3405 24654 Textbooksolution PDF
3405 24654 Textbooksolution PDF
3405 24654 Textbooksolution PDF
Following are the balances extracted from the books of Manish Gupta on 31st March, 2018:
Prepare Trading and Profit and Loss Account and Balance Sheet as at 31st March, 2018 after following adjustments are made:
i
Closing Stock was 16,000.
ii
Depreciate Plant and Machinery @ 10% and Delivery Vehicle @ 15%.
iii
Unpaid Rent amounted to 500.
Solution:
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
Rs Rs
Opening stock 16,000 Sales 42,000
Purchases 20,000 Closing Stock 16,000
Wages 8,000
Manufacturing Expenses 1,500
Carriage 1,600
Gross Profit (Balance Figure) 10,900
58,000 58,000
35,800 35,800
Balance Sheet
as on March 31, 2018
Amount Amount
Liabilities Assets
Rs Rs
Capital 1,90,000 Fixed Assets
Less: Drawings 7, 000 Plant and 1,20,000
Machinery
Less: Net Loss 24, 900 Less:10% 12, 000 1,08,000
Deprecation
1,58,100 Delivery Vehicle 26,000
Less:15% 3, 900 22,100
Depreciation
Current Liabilities
Sundry Creditors 26,000 Current Assets
Bills Payable 23,500 Closing Stock 16,000
Unpaid Rent 500 Sundry Debtors 36,000
Cash at Bank 26,000
2,08,100 2,08,100
Question:2
Prepare Trading and Profit and Loss Account and Balance Sheet from the following balances relating to the year ended 31st March, 2018:
Additional Information:
i
Closing Stock was valued at 14,500.
ii
Depreciate Plant and Machinery by 4,000.
iii
Write off Bad Debts 5,000.
iv
A sum of 400 is due for repairs.
Solution:
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
Rs Rs
Opening stock 20,000 Sales 1,64,000
Purchases 1,05,000 Less: Return Inwards 3, 000 1,61,000
Less: Return out words 5, 000 1,00,000 Closing Stock 14,500
Wages 50,000 Gross Loss (Balancing Figure) 5,000
Manufacturing Expenses 8,000
Carriage 1,500
Fuel and Power 1,000
1,80,500 1,80,500
Balance Sheet
as on March 31, 2018
Amount Amount
Liabilities Assets
Rs Rs
Capital 1,00,000 Fixed Assets
Less: Drawings 10, 000 Plant and Machinery 40,000
Less: Net Loss 27, 900 62,100 Less: Depreciation 4, 000 36,000
Current Liabilities Current Assets
Creditors 12,000 Closing Stock 14,500
Bills Payable 5,000 Sundry Debtors 24,000
Outstanding Repairs 400 Less: Further Bad 5, 000 19,000
Debts
Bank 10,000
79,500 79,500
Question:3
Following Trial Balance has been extracted from the books of M/s. Ram Prasad & Sons on 31st March, 2018:
Dr. Cr.
Particulars Particulars
Additional Information:
i
Outstanding salaries were 45,000.
ii
Depreciate Machinery at 10%.
iii
Wages outstanding were 5,000.
iv
Rent prepaid 10,000.
v
Provide for interest on capital 5% per annum.
vi
Stock on 31st March, 2018 8,00,000.
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date.
Solution:
Financial Statement of M/s. Ram Prasad & Sons
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
Rs Rs
Opening Stock 6,00,000 Sales 16,00,000
Purchases 8,00,000 Closing Stock 8,00,000
Wages 1,00,000
Add: Outstanding Wages 5,000 1,05,000
Gross Profit (Balancing Figure) 8,95,000
24,00,000 24,00,000
Balance Sheet
as on March 31, 2018
Amount Amount
Liabilities Assets
Rs Rs
Capital 9,00,000 Fixed Assets
Add: Net Profit 6,50,000 15,50,000 Machinery 4,00,000
Current Liabilities Less: 10%
Depreciation 40, 000 3,60,000
Sundry Creditors 4,50,000 Current Assets
Outstanding Salary 45,000 Closing Stock 8,00,000
Outstanding Wages 5,000 Sundry Debtors 4,40,000
Bills Receivable 2,90,000
Prepaid Rent 10,000
Cash at Bank 1,00,000
Cash in Hand 50,000
20,50,000 20,50,000
Question:4
From the following Trial Balance of M/s. Shradha & Sons as on 31st March, 2018, prepare Trading and Profit and Loss Account and Balance Sheet.
Dr. Cr.
Heads of Accounts Balance Balance
Adjustments:
i
Closing Stock 64,000.
ii
Wages outstanding 2,400.
iii
Bad Debts 600.
iv
Provision for Doubtful Debts to be 5%.
v
Rent is paid for 11 months.
vi
Insurance premium is paid per annum, ended 31st May, 2018.
vii
Loan from the bank was taken on 1st October, 2017.
viii
Provide Depreciation on machinery @ 10% and on Furniture @ 5%.
Solution:
Financial statement of M/s. Shradha & Sons
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
Rs Rs
Opening Stock 42,000 Sales 1,55,000
Purchases 82,600
Less: Return 1, 600 81,000
Outwards
Carriages Inwards 1,200 Closing Stock 64,000
Wages 4,000
Add: Outstanding 2,400 6,400
Wages
Power 6,000
Gross Profit (Balancing Figure) 82,400
2,19,000 2,19,000
***
Balance Sheet
as on March 31, 2018
Amount Amount
Liabilities Assets
Rs Rs
Capital 80,000 Fixed Assets
Add: Net Profit 32,100 Machinery 50,000
Less: Drawings 18, 000 94,100 Less: 10% 500 45,000
Depreciation
8% Bank Loan 25,000 Furniture 14,000
Add: Outstanding 1,000 26,000 Less: 5% 700 13,300
Interest Deprecation
Current Liabilities Current Assets
Creditors 18,900 Closing Stock 64,000
Wages Outstanding 2,400 Debtors 20,600
Rent Outstanding 2,000 Less: Bad Debts 600
Less: 5% Provision
1, 000 19,000
for doubtful Debts
Prepaid Insurance 600
Cash in hand 1,500
1,43,400 1,43,400
Question:5
Trial Balance of a business as at 31st March, 2018 is given below:
Dr. Cr.
Particulars Particulars
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date after taking into account the following adjustments:
i
Closing Stock was valued at 7,000.
ii
Outstanding liabilities for wages were 600 and salaries 1,400.
iii
Depreciation is to be provided @ 5% p.a. on all fixed assets.
iv
Included in Plant and Machinery is a machine purchased for 10,000 on 1st October, 2017.
v
Insurance premium paid in advance 200.
Solution:
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
Balance Sheet
as on March 31, 2018
Dr. Cr.
Amount Amount
Liabilities Assets
Question:6
Following are the balances extracted from the books of Narain Lal on 31st March, 2018:
Amount Amount
Particulars Particulars
Additional Information:
i
Closing Stock as on 31st March, 2018 was 2,00,600.
ii
Depreciate: Business Premises by 3,000 and Furniture and Fittings by 2,500.
iii
Make a provision of 5% on debtors for doubtful debts.
iv
Carry forward 2,000 for unexpired insurance.
v
Outstanding salary was 15,000.
Prepare Trading and Profit and Loss Account for the year and Balance Sheet as at that date.
Solution:
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
Balance Sheet
as on March 31, 2018
Dr. Cr.
Amount Amount
Liabilities Assets
Particulars Particulars
Capital 1,20,000 Drawings 21,000
Opening 45,000 Plant and 24,000
Stock Machinery
Furniture 1,500 Purchases 2,95,000
Sales 4,35,000 Insurances 1,500
Purchases 4,000 Sales Return 7,000
Return
Rent 5,000 Trade Expenses 2,000
Salaries 24,000 Wages 40,000
Bad Debts 1,000 6% Investments 50,000
Sundry 40,000 Sundry Creditors 19,000
Debtors
Bills Payable 800 Cash 12,200
Advertisement 6,000 Miscellaneous 1,200
Expenses Receipts
Patents 4,800
Adjustments:
i
Closing Stock 75,000.
ii
Depreciate Machinery by 10% and Furniture by 20%.
iii
Wages 5,000 and salaries 2,000 are outstanding.
iv
Write off 5,000 as further Bad Debts and create 5% Provision for Doubtful Debts.
v
Investments were made on 1st July, 2017 and no interest has been received so far.
Solution:
Financial statements of Mr. Niranjan
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
5,03,000 5,03,000
Insurances 1,500
Trade Expenses 2,000
Depreciation on:
Machinery 2,400
Furniture 300 2,700
Net Profit (Balancing Figure) 73,835
1,25,450 1,25,450
Balance Sheet
as on March 31, 2018
Amount Amount
Liabilities Assets
Question:8
From the following Trial Balance of Mahesh, prepare his Final Accounts for the year ended 31st March, 2018:
TRIAL BALANCE
as on 31st March, 2018
Debit Credit
Heads of Accounts Balances Balances
Additional Information:
i
Closing Stock on 31st March, 2018 was 21,000.
ii
Rent of 1,200 has been received in advance.
iii
Outstanding liability for trade expenses 12,000.
iv
Commission earned during the year but not received was 2,100.
v
Goods costing 2,000 were taken by the proprietor for his personal use but no entry has been passed in the books of account.
Solution:
Financial Statement of Shri O.P. Yadav
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
Rs Rs
Opening stock 30,000
Purchases Sales 5,00,000
2,50,000
Less: Drawings 2, 000 Less: Return 12, 000 4,88,000
Inwards
Less: Return Outwards 10, 000 2,38,000 Closing Stock 21,000
Carriage 8,000
Wages 60,000
Gross Profit (Balancing Figure) 1,73,000
5,09,000 5,09,000
1,79,900 1,79,900
Balance Sheet
as on March 31, 2018
Amount Amount
Liabilities Assets
Rs Rs
Capital 2,40,000 Fixed Assets
Less: Drawings 22, 000 Machinery 2,80,000
Add: Net Profit 1,32,100 3,50,100 Furniture 34,000
10% Loan from Bank 30,000 Current Assets
Add: Outstanding Interest 800 30,800 Closing Stock 21,000
Current Liabilities Debtors 1,15,000
Creditors 1,00,000 Bills Receivable 4,000
Bills Payable 2,000 Cash at Bank 28,000
Advance Rent 1,200 Cash in Hand 12,000
Outstanding Trade Expenses 12,000 Commission Accrued 2,100
4,96,100 4,96,100
Working Notes:
Calculation of Outstanding Interest on Loan
Interest on loan 30, 000 × 12 3,600
Less: Interest Paid 2, 800
Interest Outstanding on 800
Loan
Question:9
Following balances were extracted from the books of Vijay Kumar on 31st March, 2018:
Particulars Particulars
Capital 2,45,000 Loan 78,800
Drawings 20,000 Sales 6,53,600
General 47,400 Purchases 4,70,000
Expenses
Building 1,10,000 Motor Car 20,000
Machinery 93,400 Provision for 9,000
Doubtful Debts
Stock on 1,62,000 Commission Cr. 13,200
1st April,
2017
Insurance 13,150 Car Expenses 18,000
Wages 72,000 Bills Payable 38,500
Debtors 62,800 Cash 800
Creditors 25,000 Bank Overdraft 33,000
Bad Debts 5,500 Charity 1,050
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date after giving effect to the following adjustments:
a
Stock as on 31st March, 2018 was valued at 2,30,000.
b
Write off further 1,800 as Bad Debts and maintain the Provision for Doubtful Debts at 5%.
c
Depreciate Machinery at 10%.
d
Provide 7,000 as outstanding interest on loan.
Solution:
Financial Statement of Vijay Kumar
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
Rs Rs
Opening Stock 1,62,000 Sales 6,53,600
Purchases 4,70,000 Closing Stock 2,30,000
Wages 72,000
Gross Profit (Balancing Figure) 1,79,600
8,83,600 8,83,600
Balance Sheet
as on March 31, 2018
Liabilities Amount Assets Amount
Rs Rs
Question:10
Following Trial Balance has been extracted from the books of Shri Sunder Lal on 31st March, 2018:
Debit Credit
Particulars Balances Balances
Closing Stock on 31st March, 2018 was 12,74,000. You are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that
date after making the following adjustments:
a
Depreciate Plant and Machinery @ 10% and Furniture @ 5%.
b
Provision for Doubtful Debts to be maintained at 1,50,000.
c
Insurance includes annual premium of 7,200 on a policy which will expire on 30th September, 2018.
d
Purchases include a computer costing 60,000 purchased on 1st July, 2017 and is subject to depreciation @ 10% p.a.
Solution:
Financial Statements of Shri Sunder Lal
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
( )
10 9 4,500 52,900
Computer 60, 000 × 100 × 12
Balance Sheet
as on March 31, 2018
Amount Amount
Liabilities Assets
Note:Net Profit as per computation should be 1,86,200 but as per Text Book it is 1,82,600.
Question:11
Sanjiv Sondhi started business on 1st April, 2017 with a capital of 3,00,000. Following Trial Balance was drawn up from his books at t he end of the year:
Heads of
Heads of Accounts
Accounts
Drawings 45,000 Capital 4,00,000
Plant and 80,000 Sales 16,00,000
Fixtures
Purchases 11,60,000 Sundry Creditors 1,20,000
Carriage Inwards 20,000 Bills Payable 90,000
Returns Inward 40,000
Wages 80,000
Salaries 1,00,000
Printing and 8,000
Stationery
Advertisement 12,000
Trade Charges 6,000
Rent and Taxes 14,000
Sundry Debtors 2,50,000
Bills Receivable 50,000
Investments 1,50,000
Discount 5,000
Cash at Bank 1,60,000
Cash in Hand 30,000
22,10,000 22,10,000
Value of Stock as on 31st March, 2018 was 2,60,000. You are required to prepare his Trading and Profit and Loss Account for the year ended 31st March 2018 and Balance Sheet as at
that date after taking the following facts into account:
a
Plant and Fixtures are to be depreciated by 10%.
b
Salaries outstanding on 31st March, 2018 amounted to 35,000.
c
Accrued Interest on investment amounted to 7,500.
d
5,000 are Bad Debts and a Provision for Doubtful Debts is to be created at 5% of the balance of debtors.
Solution:
Financial Statement of Sanjiv Sondhi
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
Rs Rs
Purchase 11,60,000 Sales 16,00,000
Carriage Inwards 20,000 Less: Return 40, 000 15,60,000
Inwards
Wages 80,000 Closing Stock 2,60,000
Gross Profit (Balancing 5,60,000
Figure)
18,20,000 18,20,000
Balance Sheet
as on the year ended March 31, 2018
Amount Amount
Liabilities Assets
Rs Rs
Capital 4,00,000 Plant and Fixtures 80,000
Less: Drawings 45, 000 Less: 10% 8, 000 72,000
Depreciation
Add: Net Profit 3,62,250 7,17,250 Investment 1,50,000
Sundry Creditors 1,20,000 Add: Accrued 7,500 1,57,500
Interest
Bills Payable 90,000 Closing Stock 2,60,000
Salaries 35,000 Sundry Debtors 2,50,000
Outstanding
Less: Bad Debts 5, 000
2,45,000
Less: 5% Provision
for Doubtful Debts 12, 250 2,32,750
Bills Receivable 50,000
Cash at Bank 1,60,000
Cash in Hand 30,000
9,62,250 9,62,250
Question:12
Following Trial Balance were extracted from the books of Ram as on 31st March, 2018:
Debit Balances
Debit Balances
Contd.
Drawings 70,000 Cash at Bank 1,24,000
Purchases 8,22,100 Cash in Hand 22,100
Sales Return 18,200 Office Furniture 35,000
Stock on 1st April, 2017 1,14,600 Bad Debts 10,000
Salaries 1,61,500 Carriage Outwards 32,400
Wages 85,600 Sundry Debtors 3,89,700
Leasehold Premises 2,50,000 Credit Balances
Rent, Rates and 69,400 Capital 9,00,000
Insurance
Carriage Inwards 23,100 Purchases Return 42,400
Office Expenses 95,200 Sales 14,98,400
Plant and Machinery 2,40,000 Provision for Doubtful Debts (1st 42,400
April, 2017)
Light and Water Factory 79,500 Discount 1,800
Bills Receivable 12,400 Sundry Creditors 1,69,800
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date after taking into account the following:
a
Depreciation is to be written off as follows: Leasehold premises 5%. Plant and Machinery 10%.
b
Write off 5,000 as further Bad Debts and make a Provision for Doubtful Debts equal to 5,000.
c
Wages amounted to 5,700 have become due but have not been paid.
d
Wages include 10,000 incurred on installation of new machine. Machine was installed on 1st April, 2017.
e
The value of stock on 31st March, 2018 was 1,49,200.
f
Unexpired premium amount to 6,800 is to be carried forward to the next year.
Solution:
Financial Statement of Ram
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
Balance Sheet
as on March 31, 2018
Amount Amount
Liabilities Assets
Note: Wages for installation of machinery reduces the value of wages and increase the value of machinery.
Question:13
From the following Trial Balance of M/s Arjun and Sons as on 31st March, 2018, prepare Trading and Profit and Loss Account and Balance Sheet:
Debit Credit
Heads of Accounts Balances Balances
Adjustments:
i
Closing Stock 6,40,000.
ii
Wages Outstanding 24,000.
iii
Bad Debts 6,000 and Provision for Bad and Doubtful Debts to 5% on Debtors.
iv
Rent is paid for 11 months.
v
Loan from bank was taken on 1st October, 2017.
vi
Provide Depreciation on Machinery @ 10% p.a.
vii
Provide Manager’s Commission at 10% on net profit after charging such commission.
Solution:
Financial Statements of M/s Arjun and Sons
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
Rs Rs
Opening Stock 4,20,000 Sales 15,50,000
Purchases 8,26,000 Closing Stock 6,40,000
Less: Return 16, 000 8,10,000
Outwards
Carriage Inwards 12,000
Wages 40,000
Add: 24,000 64,000
Outstanding
Power 60,000
Gross Profit (Balancing 8,24,000
Figure)
21,90,000 21,90,000
Balance Sheet
as on March 31, 2018
Amount Amount
Liabilities Assets
Rs Rs
Capital 8,00,000 Fixed Assets
Less: Drawings 1, 90, 000 Machinery 5,00,000
Add: Net Profit 2,92,727 9,02,727 Less: 10% 50, 000 4,50,000
Depreciation
8% Bank Loan 2,50,000 Furniture 1,40,000
Add: Interest Outstanding 10,000 2,60,000 Current Assets
Current Liabilities Closing Stock 6,40,000
Creditors 1,89,000 Debtors 2,06,000
Wages Outstanding 24,000 Less: Bad Debts 6, 000
Rent Outstanding 20,000 2,00,000
Manger’s Commission Payable 29,273 Less: 5% Provision for
10, 000 1,90,000
Doubtful Debts
Cash in Hand 15,000
14,35,000 14,35,000
Working Notes:
Question:14
From the following Trial Balance and other information prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date:
Dr. Cr.
Particulars
Stock on 31st March, 2018 was 1,24,500. Rent was unpaid to the extent of 850 and 1,500 were outstanding for General Expenses; 4,000 are to be written off as bad debts out of the
above debtors; and 5% is to be provided for doubtful debts. Depreciate Plant and Machinery by 10% and Business Premises by 2%.
Manager is entitled to a commission of 5% on net profit after charging his commission.
Solution:
Financial Statement
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
Rs Rs
Opening Stock 2,20,000 Sales 13,45,000
Purchases 11,88,700 Closing Stock 1,24,500
Gross Profit (Balancing 60,800
Figure)
14,69,500 14,69,500
Balance Sheet
as on March 31, 2018
Amount Amount
Liabilities Assets
Rs Rs
Capital 7,95,000 Fixed Assets
Less: Net Loss 42, 750 7,52,250 Plant and Machinery 1,75,000
Current Liabilities Less: 10% Depreciation 17, 500 1,57,500
Sundry Creditors 1,06,500 Premises 3,45,000
Bills Payable 75,000 Less: 2% Depreciation 6, 900 3,38,100
Rent Outstanding 850 Current Assets
General Expenses Outstanding 1,500 Closing Stock 1,24,500
Sundry Debtors 3,20,000
Less: Bad Debts 4, 000
3,16,000
Less: 5% Provision for
15, 80 3,00,200
Doubtful Debts
Cash at Bank 15,450
Cash in Hand 350
9,36,100 9,36,100
Note: In the question, Manager Commission is given as 5% on Net Profit after charging commission. But, during the year the firm had a Net Loss of Rs 42,750, therefore, manager
commission is not payable.
Question:15
Following is the Trial Balance of Mr. Bharat on 31st March, 2018.
Dr. Cr.
Particulars
Capital 40,000
Plant and Machinery 50,000
Office Furniture and Fittings 2,600
Stock on 1st April, 2017 48,000
You are required to prepare Trading Account, Profit and Loss Account and Balance Sheet.
Solution:
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
Dr. Cr.
Amount Amount
Particulars Particulars
Balance Sheet
as on March 31, 2018
Dr. Cr.
Amount Amount
Liabilities Assets
Question:16
From the following Trial Balance, prepare Trading Account, Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at the date:
Balance Sheet
as on March 31, 2018
Amount Amount
Liabilities Assets
Rs Rs
Capital 5,90,000 Fixed Assets
Less: Drawings 3, 500 Plant and Machinery 1,33,000
Add: Net Profit 53,650 6,31,150 Less: 10% Depreciation 13, 300 1,19,700
Bank Loan 33,700 Motor Vehicles 1,76,000
Current Liabilities Less: 10% Depreciation 17, 600 1,58,400
Creditors 11,870 Building 3,80,000
Outstanding Printing and 58,650 Current Assets
Stationery
Outstanding Salaries 12,000 Sundry Debtors 80,000
Closing Stock 15,270
Cash in Hand 3,000
7,56,370 7,56,370
Question:17
Following balances were extracted from the books of Modern Traders on 31st March, 2018:
Prepare Final Accounts for the year ended 31st March, 2018 after taking into account the following:
a
Stock on 31st March, 2018 was valued at 1,50,000.
b
Outstanding Wages 5,000.
c
Provision for Doubtful Debts is to be maintaind at 5% of the Sundry Debtors.
d
Prepaid Insurance was 1,000.
e
An advance paid by the proprietor from his personal bank account of 50,000 for purchase of a machine on 1st April, 2017 was not recorded in the books. Plant and Machinery was not
debited in the books by the amount paid from firm.
f
Provide Depreciation on Plant and Machinery @ 10% on cost and on Furniture @ 5%.
Solution:
Financial Statement of Modern Traders
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
Rs Rs
Opening Stock 1,50,000 Sales 12,00,000
Purchases 8,20,000 Closing Stock 1,50,000
Freight Inwards 20,000
Wages 13,000
Add: Outstanding 5,000 18,000
Wages
Gross Profit (Balancing Figure) 3,42,000
13,50,000 13,50,000
Balance Sheet
as on March 31, 2018
Amount Amount
Liabilities Assets
Rs Rs
Capital 9,00,000 Plant and Machinery 4,50,000
Less: Accumulated
Less: Drawings 50, 000 Depreciation 3,15,000
1, 35, 000
90, 000 + 45, 000
Add: Net Profit 31,200 8,81,200 Furniture 50,000
Reserve Fund 50,000 Less: 5% Depreciation 2, 500 47,500
Sundry Creditors 90,000 Closing Stock 1,50,000
Wages Outstanding 5,000 Sundry Debtors 2,06,000
Less: Provision for Doubtful 10, 300 1,95,700
Debts
Prepaid Insurance 1,000
Cash at Bank 2,55,000
Cash in Hand 62,000
10,26,200 10,26,200
Note: Advance paid by proprietor for Plant and Machinery out of his personal bank account will increase the Capital A/c and Plant & Machinery A/c balance by Rs 50,000. And also
increase in the amount of depreciation by Rs 5,000.
Question:18
From the following Trial Balance of Shubdo Banerjee, prepare final accounts for the year ended in 31st March, 2018 and Balance Sheet as at that date:
Dr. Cr.
Particulars Balances Balances
Balance Sheet
as on March 31, 2018
Dr. Cr.
Amount Amount
Liabilities Assets
Question:19
Following is the Trial Balance as on 31st March, 2018. Prepare Trading and Profit and Loss Account and Balance Sheet:
Dr. Cr.
Particulars
Balance Sheet
as on March 31, 2018
Dr. Cr.
Amount Amount
Liabilities Assets
Question:20
Following is the Trial Balance obtained from the books of Mr. Vishwanath on 31st March, 2018:
Dr. Cr.
Heads of Accounts
You are required to prepare Mr. Vishwanath’s Trading and Profit and Loss Account for the year ended 31st March, 2018 and his Balance Sheet as at that date after taking into account the
following adjustments:
a
Stock on 31st March, 2018 was 15,600.
b
Depreciate Motor Van and Plant and Machinery by 10% p.a. and Computers @ 20% p.a.
c
Create Provision for Doubtful Debts @ 5%
d
General Expenses include 2,000 paid of wages.
Solution:
Financial Statements for Mr. G. Vishwanath
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
Balance Sheet
as on March 31, 2018
Amount Amount
Liabilities Assets
Working Notes:
1Calculation of Interest Outstanding on Loan
Amount of Bank Loan = 2,00,000
Interest on Loan 2, 00, 000 × 10 20,000
Less: Interest Paid 10, 000
Interest Outstanding 10,000
2
GST Set off
GST Payable/
Receivable=Output CGST+Output SGST-Input IGST
=4,000+4,000-10,000=
2, 000
Question:21
Followingt Trial Balance has been extracted from the books of Santosh on 31st March, 2018:
Debit Credit
Particulars balances balances
Drawings 20,000
Plant and Machinery 10,00,000
Furniture and Fixtures 1,20,000
Capital A/c 19,60,000
Sales 46,80,000
Loose Tools 2,00,000
Goodwill 1,00,000
Opening Stock 2,00,000
Returns Outward 40,000
Discount 60,000
Purchases 21,20,000
Returns Inward 80,000
Wages 10,00,000
Sundry Creditors 2,40,000
Provision for Doubtful Debts 20,000
Carriage Inwards 1,20,000
Salaries 4,16,000
General Expenses 7,20,000
Rent 1,44,000
Postage 40,000
Output IGST 1,00,000
Output CGST 50,000
Output SGST 50,000
Sundry Debtors 5,60,000
Shri B. Barua 20,000
Cash and Bank Balances 1,40,000
Input IGST 1,10,000
Input CGST 45,000
Input SGST 45,500
Total 72,00,000 72,00,000
Amount Amount
Particulars Particulars
Balance Sheet
as on March 31, 2018
Dr. Cr.
Amount Amount
Liabilities Assets
Question:22
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date from the following Traial Balance:
Dr. Cr.
Particulars
Adjustments:
i
Salaries 1,000 and Taxes 2,000 are outstanding but Insurance 500 is prepaid.
ii
Commission 1,000 received in advance for the next year.
iii
Interest 2,100 is to be received on Deposits and Interest and Bank Loan 3,000 is to be paid.
iv
Provision for Doubtful Debts to be maintained at 10,000.
v
Depreciate Furniture by 10%.
vi
Stock on 31st March, 2018 is 45,000
vii
A fire occurred on 1st April, 2018 destroying goods costing 10,000. These goods were purchased paying CGST and SGST @ 6% each.
Solution:
Financial Statements
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
1,85,000 1,85,000
Balance Sheet
as on March 31, 2018
Amount Amount
Liabilities Assets
1,80,000 1,80,000
Working Notes:
1
Loss of stock by fire has ocurred on 1st April, 2018. Hence, it will not affect the BalanceSheet dated 31st March, 2018.
2
GST Set off
First:CGST Payable/
Receivable=Output CGST-Input CGST=8,000-10,000=
2, 000
Second:SGST Payable/
Receivable=Output SGST-Input SGST=8,000-10,000=
2, 000
Third:IGST Payable/
Receivable=Output IGST-Input CGST-Input SGST=6,000-2,000-2,000=2,000
Question:23
The Trial Balance of M/s. Taj & Co. as on 31st March, 2018 was as follows:
Dr. Cr.
Ledger Accounts
Purchases 1,62,505
Sales 2,52,400
Provision for Doubtful Debts 5,200
Sundry Debtors 50,200
Sundry Creditors 30,526
Bills Payable 3,950
Opening Stock 26,725
Wages 23,137
Salaries 5,575
Furniture 7,250
Postage 4,226
Power and Fuel 1,350
Trade Expenses 5,831
Bad Debts 525
Loan to Suraj @ 10% p.a.
3,000
1stDecember, 2017
Cash in Hand and at Bank 10,000
Trade Expenses Accrued but not Paid 700
Drawings 4,452
Capital 12,000
Outstanding Wages 2,000
Input CGST 5,000
Input SGST 5,000
Output CGST 4,000
Output SGST 4,000
Total 3,14,776 3,14,776
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet after considering the following information:
i
Depreciation on Furniture @ 10% to be charged.
ii
Sundry Debtors include 500 due from a customer who has become insolvent.
iii
Provision for Doubtful Debts @ 5% on Sundry Debtors is to be maintained.
iv
Goods costing 1,500, purchased paying CGST and SGST @ 9% each, were destroyed by fire and insurance company admitted a claim for 1,000.
v Stock on 31st March, 2018 was 12,550.
Solution:
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
Balance Sheet
as on March 31, 2018
Dr. Cr.
Amount Amount
Liabilities Assets
Question:24
From the following Trial Balance of Mr. Gaurav and additional information given, prepare Trading and Profit and Loss Account for the year ended 31st March,2018 and Balance Sheet as
at 31st March, 2018:
Dr. Cr.
Particulars
Adjustments:
i
Value of the Closing Stock as on 31st March, 2018 is 50,000.
ii
Wages and Salaries outstanding are 12,500 and Insurance prepaid is 5,000.
iii
Depreciate Machinery and Furniture @ 10% and 15% p.a. respectively. Machinery included a machine which was purchased for 38,500 on 30th September, 2017.
iv
Goods costing 10,000 were taken by the proprietor for his personal use but no entry has been made in the books of account. These goods were purchased paying IGST @ 18%.
Solution:
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
Balance Sheet
as on March 31, 2018
Dr. Cr.
Amount Amount
Liabilities Assets
Question:25
Following is the Trial Balance of Shri Bansi Lal as on 31st March, 2018. You are required to prepare Final Accounts:
Dr. Cr.
Particulars
Balance Sheet
as on March 31, 2018
Amount Amount
Liabilities Assets
Working Notes:
1
20,000 is reduced from Wages and added in Building since such amount is a Capital Expenditure.
2
GST Set Off:
CGST Payable/Receivable
=Output CGST-Input CGST=22,000-20,000=2,000
SGST Payable/Receivable
=Output SGST-Input SGST=22,000-20,000=2,000
Question:26
From the following Trial Balance of M/s. Ram Lal and Sons, prepare Trading, Profit and Loss Account for the year ending 31st March, 2018 and a Balance Sheet as on that date:
Dr. Cr.
Heads of Accounts
Drawings 15,000
Capital 3,50,000
Plant and Machinery 2,05,000
Debtors 50,000
Creditors 28,000
Returns Inward 8,000
Returns Outward 7,000
Discount Allowed 7,000
Discount Received 6,000
Commission 15,000
Interest on Bank Loan 12,000
Furniture 55,000
Provision for Doubtful Debts 13,000
Wages 50,000
Salaries 45,000
Advertisement 15,000
Rent and Taxes 13,000
Purchases 2,60,000
Sales 4,00,000
Stock on 1st April, 2017 70,000
Carriage 5,000
Land and Building 98,000
Cash in Hand 8,000
Cash at Bank 20,000
10% Bank Loan as on 1st April,
2017 1,50,000
Input CGST 9,000
Input SGST 9,000
Output IGST 15,000
Total 9,69,000 9,69,000
Adjustments:
i
The cost of stock on 31st March, 2018 was 37,000. However, its market value was 35,000.
ii
Wages outstanding were 6,000 and salaries outstanding were 5,000 on 31st March, 2018.
iii
1
Depreciate Land and Building @ 22
%, Plant and Machinery @ 10% p.a. and Furniture @ 15 p.a.
iv
Purchase includes purchase of machinery for 10,000 on 1st October, 2017.
v
Debtors include bad debts of 2,000. Maintain a provision for doubtful debts @ 10% on Debtors.
Solution:
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
Balance Sheet
as on March 31, 2018
Dr. Cr.
Amount Amount
Liabilities Assets
Question:27
Following is the Trial Balance of Mr. S. Kapur on 31st March, 2018:
Dr. Cr.
Particulars
Taking into account the following adjustments, prepare Trading and Profit and Loss Account and Balance Sheet:
a
Stock in Hand on 31st March, 2018 is 1,36,000.
b
Machinery is to be depreciated @ 10% and patents @ 20%.
c
Salaries for the month of March, 2018 amounting to 30,000 were unpaid.
d
Insurance includes a premium of 1,700 for the year ending 31st March, 2019.
e
Wages include a sum of 40,000 spent on constructing a scooter shed for employees and customers.
f
Provision for Doubtful Debts is to be created to the extent of 5% on Sundry Debtors.
Solution:
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
Balance Sheet
as on March 31, 2018
Dr. Cr.
Amount Amount
Liabilities Assets
Question:28
Following is the Trial Balance of Shri Paras on 31st March, 2018:
Dr. Cr.
Particulars Particulars
Balance Sheet
as on March 31, 2018
Amount Amount
Liabilities Assets
Capital 7,10,000
Add: Net Profit 1,19,773 Freehold Land 1,00,000
Less: Drawings 52, 450 7,77,323 Building 3,00,000
Sundry Creditors 63,000 Add: Wages 20,000
Salaries Outstanding 30,000 3,20,000
Manager’s Commission Payable 11,977 Less: 5% Depreciation 16, 000 3,04,000
Patents 75,000
Less: 20% Depreciation 15, 000 60,000
Machinery 2,00,000
Less: 10% Depreciation 20, 000 1,80,000
Closing Stock 68,000
Sundry Debtors 1,45,000
Less: Provision for Doubtful Debts 7, 250 1,37,750
Prepaid Insurance 850
Cash at Bank 26,300
Cash in Hand 5,400
8,82,300 8,82,300
Working Notes:
2
GST Set Off:
GST Payable/Receivable
=Output CGST+Output SGST-Input IGST=20,000+20,000-40,000=Nil
Hence, there will be no effect of GST on the Balance Sheet.
Question:29
Following is the Trial Balance of Atam Prakash as on 31st March, 2018:
Dr. Cr.
Heads of Accounts Balances Balances
Adjustments:
i
Stock on 31st March, 2018 was valued at 5,30,000.
ii
Salaries have been paid so far for 11 months only.
iii
Unexpired insurance is 1,000
iv
Commission earned but not yet received amounting to 1,220 plus IGST @ 12% is to be recorded in books of account.
v
Provision for Doubtful Debts is to be bought up 3% of Sundry Debtors.
vi
Manager is to be allowed a commission of 10% on net profits after charging such commission.
vii
Furniture is depreciated @ 10% p.a.
viii
Only one-fourth of advertisement expenses are to be written off.
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as on that date.
Solution:
Financial Statement of Atam Prakash
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
***
Profit and Loss Account
for the year ended March 31, 2018
Dr. Cr.
Amount Amount
Particulars Particulars
( )
1 12,500
Advertising Expenses 50, 000 × 4
( )
3 37,500
Advertisement Expenses 50, 000 × 4 146
GST Receivable
13,57,866 13,57,866
Working Notes:
WN1:
WN2: Advance for Furniture is for furniture of proprietor's residence. Therefore, it will transferred to drawings.
WN3: IGST on commission has not been received being accrued commission. Hence, GST of 146 has been taken as GST payable and second as GST receivable.
Question:30
Following balances were extracted from the books of Modern Traders on 31st March, 2018:
Particulars Particulars
Captial 8,50,000 Sales 12,00,000
Drawings 50,000 Postage and Telegrams 8,000
Plant and Machinery 4,00,000 Bad Debts 4,000
Accumulated 90,000 Provision for Doubtful 8,000
Depreciation Debts
Stock on 1st April, 1,50,000 Discount Received 4,000
2017
Purchases 8,20,000 Rent Revenue 12,000
Sundry Debtors 2,06,000 Insurance 7,000
Furniture 50,000 Salaries 2,00,000
Freight Inwards 20,000 Wages 13,000
Carriage Outwards 5,000 Cash in Hand 62,000
Rent, Rates and 46,000 Cash at Bank 2,55,000
Taxes
Printing and 8,000 General Reserve 50,000
Stationery
Sundry Creditors 95,000 Input IGST 20,000
Input CGST 15,000 Output IGST 45,000
Input SGST 15,000
Prepare Profit and Loss Account for the year ended 31st March, 2018 and the Balance Sheet as at that date giving effect to the following:
a
Closing Stock was 1,50,000.
b
Wages Outstanding were 5,000.
c
Provision for Doubtful Debts is to be maintained at 5% of Sundry Debtors.
d
Depreciate Plant and Machinery by 10% and Furniture by 5% on Straight Line Method.
e
Sundry Creditors include 10,000 due to Nayak who is also included in Sundry Debtors at 15,000.
f
New furniture for 12,000 was purchased on 1st April, 2017. Old furniture valued at 2,000 was exchanged and balance was paid by cheque. Purchase of furniture was recorded at the
net value of furniture, i.e., 10,000. The firm had purchased this furniture paying IGST @ 18%.
g
A fire occurred on 27th March, 2018 destroying stock costing 10,000, which were purchased paying CGST and SGST @ 9% each. Insurance company conveyed acceptance of claim of
7,500 on 10th April, 2018. Final accounts were prepared on 1st July, 2018.
Solution:
Financial Statement of Modern Traders
Trading Account
for the year ended March 31, 2017
Dr. Cr.
Amount Amount
Particulars Particulars
Rs Rs
Opening Stock 1,50,000 Sales 12,00,000
Purchases 8,20,000 Closing Stock 1,50,000
Freight Inwards 20,000
Wages 13,000
Add: Outstanding 5,000 18,000
Wages
Gross Profit (Balancing Figure) 3,42,000
13,50,000 13,50,000
Profit and Loss Account
for the year ended March 31, 2017
Dr. Cr.
Amount Amount
Particulars Particulars
Rs Rs
Postage and Telegrams 8,000 Gross Profit 3,42,000
Bad Debts 4,000 Discount Received 4,000
Add: Provision for Doubtful Debts 10,300 Rent Revenue 12,000
Less: Existing Provision 8, 000 6,300
Carriage Outwards 5,000
Rent, Rates and Taxes 46,000
Insurance 7,000
Less: Prepaid Insurance 1, 000 6,000
Salaries 2,00,000
Printing and Stationery 8,000
Depreciation on:
Machinery 45,000
Furniture 2,500 47,500
Net Profit (Balancing Figure) 31,200
3,58,000 3,58,000
Balance Sheet
as on March 31, 2017
Amount Amount
Liabilities Assets
Rs Rs
Capital 9,00,000 Plant and Machinery 4,50,000
Less: Accumulated Depreciation
Less: Drawings 50, 000
90, 000 + 45, 000 1, 35, 000 3,15,000
Add: Net Profit 31,200 8,81,200 Furniture 50,000
Reserve Fund 50,000 Less: 5% Depreciation 2, 500 47,500
Sundry Creditors 90,000 Closing Stock 1,50,000
Wages Outstanding 5,000 Sundry Debtors 2,06,000
Less: Provision for Doubtful Debts 10, 300 1,95,700
Prepaid Insurance 1,000
Cash at Bank 2,55,000
Cash in Hand 62,000
10,26,200 10,26,200
Note: Advance paid by proprietor for Plant and Machinery out of his personal bank account will increase the Capital A/c and Plant & Machinery A/c balance by Rs 50,000. And also
increase in the amount of depreciation by Rs 5,000.
Question:31
On 31st March, 2018 the following Trial Balance was extracted from the books of Mohan:
Debit Credit
Particulars Balances Balances
Capital 3,00,000
Plant and Machinery 50,000
Debtors 2,00,000
Creditors 1,00,000
Loan 95,000
Interest on Loan 3,000
Cash 20,000
Provision for Doubtful Debts 7,000
Stock on 1st April, 2017 68,000
Motor Vehicles 1,00,000
Bank 35,000
Land and Building 1,20,000
Bad Debts 5,000
Purchases 6,60,000
Sales 11,00,000
Purchases Return 15,000
Sales Return 80,000
Carriage Outwards 25,000
Carriage Inwards 30,000
Salaries 90,000
Rent and Insurance 30,000
Advertising 35,000
Discount Received 5,000
General Expenses 34,000
Bills Receivable 60,000
Bills Payable 20,000
Rent Received 3,000
Total 16,45,000 16,45,000
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as at that date after taking into account the following:
a
Stock as at 31st March, 2018 was valued at 70,000.
b All debtors are considered good for recovery.
c Depreciate Motor Vehicles by 20%.
d Bank intimation of customer's cheque of 10,000 being dishonoured is not recorded in the books.
e Travelling expenses of 5,000 paid to sales person was wrongly debited to his Personal Account and was included in debtors.
f Amount of 6,000 received from Ronit was credited to his account and was included in creditors. This amount was written off as bad debt in earlier years.
g
Drawings included an amount of 2,000 being amount drawn in cash. It was used by Mohan for Purchase of stationery used in business.
Solution:
Trading Account
for the year ended March 31, 2018
Dr. Cr.
Particulars Amount Particulars Amount
Balance Sheet
as on March 31, 2018
Dr. Cr.
Amount Amount
Liabilities Assets
Creditors 1, 00, 000– 6, 000 94,000 Cash at Bank 35, 000– 10, 000 25,000
Capital 3,00,000 Cash in Hand 20,000
Less: Drawings 48,000 Motor Vehicles 1,00,000
Add: Net Profit 1,19,000 11,15,200 Less: Depreciation 20,000 80,000
Loan 95,000 Debtors 2,00,000
Bills Payable 20,000 Less: Travelling Expenses 5,000
Add: Dishonour 10,000 2,05,000
Closing Stock 70,000
Land & Building 1,20,000
Bills Receivable 60,000
Proc es s ing math: 100%
5,80,000 5,80,000
Contrib