CA Intermediate Accounts: Topic wise Test

Accounting From Incomplete Records

50 Marks : 1 Hour 30 Minutes

1. The following information relates to the business of ABC Enterprises, who requests you to prepare a Trading and
Profit & Loss A/c. for the year ended 31st March, 2017 and a Balance Sheet as on that date.
(a) Assets and Liabilities as on :
In Rs.
1,4,2016 31.3.2017
Furniture 60,000 63,500
Stock 80,000 70,000
Sundry Debtors 1,60,000 -
Sundry Creditors 1,10,000 1,50,000
Prepaid Expenses 6,000 7,000
Outstanding Expenses 20,000 18,000
Cash in Hand & Bank Balance 12,000 26,250
(b) Cash transaction during the year
(i) Collection from Debtors, after allowing discount of Rs. 15,000 amounted to Rs. 15, 85,000.
(ii) Collection on discounting of Bills of Exchange, after deduction of discount of Rs.1250 by bank, totalled to Rs.
61,250.
(iii) Creditors of Rs.4, 00,000 were paid Rs. 3, 92,000 in full settlement of their dues.
(iv) Payment of Freight inward of Rs. 30,000.
(v) Amount withdrawn for personal use Rs. 70,000.
(vi) Payment for office furniture Rs.10, 000.
(vii) Investment carrying annual interest of 6% were purchased at Rs. 95 (200 shares, face Value Rs. 100 each) on
1st October 2016 and payment made thereof.
(viii) Expenses including salaries paid Rs. 95,000.
(ix) Miscellaneous receipt of ^5,000.
(c) Bills of exchange drawn on and accepted by customers during year amounted to Rs.1, 00,000 of these, bills of
exchange of Rs. 20,000 were endorsed in favour of creditors. An endorsed bill of exchange of Rs. 14,000 was
dishonoured.
(d) Goods costing Rs. 19,000 were used as advertising material.
(e) Goods are invariably sold to show a gross profit of 20% on sales.
(f) Difference in cash boo, if any, is to be treated as further drawing or introduction of capital by proprietor of ABC
enterprises.
(g) Provide at 2% for doubtful debts on closing debtors.
(16 Marks)

2. The following is the Balance Sheet of M/s. Care Traders as on 1-4-2014:

Rs.
Source of Funds
Share Capital 10,00,000
Profit and Loss 1,47,800
Unsecured Loan @ 10% 1,75,000
Trade Payable 45,800
13,68,600
Application of Funds
Machinery 8,35,500
Furniture 1,28,700
Inventory 1,72,000
Trade Receivables 2,29,600
Bank Balance 12,800
13,68,000
Afire broke out in the premises on 31-3-2015 and destroyed the books of account. The accountant could however
provide the following information:
(1) Sales for the year ended 31-3-2014 was Rs. 18,60,000. Sales for ti current year was 20% higher than the last
year.
(2) 25% sales were made in cash and the balance was on credit.
(3) Gross profit on sales is 30%.
(4) Terms of Credit
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 CA Intermediate Accounts: Topic wise Test
Accounting From Incomplete Records
50 Marks : 1 Hour 30 Minutes

Debtor : 2 months
Creditors : 1 month
All creditors are paid by cheque and all credit sales are collect in cheque.
(5) The Bank Pass Book has the following details (other than payment to creditors and collection from debtors)
Rs.
Machinery purchased 1,14,000
Rent paid 1,32,000
Advertisement expenses 80,000
Travelling expenses 78,400
Repairs 36,500
Sales of Furniture 9,500
Cash withdrawn of pretty expenses 28,500
Interest paid on unsecured loan 8,750
(6) Machinery was purchased on 1-10-2014.
(7) Rent was paid for 11 months only and 25% of the advertisement expenses relates to the next year.
(8) Travelling expenses of Rs. 7,800for which cheques were issued but not presented in bank.
(9) Furniture was sold on 1-4-2014 at a loss of Rs. 2,900 on book value.
(10) Physical verification as on 31-3-2015 ascertained the stock position at Rs. 1,81,000 and petty cash balance at
nil.
(11) There was no change in unsecured loan during the year.
(12) Depreciation is to be provided at 10% on machinery and 20% on furniture.
Prepare Bank Account, Trading and Profit and Loss Account for the year ended 31-3-2015 in the books of M/s. Care
Traders and a Balance Sheet as on that date. Make necessary assumptions wherever necessary.
(17 Marks)
3. Following are the incomplete information of Moonlight Traders:
The following balances are available as on 31.3.2013 and 31.03.2014.
31.3.2013 Rs. 31.3.2014 Rs.
Land and Building 5,00,000 5,00,000
Plant and Machinery 2,20,000 3,30,000
Office equipment 1,05,000 85,000
Debtors ? 2,25,000
Creditors for purchases 95,000 ?
Creditors for office expenses 20,000 15,000
Stock ? 2,25,000
Long term loan from SBI @ 12% 1,25,000 1,00,000
Bank 25,000 ?
Provision for tax (rate 30%) 35,000 30,000

Other Information Rs.

Collection from debtors 9,25,000
Payment to creditors for purchases 5,25,000
Payment of office expenses 42,000
Salary paid 32,000
Selling expenses 15,000
Cash Sales 2,50,000
Credit Sales (80% of total Sales) ?
Other purchases 5,40,000
Cash purchase (40% of total purchase)
GP Margin at plus 25%
Discount Allowed 5,400
Discount Received 4,500
Bad debt (2% of closing debtors)
Depreciation to be provided as follows
Land and Building 5%
Plant and Machinery 10%
Office Equipment 15%

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 CA Intermediate Accounts: Topic wise Test
Accounting From Incomplete Records
50 Marks : 1 Hour 30 Minutes

Other adjustments:
(i) On 01.10.2013 they sold machine having Book Value Rs. 40,000 as on 31.03.2013) at a loss of Rs. 15,000.
New machine was purchase on 01.01.2014.
(ii) Office equipment was sold at its book value on 01.04.2013.
(iii) Loan was partly repaid on 31.03.2014 together with interest for the year.
Prepare Trading P & L A/c and Balance Sheet as on 31.03.2014.
(17 Marks)

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 CA Intermediate Accounts: Topic wise Test
Accounting From Incomplete Records
50 Marks : 1 Hour 30 Minutes

Q No Source Marks

1 2017 May 16

2 2015, May 17

3 2014, May 17

Total 50