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Illustration 1

From the following Trial balance prepare final accounts for the year ended 31 st March2010 for Naresh &Co.

Particulars LFNo. DebitIn Rs. CreditIn RsCapital & Drawings 3,500 16,000Purchase & Sales 65,800 95,200Goods Return 1,200 1,800Building 20,000Furniture 11,000Salary 3,000Wages 1,200Salary Payable 250Commission 450

Cash 700Bank 1,100Creditors & Debtors 9,000 9,800Opening Stock of goods 8,000Discount 600 300Bills Payable 1,800Bad Debt 400Advance Wages 100

On 31 st March 2010 Closing Stock is Rs. 19,200.

(Ans: G.P. Rs.40,000, N.P. Rs.36,750)

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Illustration 2

From the following transaction prepare final accounts for P. H. Traders for the yearended 31 st march 2009

Trial balance as on 31-3-2009Particulars Debit

AmountRs.

Particulars CreditAmount

Rs.Drawing 5,000 Capital 50,000Stock on 1-4-2008 73,000 Sales 1,30,000Purchase 61,600 Purchase Return 1,800Sales Return 950 Discount 500Bad Debt 3,950 Bank 1,000Discount 250 Bills 3,350

Wages 1,000 18% Loan from Mr.X 3,000Postal Charges 2,950 Creditors 22,000Printing & stationary 5,000Office rent 6,000Cash 1,500Bills 2,700Carriage inwards 350Carriage Outwards 400Rent & Taxes 7,150Furniture 3,800Vehicle 12,500

Insurance Premium 550Debtors 19,000Railway Fare(for Goods) 500Salary 3,500Total 2,11,650 Total 2,11,650

Adjustments:

1. Closing Stock Rs. 65750

2. Salary payableRs. 13003. Advance insurance premium paid is Rs. 150

4. Commission receivable Rs. 200

5. Bad Debt Rs. 1000 occurred

6. Calculate depreciation 5 %on furniture & 10 % on vehicle

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5. Rs.1,000 bad debts are to be written off and bad debts reserve on debtors is to bemaintained @5%.

6. Shri Harikrishna has brought his personal furniture worth Rs4000 into the business ason 1/10/2008. It is not recorded in the books of account.

7. Interest on capital is to be calculated at 5%.

8. On 1/04/2008, one instrument with the original price of Rs.1200 was sold atRs.1000/-. This amount is included in the sales. The price of the sold furniture isRs.600 in the books.

(Answer: Gross Profit: Rs.85,960, Net Profit: Rs.30,710, Balance Sheet:2,87,860)

Illustration no. 4

Prepare the final accounts for the year 2009-10 from the following trial balance of P.H. Mehta, after taking into account the adjustments.

Debit Balance AmountRs.

Credit Balance Amount Rs.

Drawings account 2000 Capital account 50,000

Adjusted purchases 6,99,200 Sales 7,40,000

Salary 1,200 Discount 500

Carriage on purchases 400 Creditors 20,500

Carriage on sales 500

Electricity expenses 300

Insurance and taxes 400

Building 30,000

Furniture - Fittings 6,000

Misc. Debtors 8,000

Petty Cash 50

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Bank Balance 1,700

Closing Stock 61,250

8,11,000 8,11,000

Adjustments:

1) Rs.500 was debited to drawings account, it should have been debited to furnitureaccount.

2) Rs.1,000 is debited to purchases, which is purchase materials for building.

3) Rs.500 was brought into the business by the proprietor, which is credited to salesaccount.

4) Depreciation should be calculated Rs.750 on building and 6% on furniture.

5) Write off bad debts RS.100 and bad debts reserve is to be maintained @ 5% ondebtors.

6) Outstanding salary Rs.200, prepaid taxes Rs.60, Prepaid insurance Rs.100 andcarriage inward to be paid on purchases is Rs.100.

(Ans. G.P. 40,800 N.P. 1,110 B/S 1, 07,055)

Illustration no.5

Prepare the trading account and profit and loss account for the year ended on31/03/2011 and the balance sheet as on that date of Shri Mohanlal from the

following trial balance and the adjustments.

Name of the Accounts Debit

Balance

Rs.

Credit

Balance

Rs.

Stock of Goods (01/04/2010) 12,000Stock of Goods (31/03/2011) 14,000

Bank and Cash 1,000 8,000

Creditors and Debtors 24,000 14,000

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Octroi 5,000

Trade expenses 7,000

Capital and Drawings 4,000 20,000

Goodwill 15,000

Furniture and Fittings 17,000

Stocks of packing materials (31/03/2011) 2,000

Goods given as sample 1,000

Purchases and Sales 41,000 1,00,000

Advertisement expenses 1,000

1,43,000 1,43,000

Adjustments:

1) Personal expense of Rs.100 is debited in trading account by mistake.

2) The total of sales book for 31 st March, 2011 is by mistake overcast by Rs.1000.

3) During the current accounting year one debtor Ashokbhai for Rs.4000 included inthe debtors was declared insolvent and a dividend @ 25 paise per rupee from hisassets is declared finally but no entry is passed for that. It is decided to maintainreserve for doubtful debts at 5% on debtors.

4) Fittings of the book value of Rs.2,000 is discarded as useless for which no entry is passed in the books.

5) The court has sanctioned a claim of Rs.2000 to a customer for non-fulfillment of acontract to supply the goods,

6) Outstanding octroi Rs.1000 are debited to octroi account, but outstanding octroiaccount is not written in the trial balance.

(Ans. G..P.: 42,000 N.P.: 26,100 B/S 67,000)