Showing posts with label Journal Entries. Show all posts
Showing posts with label Journal Entries. Show all posts

HSC Accounts Board Paper Solution: Issue of Debentures (Joshi-Patil Ltd)

Final Accounts: March 2015 Board Solution

Question 7

From the following Trial Balance of M/s Sanjay and Keshav, you are required to prepare Trading and Profit and Loss account, for the year ended 31st March 2013 and Balance Sheet as on that date after taking into account the following additional information :

Trial Balance as on 31st March, 2013

Debit Balances Amount (₹) Credit Balances Amount (₹)
Opening stock 1,80,000 Sales 5,25,000
Bills receivable 80,000 Rent 22,000
Purchases 2,40,000 Bills payable 78,000
Bad debts 20,000 Sundry creditors 1,00,000
Salary and wages 24,000 Capital account
Discount 9,000     Sanjay 5,00,000
Carriage inward 12,000     Keshav 3,00,000
Travelling expenses 13,000
Cash in hand 38,000
Furniture 2,80,000
Insurance 12,000
Land and building 4,00,000
Postage and telegram 7,000
Sundry debtors 2,10,000
Total 15,25,000 Total 15,25,000

Additional information:

  • (1) Insurance paid in advance ₹ 3,000.
  • (2) Depreciation provided on furniture at 10%.
  • (3) Salary and wages outstanding ₹ 6,000.
  • (4) Rent received in advance ₹ 5,000.
  • (5) Closing stock as on 31.03.2013 ₹ 2,00,000.

Solution

In the books of M/s Sanjay and Keshav

Trading and Profit & Loss Account for the year ended 31st March, 2013

Dr. Particulars Amount (₹) Amount (₹) Particulars Amount (₹) Cr. Amount (₹)
To Opening Stock 1,80,000 By Sales 5,25,000
To Purchases 2,40,000 By Closing Stock 2,00,000
To Carriage Inward 12,000
To Gross Profit c/d 2,93,000
Total 7,25,000 Total 7,25,000
To Bad Debts 20,000 By Gross Profit b/d 2,93,000
To Salary and Wages 24,000 By Rent 22,000
(+) Outstanding 6,000 30,000 (-) Received in Advance 5,000 17,000
To Discount 9,000
To Travelling Expenses 13,000
To Insurance 12,000
(-) Prepaid 3,000 9,000
To Postage and Telegram 7,000
To Depreciation on Furniture 28,000
To Net Profit (Transferred to Capital A/c)
    Sanjay (1/2) 97,000
    Keshav (1/2) 97,000 1,94,000
Total 3,10,000 Total 3,10,000

Balance Sheet as on 31st March, 2013

Liabilities Amount (₹) Amount (₹) Assets Amount (₹) Amount (₹)
Capital Accounts: Land and Building 4,00,000
Sanjay 5,00,000 Furniture 2,80,000
(+) Net Profit 97,000 5,97,000 (-) Depreciation (10%) 28,000 2,52,000
Keshav 3,00,000 Sundry Debtors 2,10,000
(+) Net Profit 97,000 3,97,000 Bills Receivable 80,000
Sundry Creditors 1,00,000 Closing Stock 2,00,000
Bills Payable 78,000 Cash in Hand 38,000
Outstanding Salary & Wages 6,000 Prepaid Insurance 3,000
Rent Received in Advance 5,000
Total 11,83,000 Total 11,83,000

Working Notes:

1. Depreciation on Furniture:

$$ \text{Depreciation} = 2,80,000 \times \frac{10}{100} = 28,000 $$

2. Net Profit Distribution:

Since the profit-sharing ratio is not mentioned in the problem, it is assumed to be equal (1:1).

$$ \text{Total Net Profit} = 1,94,000 $$ $$ \text{Sanjay's Share} = 1,94,000 \times \frac{1}{2} = 97,000 $$ $$ \text{Keshav's Share} = 1,94,000 \times \frac{1}{2} = 97,000 $$
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Issue of Equity Shares Solution | March 2018 HSC Board

Issue of Equity Shares Solution: March 2018 HSC Board

Q. 5. Issue of Equity Shares

March 2018 HSC Board Paper Solution

Refer to the question paper images below.

HSC Accounts March 2018 Question Paper - Page 8 (Q5 Dissolution/Issue of Shares) HSC Accounts March 2018 Question Paper - Page 9 (Q6 NPO)

Journal of Aniket Ltd.

In the books of the Company
Swipe table left/right to view amounts →
Date Particulars L.F. Debit (Rs.) Credit (Rs.)
(1)
Bank A/cDr.
To Equity Share Application A/c
[Being application money received on 50,000 shares @ Rs. 20]
 10,00,000
10,00,000
(2)
Equity Share Application A/cDr.
To Equity Share Capital A/c
To Equity Share Allotment A/c
[Being share application money transferred to share capital A/c and excess amount adjusted to allotment money]
 10,00,000
8,00,000
2,00,000
(3)
Equity Share Allotment A/cDr.
To Equity Share Capital A/c
[Being Share allotment money due on 40,000 shares @ Rs. 30]
 12,00,000
12,00,000
(4)
Bank A/cDr.
To Equity Share Allotment A/c
[Being share allotment money received]
 10,00,000
10,00,000
(5)
Equity Share First Call A/cDr.
To Equity Share Capital A/c
[Being share first call amount due on 40,000 shares @ Rs. 30]
 12,00,000
12,00,000
(6)
Bank A/cDr.
To Equity Share First Call A/c
[Being share first call amount received on 39,000 shares]
 11,70,000
11,70,000
(7)
Equity Share Second Call A/cDr.
To Equity Share Capital A/c
[Being share second call amount due on 40,000 shares @ Rs. 20]
 8,00,000
8,00,000
(8)
Bank A/cDr.
To Equity Share Second Call A/c
[Being share second call amount received on 39,000 shares]
 7,80,000
7,80,000
(9)
Equity Share Capital A/cDr.
To Equity Share First Call A/c
To Equity Share Second Call A/c
To Equity Share Forfeiture A/c
[Being 1,000 shares forfeited on account of non-payment of first and second call]
 1,00,000
30,000
20,000
50,000
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Bills of Exchange Solution | March 2018 HSC Board Paper

Bills of Exchange Solution: March 2018 HSC Board

Q. 4. Bills of Exchange

March 2018 HSC Board Paper Solution

Refer to the question paper image below.

HSC Accounts March 2018 Question Paper - Page 7 (Q4 Bills of Exchange)

Journal Entries

In the books of Sayali
Swipe table left/right to view amounts →
Date Particulars L.F. Debit (Rs.) Credit (Rs.)
(1)
Manali’s A/cDr.
To Sales A/c
[Being the goods are sold]
 40,000
40,000
(2)
Bills Receivable A/cDr.
To Manali’s A/c
[Being the bill is drawn]
 40,000
40,000
(3)
Bank A/cDr.
Discount A/cDr.
To Bills Receivable A/c
[Being the bill is discounted]
 38,800
1,200

40,000
(4)
Manali’s A/cDr.
To Bank A/c
[Being the bill is dishonoured and noting charges charged]
 40,300
40,300
(5)
Manali’s A/cDr.
To Interest A/c
[Being the interest is charged]
 750
750
(6)
Cash A/cDr.
To Manali’s A/c
[Being the part payment is made along with Noting charges]
 20,300
20,300
(7)
Bills Receivable A/cDr.
To Manali’s A/c
[Being the new bill is drawn along with interest]
 20,750
20,750
(8)
Manali’s A/cDr.
To Bills Receivable A/c
[Being the bill is dishonoured]
 20,750
20,750
(9)
Cash A/cDr.
Bad debts A/cDr.
To Manali’s A/c
[Being the drawee become insolvent and only 40 % of the amount could be recovered from her private estate]
 8,300
12,450

20,750
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BILLS OF EXCHANGE HSC 12TH STANDARD

Bills of Exchange: Important Questions & Solutions for HSC 12th Standard Commerce

BILLS OF EXCHANGE HSC 12TH STANDARD

Introduction

A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument.

Parties to a Bill of Exchange

There are three parties to a bill of exchange:

  • Drawer: The person who makes or draws the bill. He is the creditor.
  • Drawee: The person on whom the bill is drawn. He is the debtor who has to pay the money.
  • Payee: The person to whom the payment is to be made. The drawer himself can be the payee.
₹ 35,000/-
Reena
Reena's Address,
City, Pincode.
Date: 15th May, 2023

Three months after date, pay to me or my order, the sum of Rupees Thirty Five Thousand only, for the value received.

To,
Aakash
Aakash's Address,
City, Pincode.
REVENUE
STAMP
Accepted
Sd/- Aakash
Date: 15-05-2023
Sd/- Reena
(Drawer)

Specimen of a Bill of Exchange

Question 1: Bill Honoured on Due Date

On 15th May, 2023, Reena sold goods to Aakash for ₹ 35,000. On the same day, Reena drew a bill of exchange on Aakash for the amount at 3 months. Aakash accepted the bill and returned it to Reena. Reena retained the bill till the due date. On the due date, Aakash honoured his acceptance.
You are required to pass Journal Entries in the books of Reena and Aakash.

Solution to Question 1

In the Books of Reena (Drawer)

Journal Entries

Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)
2023 May 15 Aakash's A/c     Dr.
To Sales A/c (Being goods sold on credit to Aakash) 		35,000 35,000
May 15 Bills Receivable A/c     Dr.
To Aakash's A/c (Being bill drawn and acceptance received from Aakash) 		35,000 35,000
Aug 14 Cash/Bank A/c     Dr.
To Bills Receivable A/c (Being bill honoured on the due date) 		35,000 35,000
Total 1,05,000 1,05,000

In the Books of Aakash (Drawee)

Journal Entries

Date Particulars L.F. Debit Amount (₹) Credit Amount (₹)
2023 May 15 Purchases A/c     Dr.
To Reena's A/c (Being goods purchased from Reena on credit) 		35,000 35,000
May 15 Reena's A/c     Dr.
To Bills Payable A/c (Being acceptance given to Reena) 		35,000 35,000
Aug 14 Bills Payable A/c     Dr.
To Cash/Bank A/c (Being bill honoured on the due date) 		35,000 35,000
Total 1,05,000 1,05,000

Working Note: Due Date Calculation

The bill is drawn on 15th May, 2023 for 3 months.

  1. Period in Months: 15th May, 2023 + 3 months = 15th August, 2023.
  2. Add Grace Days: 15th August + 3 Grace Days = 18th August, 2023.

However, 15th August is a Public Holiday (Independence Day). According to the Negotiable Instruments Act, if the due date falls on a public holiday, the preceding business day is considered the due date.
Therefore, the Legal Due Date is 14th August, 2023.

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