ACCOUNTANCY   -   HOME WORK  (18-1-2017)  

Q1	State the nature of receipts and payment account.
Q2	State one feature of not for profit organization.
Q3	If gross loss is Rs 10,000 and Net Sales is Rs1,00,000 Calculate the amount of Cost of goods sold.
Q4	Differentiate between balance sheet and trial balance.
Q5	Net profit of a business before charging managers commission is Rs 99,000 .Manager is entitled to commission of 10% on net profit after charging such commission. Calculate managers commission.
Q6	Calculate the(i) gross profit (ii) Opening and Closing Stock of the business from the following information:    Net sales Rs1,25,000; Gross profit is 25% of cost; Opening stock is 1/5th  of net sales  and closing stock  is Rs10,000 more than two times opening stock.
Q7	Write the adjustment Journal entries in each of the following cases: (i)                 Prepaid insurance Rs500 (ii)               Salary outstanding Rs2000 (iii)             Interest on capital
Q8	From the following information calculate the amount of provision  for bad debt to be debited to profit and loss account   and show how the items  would appear in the Final Accounts of the  business. Name of the account Debit Credit Debtors 40,000 Provision for bad debt 1,000 Bad debt 500
	Additional information: Additional bad debt during the year was Rs 800.The business wants to maintain a provision for bad debt at 10% on debtors.
Q9	What is meant by grouping and Marshalling of Balance  sheet. Draw a specimen of Balance sheet on the basis of order of liquidity.
Q10	Differentiate between single entry system of accounting and double entry system of accounting
Q11	Calculate the subscription income for the Delhi sports club from the following information:  Subscription income received during 2016 : Rs75,000 Advance subscription received in 2015        :Rs10,000 Advance subscription received in 2016        :Rs 8,000 Subscription outstanding at the beginning of the year  :Rs 5,000 Subscription outstanding at the end of the year  :Rs 12,000
Q12	Hari  maintains his account on Single Entry System. Calculate his profit on 31st March, 2016 from the following information: Particulars 1-1-2016 31-12-2016 Land & Building 1,00,000 1,50,000 Machinery   50,000   60,000 Furniture   20,000   25,000 stock     5,000    8,000 Debtors     7,000   12,000 Loan   25,000  35,000 creditors    3,000     2,000 Cash    1,500     500         Additional Information:  Depreciate Machinery by 10 %P.a. and Furniture by 5%p.a. Land and Building to be appreciated by 10%P.a. Maintain a provision for bad debts @5%. During the additional capital introduced was Rs25,000 and drawings made by the proprietor was Rs10,000.
Q13	The following balances is extracted from the books of a merchant on 31st December  2016: Name of Account Debit Credit Furniture and Fittings 10,000 Motor Vehicles 1,00,000 Buildings 2,00,000 Capital 2,50,000 Bad Debts 2,000 Provision for Bad Debts 1,000 Debtors  and creditors 30,000 50,000 Stock on 1 Jan .2016 5,000 Purchases and sales 40,000 1,00,000 Bank overdraft 20,000 Sales and purchase returns 2,000 1,000 Advertising 9,000 Interest 500 Commission 1,500 Cash 7,800 Taxes 1,000 Insurance 1,200 Salaries 15,000                                                         Adjustments to be made: (a)   Stock in hand on 31st Dec 2016 was Rs.10,000 (b)    Depreciate buildings at 5%, Furniture and fittings at 10%. (c)    Salaries Rs.1500 and taxes Rs.400 are outstanding. (d)   Insurance amounting to Rs.200 is prepaid. (e)    Provision for bad debt is to be made equal to 5% of sundry Debtors.  Prepare a trading and profit and loss account for  the year ending 31st December 2016 and a balance sheet as on that date.