Written as per the revised syllabus prescribed by the Maharashtra State Board of Secondary and Higher Secondary Education, Pune.

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. 22956 10310_10540_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) 82 4. Reconstitution of Partnership (Retirement of Partner) 137 5. Reconstitution of Partnership (Death of Partner) 169 6. Dissolution of Partnership Firm 191 7. Accounts of Not for Profit Concerns 248 8. Single Entry System 286 9. Bill of Exchange (Trade Bill) 317 10. Company Accounts Part I (Accounting for Shares) 386 11. Company Accounts Part II (Accounting for Debentures) 419 12. Analysis of Financial Statements 440 Note: All Textual questions are represented by * mark.

02 Partnership Final Accounts Chapter 02: 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 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 Partner s 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 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 *Sol. Q.2.: 1,41,830 1,41,830 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 To Rent 10,000 To Interest on Capital Sanjay 2,000 Sudhir 1,500 3,500

Chapter 02: Partnership Final Accounts Sanjay 6,000 Sudhir 4,000 10,000 46,000 46,000 Partner s Capital Account Sanjay 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 48,000 35,500 48,000 35,500 Balance Sheet as on 31 st Mar, 2010 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 *Sol. Q.3.: 1,28,000 1,28,000 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 3

Std. XII : Commerce 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 4 4 88,750 88,750 Partner s 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 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 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 2,26,250 2,26,250

*Sol. Q.4.: Trading Account for the year ended 31 st Mar, 2012 Chapter 02: Partnership Final Accounts 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 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 1,67,720 1,67,720 Partner s 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 5

Std. XII : Commerce 6 6 Balance Sheet as on 31 st Mar, 2012 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 Debt 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 *Sol. Q.5.: 3,35,566 3,35,566 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

Chapter 02: Partnership Final Accounts Kale 58,300 Gore 29,150 87,450 1,40,200 1,40,200 Partner s 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 Balance Sheet as on 31 st Mar, 2013 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 *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 1,14,100 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 1,14,100 Doubtful Debts By Interest on Investments Old Bad Debts 4,000 (Accrued) 1,600 7

Std. XII : Commerce Add: New Bad Debts Add: New R.D.D. 4,100 Less: Old R.D.D. 8,100 To Depreciation Land and Building 6,500 Machinery 9,000 15,500 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 8 8 1,15,700 1,15,700 Partner s 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 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%) 4,100 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

*Sol. Q.7.: Trading Account for the year ended 31 st Mar, 2012 Chapter 02: Partnership Final Accounts 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 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 By Gross Profit b/d 1,38,000 1,38,000 1,38,000 Partner s 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 9

Std. XII : Commerce Balance Sheet as on 31 st Mar, 2012 Capital Building 4,00,000 Madhuri 3,20,780 Less: Depreciation (5%) 20,000 3,80,000 Minakshi 2,15,520 5,36,300 Plant and Machinery 1,20,000 Sundry Creditors 1,00,000 Less: Depreciation (10%) 12,000 1,08,000 Outstanding Salaries 4,200 Sundry Debtors 1,50,000 8% Bank Loan 1,00,000 Less: R.D.D. (5%) 7,500 1,42,500 Add: Interest Payable 4,000 1,04,000 Prepaid Expenses: Salaries 2,500 Insurance 1,500 4,000 Closing Stock 1,10,000 7,44,500 7,44,500 *Sol. Q.8.: 10 Trading Account for the year ended 31 st Mar, 2013 To Opening Stock 83,000 By Sales 4,20,000 To Purchases 1,97,000 By Goods withdrawn for To Carriage 7,000 Personal Use To Wages 7,500 Mahesh 2,000 To Motive Power 15,000 Umesh 1,500 3,500 By Closing Stock 76,000 To Gross Profit c/d 1,90,000 4,99,500 4,99,500 Profit and Loss Account for the year ended 31 st Mar, 2013 To Reserve for Bad & Doubtful Debts By Gross Profit b/d 1,90,000 Old Bad Debt 6,400 Add: New Bad Debt 2,500 Add: New R.D.D. Less: Old R.D.D. 8,900 To Depreciation Building 10,500 Motor Van 7,040 17,540 To Salary 13,000 To Audit Fees 8,500 To Printing and Stationery 4,000 To Interest on Capital Mahesh 8,100 Umesh 5,400 13,500 To Mahesh s Salary 6,500 To Umesh s Commission 8,400 Mahesh 65,796 Umesh 43,864 1,09,660 1,90,000 1,90,000

Chapter 02: Partnership Final Accounts Partner s Current Account Mahesh Umesh Mahesh Umesh To Drawings A/c (Goods) 2,000 1,500 By Balance b/d 16,200 10,800 By Interest on Capital A/c 8,100 5,400 By Salary A/c 6,500 By Commission A/c 8,400 To Balance c/d 94,596 66,964 By Profit and Loss A/c 65,796 43,864 96,596 68,464 96,596 68,464 Balance Sheet as on 31 st Mar, 2013 Capital A/c s: Building 1,50,000 Mahesh 1,62,000 Less: Depreciation (7%) 10,500 1,39,500 Umesh 1,08,000 2,70,000 Debtors 96,000 Current A/c s: Less: Bad Debts 2,500 93,500 Mahesh 94,596 Machinery 72,000 Umesh 66,964 1,61,560 Motor Van 88,000 Sundry Creditors 99,000 Less: Depreciation (8%) 7,040 80,960 Bank Overdraft 56,400 Cash at Bank 52,000 Investments 56,000 Loose Tools 17,000 Closing Stock 76,000 *Sol. Q.9.: 5,86,960 5,86,960 Trading Account for the year ended 31 st Mar, 2010 To Opening Stock 25,000 By Sales 4,30,000 To Purchases 2,20,000 By Goods withdrawn for Add: Unrecorded Purchases 3,000 2,23,000 Personal Use by Mohini 2,000 To Wages and Salaries 23,000 By Closing Stock 80,000 Add: Outstanding 2,500 25,500 To Manufacturing Expenses 9,000 To Factory Insurance 5,000 To Import Duty 11,500 To Gross Profit c/d 2,13,000 5,12,000 5,12,000 Profit and Loss Account for the year ended 31 st Mar, 2010 To Reserve for Bad & By Gross Profit b/d 2,13,000 Doubtful Debts By Discount 3,500 Old Bad Debts By Interest on Government Add: New Bad Debts bonds 4,500 Add: New R.D.D. 2,250 Less: Old R.D.D. 2,250 11

Std. XII : Commerce To Discount 4,000 To Depreciation on Plant and Machinery 7,500 To Advertisement 10,000 Less: Prepaid Advertisement 8,750 1,250 To Salaries and Wages 45,000 To Warehouse Rent 6,000 Mohini 77,500 Rohini 77,500 1,55,000 12 2,21,000 2,21,000 Partner s Capital Account Mohini Rohini Mohini Rohini To Drawings A/c 2,000 By Balance b/d 1,20,000 90,000 By Profit and Loss A/c 77,500 77,500 To Balance c/d 1,95,500 1,67,500 1,97,500 1,67,500 1,97,500 1,67,500 Balance Sheet as on 31 st Mar, 2010 Capital Sundry Debtors 45,000 Mohini 1,95,500 Less: R.D.D. 2,250 42,750 Rohini 1,67,500 3,63,000 Bills Receivable 50,000 Sundry Creditors 35,000 Factory Building 1,30,000 Add: Unrecorded Purchases 3,000 38,000 Plant and Machinery 75,000 Bills Payable 45,000 Less: Depreciation (10%) 7,500 67,500 Outstanding Wages 2,500 Prepaid Advertisement 8,750 Cash in Hand 5,000 10% Government Bond 60,000 Add: Interest Receivable 4,500 64,500 Closing Stock 80,000 *Sol. Q.10.: 4,48,500 4,48,500 Trading Account for the year ended 31 st Mar, 2013 To Opening Stock 23,500 By Sales 1,10,000 To Purchases 98,500 By Goods Distributed as Free To Wages and Stationery 14,000 Samples 2,500 To Import Duty 2,100 By Closing Stock 30,000 To Gross Profit c/d 4,400 1,42,500 1,42,500

Profit and Loss Account for the year ended 31 st Mar, 2013 Chapter 02: Partnership Final Accounts To Reserve for Bad & By Gross Profit b/d 4,400 Doubtful Debts Old Bad Debts 1,000 Add: New Bad Debts 1,500 Add: New R.D.D. Less: Old R.D.D. 2,500 To Salaries and Wages 12,000 To Postage and Telegram 1,750 Less: Unused 250 1,500 To Advertisement 5,000 Add: Goods Distributed as Free Samples 2,500 7,500 To Carriage Outward 1,800 To Printing and Stationery 4,600 Less: Unused 400 4,200 To Depreciation Leasehold Premises 4,000 By Net Loss c/d Plant and Machinery (10%) 7,000 11,000 Sanjay 19,550 To Interest on Bank Loan 3,000 Vijay 19,550 39,100 43,500 43,500 Partner s Capital Account Sanjay Vijay Sanjay Vijay To Profit and Loss A/c (Loss) 19,550 19,550 By Balance b/d 45,000 45,000 To Balance c/d 25,450 25,450 45,000 45,000 45,000 45,000 Balance Sheet as on 31 st Mar, 2013 Capital Leasehold Premises 80,000 Sanjay 25,450 Less: Written Off 4,000 76,000 Vijay 25,450 50,900 Plant and Machinery 70,000 Sundry Creditors 72,700 Less: Depreciation (10%) 7,000 63,000 Bills Payable 40,000 Sundry Debtors 45,800 Outstanding Audit Fees 5,900 Less: Bad Debts 1,500 44,300 10% Bank Loan 60,000 Bills Receivable 16,700 Add: Interest Payable 3,000 63,000 Unused Postage Stamps 250 Unused Stationery 400 Cash in Hand 1,850 Closing Stock 30,000 2,32,500 2,32,500 13

Std. XII : Commerce Practice Problems Sol. Q.1.: Trading Account for the year ended 31 st Mar, 2012 To Opening Stock A/c 20,000 By Sales A/c 3,50,000 To Purchases A/c 2,02,000 By Closing Stock A/c 40,000 Less: Return Outwards 2,000 2,00,000 To Wages A/c 10,000 Add: Outstanding Wages 2,000 12,000 14 To Gross Profit c/d 1,58,000 3,90,000 3,90,000 Profit and Loss Account for the year ended 31 st Mar, 2012 To Reserve for Bad & By Gross Profit b/d 1,58,000 Doubtful Debts A/c By Interest on Investment A/c 3,500 Old Bad Debts Add: Accrued Interest 500 4,000 Add: New Bad Debts 1,000 Add: New R.D.D. Less: Old R.D.D. 1,000 To Salaries A/c 5,000 Add: Outstanding Salaries 1,000 6,000 To Insurance A/c 4,000 Less: Prepaid Insurance 500 3,500 To Rent & Taxes A/c 12,000 To Depreciation A/c Building 5,000 Furniture 3,000 8,000 Amit 66,250 Vipul 44,167 Sumit 22,083 1,32,500 1,62,000 1,62,000 Partner s Capital Account Amit Vipul Sumit Amit Vipul Sumit By Balance b/d 1,00,000 80,000 50,000 By Profit & Loss To Balance c/d 1,66,250 1,24,167 72,083 A/c 66,250 44,167 22,083 1,66,250 1,24,167 72,083 1,66,250 1,24,167 72,083

Balance Sheet as on 31 st Mar, 2012 Chapter 02: Partnership Final Accounts Capital Debtors 80,000 Amit 1,66,250 Less: New Bad Debts Vipul 1,24,167 Written Off 1,000 79,000 Sumit 72,083 3,62,500 Furniture 30,000 Creditors 8,000 Less: Depreciation 10% 3,000 27,000 Bills Payable 4,000 Building 1,00,000 Outstanding Rent 2,000 Less: Depreciation 5% 5,000 95,000 Outstanding Expenses Prepaid Insurance 500 Wages 2,000 Investment 50,000 Salaries 1,000 3,000 Add: Accrued Interest 500 50,500 Cash in Hand 17,500 Bills Receivable 30,000 Patent 40,000 Closing Stock 40,000 3,79,500 3,79,500 Working Notes: Calculation of amount of depreciation: i. Building = 1,00,000 12 12 5 12 = 5,000 ii. Furniture = 30,000 100 12 10 100 = 3,000 Sol. Q.2.: Trading Account for the year ended 31 st Mar, 2013 To Opening Stock A/c 1,80,000 By Sales A/c 5,25,000 To Purchases A/c 2,40,000 By Closing Stock A/c 2,00,000 To Carriage Inward A/c 12,000 To Gross Profit c/d 2,93,000 7,25,000 7,25,000 Profit and Loss Account for the year ended 31 st Mar, 2013 To Reserve for Bad & By Gross Profit b/d 2,93,000 Doubtful Debts A/c By Rent A/c 22,000 Old Bad Debts Less: Advance Rent 5,000 17,000 Add: New Bad Debts 20,000 Add: New R.D.D. Less: Old R.D.D. 20,000 To Salary and Wages A/c 24,000 Add: Outstanding Salary and Wages 6,000 30,000 To Insurance A/c 12,000 Less: Prepaid Insurance 3,000 9,000 To Discount A/c 9,000 To Travelling Expenses A/c 13,000 To Postage and Telegrams A/c 7,000 15

Std. XII : Commerce 16 To Depreciation A/c Furniture 28,000 Sanjay 97,000 Keshav 97,000 1,94,000 Sanjay 3,10,000 3,10,000 Partner s Capital Account Keshav To Balance c/d 5,97,000 3,97,000 Sanjay Keshav By Balance b/d 5,00,000 3,00,000 By Profit & Loss A/c 97,000 97,000 5,97,000 3,97,000 5,97,000 3,97,000 Balance Sheet as on 31 st Mar, 2013 Capital Debtors 2,10,000 Sanjay 5,97,000 Furniture 2,80,000 Keshav 3,97,000 9,94,000 Less: Depreciation 10% 28,000 2,52,000 Sundry Creditors 1,00,000 Land and Building 4,00,000 Bills Payable 78,000 Prepaid Insurance 3,000 Outstanding Expenses Cash in Hand 38,000 Salary and Wages 6,000 Bills Receivable 80,000 Advance Rent 5,000 Closing Stock 2,00,000 Sol. Q.3.: 11,83,000 11,83,000 Trading Account for the year ended 31 st Mar, 2012 To Opening Stock 25,000 By Sales 1,42,600 To Purchases 90,000 By Goods Taken Over 3,000 To Wages 24,000 By Closing Stock 18,500 To Factory Expenses 8,000 To Gross Profit c/d 17,100 1,64,100 1,64,100 Profit and Loss Account for the year ended 31 st Mar, 2012 To Reserve for Bad & By Gross Profit b/d 17,100 Doubtful Debts Old Bad Debts 700 Add: New Bad Debts 1,000 Add: New R.D.D. 2,200 Less: Old R.D.D. 1,000 2,900

To Carriage Outward 1,700 To Advertisements 3,500 To Insurance 400 Less: Prepaid 100 300 To Depreciation Land and Building 3,000 Furniture 600 3,600 To Office Expenses 2,300 Suresh 1,600 Ramesh 1,200 2,800 Chapter 02: Partnership Final Accounts 17,100 17,100 Partner s Current Account Suresh Ramesh Suresh Ramesh To Drawings A/c 3,000 By Balance b/d 20,000 25,000 (Goods withdrawn) By Profit & Loss A/c 1,600 1,200 To Balance c/d 18,600 26,200 21,600 26,200 21,600 26,200 Balance Sheet as on 31 st Mar, 2012 Capitals Land and Building 30,000 Suresh 18,600 Less: Depreciation (10%) 3,000 27,000 Ramesh 26,200 44,800 Furniture 3,000 Sundry Creditors 49,000 Less: Depreciation (20%) 600 2,400 Unpaid Wages 1,000 Debtors 45,000 Less:Bad Debts 1,000 44,000 Less:R.D.D. (5%) 2,200 41,800 Closing Stock 18,500 Prepaid Insurance 100 Cash at Bank 5,000 94,800 94,800 Working Note: Calculation of amount of Prepaid Insurance: of Insurance given in Trial Balance = 400 Insurance paid upto 30 th Jun, 2012; Insurance chargeable to P&L upto 31 st Mar, 2012 Period of Prepaid Insurance = 3 months Prepaid Insurance = 400 3 12 = 100 Sol. Q.4.: Dr Trading Account for the year ended 31 st Mar, 2012 Cr To Opening Stock 2,00,000 By Sales 4,00,000 To Purchases 2,75,000 Less: Sales Return 5,000 3,95,000 Less: Purchase Return 4,500 2,70,500 By Drawing of goods Chavan 2,000 17

Std. XII : Commerce Sol. Q.24.: Net Profit = 2,80,000; Net Sales = 5,00,000 Net Profit Ratio = Net Profit 100 Net Sales = 2,80,000 100 5,00,000 = 56% Sol. Q.25.: Fixed = 5,00,000; Balance Sheet Total = 10,00,000 Percentage of Fixed to Total = Fixed 100 Total = 5,00,000 100 10,00,000 = 50% Sol. Q.26.: Total Sales = 1,00,000; Sales Returns = 10,000; Cost of Goods Sold = 50,000 Net Sales = Total Sales Sales Returns = 1,00,000 10,000 = 90,000 Gross Profit = Net Sales Cost of Goods Sold = 90,000 50,000 = 40,000 Gross Profit Ratio = Gross Profit 100 = 40,000 100 Net Sales 90,000 = 44.44% Sol. Q.27.: Current = 6,00,000; Current = 3,00,000 Current Current Ratio = Current = 6,00,000 6 2 3,00,000 3 1 Current Ratio = 2 : 1 Sol. Q.28.: Net Profit = 1,00,000; Total Sales = 1,80,000; Sales Returns = 30,000 Net Sales = Total Sales Sales Returns = 1,80,000 30,000 = 1,50,000 Net Profit Ratio = Net Profit 100 Net Sales = 1,00,000 100 = 66.67% 1,50,000 Sol. Q.29.: Net Profit before Interest, Tax and Dividend = 4,00,000; Total Capital Invested = 10,00,000 Return on Investments (ROI) = Profit before Interest, Tax and Dividend Capital Employed 100 = 4,00,000 10,00,000 100 = 40% 446