IBS MUMBAI, POWAI 400 076.

ACCOUNTING FOR MANAGERS,(Final Accounts)

FOR PRIVATE CIRCULATION ONLY.
FINAL ACCOUNTS

1. From the following trail balance of M/S Ratan Tata & Co. prepare Trading and
Profit and Loss Account for the year ended 31st March, 2002 and a Balance
Sheet as on that date.
Debit Balances
Amount
Credit Balances
Amount
Opening Stock
Purchases
Sales Return
Carriage Inwards
Carriage Outwards
Wages
Salaries
Plant and Machinery
Furniture
Sundry Debtors
Bills Receivable
Cash in Hand
Travelling Expenses
Factory Lighting
Rent and Taxes
General Expenses
Insurance
Drawings
Bad Debts

20000
80000
6000
3600
800
42000
27500
90000
8000
52000
2500
6300
3700
1400
7200
10500
1500
15000
3000
381000

Sales
Purchase Returns
Discount
Sundry Creditors
Bills Payable
Capital
R.D.D.

270000
4000
5200
24000
1800
75000
1000

381000
Additional Information:
a) Stock on 31st March, 2002 was valued at Rs.24000 (Its Market value was Rs.30000).
b) Wages outstanding amounted to Rs.3000. (c) Salaries outstanding Rs.2500.(d)
Prepaid insurance was Rs.300.(e) Provide depreciation on Plant and Machinery at 5%
and Furniture at 20%.(f) Provide 5% doubtful debts.
2. From the following trail balance of M/S Dhirubhai Ambani & Co. prepare Trading and
Profit and Loss Account for the year ended 31 st March 2000 and a Balance
Sheet as on that date.
Debit Balances
Amount
Credit Balances
Amount
Opening Stock
40000 Sales
376050
Purchases
169000 Returns
8000
Retruns
11500 S.Creditors
45000
Carriage Inwards
6000 Bank Loan
40000
Carriage Outwards
3800 Commission
3500
Wages
42000 Capital
125000
Office Expenses
55150 R.D.D
1000
Building
80000
Equipments
58000
Sundry Debtors
62000
Rent and Taxes
22500
Power and Fuel
5400
Printing and Stationary
7200
Telephone Charges
9500
Prepared by Dr. Rajinder. S.Aurora

IBS MUMBAI, POWAI 400 076.

ACCOUNTING FOR MANAGERS,(Final Accounts)
FOR PRIVATE CIRCULATION ONLY.
Drawings
2500
Furniture
21000
Bad Debts
3000
598550
589550
Additional Information:
a) Stock on 31st March 2000 was valued at Rs.36500. Its Market value was Rs.29700.
b) Wages outstanding amounted to Rs.7500. c) Office Expenses outstanding Rs.6300.
d) Prepaid Rent amounted to Rs.3200.e) Provide depreciation on Building amounting to
Rs.7500 and Equipments and Furniture at 10%. F) Provide doubtful debts @ 5% of
Debtors.
3. Given below is the trail balance of Mr. Mr. Dhanraj Shetty for the year ended 31 st
March 2001.
Debit Balances
Amount
Credit Balances
Amount
Land
25,0000 Capital
312000
Carriage
1,600 Sundry Creditors
39000
Bills receivable
32,000 Bank Overdraft
18500
Purchases
275,000 Purchase Returns
19500
Carriage Outwards
3,800
Bills Payable
21800
Wages
108,000 Discount
5200
Salaries
72,000
R.D.D.
1500
Plant and Machinery
60,000 Sales
661400
Furniture and Fittings
65,000
Sundry Debtors
65,000
Bills Receivable
8000
Sundry Expenses
5400
Factory Expenses
4700
Rent and Taxes
5000
Delivery Expenses
20500
Insurance
5000
Drawings
32000
Bad Debts
2400
Opening Stock
56000
Sales Return
7500
1078900
107890

0
Additional Information:
a) Stock on 31st March, 2002 was valued at Rs.72400. (b) Wages outstanding amounted
to Rs.12000.(c) Salaries outstanding Rs.12000. (d) Prepaid insurance was Rs.1800.
(e) Provide depreciation on Plant and Machinery at 10% and Furniture and fittings 5%.
(f) Maintain a reserve for doubtful debts @ 3% of Debtors.(g) Interest on Bank Overdraft is
due for the year @ 10% p.a. Prepare Trading and Profit and Loss Account for the
year ended 31st March 2001 and a Balance Sheet as on that date.
4. Following is the trail balance of Disney Associates as on 31 st March 2002 owned by
Mr. John
Particulars
Amount
Particulars
Amount
Opening Stock
165000 Sales
1632700
Purchases
780000 Purchase Returns
36000
Sales Return
46000 Commission
7800
Carriage Inwards
7600
Sundry Creditors
8500
0
Carriage Outwards
8400 Bills Payable
18000
Prepared by Dr. Rajinder. S.Aurora

IBS MUMBAI, POWAI 400 076.

ACCOUNTING FOR MANAGERS,(Final Accounts)
FOR PRIVATE CIRCULATION ONLY.
Wages
66000 Capital: John
175000
Salaries
96000 R.D.D.
11000
Plant and Machinery
280000
Bad Debts
3000
Furniture
48000
Sundry Debtors
148000
Bills Receivable
25000
Investments
63000
Packing Expenses
7000
Factory Rent
56000
Office Rent
72000
Advertising
50000
Insurance
7500
Drawings:
37000
1965500
1965500
Additional Information:
a) Stock on 31st March 2002 was valued at Rs.150000. (b) Wages outstanding amounted
to Rs.6000.(c) Salaries outstanding Rs.12000. (d) Insurance is paid for 15 months.(e)
Provide depreciation on Plant and Machinery and Furniture at 10% each. (f) Provide
5% doubtful debts.
Prepare Final Accounts.
5. Mr. Jagdeep runs a business in the name of Jaggi and Jaggi Machine Tools whose trial
balance is given below. You are required to prepare Trading and Profit and Loss
Account for the year ended 31 st March 2002 and a Balance Sheet as on that
date.
Debit Balances
Amount
Credit Balances
Amount
Opening Stock
20000 Capital: Jagdeep
500000
Bank Balance
27500 Sales
1555800
Goodwill
525000
Purchase Returns
54000
Purchases
1100000
Discount
7500
Sales Return
36000 Sundry Creditors
240000
Carriage Inwards
24000 Bills Payable
18000
Carriage Outwards
8800 Loan from Bank
150000
Wages
156000 R.D.D.
1000
Salaries
72000
Plant and
108000
Machinery
Bank overdraft
35000
Furniture
58000
Sundry Debtors
252000
Bills Receivable
25000
Cash in Hand
7500
Selling Expenses
6500
Factory expenses
24000
Rent and Taxes
72000
General Expenses
20500
Discount
7500
Drawings
5000
Bad Debts
6000

2596300
Additional Information:
Prepared by Dr. Rajinder. S.Aurora

2596300

IBS MUMBAI, POWAI 400 076.

ACCOUNTING FOR MANAGERS,(Final Accounts)
FOR PRIVATE CIRCULATION ONLY.
a) Stock on 31st March 2002 was valued at Rs.240000. (b) Rent outstanding amounted
to Rs.6000.(c) Wages prepaid amounted to Rs.6000.(c) Provide depreciation on Plant
and Machinery at by 10% and Furniture at 5%. (d) Provide 5% doubtful debts.
************

Prepared by Dr. Rajinder. S.Aurora