Principles and Practice of Accounting - December 2021

May, 2020 A sold goods to B for %. 36,470 and drew upon the later two bills one for %. 16,470 at one month and the other for %. 20,000 at three months. B _ accepted both the bills. On 5% June, 2020 A sent both the bills to his banker for collection on the due dates. The first bill was duly mot. But duc to some temporary financial difficulties, B failed to honour the second bill on the due…

(ii) A,B and C are partners in a firm. On 1+ April, 2019, their fixed capital stood at %. 50,000, %. 25,000 and &. 25,000 respectively. ’ As per the provisions of partnership deed : (1) C was entitled for a salary of %. 5000 p.a. (2) All the partners were entitled to interest on capital at 5% p.a. (3) Profits and losses were ‘to be shared in the ratio of Capitals of the partners. Net Profit for the year…

(a) Pass the Journal entries to rectify the following errors detected during preparation of the Trial Balance : (i) Wages paid for construction of office building debited to wages account %. 20,000. Gi) A credit sale of goods %. 1,2U0 to Ramesh has been wrongly passed through the Purchase Book. (iii) An amount of @. 2,000 due from Mahesh Chand which had been written off as a bad debt in the previous year was unexpectedly recovered and has been posted…

Fashion Garments Ltd invited applications for issuing 10,000 Equity Shares of 210 each. The amount was payable as follows: - @) On Application - Rs. 1 per sharé Gi) On Allotment - Rs. 2 per share , Gii) On First call - Rs. 3 per share (iv) On Second and Final Call - Rs. 4 per share The issue was fully subscribed. Ram to whom 100 shares were allotted, failed to pay the allotment money and his shares were forfeited…