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Worksheet Exam Based Problems and Answers

Arjun EP

Published on: February 9, 2021

Worksheet Exam Based Problems and Answers

Exam based problems of worksheet are the BEST collection of board and university examination.

Questions are set according to easy to difficult series.

Journal Entries for Adjustment

Bad debts on debtors or credit sales		Amortization/write off on Intangible assets
Bad debts account	Dr	Amortization/ write off account		Dr
To Debtors (B/R, A/R) account		To Intangible assets account
(Being – bad debts on debtors)		(Being – intangible/fictitious assets write off)
Provision for bad debts		Advance income received		Dr
Provision for bad debts account	Dr	Income^{^} (by name) account
To Debtors (B/R, A/R) account		To Advance income^{^} account
(Being – provision for bad debts on debtors)		(Being – income received in advance)
Bad debts received which was written off		Expenses expired from advance
Cash/bank account	Dr	Expenses expired account		Dr
To Bad debt (recovered) account		To Advance expenses account
(Being – bad debts received from debtors)		(Being – expenses expired from advance)
Depreciation charged on assets		Goods lost by fire or theft
Depreciation account	Dr	Insurance claim account		Dr
To Assets (by name) account		Profit and loss account		Dr
(Being – depreciation charged on assets)		To Purchase account
		(Being – goods destroyed by fire)
Appreciation on assets		Closing stock
Assets (by name) account	Dr	Closing stock account		Dr
To Appreciation account		To Trading account
(Being – appreciation on assets)		(Being – closing stock recorded)
Expenses outstanding, payable or due		Proposed dividend
Expenses* (by name) account	Dr	P&L appropriation account	Dr
To Outstanding expenses* account		To Proposed dividend account
(Being – expenses due, payable, outstanding)		(Being – proposed dividend payable)
Prepaid/advance expenses paid		Provision for tax
Prepaid expenses^# account	Dr	P&L account	Dr
To Expenses^#		To Provision for tax account
(Being – expenses paid in advance)		(Being – tax payable)
Accrued income (income earned but not received)		Transfer to reserve and fund
Accrued Income⁺ account	Dr	P&L appropriation account	Dr
To Income⁺ account		To General/capital reserve
(Being – income earned but not received)		(Being – transferred to reserve and fund)

#####

PROBLEMS AND ANSWERS

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country

PROBLEM: 1

The trial balance of ABC Company Ltd as on 31^st December is given below:

Particulars	Amount Dr	Particulars	Amount Cr
Cash in hand	40,000	Share capital	3,00,000
Debtors	60,000	Revenue	8,00,000
Fixed assets	7,00,000	10% Bank loan	2,50,000
Office expenses	2,00,000	Creditors	50,000
Salaries	2,50,000
Other expenses	1,50,000
	14,00,000		14,00,000

Additional information:

a. Provide depreciation @ 10% p.a. on fixed assets

b. Salaries payable Rs 10,000

c. Prepaid office expenses Rs 15,000.

d. Closing stock valued Rs 80,000

Required: Journal entries for adjustment and worksheet

[Answer: Adjustment = Rs 2,00,000; Adjusted TB = Rs 15,15,000;

Net profit = Rs 1,90,000; Balance sheet = Rs 8,25,000]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country

PROBLEM: 2

The Trial Balance of A Company as on 31^st Dec 2019 is given below:

Particulars	Debit	Particulars	Credit
Cash balance	50,000	Share capital	5,00,000
Debtors	2,50,000	Sales	10,00,000
Fixed assets	10,00,000	Bank loan	2,50,000
Administrative expense	50,000	Creditors	1,50,000
Salaries paid	1,50,000
Purchase	4,00,000
	19,00,000		19,00,000

Additional information:

a. 10% depreciation is to be provided on fixes assets.

b. Administrative expenses payable Rs 20,000.

c. Bad debts Rs 10,000 and reserve for bad debt 5%.

Required: Journal entries for adjustments and worksheet

[Answer: Adjustment = Rs 1,42,000; Adjusted TB = Rs 19,20,000;

Net profit = Rs 2,58,000; Balance sheet = Rs 11,78,000]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country

PROBLEM: 3

The trial balance of XYZ Company Ltd as on 31^st December is given below:

Particulars	Dr Amount	Particulars	Cr Amount
Purchase	2,95,000	Share capital	2,50,000
Wages	20,000	Sales	4,00,000
Carriage	5,000	Creditors	50,000
Salary	30,000
Fixed assets	3,00,000
Debtors	40,000
Insurance	10,000
	7,00,000		7,00,000

Additional information:

a. Depreciation on fixes assets by 10%

b. Wages outstanding Rs 5,000

c. Insurance prepaid Rs 2,000

d. Bad debts Rs 3,000

Required: Journal entries for adjustments and worksheet

[Answer: Adjustment = Rs 40,000; Adjusted TB = Rs 7,05,000;

Net profit = Rs 4,000; Balance sheet = Rs 3,09,000]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country

PROBLEM: 4

The trial balance of KP Company Ltd as on 31^st December:

Particulars	Debit Rs	Particulars	Credit Rs
Machinery	1,50,000	Share capital	1,80,000
Debtors	50,000	Sales revenue	1,18,000
Loan to Madan	60,000	Creditors	14,500
Salaries	40,000	P&L appropriation account	12,000
Advertisement	10,000	Advance rent	6,000
Interim dividend	7,000
Prepaid insurance	6,000
Depreciation	7,500
	3,30,500		3,30,500

Additional information:

a. Prepaid insurance expired by Rs 3,000.

b. The entire amount of advance rent received is earned.

c. Proposed dividend 15%.

d. Discount on creditors Rs 500.

Required: Journal entries for adjustments and twelve column worksheet

[Answer: Adjustment = Rs 36,500; Adjusted TB = Rs 3,57,500;

Net profit = Rs 64,000; Surplus = 42,000;

Balance sheet = Rs 2,63,000]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country

PROBLEM: 5

QZ Company Ltd has following ledger balance on 31^st December:

Account balance	Amount	Account balance	Amount
Revenue (sales)	1,50,000	Wages	10,000
Debtors	50,000	Salaries	30,000
Land and building	2,50,000	Purchase	40,000
Advertisement	20,000	Insurance	5,000
Furniture	50,000	Cash	30,000
Commission (Cr)	5,000	Debentures	80,000
Creditors	50,000	Share capital	2,00,000

Additional information:

a. Depreciation on furniture 10%.

b. Proposed dividend on shares 10%.

c. Closing stock valued Rs 20,000.

d. Appreciation on land Rs 50,000.

Required: Journal entry and worksheet

[Answer: Adjustment = Rs 95,000; Adjusted TB = Rs 5,75,000;

Net profit = Rs 65,000; Surplus = Rs 95,000;

Balance sheet = Rs 4,45,000]

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#####

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country

PROBLEM: 6

QZ Company Ltd has the following trial balance on 31^st December:

Debit balance	Amount	Credit balance	Amount
Purchase	4,00,000	Sales	5,15,000
Fixed assets	2,00,000	Creditors	50,000
Debtors	1,00,000	P&L account	10,000
Salaries	142,000	Reserve fund	25,000
Cash	3,000	Share capital	2,50,000
Rent receivable	5,000
	8,50,000		8,50,000

Additional information:

a. Salary outstanding Rs 10,000.

b. Proposed dividend at 10%.

c. Appreciate fixed assets by Rs 20,000.

d. Goods lost by fire Rs 2,000.

Required: Journal entry and worksheet

[Answer: Adjustment = Rs 57,000; Adjusted TB = Rs 905,000;

Net loss = Rs 17,000; Deficit = Rs 32,000;

Balance sheet = Rs 360,000]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country

PROBLEM: 7

The trial balance of ABC Company Limited on 31^st March is given below:

Particulars	Debit Rs	Particulars	Credit Rs
Building	25,00,000	Sales	71,00,000
Equipment	5,00,000	Creditors	2,00,000
Debtors	4,00,000	House rent payable	10,000
Purchase	50,00,000	Share capital	20,00,000
Salary	11,00,000	P&L account	4,00,000
Goodwill	1,00,000	Provision for taxation last year	90,000
House rent	60,000
Tax paid of last year	40,000
Miscellaneous expenses	1,00,000
	98,00,000		98,00,000

Additional information:

a. Bad debts Rs 5,000

b. Proposed dividend at 10%

c. Depreciation on equipment at 10%.

d. Transfer to general reserve Rs 45,000.

e. Provision for taxation for the current year is Rs 145,000

Required: Journal entry for adjustment and worksheet

[Answer: Adjustment = Rs 3,00,000; Adjusted TB = Rs 1,00,45,000;

Net profit = Rs 6,40,000; Surplus = Rs 8,45,000;

Balance sheet = Rs 34,45,000]

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###########

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country

PROBLEM: 8

The trial balance of SVS Company Limited on 31^st December is given below:

Particulars	Debit Rs	Particulars	Credit Rs
Opening stock	40,000	Share capital	1,00,000
Purchase	2,00,000	Sales	3,00,000
Wages	20,000	P&L Appⁿ account	50,000
Salaries	30,000	Creditors	30,000
Rent	24,000	Sundry income	20,000
Cash	36,000
Debtors	50,000
Machinery	1,00,000
	5,00,000		5,00,000

Additional information:

a. Wages outstanding Rs 5,000.

b. Depreciation on machinery by 10%

c. Proposed dividend @ 10%

d. Closing stock was valued Rs 50,000.

e. Accrued income amounting Rs 2,300.

f. Discount on debtors 3% and creditor 2% omitted to record.

Required: Journal entry and worksheet

[Answer: Adjustment = Rs 75,000; Adjusted TB = Rs 567,300;

Net profit = Rs 42,200; Surplus = Rs 82,200; Balance sheet = Rs 226,800]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country

PROBLEM: 9

The trial balance of Metro Company Ltd as on 31^st December is given below:

Particulars	Amount Dr	Particulars	Amount Cr
Opening stock	40,000	Share capital	1,50,000
Purchase	1,80,000	Sales	3,50,000
Wages and salaries	70,000	General reserve	50,000
Interim dividend	5,000	Account payable	20,000
Rent	19,000	Commission	28,000
Cash and bank	36,000	Interest on investment	2,000
Account receivable	1,00,000
10% Investment	40,000
Calls in arrears	10,000
Fixed assets	1,00,000
	6,00,000		6,00,000

Additional information:

a. Outstanding rent Rs 1,000.

b. Create general reserve of Rs 8,000.

c. Commission includes Rs 5,000 received in advance.

d. Dividend proposed @ 10% share capital including interim dividend.

e. Transfer Rs 12,000 to sinking fund

f. Goods purchased on credit of Rs 20,000 ommited to record. .

Required: Journal entries for adjustments and worksheet

[Answer: Adjustment = Rs 57,000; Adjusted TB = Rs 652,000;

Net profit = Rs 47,000; Surplus = Rs 13,000; Balance sheet = Rs 288,000]

*Net dividend [Rs 150,000 – 10,000] @ 10% − 5,000 interim dividend] = Rs 9,000

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country

PROBLEM: 10

The trial balance of MJ Company Ltd as on 31^st December is given below:

Particulars .	Amount Dr	Particulars	Amount Cr
Purchase	2,95,000	Equity shares @ Rs 100	1,50,000
Purchase expenses	20,000	8% Preference shares @ Rs 100	1,00,000
Bad debts	5,000	Sales	4,00,000
Office expenses	30,000	Creditors	30,000
Equipment	2,00,000	Net profit last year	20,000
Land	1,00,000
Debtors	40,000
Insurance	10,000
	7,00,000		7,00,000

Additional information:

a. Depreciation on equipment 10% p.a.

b. Appreciation on land by Rs 30,000.

c. Office expenses to be paid Rs 5,000

d. Insurance includes Rs 2,000 paid in advance

e. Maintain bad debts Rs 4,000 and provision for doubtful debts 5%.

e. BOD proposed dividend Rs 6 per share

f. Provistion for tax is 25%

Required: Journal entries for adjustments and worksheet

[Answer: Adjustment = Rs 79,800; Adjusted TB = Rs 752,000;

Tax = 10,300; Net profit = Rs 30,900; Balance sheet = Rs 346,200]

*Tax (430,000 – 388,800) = 41,200 @ 25% = 10,300

*NP 41,200 @ 75% = 30,900

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country

PROBLEM: 11

The trial balance of XYZ Company Ltd as on 31^st December is given below:

Particulars .	Debit Rs	Particulars	Credit Rs
Purchase	1,95,000	Share capital	2,50,000
Direct expenses	20,000	Sales	3,50,000
Office expenses	70,000	5% Debentures	50,000
Selling expenses	25,000	Creditors	50,000
Fixed assets	1,50,000	Advance commission	10,000
8% Investment	1,00,000	Accumulated depreciation	60,000
Preliminary expenses	50,000
Debtors	1,40,000
Prepaid insurance	10,000
Tax paid last year	10,000
	7,70,000		7,70,000