SHARMA INSTITUTE OF STUDY

Q1. The following blance are obtained from the books of Kanpur Cricket Club 31.03.2006 80,000 40,000 1,500 3,000 800 3,000 24,000 15,000 16,000 31.03.2007 85,500 30,600 1,000 5,000 1,000 1,200 21,600 12,000 16,200 17,100

Items Building Furniture Advance subscription Arrears of subscription Prepaid expenses Outstanding expenses Sports equipment Investments Books Cash

Consider the following information relevant to the year 2006-07: (i) Depreciation provided for the year: Buildings Rs. 4,500; Furniture Rs. 3,400; Sports equipment Rs. 5,400; Books Rs. 1,800. (ii) Some old furniture standing in the books for Rs. 6,000 on 1st April, 2006 was sold for Rs. 4,000 on the same date. (iii) The club had 10 members on 31st March, 2006 as per the Register of Members. No fresh members were admitted during the year but 10 members left the club on 1st October, 2006. (iv) Subscription payable Rs. 15 per month. (v) Donation received Rs. 5,000 has been capitalized. (vi) Considerable expenses were paid during the year. Required: Show the Receipts and Payments Account. the Income and Expenditure Account for the year ended 31st March, 2007 and Balance Sheet as at 31st March, 2007 Q2: From the following Trial Balance of Shri Ganesh prepare Trading and profit & Loss A/c for the year ending 31st Dec., 2007 and Balance Sheet as on that date after taking into consideration the adjustments given at the end of the Trial Balance: Trial Balance as on 31.12.2007 Dr. Cr. Sales 7,40,000 Purchase (adjusted) 6,99,200 Wages 900 Capital A/c 48,500 National Insurance 300 Carriage in 400 Carriage out 500 Lighting 600 Rates and Insurance (including premium of Rs. 300 p.a. 400 paid upto 30th June, 2008) Stock at 31.12.07 61,250 Cash in hand and at bank 1,750 Discount earned 600 Buildings 30,000 Discount allowed 100 Debtors and Creditors 6,000 20,000 Furniture 8,000 Dividends received 300 8,09,400 8,09,400

Adjustments: (i) National Insurance balance also includes employees contribution Rs. 150. Wages are shown net after deducting national Insurance contribution borne by the employees. (ii) (iii) Owing to the nature of employment. Some employees are housed in the building of the business. The rental value of such portion is assessed at Rs. 500. P.a. Sales as shown in the trial balance include the sale of old furniture (effected half way through the year) realizing Rs.200. The book value of the furniture at the commencement of the period was Rs. 300. The depreciation has been written off at 20% P.a. The manager is to get a commission of 1/5th on the net profit after charging his commission but before considering income from dividend. Depreciate Building by 5%

(iv) (v) Q3

Show what amount will appear in Income & Expenditure A/C for the year ending 31-3-2008 and Balance Sheet as at that date in each of the following cases: Case(i)- Prize Fund as at 31.03.2007 Rs. 12,000. Donations for prizes received during the year 2007-08 Rs. 2,800; Prizes awarded Rs. 2,000; 10% prize fund investments as at 31.03.2007 Rs.12,000; Interest received on prize fund investment Rs. 600 Case(ii)- Stock of stationery on 31.03.2007 Rs. 3,000. Creditors of stationery on 31.03.07 Rs. 2,000; advance paid for stationery carried forward from 2006-07 Rs. 200; Amount paid for stationery during the year 2007-08 Rs. 10,800, Stock of stationery on 31.3.08 Rs. 500, creditors for stationery on 31.3.08 Rs. 1,300 and advance paid for stationery on 31.03.08 Rs. 300. Case(iii) Subscription outstanding as on 31.03.07 Rs. 2000, Subscription received in advance on 31.3.07 Rs 3,000 . Amount of subscription received during 2007-08 Rs. 35,000 out of which Rs. 1,500 related to 2006-07 and Rs. 800 related to 2008-09 . On 31.3.08 subscription outstanding for 2007-08 amounted to Rs. 1,300. Q4 A company started its business on 1st January, 2008. It purchased and used raw material during the year 2008 as stated below: January 10 800 kgs@Rs.62 Per kg. February 28 1200 kgs@Rs.57 Per kg. March 10 Issued 1,000 kgs. March 26 Issued 500 kgs. May 20 900 kgs@Rs.65 Per kg. June 28 Issued 600 kgs.

Calculate the value of closing stock of raw materials on June 30 according to (i) Last in First Out basis, and (ii) Weighted average basis, using perpetual inventory system .