Principles and Practice of Accounting - 5 mtp MTP

2. Finished goods are normally valued at cost or market price whichever is higher. 3 Subscriptions received for the current year shall be shown in the balance sheet as a current asset. 4 When shares are forfeited, the share capital account is debited with called up capital of shares forfeited and the share forfeiture account is credited with Calls in arrear of shares forfeited. 5 Discount at the time of retirement of a bill is a gain for the drawee.

6. Bills receivable and bills payable books are type of subsidiary books. (6 statements x 2 Marks = 12 Marks) (b) What services can a Chartered Accountant provide to the society? (4 Marks) (c) One of your clients Mr. X asked you to finalize his account for the year ended 31%! March,2024. As a basis for audit, Mr. X furnished you with the following statement: Dr. Cr. X's Capital 4,668 X's Drawings 1,692 Leasehold Premises 2,250 Sales 8,250 Due from…

(a) Mr. Manas was unable to agree the Trial Balance last year and wrote off the difference to the Profit and Loss Account of that year. Next year, he appointed a Chartered Accountant who examined the old books and found the following mistakes: (i) Purchase of a scooter was debited to conveyance account = 30,000. Mr. Manas charges 10% depreciation on scooter. (ii) Purchase account was over cast by = 1,00,000. (iii) A credit purchase of goods from Mr. Sam…

3. (a) The trial balance of Saurav as at 31st March, 2024 is as follows: Particulars Dr. Cr. z z Saurav’s capital account -}| 1,91,725 Stock 1S! April, 2023 1,17,000 - Sales -| 9,74,000 Returns inward 21,500 - Purchases 8,04,250 - Returns outward - 14,500 Carriage inwards 49,000 - Rent & taxes 11,750 - Salaries & wages 23,250 - Sundry debtors 60,000 - Sundry creditors - 37,000 Bank loan @ 14% p.a. - 50,000 Bank interest 2,750 - Printing and…

(a) Aand Bare partners in a firm, sharing Profits and Losses in the ratio of 3:2. The Balance Sheet of A and B as on 31.3.2024 was as follow: Liabilities Amount %/Assets Amount = Sundry Creditors 25,800 | Building 52,000 Bill Payable 8,200 | Furniture 11,600 Bank Overdraft 18,000 | Stock-in-Trade 42,800 Capital Accounts: Debtors 70,000 A 88,000 Less: Provision 400; 69,600 B 72,000 1,60,000 | Investment 5,000 Cash 31,000 2,12,000 212,000 ‘C’ was admitted to the firm on the…

Pass Book of Swati showed a balance of = 1,50,000 to her credit while balance as per cash book was ¢ 1,12,050. On scrutiny of the two books, she ascertained the following causes of difference: (i) She has issued cheques amounting to = 80,000 out of which only % 32,000 were presented for payment. (ii) She received a cheque of = 5,000 which she recorded in her cash book but forgot to deposit in the bank. (iii) A cheque of…

(a) X Limited invited applications for issuing 75,000 equity shares of = 10 each at a premium of % 5 per share. The total amount was payable as follows: - = 9 per share (including premium) on application and allotment - Balance on the First and Final Call Applications for 3,00,000 equity shares were received. Applications for 2,00,000 equity shares were rejected and money refunded. Shares were allotted on pro-rata basis to the remaining applicants. The first and final call…