PRACTICE QUESTIONS

Practice Questions

Q1.  Identify the Assets and Liabilities

Item Assets Liability
Capital
Closing Stock
Bank Over Draft
Trade Marks
Accrued Rent
Proposed Dividend
Revenue Reserve
Investment in Gold
Public Deposits
Fictitious Assets

 

Q2.  Identify the Expenses and Incomes

Item Income Expense
Discount Received
Salary Paid
Interest on FD
Interest on Bank Loan
Bad Debts
Sale of scrape
Public Deposits
Dividend Received
Sale of Obsolete Machinery

 

Q3.  Prepare a Trial Balance

Particulars Amount (Rs.)
Cash in Hand 20,000
Capital 5,00,000
Sales 2,00,000
Audit Fees 20,000
Purchases 3,00,000
Goodwill 45,000
Bank Loan 1,00,000
Outstanding Salary 19,300
Debtors 18,900
Bad Debts 900
Creditors 16,000
Outstanding Salary 9,000
Plant and Machinery 4,25,000
Accrued Interest 5,000
Furniture and Fixtures 1,00,000
Charity 5,000
Miscellaneous Income 6,000
Outstanding Rent 5,000
Rent 15,000
Excise Duty 5,000
Loan from Relatives 1,04,500

 

Q4.  Specify in where the following items will appear-

Item P&L Balance sheet
Bank Balance
Building
Purchases
Bank Overdraft
Closing Stock
Sales
Outstanding Salary
Salary
Investment in Bonds
Loan to Employees
Legal Fees
Bonds
Capital Reserve
Bank Loan
Interest on Bank Loan
Royalty Received
Depreciation
Share Capital
Advance Tax
Commission Received
Outstanding Interest on

Capital

 

Q5.  Prepare Trial Balance, P&L Statement and Balance Sheet

Items Amount (Rs.)
Bank Loan 14,000
Marketable Securities 6,500
Bills payable 15,500
Income Received in Advance 3,500
Sundry Debtors 12,000
O/S Salary 2,500
Prepaid Rent 2,000
Insurance Expense 7,300
Capital 95,000
Rent 400
Depreciation on Equipment 2,000
Accrued Income 15,000
Machinery 25,000
Loan to Employees 3,500
Equipment 40,000
Maintenance Expense 5,000
Power and Fuel 4,800
O/S Expenses 1,500
Prepaid Insurance Premium 8,500

 

Q6.  Prepare Trial Balance, P&L Statement and Balance Sheet as per its Sub Heads

Investment in Gold Rs. 74,800
Purchases Rs. 2,95,700
Stock Rs. 47,000
Bills Receivable Rs. 52,500
Capital Rs. 2,50,000
Furniture Rs. 33,000
Discount Allowed Rs. 950
Sales Rs. 3,35,350
Rent Rs. 72,500
Freight Rs. 3,500
Printing Charges Rs. 1,500
Creditors Rs. 75,000
Insurance Rs. 2,700
Sundry Expenses Rs. 21,000
Discount Received Rs. 1,000
Bank Loan Rs. 1,20,000
Income Tax Rs. 9,500
Machinery Rs. 2,15,400
Bills Payable Rs. 48,700

 

Q7.  Prepare Trial Balance, P&L Statement and Balance Sheet

Capital Rs. 4,20,000 Bad debts Rs. 3,200
Cash in Hand Rs. 25,000 Sales Rs. 1,96,000
Building Rs. 1,15,000 Insurance Rs. 2,400
Cash at Bank Rs. 84,700 General Expenses Rs. 800
Machinery Rs. 60,000 Sundry Debtors Rs. 16,200
Sundry Creditors Rs. 68,000 Proposed Dividend Rs. 7,300
Furniture Rs. 11,000 Salaries Rs. 94,000
Rent Rs. 48,000 Closing Stock Rs. 98,000
Car Rs. 68,000 Pre Received Income Rs. 28,000
Commission Rs. 1,400 Interest Received Rs. 5,000
Rates and Taxes Rs. 2,600 Loan Rs. 20,000
Purchases Rs. 94,000

 

Q8.  Prepare Trial Balance, P&L Statement and Balance Sheet

Owner’s Equity  Rs. 4,70,200 Telephone Charges   Rs. 6,450
Machinery  Rs. 1,58,800 Rent & Taxes   Rs. 6,300
Cash in Hand  Rs. 6,000 Furniture   Rs. 11,000
Account Receivable  Rs. 56,600 Purchases   Rs. 1,65,000
Building  Rs. 3,20,000 Discount Earned   Rs. 1,100
Repairs  Rs. 5,400 Loan from Bank   Rs. 51,000
Stock  Rs. 33,000 Salaries   Rs. 70,600
Insurance Premium  Rs. 3,300 Reserve Fund   Rs. 5,900
Bills Payable  Rs. 32,000 Discount Allowed   Rs. 650
Sales  Rs. 2,90,000 Goodwill   Rs. 5,000
Commission  Rs. 750 Bad debts   Rs. 1,350

 

Q9.  Prepare Trial Balance, P&L Statement and Balance Sheet

Plant and Machinery Rs. 1,00,000 Capital Rs. 1,71,500
Opening stock Rs. 60,000 Sundry debtors Rs. 1,00,000
Purchases Rs. 1,60,000 Salaries Rs. 24,000
Building Rs. 1,70,000 Furniture Rs. 36,000
Carriage Inward Rs. 3,400 Trade expense Rs. 12,000
Carriage outward Rs. 5,000 Discount on sales Rs. 1,900
Wages Rs. 32,000 Advertisement Rs. 5,000
Sales Rs. 4,80,000 Bad debts Rs. 1,800
Interest received Rs. 2,000 Patents Rs. 10,000
Sundry creditors Rs. 40,000 Bills receivable Rs. 50,000
Bank loan Rs. 1,00,000 Insurance premium paid Rs. 4,400
Discount on purchases Rs. 2,000 Bank balances Rs. 20,000

 

Q10. Prepare Trial Balance, P&L Statement and Balance Sheet as per Sub Heads.

Particulars Amount (Rs.)
Opening Stock 14600
Trading Expenses 1450
Purchases 68700
Discount allowed 1250
Sales 85300
Discount Received 800
Return outward 2200
Bill Receivables 4500
Carriage Inward 2100
Debtors 16800
Capital 50000
Closing stock 28700
Drawings 12000
Insurance 1600
Advertisement 2400
Salesmen’s Salaries 5200
Loan 21000