
Amount payable on redemption is recorded ( 5%
premium)
Securities premium
To premium on red. of pref. shares
Premium adjusted
Bank
Profit & loss
To investment
Investment sold out.
Bank
To share capital
( 1000 x 10 )
To share premium
( 1000 x 2 )
New shares are issued for red. At premium
General reserve
Profit & loss
To capital redemption reserve a/c
w- 2*
Capitalization of undistributed profit
Preference shareholders a/c
To bank account
Amount of redemption paid

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Dr
Amount
50,000
2500

Cr
Amount

52,500

2500
2500
27000
1000
28000
12,000
10,000
2,000
20,000
20,000
40,000
52500
52500

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Balance sheet
Liabilities
Amoun Assets
t
Issued capital
Land & building
9000 x 10 ) +(1000 x 10 )
100,000 Plant
Securities premium w-3
9500 Furniture
Profit & loss w-4
4000 Current asset
Capital redemption reserve W-2
40,000 Stock
Current liabilities
30,000 Debtors
Bank
w-5
Total
183500 Total
W-1
w-2
w-3
Description
Rs
Description
Rs
Description
Amount payable for
Capital
Securities
redemption
5000 redemption
50000 premium
Net value of P.
0
reserve
Previous premium
shares
Face value of
(10,00 Less adjusted
2500 red.prf.shr
Add premium 5 %
0)
Balance
5250
Total payable amount
Less proceed from 40,000
0
new shares.
W-4
Description

W-5 Dr
Rs

Profit & loss


Previous balance
Less loss on investment
Less capitalized
Balance

25000
(1000)
(20000)
4,000

Bank Account
Amount
particulars

30,000
15000
6500
183500
Rs
10,000
(2500)
7500

Amount

20000
27000
10,000
2000

By
preference
Shareholders
a/c
Balance

Total

59000

Total

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100,000
30,000
2000

Cr

Particulars
Balance b/d
Investment
Share capital
Share premium

Issue and redemption of debenture

Amount

52500
6500

59000

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Q.no 1
journal enrties
Dat Particulars
Rs.
e
A
Bank
100000
To 6% debenture account
Issued at par
B
Bank
110000
To debenture
To premium
Issued at premium
C
Bank
90000
Discount
10000
To debenture Account
QNo.2
journal enrties
Dat Particulars
Rs.
e
A
Bank
90000
Discount
10000
To 6% debenture account
Issued at discount
B
Bank
55000
To debenture
To premium
Issued at premium
C
Vendor
100000
To debenture Account
D
Debenture suspense a/c
600000
To debenture a/c

Q.No.3
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Rs

100000

100000
10000

100000
Rs

100000

50000
5000

100000
600000

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Dat
e
A

Particulars

journal enrties
Rs.

Bank
To 6% debenture account
Issued at par
Bank
discount
To debenture
Issued at discount
Bank
To debenture Account
To premium
Bank
Loss on issue of debenture
To debenture
To premium payable
Issued at par redeemable at preium
Bank
Discount
To debenture
To premium

Rs

40000
40000
36000
4000
40000
42000
40000
2000
40000
4000
40000
4000
38000
4000
40000
2000

Issued at discount redeemable at premium

Q.No4.
1.When debentures are issued at par
Dat
e
1

Particulars
Assets
goodwill
To liability
To Rahim brothers
Assets and liabilities taken over
Rahim bros
To debenture
Purchase consideration paid

journal enrties
Rs.

Rs

400000
30000
50000
380000
380000

2. when debentures are issued at 10% discount


journal enrties
Dat Particulars
Rs.
e
1
Assets
400000
goodwill
30000
To liability
To Rahim brothers
Assets and liabilities taken over
2
Rahim bros
380000
w-1 Discount
42220
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380000

Rs

50000
380000

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To debenture
To cash

422200
20

3- When debentures are issued at 10% premium


Dat
e
1

2
w-2

Particulars
Assets
goodwill
To liability
To Rahim brothers
Assets and liabilities taken over
Rahim bros
To debenture
To premium
To cash

journal enrties
Rs.

Rs

400000
30000
50000
380000
380000
345400
34540
60

Working 1
No of debentures to be issued to satisfy purchase consideration of Rs 380000. When
debentures are issued @ 90
380000/90 = 4222.22
As we cant issue debenture in fraction so we only issue 4222 debentures and the balance
amount will be paid in cash.
Amount of debentures = 4222 x 100 = 422200
Purchase consideration. 380000 & discount 4222x10 = 42220
Dr side= 380000+42220= 422220 where as the Cr side is 20 less which is paid in cash.
Working -2
No of debentures to be issued to satisfy purchase consideration of Rs 380000. When
debentures are issued @ 110
380000/110 = 3454.54
As we cant issue debenture in fraction so we only issue 3454 debentures and the balance
amount will be paid in cash
Amount of debentures. 3454x100= 345400 & premium 3454x10=34540
Cr side . 345400+34540= 379940 which is less by Rs 60 from the Dr side
So 60 will be paid in cash.

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Q.No.5
Dat
e
A (i
(ii)

Particulars

Journalentries
Rs.

Rs

Profit &loss appropriation


To debenture redemption fund a/c
Making provision
Debenture
To bank Account
Entry for redemption

B
(i)

Debenture
To Bank
Redemption out of capital

Bank
To sinking fund investment
Investment sold for redemption
Debenture
To bank
Redemption

D i

Profit & loss


To debenture redemption fund
Debenture
To bank
Redemption out of profit

ii

Debenture
To bank
Redemption out of capital

Q.No.6
Debenture redemption fund investment account
Particulars
Nominal Cost
Particulars
Nominal
Cost
Balance
20,000
16000 Bank (sale)
12000
10080
Balance transferred
480
Balance
8000
6400
to d.r.f. a/c
Total
20,000
16480 Total
20,000
16480
% of cost to the nominal value. 16000/20000=80%
80000x80/100= 6400
12000 nominal value sold @ 84 s0 12000x84/100= 10080
Debenture redemption fund Account
Particulars
Rs
Particulars
Rs
Redemption of debenture
10,000
Balance
16000
Premium on redemption
100
Debenture redemption fund
480
Balance
6380
investment account
Total
16480
Total
16480
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Debenture Account
Particulars
Redemption

Rs
10,000

Particulars
Balance

Rs
50000
480

Balance
Total

40000
50000

Total

50000

Q.no.7
(i) Cum interest (cum interest mean that the price which is paid to purchase debentures,
included interest) so we deduct the interest to calculate the net purchase price of debentures.
Cum interest price = 100000x90/100 = 96000
Less interest
(2000) for four months @ 6 % (100000 x 6/100 x 4/12)
Amount paid for debentures94000
(ii)Ex- interest ( ex - interest mean interest is not included in the price thats why we add up the
interest to calculate the total amount paid.
Ex-interest price 100000 x 96/100 = 96000
Add interest
= 2000 for four months @ 6 % (100000 x 6/100 x 4/12)
Total amount paid
98000
Journal entries (cum interest)
Date
Particulars
Rs.
Rs
30-4-93 Own debentures a/c
94000
Interest a/c
2000
To bank account
96000
Being own debentures purchased

30-4-93

Debentures
To own debentures
To Profit on debenture

100000
94000
6000

Cancellation of own debentures

30-4-93

Profit on debenture redemption


To capital reserve

6000
6000

Profit transferred

31-12-93

Profit & loss


To interest a/c

2000
2000

Interest on debenture closed to profit

Date
30-4-93

Journal entries (cum interest)


Particulars
Rs.
Own debentures a/c
96000
Interest a/c
2000
To bank account

Rs

98000

Being own debentures purchased

30-4-93

Debentures
To own debentures
To Profit on debenture

100000
96000
4000

Cancellation of own debentures

30-4-93

Profit on debenture redemption


To capital reserve

4000

Profit transferred

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4000

Prepared by M com I JDCC 2015


31-12-93 Profit & loss

2000

To interest a/c

2000

Interest on debenture closed to profit

Q.no 8
Date
1-1-89

Journal entries (cum interest)


Particulars
Rs.
Bank
1900000
Discount
100000
To debenture

Rs

20,00,000

Being debentures issued

30-6-89

Interest
To cash

70,000
70,000

Cancellation of own debentures

31-12-89

Interest
To cash

70,000
70,000

Profit transferred

31-12-89

Profit & loss


To interest a/c

140,000
140,000

Interest on debenture closed to profit

31-12-89

Purchase of debentures out of profit


i.Profit & loss
200,000
To debenture redemption fund
ii. debenture
200,000
To cash
To profit & loss
Purchase of debentures out of capital
Debenture
200,000
To bank
To profit & loss

Supervised by TAHIR HUSSAIN +923449545245

200,000
191000
9000

191000
9000

Prepared by M com I JDCC 2015

Q.No.9Journal entries
Date
1-7-90

31-12-90

31-12-90

Particulars
Bank
To 6% debenture
Issue of debenture at par
Debenture interest
To bank
Interest for 6 months paid
Profit & loss
To debenture interest

Rs.
200,000

Rs
200,000

6000
6000
6000
6000

Interest transferred to profit

31-5-91

Own debenture(200X98)
Interest
To bank

19600
500
20100

Own debenture purchased + interest paid for 5 months

30-6-91

Debenture interest (1800X6/100X6/12)


To bank(200X6/100X1/12)

5500
5400
100

To interest on own debenture


Interest on own 200 debenture for 1 month and
1800 debenture for 6 month paid

31-12-91

Debenture interest
To bank

6000
5400
600

To interest on own debenture


Interest for 1800 + 200 own debenture for 6
months

31-12-91

Profit & loss


To debenture interest

6000
6000

Interest transferred to profit


31-12-91

Interest on own debenture


To profit & loss

700
700

Interest transferred to profit (income)


30-06-92

Debenture interest
To bank

6000
5400
600

To interest on own debenture


Interest for 1800 + 200 own debenture for 6
months

30-9-92

Own debenture
Interest (CUM INEREST)
To bank

9550
150
9700

Own 100 debenture purchased @ 97

31-12-92

Debenture interest

5850

Supervised by TAHIR HUSSAIN +923449545245

Prepared by M com I JDCC 2015

To bank

5100
750

To interest on own debenture


Payment of interest on 1700 debentures for 6
months recorded interest on own 200 debenture
for 6 months and on 100 debenture for 3 months

31-12-92

Debenture
To own debenture
To capital reserve

20,000
19600
400

200 debentures cancelled and profit credited to


capital reserve fund

31-12-92
31-12-92

Profit & loss


To debenture interest
Interest transferred to profit
Interest on own debenture
To profit & loss

12000
12000
1350
1350

Interest transferred to profit (income)

Q .No.10

OWN DEBENTURE INVESTMENT ACCOUNT

Date

particulars

interest

15-692

To bank

1-1192

Date

particulars

interest

1146

Principa
l
49450

30-6-92

By interest

1250

667

39583

31-1292

By

principa
l

(50000x5/100x5.5/12)

To bank
(40000x5/100x4/12
)

debenture

intrst(50000+40000
)
=90000x 5% x1/2

2250

Debenture inter
90000x5/100x3/12

1125

2812

Balance

967

Profit & loss

31-3-93
30-6-93

Total

5750

Q. no 11

90000

Debenture intr

1125

Debenture Account

Total

5750

90,000
90000

Debenture redemption fund account

Date

Particulars

Amount

31-12-92

Balance

1352580

By bank (interest)
By p & L app. a/c

Total

1352580
1550429

Total
Balance

31-12-93

To general reserve

31-12-93

To deb red fund invs a/c

Total

Date
1-1-92

Particulars
By balance b/d

Amount
1163600
58180
130800

580

By bank (interest)
By p & L app. a/c

1352580
1352580
67629
130800

1551009

Total

1551009

1-1-93

Debenture redemption fund investment account


Date

Particulars

Amount

Date

Supervised by TAHIR HUSSAIN +923449545245

Particulars

Amount

Prepared by M com I JDCC 2015

1-1-92
31-12-92

Balance b/d
To bank

1163600
188980
31-12-92

Total
1-1-93

Balance b/d

Total

1352580
1352580

1352580

Q. No 125% debenture account


Date
Particulars
Amount
31-12-91 Own debenture
100000
Bank
700000

Total
Sinking fund account
Date
Particulars
31-12-91 Loss on 3% stock
Balance transferred to
g/r

Total
Date
1-1-91
13-12-91

Particulars
Balance b/d
Sinking fund

31-12-93
31-12-93

Date
1-1-91

800000
Amount
3200
800000

Date
1-1-91
31-12-91
31-12-91

803200
Amount
99000
1000

Date
31-12-91

Balance c/d

1352580

Total

1352580
1352000
580

By bank
By deb. Red. Fund a/c

Total

1352580

Particulars
By balance b/d

Amount
800000

Total

800000

Particulars
By balance b/d

Amount
749000
28400
24800
1000

By P & L a/c
By interest on s.f.i.a/c

By own deb. a/c


Total

803200

Particulars
By 5% deb a/c

Amount
100000

Total

100000

Particulars
Bank
Sinking fund
(loss)
Total

Amount
646800
3200

(profit on cancellation)

Date
1-1-91

Total

100000

Particulars
Balance b/d

3 % stock account
Amount
Date
650000 *
31-12-91

Total

650000

650000

Sinking fund is 749000 out of which 99000 represents the own debenture and balance (74900099000) 650000 is 3% stock.
Interest on sinking fund investment account

Date

Particulars

Amount

Date

Supervised by TAHIR HUSSAIN +923449545245

Particulars

Amount

Prepared by M com I JDCC 2015


31-12-91 To sinking fund a/c 24800

31-12-91

(transfer)

Debenture
interest account
Interest on 3%
stock

Total

24800

Q.No.13
Date
1-1-89

Total

24800

Journal entries
Particulars
Bank
To 6% debenture

Rs.
100,000

Rs
100,000

Issue of debenture at par

31-12

Profit & loss


To sinking fund

18098
18098

Sinking fund created

31-12

Sinking fund investment


To bank

18100
18100

Investment of sinking fund

31-12-90

Bank
To interest on sinking fund invst

905
905

Interest received against investment

31-12-90

interest on sinking fund invst

905

To sinking fund account

905

Interest transferred to sinking fund

31-12-90

Profit & loss


To sinking fund

18098
18098

Sinking fund created


18098 plus interest 905

31-12-90

Sinking fund investment


To bank

19000
19000

Investment of sinking fund

31-12-91

Bank
To interest on sinking fund invst

1855
1855

Interest received against investment

31-12-91

interest on sinking fund invst

1855

To sinking fund account

1855

Interest transferred to sinking fund

30-9-91

Profit & loss


To sinking fund

18098
18098

Sinking fund created

31-12-91

5000
19800

Sinking fund investment

20000

Supervised by TAHIR HUSSAIN +923449545245

Prepared by M com I JDCC 2015

To bank

20000

Investment of sinking fund

31-12-92

Bank
To interest on sinking fund invst

2855
2855

Interest received against investment

31-12-92

interest on sinking fund invst

2855

To sinking fund account

2855

Interest transferred to sinking fund

31-12-92

Profit & loss


To sinking fund

18098
18098

Sinking fund created

31-12-92

Sinking fund investment


To bank

20900
20900

Investment of sinking fund


31-12-93

31-12-93

31-12-93

31-12-93

Bank
To interest on sinking fund invst
Interest received against investment
interest on sinking fund invst
To sinking fund account
Interest transferred to sinking fund
Profit & loss
To sinking fund
Sinking fund created

3905

Sinking fund investment


To bank

77800

3905
3905
3905
18098
18098

77800

Investment of sinking fund


78100-300=77800

31-12-93

Sinking fund
To sinking fund invest

300
300

Loss on sale of investment transferred


31-12-93

Debenture
To bank

100,000
100,000

Redemption
31-12-93

Sinking fund
To general reserve

99705

Balance of sinking fund transferred

Supervised by TAHIR HUSSAIN +923449545245

99705

Prepared by M com I JDCC 2015

Supervised by TAHIR HUSSAIN +923449545245

Prepared by M com I JDCC 2015

Underwriting of shares and debenture


Q1
Statement showing liabilities of under writers
A 50 %
B 25 %
37500
18750
( 15000 )
( 7500 )
22500
11250
Less unmarked Application w-1
( 11250 )
( 5625 )
11250
5625
Less surplus of C
(1250)
( 625 )
Total liabilities
10000
5000
Underwriters
Gross liabilities
Less. Marked Application

W-1
Total Application = 60000
Less Marked Application = 37500
Unmarked = 22500

C 25 %
18750
( 15000 )
3750
( 5625 )
(1875)
---------nil

A: 22500 x 50 % = 11250
B: 22500 x 25 % = 5625
C: 22500 x 25 % = 5625

Q.2
Statement showing liabilities of under writers
Underwriters
A
B
Gross liabilities
30000
15000
Less. Marked Application W- 1
( 11000 )
( 8000 )
19000
7000
Less unmarked Application W- 2
( 9000 )
( 4500 )
Net liabilities
10000
2500
Supervised by TAHIR HUSSAIN +923449545245

C
5000
( 3500)
1500
( 1500 )
Nil

Prepared by M com I JDCC 2015

Less Firm underwritten

(5000)
5000
( 333 )
4667
5000

Less Surplus Of C (6:3)

( 2000 )
500
( 167 )
333
2000

Add Firm Underwritten ( benefit not


given )
Total Liabiliries
9667
2333
W- 1
Calculation Of Marked applications.
A
B
Total marked application including firm underwriting = 16000 10000
Less firm underwriting
( 5000 ) ( 2000 )
Net marked
11000
8000
W- 2
Calculation Of unmarked application.
Ratio. 30000 :15000
6
:
3
:
Total application.
Less firm underwritten
Less marked Application
Unmarked
A: 15000 x 6/10 = 9000
B: 15000 x 3/10 = 4500
C: 15000 x 1/10 = 1500

( 500 )
( 500 )
--------------------500
500
C
4000
( 500 )
3500
: 5000
1

45000
(7500)
(22500)
15000

Q. 3
Liabilities of underwriters
Total liabilities = 10000 shares
Less application received = 8000
Unsubscribed= 2000
Outstanding liabilities to each of the underwriters.
A
:
B
:
C
Ratio : 30 %
30 %
20 % = 80 % & 20 % is the liability of company.
A: 2000 x 30/100 = 600
B: 2000 x 30/100 = 600
C: 2000 x 20/100 = 400
Underwriters liabilities.
=1600
Add companys liabilities. (2000 x 20/100)= 400
Total
2000
Q.4
Underwriters
Gross liabilities
-1
Less. Marked Application

Statement showing liabilities of under writers


Alpha 40%
Beta 40 %
W
10,00,000
10,00,000
( 1300,000 )
( 700,000 )

Less unmarked Application W -2


Less surplus of alpha ( 2:1)
Total liabilities
W-1
Gross liabilities.

(300,000)
300,000
( 60,000 )
( 60,000 )
( 360,000)
240,000
----------------(240,000)
Nil
Nil
W-2
Unmarked Application.

Supervised by TAHIR HUSSAIN +923449545245

Zeta 20 %
500,000
( 250,000 )
250,000
( 30,000 )
220,000
( 120,000 )
100,000

Prepared by M com I JDCC 2015

Total shares = 2500,000


Total application received = 2400,000
Alpha: 2500000 x 40/100 = 10, 00,000 less marked
= (22, 50,000)
Beta: 2500,000 x 40 /100 = 10, 00,000
unmarked application
= 150,000
Zeta: 2500,000 x 20 /100 = 500,000
Alpha: 150,000 x 40 / 100 = 60,000
Beta: 150,000 x 40 / 100 = 60,000
Zeta:

150,000 x 20 / 100 = 30,000

Q. 5Statement showing liabilities of underwriters


Underwriters
Gross liabilities W 1
Less marked application

Less unmarked applications W - 2


Less surplus of C ( 3 : 3 )
Total liabilities
W1
Gross liabilities
Total no of shares = 2500000
Ratio. A 30 %, B 30 %, C 40%
A: 2500,000 x 30/100 = 750,000
B: 2500,000 x 30/100 = 750,000
C: 2500,000 x 40/100 = 10, 00,000

A 30 %
750000
(35000)

B 30 %
750000
(400,000)

400,000
( 60,000)
340,000
(215000)
125,000

350,000
( 60,000)
290,000
( 215000 )
75000

C 40%
10,00,000
( 13,50,000
)
(350,000)
( 80,000 )
(430,000)
----------Nil

W-2
unmarked application.
Total applications = 2300,000
Less Marked
= (2100, 000)
unmarked
= 200,000
A: 200,000 x 30/100 = 60000
B: 200,000 x 30/100 = 60000
C: 200,000 x 40/100 = 80,000

Q. 6
Statement showing liabilities of underwriters

Supervised by TAHIR HUSSAIN +923449545245

Prepared by M com I JDCC 2015

Underwriters
Gross liabilities
Less marked application
Less unmarked applications W - 1
Less surplus of C
Add firm underwritten
Total liabilities

A 30 %
24,000
(4000)
20,000
( 8640)
11360
(1280)
10080
3200
13280

B 30 %
10,000
(8000)
2000
(3600 )
(1600)
--------Nil
1200
1200

C 40%
6000
( 2000)
4000
(2160 )
1840
(320)
1520
4000
5520

W -1
Calculation of unmarked Applications Ratio:
A: B: C
Total Applications = 20,000
24: 10: 6
Less marked
(14000)
12: 5: 3
6000
A: 14400 x 12/20 = 8640
Add firm u/w 8400
B: 14400 x 5/20 = 3600
Unmarked
14400
C: 14400 x 3/20 = 2160

Q. 7 Statement showing liabilities of underwriters


Underwriters
Gross liabilities
Less marked application W-1
Less unmarked applications W - 2
Less firm underwritten
Less surplus of B
Add firm u/w
Total liabilities

W-1
Marked applications.
Total marked
Less firm u/w
Marked by underwriters

A
B
C
7200 9000 3200
(3200) (4000) (1200)
4000 5000 2000

A
24,000
(4000)
20,000
( 5400)
14600
(3200)
11400
(1000)
10400
3200
13600

B
10,000
(5000)
5000
(2250 )
2750
(4000)
( 1250)
----Nil
4000
4000

W-2
Unmarked Applications.
Total application = 28400
less marked by u/ws = (11000)
less marked by firm= (8400)
9000

OR
Statement showing liabilities of underwriters
Supervised by TAHIR HUSSAIN +923449545245

C
6000
( 2000)
4000
(1350 )
2650
(1200)
1450
(250)
1200
1200
2400

Prepared by M com I JDCC 2015

Underwriters
Gross liabilities
Less marked application

A
24,000
(7200)
16800
( 5400)
11400
(1000)
10400
3200
13600

Less unmarked applications W 1


Less surplus of B
Add firm u/w
Total liabilities

B
10,000
(9000)
1000
(2250 )
(1250)
-----Nil
4000
4000

W-1
Unmarked Applications.
A: 9000 x 12/20 = 5400
Total applications = 28400
B: 9000 x 5/20 = 2250
Less marked (19400)
C: 9000 x 3/20 = 1350
Unmarked. 9000
Q. 8
Statement showing liabilities of underwriters
Underwriters
M
N
O
P
Gross liabilities
35000
30000
20000
10000
Less marked
(10000)
(22500)
(20000)
( 7500)
applications
25000
7500
Nil
2500
Less unmarked. w-1
(7000)
(6000)
(4000)
(2000)
18000
1500
(4000)
500
Less surplus of Q & O.
(3000)
(2571.42 ------(857.14
w-2
)
)
15000
(1071.42 Nil
(357.14
Less surplus of N & P. w- (1351.34 )
------)
3
)
----------------Net liabilities
13648.58 Nil
Nil
Nil

M
N
Ratio: 35

O
30

P
20

Working 1
Unmarked Applications

Q
10

R
3

Q
3000
(5000)

R
2000
Nil

(2000)
(600)
(2600)
------Nil
------

2000
(400)
1600
(171.42
)
1428.58
(77.21)

Nil

1351.37

Total applications = 85000


2 = 100 less marked =
(65000)
Unmarked =
20,000

Working 2
Surplus of Q & O

Supervised by TAHIR HUSSAIN +923449545245

C
6000
( 3200)
2800
(1350 )
1450
(250)
1200
1200
2400

Working 3
Surplus of N & P

Prepared by M com I JDCC 2015

Total = 20,000
M : 20,000 x 35/100 =7000
N : 20,000 x 30/100 =6000
O : 20,000 x 20/100 =4000
P : 20,000 x 10/100 =2000
Q : 20,000 x 3/100 =600
R : 20,000 x 2/100 =400

Total = Q + O
4000 + 26000 = 6600
M : 6600 x 35/77 = 3000
N : 6600 x 30/77 = 2571.42
O : Nil
P : 6600 x 10/ 77 = 857.14
Q : Nil
R : 6600 x 2/77 = 171.42

Total = N + P
1071.42 + 357.14 = 1428.56
M : 1428.56 x 35/37 =
1351.34
N : Nil
O : Nil
P : Nil
Q : Nil
R : 1428.56 x 2/37 = 77.21
Ratio : 77 ( N + P )
77 - ( 30 + 10 )
77 40
= 37

Ratio ; 100 (O + Q)
100 (20 + 3)
= 77

Q. 9
Statement showing liabilities of underwriters
Underwriters
Gross liabilities
Less marked application
Less unmarked applications W - 1
Less firm underwritten
Less surplus of Y w - 2
Add firm u/w
Total liabilities
W1

X
48,000
(8000)
40,000
(10,800)
29200
(6400)
22800
(2000)
20800
6400
27200

Y
20,000
(10,000)
10,000
(4500 )
5500
(8000)
( 2500)
----Nil
8000
8000

Z
12,000
( 4000 )
8000
(2700)
5300
(2400)
2900
(500)
2400
2400
4800

W-2

Unmarked applications.
&Z
Total applications =

Surplus of Y given to X
40,000

Less marked application= (22000)


Unmarked

18000

Ratio:
X

ZSo.X: 18000 x 12/20 = 10800

48

20

12Y: 18000 x 5/20 = 4500

24

10

6Z: 18000 x 3/20 = 2700

12

Supervised by TAHIR HUSSAIN +923449545245

X: 2500 x 12/20 = 20000


Z: 2500 x 5/20 = 500

Prepared by M com I JDCC 2015

Branch accounting
Debtors system (cost price method)
Q no 1
In the book of head office
Branch account

Dr
Cr
Particulars
Amount
Opening stock
11200
Debtors
6300
Goods sent to branch
51000
Cash sent to branch
Rent
1500
salaries
3000
Branch profit
10900

Particulars
Cash sales
Cash received from
debtors.
Closing stock
Closing debtors

Amount
25000

Total

Total

83900

83900

Supervised by TAHIR HUSSAIN +923449545245

41200
13600
4100

Prepared by M com I JDCC 2015

Dr
Cr
Particulars
Opening balance of
debtors
Credit sales
Total

Debtors account
Amount
6300
39000

Particulars
Cash received
Closing debtors

Amount
41200
4100

45300

Total

45300

Q. 2
Dr
Particulars
Opening balances
Stock
Cash
Debtors
Goods sent
Salaries paid by
branch
Salaries paid by H.O
Rent & rates
Admin expenses
Profit

in the book of head office


Branch account
cr
Amount
30000
7100
14200
300000
8000
27000
5400
11200
12100

Particulars
Remittance
Goods return
Closing balances
Stock
Cash
Debtors

Amount
363900
10000
19000
3700
19400

Total
Dr
Cr
Particulars
Opening debtors
Credit sales

407000

Total
Debtors account

407000

Amount
14200
220,000

Total
Dr
Cr
Particulars

234200

Particulars
Discount allowed
Goods returned
Bad debts
Closing balance
Cash received
Total
Cash account

Amount
2000
18000
300
19400
194500
234200

Particulars

Amount

Amount

Supervised by TAHIR HUSSAIN +923449545245

Prepared by M com I JDCC 2015

Opening balance
Cash sales
Collection from
debtors
Total

Q.no 3.
Dr
Cr
Particulars
Opening balances
Stock
Cash
Debtors
Goods sent

7100
174000
194500

Closing balance
Salaries paid
Remittance

3700
8000
363900

375600

Total

375600

In the book of head office


Branch account
Amount
20000
16900
4300
61000

Branch profit

7900

Total

110100

Particulars
Cash sales
Goods returned
Cash received from
customers
By branch
By head office
Closing balances
Stock
Cash
Debtors
Shortage of cash

Amount
50,500
2000

Total

110100

20600
300
21000
9700
5200
800

Dr
Cr
Particulars
Opening debtors
Credit sales

Amount
4300
22000

Particulars
Discount allowed
Cash received
Closing balance

Amount
200
20900
5200

Total

26300

Total

26300

Dr
Cr

Debtors account

Cash account

Supervised by TAHIR HUSSAIN +923449545245

Prepared by M com I JDCC 2015

Particulars
Opening balance

Amount
18900

Total

18900

Q.no.4.
Dr
Cr
Particulars
Goods sent
Salaries
Office expenses
Cash remittance to
branch
Branch profit
Total

Particulars
Various exp
Closing balances
Shortage
Total

Amount
6400
9700
800
18900

In the book of head office


Branch account
Amount
75000
15000
12000
6000
29500
137500

Dr
Cr
Particulars
Credit sale

Amount
60,000

Total

60,000

Particulars
Cash sales
Petty cash
Cash received from
debtors
Closing debtors
Closing stock
Total

Amount
50,000
500
55,000
5000
27000
137500

Debtor account
Particulars
Closing balance
Cash received
Total

Amount
5000
55000
60,000

Q. no.5
In the book of head office
Dr
Branch account
Cr
Particulars
Amount
Particulars
Amount
Opening stock
8000
Cash sales
70000
Petty cash
800
Cash sales of plant
800
Plant
10000
Closing stock
7000
Goods sent
50000
Petty cash (closing)
100
Exp paid
5000
Plant (closing) w-1
7200
Branch profit
11300
Total
85100
Total
85100
W-1
Plantcurrent book value. 900 sold for 800
Original value 900 + depreciation 20 % for 6 months already charged = 10 %
So 900 x 100/90= 1000
Recent book value of plant= 10,000-1000 (9000x20/100)
= 9000 1800
Supervised by TAHIR HUSSAIN +923449545245

Prepared by M com I JDCC 2015

= 7200

Q.no. 6
Dr
Cr
Particulars
Opening balances
Stock
Debtors
Petty cash
Goods sent (w-1 )
Salaries
Rent
Petty exp paid
Branch profit
Total
Dr
Cr
Particulars
Opening debtors
Credit sales (w-2)

in the book of head office


Branch account
Amount
50000
70000
250
575000
30000
12000
8000
87370
832620

Particulars
Cash sales
Cash received from
debtors
Closing balances.
Stock
Debtors
Petty cash

Amount
150000
512500

Total

832620

75000
95000
120

debtors account
Amount
70000
537500

Total
607500
W-1 calculation of goods sent
C.G.S.S.
550000
Add closing stock.
75000
625000

Particulars
Closing balance
Cash received

Amount
95000
512500

Total
607500
w-2 invoice price and credit sale
C.G.S.S
550000
invoice price. ?
profit
25%

Supervised by TAHIR HUSSAIN +923449545245

Prepared by M com I JDCC 2015

Less opening stock.


(50000)
Cost of goods sent to branch. 575000

550000x125/100
invoice.
687500
Credit sale= invoice price cash sales
687500 150000
537500

Debtor system (invoice price method)


Q.no.9
Dr
Cr
Particulars
Opening balances
Stock
Cash
Debtors
Cheque paid by H.O
Salaries
Rent
Goods sent
Loading of closing
stock
Branch profit
Total
Dr
Particulars
Opening balance
Credit sales

In the book of head office


Branch account
Amount
12000
200
30000
300
11000
4000
80000
4000
11100

Particulars
Cash sales
Collected from
debtors
Closing balances
Stock
Debtors
Cash
Loadings
Opening stock
Goods sent

Amount
35000
52000

152600

Total

152600

Amount
30,000
52000

Debtor account Cr
Particulars
Goods returned
Closing balance

Supervised by TAHIR HUSSAIN +923449545245

20000
27000
200
2400
16000

Amount
3000
27000

Prepared by M com I JDCC 2015

Total
Loadings
Opening stock
12000 x 25/125
2400

82000

Collection
Total

Closing stock
20,000 x 25/125
4000

Goods sent
80,000 x 25/125
16000

Q. no.10
Dr
Particulars
Opening balances.
Stock
Debtors
Goods sent
Rent & rates
Wages and salaries
Sundry exp
Loading of closing
stock
Branch profit

In the book of head office


Branch account Cr
Amount
Particulars
Cash sales
8000
Cash received
52000
Goods returned
40000
Closing stock
60
Debtors
1200
Loadings of opening
300
stock
1200
Loading of goods
12680
sent

Amount
18700
29500
800
6000
4200
1600
7840

Total

68640

68640

Dr
Particulars
Opening balance
Credit sales

Total
Loadings
Opening stock
8000 x 25/125

Amount
5200
30000

35200

Total
Debtors account Cr
Particulars
Discount
Bad debts
Goods returned
Closing balance
Cash received
Total

Closing stock
6000 x 25/125

Goods sent
40,000-(800) x

Supervised by TAHIR HUSSAIN +923449545245

52000
82000

Amount
300
500
700
4200
29500
35200

Prepared by M com I JDCC 2015

1600

1200

25/125
39200 x 25/125
7840

Q.no.11
Dr
Particulars
Opening debtors
Goods sent
Salaries
General exp
Advertisement exp
Rent and rates
Loading of closing
stock
Branch profit.
Total

In the book of head office


Branch account (madras)Cr
Amount
Particulars
Amount
34500
Cash sales
78600
150000
Cash received from
151400
16000
debtors
30000
2600
Loading of goods
45000
7500
sent
3200
Closing stock
9000
82200
305000

Dr
Particulars
Opening balance
Credit sales

Amount
34500
125200

Total

159700

Loadings
Opening stock

Total
debtors account Cr
Particulars
Bad debts
Sale return
Cash received
Total

Closing stock
45000 x 25/125

Goods sent
150000 x 25/125

Supervised by TAHIR HUSSAIN +923449545245

305000

Amount
6000
2300
151400
159700

Prepared by M com I JDCC 2015

9000

Dr
Particulars
Opening debtors
Goods sent
Salaries
General exp
Advertisement exp
Rent and rates
Loading of closing
stock
Branch profit.
Total

30,000

In the book of head office


Branch account(Nagpur)
Amount
Particulars
23000
Cash sales
125000
Cash received from
18000
debtors
1500
Loading of goods
5200
sent
4500
Closing stock
7000
92800
277600

Total

Dr
Particulars
Opening balance
Credit sales

Amount
23600
110,000

Total

133600

Total

Closing stock
35000 x 25/125
7000

Goods sent
125000 x 25/125
25,000

Loadings
Opening stock

debtors account
Cr
Particulars
Sale return
Cash received

Cr
Amount
82200
132400
25000
35000

277600

Amount
1200
132400
133600

Q. No. 12
Dr
Particulars
Opening stock
Debtors
Petty cash
Goods sent
Salaries
Rent & rates
Cash sent
Loading of closing
stock
Branch profit
Total
Dr
Particulars

In the book of head office


Branch account Cr
Amount
Particulars
18000
Cash sales
30000
Collection from
300
debtors
300000
Loading of opening
9000
stock
1500
Loading of goods
1100
sent
5000
36300
Closing stock
Closing debtors
Closing cash
401200
Total

Amount

Debtors account Cr
Particulars

Supervised by TAHIR HUSSAIN +923449545245

Amount
60000
2210000
3000
50000
30000
48000
200

401200

Amount

Prepared by M com I JDCC 2015

Opening balance
Credit sales

30000
228000

Collection
Closing debtors

210000
48000

Total
W-1
Loadings
Opening stock
18000x20/120
3000

258000

Total

258000

Closing stock
30000 x 20/120
5000

Goods sent
300000 x 20/120
50000

Q.13
Dr
Particulars
Opening cash
Furniture
Goods sent
Rent
Salaries
Other exp
Insurance
600
Less prepaid (300)
Loading of closing stock
Branch profit

In the book of head office


Branch account Cr
Amount
Particulars
500
Cash sales
10,000
Collection from A/R
16000
100,000
Less petty exp
(600)
1000
Loading of goods sent
2000
Closing debtors
1000
Closing stock
Closing cash
300
Furniture10000 - (10000
6200
x10/100x1/2)
32000

Total

153000

Dr
Particulars
Credit sales

Amount
25000

Total

Debtoraccount Cr
Particulars
Received from

Supervised by TAHIR HUSSAIN +923449545245

Amount
70000
15400
25000
7800
24800
500
9500

153000

Amount
16000

Prepared by M com I JDCC 2015

Total
Loadings
Opening stock

debtors
Discount allowed
Bad debts
Sale return
Balance

300
100
800
7800

25000

Total

25000

Closing stock
24800 x
33.33/133.33
6200

Goods sent
100000 x
33.33/133.33
25000

Closing stock 18000 x 133.33/100= 24000


Add return in
800
24800

Stock and debtor system


Q.no. 14
Dr
Particulars
Opening stock
Goods sent

In the book of head office


Branch account Cr
Amount
Particulars
30000
Goods return
138000
Cash sales
Credit sales
Closing stock

Amount
2000
64000
72800
29200

Total

168000

168000

Goods sent account


Particulars
Goods return
Branch a/c
Goods sold
Total

Amount
2000
27200
108800
138000

Total

Dr
Cr
Particulars
Amount
Goods sent to branch 138000

Total

Supervised by TAHIR HUSSAIN +923449545245

138000

Prepared by M com I JDCC 2015

Dr
Particulars
Loading of closing
stock

Amount
5840
27360

Gross profit
Total
Dr
Particulars
Opening debtors
Credit sales

branch adjustment account Cr


Particulars
Amount
Loading of opening
6000
stock
27200
Loading of goods
sent
Total

Debtors account Cr
Amount
24000
72800

Particulars
Bad debts
Discount allowed
Closing debtors

Dr
Particulars
Branch exp
Bad debts
Discount allowed
Net profit
Total

Profit and loss account


Amount
Particulars
14500
Gross profit
700
500
11660
27360
Total

Loadings
Opening stock
30000 x25/125
6000

Closing stock
29200 x 25/125
5840

Q.no. 15
Dr
Particulars
Opening stock
Goods sent
Received from
debtors
Total

Cr
Amount
27360

27360

Goods sent
138000-2000 x
25/125
27200

In the book of head office


Branch stock account
Amount
Particulars
15000
Cash sales
500
Credit sales
24700
Closing stock
Abnormal loss
40200

Amount
700
500
95600

Total

Supervised by TAHIR HUSSAIN +923449545245

Cr
Amount
12500
19000
8000
700
40200

Prepared by M com I JDCC 2015

Dr
Particulars
Opening debtors
Credit sales

Debtors account
Amount
2000
27200

Total

21000

Cr
Particulars
Bad debt
Cash received
Closing debtors
Total

Dr
branch adjustment account
Particulars
Amount
Particulars
Loading of closing
2000
Loading of opening
stock
175
stock
Abnormal loss
7750
Loading of goods
(loading)
sent
Gross profit
Total
9925
Total
Dr
Profit and loss account
Particulars
Amount
salaries
5000
Bad debts
1000
Net profit
1750
Total
7750
Loadings
Opening stock
Closing stock
15000 x
8000 x33.33/133.33
33.33/133.33
2000
3750

Amount
1000
17500
2500
21000
Cr
Amount
3750
6175

9925
Cr

Particulars
Gross profit

Amount
7750

Total

7750

Goods sent
24700 x
33.33/133.33
6175

Abnormal loss
700 x33.33/133.33
175

Q.no. 16
In the book of head office
Dr
Branch stock account
Particulars
Amount
Particulars
Opening stock
8000
Cash sales
Goods sent
30,000
Normal loss
Abnormal loos
Closing stock

Cr
Amount
30000
400
1600
6000

Total

38000

38000

Total
Goods sent account

Dr
Particulars
Closing stock
Goods sold
Total
Dr

Amount
6000
24000
30000

Cr
Particulars
Amount
Goods sent to branch 30000
Total

branch adjustment account

Supervised by TAHIR HUSSAIN +923449545245

30000
Cr

Prepared by M com I JDCC 2015

Particulars
Loading of closing
stock
Lading of normal loss
Loading of abnormal
loss

Amount
1200
80
320

Particulars
Loading of opening
stock
Loading of goods
sent

Amount
1600
6000

Total

7600

6000

Gross profit
Total

7600

Dr
Profit and loss account
Particulars
Amount
Normal loss
320
Net profit
5680
Total
6000
Loadings
Opening stock
8000 x25/125
1600

Closing stock
6000 x 25/125
1200

Cr
Particulars
Gross profit

Amount
6000

Total

6000

Goods sent
30000 x25/125
6000

Normal loss
400 x25/125
80

Abnormal loss
1600 x 25/125
320

Q .NO.17
Dr
Branch stock account
Particulars
Amount
Goods sent account
176000

Total

176000

Dr
Goods sentAccount
Particulars
Amount
Loading of goods
43700
sent
1200
Goods return
131100
Balance
Total
176000
Dr

Cr
Particulars
Goods return
Goods sold
Closing stock
Shortage of stock

Amount
1200
24000
150,000
800

Total

176000

Particulars
Goods sent

Cr
Amount
176000

Total

176000

Branch adjustment account

Supervised by TAHIR HUSSAIN +923449545245

Cr

Prepared by M com I JDCC 2015

Particulars
Loading of closing
stock
Loading of shortage
Gross profit
Total
Dr
Particulars
Shortage
Net profit
Total
Working
Invoice price of
goods sent
132000 x 100/75
176000 less return
1200
174800

Q.no 18
Dr
Particulars
Goods sent
Return in by
customer
Total

Amount
6000
200
37500

Particulars
Loading goods sent

Amount
43700

43700

Total

43700

Branch profit & loss account


Amount
Particulars
600
Gross profit
36900
37500
Total

Closing
stock
24000 x 25 /
100

Goods sent

Shortage

174800x25/10
0
43700

800 x 25/100
200

Branch stock account


Amount
351000
5000

356000

Dr
Branch debtors account
Particulars
Amount
Credit sale
175000

Cr
Amount
37500
37500

Cr
Particulars
Cash sales
Credit sales
Goods spoiled
Closing goods
Total

Amount
125000
175000
500
55500
356000

Particulars
Cash received

Cr
Amount
156000

Supervised by TAHIR HUSSAIN +923449545245

Prepared by M com I JDCC 2015

Total

Discount
Return
Closing debtors
Total

175000

Dr
Branch adjustment account
Particulars
Amount
Loading of closing
11100
stock
100
Loading of spoilage
59000
Gross profit
Total
70200
Dr
Particulars
Discount
Wages
Freight
Other exp
Spoilage
Net profit
Total
Working
Invoice price of
goods sent
289899 x 125/100
351000

Cr
Particulars
Loading of goods
sent

Amount
70200

Total

70200

Branch profit & loss account


Amount
Particulars
4000
Gross profit & loss
3000
11000
6000
400
34600
59000
Total

Closing
stock
55500 x
25/125
11100

4000
5000
10,000
175000

Goods sent

Shortage

351000x25/12
5
70200

500 x 25/125
100

Cr
Amount
59000

59000

Q.No.19
Dr
Particulars
Return
Goodssent

Total
Dr
Particulars
Return
Loading of goods
sent
Balance

Branch stockaccount
Amount
16080
180,000

196080

Cr
Particulars
Goods return
Cash sale
Credit sale
Closing stock
Shortage of stock
Total

goods sent to Branch account


Amount
Particulars
1680
Goods sent
59440
118880

Supervised by TAHIR HUSSAIN +923449545245

Amount
1680
100800
72000
21000
600
196080
Cr
Amount
180,000

Prepared by M com I JDCC 2015

Total
Dr
Particulars
Opening balance
Credit sales

Total

180,000

Total

Branch debtor account


Amount
6608
72000

78008

180,000
Cr

Particulars
Bad debt
Cash received
Discount allowed
Balance
Total

Amount
596
68624
1808
7580
78008

Dr
Branch adjustment account
Particulars
Amount
Particulars
Closing stock loading 7000
Opening stock
Loading of shortage
200
loading
Gross profit
57600
Goods sent loading

Amount
5360
59440

Total

64800

Dr
Particulars
Bad debt
Discount
Shortage
Net profit
Total

Working
Opening stock
16080 x 1/3
5360

64800

Total

Branch profit & loss account


Amount
Particulars
596
Gross profit
1808
400
54796
57600
Total

Closing
stock
21000 x 1/3
7000

Goods sent
1800001680
178320 x
1/3
59440

Cr

Cr
Amount
57600

57600

Shortage
6000 x 1/3
200

Q.No.20
Dr Branch stock account
Particulars
Amount
Opening stock
6000
Goods sent
66000
Surplus
10,000

Particulars
Cash sale
Credit sale
Closing stock

Supervised by TAHIR HUSSAIN +923449545245

Cr
Amount
23000
50,000
8800

Prepared by M com I JDCC 2015

Total

Shortage of stock
Total

82000

Dr
goods sent to Branch account
Particulars
Amount
Particulars
Loading of goods
24750
Goods sent
sent
41250
Balance
Total
180,000
Total
Dr
Branch adjustment account
Particulars
Amount
Closing stock loading 3300
Loading of shortage
75
Gross profit
33625

Total

37000

Dr
Branch profit & loss account
Particulars
Amount
Branch exp
8683
Shortage
125
Net profit
24817
Total
33625

200
82000
Cr
Amount
66000

180,000
Cr

Particulars
Opening stock
loading
Goods sent loading
Surplus

Amount
2250
24750
10,000

Total

37000
Cr

Particulars
Gross profit

Amount
33625

Total

33625

Note: cost is equal to 100 % and list price is = cost + 100% so the
List price is = 200 % and invoice price = list price 20 %
That is 200 (200 x 2/100)
200-40 = 160
So we can say that invoice price is 60 % above the cost

Working
Opening stock
6000 x 60/160
2250

Closing
stock
8800 x
60/160
3300

Q.No.21
Dr Branch stock account
Particulars
Amount
Goods sent
28000

Goods sent
66000 x
60/160
24750
Credit
50000 x
40/200
10,000

Shortage
200 x 60/160
75

Particulars
Goods return

Supervised by TAHIR HUSSAIN +923449545245

Cr
Amount
1000

Prepared by M com I JDCC 2015

Total

Cash sale
Credit sale
Closing stock
Authorized reduction
Total

28000

Dr
goods sent to Branch account
Particulars
Amount
Particulars
Return
1000
Goods sent
Loading of goods
6750
sent
20250
Balance
Total
28000
Total
Dr
Branch adjustment account
Particulars
Amount
Closing stock loading 1545
Authorized reduction 820
Gross profit
4385
Total

Cr
Amount
28000

28000
Cr

6750

Dr
Branch profit & loss account
Particulars
Amount
Branch exp
1000
Net profit
3385
Total
4385
Working
Closing
stock
6180 x
33.33/133.
33
1545

18000
2000
6180
820
28000

Particulars
Goods sent loading

Amount
6750

Total

6750
Cr

Particulars
Gross profit

Amount
4385

Total

4385

Goods sent
28000-1000
27000x33.33/1
33.33
6750

Q.No.22
Dr Branch stock account
Particulars
C
Opening stock
5500
Goods sent
30000
Surplus
1375

M
7500
25500
550

Total

33550

Dr

36875

Cr
Particulars
Return
Cash sale
Credit sale
Closing stock
Total

goods sent to Branch account

Supervised by TAHIR HUSSAIN +923449545245

C
500
18500
13000
4875
36875

M
425
17125
9250
6750
33550
Cr

Prepared by M com I JDCC 2015

Particulars
Return
Loading
Balance
Total

C
500
5900
23600
30000

M
425
5015
20060
25500

Dr
Branch adjustment account
Particulars
C
M
Loading of closing 975
1350
stock
7400
5715
Gross profit
Total
Working
Opening stock
C. 5500 x 25 /125 =
1100
M . 7500 x 25 /125 =
1500

8375

7065

Closing stock
C. 4875 x 25/125 =
975
M. 6750 x 25/125 =
1350

Particulars
Branch stock a/c

C
30000

M
25500

Total

30000

25500

Particulars
Loading of opening
stock
Loading of goods
sent
Surplus
Total

C
1100
5900
1375

M
1500
5015
550

8375

7065

Cr

Goods sent
C. 30000-500 x 25/125=
5900
M. 25500-425 x 25/125
=5015

Surplus
C. 1375 x
25/125=275
M. 550 x
25/125=110

Final account system


Q.No.30
Dr
Particulars
Credit sales

Total

Branch debtors account


Amount
Particulars
43000
Cash received
Discount allowed
Bad debt
Balance
43000
Total

Supervised by TAHIR HUSSAIN +923449545245

Cr
Amount
41000
1000
500
500
43000

Prepared by M com I JDCC 2015

Dr Branch stock account


Particulars
Amount
Opening stock
30000
Goods sent
96000
Branch exp
5700
Loading of closing
5000
stock
9000
Branch profit
Total

Cr
Particulars
Cash sale
Cash received
Loading of opening
stock
Loading of goods
sent
Closing stock
Closing debtors
Total

145700

Dr
Memorandum profit & loss account
Particulars
Amount
Particulars
Opening stock
24000
Cash sale
Goods sent
76800
Credit sale
Closing stock
Gross profit
16200
Total
117000
Total
Discount
1000
Gross profit
Bad debt
500
Expenses
5700
Net profit
9000
Total
16200
Total

Amount
54000
41000
6000
19200
25000
500

145700
Cr
Amount
54000
43000
20000
117000
16200

16200

Working (loading)
Opening stock
30000 x 25 /125 = 6000

Closing stock
25000 x 25 /125 = 5000

Goods sent
96000 x 25 /125 = 19200

Working (cost price)


Opening stock
30000 6000 = 24000

Closing stock
25000 5000 = 20,000

Goods sent
96000 19200 = 76800

Q.No.31
Dr
Particulars

Branch debtors account


Amount

Particulars

Supervised by TAHIR HUSSAIN +923449545245

Cr
Amount

Prepared by M com I JDCC 2015

Credit sales

172000

Total

172000

Dr
Branch stock account
Particulars
Amount
Opening stock
96000
Goods sent
380,000
Branch exp
22800

Branch profit
Total

39200
145700

Cash received
Discount allowed
Bad debt
Balance
Total

Particulars
Cash sale
Cash received
Loading of goods
sent
Closing stock
Closing debtors
Total

Dr
Memorandum profit & loss account
Particulars
Amount
Particulars
Opening stock
96000
Cash sale
Goods sent
304000
Credit sale
Closing stock
Gross profit
68000
Total
468000
Total
Discount
4000
Gross profit
Bad debt
2000
Expenses
22800
Net profit
39200
Total
68000
Total

164000
4000
2000
2000
172000
Cr
Amount
216000
164000
76000
80000
2000
538000
Cr
Amount
216000
172000
80000
468000
68000

68000

Q.No.32
Dr
Branch debtors account
Particulars
Amount
Opening debtors
6440
Credit sales
51280

Particulars
Cash received
Discount allowed
Bad debt
Balance

Supervised by TAHIR HUSSAIN +923449545245

Cr
Amount
42660
1120
650
13290

Prepared by M com I JDCC 2015

Total

57720

Total

Dr
Branch stock account
Particulars
Amount
Opening stock
48660
Goods sent
123000
Branch exp
17290
Loading of closing
17800
stock
6440
Opening debtors
18570
Branch profit

Total

57720

Particulars
Goods return
Cash sale
Cash received
Loading of opening
stock
Loading of goods
sent
Closing stock
Closing debtors
Total

231760

Dr
Memorandum profit & loss account
Particulars
Amount
Particulars
Opening stock
32440
Cash sale
Goods sent
80960
Credit sale
Closing stock
Gross profit
37630
Total
151030
Total
Discount
1120
Gross profit
Bad debt
650
Expenses
17290
Net profit
18570
Total
37360
Total

Cr
Amount
1560
64150
42660
16220
40480
53400
13290

231760
Cr
Amount
64150
51280
35600
151030
37630

37360

Working (loading)
Opening stock
48660 x 50/150 = 16220

Closing stock
53400 x 50/150 = 17800

Goods sent
123000-1560 x 50 /150 =
40480

Working (cost price)


Opening stock
48660 16220 = 32440

Closing stock
53400 - 17800 = 35600

Goods sent
121440 40480 = 80960

Q.No.33
Dr
Branch trading account
Particulars
Amount
Opening stock
30800
Goods sent
300000
Profit
80000

Particulars
Sales
Closing stock

Supervised by TAHIR HUSSAIN +923449545245

Cr
Amount
400000
10800

Prepared by M com I JDCC 2015

C.80000x 9/20
T. 80000 x 6/20
B. 80000 x 5/20
Total

= 36000
= 24000
= 20000
410800

Total

Working -1 cost and invoice price of goods sent


Goods sent?
Opening balance=54000
Add purchases = 274000
Total
328000
Less ending
(28000)
Cost of goods sent300000
Invoice price=?
Sales
= 400000
Add closing stock at invoice
13500
Total
413500
Less opening stock at invoice
(38500)
Invoice price of goods sent375000
Ratio of invoice. 375000/30000x100 = 125 %
Cost = 100% profit 25%
Invoice = 125%
Working (cost price)
Opening stock
38500 x 100/125 = 30800

Closing stock
13500 x 100/125 = 10800

Departmental account
Supervised by TAHIR HUSSAIN +923449545245

410800

Prepared by M com I JDCC 2015

Q.No.1
Dr

Departmental account

Cr

Descriptio
n

Electrical

Furniture

Leisure
goods

Descriptio
n

Electrical

Furniture

Leisure
goods

Opening stock

6080
18195

17298
54632

14370
27388

Sales
Closing
stock

29840

73060

39581

7920

16150

22395

Total

37760

89210

61976

Purchases

G. profit
Total

13485
37760

17280
89210

20218
61976

Supervised by TAHIR HUSSAIN +923449545245

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