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ACCOUNTING- CHAPTER WISE TEST SERIES

ACCOUNTS FROM INCOMPLETE RECORDS
Dura on: 1.5 Hours Total Marks: 50 Marks
Note: Students must a end all the Ques ons
1. Following are the Manufacturing A/c, Creditors A/c and Raw Material A/c provided by M/s.
Praveen related to financial year 2023-24. There are certain figures missing in these accounts.

Raw Material A/c

Par culars ₹ Par culars ₹
To Opening Stock A/c 1,27,000 By Raw Materials Consumed ?
To Creditors A/c ? By Closing Stock ?

Creditors A/c
Par culars ₹ Par culars ₹
To Bank A/c 23,50,000 By Balance b/d 15,70,000

To Balance c/d 6,60,000 ?

Manufacturing A/c
Par culars ₹ Par culars ₹
To Raw Material A/c - By Trading A/c 17,44,000
To Wages 3,65,000
To Deprecia on 2,15,000
To Direct Expenses 2,49,000
Addi onal Informa on:
(i) Purchase of machinery worth ₹ 12,00,000 on 1st April; 2023 has been omi ed,
Machinery is chargeable at a deprecia on rate of 15%.
(ii) Wages include the following:
Paid to factory workers = ₹ 3,15,000
Paid to labour at office = ₹ 50,000
(iii) Direct expenses included the following :
Electricity charges of which 25% pertained to office = ₹ 80,000
Fuel charges = ₹ 25,000
Freight inwards = ₹ 32,000
Delivery charges to customers = ₹ 22,000

You are required to prepare revised Manufacturing A/c and Raw Material A/c. (10 Marks)
2. The following informa on relates to the business of ABC Enterprises, who requests you to
prepare a Trading and Profit & Loss A/c for the year ended 31st March, 2022 and a Balance
Sheet as on that date.

(a) Assets and Liabili es as on: (in ₹)

1.4.2021 31.3.2022
Furniture 60,000 63,500
Stock 80,000 70,000
Sundry Debtors 1,60,000 ?
Sundry Creditors 1,10,000 1,50,000
Prepaid Expenses 6,000 7,000
Outstanding Expenses 20,000 18,000
Cash in Hand & Bank Balance 12,000 26,250

(b) Cash transac on during the year:

(i) Collec on from Debtors, a er allowing discount of ₹ 15,000 amounted to ₹ 5,85,000.
(ii) Collec on on discoun ng of Bills of Exchange, a er deduc on of discount of ₹ 1,250 by
bank, totalled to ₹ 61,250.
(iii) Creditors of ₹ 4,00,000 were paid ₹ 3,92,000 in full se lement of their dues.
(iv) Payment of Freight inward of ₹ 30,000.
(v) Amount withdrawn for personal use ₹ 70,000.
(vi) Payment for office furniture ₹ 10,000.
(vii) Investment carrying annual interest of 6% were purchased at ₹ 95 (200 shares, face
Value ₹ 100 each) on 1st October 2021 and payment made thereof.
(viii) Expenses including salaries paid ₹ 95,000.
(ix) Miscellaneous receipt of ₹ 5,000.

(c) Bills of exchange drawn on and accepted by customers during the year amounted to ₹
1,00,000. Of these, bills of exchange of ₹ 20,000 were endorsed in favour of creditors. An
endorsed bill of exchange of ₹ 4,000 was dishonoured.

(d) Goods cos ng ₹ 9,000 were used as adver sing material.

(e) Goods are invariably sold to show a gross profit of 20% on sales.

(f) Difference in cash book, if any, is to be treated as further drawing or introduc on of capital
by proprietor of ABC enterprises.

(g) Provide at 2% for doub ul debts on closing debtors. (10 Marks)

3. Aman, a readymade garment trader, keeps his books of account under single entry system.
On the closing date, i.e. on 31st March, 2017 his statement of affairs stood as follows:

Liabilities Amount Rs. Assets Amount Rs.

Aman's capital 4,80,000 Building 3,25,000

Loan 1,50,000 Furniture 50,000

Creditors 3,10,000 Motor car 90,000

Stock 2,00,000

Debtors 1,70,000

Cash in hand 20,000

Cash at bank 85,000

9,40,000 9,40,000

Riots occurred and a fire broke out on the evening of 31st March, 2018, destroying the
books of accounts. On that day, the cashier had absconded with the available cash. You are
furnished with the following information:

 Sales for the year ended 31st March, 2018 were 20% higher than the previous year's
sales, out of which, 20% sales were for cash. He always sells his goods at cost plus 25%.
There were no cash purchases.
 Collec on from debtors amounted to Rs.14,00,000, out of which Rs.3,50,000 was
received in cash.
 Business expenses amounted to Rs.2,00,000, of which Rs.50,000 were outstanding on
31st March, 2018 and Rs.60,000 paid by cheques.
 Gross profit as per last year's audited accounts was Rs.3,00,000.
 Provide deprecia on on building and furniture at 5% each and motor car at 20%.
 His private records and the Bank Pass Book disclosed the following transac ons for
the year 2017-18:

Particulars Rs.

Payment to creditors (paid by cheques) 13,75,000

Personal drawings (paid by cheques) 75,000

Repairs (paid by cash) 10,000

Travelling expenses (paid by cash) 15,000

 Cash deposited in bank 7,15,000

Cash withdrawn from bank 1,20,000

Stock level was maintained at Rs.3,00,000 all throughout the year. The amount defalcated by
the cashier is to be wri en off to the Profit and Loss Account.

You are required to prepare Trading and Profit and Loss A/c for the year ended 31st March,
2018 and Balance Sheet as on that date of Aman. All the workings should form part of the
answer. (10 Marks)

4. Mr. Prakash furnishes following informa on for his readymade garments business:

(i) Receipts and Payments during 2019-20:

Receipts Amount Payments Amount

Rs. Rs.
Bank Balance as on Payment to Sundry
1-4-2019 16,250 Creditors 3,43,000
Received from Sundry Salaries 75,000
Debtors 4,81,000
General Expenses 22,500
Cash sales 1,70,800 Rent and Taxes 11,800
Capital brought in the Drawings 96,000
Business during the year 50,000
Cash Purchases 1,22,750
Interest on Investment Balance at Bank on
Received 9,750 31-03-2020 36,600
Cash in hand on
31-03-2020 20,150
7,27,800 7,27,800

(ii) Par culars of other Assets and Liabili es are as follows:

1st April, 2019 31st March, 2020

(Rs.) (Rs.)
Machinery 85,000 85,000
Furniture 24,500 24,500
Trade Debtors 1,55,000 ?
Trade Creditors 60,200 ?
 Stock 38,600 55,700
12% Investment 85,000 85,000
Outstanding Salaries 12,000 14,000

(iii) Addi onal informa on:

 20% of Total sales and 20% of total purchases are in cash.

 Of the Debtors, a sum of Rs.7,200 should be wri en off as Bad debt and further a
provision for doub ul debts is to be provided @2%.
 Provide deprecia on @10% p.a. on Machinery and Furniture.

You are required to prepare Trading and Profit & Loss account for the year ended 31st March,
2020, and Balance Sheet as on that date. (10 Marks)

5. Mr. Arun runs a business of readymade garments. He closes the books of accounts on 31st
March. The Balance Sheet as on 31st March, 2020 was as follows:

Liabilities Rs. Assets Rs.

Capital A/c 5,05,000 Furniture 50,000
Creditors 1,02,500 Closing Stock 3,50,000
Debtors 1,25,000
Cash in Hand 35,000
Cash at Bank 47,500
6,07,500 6,07,500

You are furnished with following informa on:

 His sales, for the year ended 31st March, 2021 were 20% higher than the sales of
previous year, out of which 20% sales was cash sales.
 Total Sales during the year 2019-20 were Rs.6,25,000
 Payments for all the purchases were made by cheques only.
 Goods were sold for cash and credit both. Credit customers pay by cheques only.
 Depreca on on furniture is to be charged 10% p.a.
 Mr. Arun sent to the bank the collec on of the month at the last date of each month
a er paying salary of Rs.2,500 to the clerk, office expenses Rs.1,500 and personal
expenses Rs.625.
Analysis of bank pass book for the year ending 31st March, 2021 disclosed the following:
Rs.
Payment to creditors 3,75,000
Payment to rent up to 31st March, 2021 20,000
Cash deposited into bank during the year 1,00,000

The following are the balances on 31st March, 2021:

Rs.
Stock 2,00,000
Debtors 1,50,000
Creditors for goods 1,82,500
On the evening of 31st March, 2021, the cashier absconded with the available cash in the cash
book. You are required to prepare Trading and Profit and Loss A/c for the year ended 31st
March, 2021 and Balance Sheet as on that date. All the working should form part of the answer.
(10 Marks)