Final Account of Joint Stock Company

Final Account of Joint Stock Company P & L Account (31-3-2007) 15,030

1. The following balances appeared in the books of the Dividend Paid 9,000
Sunflower Co. Ltd. As o 31st March, 2008 Capital: Subscribed and fully paid 1,00,000
Particulars Rs. Rs. Sundry Debtors and Creditors 37,500 17,500
Issued, Subscribed and Paid-up Preliminary Expenses 15,000
Capital 6,00,000 Plant and Machinery 29,000
General Reserve 2,50,000 Calls in arrears 500
Unclaimed Dividend 6,526 Cash in hand & at Bank 16,200
Trade Creditors 36,858 Goodwill 25,000
Building at Cost 1,50,000 Reserve 16,000
Purchases 5,00,903 Bad debts 4,830
Sales 10,83,947 10% Debentures (issued on 30/9/07) 40,000
Manufacturing Expenses 3,59,000 5,43,530 5,43,530
Establishment Charges 26,814 Prepare Trading and P & L Account for the year ending 31 st
General Charges 31,078 March 2008 and Balance Sheet as on that date considering the
Machinery at Cost 2,00,000 following adjustment:
Motor Vehicle at Cost 30,000 a. The stock on 31st March 2008 Cost Rs. 82,000
Furniture at Cost 5,000 b. Depreciation on Machinery @ 10%
Opening Stock 1,72,058 c. Provide 5% Discount on Creditors
Book Debts 2,23,380 d. One month rest Rs. 450 was due on 31st March 2008
Investment 2,88,950 e. Insurance unexpired Rs. 380 included in general exp.
Depreciation Reserve 71,000 f. Provide for half year’s Debenture interest.
Advance Payment of Income Tax 50,000
Cash Balance 72,240 3. The Mumbai Trading Co. Ltd. showed the following
Directors Fees 1,800 balances as on 31st March 2009
Interest on Investment 8,544 Particulars Rs. Rs.
P & L Account (1/4/2007) 16,848 Land and Building 90,000
Staff Provident Fund 37,500 Plant and Machinery 1,65,600
21,11,223 21,11,223 Loose Tools 12,400
From these balances and the following information, prepare Furniture and Fitting 3,600
the company’s Balance Sheet as on 31 st March, 2008 and its Preliminary Expenses 4,000
P& L A/c for the year ended on that date: Calls in arrears 1,500
a. The stock on 31st March, 2008 were valued at Rs. Cash in hand 500
1,48,680. Government Bonds 9,880
b. Provide Rs. 10,000 for depreciation on fixed assets, Rs. Bills Receivable 14,000
1,800 for Managing Director’s Remuneration and Rs. Goodwill 16,000
6,200 for the company’s contribution to Staff Provident Sundry Debtors 20,800
Fund. Sundry Creditors 30,600
c. Interest accrued on investment amounted to Rs. 2,750 Reserve Fund 15,000
d. A provision of Rs. 50,000 for taxes in respect of the P & L Account (1/4/2008) 8,800
profit for 2007-08 is considered necessary. Bank Overdraft 11,180
e. The directors propose a final dividend @ 8% after Purchase and Return Outward 2,40,000 5,000
transfer to General Reserve Rs. 30,000 Salaries 6,400
f. A claim of Rs. 2,500 for workmen compensation is being Sales Return and Sales 7,000 3,07,800
disputed by the company Legal Charges 800
g. Corporate Dividend Tax @ 10% is to be provided. Carriage inwards 3,700
Wages 23,200
2. The following is the trial balance of Hindustan Co. Ltd. As Rent, Rates and Insurance 4,900
on 31st March 2008, The company was registered with Share Capital 2,00,000
nominal capital of Rs. 4,00,000 in equity shares of Rs. 10 6% Debentures 1,00,000
each. Stock 1/4/2008 47,600
Particulars Rs. Rs. Trade Expenses 1,500
Stock 75,000 Interim dividend paid 5,000
Sales 3,50,000 6,78,380 6,78,380
Purchases 2,45,000 Prepare Trading, Profit and Loss Account and Balance Sheet
Wages 50,000 considering the following adjustments:
Discount 7,000 5,000 a. Create a provision for Bad debts of 5% on debtors
Salaries 7,500 b. Charge 5% depreciation on plant and machinery, 7½ on
Rent 4,950 furniture and fittings & on loose tools 1,540.
General Expenses 17,050
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 Final Account of Joint Stock Company
c. The stock in trade at 31 March 2009 was valued at Rs.
st
Coal, Gas and Water 2,500
44,700. Octroi 1,750
Salaries 4,220
4. Following are the balances of Raja Ltd. As on 31 st March Directors fees 420
2008 Bad debts 250
Particulars Rs. Particulars Rs. Interest on Debentures 600
Share Capital 40,00,000 Premises 30,72,000 2,82,120 2,82,120
12% Debenture 30,00,000 Plant 33,00,000 Adjustment:
P & L A/c 2,62,500 Stock 7,50,000 a. Closing stock on 31st March 2008 was Rs. 8,075.
Bills Payable 3,70,000 Debtors 8,70,000 b. Depreciate Machinery by 10% p.a. and patent by
Creditors 4,00,000 Goodwill 2,50,000 10% p.a. (both on cost)
Sales 41,50,000 Cash & Bank 4,06,500 c. R.D.D. to be maintained at 5% on debtors.
Gen. Reserve 2,50,000 Call-in-arrears 75,000 d. Write off 25% of Preliminary Expenses.
R.D.D. 35,000 Interim Dividend 3,92,500 e. Transfer Rs. 1,500 to Debenture Redemption fund
Purchases 18,50,000 f. Half year’s interest to be provided on debenture.
Preliminary Exp. 50,000
Wages 9,79,800 6. Kapilansh Ltd. has an authorized and subscribed capital
General Exp. 68,350 divided into equity shares of Rs. 100 each. The following is
Salaries 2,02,250 the trial balance of the company on 31st March, 2008:
Bad Debts 21,100 Particulars Rs. Particulars Rs.
Debenture Land & Bldg. 3,40,000 Share Capital 8,00,000
1,80,000 Plant & Mach. 6,60,000 Sundry Creditor 1,23,600
Interest Paid
1,24,67,500 1,24,67,500 Loose Tools 40,000 Reserve Fund 60,000
Additional information:- Preliminary Exp 20,000 P & L A/c
35,400
a. Depreciate Plant by 15%. Furniture 29,000 (1/04 /2007)
b. Write off Rs. 5,000 from Preliminary Expenses. Calls in Arrears 6,000 Return outward 20,000
c. Half year’s Debenture Interest due. Cash in hand 2,000 Sales 12,30,000
d. Create 5% Provision for doubtful debts on debtors. 5% Govt. Bond 6% Debenture 4,00,000
36,000 Bank overdraft
e. Provide for Income tax @ 50%. (f.v. Rs. 40,000) 50,000
f. Stock on 31st March 2008 was Rs. 9,50,000. Bills Receivable 58,000
g. A claim of Rs. 25,000 for workmen’s compensation Goodwill 36,000
is being disputed by the company. Motor Cars 40,000
Prepare Final Accounts. Sundry Debtors 83,000
Interim Dividend 18,000
5. Trial Balance of a Modern Company Ltd. On 31st March, Repairs 3,000
2008 is given below, prepare Final Account: Return inward 28,000
Particulars Rs. Rs. Advertisement 10,000
Calls in Arrears 500 Audit Fees 4,000
Land 50,000 Purchases 9,60,000
Machinery (Cost Rs. 50,000) 42,000 Carriage inward 15,000
Patent (Cost Rs. 25,000) 19,150 Wages 92,000
Furniture 1,525 Insurance 20,000
Stock (1st April 2007) 19,000 Stock (1-4-07) 1,90,000
Interim Dividend 2,500 General Expense 17,000
Issued Share Capital 80,000 Interest on Deb. 12,000
4% Debentures 30,000 27,19,000 27,19,000
Profit & Loss A/c (1/04 /2007) 5,140 Additional Information:
Sundry Debtors 27,700 a. Stock on 31-3-08 was valued at Rs. 1,80,000.
Cash in Hand & at Bank 9,250 b. R.D.D. is to be provided at 5% on Debtors.
Purchases 63,655 c. Depreciate is to be provided on Plant & Machinery
Bills Payable 9,000 5%, on furniture at 10%, on Motor Cars at 20% and
Sundry Creditors 17,700 loose tools at 15%.
Sales 1,31,850 d. Prepaid insurance Rs. 2,000.
Discount Received 1,380 e. Reserve fund is to be increased by Rs. 10,000.
Preliminary Expenses 800 f. Directors declared on 31-12-07 an Interim Dividend
Investment 5,000 for 6 months ending 30th Sept. 07 @ 3%.
Wages 29,500 g. Wages outstanding Rs. 3,000.
Repairs 1,800 h. Provide for interest on Debenture for 6 months.
Debenture Redemption Fund 5,200 i. Provision for taxation is to be made at 50% on net
Reserve for Doubtful Debts 1,850 profit.
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 Final Account of Joint Stock Company
Prepare Final Accounts. incl. insurance
Postage 200
7. The Arun Manufacturing company Ltd. was registered with Interim Dividend 10,000
an authorized capital of Rs. 10,00,000 divided into shares of Call in arrears 2,000
Rs. 10 each of which 40,000 shares had been issued and fully Sundry Debtors 50,000
paid. The following is the Trial Balance as on 31st March, Plant & Mach. 87,750
2008: Cash in Hand 5,600
Particulars Rs. Rs. Interest on Deb. 2,500
Stock (1st April, 2008) 1,86,420 -- 4,79,500 4,79,500
Purchases and Sales 7,18,210 11,69,900 Additional information:
Returns 12,680 9,850 a. Closing Stock was valued at Rs. 50,000.
Manufacturing Wages 1,09,740 -- b. Debtors include Rs. 1,000 as advance for expense.
Sundry Manufacturing Expense 19,240 -- c. Provide 5% on debtors for doubtful debts. Also provide
Carriage inward 4,910 -- 2.5% for discount on debtors and creditors.
18% Bank Loan (Secured) -- 50,000 d. One month’s rent @ Rs. 1,800 per annum was due on 30th
Interest on Bank Loan 4,500 -- June 2008.
Office Salaries and Expenses 17,870 -- e. Insurance was paid on 1st Jan 08 for one year Rs. 2,000.
Auditors Fees 8,600 -- f. Transfer Rs. 5,000 to Debenture Redemption Fund.
Director’s remuneration 26,250 -- g. Provide Depreciation on Building @ 10% p.a.
Preliminary Expenses 6,000 -- h. Amount of Rs. 400 and Rs. 300 debit to purchase and
Free-hold Premises 1,64,210 -- wages resp. were for making a new plant and machinery
Plant & Machinery 1,28,400 -- during the year.
Furniture 5,000 --
Loose Tools 12,500 -- 9. XYZ Co. Ltd. started its business on 1 st April 2007. You
Debtors and Creditors 1,05,400 62,220 have been given the following information. You are
Cash in hand 19,530 --
required to prepare Trading Account, P & L A/c and
Cash at Bank 96,860 --
Advance Payment of Tax 84,290 -- Balance Sheet.
Profit & Loss A/c -- 38,640 Particulars Rs. Particulars Rs.
Share Capital -- 4,00,000 Stock (1/4/07) 44,000 Sales 3,20,000
17,30,610 17,30,610 Purchases 1,70,000 Sundry Creditors 40,000
Additional Information Return inward 10,000 Bank Loan 32,000
a. On 31st March, 2008, Outstanding Manufacturing Wages Carriage Expense 4,000 Share Capital 1,60,000
and Outstanding Office Salaries stood at Rs. 1,890 and Steam Power 6,000 Commission recd. 4,000
Rs. 1,200 resp. On the same date, stock was valued at Rs. Wages 56,000
1,24,840 and Loose Tools at Rs. 10,000. Trade Expense 4,000
b. Provide for accrued interest on Bank Loan for 6 months. Sundry Debtors 72,000
c. Depreciate Plant & Machinery by 15% and Furniture by Salary 38,000
10%. Insurance 2,400
d. Write off 1/3 of balance of Preliminary Expenses. Postage 3,600
e. Make a provision for Income-tax @ Rs. 82,160. Commission 5,000
f. The directors recommended a dividend of 15% for the Plant & Mach. 60,000
year ending 31st March, 2008. Furniture 16,000
g. Assume 10% Corporate Dividend Tax. Prepare Final A/c Advertisement 8,000
Office Rent 10,000
8. Following is the Trial Balance of Hindustan Co. Ltd. on Dividend paid 20,000
Office Building 24,000
30th June 2008
Cash at Bank 3,000
Particulars Rs. Particulars Rs.
5,56,000 5,56,000
Stock 30,000 Sales 1,80,000
Additional information:
Building 1,50,000 Return outward 4,000
a. The stock was for the year ended 31st March 2008 was Rs.
Purchases 1,00,000 Discount Received 1,000
80,000 but its market value is Rs. 72,000.
Return inward 5,000 Transfer Fees 1,000
b. Depreciation on Plant and Building is 20% and 10% resp.
Productive wages 20,000 Commission 1,200
c. Insurance is paid for the year ended 31st Dec. 08
Carriage Inwards 1,500 P & L A/c (1/7/04) 12,000
d. Write off Rs. 2,000 as Bad Debts and provide for 5%
Carriage Outward 800 Share Capital 2,00,000
R.D.D.
Discount 1,200 Creditors 20,300
e. Interest on Bank Load 12% not yet paid.
Salary 5,000 10% Debenture 50,000
Rent 1,650 Debenture
10,000 10. Following is the Trial Balance of Prakash Co. Ltd. As on
Advertisement 800 Redemption Fund
31st March 2007, you are required to prepare Final Account.
Gen. Expense 5,500
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By Anup K Suchak
 Final Account of Joint Stock Company
Particulars Rs. Particulars Rs. Opening Stock 2,66,000
Land & Building 5,00,000 Equity Share 5,00,000 Sales 20,03,300
Stock 70,000 Capital(Rs. 10 each) Wages 5,07,400
Investment 2,00,000 Preference Share Return 31,500
1,00,000
Plant 3,00,000 Capital (Rs. 100 each) 35,78,700 35,78,700
Cash at Bank 62,200 Depreciation on: Additional information:
Debtors 50,000 Plant 1,00,000 a. Authorized Share Capital of the company is Rs.
Office Expenses 15,000 Building 1,50,000 30,00,000. It is divided in 15,000 Equity shares of Rs. 100
Rent and Taxes 6,000 General Reserve 10,000 each and equal number of Preference Shares of Rs. 100
Directors Fees 2,000 P & L A/c(31/3/08) 25,000 each.
Audit Fees (incl. Creditors 30,000 b. Charge Depreciation on Machinery at 10% and on Land
Rs. 1,000 for Law 2,500 Sundry Income 2,300 and Building 5%.
Expense) Dividend Received 10,000 c. Closing Stock was Rs. 3,82,300.
Remuneration to Gross Profit 3,04,400 d. Transfer Rs. 60,000 to Tax Reserve.
12,000
M.D. Bills Payable 35,000 e. Dividend @ Rs. 8 per share on equity shares and @ Rs.
Misc. Expense 6,000 Loan from ICICI 70,000 1.20 per share on preference shares was declared.
Income Tax (p.y.) 6,000 f. Provide 5% for doubtful debts.
Patents 50,000 12. From the following Trial Balance of ABCL as on 31 st
Bills Receivable 30,000 March, 2008, Prepare Final Accounts.
Adv. to Employee 20,000
Particulars Rs. Particulars Rs.
Carriage Outward 5,000
Fixed Assets 3,00,000 Creditors 1,00,000
13,36,700 13,36,700
Opening Stock 75,000 Bills Payable 5,600
Additional information: Debtors 2,05,000 Loan from Bank 50,000
a. Loan from ICICI taken @ 11.40% interest per annum. Bills Receivable 10,000 Share Capital 4,54,000
Company failed to pay interest regularly and bank Investments 50,000 Sales 6,30,000
charged additional 0.60% interest on the interest charged Cash in hand 5,000 Purchase Return 5,000
previously. Cash at Bank 10,000 Discount earned 1,000
b. The directors proposed 15% equity and 16% preference Patents 9,000 Baddebt recovered 3,500
dividend. Purchases 5,25,000 Interest received 3,000
c. Dividend Equilisation fund was increased by Rs. 15,000 Sales Return 10,000 Sales tax collected 2,000
with a new provision. Carriage 1,400 Apprentice
d. Transfer Rs. 15,000 to General Reserve. 425
Freight Outward 2,000 Premium received
e. Depreciate land and building by 10% & Plant by 15%. Octroi 1,600 Commission Recd. 375
f. The rent paid for three quarters and the balance yet not Primary Packing
paid. 2,000
Expenses
11. From the following balances taken from the books of Rent Paid 3,000
Harshad Industries Ltd. As on 31st March, 2008, Insurance Paid 3,600
Particulars Rs. Rs. Office Expenses 13,200
Land and Buildings 5,00,000 Discount allowed 2,000
Machinery 3,60,000 Bad debts 5,000
Goodwill 2,00,000 Interest on loan 2,500
Equity Share Capital (4,000 shares) 4,00,000 Delivery Exp. 6,600
Bills Receivable 5,33,800 Selling Expenses 10,000
Profit & Loss A/c 26,800 Income Tax Paid 1,000
Travelling Expenses 51,200 Loose Tools 2,000
Cash in hand 12,200 12,54,900 12,54,900
Dividend on preference shares 12,000 Additional information:
Patents 3,18,000 a. The cost of Closing Stock was Rs. 50,000 but its market
Purchases 5,25,000 value was Rs. 40,000.
Interest paid 16,400 b. Insurance unexpired on 31st March 2008 Rs. 900.
Directors fees 20,000 c. Rs. 1,250 is due for interest on Bank Loan.
Interest on Debentures 4,000 d. Rent outstanding Rs. 600.
Preference Share Capital (4,000 shares) 4,00,000 e. Provide for depreciation on Fixed Assets @ 10% p.a.
4% Debentures 2,00,000 f. 1/3 of the commission received is in respect of work to be
Debtors and Creditors 2,06,000 1,71,000 done next year.
Bills Payable 25,000 g. Loose Tools are valued at Rs. 800.
Audit fees 5,000 h. Accrued interest amounted to Rs. 1,500.
Bad Debts 10,200
Bank Overdraft 3,52,600 13. The XYZ manufacturing company limited was registered
with a nominal capital of Rs. 60,00,000 in Equity Shares of
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 Final Account of Joint Stock Company
Rs. 10 each. The following is the list of balance extracted from
its books on 31st March, 2008. 15. From the following Trail Balance prepare final account
Particulars Rs. Particulars Rs. for the year ended 31st March, 2008.
Calls in Arrears 75,000 Share Capital 40,00,000 Particulars Rs. Rs.
Premises 30,00,000 12%Debentures 30,00,000 Share Capital 1,70,000
Plant&Machinery 33,00,000 P & L A/c 2,62,500 Loose Tools 10,000
Int. Divon1/11/07 3,92,500 Bills Payable 3,70,000 Plant & Machinery 1,10,000
Stock on 1/4/07 7,50,000 SundryCreditors 4,00,000 Purchase and Sales 84,000 1,65,000
Fixtures 72,000 Sales 41,50,000 Returns 5,000 4,000
Sundry Debtors 8,70,000 GeneralReserve 2,50,000 Bad Debts 5,000
Goodwill 2,50,000 R.D.D. 35,000 Bad Debt Reserve 26,450
Cash in hand 7,500 Carriage inward 5,000
Purchases 18,50,000 Office and factory building 1,00,000
Cash at Bank 3,99,000 Carriage outward 7,000
Preliminary Exp. 50,000 Discounts 2,000 1,000
Wages 8,48,650 Commission 4,000 3,000
GeneralExpenses 68,350 Rent 3,000
Freight&Carriage 1,31,150 Rent from subletting 4,000
Salaries 1,45,000 Interest allowed & received 2,500 3,000
Directors Fees 1,80,000 Office expenses 6,000
Bad debts 57,250 Selling expenses 10,000
Debenture int. 21,100 Creditors 2,02,000
1,24,67,500 1,24,67,500 Debtors 2,15,000
Additional information: Bills Receivable 10,000
a. Stock on 31st March 2008 was Rs. 9,50,000. Bills Payable 5,600
b. Provide half years debenture interest due. Providend Fund 50,000
c. Provide for income tax @ 35%. Advance to Employees 20,000
d. Depreciate Plant and Machinery by 15%. Loans 1,00,000
e. Provide R.D.D. on debtors at 5%. Investment 50,000
f. Write off Rs. 5,000 from Preliminary Expenses. Opening Stock 54,000
Cash in Hand 5,000
14. Following balances are extracted on 31st March 2008 Cash at Bank 45,550
from the books of Vishal Ltd. Bank Overdraft 20,000
Particulars Rs. Particulars Rs. Wages & Salaries 1,000
Premises 2,25,000 Share Capital: 7,54,050 7,54,050
Plant at cost 1,74,580 7,500, 5% Pref. Adjustments:
75,000 a. Stock on 31st March 2008 was valued at Rs. 61,500.
Debtors 60,890 Shares of Rs. 10
Bad Debts 1,425 15,000 7% Pref. b. Manager is entitled to a commission of 5% of net profit
1,50,000 after charging the commission.
Rent & Taxes 14,200 Shares of Rs. 10
Advertising 9,750 25,000 Equity c. Provide for Depreciation on Plant and Machinery @ 10%
2,50,000 p.a. and Building @ 15%.
Cash & Bank 25,000 Shares of Rs. 10
Directors Fees 1,800 P & L A/c 8,120 d. Office Building of Rs. 40,000 was acquired on 31 st
Audit Fees 5,000 Capital December 2007.
32,500 e. Directors propose to declare a dividend of 10% on Equity
Closing Stock 72,300 Redemp. Fund
Prepaid Rent 3,990 Gross Profit 1,05,820 Capital.
Office Salaries 16,000 R.D.D. 4,500 f. Directors propose to transfer a sum of Rs. 3,500 to
Motor Lorries 36,500 Sundry Creditor 39,820 General Reserve.
Motor Lorries Transfer fees 55 g. Directors propose to transfer Rs. 2,500 to dividend
5,500 equalization reserve.
Purchased in ‘08 Accrued Wages 6,420
5% Pref. Dividend 3,750 Staff Benovolent
8,950 16. VSPM Co. Ltd. Was registered with a nominal capital of
7% Pref. Dividend 10,500 Fund
Equity Dividend 7,500 Rs. 10 crore divided into shares of Rs. 10 each of which 40
Discount on issue lakh shares had been issued and fully called. The following is
7,500
of shares the Trial Balance extracted on 31st March 2008.
6,81,185 6,81,185 Particulars Rs. Rs.
The provision for doubtful debt is to be made up to Rs. 5,100. Stock (1st April 2007) 18,642
The factory premises and Plant are to be depreciated by 2% Manufacturing Wages 10,974
and 10% resp. The authorized capital of the company is Rs. Manufacturing Expenses 1,924
5,00,000 divided into 50,000 shares of Rs. 10 each. Prepare Purchases and Sales 71,821 1,16,990
Final Account. Machinery Repairs 861
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 Final Account of Joint Stock Company
Carriage inwards 491 Security Deposits 4,000
Carriage outwards 926 Liabilities for Expenses 3,500
Advance payment of income-tax 1,429 Secured Loans 25,000
18% Bank Loan 5,000 Closing Stock 35,000
Interest on Loan 450 1,97,000 1,97,000
Debtors and Creditors 16,440 9,222 Additional information:
Profit & Loss A/c (1/4/2007) 864 a. Share capital comprises of 5,000 equity shares of Rs. 10
Bank Current Account 10,686 each, fully called up and 5,00,000, 8% Preference Shares
Cash in hand 192 of Rs. 100 each fully called up.
Leasehold Factory 16,421 b. Rs. 900 are to be transferred to statutory reserve.
Plant & Machinery 12,840 c. The Managing Director is entitled to receive 5% of the net
Loose Tools 1,250 business profit, prior to charging such commission, as his
Share Capital 40,000 commission.
Calls in Arrears 100 d. Charge depreciation @ 15% on plant, 10% on furniture
Rates and Electricity 1,761 and 20% on lorries.
(Factory Rs. 1,421 & Office Rs. 300) e. Provide Rs. 7,608 for Taxation.
Directors Fees 1,200 f. Recommendation for payment of dividend on preference
Office Salaries 125 shares had been made. Prepare Final Accounts.
Auditor’s Fees 500
Commission 860 18. From the following information, prepare Final A/c
Returns 1,264 981 Particulars Rs. Particulars Rs.
Preliminary Expenses 600 Cash in hand 40,000 Equity Share Cap. 35,00,000
1,73,057 1,73,057 Cash at Bank 4,00,000 Redeemable Pref.
Additional information:- 1,50,000
5% Govt. Bonds Share Capial
a. Manufacturing wages Rs. 189 and office salaries Rs. 120 5,00,000
(M.V. Rs.4,80,000) Share Premium 1,00,000
had accrued due. Stock in Trade 6,00,000 General Reserve 1,70,000
b. Provide Rs. 850 on Debtors for Doubtful Debts. Sundry Debtors 3,30,000 Cap. Redemption
c. Make a provision for Income Tax @ 40%. 80,000
Bills Receivable 20,000 Reserve
d. Depreciation is to be provided on Plant & Machinery 15% Establishment Exp. 6,00,000 Commission 15,000
and office furniture 10%. Travelling exp. 7,000 Int. on Investment 25,000
e. The stock was valued at Rs. 12,484 and loose tools at Rs. Rates and Taxes 6,000 Gross Profit 26,00,000
1,000. Insurance 17,000 Sundry Creditors 65,000
f. Write off one third of preliminary expenses. Advertisement 10,000 Bills Payable 15,000
g. Provide for Interest on Bank Loan for 6 months. General Expenses 1,50,000 P & L A/c 65,000
h. The directors recommend dividend at 15% for the year Adv. Income Tax 5,00,000 Unpaid Dividend 10,000
ending 31st March 2008 after transferring 5% of net profit Depreciation 2,00,000 O/S Advertising 5,000
to General Reserve. Tax paid for 2007 3,00,000 O/S Gen. Exp. 15,000
i. Make provision for Corporate Dividend Tax @ 10%. Pref. Share 1,65,000 Prov. For Tax
2,00,000
Redemption A/c For 2007
17. Following balances extracted from the books of Jagdeesh Land & Building 10,00,000
Ltd. For the year ended 31st March 2008 Plant & Machinery 20,00,000
Particulars Rs. Rs. Van 50,000
Share Capital 1,00,000 Furniture & Fixture 1,00,000
Statutory Reserve 1,350 Discount 15,000
Plant (WDV) 15,000 Director’s fees 5,000
Furniture (WDV) 4,000 70,15,000 70,15,000
Lorries (WDV) 8,000 Additional information:
Sundry Debtors 60,000 a. Provide 7% dividend on equity share capital. Provide for
Sundry Creditors 11,000 corporate dividend tax @ 10%.
Share Forfeiture A/c 500 b. The income tax liability for 2007 was determined at Rs.
Selling Expenses 10,000 3,00,000.
Rent & Taxes 8,000 c. Directors are entitled to a remuneration of Rs. 84,000.
Administrative Expenses 11,000 d. Transfer Rs. 89,600 out of profits to General Reserve.
Legal Expenses 1,000 e. Provision is to be made for income-tax at 60% of Profits.
Advance payment of Income Tax 9,000 f. Establishment charges include Rs. 50,000 towards
Gross Profit 54,150 payment made to Directors for their remuneration.
Profit & Loss A/c 1,500 g. The preference shares were redeemed on 1/1/08 at a
Payment under V.R.S. 2,000 premium of 10%, but the same has not been given effect
Cash with H.O. and Branches 2,500 to except that the payment made was debited to
Bank Balance 27,500 preference share redemption A/c.
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By Anup K Suchak
 Final Account of Joint Stock Company
4,26,800 4,26,800
19. Following is the Trial Balance and the adjustment
given of a Shekhavat Ltd., prepare Final Accounts. Additional information:
Particulars Rs. Particulars Rs. a. Stock on 31st March 208 was valued at Rs. 29,200 &
Furniture 30,000 Share Capital 4,00,000 Loose tools at Rs. 1,900.
Land & Building 4,74,000 General Reserve 1,90,000 b. Write off Rs. 1,200 as bad debts and provide R.D.D. at
Plant 1,60,000 Share Premium 40,000 5% on Sundry Debtors.
Directors fees 4,800 BadDebt recovered 3,000 c. Create reserve for discount on debtors & creditors @ 2%.
Selling Expenses 24,000 6% Debentures 4,00,000 d. Charge depreciation on furniture & fixture@ 5% p.a. and
Sinking Fund P & LA/c(1/4/07) 10,000 on plant and machinery @ 2%.
81,600 e. A fire took place in a godown on goods of Rs. 10,000 was
Investment Sinking Fund 81,600
Calls-in-Arrears 6,000 Sundry Creditors 46,000 destroyed insurance admitted the claim in full.
Bad-debts 4,000 Int. on Sinking
11,000 21. From the following information prepare final accounts of
Sundry Debtors 2,90,000 Fund Investment
Audit fees 2,000 Liabilities for Exp 8,000 Super Computers Ltd.
Advance to Worker 24,000 Gross Profit 3,40,000 Particulars Rs. Particulars Rs.
Income tax paid 16,000 Other Liabilities 4,500 Land & Building 55,000 Share Capital 1,78,000
Closing Stock 1,30,000 Salary Unpaid 2,000 Machinery 40,000 Sales 2,80,000
Cash / Bank 1,37,500 Employees Salary & wages 21,000 Return outward 5,500
1,58,000 Cash at Bank 45,000 Creditors 35,000
Debenture Interest 24,000 Providend Fund
Preliminary Exp. 10,000 Sundry Incomes 20,000 Cash in hand 1,100 Bills Payable 33,000
Insurance 10,000 10% Bank Loan 1,80,000 Return inward 2,000 Public Deposits 50,000
Goodwill 50,000 Office expenses 1,000
Motor Van 3,00,000 Motor Vans 18,000
Salaries 1,16,200 Carriage 5,000
18,94,100 18,94,100 Purchases 2,20,000
Additional information: Bad Debts 1,000
a. R.D.D. is to be made at 5% on Sundry debtors. Debtors 32,800
b. Depreciation to be provided on Plant @ 10%, Building @ Rent 1,100
10% and Furniture @ 10%. Printing 1,500
c. Prepaid Insurance Rs. 2,000. Travelling Exp. 5,500
d. General Reserve is to be increased by Rs. 20,000 Stock (1/4/07) 30,000
e. Salary outstanding Rs. 4,000 Insurance 1,500
f. Provision for taxation is to be made at 50% of Net Profit. Discount 8,000
Advertisement 12,000
20. From the following information prepare Final Accounts. Furniture 30,000
Particulars Rs. Rs. Freehold Property 50,000
Share Capital 1,60,000 5,81,500 5,81,500
Loan to Employees 12,000 Additional information:
Plant & Machinery 50,000 a. Closing stock was valued at Rs. 41,000.
(Addition made on 1/10/2007) b. Outstanding Expenses: Rent Rs. 100 & Salary Rs. 500.
Opening Stock 30,000 c. Provide depreciation at 10% on machinery and 5% on
Purchases 1,64,000 furniture.
Returns 4,000 2,000 d. Freehold Property was valued at the end of financial year
Sundry Debtors & Creditors 41,200 20,000 Rs. 48,000.
Furniture & Fixtures 8,000 e. Provide Rs. 800 for reserve for doubtful debts.
Freight and Duty 4,000 f. A liability of Rs. 1,500 is yet not paid.
Carriage outwards 1,000 g. A general reserve of Rs. 6,000 is necessary to be created.
Rent, Rates & Taxes 9,200
Printing & Stationery 1,600 22. From the following information prepare Final
Trading Expenses 800 Account
Sales 2,40,000
Particulars Rs. Particulars Rs.
Postage & Telegram 1,600
Stock on 1/4/08 Sales of Flour 55,50,000
R.D.D. 800
Wheat 95,000 Rent 4,000
Discount 1,600
Flour 1,60,000 Unclaimed 9,000
Rent from Sublet Premises 2,400
Rates & Taxes 25,000 Dividend
Insurance 1,400
Insurance 57,000 R.D.D. 10,000
Salaries & Wages 42,600
Misc. Expenditure 2,50,000 Loan 5,38,000
Cash in hand & Bank 53,400
Wages 4,30,000
Loose tools 2,000
Providend Fund 50,000
7
By Anup K Suchak
 Final Account of Joint Stock Company
Contribution Machinery 3,31,200 Creditors 61,200
Staff Welfare Exp 1,00,000 Loose Tools 18,800 Reserve Fund 30,000
Book Debts 3,21,000 Furniture 7,200 P & L A/c 17,600
Advance Tax 1,96,000 Preliminary Exp. 9,800 Bank Overdraft 22,360
Wheat Purchases 40,50,000 Cash 1,000
Power & Fuel 75,000 5% Govt. Bonds 19,760
Stores Consumed 2,20,000 Bills Receivable 7,200
Director’s Fees 2,000 Motor 26,000
Managing Director 80,000 Goodwill 32,000
Remuneration Debtors 41,600
61,11,000 61,11,000 Advertisement 5,080
Additional information:- Audit fee 2,000
a. Stock on 31st March 2008 were:- Wages 58,800
a. Wheat Rs. 1,49,000 Insurance 9,800
b. Flour Rs. 2,17,000 General Expenses 8,600
b. Outstanding:- Wages Rs. 56,000, Misc. Exp. Rs. 20,000 Repairs 1,720
and Rates and taxes Rs. 5,000. Interim Dividend 12,000
c. Insurance prepaid Rs. 7,000. 13,37,760 13,37,760
d. Make a provision for R.D.D. @ 5% on Book Debts. Additional information:
a. Closing Stock was Rs. 1,08,400.
23. From the following information of Baroda co. b. Provide R.D.D. 5% on debtors.
prepare Final Accounts: c. Depreciate Machinery 5%, Furniture 7.5%, Loose tools
Particulars Rs. Particulars Rs. 10% and Motor 20%.
Land and Building 90,000 Sundry Creditors 30,600 d. Directors have proposed 8% final dividend.
Plant & Machine 1,65,600 Reserve Fund 15,000
Loose Tools 12,400 P & L A/c 8,800 25. The following are the balances of Khan & Co. Ltd.:
Furniture & Fitting 3,600 Bank Overdraft 11,280 Particulars Rs. Particulars Rs.
Preliminary Exp. 4,000 Return Outward 5,000 Premises 30,72,000 Share Capital 40,00,000
Calls in Arrears 1,500 Sales 3,12,800 Plant 33,00,000 Debenture 30,00,000
Cash in hand 500 Share Capital 2,00,000 Stock 7,50,000 P & L A/c 2,62,500
Govt. Bonds 9,880 6% Debentures 1,00,000 Debtors 8,70,000 Bills Payable 3,70,000
Bills Receivable 14,000 Goodwill 2,50,000 Creditors 4,00,000
Goodwill 16,000 Cash at Bank 4,06,500 Sales 41,50,000
Sundry Debtors 20,800 Calls in arrears 75,000 General Reserve 2,50,000
Purchases 2,40,000 Interim Dividend 3,92,500 R.D.D. 35,000
Salaries 6,400 Purchases 18,50,000
Sales Return 7,000 Preliminary Exp. 50,000
Legal Charges 900 Wages 9,79,800
Carriage inwards 3,700 General Expense 68,350
Wages 23,200 Salaries 2,02,250
Rent & Rates 4,900 Bad Debts 21,100
Opening Stock 47,600 Debenture int. 1,80,000
Trade Expenses 1,500 1,24,67,500 1,24,67,500
Interim Dividend 5,000 Adjustments:
6,78,480 6,78,480 a. Depreciate plant by 15%.
Additional information: b. Write off Rs. 5,000 from Preliminary Expenses.
a. Create provision for bad debts at 5% on Debtors. c. Outstanding interest on Debenture Rs. 1,80,000.
b. Charge 5% depreciation on Plant & Machinery, 7½% on d. Create 5% provision for Doubtful Debts on Debtors.
Furniture & Fittings and Loose Tools Rs. 540. e. Provision for Income Tax Rs. 1,80,000.
c. The stock in trade on 31st December 2008 was valued at f. Stock on 31st March 2008 was Rs. 9,50,000.
Rs. 54,700. Prepare Final Accounts of the Khan & Co.
d. Make a provision for Taxation Rs. 6,000.
e. The directors have recommended a final dividend of Rs.
10,000.

24. Following are the balances of Uma Co. Ltd.

Particulars Rs. Particulars Rs.
Opening Stock 95,200 Sales 6,01,600
Purchases 4,70,000 Share Capital 4,00,000
Land & Building 1,80,000 6% Debentures 2,00,000
8
By Anup K Suchak