Q.

1) Prepare Trading and Profit & Loss A/C for the year ended 31st March, 2015 and the
Balance Sheet as on that date from the following Trial Balance

Trial Balance

Particulars Amount Dr. Amount Cr.

Capital Account 1,81,350

General Reserve 37,000

Freehold Land & Building 1,50,000

Bad Debts 2,000

Stock 50,000

Purchases 51,000

Salaries and Wages 25,000

Bank A/C 20,400

Sundry Debtors & S. Creditors 55,000 40,000

Advertisement 1,700

Goods sold 1,15,000

Furniture and fixtures 27,000

Interest 5,250 14,000

Total 3,87,350 3,87,350

Adjustments:

a. Closing stock is valued at Rs. 20,000

b. Furniture installation charges wrongly added to Salaries and wages A/C Rs. 1,500
c. Provide depreciation on furniture and fixtures at 10 %
d. Transfer to general reserve Rs. 3,500
e. Provide RDD at 10 % on debtors.
f. Interest due but not received Rs. 7,500
g. Salaries and Wages paid in advance Rs. 4,000
Q.2) Prepare a trial balance of Shri Anuj from the following information. Also prepare Trading
and Profit & Loss A/C for the year ended 31st March, 2015 and the Balance Sheet as on that date
from the following data

Particulars Amount Particulars Amount

Capital A/C ? Rent paid A/c 15,000

Computer A/c 1,81,000 Stationery A/c 12,500
Commission received A/c 500 Interest received A/c 12,000
Repairs A/c 4,000 Consultancy charges 2,50,500
received A/c
Drawings A/c 4,000 Furniture A/c 15,000
Vehicle A/c 12,000 Advance received A/c 7,500
Salary paid A/c 17,000 Interest paid A/c 5,000
Investments A/c 22,000 Cash A/c 45,000
Adjustments:

a. Rent is paid in advance Rs.2,000.

b. Consultancy charges due but not received Rs. 5,500.
c. Provide depreciation on vehicle at 10% and Computer at 40%.
d. Outstanding salaries Rs. 6,000.
e. Unused stationery is worth Rs. 3,500.

Q.3) Choose the correct alternative:

a. Recording of capital contributed by the owner as a liability ensures adherence to the principle
of
a) double entry b) going concern c) separate entity d) materiality e)consistency

b. Recording of fixed assets at cost ensures adherence to the concept of

a) Conservatism b) going concern c) cost d) both (a) & (b) above e) both (b) & (c)
above.

c. The total assets of the firm are Rs. 50,000, outside liabilities are Rs. 30,000, the capital
contributed by the owner is
a) Rs. 50,000 b) 30,000 c) 20,000 d) 10,000 e) 80,000

d. If opening balance of Debtor’s A/c is Rs. 50,000 ,closing balance of Debtors is Rs. 1,00,000
& the receipts from the debtors is Rs. 20,000, credit sales for the year is
a)Rs.50,000 b)70,000 c) 80,000 d)none of the above.
e. Withdrawal of goods from stock by the owner of the business for the personal use is recorded
by,
a) debiting stock A/C & crediting Capital A/C b)debiting Capital A/C & crediting Drawings
A/C c) debiting drawings A/C & crediting Stock / purchases A/C

Q.4) From the following balances extracted from the books of Sh. Gyan on 31st December,
2013, prepare a Trading Account, P & L A/c and a Balance Sheet.

Dr. Balances Rs. Rs.

Capital 2,02,400

Sundry Expenses 10,000

Sales ??

Return inwards 4,000

Return outwards 6,000

Purchases 1,50,000

Cash in hand 1,600

Bank Overdraft 15,000

Interest on Overdraft 1,500

Creditors 17,000

Opening Stock 18,000

Freight Inward 8,500

Rent and Taxes 7,000

Debtors 32,600

Commission 3,000 2,200

Freehold Property 1,58,200

Advertisement Expenses 3,900

Salaries and wages 20,000

Life Insurance Premium (for employees) (P&L) 3,400

Motor Vehicle 39,800

Interest 15,200

Carriage inwards 1,000

Carriage outwards 800

Power 2,200

Audit Fee 1,700

Electricity 2,000
TOTAL 4,69,200 4,69,200

Adjustments:

a. Closing stock is valued at Rs. 35,000 cost price, Rs. 45,000 market price.
b. Interest due but not received Rs. 18,000
c. Outstanding audit fees Rs. 2,300
d. Commission due but not received Rs. 8,000
e. Provide depreciation on Motor vehicle at 5%

Q.5) 3 From the following balances of Sehajta Ltd. prepare a trial balance and then
prepare the Final Accounts as on 31st March, 2008 :—

Rs. Rs.
Stock on 01-4-2007 23,500 Carriage paid 4,100

Purchases 46,800 Machinery 32,800

Sales 1,30,000 Rent paid 7,500

Salaries and wages 32,800 Legal Expenses 3,800

Interest on loan taken 5,800 Miscellaneous Receipts (P&L) 500

Capital ??? Sundry Debtors 30,000

Returns Inward 6,600 Sundry Creditors 12,200

Returns Outward 2,800 Donation paid (P&L) 600

Loose Tools 7,200 Bad-Debts (P&L) 4,750

Trade Marks 5,000 Bad-Debts Recovered (P&L credit) 4,000

Discount received. 2,100 Loan taken 23,900

Discount allowed 9,600 Bank Charges 2,800

Fixed Deposit with P.N.B. 10,000 Life insurance premium paid on 3,000
proprietor’s life.
Cash in Hand 1,300

Motor Vehicles 50,000

Leasehold Land 60,000

Adjustments:

a. Closing stock is valued at Rs. 15,000 cost price, Rs. 13,000 market price.
b. Interest due but not paid Rs. 2,000
c. Provide for RDD at 2% on debtors.
d. Legal expenses paid In advance Rs. 600
e. Provide depreciation on Machinery at 5%

Q. 6) The following balances are extracted from the books of Mr.Senthil. Prepare Trial Balance
as on 30.6.2004. Also prepare the final accounts.
Capital - 4,70,200 , Machinery -1,58,800 ,
Cash in hand - 6,000 , Sundry Debtors -48,000
Building -3,30,000 , Repairs -5,400 , (P&L)
Stock -43,000, Insurance premium -3,300, (P&L)
Sundry creditors -26,000, Sales -2,90,000,
Commission paid -750, Telephone charges- 6,450,
Rent & Taxes - 6,300, Furniture -11,000,
Purchases -1, 65,000 , Discount earned -1,100,
Salaries -70,600 , Loan from Mohammed -51,000,
Discount allowed- 650, Reserve fund -5,900,
Drawings -7,000 Bills receivable -8,600,
Bad debts- 1,350 Bills payable -???.

Adjustments:
1. Closing stock is valued at Rs. 30,000 cost price, Rs. 33,000 market price.
2. Provide RDD at 5% on debtors.
3. Insurance paid in Advance Rs 1,000
4. Provide depreciation on Machinery at 5%
5. Outstanding Salaries Rs 2,000

Q.7) The following balances are extracted from the books of Mr.Senthil.
Prepare Trial Balance as on 30.6.2004. Also prepare the final accounts:

Capital - ??? Machinery -2,00,000

Cash in hand -16,000 Sundry Debtors -38,000
Building - 3,00,000 Repairs -5,400
Opening Inventory -23,000 insurance premiums -3,300
Sundry creditors -26,000 Sales -3,71,900
Commission paid -500 Telephone charges -6,500
Rent & Taxes -8,000 Furniture -10,000
Purchases -1,65,000 Discount earned -1,100
Salaries -70,600 Loan taken - 51,000
Discount allowed -650 General Reserves - 5,900
Drawings -5,000 Bills receivable - 8,600
Bad debts -1,350 Bills payable 6,000
Adjustments:
1. Building depreciation at 10%.
2. Salaries paid in advance Rs 2,000.
3. Closing stock valued at Rs 15,000.
 4. Telephone Charge outstanding Rs 500.
5. Provide for reserve for doubtful debt (RDD) at 10% on debtors.
Q.8) Prepare Trial Balance as on 31.3.2014 from the books of Mrs.Chitra. Also prepare the final
accounts.
Capital - ??? Drawings -24,000
General expenses - 97,000 (P&L) Building -78,000
Machinery - 1,18,680 Stock - 1,32,400
Wages - 14,400 Insurance -2,610 (P&L)
Bad debts -1,100 Creditors -5,000
Sales - 3, 30,720 Loans (Cr.) -75,000
Commission paid - 5,500 Purchases - 2,10,800
Bills payable -7,700 Reserve Fund -15,000
Bank overdraft - 28,600 Cash in hand -25,320
Discount allowed -1,210
Adjustments

1. Closing stock is valued at Rs. 25,000 cost price, Rs. 23,000 market price.
2. Commission charges wrongly added in general expenses Rs 500.
3. Insurance outstanding Rs 1,000.
4. Transfer to reserve fund Rs. 3,500.
5. Machinery installation chares wrongly added in wages Rs. 4,500
6. Machinery depreciation at 10%.
Q.9) Prepare Trial Balance as on 31.12.2002 from the following balances of Ms. Fathima. Also
prepare the final accounts.

Drawings - 74,800 Purchases - 2,95,700

Inventory (1.1.2002) - 30,000 Discount received - 1,000
Capital ??? Discount allowed - 950
Furniture - 33,000 Sales - 3,35,350
Sundry creditors - 75,000 Rent - 72,500
Printing charges - 1,500 Sundry expenses - 21,000
Bank loan - 1,20,000 Bills receivable - 52,500
Freight Inward - 3,500 Carriage outwards -1,500
Income tax - 9,500 (P&L) Insurance -1,200
Machinery - 2,15,400 Bills payable -31,700
Adjustments

1. Closing stock valued at Rs 20,000.

2. Income tax payable Rs 2,000
3. Freight charges wrongly added in rent Rs 3,000
4. Insurance paid in advance Rs 500.
5. Machinery depreciation at 5%.

Q. 10) Prepare trial balance as on 31.3.2003 from the following balances of Mrs.Sujatha. Also
prepare the balance sheet and trading and profit and loss account:

Drawings - 43,000 Purchases - 2,98,000

Capital ??? Sales - 3,64,000
Sundry creditors - 61,500 Salaries - 44,950
Bills Payable - 22,000 Sales return - 500
Sundry Debtors - 55,000 Purchases return - 2,550
Bills Receivable - 72,600 Travelling expenses - 12,300
Loan from Shameem - 2,50,000 Commission paid - 250
Furniture & Fittings - 12,250 Discount earned - 2,000
Opening stock - 2,23,500 Cash in hand - 65,450
Cash at bank - 86,250
Adjustments
1. Closing stock at Rs 15,000
2. Furniture depreciation at 10 %.
3. Provide RDD at 5% on debtors.
4. Salaries paid in advance Rs 5,000
5. Carriage charges paid on new furniture are wrongly added to travelling expenses
amounted to Rs. 2,250

Q.11) Prepare Trial Balance from the following balances of Mrs.Dilshad

as on 31.12.2002.
Rs. Rs.
Capital ??? Cash in hand -25,000
Building - 1,15,000 Cash at bank -84,700
Machinery - 65,000 Salaries - 94,000
Furniture - 11,000 Rents - 48,000
Car - 68,000 Commissions - 1,400
Opening stock - 86,000 Rates and Taxes - 2,600
Purchases - 94,000 Bad debts - 3,200
Sales - 2,17,000 Insurance - 2,400
Sundry debtors - 16,200 General Expenses - 800
Reserve for doubtful debts -2,300 Sundry Creditors -68,000
Adjustments

1. Closing stock valued at Rs 18,000.

2. Rent paid in advance Rs. 5,000
3. Provide RDD at 10% on debtors.
4. Machinery depreciation at 10 %
5. Building depreciation at 5%