Written as per the revised syllabus prescribed by the Maharashtra State Board of Secondary and Higher Secondary Education, Pune. BOOK-KEEPING & ACCOUNTANCY SOLUTIONS STD. XII Salient Features Solutions to all the Textual and Practice Problems. Accurate solutions with precise formats. Working Notes to simplify the problems. Systematic presentation to alleviate the learning process. Self evaluative in nature. Printed at: Repro Knowledgecast Ltd., Mumbai Target Publications Pvt. Ltd. No part of this book may be reproduced or transmitted in any form or by any means, C.D. ROM/Audio Video Cassettes or electronic, mechanical including photocopying; recording or by any information storage and retrieval system without permission in writing from the Publisher. P.O. No. 85728 10310_12210_JUP
Preface "Std. XII Commerce: Book-Keeping and Accountancy Solutions" has been designed to complement the Std. XII Commerce: Book-Keeping and Accountancy book. This book will enable the student to verify the solutions and solve the questions independently. The book includes accurate solutions to all the Textual and Practice Problems with precise formats. Working Notes have been provided to simplify the various complicated adjustments in the problems. The systematic and consistent presentation of solutions alleviates the learning process for the student. We are sure, this study material will turn out to be a powerful resource for the students and facilitate them in understanding the concepts of this subject in the most lucid way. The journey to create a book is strewn with triumphs, failures and near misses. If you think we've nearly missed something or want to applaud us for our triumphs, we'd love to hear from you. Please write to us at: mail@targetpublications.org Best of luck to all the aspirants! Yours faithfully, Publisher Sr. No. Chapter Page No. 2. Partnership Final Accounts 1 3. Reconstitution of Partnership (Admission of Partner) 70 4. Reconstitution of Partnership (Retirement of Partner) 121 5. Reconstitution of Partnership (Death of Partner) 151 6. Dissolution of Partnership Firm 172 7. Accounts of Not for Profit Concerns 218 8. Single Entry System 251 9. Bill of Exchange (Trade Bill) 280 10. Company Accounts Part I (Accounting for Shares) 341 11. Company Accounts Part II (Accounting for Debentures) 370 12. Analysis of Financial Statements 388 Note: All Textual questions are represented by * mark.
02 Chapter 02: Partnership Final Accounts Partnership Final Accounts Textual Problems *Sol. Q.1.: Trading Account for the year ended 31 st Mar, 2009 To Opening Stock 18,000 By Sales 85,000 To Purchases 46,700 By Closing Stock 31,000 To Wages 9,900 Add: Outstanding Wages 1,400 11,300 To Carriage 3,200 To Gross Profit c/d 36,800 1,16,000 1,16,000 Profit and Loss Account for the year ended 31 st Mar, 2009 To Reserve for Bad & By Gross Profit b/d 36,800 Doubtful Debts By Commission 1,800 Old Bad Debts 400 Add: Outstanding Commission 1,200 3,000 Add: New Bad Debts 1,500 Add: New R.D.D. Less: Old R.D.D. 1,900 To Commission 4,600 To Postage and Telegram 3,600 To Insurance 1,200 Less: Prepaid Insurance 500 700 To Depreciation on Plant and Machinery 4,070 To Salaries 10,500 Add: Outstanding Salaries 800 11,300 Ajay 6,815 Vijay 6,815 13,630 39,800 39,800 Partners Capital Account Ajay Vijay Ajay Vijay By Balance b/d 60,000 35,000 To Balance c/d 66,815 41,815 By Profit & Loss A/c 6,815 6,815 66,815 41,815 66,815 41,815 1
Std. XII : Commerce 2 2 Balance Sheet as on 31 st Mar, 2009 Liabilities Assets Capital Sundry Debtors 28,000 Ajay 66,815 Less: Bad debts 1,500 26,500 Vijay 41,815 1,08,630 Bills Receivable 5,000 Outstanding Expenses Investments 13,500 Wages 1,400 Prepaid Insurance 500 Salaries 800 2,200 Plant & Machinery 40,700 Sundry Creditors 25,000 Less: Depreciation (10%) 4,070 36,630 Bills Payable 6,000 Furniture 18,000 Cash in Hand 2,500 Prepaid Rent 7,000 Commission Receivable 1,200 Closing Stock 31,000 Working Note: 1,41,830 1,41,830 Calculation of depreciation on Plant and Machinery = 40,700 12 12 10 = 4,070 *Sol. Q.2.: Trading Account for the year ended 31 st Mar, 2010 To Opening Stock 20,000 By Sales 70,000 To Purchases 30,000 By Closing Stock 35,000 Add: Unrecorded Purchases 4,000 34,000 To Wages 5,000 Add: Outstanding Wages 2,000 7,000 To Power and Fuel 3,000 To Gross Profit c/d 41,000 1,05,000 1,05,000 Profit and Loss Account for the year ended 31 st Mar, 2010 To Reserve for Bad & By Gross Profit b/d 41,000 Doubtful Debts By Discount 5,000 Old Bad Debts Add: New Bad Debts 2,000 Add: New R.D.D. 500 Less: Old R.D.D. 2,500 To Depreciation Land and Building 1,500 Machinery 2,500 4,000 To Salaries 10,000 Add: Outstanding Salaries 1,000 11,000 To Advertisement 6,000 Less: Prepaid (1 year) 3,000 3,000 To Insurance 2,000
Chapter 02: Partnership Final Accounts To Rent 10,000 To Interest on Capital Sanjay 2,000 Sudhir 1,500 3,500 Sanjay 6,000 Sudhir 4,000 10,000 Sanjay 46,000 46,000 Partners Capital Account Sudhir Sanjay Sudhir To Drawings A/c 2,000 3,000 By Balance b/d 40,000 30,000 By Interest on Capital A/c 2,000 1,500 To Balance c/d 46,000 32,500 By Profit & Loss A/c 6,000 4,000 Liabilities 48,000 35,500 48,000 35,500 Balance Sheet as on 31 st Mar, 2010 Assets Capital Debtors 12,000 Sanjay 46,000 Less: Bad Debts 2,000 Sudhir 32,500 78,500 10,000 Outstanding Expenses: Less: R.D.D. (5%) 500 9,500 Wages 2,000 Land and Building 30,000 Salaries 1,000 3,000 Less: Depreciation (5%) 1,500 28,500 Sundry Creditors 21,000 Plant & Machinery 25,000 Add: Unrecorded Purchases 4,000 25,000 Less: Depreciation (10%) 2,500 22,500 Bills Payable 20,000 Furniture 16,000 Outstanding Rent 1,500 Prepaid Advertisement 3,000 Bills Receivable 8,000 Cash in Hand 5,500 Closing Stock 35,000 1,28,000 1,28,000 Working Notes: i. Calculation of amount of R.D.D. to be provided on debtors = 5% of ( of Debtors Bad Debts) ii. = 5 (12,000 2,000) = 5 10,000 = 500 Calculation of Interest on Capital: a. Sanjay s Capital = 40,000 12 12 5 = 2,000 b. Sudhir s Capital = 30,000 12 12 5 = 1,500 3
Std. XII : Commerce *Sol. Q.3.: 4 4 Trading Account for the year ended 31 st Mar, 2011 To Opening Stock 32,000 By Sales 1,93,500 To Purchases 64,000 Less: Return Inward 3,500 1,90,000 Less: Return Outward 2,500 61,500 By Goods withdrawn by To Carriage 1,500 Roshan 750 To Wages and Salaries 35,000 Less: Advance (Prepaid) 3,000 32,000 By Closing Stock 25,000 To Gross Profit c/d 88,750 2,15,750 2,15,750 Profit and Loss Account for the year ended 31 st Mar, 2011 To Reserve for Bad & By Gross Profit b/d 88,750 Doubtful Debts Old Bad Debts 1,750 Add: New Bad Debts Add: New R.D.D. 1,500 Less: Old R.D.D. 3,250 To Depreciation Plant and Machinery 1,500 Building 4,000 5,500 To Conveyance 4,000 To Rent, Rates and Taxes 2,000 To Repairs of Building 3,500 Rohan 47,000 Roshan 23,500 70,500 88,750 88,750 Partners Capital Account Rohan Roshan Rohan Roshan To Drawings A/c 750 By Balance b/d 90,000 50,000 By Profit & Loss A/c 47,000 23,500 To Balance c/d 1,37,000 72,750 1,37,000 73,500 1,37,000 73,500 Balance Sheet as on 31 st Mar, 2011 Liabilities Assets Capital Plant and Machinery 30,000 Rohan 1,37,000 Less: Depreciation (5%) 1,500 28,500 Roshan 72,750 2,09,750 Furniture 18,500 Sundry Creditors 15,000 Bills Receivable 5,000
Chapter 02: Partnership Final Accounts Unpaid Wages 1,500 Sundry Debtors 32,000 Less: R.D.D. 1,500 30,500 Cash in Hand 14,750 Land & Building 83,500 Less: Repairs of Building 3,500 80,000 Less : Depreciation (5%) 4,000 76,000 Patents 25,000 Prepaid Wages 3,000 Closing Stock 25,000 Working Notes: Calculation of amount of depreciation on Building: = of Building Repairs to Building 12 12 5 Depreciation = 80,000 12 12 5 = 4,000 *Sol. Q.4.: 2,26,250 2,26,250 = 83,500 3,500 = 80,000 Trading Account for the year ended 31 st Mar, 2012 To Opening Stock 52,000 By Sales 3,20,000 To Purchases 1,76,000 Add: Unrecorded Sales 6,000 3,26,000 To Wages 22,000 By Closing Stock 80,000 Add: Outstanding Wages 4,000 26,000 To Gross Profit c/d 1,52,000 4,06,000 4,06,000 Profit and Loss Account for the year ended 31 st Mar, 2012 To Reserve for Bad & Doubtful By Gross Profit b/d 1,52,000 Debts By Reserve for Discount on Old Bad Debts 3,000 Creditors Add: New Bad Debts 4,000 Old Discount of Creditors Add: New R.D.D. 4,300 Add: New Discount on Less: Old R.D.D. 2,000 9,300 Creditors To Reserve for Discount on Add: New Reserve for Debtors Discount on Creditors 2,520 Old Discount on Debtors Less: Old Reserve for Add: New Discount Discount on Creditors 2,520 on Debtors By Rent Received 9,600 Add: New Reserve for By Discount Received 3,600 Discount on Debtors 1,634 Less: Old Reserve for Discount on Debtors 1,634 5
Std. XII : Commerce To Salaries 28,000 Add: Outstanding Salaries 3,066 31,066 To Providend Fund Contribution 5,500 To Rent 16,000 Add: Outstanding Rent 3,200 19,200 To Office Expenses 5,000 To Discount Allowed 2,500 To Depreciation on Motor Vehicle 2,500 Roma 45,510 Mona 45,510 91,020 6 6 1,67,720 1,67,720 Partners Capital Account Roma Mona Roma Mona By Balance b/d 50,000 50,000 To Balance c/d 95,510 95,510 By Profit & Loss A/c 45,510 45,510 95,510 95,510 95,510 95,510 Balance Sheet as on 31 st Mar, 2012 Liabilities Assets Capital Sundry Debtors 84,000 Roma 95,510 Add: Unrecorded Sales 6,000 Mona 95,510 1,91,020 90,000 Outstanding Expenses: Less: Bad Debts 4,000 Wages 4,000 86,000 Salaries 3,066 Less: R.D.D. (5%) 4,300 Rent 3,200 10,266 81,700 Provident Fund 50,000 Less: New Reserve for Interest on P.F. Investments 2,800 Discount on Debtors 1,634 80,066 Sundry Creditors 84,000 Premises 78,000 Less: New Reserve on Creditors 2,520 81,480 Motor Vehicle 50,000 Less : Depreciation (5%) 2,500 47,500 Provident Fund Investments 50,000 Closing Stock 80,000 3,35,566 3,35,566 Working Notes: i. Calculation of amount of R.D.D. to be provided on Debtors = 5% of ( of Debtors + Unrecorded Sales Bad Debts) 5 = (84,000 + 6,000 4,000) = 5 86,000 = 4,300 Calculation of amount of Reserve for Discount on Debtors = 2% of ( of Debtors + Unrecorded Sales Bad Debts New R.D.D.) 2 = (84,000 + 6,000 4,000 4,300) = 2 81,700 = 1,634
Chapter 02: Partnership Final Accounts ii. Calculation of amount of Reserve for Discount on Creditors = 3% of of Creditors 3 = 84,000 = 2,520 iii. Calculation of amount of Outstanding Rent: of Rent given in Trial Balance = 16,000; Period given in Trial Balance = 10 months; Period of Outstanding Rent = 2 months Outstanding Rent = 16,000 2 10 = 3,200 *Sol. Q.5.: Trading Account for the year ended 31 st Mar, 2013 To Opening Stock 28,000 By Sales 2,12,000 To Purchases 1,16,400 Add: Unrecorded Sales 10,000 2,22,000 To Royalties 6,200 By Goods Stolen 10,000 To Wages and Salaries 14,800 By Closing Stock 76,000 To Trade Expenses 2,400 To Gross Profit c/d 1,40,200 3,08,000 3,08,000 Profit and Loss Account for the year ended 31 st Mar, 2013 To Reserve for Bad & Doubtful Debts By Gross Profit b/d 1,40,200 Old Bad Debts 1,000 Add: New Bad Debts Add: New R.D.D. 3,700 Less: Old R.D.D. 1,800 2,900 To Depreciation Plant and Machinery 4,400 Motor Van 9,450 13,850 To Advertisement 8,200 To Salaries 11,000 To Office Rent 4,000 To General Expenses 2,800 To Loss by Theft 10,000 Kale 58,300 Gore 29,150 87,450 1,40,200 1,40,200 Partners Capital Account Kale Gore Kale Gore By Balance b/d 80,000 40,000 To Balance c/d 1,38,300 69,150 By Profit & Loss A/c 58,300 29,150 1,38,300 69,150 1,38,300 69,150 7
Std. XII : Commerce 8 8 Balance Sheet as on 31 st Mar, 2013 Liabilities Assets Capital Plant and Machinery 44,000 Kale 1,38,300 Less: Depreciation (10%) 4,400 39,600 Gore 69,150 2,07,450 Freehold Property 36,000 Sundry Creditors 54,000 Motor Van 63,000 Bills Payable 36,000 Less: Depreciation (15%) 9,450 53,550 Bills Receivable 16,000 Less: Dishonoured 4,000 12,000 Sundry Debtors 60,000 Add: Bill Dishonoured 4,000 64,000 Add: Unrecorded Sales 10,000 74,000 Less: R.D.D. (5%) 3,700 70,300 Cash in Hand 10,000 Closing Stock 76,000 Working Note: Calculation of amount of R.D.D. to be provided on Debtors = 5% of ( of Debtors + Bill Dishonoured + Unrecorded Sales) 5 = (60,000 + 4,000 + 10,000) = 5 74,000 = 3,700 *Sol. Q.6.: 2,97,450 2,97,450 Trading Account for the year ended 31 st Mar, 2010 To Opening Stock 88,000 By Sales 3,08,000 To Purchases 1,76,000 By Goods destroyed by Fire 16,000 To Wages 23,500 By Closing Stock 80,000 Add: Outstanding Wages 2,400 25,900 To Gross Profit c/d 1,14, 4,04,000 4,04,000 Profit and Loss Account for the year ended 31 st Mar, 2010 To Reserve for Bad & By Gross Profit b/d 1,14, Doubtful Debts By Interest on Investments Old Bad Debts 4,000 (Accrued) 1,600 Add: New Bad Debts Add: New R.D.D. 4, Less: Old R.D.D. 8, To Depreciation Land and Building 6,500 Machinery 9,000 15,500
Chapter 02: Partnership Final Accounts To Salaries 15,000 Add: Outstanding Salaries 3,000 18,000 To Office Expenses 8,000 To Bank Charges 2,600 To Legal Charges 3,000 Less: Prepaid Legal Charges 1,200 1,800 To Interest 3,600 To Export Duty 3,800 To Travelling Expenses 3,200 To Electricity Charges 2,300 To Loss by Fire 3,000 To Interest on Capital Seeta 9,600 Geeta 9,600 19,200 Seeta 13,300 Geeta 13,300 26,600 1,15,700 1,15,700 Partners Current Account Seeta Geeta Seeta Geeta To Balance b/d 4,000 By Balance b/d 5,000 By Interest on Capital A/c 9,600 9,600 To Balance c/d 27,900 18,900 By Profit & Loss A/c 13,300 13,300 27,900 22,900 27,900 22,900 Balance Sheet as on 31 st Mar, 2010 Liabilities Assets Capital A/c s: Machinery 90,000 Seeta 1,20,000 Less: Depreciation (10%) 9,000 81,000 Geeta 1,20,000 2,40,000 Land and Building 1,30,000 Current A/c s: Less: Depreciation (5%) 6,500 1,23,500 Seeta 27,900 Sundry Debtors 82,000 Geeta 18,900 46,800 Less: R.D.D. (5%) 4, 77,900 Outstanding Expenses: Furniture 37,000 Wages 2,400 8% Debentures 40,000 Salaries 3,000 5,400 Add: Interest Receivable 1,600 41,600 Sundry Creditors 1,03,000 Insurance Claim 13,000 Bank Overdraft 60,000 Closing Stock 80,000 Prepaid Legal Charges 1,200 4,55,200 4,55,200 Working Notes: i. Calculation of amount of R.D.D. to be provided on Debtors = 5% of of Debtors = 5 82,000 = 4, ii. Calculation of Interest on Capital: a. Seeta s Capital = 1,20,000 12 12 8 = 9,600 9
Std. XII : Commerce b. Geeta s Capital = 1,20,000 12 12 8 = 9,600 iii. Calculation of amount of Interest on 8% Debentures (for 6 months) = 40,000 6 12 8 = 1,600 *Sol. Q.7.: 10 Trading Account for the year ended 31 st Mar, 2012 To Opening Stock 90,000 By Sales 8,10,000 To Purchases 6,50,000 By Closing Stock 1,10,000 To Carriage 7,000 To Wages 35,000 To Gross Profit c/d 1,38,000 9,20,000 9,20,000 Profit and Loss Account for the year ended 31 st Mar, 2012 To Reserve for Bad & Doubtful Debts By Gross Profit b/d 1,38,000 Old Bad Debts 3,000 Add: New Bad Debts Add: New R.D.D. 7,500 Less: Old R.D.D. 10,500 To Salaries 28,000 Less: Prepaid Salaries 2,500 25,500 To Postage & Telegram 4,000 To Rent 4,000 To Discount 3,200 To Depreciation Plant and Machinery 12,000 Building 20,000 32,000 To Insurance 5,000 Less: Prepaid Insurance 1,500 3,500 To Interest on Capital Madhuri 15,000 Minakshi 10,000 25,000 To Interest on Bank Loan 4,000 Madhuri 15,780 Minakshi 10,520 26,300 1,38,000 1,38,000 Partners Capital Account Madhuri Minakshi Madhuri Minakshi To Drawings A/c 10,000 5,000 By Balance b/d 3,00,000 2,00,000 By Interest on Capital A/c 15,000 10,000 To Balance c/d 3,20,780 2,15,520 By Profit & Loss A/c 15,780 10,520 3,30,780 2,20,520 3,30,780 2,20,520