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_—, , and and Qui, Plant and Mac, Pahis a, Motor Vehicle, , , , , , , Discount, Commission, Interest, , Rent, Rates & Taxes, Repairs., , Insurance, , Printing & Stationery, Water & Electricity, Postage & Telegrams, Traveling Expenses, Conveyance Charges, Entertainment Expenses, Staff Wellare Expenses, Sales Promotion Expenses, Bad Debts, Depreciation, Miscellaneous Expenses/incomes, Debtors/Creditors, Bills Receivables/Bills Payables, , 12% Investments (Purchased on 1.10.20X1), , Loan from bank (Long-term), Cash in hand, , Cash at bank, , Drawings, , Sales Tax Collected, , Capital Account, , or (fis) | Gr imap, 42.500, 00, 47500, , 47500, , , , , , $25,000, 2,000, 4.000, 20,000, 2,000, 1,500, 2,500, 3,000, 600, 3,600 | ©, 600 a, 1,200 | 500, 1,600 =, 1,200 =, 1,200 ad, 1,200 | =, | 2,400 | | 1,000 | =, 20,000 | ~, 4,000 | 1,500, | 2,05,000| 50,000, } 10,000) 1,600, | 50,000 |, | - | 54,000, 5,000 |, 10,000 | , 10,000 , , , , , , , Additional Information: Closing Stock as on 31.03.20X2 was Rs°42,000., Required: Pass the necessary closing entries and adjusting entries and prepare the Trading and, Profit & Loss Account for the year ending on 31st March, 20X2 and a Balance Sheet as on that, , date., , ‘AS-27 | Financial Reporting, Joint Venture, Impairment of Assets, , , , Mandatory, Mandatory, , 2021/8/27 09:28

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Financial Statements, , } emepotlOwing are the Closing &, the ng Entries, , , , Passed, Joumal of Shri Ram, , , , , , To Purchases A/c, Te Carriage Inward Aj, To Wages and Salaries, To Retums Inward, , the transfer of balances to Trading aye, , , , , , , , , 5 Ac, im Outwards Ale, To Trading A/c, going the transfer of Sales & Retim Our, , fading A/c), , , , , , To Profit & Loss A/c, geing the transfer of Gross Prof, profit & Loss Ale, , To Carriage Outwards Ajc, To Salaries & Wages A), To Discount Allowed A/c, To Commission Allowed A/c, To Interest Allowed A/c, To Rent, Rates & Taxes Alc, To Repairs A/c, To Insurance A/c, To Printing & Stationery A/c, To Water & Electricity, To Postage & Telegram, To Travelling Expenses A/c, To Entertainment Expenses, To Staff Welfare Expenses A/c, To Conveyance Charges A/c, To Sales Promotion Expenses A/c, To Bad Debts A/c, To Misc. Expenses A/c, To Depreciation A/c, (Being the transfer of balances to Profit & Loss A/c), , , , , , Discount Received A/c Dr., Commission Received A/c Dr., Interest Received A/c Dr., Misc. Income A/c Or., To Profit and Loss A/c }, 3eing the transfer of balances to Profit and Loss A/c) |, Dr., , , , ofit & Loss A/c, , To Capital A/c ;, 2ing the transfer of Net Profit to Capital A/c) |, , , , , , , , , , , , , , 1,900, 2.000, 3,000, 1,500, 7300, |, 2400 |, 2m

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onl, exeminatl, , an profession?, 40,000, , , , , , , , , , 11.22 Accountancy for, or 165, , , , , , , , , , , , , , , , , , (Conta), Capital AZe vo), pital A, To Drawings Ale ings Ale 10 09 ,, (Boing the transfer of balance In Drawins! i 42,000 ;, Adjusting Entry to be passed 42.64, Closing Stock A/c aaa, To Trading A/c the ond of 20004 nthe, (Being tho valve of stock on hand at, period brought into account) ___— account, pero oss, y and ving on ©, Dr for the year endin aaa ~, —_— 78 630,000 :, Particulars Sales 40.000, To Oponing Stock 75,000 | BY (or. Retums 09° | 8:20.00, To Purchases 525,000 gy Closing Stock 42,09, Less: Returns 5,000 5,20,000 | PY, To Carriage Inwards F yee, To Wages & Salaries *, To Gross Profit transferred, oP &LAC 62,000 6.62660, 6,62,000 rose Profit b/d 62,004, To Depreciation [20,000 | By Gross Fr 1000, To Salaries & Wages 20,000 e interet | 3,009, To Discount 2,000 | BY lec, Incomes 1 4,800, To Commission 1,500 | By Mise, To Interest 2,500, To Rent, Rates & Taxes 3,000 \, To Repairs 600 \, 3,600 \, \, , To Insurance, To Printing & Stationery | 600, , , , , , To Water & Electricity | 1200), To Postage & Telegram 500 |, , To Travelling Expenses | 1,600, To Entertainment Expenses 1,200, To Stall Wellare Expenses 1,200, , To Conveyance Charges 1,200 \, alos Promotion Expenses 2,400, , To Bad Depts 1,000 \, , 1,000 |, , To Misc. Expenses, To Net Profit transferred to Capital Alc] 2,400, | 69,500 |, 1, , , , , , Balance Sheet of Shri Ram, as at 316t March, 20X2, , , , , , Liabilities, = | Ais Assets \ ,, Current Liabilities } if = } Re, editors urrent Assets., 5 as ., | 50,000 | Cash in hand | 5 00, , ——_— (Contd., , Financial Reporting of Interes', Joint Venture Mandatory, Impairment of Assets Mandatory 14.2004

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Financial Gtatornents 14.25, , , , , , , , 1 4,000 | Debtor \ nee, Be tee Fillo. Recowvabion pee, boon 12% Invontmont soe, e fe “prawings 10,000) cee ernie, ee Drawings (10,000) Motor Vohicley ee, on 4.92.400.] Furniture Fixture & Fittings Ate, = Plant & Machinery are, Land & Building A Aeeey, S 6,029,000 6,092,000, fon 8 Taking the same int the I, peand Balance Sheet in vertical form: i, , , , Income Statement, ; for the period ended 31st March,, Particulars pe kade :, , , , , , , , , , , , Rs, | 6,30,000, | 10,000 6,20,000, ', | 75,000, 5,25,000 |, 5,000 | 5,20,000, Carriage Inward | 4,000 |, Wages & Salaries 7 \ 4,000 __|, Cost of Goods available for sale 600,000 |, 388° Closing Stock 42,000 __, C. Gross Profit (A-B), D. Operating Expenses, (a) Selling Expenses | \, Carriage Outward | ‘phocoe |, Discount allowed | 2,000 |, Commission allowed | 1,500 \, Travelling Expenses | 1,600 |, Entertainment Expenses | 4,200 |, Sales Promotion Expenses | 2,400 |, Bad Debts eee 31100, (b) Office and Administration Expenses |, Salaries & Wages \ 20,000, Rent, Rates & Taxes | 3,000 |, Repairs | 600, Insurance | 3,600, Printing & Stationery 600, Water & Electricity 1,200, Postage & Telegram | 500 |

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11.24 Accountancy for CA Professional Examination-1, , (Conta), Staff Welfare Expenses, Conveyance Charges, Misc. expenses, Depreciation, , Total Operating Expenses, , E. Net Operating Profit (Loss) (C-D), , F. Net Non-operating Incomes, , (a) Non-Operating Incomes, , , , , , , , Interest eamed 3,000, Commission eamed 2,000, 1,000, , Discount eamed, Mise. Incomes 1,500, , (b) Non-operating Expenses & Losses, Interest Allowed, , 7,500, , 2,500 (2,500), , , , , , , , , , , , , , , , G._ Net Profit, Balance Sheet of Shri Ram, as at 31st March, 20X2, Particulars Rs J As, |. Sources of Funds, (@) Proprietors Funds, Capital in the beginning 5,00,000, Add: Net profit 2,400, Less: Drawings 10,000 4,92,400, (b) Long term debts 54,000, 546,400, |. Application of Funds ieee, (@) Net Working Capital, () Curent Assets, Cash in hand 5,000, Cash at bank 10,000, Bills Receivables 10,000, Debtors 2,05,000, rn Stock 42,000 2,72,000, (i) Curent Liabilities aS, Bills payable 1,600, Creditors 50,000, Sales tax collected 4000 | 5, (b) Investments ee ae oe, (0) Fixed Assets f, Motor Vehicles, Furniture & Fixtures & Fittings ee, Plant & Machinery 42500, Land & Building 1,42,500 2,80,000, Se ea ee IE ero