Solved Numerical
Financial Accounting
M.com I
Solved Questions.
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
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
Supervised by TAHIR HUSSAIN +923449545245
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
Supervised by TAHIR HUSSAIN +923449545245
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
6000000
Q6
Dat
e
1
2
Particulars
General journal
Dr (amount)
General reserve
w-1
To bonus to shareholder a/c
600000
600000
Cr ( amount )
600000
Working; 1
Original capital: 10, 00000
Bonus declared: 60 %
1000000 x 60/100
600000
200000
400000
Q7
Dat
e
1
2
Particulars
General journal
Dr (amount)
150000
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
Supervised by TAHIR HUSSAIN +923449545245
150000
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
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
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
Supervised by TAHIR HUSSAIN +923449545245
300000
60000
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
64000
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
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
Dr
Amount
1800000
Cr
Amount
1800000
900000
900000
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
Q .2
Journal entries.
Date
Particulars
Dr
Amount
Cr
Amount
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
4810,000
25,00,00
200,000
Sundry creditors
1100,00
Stock
900,000
Security premium
162000
Debtors
1500,000
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)
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
Dr
Amount
56000
Cr
Amount
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
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
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
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
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
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
100,000
30,000
2000
Cr
Particulars
Balance b/d
Investment
Share capital
Share premium
Amount
52500
6500
59000
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
Supervised by TAHIR HUSSAIN +923449545245
Rs
100000
100000
10000
100000
Rs
100000
50000
5000
100000
600000
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
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
380000
Rs
50000
380000
To debenture
To cash
422200
20
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.
Q.No.5
Dat
e
A (i
(ii)
Particulars
Journalentries
Rs.
Rs
B
(i)
Debenture
To Bank
Redemption out of capital
Bank
To sinking fund investment
Investment sold for redemption
Debenture
To bank
Redemption
D i
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
Supervised by TAHIR HUSSAIN +923449545245
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
30-4-93
6000
6000
Profit transferred
31-12-93
2000
2000
Date
30-4-93
Rs
98000
30-4-93
Debentures
To own debentures
To Profit on debenture
100000
96000
4000
30-4-93
4000
Profit transferred
4000
2000
To interest a/c
2000
Q.no 8
Date
1-1-89
Rs
20,00,000
30-6-89
Interest
To cash
70,000
70,000
31-12-89
Interest
To cash
70,000
70,000
Profit transferred
31-12-89
140,000
140,000
31-12-89
200,000
191000
9000
191000
9000
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
31-5-91
Own debenture(200X98)
Interest
To bank
19600
500
20100
30-6-91
5500
5400
100
31-12-91
Debenture interest
To bank
6000
5400
600
31-12-91
6000
6000
700
700
Debenture interest
To bank
6000
5400
600
30-9-92
Own debenture
Interest (CUM INEREST)
To bank
9550
150
9700
31-12-92
Debenture interest
5850
To bank
5100
750
31-12-92
Debenture
To own debenture
To capital reserve
20,000
19600
400
31-12-92
31-12-92
12000
12000
1350
1350
Q .No.10
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
31-3-93
30-6-93
Total
5750
Q. no 11
90000
Debenture intr
1125
Debenture Account
Total
5750
90,000
90000
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
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
Particulars
Amount
Date
Particulars
Amount
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
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
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
Particulars
Amount
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
31-12
18098
18098
31-12
18100
18100
31-12-90
Bank
To interest on sinking fund invst
905
905
31-12-90
905
905
31-12-90
18098
18098
31-12-90
19000
19000
31-12-91
Bank
To interest on sinking fund invst
1855
1855
31-12-91
1855
1855
30-9-91
18098
18098
31-12-91
5000
19800
20000
To bank
20000
31-12-92
Bank
To interest on sinking fund invst
2855
2855
31-12-92
2855
2855
31-12-92
18098
18098
31-12-92
20900
20900
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
77800
3905
3905
3905
18098
18098
77800
31-12-93
Sinking fund
To sinking fund invest
300
300
Debenture
To bank
100,000
100,000
Redemption
31-12-93
Sinking fund
To general reserve
99705
99705
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
(5000)
5000
( 333 )
4667
5000
( 2000 )
500
( 167 )
333
2000
( 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
(300,000)
300,000
( 60,000 )
( 60,000 )
( 360,000)
240,000
----------------(240,000)
Nil
Nil
W-2
Unmarked Application.
Zeta 20 %
500,000
( 250,000 )
250,000
( 30,000 )
220,000
( 120,000 )
100,000
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
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
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
Underwriters
Gross liabilities
Less marked application
A
24,000
(7200)
16800
( 5400)
11400
(1000)
10400
3200
13600
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
Working 2
Surplus of Q & O
C
6000
( 3200)
2800
(1350 )
1450
(250)
1200
1200
2400
Working 3
Surplus of N & P
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
18000
Ratio:
X
48
20
24
10
12
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
41200
13600
4100
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
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
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
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
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
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
= 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)
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%
550000x125/100
invoice.
687500
Credit sale= invoice price cash sales
687500 150000
537500
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
20000
27000
200
2400
16000
Amount
3000
27000
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
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
52000
82000
Amount
300
500
700
4200
29500
35200
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
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
305000
Amount
6000
2300
151400
159700
9000
Dr
Particulars
Opening debtors
Goods sent
Salaries
General exp
Advertisement exp
Rent and rates
Loading of closing
stock
Branch profit.
Total
30,000
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
Amount
Debtors account Cr
Particulars
Amount
60000
2210000
3000
50000
30000
48000
200
401200
Amount
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
Total
153000
Dr
Particulars
Credit sales
Amount
25000
Total
Debtoraccount Cr
Particulars
Received from
Amount
70000
15400
25000
7800
24800
500
9500
153000
Amount
16000
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
Amount
2000
64000
72800
29200
Total
168000
168000
Amount
2000
27200
108800
138000
Total
Dr
Cr
Particulars
Amount
Goods sent to branch 138000
Total
138000
Dr
Particulars
Loading of closing
stock
Amount
5840
27360
Gross profit
Total
Dr
Particulars
Opening debtors
Credit sales
Debtors account Cr
Amount
24000
72800
Particulars
Bad debts
Discount allowed
Closing debtors
Dr
Particulars
Branch exp
Bad debts
Discount allowed
Net profit
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
Amount
700
500
95600
Total
Cr
Amount
12500
19000
8000
700
40200
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
30000
Cr
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
Cr
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
Closing
stock
24000 x 25 /
100
Goods sent
Shortage
174800x25/10
0
43700
800 x 25/100
200
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
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
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
Amount
1680
100800
72000
21000
600
196080
Cr
Amount
180,000
Total
Dr
Particulars
Opening balance
Credit sales
Total
180,000
Total
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
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
Cr
Amount
23000
50,000
8800
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
Cr
Amount
1000
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
C
500
18500
13000
4875
36875
M
425
17125
9250
6750
33550
Cr
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
Total
Cr
Amount
41000
1000
500
500
43000
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
Closing stock
25000 5000 = 20,000
Goods sent
96000 19200 = 76800
Q.No.31
Dr
Particulars
Particulars
Cr
Amount
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
Cr
Amount
42660
1120
650
13290
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
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
Cr
Amount
400000
10800
C.80000x 9/20
T. 80000 x 6/20
B. 80000 x 5/20
Total
= 36000
= 24000
= 20000
410800
Total
Closing stock
13500 x 100/125 = 10800
Departmental account
Supervised by TAHIR HUSSAIN +923449545245
410800
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