Final Accounts of Companies Question Bank
[BCOM 2nd Sem CBCS Pattern 2023]
In this post you will get Final Accounts of Companies Question Bank for BCOM 2nd SEM CBCS Pattern. In this Question Bank we will cover Questions asked in the following universities exam:
– Dibrugarh UniversityÂ
– Gauhati University
– Assam University
2022: 4. (a) Following is the Trial Balance of TD Co. Ltd. as at 31st March, 2022:
|
Particulars |
Debit (Rs.) |
Credit (Rs.) |
|
Factory premises at cost Plant & Machinery at cost Motor, Lorry at cost Debtors Bad Debts written off Rent, Rates and Taxes Advertisement Cash and Bank Directors’ Fees Audit Fes Stock as on 31/03/2022 Rent and Taxes paid in advance Salaries and Wages Patent Dividend paid: On Preference Shares On Equity Shares (interim) Share Capital: 30,000, 7% Preference Shares of Rs. 10 each 60,000 Equity Shares of Rs. 10 each Surplus A/c Gross Profit for the year Provisions for Doubtful Debts Sundry Creditors Transfer Fees Accrued Wages Staff Benevolent Fund |
4,50,000 3,49,160 73,000 1,21,780 2,850 28,400 19,500 68,500 3,600 10,000 1,14,600 7,980 32,000 15,000 Â 21,000 15,000 Â |
                   3,00,000 6,00,000 16,240 2,46,640 9,000 1,29,640 110 12,840 17,900 |
|
 |
13,32,370 |
13,32,370 |
The Provision for Doubtful Debts is to be made up to Rs. 10,200. The Factory Premises, Plant & Machinery and Motor Lorries are to be depreciated by 3%, 15% and 20% respectively. The Authorised Capital of the company is Rs. 10,00,000 divided into shares of Rs. 10 each. You are required to prepare –
(1) Statement of Profit and Loss for the year ended 31st March, 2022;
(2) a Balance Sheet as at 31st March, 2022 in the prescribed under the Companies Act, 2013. Previous Years’ figures are not required and also ignore taxation. You need not provide corporate dividend tax.        7+7=14
1. (2019) X Ltd. was registered with a nominal capital of Rs. 5,00,000 divided into shares of Rs. 100 each. The following Trial balance is extracted from the books on 31st March, 2019:
|
Dr. Balances |
Rs. |
Cr. Balances |
Rs. |
|
Building Machinery Closing Stock Purchases (adjusted) Salaries Director’s Fees Rent Depreciation Bad debts Interest accrued on Investment Investment in Shares Debenture Interest Loose Tools Advance Tax Sundry Expenses Debtors Cash at Bank |
2,90,000 1,00,000 90,000 2,10,000 60,000 10,000 26,000 20,000 6,000 2,000 1,20,000 28,000 23,000 60,000 18,000 1,25,000 30,000 |
Sales Outstanding Salaries Provision for Doubtful Debts Share Capital General Reserve Profit and Loss A/c Creditors Provision for Depreciation on: Building                            50,000 Machinery                       55,000 14% Debentures Interest on Debentures Outstanding Interest on Investments Unclaimed Dividend |
5,20,000 2,000 3,000 2,00,000 40,000 25,000 92,000 Â Â 1,05,000 2,00,000 14,000 12,000 5,000 |
|
12,18,000 |
12,18,000 |
You are required to prepare the Profit & Loss A/c for the year ended 31st March, 2019 and the Balance Sheet as on that date after taking into account the following information:Â Â Â Â Â Â Â Â Â Â 8+6=14
1) Closing Stock is more than Opening Stock by Rs. 30,000.
2) Provide for Bad and Doubtful Debts @ 4% on Debtors.
3) Make a provision for income tax @ 50%.
4) Depreciation includes depreciation of Rs. 8,000 on Building and that of Rs. 12,000 on Machinery.
5) The directors recommended a dividend of 25%.
6) Ignore Corporate Dividend Tax.
2. (2018) Following are the Ledger balances of ABC Ltd. As on 31st March, 2018:
|
Debit balances |
Rs. |
Credit balances |
Rs. |
|
Premises Plant Stock (1st April, 2017) Debtors Goodwill Cash at Bank Calls-in-Arrear Interim Dividend Paid Purchases Wages General Expenses Salaries Bad Debts Debenture Interest paid Preliminary Expenses |
30,72,000 33,00,000 7,50,000 8,70,000 2,50,000 4,51,600 75,000 3,92,500 18,50,000 9,79,800 53,350 2,02,250 21,000 1,80,000 20,000 |
Share Capital 12% Debentures Surplus Account Bills Payable Creditors Sales General Reserve Bad Debt Provision (1st April, 2017) |
40,00,000 30,00,000 2,62,500 3,70,000 4,00,000 41,50,000 2,50,000 35,000 |
|
|
1,24,67,500 |
|
1,24,67,500 |
Additional Information:
1.   Stock on 31st March, 2018 was Rs. 9,50,000.
2.   Depreciate plant by 15%.
3.   Write-off Rs. 5,000 from preliminary expenses.
4.   Interest on debenture is due for 6 months.
5.   Create 5% provision for doubtful debts.
6.   Provide for income tax # 50%.
Prepare Final Accounts of the company for the above period. Â Â
3. (2017) The Trial balance of a company as on 31st March, 2016 shows the following items:
|
Particulars |
Dr. Rs. |
Cr. Rs. |
|
Provision for Income Tax A/c Advance Payment of Tax A/c |
– 1,55,000 |
70,000 – |
You are also given the following information:
1.   Advance payment of tax includes Rs. 65,000 for 2015 – 16.
2.   Actual tax liability for 2015 – 16 amounted to Rs. 68,000 and no effect for the same has been given so far in the accounts.
3.   Provision for Income Tax to be made for 2016 – 17 is Rs. 80,000.
Prepare the various Ledger A/c involved and also show how relevant items will appear in the Balance Sheet of the company.
4. (2016) Following is the Trial Balance of Luit Co. Ltd. as on 31st March, 2016:
|
 |
Dr. Balances Rs. |
Cr. Balances Rs. |
|
Stock, 1st April, 2015 Sales Purchases Wages Discount Furniture and Fittings Salaries Rent Sundry Expenses Surplus A/c, 1st April, 2015 Dividend paid Share Capital Debtors and Creditors Plant and Machinery Cash at Bank Reserve fund Patents and Trade Mark |
75,000 Â 2,45,000 50,000 Â 17,000 7,500 4,950 7,050 Â 9,000 Â 37,500 29,000 16,200 Â 4,830 |
 3,50,000   5,000     15,030  1,00,000 17,500   15,500 |
|
 |
5,03,030 |
5,03,030 |
Prepare the Statement of Profit and Loss for the year ended 31st March, 2016 and Balance sheet as on that date. Take into consideration of the following adjustments: Â Â Â Â Â
1.   Stock on 31st March, 2016 was valued at Rs. 82,000.
2.   Depreciation on fixed assets @ 10% p.a.
3.   Make a provision for income tax @ 50% p.a.
4.   Ignore corporate dividend tax.
5. (2011) The following is the Trial Balance of Bee Ltd. as on 31st March, 2007:
|
Dr. Balances |
Rs |
Cr. Balances |
Rs |
|
Stock as on 1.4.2006 Purchases Wages Carriage Furniture Salaries Rent Sundry Trade Expenses Dividend Paid Debtors Plant & Machinery Cash at Bank Patents Bills Receivable |
75,000 2,45,000 30,000 950 17,000 7,500 4,000 7,050 9,000 27,500 29,000 46,200 4,800 5,000 |
Purchase Returns Sales     Discount             Profit & Loss A/c Share Capital Creditors General Reserve Bills Payable |
10,000 3,40,000 3,000 15,000 1,00,000 17,500 15,500 7,000 |
|
 |
5,08,000 |
 |
5,08,000 |
Prepare the profit & Loss A/c for the year ended 31st March, 2007 and a Balance Sheet as on that date after considering the following adjustments:
1.   Stock as on 31st March, 2007 Rs 88,000
2.   Provide for income tax at 50%
3.   Depreciate Plant and Machinery at 15%; Furniture at 10% and Patents at 5%
4.   On 31st March, 2007 outstanding rent amounted to Rs 800 and salaries Rs 900
5.   The Board recommends payment of a dividend @ 15% per annum. Transfer the minimum required amount to General Reserve.
6.   Provide Rs 510 for doubtful debts
7.   Ignore corporate dividend tax.
6. (2010) The XYZ Co. Ltd. was registered with an authorized capital of Rs 10,00,000 divided into shares of Rs 10 each, of which 40000 shares have already been issued and fully paid up. The following is the Trial Balance extracted on 31st March, 2009:
|
 |
Dr. |
Cr. |
|
Stock on 1.4.2008 |
1,86,420 |
 |
|
Returns |
12,680 |
9,850 |
|
Sundry Manufacturing Expenses |
19,240 |
 |
|
18% Bank Loan (secured) |
 |
50,000 |
|
Office Salaries and Expenses |
17,870 |
 |
|
Directors Remuneration |
26,250 |
 |
|
Freehold premises |
1,64,210 |
 |
|
Furniture |
5,000 |
 |
|
Debtors and Creditors |
1,05,400 |
62,220 |
|
Cash at Bank |
96,860 |
 |
|
Profit & Loss A/c on 1.4.2008 |
 |
38,640 |
|
Share Capital |
 |
4,00,000 |
|
Purchases and Sales |
7,18,210 |
11,69,900 |
|
Manufacturing Wages |
1,09,740 |
 |
|
Carriage Inwards |
4,910 |
 |
|
Interest on Bank Loan |
4,500 |
 |
|
Auditor’s Fees |
8,600 |
 |
|
Preliminary Expenses |
6,000 |
 |
|
Plant and Machinery |
1,28,400 |
 |
|
Loose Tools |
12,500 |
 |
|
Cash in Hand |
19,530 |
 |
|
Advance Payment of Tax |
84,290 |
 |
|
 |
17,30,610 |
17,30,610 |
You are required to prepare Profit & Loss A/c for the year ended 31st March, 2009 and a Balance Sheet as at that date after taking into consideration the following adjustments:
1.   On 31st March, 2009, outstanding manufacturing wages and outstanding office salaries stood at Rs 1,890 and Rs 1,200 respectively. On the same date stock was valued at Rs 1,24,840 and loose tools at Rs 10,000
2.   Provide for interest on Bank loan for 6 months
3.   Depreciation on plant and Machinery is to be provided @ 15% while on office furniture is to be @10%
4.   Write off one-third of balance of preliminary expenses
5.   Make a provision for income tax @50%
6.   The directors recommended a maiden (first) dividend @15% for the year ending 31st March, 2009 after the minimum transfer to General Reserve as required by law
7.   Ignore corporate dividend tax
7. (2004) The trial Balance of DLH Ltd. As at 31st March, 1998 shows the following items:
Particulars                                                             Dr. (Rs)                  Cr. (Rs)
 Advance payment of income tax                        2,20,000
Provision for income tax for the year ended 31-3-1997Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1,20,000
The following further information’s are given:
1.   Advanced payment of Income Tax includes Rs. 1,40,000/- for 1996-97
2.   Actual Tax liability for 1996-97 amounts to Rs. 1,52,000/- and no effect for same has so far been given in accounts.
3.   Provision for income tax has to be made for 1997-98 for Rs. 1,60,000/-
You are required to prepare:
1.   Provision for income tax account
2.   Advance payment of income tax account
3.   Income tax payable account.
And also show how the relevant items will appear in the Profit and Loss Account and balance sheet of the Company.
8. (2007) For the year ended 31st March, 2001, Provision for income tax has been made for Rs. 25,00,000. Advance payment for tax for the year amounted to Rs. 22,50,000 and tax deducted at source on income earned by the company amounted to Rs. 46,000. On November 15, 2001, the assessment was completed and tax liability was determined at Rs.29,20,000. Advance payment of tax for the year ending 31st March 2002 was Rs. 62,00,000 show—-
(i) Provision for income tax account
(ii) Advance income tax account
(iii) Income tax deducted at source account
(iv) Income tax payable account
Further assuming that Rs. 80,00,000 was provided as provision for taxation for the year ending 31st March, 2002.
PRACTICAL QUESTION BANK (FROM 2012 TO 2022)
ISSUE OF SHARES, RIGHT SHARES AND BONUS SHARES
REDEMPTION OF PREFERECE SHARES
ISSUE AND REDEMPTION OF DEBENTURES
AMALGAMATION AND EXTERNAL RECONSTRUCTION
Important Theory Questions for 2023 BCOM Exams available here.