Assignments for plus one students

Illustration 1. Enter the following transactions in the book of John, post them into the respective 'T' accounts.
2007
March 1 Started business by  introducing Capital in Cash Rs.2,40,000
March 2 Opened bank account with ICICI Bank Rs.1,00,000
March 3 Purchased  computer for office Rs.  40,000
March 4 Purchased office furniture Rs.  20,000
March 5 Purchased goods Rs.   50,000
March 7 Purchased goods of list price Rs. 20,000 at 10% trade Discount.
March 15 Sold Goods for Cash Rs.  30,000
March 18 Sold goods of the list price of Rs. 15,000 at 5% trade discount.
March 25 Paid wages Rs.    1,000
March 26 Sold goods Rs.    2,000
March 29 Sold goods Rs.    5,000
March 31 Paid- Rent Rs.    5,000
March 31 Salary Rs.    5,000
March 31 Withdrew Cash for office use Rs.    7,000


IIlustration 1. Journalise the following transactions in the books of Subash and post into respective 'T' accounts:
 2007
April 1. Started business with Cash Rs. 7,00,000, Furniture worth Rs. 1,00,000 and Machinery
             worth Rs. 2,00,000.
”   2. Deposited Rs. 3,00,000 in bank.
”   3. Purchased goods from Vikram for Rs. 15,000 and from Sharma for Rs. 7,500.
”   4. Goods returned to Sharma worth Rs. 1000 since the same were not as per the sample.
”   5. Sold goods for cash worth Rs. 8,000.
”   6. Sold goods to Kiran worth Rs. 8,900.
”   7. Damanged goods returned by Kiran worth Rs. 900.
”   8. Purchased goods at list price for Rs. 18,000 from Rao at a trade discount of 10%.
”   9. Sold goods at list price of Rs. 6,000 to Sunil at a trade discount of 5%.
”   10. Received Rs. 6,000 from Kiran on account.
”   11. Paid to Vikram by cheque Rs. 14,900 and he allowed discount of Rs. 100.
‘   12. Paid to Sharma Rs. 6450 in full settlement of his account.
”   13. Paid for repair of furniture Rs. 700.
”   14. Paid for insurance of machinery Rs.1,000.
”   15. Sold goods for Cash worth Rs. 3,400.
”   16. Purchased goods from Hari for Rs. 13,500.
”   17. Received from Sunil the full amount due to him.
”   19. Paid wages Rs. 3,400.
”   20. Withdrew cash for personal use Rs. 5,000.
”   21. Depisited cash into bank Rs. 1,50,000.
”   22. Paid to Hari Rs. 10,000 on account.
”   23. Paid for petty expenses Rs. 200.
”   24. Paid trade expenses of Rs. 800.
”   25. Paid commission Rs. 1,200.
”   26. Withdrew goods of the cost price of Rs. 900 for personal use.
”   27. Withdrew cash from bank Rs. 5,000.
”   28. Purchased goods for cash Rs. 17,000.
”   29. Sold goods for cash Rs. 13,500.
”   30. Paid rent of Rs. 10,000 and salary, Rs. 28,000.

Accounting Cycle

Accounting Cycle

First year students can make use of this Accounting cycle to gain a clear idea about accounting

Commerce Club 2012 of our school celebrated onam festival by distributing 'PAYASAM'  to all students of commerce. The function was inaugurated by Sri. G. Vincent, Principal , PTA Vice President Sri.Balan, PTA member - Sivaraman also attended the function.Teachers of commerce, 2nd year students and 1st year students were present in the function.

PARTNERSHIP - Basic Concept- Home work

1.   From the following information given below compute the value of goodwill at 3 years purchase of 5 years       average profits

Year:             1999            2000              2001                2002               2003

Profit (Rs)   20,000        21,000           22,000              25,000            30,000

2.  Calculate the value of goodwill  as on 1st january, 2005 on the basis of three years purchases of the average       
     profits of the last five years profits. The profits and losses for the years were:


Year  :        2000                2001             2002               2003           2004


Profit :      40,000(Loss)    92,000          55,000            70,000          90,000




3.  The profit of a firm for the last 5 years ending 31st March were as follows:
      
     Year :       2000         2001          2002                    2003                 2004
    Profits:           12,000     15,000        25,000              30,000              23,000


Calculate the value of goodwill on the basis of 3 years purchase of weighted average  profits. The appropriate weight for the last 5 years were 1,2,3,4 and 5 respectively.




4. Profits of the firm for the last 5 years were:


Year:        2004          2003          2002                    2001                    2000
Profit:     30,000         28,000       25,000                  24,000                18,000


The capital employed in the firm is Rs.4,00,000. You are required to compute the value of goodwill at 2 years purchase of super profit, assuming that the normal rate of return on capital employed is 5%.




5. A firm has mad an average profit of Rs.30,000 during the past few years. The normal rate of return in similar type of business is 15%. The firm has a net tangible asset of Rs. 1,60,000. Find out the value of goodwill by capitalisation method.

6. The following relate to the profit made by a firm for the last four years.

Year :          2000                2001                    2002                2003
Profit :            20,000             30,000               60,000             90,000


The capital employed by the firm is Rs.5,00,000 and normal rate of return is 8%. Calculate goodwill of the firm under capitalization of super profit method.




7. Aneesh is a partner in a firm and his withdrawals for the year ended 31st december 2002 are as follows:
                          January 31   -   3,600
                          March 31     -     2,400
                          June 30       -   4,800
                          August 31   -    1,200
                          October 30  -    6,000

Charge interest on drawings at the rate of 5% per annum using product method.