Practice Question - 1
The company details are as follows :
(a) Name – Exam112019
(b) Address – Your Address, Telephone No., Mobile No.
(c) Email Id – admin@drc.ac.in
(d) Currency Symbol: ₹
(e) All transactions of sale and purchase of goods, payments to creditors and receipts
from debtors are done through Canara Bank.
(f) Any other payment and receipt is done through State Bank of India or Cash.
Balance Sheet as at 31-03-2018
Liabilities Amount Assets Amount
Capital 1000000 Land and Buildings 1200000
General Reserve 550000 Plant and Machinery 250000
Profit and Loss Account 300000 Furniture 190000
Secured loan 1000000 Investment 300000
Debentures 1200000 Stock 1955500
Loan from Promoters 250000 Debtors 547000
Provision for tax 350000 Bills Receivables 24000
Bills Payable 120000 State Bank of India 500000
Sundry Creditors 370000 Canara Bank 280000
Salaries outstanding 80000 Cash in Hand 18000
Rent outstanding 50000 Prepaid insurance 5500
5270000 5270000
➢ The company deals in the following stocks:
Name of the Items Group Quantity Rate (₹) Opening Stock Value
Cotton Shirts 150 pcs. 750 112500
Woollen Shirts 135 pcs. 800 108000
Rayon Shirts 220 pcs. 500 110000
Denim Trousers 350 pcs. 1000 350000
Woollen Trousers 650 pcs. 1200 780000
Cotton Trousers 900 pcs. 550 495000
Total 1955500
➢ The list of company debtors and creditors is as follows:
Debtors Balance Due Creditors Balance Payable
Jyoti 380000 Ramesh 78000
Kavita 66000 Pradeep 33500
Suresh 21000 Namita 66500
Meena 46000 Poonam 52000
Mahesh 34000 Reena 140000
Total 547000 Total 370000
Record the following transactions that took place during financial year 2018-2019.
S.No. Transaction Item Quantity Amount
1 Purchase from Namita Cotton Shirts 40 36000
2 Sale to Meena Woollen Shirts 100 190000
3 Sale to Suresh Denim trousers 50 180000
4 Paid money to Namita in full settlement for 34200
the transaction no. 1 above
5 Received from Meena and Suresh ₹ 175000
each in full settlement for their transactions
at no. 2 and no. 3 above.
6 Paid to Pradeep in full settlement of his 32000
account
7 Purchase from Ramesh Woollen Shirts 110 33000
8 Purchase from Reena Cotton Shirts 325 130000
9 Sale to Jyoti (Trade discount 10% on list Rayon shirt 200 shirts. List Price ₹
price) 1500/- each
10 Purchased furniture 60000
11 Paid insurance Premium 11000
12 Purchased Land and Building from XY Ltd for ₹ 15,00,000. To pay for this the company
borrowed from bank a loan of ₹ 9,00,000 and issued fully paid debentures of ₹ 6,00,000 to
XY Ltd.
13 Sold all the investment 5,25,000
14 Paid
1. Outstanding Salaries 60000
2. Electricity 8000
3. Telephone 3500
4. Current Salaries 40000
5. Rent (including outstanding) 90000
6. Tax of last year 250000
15 Outstanding
1. Total Salaries 70000
2. Total Provision for Tax 180000
3. Total rent outstanding 30000
4. Prepaid Insurance 5500
Charge Depreciation for the period 01-04-2018 to 31-03-2019 on Furniture @ 8% p.a. and
on Plant and Machinery @ 12% p.a.
You are required to:-
1. Create a company as per details given above
2. Create appropriate groups and Ledger Accounts.
3. Enter the transactions as given selecting appropriate voucher type.
4. Display the following statements
(a) Trial Balance as on 31st March 2019
(b) Profit and Loss Account for the year ended on 31st March 2019
(c) Balance Sheet as on 31st March 2019
(d) Cash Book
(e) Ratio Analysis
