Financial Statements Q1 From the following calculate the gross profit
Stock (1-4-2006) 10,500 Purchases 31,500 Sales 53,000 Purchase return 1,500 Carriage inward 2,000 Sales return 3,000 Stock (31-3-2007) 6500 (GP: 14,000) Q2 Prepare a trading account of DCM for the year ending 31st March 2007
Stock (1-4-2006) 15,000 Purchases 63,000 Sales 1,14,000 Purchase return 3,000 Carriage 2,000 Wages 9,000 Factory expenses 4,000 Stock (31-3-2007) 12,000 (GP: 36,000) Q3 From the following calculate Gross Profit
Opening stock 5,000 Purchases (Net) 1, 50,000 Direct expenses 13,000 Sales 1, 80,000 Closing stock 18,000 (GP: 30,000) Q4 Prepare Trading Account for the year ending 31st Mar 2005
Opening Stock 4,000 Purchases 39,000
Purchase Return 1,000 Sales 50,000
Sales Return 500 Factory Rent 200
Wages 4000 Carriage inward 400
Factory Lighting 100 Office Salaries 1,500 General Expenses 2,000
Closing 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.) 1,500
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. 50,000
Salaries 10,000 Commission Paid 4,500
Postage 4,000 Advertisement 5,300
Printing and stationery 2,000 Discount allowed 200
Insurance 3,500 Rent received 2,500
Interest on overdraft 2,500 Bad debts 3,000
Carriage 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.
Q8 From the following balances prepare final Accounts
Capital 70,000 Cash in hand 3,600
Building 37,500 Creditors 20,000
Returns Inward 900 Debtors 14,000
Salaries 2,220 General expenses 1,600
Discount allowed 400 Rent paid 7,420
Opening stock 33,000 Drawings 1,300
Bills payable 10,000 Electricity charges 380
Sales 1,27,000 Carriage inward 1,700
Purchases 93,700 Cash in bank 6,000
Wages 5,000 Machinery 1,8,500
Returns Outwards 220
Closing 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 &
Power 1,176 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 1,000 Stock 3,500 Creditors 3,900 Debtors 19,200 Drawings 5,130 Sales 92,800 Purchases 81,200 Wages 7,200
General Expenses 5,170
Furniture 4,000
Goodwill 3,000
Capital 32,700
Stock 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 Accounts
Dr. Cr.
Capital 60,000
Drawings 10,260
Stock 38,400
Debtors and Creditors 57,000 7,800
Purchases and Sales 62,400 1,85,000
Wages and Salaries 7,200
Trade Expenses 7,200 Travelling Expenses 5,170 Furniture 6,000 Goodwill 58,000 Cash in hand 2,170 Advertisement 3,000 Bank Overdraft 4,000
The 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. Amount
Cash in hand 3,050
Purchases and sales 40,650 99,000
Debtors and creditors 8,700 6,000
Bills receivables 1,200 Capital 56,000 Wages 11,000 Stock 7,800 Building 30,000 Land 5,000 Machinery 25,000 Patents 8,000 Salaries 17,000 General expenses 3,000 Insurance 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. Amount
Capital 15,000 Purchases 55,000 Sales 75,000 Drawings 2,500 Stock 11,000 Bank 2,100 Furniture 1,300 Creditors 7,900
Land and building 10,000
Debtors 8,550 Rent 500 Sales return 1,000 Discounts 200 Insurance 1,000 Sundry expenses 2,000 Commission 1,000 Carriage inward 900
Printing and stationery 400
Motor car 5,000
Cash 600
Bad debt 450
Total 1,00,700 1,00,700
1. Closing stock Rs. 9,900
2. Depreciate @ 5% on furniture & 10% on Motor car 3. 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 5,00,000
purchases 70,000 Purchase return 10,000
Sales return 2,000 Discount received 2,000
Carriage inward 1,000 Interest received 5,000
Freight 5,000 Miscellaneous income 3,000
Wages and salaries 25,000 Capital 2,00,000
Advertisement 20,000 Creditors 30,000
Printing and stationery 10,000 Bills payable 20,000
Rent 67,000
Energy cost 20,000
Plant and machinery 3,80,000 Furniture and fixtures 50,000
Debtors 75,000 cash 25,000 7,70,000 7,70,000 Adjustments: 1. Closing stock is Rs. 25,000 2. Prepaid rent Rs. 5,000
3. Depreciation @ 5% on plant and machinery. Q17 From the following prepare final accounts.
Particulars Dr. Amount Cr. Amount
Opening stock 20,000 purchases 55,400 Return outward 2,500 Productive wages 3,000 Sales 1,08,000 Sundry expenses 3,200 Office rent 2,700 Discount 800 Bad debts 250 Salaries 18,000 Commissions 700 Traveling expenses 1,350 Insurance 2,200
Sales promotion & Advertising 9,400
Capital 75,000
Creditors 30,000
Bills payable 25,000
Furniture 43,000 Debtors 20,000 Cash in hand 6,000 Cash at bank 5,900 Total 2,41,200 2,41,200 Adjustments: 1. closing stock Rs. 25,000 2. Outstanding expenses Rs. 2,000
3. Depreciation @ 5% on land and building, 20% on furniture & fixture. Q18 From the following prepare final accounts.
Particulars Dr. Amount Cr. Amount
Capital 25,000 Interest 2,000 Rent 2,000 Wages 4,000 Salary 10,000 Machinery 15,000
Taxes and insurance 3,000
Sundry debtors 2,000 Sundry creditors 3,000 commission 5,000 Opening stock 7,000 Cash in hand 500 Cash at bank 1,000
Purchase and sales 20,000 40,000
Returns 2,000 3,000
Bills receivables & Payables 7,000
Furniture & fixtures 9,500
Total 83,000 83,000
Adjustments:
1. Closing stock Rs. 10,000
2. Outstanding wages Rs. 500 & outstanding salary Rs. 1,000 3. Depreciation @ 10% on machinery & 20% on furniture & fixture 4. Prepaid rent Rs. 300
Q19 prepare final accounts of Reliance Co. Ltd. For the year ending 31st Mar 2004.
Particulars Dr. Amount Particulars Cr. Amount
Opening stock 20,000 Sales 5,00,000
Purchases 70,000 Purchase return 10,000
Sales return 2,000 Discount received 2,000
Carriage inward 1,000 Miscellaneous 5,000
Freight 5,000 Receipts 1,000
Wages 25,000 Capital 2,00,000
Advertisement 20,000 Creditors 30,000
Printing & stationery 10,000 Bills payable 20,000
Rent 65,000
Salary 20,000
Plant & machinery 3,80,000 Furniture & fittings 50,000
Debtors 75,000
Cash 25,000
7,68,000 7,68,000
Adjustments:
1. Closing stock as on 31st Mar 2004 amounted to Rs. 25,000
2. Rent prepaid amounted to Rs. 5,000
3. Provide depreciation on plant and machinery @ 10%.
Q20 Prepare trading account and profit and loss from the following balances.
Particulars Amount Purchases 71,280 Computer 28,380 Cash at bank 4,000 Cash in hand 2,836 Furniture 1,540 Rent 12,540 Bills receivable 6,720 Trade charges 920 Sundry debtors 34,156 Drawings 5,200 Discount allowed 540 Wages 1,800 Salaries 16,780 Return inwards 1,000 Capital 60,000 Creditors 13,000 Bills payable 10,220 Discount received 22,000 Sales 70,720 Return outwards 11,432
Rent due 320 Adjustments:
1. Closing stock Rs. 25,600 2. Depreciate furniture @ 10% 3. Trade charges due Rs. 1200
4. Salaries prepaid Rs. 1,000
Q21 Prepare final accounts from the trial balance.
Particulars Dr. Amount Cr. Amount
Opening stock 20,000
Purchase of Raw material 80,000
Carriage inward 2,000
Commission received 5,000
Rent received 15,000
Wages 12,000
Salaries 18,000
Power & fuel 15,000
Purchase return 5,000
Land and building 2,50,000
Furniture & fittings 75,000
Creditors 34,000
Bills payable 20,000
Long term loan 2,00,000
Capital 2,80,000
Administrative expenses 12,000 Repairs & maintenance exp. 15,000
Marketing expenses 35,000
Cash in hand 5,000
Cash at bank 50,000
Debtors 20,000
Sales 2,50,000
Plant and machinery 2,09,000
8,09,000 8,09,000
Adjustments:
1. Closing stock is valued at Rs. 30,000
2. Depreciate land and building @ 5% , plant and machinery @ 20% , and furniture and fittings @ 10%.
3. Wages outstanding is Rs. 2,000
Preparation of Balance Sheet Q22 (Total Rs. 16177)
Particulars Amount Particulars Amount
Cash
835 Closing Stock 3700
Petty Cash 47 Creditors 1780
Bank Overdraft 4000 Net Profit 628
Capital 9228 Plant & Machinery 6230
Furniture 670 Debtors 1965
Q23 (Total Rs. 124275)
Particulars Amount Particulars Amount
Capital 100000 Building 15000
Debtors 28100 Net profit 5575
Interest on drawings 500 Interest on capital 10000
Loan from aadi 15000 Furniture 7500
Depreciation 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 20000
Commission
received in advance 800 Outstanding wages 500 Sundry creditors 10000 Q24 (Total Rs. 398000)
Particulars Amount Particulars Amount
Sundry creditors 220000 Outstanding
expenses 30000
Stock in trade 70000 Debtors 230000
Cash at bank 20000 Cash in hand 3000
Prepaid expenses 5000 Furniture 70000
Q25 (Total Rs. 122700)
Particulars Amount Particulars Amount
Bills payable 6000 Cash 700
Creditors 24000 Debtors 16000
Long term loans 39000 Bills receivable 4000
Capital 40000 Closing stock 20000
Net profit 18700 Fixtures & fittings 2000
drawings 5000 Plant 15000
Trade marks 13000 goodwill 7000
