Financial Accounting Practice Problems and Solutions pdf: Download Financial Accounting Practice Problems and Solutions for exam. Aspirants who have applied for CA , IPCC, B.com, Bachelor of Bussiness Administration exams can find Financial Accounting Practice Problems and Solutions here. Go through the given attachments provided below to download Practice Problems for Financial Accounting . These question papers helps us to alert a candidate of the complete structure of the exam. Practice Problems along with previous year question papers is one of the basic, way of use. Check several model question papers for preparation must be useful for you.
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Financial Accounting Practice Problems and Solutions pdf
The Candidates who are searching for Financial Accounting Practice Problems and Solutions can find here. We have uploaded all the Questions and answers for Financial Accounting for Commerce, CA IPCC, B.com and for BBA students. Interested candidates who are preparing for the Financial Accounting exam can find here. Here we have given some important questions for Financial Accounting subject. Also we have given Financial Accounting Practice Problems pdf in this website.
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Expected Problems for Financial Accounting:
Question 1 – Prepare Journal Entries for the following transactions in the books of Gamma Bros.
- Employees had taken stock worth Rs. 10,000 (Cost price Rs. 7,500) on the eve of Deepawali and the same was deducted from their salaries in the subsequent month.
- Wages paid for erection of Machinery Rs. 8,000.
- Income tax liability of proprietor Rs. 1,700 was paid out of petty cash.
- Purchase of goods from Naveen of the list price of Rs. 2,000. He allowed 10% trade discount, Rs. 50 cash discount was also allowed for quick payment.
Question 2 – M/s Kedar, Profit and loss account showed a net profit of Rs. 8,00,000, after considering the closing
stock of Rs. 7,50,000 on 31 st March, 2017. Subsequently the following information was obtained
from scrutiny of the books:
- Purchases for the year included Rs. 30,000 paid for new electric fittings for the shop.
- M/s Kedar gave away goods valued at Rs. 80,000 as free samples for which no entry was made in the books of accounts
- Invoices for goods amounting to Rs. 5,00,000 have been entered on 27 th March, 2017, but the
goods were not included in stock.
- In March, 2017 goods of Rs. 4,00,000 sold and delivered were taken in the sales for
- Goods costing Rs. 1,50,000 were sent on sale or return in March, 2017 at a margin of profit
of 33-1/3% on cost. Though approval was given in April, 2017 these were taken as sales for
March, 2017.You are required to determine the adjusted net profit for the year ended on 31.3.2017 and calculate the value of stock on 31 st March, 2017.
Question 3 – The M/s LG Transport purchased 10 trucks at Rs. 45,00,000 each on 1st April 2014. On October 1st, 2016, one of the trucks is involved in an accident and is completely destroyed and Rs. 27,00,000 is received from the insurance in full settlement. On the same date, another truck is purchased by the com pany for the sum of Rs. 50,00,000. The company write off 20% on the original cost per annum. The company observe the calendar year as its financial year. You are required to prepare the motor truck account for two year ending 31 Dec, 2017.
Question 4 – Mr. B accepted a bill for Rs. 10,000 drawn on him by Mr. A on 1 st August, 2017 for 3 months. This
was for the amount which B owed to A. On the same date Mr. A got the bill discounted at his bank for Rs. 9,800. On the due date, B approached A for renewal of the bill. Mr. A agreed on condition that Rs. 2,000 be paid immediately along with interest on the remaining amount at 12% p.a. for 3 month s and that for the remaining balance B should accept a new bill for 3 months. These arrangements were carried through. On 31 st December, 2017, B became insolvent and his estate paid 40%. Prepare Journal Entries in the books of Mr. A.
Question 5 – Mr. Kotriwal is engaged in business of selling magazines. Several of his customers pay money in advance for subscribing his magazines. Information related to year ended 31st March 2017 has been given below:
On 1.4.2016 he had a balance of Rs.2,00,000 advance from customers of which Rs.1,50,000 is related to year 2016-17 while remaining pertains to year 2017-18. During the year 2016-17 he made cash sales of Rs. 5,00,000. You are required to compute:
(i) Total income for the year 2016-17.
(ii) Total money received during the year if the closing balance in Advance from customers Account is Rs. 1,70,000.
Question – 6 From the information given below, calculate (i) Current Ratio and (ii) Debt to Equity Ratio:
Net Profit of the year Rs. 80,000, Fixed Assets Rs. 2,00,000; Closing Inventory Rs. 10,000; Other Current Assets Rs. 1,00,000; Current Liabilities Rs. 30,000; Share Capital Rs. 1,70,000; 12% Debenture Rs. 60,000
Question – 7 Mohan Ltd. invited applications for 15 lakhs shares of Rs. 100 each payable as follows :
- On Application 20 Rs.
- On Allotment (on 1st June, 2017) 30 Rs.
- On First Call (on 1st Nov., 2017) 30 Rs.
- On Final Call (on 1st March., 2018) 20 Rs.
All the shares were applied for and allotted. A shareholder holding 30,000 shares paid the whole of the amount due along with allotment. You are required to prepare the journal entries for the above-mentioned transactions, assuming all sums due were received. Interest was paid to the shareholder concerned on 1 st March, 2018.
Question – 8 Riya Limited issued 20,000 14% Debentures of the nominal value of Rs.1,00,00,000 as follows:
(a) To sundry persons for cash at 90% of nominal value of Rs. 50,00,000.
(b) To a vendor for purchase of fixed assets worth Rs. 20,00,000 – Rs. 25,00,000 nominal value.
(c) To the banker as collateral security for a loan of Rs. 20,00,000 – Rs. 25,00,000 nominal value.
You are required to prepare necessary journal entries Journal Entries.
Question – 9 From the following particulars, prepare a Bank Reconciliation Statement for Pathak Ltd. As on 31.3.2017
(1) Balance as per cash book is Rs. 1,20,000.
(2) Cheques issued but not presented in the bank amounts to Rs. 68,000.
(3) Bank charges amounts to Rs. 300.
(4) Interest credited by bank amounts to Rs. 1,500.
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In this article we have given all the important questions to Download Financial Accounting Problems and Solutions for CA IPCC, BBA, B.com students. Interested students can download all the Financial Accounting Question and Answers paper pdf link provided above and also check the important problems and solutions for Financial Accounting subject in this web portal.