Practical questions on Final Accounts

1. The following is the trial balance of X Enterprise for the year ended December 31, 2013
Debit Credit
Particulars Amount Particulars amount
Cash 14500 Accumulated depreciation 18000
Accounts Receivable 11100 Notes payable 25000
Inventory 29000 Accounts payable 10600
Prepaid insurance 2500 X, capital 81000
Equipment 95000 Sales 536800
X drawing 12000 Interest revenue 2500
Sales return and allowance 6700 673900
Sales discount 5000
Cost of goods sold 363400
Freight-out 7600
Advertising expense 12000
Salaries expense 56000
Utilities expense 18000
Rent expense 24000
Depreciation expense 9000
Insurance expense 4500
Interest expense 3600
673900

Requirements:
1) Prepare income statement for the year ended December 31, 2013
2) Prepare a balance sheet as on December 31, 2013
2. Following is the information regarding Rogers company limited for the month of January
2015
Particulars Amount
Cost of goods sold 218000
Freight-out 7000
Insurance expense 12000
Rent expense 20000
Salaries expense 61000
Sales discount 10000
Sales return 13000
Sales 350000

Requirement: Prepare an income statement

3. Fill in the gaps

Particulars A company B com
Sales 90000 (d)
Sales return (a) 5000
Net sales 84000 100000
Cost of goods sold 56000 (e)
Gross profit (b) 41600
Operating expense 15000 (f)
Net income (c) 15000

4. The following is the information of Y company limited for the month of April, 2015

Particulars Amount
Frieght in 4000
Purchase 500000
 Purchase discount 6000
Purchase return 2000
Sales 800000
Sales discount 5000
Sales return 10000

Requirements:
1) Calculate gross profit
2) Calculate gross profit percentage

5. The following is the information regarding Neymar enterprise for the year December 31,
2014
Particulars Amount
Accounts payable 79300
Account receivable 50300
Accumulated depriciation-Building 52500
Accumulated depriciation-Equipment 42900
Building 190000
Cash 23800
Neymers capital 176600
COGS 412700
Depriciation expense- building 10400
Depriciation expense- Equipment 13300
Neymers drawing 28000
Equipment 110000
Insurance expense 7200
Interest expense 11000
Interest payable 8000
Interest revenue 4000
Inventory 75000
Mortgage payable 80000
Office salaries expense 32000
Prepaid insurance 2400
Property tax expense 4800
Property tax payable 4800
Sales salaries expense 76000
Sales 628000
Sales commission expense 14500
Sales commission payable 4300
Sales return 8000
Utilities expense 12000
Utilities expense payable 1000

Requirements:
1) Prepare income statement year ended December 31, 2014
2) Prepare classified balance sheet as on December 31, 2014