Financial Statements

Q1 From the following calculate the gross profit Stock (1-4-2006) 10,500Purchases 31,500Sales 53,000Purchase return 1,500Carriage inward 2,000Sales return 3,000Stock (31-3-2007) 6500

(GP: 14,000)

Q2 Prepare a trading account of DCM for the year ending 31st March 2007Stock (1-4-2006) 15,000Purchases 63,000Sales 1,14,000Purchase return 3,000Carriage 2,000Wages 9,000Factory expenses 4,000Stock (31-3-2007) 12,000

(GP: 36,000)

Q3 From the following calculate Gross ProfitOpening stock 5,000Purchases (Net) 1, 50,000Direct expenses 13,000Sales 1, 80,000Closing stock 18,000

(GP: 30,000)

Q4 Prepare Trading Account for the year ending 31st Mar 2005Opening Stock 4,000 Purchases 39,000Purchase Return 1,000 Sales 50,000Sales Return 500 Factory Rent 200Wages 4000 Carriage inward 400Factory Lighting 100 Office Salaries 1,500General Expenses 2,000Closing Stock as on 31st Mar 2005 was Rs. 7,000

(GP: 9,800)

Q5 From the following particulars prepare profit and loss account.Salaries 10,000 Advertising 8,500

Stationery 2,500 Discount (Dr.) 1,500Insurance 1,000 Rent paid 5,000

Carriage out

4,500 Bad Debts 1,500

Postage 7,500 Interest Received 4,000

The gross profit was 25% on sales and the sales for the year amounted to Rs. 2,00,000.

(NP: 12,000)

Q6 From the following figures prepare a profit and loss account for the year ending 31st Mar 2005. The Gross Profit was Rs. 50,000Salaries 10,000 Commission Paid 4,500Postage 4,000 Advertisement 5,300Printing and stationery 2,000 Discount allowed 200Insurance 3,500 Rent received 2,500Interest on overdraft 2,500 Bad debts 3,000Carriage on sales 3,000 Dividend received 4,500

(Net profit: 19000)

Q7 From the following Trial balance of XYZ Co. as on 31st Mar 2006 prepare Final Accounts.

Items Dr. Items Cr.

Opening Stock 20000 Sale 1,20,000

Purchase 64000 Sundry Creditors 40,000

Sundry Debtors 75000 Capital 1,00,000

Office Expenses 1000

Machinery 10000

Discount 1500

Salaries 3500

Building 40000

Repairs 2000

Carriage & Freight 5000

Cash in hand 8000

Cash at bank 29000

Wages 1000

2,60,000 2,60,000

Stock as on 31st Mar 06 was valued at Rs. 28000.(GP: 49,000) (NP: 41,000)(Total of Balance Sheet: 1,81,000)

Q8 From the following balances prepare final Accounts

70,000 Cash in hand 3,60037,500 Creditors 20,000900 Debtors 14,000

Salaries 2,220 General expenses 1,600Discount allowed 400 Rent paid 7,420Opening stock 33,000 Drawings 1,300Bills payable 10,000 Electricity charges 380Sales 1,27,000 Carriage inward 1,700Purchases 93,700 Cash in bank 6,000Wages 5,000 Machinery 1,8,500Returns Outwards 220Closing stock was valued at Rs. 36,420

(GP: 29,340) (NP: 17,320)(Total of Balance Sheet: 1,16,020)

Q9 From the following trial balance prepare the final accounts of Hindustan Unilever Ltd. for the year ending 31st December 2007. The closing stock was valued at Rs. 17,000.

Dr. Balance Amount (Rs.) Cr. Balance Amount (Rs.)

Machinery 20,800 Sales 2,48,990

Wages 34,985 Bank Loan 10,000

Salaries 16,000 Creditors 50,160

Furniture 9,545 Purchase Return 1,100

Carriage Inward 1,880 Capital 85,000

Carriage Outward 2,050

Building 24,000

Manufacturing Expenses

9,955

Insurance 4,075

Goodwill 31,000

General Expenses 7,842

Factory fuel & 1,176

Power

Debtors 78,000

Factory Lighting 1,086

Expenses on sales 2,513

Opening Stock 34,000

Purchases 1,02,600

Sales Return 4,100

Bad debts 1,483

Bank Charges 500

Cash at bank 7,545

Cash in hand 115

3,95,250 3,95,250

(GP: 77,308) (NP: 42,845)(Total of Balance Sheet: 1,88,005)

Q10 From the following trial balance of a trader you are required to prepare Trading and Profit and Loss Account for the year ending 31st March, 1991 and a Balance Sheet as on that date :

Rs. Rs.Cash in hand 1,000Stock 3,500Creditors 3,900Debtors 19,200Drawings 5,130Sales 92,800Purchases 81,200

Wages 7,200

General Expenses5,170

Furniture4,000

Goodwill 3,000Capital 32,700Stock at the end was valued at Rs. 4,500

(GP: 5,400) (NP: 230)(Total of Balance Sheet: 31,700)

Q11 From the following balances prepare final AccountsDr. Cr.

Capital 60,000Drawings 10,260Stock 38,400Debtors and Creditors 57,000 7,800Purchases and Sales 62,400 1,85,000Wages and Salaries 7,200Trade Expenses 7,200Travelling Expenses 5,170Furniture 6,000Goodwill 58,000 Cash in hand 2,170Advertisement 3,000Bank Overdraft 4,000The closing stock was valued at Rs. 15,000.

(GP: 92,000) (NP: 76,630)(Total of B/S: 1,38,170)

Q12 From the following Trial balance of Mr. Ram as on 31st Dec 2006 prepare final accounts.

Particulars Dr. Amount Cr. AmountCash in hand 3,050Purchases and sales 40,650 99,000Debtors and creditors 8,700 6,000Bills receivables 1,200Capital 56,000Wages 11,000Stock 7,800Building 30,000Land 5,000Machinery 25,000Patents 8,000Salaries 17,000General expenses 3,000Insurance 600

1,61,000 1,61,000

The closing stock was valued at Rs. 9,800.(GP: 49,350) (NP: 28,750)(Total of B/S: 90,750)

Q13 Prepare Final Accounts for the year ending 31st Dec 2007 from the following Trial balance

Particulars Debit Amount Credit Amount

Capital   42,000

Drawing 3,400

Plant & Machinery 24,000

Furniture 5,200

Debtor 7,200

Creditor   5,200

Purchases 4,000  

Sales   8400

Wages 1600

Cash 5200

Salary 1600

Repair 380

Opening Stock 3,200

Rent 900

Manufacturing Exp. 300

Bills Payable 4700

Bad Debt 1,000

Carriage on purchases 320

Interest on Capital 2,000

Total 60,300 60,300

Adjustments

Closing Stock was valued for Rs. 3200 Depreciate Plant & Machinery by 10% Depreciate Furniture by 10% Outstanding Wages Rs. 300

Prepaid Rent Rs. 100(GP: 1,880) (NL: 7,080)(Total of B/S:41,720)

Q14 Prepare Final Accounts for the year ending 31st Dec 2007 from the following Trial balance

Particulars Dr. Amount Cr. Amount

Capital 76,700

Cash in hand 300

Purchase 89,900

Sales 1,10,600

Cash at Bank 8,850

Fixture & Fittings 2,250

Freehold Premises 15,000

Lighting & Heating 650

Bills Receivable 8,250  

Return Inward 300

Salary 10,750

Creditor 18,900

Debtor 57,000

Opening Stock 30,000

Printing 2,250

Bills payable 18,750

Rent, Taxes &

Insurance

1,900

Discount Allowed 2,000

Discount Received 4,450

Total 2,29,400 2,29,400

Adjustments Closing Stock is Rs. 18000 Rs. 350 due and unpaid in respect of salary Rates and insurance has been paid in advance to the extent of Rs. 400 Depreciate fixture and fitting by Rs. 250

(GP: 8,400) (NL: 4,900)(Total of B/S:17,750)

Q15 from the following trial balance prepare trading and profit and loss account and balance sheet for the year ending 31.12.2005.

Particulars Dr. Amount Cr. AmountCapital 15,000Purchases 55,000Sales 75,000Drawings 2,500Stock 11,000Bank 2,100Furniture 1,300Creditors 7,900Land and building 10,000Debtors 8,550Rent 500Sales return 1,000Discounts 200Insurance 1,000Sundry expenses 2,000Commission 1,000Carriage inward 900Printing and stationery 400Motor car 5,000Cash 600Bad debt 450Total 1,00,700 1,00,700

Adjustments:1. Closing stock Rs. 9,9002. Depreciate @ 5% on furniture & 10% on Motor car3. Prepaid insurance Rs. 200

4. Outstanding sundry expenses Rs. 250

Q16 From the following prepare final accounts.

Particulars Dr. Amount

Particulars Cr. Amount

Opening stock 20,000 Sales 5,00,000purchases 70,000 Purchase return 10,000Sales return 2,000 Discount received 2,000Carriage inward 1,000 Interest received 5,000Freight 5,000 Miscellaneous income 3,000Wages and salaries 25,000 Capital 2,00,000Advertisement 20,000 Creditors 30,000Printing and stationery 10,000 Bills payable 20,000Rent 67,000Energy cost 20,000Plant and machinery 3,80,000Furniture and fixtures 50,000Debtors 75,000cash 25,000

7,70,000 7,70,000

Adjustments:1. Closing stock is Rs. 25,0002. Prepaid rent Rs. 5,0003. Depreciation @ 5% on plant and machinery.

Q17 From the following prepare final accounts.

Particulars Dr. Amount Cr. AmountOpening stock 20,000purchases 55,400Return outward 2,500Productive wages 3,000Sales 1,08,000Sundry expenses 3,200Office rent 2,700Discount 800Bad debts 250Salaries 18,000Commissions 700Traveling expenses 1,350Insurance 2,200Sales promotion & Advertising 9,400Capital 75,000Creditors 30,000Bills payable 25,000Land and building 50,000Furniture 43,000

Debtors

20,000

Cash in hand 6,000Cash at bank 5,900

Total 2,41,200 2,41,200Adjustments:

1. closing stock Rs. 25,0002. Outstanding expenses Rs. 2,0003. Depreciation @ 5% on land and building, 20% on furniture & fixture.

Q18 From the following prepare final accounts.Particulars Dr. Amount Cr. Amount

Capital 25,000Interest 2,000Rent 2,000Wages 4,000Salary 10,000Machinery 15,000Taxes and insurance 3,000Sundry debtors 2,000Sundry creditors 3,000commission 5,000Opening stock 7,000Cash in hand 500Cash at bank 1,000Purchase and sales 20,000 40,000Returns 2,000 3,000Bills receivables & Payables 7,000Furniture & fixtures 9,500Total 83,000 83,000Adjustments:

1. Closing stock Rs. 10,000

2. Outstanding wages Rs. 500 & outstanding salary Rs. 1,0003. Depreciation @ 10% on machinery & 20% on furniture & fixture4. Prepaid rent Rs. 300

Q19 prepare final accounts of Reliance Co. Ltd. For the year ending 31st Mar 2004.

Particulars Dr. Amount Particulars Cr. AmountOpening stock 20,000 Sales 5,00,000

Purchases

70,000 Purchase return 10,000

Sales return 2,000 Discount received 2,000Carriage inward 1,000 Miscellaneous 5,000

Freight 5,000 Receipts 1,000Wages 25,000 Capital 2,00,000Advertisement 20,000 Creditors 30,000Printing & stationery 10,000 Bills payable 20,000Rent 65,000Salary 20,000Plant & machinery 3,80,000Furniture & fittings 50,000Debtors 75,000Cash 25,000

7,68,000 7,68,000

Adjustments:1. Closing stock as on 31st Mar 2004 amounted to Rs. 25,0002. Rent prepaid amounted to Rs. 5,0003. Provide depreciation on plant and machinery @ 10%.

Q20 Prepare trading account and profit and loss from the following balances.Particulars Amount

Purchases 71,280Computer 28,380Cash at bank 4,000Cash in hand 2,836Furniture 1,540Rent 12,540Bills receivable 6,720Trade charges 920Sundry debtors 34,156Drawings 5,200Discount allowed 540Wages 1,800Salaries 16,780Return inwards 1,000Capital 60,000Creditors 13,000Bills payable 10,220Discount received 22,000Sales 70,720Return outwards 11,432Rent due 320Adjustments:

1. Closing stock Rs. 25,6002. Depreciate furniture @ 10%3. Trade charges due Rs. 12004. Salaries prepaid Rs. 1,000

Q21 Prepare final accounts from the trial balance.Particulars Dr. Amount Cr. Amount

Opening stock 20,000Purchase of Raw material 80,000Carriage inward 2,000Commission received 5,000Rent received 15,000Wages 12,000Salaries 18,000Power & fuel 15,000Purchase return 5,000Land and building 2,50,000Furniture & fittings 75,000Creditors 34,000Bills payable 20,000Long term loan 2,00,000Capital 2,80,000Administrative expenses 12,000Repairs & maintenance exp. 15,000Marketing expenses 35,000Cash in hand 5,000Cash at bank 50,000Debtors 20,000Sales 2,50,000Plant and machinery 2,09,000

8,09,000 8,09,000Adjustments:

1. Closing stock is valued at Rs. 30,0002. Depreciate land and building @ 5% , plant and machinery @ 20% , and furniture

and fittings @ 10%. 3. Wages outstanding is Rs. 2,000

Preparation of Balance SheetQ22 (Total Rs. 16177)Particulars Amount Particulars AmountBills payable 541 Bills Receivable 2730Cash 835 Closing Stock 3700Petty Cash 47 Creditors 1780

Bank Overdraft

4000 Net Profit 628

Capital 9228 Plant & Machinery 6230Furniture 670 Debtors 1965

Q23 (Total Rs. 124275)

ParticularsAmount Particulars Amount

Capital 100000 Building 15000Debtors 28100 Net profit 5575Interest on drawings 500 Interest on capital 10000Loan from aadi 15000 Furniture 7500Depreciation on furniture

375 Motor car 25000

Depreciation on motor car

750 Drawings in cash & goods

18000

Interest on outstanding loan

900 Closing stock 32000

Prepaid insurance 300 Cash at bank 20000Commission received in advance

800 Outstanding wages 500

Sundry creditors 10000

Q24 (Total Rs. 398000) Particulars Amount Particulars AmountSundry creditors 220000 Outstanding

expenses30000

Stock in trade 70000 Debtors 230000Cash at bank 20000 Cash in hand 3000Prepaid expenses 5000 Furniture 70000

Q25 (Total Rs. 122700)Particulars Amount Particulars AmountBills payable 6000 Cash 700Creditors 24000 Debtors 16000Long term loans 39000 Bills receivable 4000Capital 40000 Closing stock 20000Net profit 18700 Fixtures & fittings 2000drawings 5000 Plant 15000Trade marks 13000 goodwill 7000Leasehold land 25000 Freehold premises 20000