M/s. Applied Laboratories were unable to agree the Trial Balance as on 31st March, 2020 and...

Transcribed Image Text:

M/s. Applied Laboratories were unable to agree the Trial Balance as on 31st March, 2020 and have raised a suspense account for the difference. Next year the following errors were discovered: (i) Repairs made during the year were wrongly debited to the building A/c - 12,500. (ii) The addition of the 'Freight' column in the purchase journal was short by 1,500. (iii) Goods to the value of 1,050 returned by a customer, Rani & Co., had been posted to the debit of Rani & Co. and also to sales returns. (iv) Sundry items of furniture sold for 30,000 had been entered in the sales book, the total of which had been posted to sales account. (v) A bill of exchange (received from Raja & Co.) for 20,000 had been returned by the bank as dishonoured and had been credited to the bank and debited to bills receivable account. You are required to pass journal entries to rectify the above mistakes. The Institute of Chartered Accountants of India (b) Max & Co. employs a team of 9 worker who were paid ₹ 40,000 per month each in the year ending 31st December, 2018. At the start of 2019, the company raised salaries by 10% to ₹ 44,000 per month each. On 1st July, 2019 the company hired 2 trainees at salary of 21,000 per month each. The work force are paid salary on the first working day of every month, one month in arrears, so that the employees receive their salary for January on the first working day of February, etc. Particulars You are required to calculate : (i) Amount of salaries which would be charged to the profit and loss for the year ended 31st December, 2019. (ii) Amount actually paid as salaries during 2019. (iii) Outstanding salaries as on 31st December, 2019. To Opening Stock A/c To Creditors A/c (c) Following are the Manufacturing A/c, Creditors A/c and Trading A/c provided by M/s. Shivam related to financial year 2019-20. There are certain figures missing from these accounts. Raw Material A/c. Particulars To Bank A/c FYZ To Balance c/d Particulars © The Institute of Chartered Accountants of India To Raw Material A/c. To Wages To Depreciation To Direct Expenses Additional Information : (13) FYZ Creditors A/c. (12) FYZ Amount Amount Manufacturing A/c. Paid to labour at office 1,27,000 By Raw Materials Consumed 3,65,000 2,15,000 2,49,000 Amount FYZ 23,50,000 By Balance b/d 6,60,000 FYZ (ii) Wages include the following: Paid to factory workers 3,15,000 50,000 Particulars By Closing Stock Particulars The Institute of Chartered Accountants of India Particulars (14) FYZ By Trading A/c. 17,44,000 (i) Purchase of machinery worth 12,00,000 on 1st April, 2019 has been omitted. Machinery are chargeable at a depreciation rate of 15%. (iii) Direct expenses including following: Sin Electricity charges P.T.O. Amount Amount - 15,70,000 Amount 5 P.T.O. 80,000 of which 25% pertained to office Marks Fuel charges - 25,000 Freight inwards - 32,000 Delivery charges to customers 22,000 You are required to prepare revised Manufacturing A/c and Raw Material A/c. Mar 10 Mar M/s. Applied Laboratories were unable to agree the Trial Balance as on 31st March, 2020 and have raised a suspense account for the difference. Next year the following errors were discovered: (i) Repairs made during the year were wrongly debited to the building A/c - 12,500. (ii) The addition of the 'Freight' column in the purchase journal was short by 1,500. (iii) Goods to the value of 1,050 returned by a customer, Rani & Co., had been posted to the debit of Rani & Co. and also to sales returns. (iv) Sundry items of furniture sold for 30,000 had been entered in the sales book, the total of which had been posted to sales account. (v) A bill of exchange (received from Raja & Co.) for 20,000 had been returned by the bank as dishonoured and had been credited to the bank and debited to bills receivable account. You are required to pass journal entries to rectify the above mistakes. The Institute of Chartered Accountants of India (b) Max & Co. employs a team of 9 worker who were paid ₹ 40,000 per month each in the year ending 31st December, 2018. At the start of 2019, the company raised salaries by 10% to ₹ 44,000 per month each. On 1st July, 2019 the company hired 2 trainees at salary of 21,000 per month each. The work force are paid salary on the first working day of every month, one month in arrears, so that the employees receive their salary for January on the first working day of February, etc. Particulars You are required to calculate : (i) Amount of salaries which would be charged to the profit and loss for the year ended 31st December, 2019. (ii) Amount actually paid as salaries during 2019. (iii) Outstanding salaries as on 31st December, 2019. To Opening Stock A/c To Creditors A/c (c) Following are the Manufacturing A/c, Creditors A/c and Trading A/c provided by M/s. Shivam related to financial year 2019-20. There are certain figures missing from these accounts. Raw Material A/c. Particulars To Bank A/c FYZ To Balance c/d Particulars © The Institute of Chartered Accountants of India To Raw Material A/c. To Wages To Depreciation To Direct Expenses Additional Information : (13) FYZ Creditors A/c. (12) FYZ Amount Amount Manufacturing A/c. Paid to labour at office 1,27,000 By Raw Materials Consumed 3,65,000 2,15,000 2,49,000 Amount FYZ 23,50,000 By Balance b/d 6,60,000 FYZ (ii) Wages include the following: Paid to factory workers 3,15,000 50,000 Particulars By Closing Stock Particulars The Institute of Chartered Accountants of India Particulars (14) FYZ By Trading A/c. 17,44,000 (i) Purchase of machinery worth 12,00,000 on 1st April, 2019 has been omitted. Machinery are chargeable at a depreciation rate of 15%. (iii) Direct expenses including following: Sin Electricity charges P.T.O. Amount Amount - 15,70,000 Amount 5 P.T.O. 80,000 of which 25% pertained to office Marks Fuel charges - 25,000 Freight inwards - 32,000 Delivery charges to customers 22,000 You are required to prepare revised Manufacturing A/c and Raw Material A/c. Mar 10 Mar