Q. 1 On 1st January 2022, Black and White joined together as co-ventures for equal share in profits through sale of Heaters. Black purchased 2,000 Heaters at Rs. 250 each
for cash and sent 1,500 of these to White for sale, the selling price of each being Rs. 300. All the Heaters were sold by both and the proceeds collected. (20)Each venture recorded in his books only
those transactions concluded by him, final profit/loss being ascertained
through a Memorandum Joint Venture Account.
|
Black |
Freight and Insurance |
Rs.
9,000 |
|
Selling Expenses |
4,500 |
|
|
White |
Coolie and Clearing charges |
900 |
|
Selling Expenses |
13,500 |
Required:
Joint Venture A/c with White in the books
of Black.
oint Venture A/c with Black in the books
of White and
Memorandum Joint Venture A/c.
Solution:
Joint Venture A/c with White in the books
of Black
Particulars Debit Credit
To Cash 2,00,000
To Joint Venture A/c 1,50,000
Joint Venture A/c
Particulars Debit Credit
By Goods sent 1,50,000
Joint Venture A/c with Black in the books
of White
Particulars Debit Credit
By Cash 1,80,000
By Joint Venture A/c 1,50,000
Memorandum Joint Venture A/c
Particulars Debit Credit
To Black 3,00,000
To White 3,00,000
By Profit 30,000
By Goods sent by Black 1,50,000
By Goods sent by White 1,50,000
By Black's selling Expenses 4,500
By White's selling Expenses 13,500
By Black's Freight & Insurance 9,000
By White's Coolie & Clearing charges 900
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Q. 2 Punjab
Cycle Co. of Ludhiana consigned 100 tricycles to Kanpur Cycle Co. of Kanpur
costing Rs 1,500 each, invoiced at Rs 2,000 each. The consignor paid freight Rs
10,000 and insurance in transit Rs 1,500. During transit, 10 tricycles were
totally damaged.
Kanpur Cycle Co. took delivery of
remaining tricycles and paid Rs 1,530 for octroi duty. Kanpur Cycle Co. sent a
bank draft to Punjab Cycle Co. for Rs 50,000 as advance and later on sent an
account sale showing that 80 tricycles had been sold @ Rs 2,200 each. Expenses
incurred by Kanpur Cycle Co. on godown rent were Rs 2,000. Kanpur Cycle Co. is
entitled to a commission of 5% on invoice price and 25% on any surplus of sale
price over invoice price. Insurance claim was settled at Rs 14,000.
Prepare consignment account, consignee’s
account and accidental loss account in the books of the consignor. (20)
Solution:
Consignment Account
Debit
Tricycles
100
15,000
Freight
10,000
Insurance 1,500
Octroi
Duty 1,530
Accidental
Loss 1,500
Bank
Draft Received 50,000
Insurance
Claim Received 14,000
Commission 1,250
Credit
Kanpur
Cycle Co. 77,280
Consignee’s Account
Debit
Kanpur
Cycle Co. 77,280
Credit
Tricycles
90
18,000
Freight 10,000
Insurance 1,500
Octroi
Duty 1,530
Bank
Draft 50,000
Godown
Rent 2,000
Commission 2,750
Kanpur
Cycle Co. 77,280
Accidental Loss Account
Debit
Accidental
Loss 1,500
Credit
Insurance
Claim Received 14,000
Accidental
Loss 1,500
Q. 3 Record
the Journal entries for the following transactions in the books of Decent
Company Ltd : (20)
a)
Issued 3,000 share of 10% preference shares of Rs. 100 each at par in cash.
b)
Issued 10,000 ordinary shares of Rs. 100 each at Rs. 110 each in cash.
c)
Issued 2,000 10% preference shares of Rs.100 each at Rs. 95 each in
cash.
d)
Acquired Equipment costing Rs. 210,000 against 2,000 10% preference
shares of Rs. 100 each
e)
Issued 2,000 common shares of Rs. 100 each to promoters in recognition
of their services.
Solution:
a) Preference Share Capital A/c Dr. 30,000
To
Cash A/c 30,000
b) Cash A/c Dr.
1,10,000
Share
Capital A/c 1,10,000
c) Preference Share Capital A/c Dr. 1,90,000
To
Cash A/c 1,90,000
d) Equipment A/c Dr.
2,10,000
To
Preference Share Capital A/c 2,10,000
e) Share Capital A/c Dr.
2,00,000
To
Promoters A/c 2,00,000
Q. 4 A
company carries on business through five departments, A, B, C, D, and E. the
trial balance as at 31st December, 2022 was as follows:
|
|
A |
B |
C |
D |
E |
|
Opening Stock |
Rs. 5,000 |
Rs. 3,000 |
Rs. 2,500 |
Rs. 4,000 |
Rs. 4,500 |
|
Purchases |
50,000 |
30,000 |
10,000 |
26,000 |
34,000 |
|
Sales |
48,000 |
21,000 |
9,500 |
23,000 |
30,000 |
|
Closing Stock |
6,000 |
4,000 |
3,500 |
5,000 |
5,500 |
The opening and closing stocks have been
valued at cost. The expenses, which are to be charged to each department in
proportion to the cost of goods sold in the respective departments, are as
follows:
Salaries and Commission Rs.
6,000
Rent and rates 1,500
Miscellaneous expense 1,200
Insurance 800
Required: Show the final result and
percentage on sales in each department and also the combined result with
percentage to sales. (20)
Solution:
Department A B C D E Total
Opening Stock 5,000 3,000 2,500 4,000 4,500 19,000
Purchases 50,000 30,000 10,000 26,000 34,000 150,000
Sales 48,000 21,000 9,500 23,000 30,000 131,500
Closing Stock 6,000 4,000 3,500 5,000 5,500 23,000
Gross Profit 1,000 9,000 500 (2,000) 4,500 13,000
Expenses 1,440 1,440 1,440 1,440 1,440 7,200
Net Profit (440) 7,560 (940) (3,440) 3,060 5,800
% on Sales -9.3% 35.8% -9.9% -15.0% 10.2% 4.4%
Combined Result:
Gross Profit 13,000
Expenses 7,200
Net Profit 5,800
% on Sales 4.4%
Q. 5
The Fortune Corporation was formed with an authorized capital as
follows:
20,000, 10% preference shares of Rs. 100
each
100,000 ordinary shares of Rs. 100 each
5000 deferred shares of Rs. 10 each.
Required: Pass the necessary journal
entries to record the following transactions:
Issued 3000 10% preference shares at par
and cash received.
Issued 10,000 ordinary shares of Rs. 100
each at Rs. 110. All amounts received in cash.
Acquired Equipment costing Rs. 210,000
and issued 2000 10% preference shares of Rs. 100 each.
Land valued Rs. 225,000 acquired and
2500, 10% preference shares were issued against its consideration.
Issued 2000 deferred shares of Rs. 10
each to promoters in recognition of services rendered by them. (20)
Solution:
Journal Entries:
1. Preference share Capital A/c Dr. 3,000
To Bank A/c Cr. 3,000
(Being 3,000 preference shares of Rs. 100
each issued at par and cash received)
2. Ordinary share Capital A/c Dr. 11,00,000
To Bank A/c Cr. 11,00,000
(Being 10,000 ordinary shares of Rs. 100
each issued at Rs. 110 and cash received)
3. Preference share Capital A/c Dr. 2,00,000
To Equipment A/c Cr. 2,10,000
(Being 2,000 preference shares of Rs. 100
each issued in exchange of Equipment costing Rs. 210,000)
4. Preference share Capital A/c Dr. 2,50,000
To Land A/c Cr. 2,25,000
(Being 2,500 preference shares of Rs. 100
each issued in exchange of Land valued Rs. 225,000)
5. Deferred share Capital A/c Dr. 20,000
To Promoters A/c Cr. 20,000
(Being 2000 deferred shares of Rs. 10
each issued in recognition of services rendered by promoters)
Dear Student,
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copy paste h jo dusre student k pass b available h. Agr ap ne university
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0334-6483019
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