Accounting Model Test Paper - 10 (Answers) | Mock Tests & Past Year Papers for CA Foundation PDF Download

 Page 1


ANSWERS OF MODEL TEST PAPER 10 
FOUNDATION COURSE 
PAPER – 1: ACCOUNTING 
1. (a) 1. False: The rule of nominal accounts states that all expenses and 
losses are recorded on debit side. 
2. False: Overhaul expenses are incurred to put second-hand 
machinery in working condition to derive endurable long-term 
advantage. So, it should be capitalized. 
3. True: The conservatism concept states that one shall not account 
for anticipated profits but shall provide all prospective losses. 
Valuing inventory at cost or net realisable value whichever is less, 
therefore is based on principle of conservatism. 
4. False: A promissory note should not be made payable to the 
bearer. The payee must be to a certain person. 
5. False: It depicts the cash system of accounting rather than the 
accrual system, as the cash receipts and payments pertaining to 
any year are entered in the Receipts and payments account. The 
principle of accrual is not followed with regard to the receipts and 
payments account of a non-profit organization. 
6. False: Legal heirs of a deceased partner are entitled to all the dues 
of deceased partner. 
(b) The difference between Book keeping and Accounting are as follows: 
S. 
No. 
Book-keeping Accounting 
1. It is a process concerned 
with recording of 
transactions. 
It is a process concerned with 
summarising of the recorded 
transactions. 
2. It constitutes as a base for 
accounting. 
It is considered as a language of 
the business. 
3. Financial statements do not 
form part of this process. 
Financial statements are 
prepared in this process on the 
basis of book-keeping records. 
4. Managerial decisions 
cannot be taken with the 
help of these records. 
Management takes decisions on 
the basis of these records. 
5. There is no sub-field of 
book keeping. 
It has several sub-fields like 
financial accounting, 
management accounting etc. 
6. Financial position of the 
business cannot be 
ascertained through book-
keeping records. 
Financial position of the business 
is ascertained on the basis of the 
accounting reports. 
  
618
Page 2


ANSWERS OF MODEL TEST PAPER 10 
FOUNDATION COURSE 
PAPER – 1: ACCOUNTING 
1. (a) 1. False: The rule of nominal accounts states that all expenses and 
losses are recorded on debit side. 
2. False: Overhaul expenses are incurred to put second-hand 
machinery in working condition to derive endurable long-term 
advantage. So, it should be capitalized. 
3. True: The conservatism concept states that one shall not account 
for anticipated profits but shall provide all prospective losses. 
Valuing inventory at cost or net realisable value whichever is less, 
therefore is based on principle of conservatism. 
4. False: A promissory note should not be made payable to the 
bearer. The payee must be to a certain person. 
5. False: It depicts the cash system of accounting rather than the 
accrual system, as the cash receipts and payments pertaining to 
any year are entered in the Receipts and payments account. The 
principle of accrual is not followed with regard to the receipts and 
payments account of a non-profit organization. 
6. False: Legal heirs of a deceased partner are entitled to all the dues 
of deceased partner. 
(b) The difference between Book keeping and Accounting are as follows: 
S. 
No. 
Book-keeping Accounting 
1. It is a process concerned 
with recording of 
transactions. 
It is a process concerned with 
summarising of the recorded 
transactions. 
2. It constitutes as a base for 
accounting. 
It is considered as a language of 
the business. 
3. Financial statements do not 
form part of this process. 
Financial statements are 
prepared in this process on the 
basis of book-keeping records. 
4. Managerial decisions 
cannot be taken with the 
help of these records. 
Management takes decisions on 
the basis of these records. 
5. There is no sub-field of 
book keeping. 
It has several sub-fields like 
financial accounting, 
management accounting etc. 
6. Financial position of the 
business cannot be 
ascertained through book-
keeping records. 
Financial position of the business 
is ascertained on the basis of the 
accounting reports. 
  
618
(c)        Journal 
 Particulars  L.F. Dr. 
` 
Cr. 
` 
(1) Sales A/c Dr.  500  
 Sales Returns A/c Dr.  500  
  To Suspense A/c    1,000 
 (Being the value of goods returned by 
Mr. A wrongly posted to Sales and 
omission of debit to Sales Returns 
Account, now rectified) 
    
(2) Suspense A/c Dr.  500  
  To Mr. R     500 
 (Being wrong debit to Mr. R for goods 
returned by him, now rectified) 
    
(3) Mr. Q  Dr.  700  
  To Mr. S     70 
  To Suspense A/c    630 
 (Being omission of debit to Mr. Q and 
wrong credit to Mr. S for sale of ` 700, 
now rectified)  
    
(4) Discount A/c Dr.  350  
  To Suspense A/c    350 
 (Being the total of Discount allowed 
during September not posted from the 
Cash Book; error now rectified) 
    
2. (a) Bank Reconciliation Statement of Mr. Hari as on 31st Dec., 2023 
Particulars Details 
`  
Amount  
`  
Balance as per the Cash Book  1,36,800 
Add:  Cheques issued but not presented for 
payment 
36,000  
 Dividends directly collected by bank but 
not yet entered in the Cash Book 
18,000  
 Cheque recorded with wrong amount in 
the Cash Book 
90  
 Cheque directly deposited but not 
recorded in the cash book 
        Amount received from slae of scrap not 
recorded in cash book 
1,53,600 
 
1,000 
 
 
2,08,690 
  3,45,490 
Less: Cheques deposited but not cleared till 31
st
 
dec 
55,000  
 Mediclaim paid by the bank directly not 
yet recorded in the Cash Book 
 
14,160 
 
 
619
Page 3


ANSWERS OF MODEL TEST PAPER 10 
FOUNDATION COURSE 
PAPER – 1: ACCOUNTING 
1. (a) 1. False: The rule of nominal accounts states that all expenses and 
losses are recorded on debit side. 
2. False: Overhaul expenses are incurred to put second-hand 
machinery in working condition to derive endurable long-term 
advantage. So, it should be capitalized. 
3. True: The conservatism concept states that one shall not account 
for anticipated profits but shall provide all prospective losses. 
Valuing inventory at cost or net realisable value whichever is less, 
therefore is based on principle of conservatism. 
4. False: A promissory note should not be made payable to the 
bearer. The payee must be to a certain person. 
5. False: It depicts the cash system of accounting rather than the 
accrual system, as the cash receipts and payments pertaining to 
any year are entered in the Receipts and payments account. The 
principle of accrual is not followed with regard to the receipts and 
payments account of a non-profit organization. 
6. False: Legal heirs of a deceased partner are entitled to all the dues 
of deceased partner. 
(b) The difference between Book keeping and Accounting are as follows: 
S. 
No. 
Book-keeping Accounting 
1. It is a process concerned 
with recording of 
transactions. 
It is a process concerned with 
summarising of the recorded 
transactions. 
2. It constitutes as a base for 
accounting. 
It is considered as a language of 
the business. 
3. Financial statements do not 
form part of this process. 
Financial statements are 
prepared in this process on the 
basis of book-keeping records. 
4. Managerial decisions 
cannot be taken with the 
help of these records. 
Management takes decisions on 
the basis of these records. 
5. There is no sub-field of 
book keeping. 
It has several sub-fields like 
financial accounting, 
management accounting etc. 
6. Financial position of the 
business cannot be 
ascertained through book-
keeping records. 
Financial position of the business 
is ascertained on the basis of the 
accounting reports. 
  
618
(c)        Journal 
 Particulars  L.F. Dr. 
` 
Cr. 
` 
(1) Sales A/c Dr.  500  
 Sales Returns A/c Dr.  500  
  To Suspense A/c    1,000 
 (Being the value of goods returned by 
Mr. A wrongly posted to Sales and 
omission of debit to Sales Returns 
Account, now rectified) 
    
(2) Suspense A/c Dr.  500  
  To Mr. R     500 
 (Being wrong debit to Mr. R for goods 
returned by him, now rectified) 
    
(3) Mr. Q  Dr.  700  
  To Mr. S     70 
  To Suspense A/c    630 
 (Being omission of debit to Mr. Q and 
wrong credit to Mr. S for sale of ` 700, 
now rectified)  
    
(4) Discount A/c Dr.  350  
  To Suspense A/c    350 
 (Being the total of Discount allowed 
during September not posted from the 
Cash Book; error now rectified) 
    
2. (a) Bank Reconciliation Statement of Mr. Hari as on 31st Dec., 2023 
Particulars Details 
`  
Amount  
`  
Balance as per the Cash Book  1,36,800 
Add:  Cheques issued but not presented for 
payment 
36,000  
 Dividends directly collected by bank but 
not yet entered in the Cash Book 
18,000  
 Cheque recorded with wrong amount in 
the Cash Book 
90  
 Cheque directly deposited but not 
recorded in the cash book 
        Amount received from slae of scrap not 
recorded in cash book 
1,53,600 
 
1,000 
 
 
2,08,690 
  3,45,490 
Less: Cheques deposited but not cleared till 31
st
 
dec 
55,000  
 Mediclaim paid by the bank directly not 
yet recorded in the Cash Book 
 
14,160 
 
 
619
 Bank charges not recorded in cash book 150 (69,310) 
 Balance as per the Pass Book  2,76,180 
 Alternatively, the question can also be solved by preparing adjusted cash 
book as shown below: 
Cash Book (Bank Column) 
Particulars Amount 
(`) 
Particulars Amount 
(`) 
To  Balance b/d 
To Amount received from 
sale of scrap 
To dividends collected by 
bank 
To cheques recorded with 
wrong amount 
To cheque directly 
deposited not recorded 
1,36,800 
1,000 
 
18,000 
 
90 
 
1,53,600 
By  Bank charges 
By  Mediclaim 
By  balance c/d 
150 
14,160 
2,95,180 
 3,09,490  3,09,490 
Bank Reconciliation Statement of Mr. Hari as on 31st Dec., 2023 
Particulars `  
Balance as per the Cash Book (corrected)  2,95,180 
Add:  Cheques issued but not yet presented 
Less: Cheques deposited but not cleared 
36,000 
 (55,000) 
Balance as per the Pass Book 2,76,180 
(b)       In the books of Sejal 
Journal Entries 
Date Particulars  DR.  
(in `) 
CR.  
(in `) 
1/1/2023  Harry  Dr. 60,000  
  To Bills payable A/c   60,000 
 (Being bill of exchange 
accepted and sent to Mr. 
Harry) 
   
1/1/2023 Bank A/c                                          Dr. 14,000  
 Discount charges A/c                      Dr. 1,000  
  To Harry                            15,000 
 (Being the amount received 
from Harry on account of the 
bills receivable) 
   
4/4/2023 Bills receivable A/c Dr. 80,000  
  To Harry    80,000 
620
Page 4


ANSWERS OF MODEL TEST PAPER 10 
FOUNDATION COURSE 
PAPER – 1: ACCOUNTING 
1. (a) 1. False: The rule of nominal accounts states that all expenses and 
losses are recorded on debit side. 
2. False: Overhaul expenses are incurred to put second-hand 
machinery in working condition to derive endurable long-term 
advantage. So, it should be capitalized. 
3. True: The conservatism concept states that one shall not account 
for anticipated profits but shall provide all prospective losses. 
Valuing inventory at cost or net realisable value whichever is less, 
therefore is based on principle of conservatism. 
4. False: A promissory note should not be made payable to the 
bearer. The payee must be to a certain person. 
5. False: It depicts the cash system of accounting rather than the 
accrual system, as the cash receipts and payments pertaining to 
any year are entered in the Receipts and payments account. The 
principle of accrual is not followed with regard to the receipts and 
payments account of a non-profit organization. 
6. False: Legal heirs of a deceased partner are entitled to all the dues 
of deceased partner. 
(b) The difference between Book keeping and Accounting are as follows: 
S. 
No. 
Book-keeping Accounting 
1. It is a process concerned 
with recording of 
transactions. 
It is a process concerned with 
summarising of the recorded 
transactions. 
2. It constitutes as a base for 
accounting. 
It is considered as a language of 
the business. 
3. Financial statements do not 
form part of this process. 
Financial statements are 
prepared in this process on the 
basis of book-keeping records. 
4. Managerial decisions 
cannot be taken with the 
help of these records. 
Management takes decisions on 
the basis of these records. 
5. There is no sub-field of 
book keeping. 
It has several sub-fields like 
financial accounting, 
management accounting etc. 
6. Financial position of the 
business cannot be 
ascertained through book-
keeping records. 
Financial position of the business 
is ascertained on the basis of the 
accounting reports. 
  
618
(c)        Journal 
 Particulars  L.F. Dr. 
` 
Cr. 
` 
(1) Sales A/c Dr.  500  
 Sales Returns A/c Dr.  500  
  To Suspense A/c    1,000 
 (Being the value of goods returned by 
Mr. A wrongly posted to Sales and 
omission of debit to Sales Returns 
Account, now rectified) 
    
(2) Suspense A/c Dr.  500  
  To Mr. R     500 
 (Being wrong debit to Mr. R for goods 
returned by him, now rectified) 
    
(3) Mr. Q  Dr.  700  
  To Mr. S     70 
  To Suspense A/c    630 
 (Being omission of debit to Mr. Q and 
wrong credit to Mr. S for sale of ` 700, 
now rectified)  
    
(4) Discount A/c Dr.  350  
  To Suspense A/c    350 
 (Being the total of Discount allowed 
during September not posted from the 
Cash Book; error now rectified) 
    
2. (a) Bank Reconciliation Statement of Mr. Hari as on 31st Dec., 2023 
Particulars Details 
`  
Amount  
`  
Balance as per the Cash Book  1,36,800 
Add:  Cheques issued but not presented for 
payment 
36,000  
 Dividends directly collected by bank but 
not yet entered in the Cash Book 
18,000  
 Cheque recorded with wrong amount in 
the Cash Book 
90  
 Cheque directly deposited but not 
recorded in the cash book 
        Amount received from slae of scrap not 
recorded in cash book 
1,53,600 
 
1,000 
 
 
2,08,690 
  3,45,490 
Less: Cheques deposited but not cleared till 31
st
 
dec 
55,000  
 Mediclaim paid by the bank directly not 
yet recorded in the Cash Book 
 
14,160 
 
 
619
 Bank charges not recorded in cash book 150 (69,310) 
 Balance as per the Pass Book  2,76,180 
 Alternatively, the question can also be solved by preparing adjusted cash 
book as shown below: 
Cash Book (Bank Column) 
Particulars Amount 
(`) 
Particulars Amount 
(`) 
To  Balance b/d 
To Amount received from 
sale of scrap 
To dividends collected by 
bank 
To cheques recorded with 
wrong amount 
To cheque directly 
deposited not recorded 
1,36,800 
1,000 
 
18,000 
 
90 
 
1,53,600 
By  Bank charges 
By  Mediclaim 
By  balance c/d 
150 
14,160 
2,95,180 
 3,09,490  3,09,490 
Bank Reconciliation Statement of Mr. Hari as on 31st Dec., 2023 
Particulars `  
Balance as per the Cash Book (corrected)  2,95,180 
Add:  Cheques issued but not yet presented 
Less: Cheques deposited but not cleared 
36,000 
 (55,000) 
Balance as per the Pass Book 2,76,180 
(b)       In the books of Sejal 
Journal Entries 
Date Particulars  DR.  
(in `) 
CR.  
(in `) 
1/1/2023  Harry  Dr. 60,000  
  To Bills payable A/c   60,000 
 (Being bill of exchange 
accepted and sent to Mr. 
Harry) 
   
1/1/2023 Bank A/c                                          Dr. 14,000  
 Discount charges A/c                      Dr. 1,000  
  To Harry                            15,000 
 (Being the amount received 
from Harry on account of the 
bills receivable) 
   
4/4/2023 Bills receivable A/c Dr. 80,000  
  To Harry    80,000 
620
(Being the bills accepted by 
Harry) 
4/4/2023 Bank A/c Dr. 74,600  
 Discount charges A/c Dr. 5,400  
  To Bills receivable A/c 
(Being Harry acceptance 
discounted with bank) 
  80,000 
4/4/2023 Bills payable A/c Dr. 60,000  
       To Bank A/c 
(Being the amount met on the 
due date) 
  60,000 
4/4/2023 Harry  Dr. 15,000  
  To Bank A/c   10,950 
  To Discount A/c  
{(5,400/80,000) x 60,000} 
  4,050 
 (Being the amount paid and 
the discount debited to Harry) 
   
7/7/2023 Harry  Dr. 80,000  
  To Bank A/c   80,000 
 (Being Harry’s acceptance 
discounted with bank 
dishonoured due to Harry’s 
bankruptcy) 
   
7/7/2023 Bank A/c                                                                                           Dr. 24,000  
 Bad debts A/c                                                                                    Dr. 36,000  
  To Harry    60,000 
 (The amount received from Harry 
and the balance being written off as 
debt) 
  
Harry ‘s A/c 
Particulars `   Particulars `   
To Bills Payable A/c 
To Bank A/c 
To Discount A/c 
60,000 
10,950 
4,050 
By Bank A/c 
By Discount A/c 
By Bills Receivable 
14,000 
1,000 
80,000 
To Bank A/c 80,000 By Bank A/c 
By Bad Debts 
24,000 
36,000 
 1,55,000  1,55,000 
 
  
621
Page 5


ANSWERS OF MODEL TEST PAPER 10 
FOUNDATION COURSE 
PAPER – 1: ACCOUNTING 
1. (a) 1. False: The rule of nominal accounts states that all expenses and 
losses are recorded on debit side. 
2. False: Overhaul expenses are incurred to put second-hand 
machinery in working condition to derive endurable long-term 
advantage. So, it should be capitalized. 
3. True: The conservatism concept states that one shall not account 
for anticipated profits but shall provide all prospective losses. 
Valuing inventory at cost or net realisable value whichever is less, 
therefore is based on principle of conservatism. 
4. False: A promissory note should not be made payable to the 
bearer. The payee must be to a certain person. 
5. False: It depicts the cash system of accounting rather than the 
accrual system, as the cash receipts and payments pertaining to 
any year are entered in the Receipts and payments account. The 
principle of accrual is not followed with regard to the receipts and 
payments account of a non-profit organization. 
6. False: Legal heirs of a deceased partner are entitled to all the dues 
of deceased partner. 
(b) The difference between Book keeping and Accounting are as follows: 
S. 
No. 
Book-keeping Accounting 
1. It is a process concerned 
with recording of 
transactions. 
It is a process concerned with 
summarising of the recorded 
transactions. 
2. It constitutes as a base for 
accounting. 
It is considered as a language of 
the business. 
3. Financial statements do not 
form part of this process. 
Financial statements are 
prepared in this process on the 
basis of book-keeping records. 
4. Managerial decisions 
cannot be taken with the 
help of these records. 
Management takes decisions on 
the basis of these records. 
5. There is no sub-field of 
book keeping. 
It has several sub-fields like 
financial accounting, 
management accounting etc. 
6. Financial position of the 
business cannot be 
ascertained through book-
keeping records. 
Financial position of the business 
is ascertained on the basis of the 
accounting reports. 
  
618
(c)        Journal 
 Particulars  L.F. Dr. 
` 
Cr. 
` 
(1) Sales A/c Dr.  500  
 Sales Returns A/c Dr.  500  
  To Suspense A/c    1,000 
 (Being the value of goods returned by 
Mr. A wrongly posted to Sales and 
omission of debit to Sales Returns 
Account, now rectified) 
    
(2) Suspense A/c Dr.  500  
  To Mr. R     500 
 (Being wrong debit to Mr. R for goods 
returned by him, now rectified) 
    
(3) Mr. Q  Dr.  700  
  To Mr. S     70 
  To Suspense A/c    630 
 (Being omission of debit to Mr. Q and 
wrong credit to Mr. S for sale of ` 700, 
now rectified)  
    
(4) Discount A/c Dr.  350  
  To Suspense A/c    350 
 (Being the total of Discount allowed 
during September not posted from the 
Cash Book; error now rectified) 
    
2. (a) Bank Reconciliation Statement of Mr. Hari as on 31st Dec., 2023 
Particulars Details 
`  
Amount  
`  
Balance as per the Cash Book  1,36,800 
Add:  Cheques issued but not presented for 
payment 
36,000  
 Dividends directly collected by bank but 
not yet entered in the Cash Book 
18,000  
 Cheque recorded with wrong amount in 
the Cash Book 
90  
 Cheque directly deposited but not 
recorded in the cash book 
        Amount received from slae of scrap not 
recorded in cash book 
1,53,600 
 
1,000 
 
 
2,08,690 
  3,45,490 
Less: Cheques deposited but not cleared till 31
st
 
dec 
55,000  
 Mediclaim paid by the bank directly not 
yet recorded in the Cash Book 
 
14,160 
 
 
619
 Bank charges not recorded in cash book 150 (69,310) 
 Balance as per the Pass Book  2,76,180 
 Alternatively, the question can also be solved by preparing adjusted cash 
book as shown below: 
Cash Book (Bank Column) 
Particulars Amount 
(`) 
Particulars Amount 
(`) 
To  Balance b/d 
To Amount received from 
sale of scrap 
To dividends collected by 
bank 
To cheques recorded with 
wrong amount 
To cheque directly 
deposited not recorded 
1,36,800 
1,000 
 
18,000 
 
90 
 
1,53,600 
By  Bank charges 
By  Mediclaim 
By  balance c/d 
150 
14,160 
2,95,180 
 3,09,490  3,09,490 
Bank Reconciliation Statement of Mr. Hari as on 31st Dec., 2023 
Particulars `  
Balance as per the Cash Book (corrected)  2,95,180 
Add:  Cheques issued but not yet presented 
Less: Cheques deposited but not cleared 
36,000 
 (55,000) 
Balance as per the Pass Book 2,76,180 
(b)       In the books of Sejal 
Journal Entries 
Date Particulars  DR.  
(in `) 
CR.  
(in `) 
1/1/2023  Harry  Dr. 60,000  
  To Bills payable A/c   60,000 
 (Being bill of exchange 
accepted and sent to Mr. 
Harry) 
   
1/1/2023 Bank A/c                                          Dr. 14,000  
 Discount charges A/c                      Dr. 1,000  
  To Harry                            15,000 
 (Being the amount received 
from Harry on account of the 
bills receivable) 
   
4/4/2023 Bills receivable A/c Dr. 80,000  
  To Harry    80,000 
620
(Being the bills accepted by 
Harry) 
4/4/2023 Bank A/c Dr. 74,600  
 Discount charges A/c Dr. 5,400  
  To Bills receivable A/c 
(Being Harry acceptance 
discounted with bank) 
  80,000 
4/4/2023 Bills payable A/c Dr. 60,000  
       To Bank A/c 
(Being the amount met on the 
due date) 
  60,000 
4/4/2023 Harry  Dr. 15,000  
  To Bank A/c   10,950 
  To Discount A/c  
{(5,400/80,000) x 60,000} 
  4,050 
 (Being the amount paid and 
the discount debited to Harry) 
   
7/7/2023 Harry  Dr. 80,000  
  To Bank A/c   80,000 
 (Being Harry’s acceptance 
discounted with bank 
dishonoured due to Harry’s 
bankruptcy) 
   
7/7/2023 Bank A/c                                                                                           Dr. 24,000  
 Bad debts A/c                                                                                    Dr. 36,000  
  To Harry    60,000 
 (The amount received from Harry 
and the balance being written off as 
debt) 
  
Harry ‘s A/c 
Particulars `   Particulars `   
To Bills Payable A/c 
To Bank A/c 
To Discount A/c 
60,000 
10,950 
4,050 
By Bank A/c 
By Discount A/c 
By Bills Receivable 
14,000 
1,000 
80,000 
To Bank A/c 80,000 By Bank A/c 
By Bad Debts 
24,000 
36,000 
 1,55,000  1,55,000 
 
  
621
3. (a)        Trading Account for the year ended 31
st
 March, 2024 
Particulars Details Amount 
` 
Particulars Details Amount 
` 
To opening Stock  4,80,000 By Sales 48,00,000  
To Purchases 21,35,000  Less: Returns  
 Inwards  
93,000 47,07,000 
Less: Plant and  
 Machinery  
 included in 
 purchases 
3,00,000  By Closing 
Stock 
 5,20,000 
Less:  Returns 
  Outward 
55,000  
17,80,000 
   
To wages 
To Factory rent  
 
8,000 
15,00,000    
Add: outstanding 3,000     11,000    
To Gross Profit 
        c/d 
 14,56,000    
  52,27,000   52,27,000 
Profit and Loss Account for the year ended 31st March, 2024 
Particular Amount 
` 
Particular Amount 
` 
To Salaries 
To Advertisements 
To Insurance 
1,40,000 
60,000 
63,000 
By Gross profit b/d 
By Discount Received 
14,56,000 
 
37,000 
To General expenses 10,000   
To Discount Allowed 
To provision for doubtful debts 
(W.N.1) 
To Provision for discount on 
debtors (W.N.2) 
65,000 
   37,000 
 
8,400 
  
To Depreciation (W.N. 3) 93,300   
To Net Profit transferred to Capital 
a/c 
10,16,300   
 14,93,000  14,93,000 
Balance Sheet as at 31st March, 2024 
Liabilities Details Amount 
` 
Assets Details Amount 
` 
Capital 4,000,00  Plant and Machinery 
Add: Additions 
5,00,000 
3,00,000 
 
Add: Net Profit 10,16,300  Less: Dep. (W.N.3) (80,000) 7,20,000 
Less: Drawings (70,000) 13,46,300    
   Office furniture 26,000  
Bills Payable     56,000 Less: Dep. (W.N. 3) (1,300) 24,700 
Sundry 
Creditors 
 5,20,000    
622