Following information is available from the books of Mr. Z
Rs
Expenses paid during the year 1,35,000
Expenses outstanding on 1.4.2011 12,250
Expenses prepaid on 1.4.2011 15,000
Expenses outstanding on 31.3.2012 17,000
Expenses prepaid on 31.3.2012 16,750
Net expenses debited to profit & loss account for the year ended 31.3.2012 should be ____________.

Rs 1,96,000

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Rs 1,37,500

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Rs 1,32,000

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Rs 1,38,000

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Solution

The correct option is D Rs 1,38,000
Particular Amount
Expenses Paid During the Year 135000
Less-O/s expenses on 01.04.2011 12250
Add-prepaid Expenses in 01.04.2011 15000
Add-O/s Expenses 31.03.12 17000
Less-Expenses prepaid 31.03.12 16750
Net Expenses debited to P & L for the year 138000

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Similar questions

Q. The following is the profit and loss account of Yamuna Limited. Yamuna Limited Profit and Loss Account for the year ended March 31, 2007

\begin{matrix} Particulars & Amt. (Rs.) & Amt. (Rs.) Sales & 10, 00, 000 Cost of Goods Sold Opening Stock & 2, 50, 000 Purchase & 5, 00, 000 - -------- - 7, 50, 000 (-)Closing Stock & 2, 00, 000 - -------- - & 5, 50, 000 - -------- - Gross Profit & 4, 50, 000 Operating Expenses & 3, 00, 000 - -------- - Net Profit & 1, 50, 000 - -------- - \end{matrix}

Additional Informations:
(i) Trade debtors decrease by Rs. 30,000 during the year.
(ii) Prepaid expenses increase by Rs. 5,000 during the year.
(iii) Trade creditors decrease by Rs. 15,000 during the year.
(iv) Outstanding expenses increased by Rs. 3,000 during the year.
(v) Operating expenses included depreciation of Rs. 25,000.

Compute net cash provided by operations for the year ended March 31, 2007 by the indirect method.

From the following balances extracted from the books of Raga Ltd. prepare a trading and profit and loss account for the year ended December 31, 2011 and a balance sheet as on that date.

$\begin{matrix} Account Title & Amt. (Rs.) & Account Title & Amt. (Rs.) Drawings & 20, 000 & Sales & 2, 20, 000 Land and Buildings & 12, 000 & Capital & 1, 01, 110 Plant and Machinery & 40, 000 & Discount & 1, 260 Carriage Inwards & 100 & Apprentice Premium & 5, 230 Wages & 500 & Bills Payable & 1, 28, 870 Salary & 2, 000 & Purchase Return & 10, 000 Sales Return & 200 Bank Charges & 200 Coal, Gas and Water & 1, 200 Purchase & 1, 50, 000 Trade Expenses & 3, 800 Stock (Opening) & 76, 800 Cash at Bank & 50, 000 Rates and Taxes & 870 Bills Receivable & 24, 500 Sundry Debtors & 54, 300 Cash in Hand & 30, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 66, 470 - -------- - - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 66, 470 - -------- - - -------- - \end{matrix}$

The additional information is as under:

1. Closing stock was valued at the end of the year Rs. 20,000.

2. Depreciation on plant and machinery charged @ 5% and land and building @ 10%.

3. Discount on debtors @ 3%.

4. Make a provision @ 5% on debtors for bad debts.

5. Salary outstanding was Rs. 100 and wages prepaid was Rs. 40.

6. The manager is entitled a commission of 5% on net profit after charging such commission.

Q. In the year ended 31st March, 2018, salaries paid amounted to ₹ 2,04,000. Ascertain the amount chargeable to the Income and Expenditure Account for the year ended 31st March ,2018 from the following additional information:

	₹
Prepaid Salaries on 31st March, 2017	24,000
Prepaid Salaries on 31st March, 2018	12,000
Outstanding Salaries on 31st March, 2017	18,000
Outstanding Salaries on 31st March, 2018	15,000

Prepare Trial Balance from the following information :

Prepaid Expenses Rs. 5,000, Profit & Loss A/c (Profit) Rs. 8,000, Outstanding Rent Rs. 2,000, Bad Debts Recovered Rs. 4,000, Interest on Investment Rs. 1,000, Due to Mohan Rs. 5,000, Bank overdraft Rs. 2,000, Discount Allowed Rs. 800, Due from Vinod Rs. 1,200, Investment Rs. 15,000, Patents Rs.4,000, Machinery Rs.6,000, Capital Rs. 10,000.

PRACTICAL PROBLEMS

(Outstanding Expenses and Prepaid Expenses)

From the following information supplied to you, prepare Income and Expenditure Account for the year ending on 31/03/2013 and Balance Sheet as on that date for Suryodaya Club, Nasik.

Balance Sheet as on 01/04/2012
Liabilities	Amount Rs	Assets	Amount Rs
Capital Fund	50,000	Land	60,000
Bank Overdraft	35,000	Outstanding Subscriptions	5,000
Outstanding Salary	2,000	Prepaid Insurance Premium	2,500
		Cash in Hand	9,500
		Furniture	10,000
	87,000		87,000

Receipts and Payments Account for the year ending 31.03.2013
Dr.					Cr.
Receipts	Amount Rs	Payments		Amount Rs
To Balance b/d	9,500	By Bank Overdraft (Repaid)		35,000
To Subscription	95,000	By Salary		12,500
To Admission Fees	7,500	By Insurance Premium		8,000
		By Interest		1,700
		By Miscellaneous Expenses		4,400
		By Furniture		20,000
		By Balance c/d
		Cash in Hand	5,400
		Cash at Bank	25,000	30,400
	1,12,000			1,12,000

Adjustments:

1) Subscriptions received, includes Rs 3,000 for 2011-2012 and Outstanding Subscriptions for 2012-2013 was Rs 8,000.

2) Salary Paid includes Rs 2,000 Paid for last year

3) On 31/03/2013, Prepaid Insurance Premium was Rs 3,000

4) Admissions Fees are to be capitalized.

5) Depreciate Furniture by Rs 2,000

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	Rs
Expenses paid during the year	1,35,000
Expenses outstanding on 1.4.2011	12,250
Expenses prepaid on 1.4.2011	15,000
Expenses outstanding on 31.3.2012	17,000
Expenses prepaid on 31.3.2012	16,750

Particular	Amount
Expenses Paid During the Year	135000
Less-O/s expenses on 01.04.2011	12250
Add-prepaid Expenses in 01.04.2011	15000
Add-O/s Expenses 31.03.12	17000
Less-Expenses prepaid 31.03.12	16750
Net Expenses debited to P & L for the year	138000

The correct option is D Rs 1,38,000 Particular Amount Expenses Paid During the Year 135000 Less-O/s expenses on 01.04.2011 12250 Add-prepaid Expenses in 01.04.2011 15000 Add-O/s Expenses 31.03.12 17000 Less-Expenses prepaid 31.03.12 16750 Net Expenses debited to P & L for the year 138000

The correct option is D Rs 1,38,000
Particular Amount
Expenses Paid During the Year 135000
Less-O/s expenses on 01.04.2011 12250
Add-prepaid Expenses in 01.04.2011 15000
Add-O/s Expenses 31.03.12 17000
Less-Expenses prepaid 31.03.12 16750
Net Expenses debited to P & L for the year 138000