FINAL A/C 1.

From the following information prepare Trading Account: Opening stock 5000 Sales Return 400 Sales a/c 20000 Manufacturing Expenses 100 Purchase return 200 Octroi 500 Wages a/c 4000 Power 700 Carriage inward 300 Purchase a/c 8000 st Closing Stock (31 December 2011) Rs. 2000. 2. Prepare Profit & Loss A/c: Carriage on purchase 2000 Carriage on sales 1000 Duty on Export 2020 Lighting 1050 Water & Electricity 2120 Advertisement 100 Salary of factory manager 2200 Salary of office manager 1500 Gross Profit 15200 Rent received 1500 Rent paid 500 Commission (cr.) 1200 3. Following are the closing balances on 31st march 2012: Outstanding rent 100 Creditors 1800 Bank 3000 Machinery 6300 Capital 20000 Prepaid wages 400 Net loss 4800 Debtors 5400 Drawing 1800 Closing stock 1200

4. From the following Trial- Balance extracted from the books of M/S Rai Bros., prepare Final Accounts for the year ending 31st march 2012. TRIAL-BALANCE Particulars Debtors & Creditors Capital & Drawings Rent & Rates Trade Expenses Purchases & Sales Returns Carriage Inward Wages Salaries Opening Stock Discount Bad Debts Plant & Machinery Furniture Cash in hand Cash at bank Total Closing stock amounted to Rs. 14220. 5. From the following Trial- Balance prepare Final Accounts for the year ending 31st march 2012. TRIAL-BALANCE Particulars Debit Credit Amount Amount Debtors & Creditors 2700 1400 Capital & Drawings 900 10000 Rent & Rates 450 Sundry Expenses 200 Purchases & Sales 9500 14500 Carriage 150 Wages 5000 Opening Stock 2000 Plant & Machinery 3500 Cash at bank 1500 Total 25900 25900 Debit Amount 12000 2900 250 670 8640 190 250 2920 1200 3100 180 200 2510 1800 500 15400 52710 Credit Amount 7900 30000 14290 280

240

52710

6. The following is the trial-balance of Mr. Kapur on 31st march 2012. Particulars Debtors & Creditors Capital & Drawings Carriage outward Purchases & Sales Returns Carriage Inward Wages Opening Stock Building Salaries Patents General expenses Insurance Fuel & Power Plant & Machinery Furniture Cash in hand Cash at bank Total Debit Amount 29000 10490 4080 81350 1360 6400 20960 11520 60000 30000 15000 6000 1200 9460 40000 20000 1080 5260 353160 Credit Amount 12600 142000 197560 1000

353160

Taking into account the following adjustments, prepare Final Accounts. 1. Closing stock amounted to Rs. 13600. 2. Machinery is to be depreciated at the rate of 10% and patents at the rate of 20%. 3. Salaries for the month of March, 2012 amount to Rs. 3000 were unpaid. 4. Insurance include a premium of Rs. 170 for the next year. 5. Outstanding wages Rs. 4000. 6. Provision for bad & doubtful debt is 5% on debtors.

7. The following is the trial-balance of Punjab Jewelers as on 31st march 2012. Particulars Debtors & Creditors Capital Advertisement Purchases & Sales Purchase returns Commission received Opening Stock Repairs & Maintenance Salaries Car General expenses Insurance Building Furniture Cash in hand Cash at bank Total Debit Amount 500000 220000 2250000 720000 130000 300000 350000 160000 70000 4258000 100000 35000 60000 9153000 Credit Amount 398000 5000000 3500000 180000 75000

9153000

Taking into account the following adjustments, prepare Final Accounts. 1. Closing stock amounted to Rs. 800000. 2. Provide depreciation on Building @ 5%, Furniture @ 10% and car @ 20%. 3. Salaries for the month of March, 2012 amount to Rs. 30000 were unpaid. 4. Prepaid advertisement Rs. 20000. 5. Goods used for domestic purpose Rs. 18000. 6. Provision for bad & doubtful debt is 2% on debtors.

8. From the following trial-balance of Mr. Ram prepare Manufacturing, Trading and Profit & Loss Account for the year ended 31st December 2011 and Balance-Sheet on that date: Particulars Debtors & Creditors Capital & Drawings Carriage outward Purchases & Sales Returns Carriage Inward Wages Opening Stock Loan @ 9% (1st may 11) Coal, Gas & Water Duty & Clearing Charges Office Rent Printing & Stationery Bad Debts Reserve Bills Receivable & Payble Salaries Bank Charges General expenses Insurance Factory Rent Plant & Machinery Furniture Cash in hand Cash at bank Total Debit Amount 60000 5000 4200 100000 2500 7500 10000 30000 1200 1500 2500 500 45000 18000 25 800 350 1900 65000 3500 1250 4525 365250 750 10000 Credit Amount 28000 100000 200000 1500

25000

365250

Taking into account the following adjustments, prepare Final Accounts. 1. Closing stock amounted to Rs. 40000. 2. Machinery is to be depreciated at the rate of 10%. 3. Outstanding expenses are: Salaries Rs. 2400, factory rent Rs. 1500, Office Rent Rs. 550. 4. Interest on capital at 5% per annum. 5. Goods withdrawn for personal use Rs. 2525. 6. Provision for bad & doubtful debt is 2.5% on debtors after elimination of bad debts amounting to Rs. 2000. 7. The manager is allowed a commission of 5% of net profit before charging the commission.

9. From the following trial-balance prepare Trading and Profit & Loss Account for the year ended 31st December 2011 and Balance-Sheet on that date: Particulars Debit Credit Amount Amount Debtors & Creditors 29260 44000 Capital & Drawings 13200 228800 Freehold Property 66000 Purchases & Sales 110000 231440 Returns 1100 Wages 35200 Opening Stock 38500 Loan to Krishna @ 10% (Balance on 1-1-11) 44000 Gas & Fuel 2970 Office expenses 2750 Freight 9900 Loose Tools 2200 Bad Debts Reserve 880 Interest on loan to Krishna 1100 Bills Receivable & Payble 5500 Salaries 13200 Discount 1320 Postage 1540 Bad Debts 660 Insurance 1760 Factory Lighting 1100 Office Rent 2860 Plant & Machinery 99000 Furniture 5500 Cash in hand 2640 Cash at bank 29260 Total 512820 512820 Taking into account the following adjustments, prepare Final Accounts. 1. Closing stock amounted to Rs. 72600. 2. A Machinery was installed during the year costing Rs. 15400, but it was not recorded in the books as no payment was made for it. Wages Rs. 1100 paid for its erection has been debited to wages account. 3. Depreciate: Plant & Machinery by 33.33% Furniture by 10% Freehold Property by 5% 4. Loose tools were valued at Rs. 1760 on 31st December 2011. 5. Of the sundry debtors Rs. 600 are bad and should be written off. 6. Provision for bad & doubtful debt is 5% on debtors. 7. The manager is allowed a commission of 10% of net profit after charging the commission.

10. Mr. Krishna Kumar carries on the business as a retailer. He extracted the following balances from his books of accounts as on 31st March 2012. Particulars Debit Credit Amount Amount Capital account 750000 Drawings 18000 Buildings 500000 Furniture & Fixtures 20000 Opening stock 225000 Sales 1800000 Purchases 1337000 Creditors 200000 Debtors 500000 Office expenses 24000 Salaries 18000 Rent 6000 Traveling & conveyance 4000 Insurance 1000 Motorcar expenses 15000 Postage & Telephones 3600 Electricity charges 2400 Fixed deposits with bank@ 10% interest 50000 Cash in hand 1000 Cash at bank 10000 Loan from H.C. @ 12% interest 25000 Motor Car 40000 Printing & Stationery 5000 Provision for Bad & Doubtful Debts 5000 Total 2780000 2780000 You are required to prepare a Trading. Profit & Loss account and BalanceSheet for the year ending 31st March 2012 taking into consideration the following adjustments: (i) Closing Stock amounts to be Rs.300000. (ii) A customer returned goods on 31st March 2012 amounting to Rs.4000, which was not accounted for , but already included in the closing stock at selling price. The cost price of said goods was Rs.3200. (iii) Annual insurance premium of Rs.1000 is valid upto 30th June 2012. (iv) Provision for bad and doubtful debts is to be kept at % on debtors. (v) interest on fixed deposit and payable on loan from H.C. is to be provided. (vi) Provide depreciation on Buildings at 2.5%, on furniture 10% and on motorcar 20%. (vii) Mr. Krishna Kumar withdraw goods for personal use costing Rs.2000. (viii) Make a provision for discount on debtors at 2% and discount on creditors at 1%.

11. The following is the trial-balance of Mr. Kapur on 31st march 2012 Particulars Debit Credit Amount Amount Debtors & Creditors 20,000 25,000 Capital & Drawings 4,000 9,30,000 Carriage outward 2,000 Purchases & Sales 5,00,000 12,00,000 Returns 15,000 25,000 Carriage Inward 7,000 Wages 50,000 Opening Stock 35,000 Building 5,50,000 Salaries 1,00,000 Patents 40,000 General expenses 20,000 Insurance 5,000 Fuel & Power 2,000 Plant & Machinery 7,00,000 Furniture 75,000 Cash in hand 10,000 Cash at bank 45,000 Total 2,18,00,000 2,18,00,000 Taking into account the following adjustments, prepare Final Accounts. Closing stock amounted to Rs. 45,000. Machinery is to be depreciated at the rate of 10% and patents at the rate of 20%. Salaries for the month of March, 2012 amount to Rs. 10,000 were unpaid. Insurance include a premium of Rs. 500 for the next year. Outstanding wages Rs. 4000. Provision for bad & doubtful debt is 5% on debtors.

12. The following is the trial-balance of Punjab Jewelers as on 31st march 2012. Particulars Debit Credit Amount Amount Debtors & Creditors 1,00,000 75,000 Capital 3,500 2,10,000 Advertisement 2,500 Purchases & Sales 2,10,000 5,00,000 Purchase returns 2,000 Commission received 5,000 Opening Stock 39,000 Repairs & Maintenance 2,100 Salaries 6,000 Car 2,400 General expenses 1,50,000 Insurance 500 Building 2,00,000 Furniture 50,000 Cash in hand 10,000 Cash at bank 12,000 Total 7,90,000 7,90,000 Taking into account the following adjustments, prepare Final Accounts. 1. Closing stock amounted to Rs. 45,000. 2. Provide depreciation on Building @ 5%, Furniture @ 10% and car @ 20%. 3. Salaries for the month of March, 2012 amount to Rs. 300 were unpaid. 4. Prepaid advertisement Rs. 200. 5. Goods used for domestic purpose Rs. 18000. 7. Provision for bad & doubtful debt is 2% on debtors.

13. The following is the trial-balance prepare final accounts on 31st December 2012. Particulars Debit Credit Amount Amount Debtors & Creditors 54000 21400 Capital 180000 Carriage 8200 Sales 240000 Returns 5000 Material consumed 150000 Wages 36100 Loan from Kapil @ 12% (balance on 1-4-12) 10000 Closing Stock 46500 Power & Fuel 5400 Coal, gas & water 2200 Trade expenses 14500 Rates & taxes 5200 Loose tools 16000 Bad debts reserve 7600 Interest on Kapils loan 600 Bills Receivable & Bills payable 4000 3700 Salaries 20000 Discount 600 Outstanding trade expenses 2000 Insurance premium 4500 Bad debts 1800 Fire insurance 3000 Outstanding wages 3400 Bank charges 300 Plant & Machinery 80000 Furniture 18000 Cash in hand 1600 Bank 8200 Total 476900 476900 Taking into account the following adjustments, prepare Final Accounts. 1. Provision for bad & doubtful debt is Rs.4000. 2. Carry forward the following unexpired amounts: (a) Fire insurance Rs.500 (b) Rates & taxes Rs.1200 (c) Insurance premium Rs.1500 3. Wages include Rs.5000 spent on installation of a new machine on 1st January 2012. 4. Depreciate plant & machinery by 10% and furniture by 20%. 5. Loose tools were valued at Rs.12000 on 31st December 2012. 6. accrued income Rs.2300.

14. On 31st March 2012 the following Trial Balance has been extracted from the books of a merchant: Debit Balances Amount Credit balances Amount Drawings A/c 3,000 Capital Account 30,000 Debtors 19,100 Creditors 8,401 5% loan on mortgage Interest on Loan 200 (1.4.2011) 8,500 Cash in hand Opening Stock Motor Vehicles Cash at bank Land & Building Bad Debts Purchases Sales Return Carriage Outward Advertisement General Expenses Bills Receivables Carriage Inward Establishment Rates, Taxes & Insurance 3,050 5,839 9,000 4,555 12,000 625 67,458 7,821 1,404 2,264 4,489 6,882 3,929 8,097 Bad Debts Provision Purchas Return Discount Bills Payable Rent Received Sales 710 1,346 440 2,714 250 1,11,243

3,891 163604 163604 Prepare Trading and Profit & Loss Account for the year ending on 31st March 2012 and a Balance Sheet as on that date after considering the following matters: Depreciate Land & Building at 5% p.a. and motor vehicles at 15% p.a. Goods costing Rs. 600 were sent to a customer on sale or return basis for Rs. 700 on 30th March 2012 and has been recorded in the books as actual sales. Salaries amounting to Rs. 700 and rates amounting to Rs. 400 due. A fire broke out on 1st April 2012 destroying goods worth Rs. 200. The provision for doubtful debts is to be brought up to 5% on sundry debtors. Stock in hand on 31st March 2012was valued at Rs. 6,250. Goods costing Rs. 500 were taken away by the proprietor for his personal use; no entry has been made in the books of accounts. Prepaid insurance amounted to Rs. 175.

 Provide for managers commission at 5% on net profit after charging such commission.

15. From the following trial balance and information, prepare Trading and Profit & Loss a/c of Mr. Rishabh for the year ended 31st March 2012 and a Balance-Sheet as on that date: Particulars Capital/Drawing Land & Building Plant & Machinery Furniture Sales/Purchase Returns Debtors/Creditors Loan from Gajanand on 1.7.2011 @6%p.a. Carriage Sundry Expenses Printing & Stationery Insurance Expenses Provision for doubtful debts Provision for discount on Debtors Bad Debts Profit of Textile Dept. Stock of General Goods on 1.4.2011 Salaries & Wages Trade Expense Stock of Textile Goods on 31.3.2012 Cash at Bank Cash in Hand Debit Amount 12,000 90,000 20,000 5,000 80,000 5,000 18,400 Credit Amount 1,00,000

1,40,000 4,000 12,000 30,000

10,000 600 500 1,000 1,000 380 400 10,000 21,300 18,500 800 8,000 4,600 1,280 297,380

297,380

Additional Information: Stock of general goods on 31.3.2012 valued at Rs. 27,300. Fire occurred on 23rd March 2012 and Rs.10,000 worth of general goods were destroyed. The insurance company accepted claim for Rs. 6,00o only and paid the claim money on 10th April 2012. Bad Debts amounting to Rs. 400 are to be written off. Provision for doubtful debts is to be made at 5% and for discount at 2% on debtors. Make a provision of 2% on creditors for discount. Received Rs. 6,000 worth of goods on 27th March 2012 but the invoice of purchase was not recorded in purchase book. Rishabh took away goods worth Rs. 2,000 for personal use but no record was made thereof. Charged depreciation at 2% on Land & Buildings, 20% on Plant & Machinery, and 5% on furniture. Insurance prepaid amounts to Rs. 200.

Manufacturing Account 1. From the following particulars of Mr. Ganesh, Prepare, Manufacturing, Trading & Profit & Loss Accounts for the year ended 31st March 2012 and Balance-Sheet as on that date after adjustment entries: Particulars Debit Credit Amount Amount Debtors & Creditors 11,000 80,000 Capital & Drawings 70,000 2,50,000 Building 1,50,000 Purchases & Sales 1,20,000 6,75,000 Returns 860 5,300 Manufacturing Wages 60,000 Manufacturing Expenses 50,000 Opening Stock Raw Materials 40,000 Work In Progress 30,000 Finished Goods 20,000 Discount 1,500 5,720 Carriage Inward 4,000 Carriage Outward 4,200 Interest & Bank Charges 1,260 Insurance 3,000 Bad Debts 1,500 Bad Debts Reserve 6,000 Bank Overdraft 40,000 Furniture 15,000 Plant & Machinery 4,50,000 Salaries 28,000 Cash in hand 1,400 Cash at bank 300 Total 10,62,020 10,62,020 Additional Information: Outstanding Manufacturing Expenses are Rs. 500. Closing Stock of Raw Material Rs. 25,000, W.I.P. Rs. 20000 and Finished Goods Rs. 20,000. Depreciate Machinery @ 10%.