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Final Accounts (Full)

The document provides a detailed trial balance and adjustments for two separate trading profit and loss accounts and balance sheets for the years ending December 31, 2018, and December 31, 2019. It includes calculations for gross profit, net profit, and adjustments for outstanding salaries, prepaid rent, and bad debts. The final balance sheets summarize the liabilities and assets, reflecting the financial position of the trader at the end of the respective years.

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42 views3 pages

Final Accounts (Full)

The document provides a detailed trial balance and adjustments for two separate trading profit and loss accounts and balance sheets for the years ending December 31, 2018, and December 31, 2019. It includes calculations for gross profit, net profit, and adjustments for outstanding salaries, prepaid rent, and bad debts. The final balance sheets summarize the liabilities and assets, reflecting the financial position of the trader at the end of the respective years.

Uploaded by

abhinavanand1306
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Final Accounts-

From the following Trial Balance, Prepare trading Profit Loss A/c& balance sheet for the year ended 31-
12-2018

Trial Balance

Particulars Amount Particulars Amount


Purchases 11,870 Capital 8,000
Debtors 7,580 Bad debts 250
recovered
Return Inwards 450 Creditors 1,250
Bank Deposit 2,750 Return Outwards 350
Rent 360 Bank Overdraft 1,570
Salaries 850 Sales 14690
Travelling Expenses 300 Bills Payable 1350
Cash 210
Stock 2,450
Discount Allowed 40
Drawings 600

Adjustments: The closing stock on 31-12-2019 was Rs 4,200

Write off Rs.80 as bad debts and create reserve for bad debts at 5% on sundry Debtors

Three Months rent is outstanding

Solution

Trading Profit & Loss A/c For the year ended 2018

Particulars Amoun Amount Particulars Amount Amount


t
To Opening stock 2,450 By Sales 14690 14,240
To Purchase 11,870 11,520 -Sales Returns 450
-Returns 350 By Closing Stock 4,200
To Gross Profit 4,470
(Transfer to P&L A/c)
18440 18440
To Rent 360 By Gross Profit 4,470
Add: Outstanding 120 480 By Bad debts 250
To Salaries 850 Recovered
To Travelling Expenses 300
To Discount Allowed 40
To Bad Debts 80
To bad &Doubtful debts 375
To Net Profit 2595
(Transferred to capital
A/c)
4720 4720

Balance Sheet as on 31st December 2019

Liabilities Amount Amount Assets Amount Amount


Capital 8,000 Debtors 7580
Add: Net profit 2,595 -Bad Debts 80
10,595 7500
Less: Drawings 600 9995 -Bad Doubtful Debts 375 7125
Rent outstanding 120 Cash 210
Creditors 1250 Closing Stock 4200
Bank Overdraft 1570 Bank Deposit 2750
Bills Payable 1350
14285 14285

2. From the following balances as at 31st Dec 2018 of a trader Prepare a Trading Profit & Loss A/c for the
year 2018 and a Balance sheet as on the date.

Particulars Amount Particular Amount


s
Salaries 5,500 Creditors 9,500
Rent 1,300 Sales 32,000
Cash 1,000 Capital 30,000
Debtors 40,000 Loans 10,000
Trade Expenses 600
Purchases 25,600
Advances 2,500
Bank Balances 5,600
Adjustments:

The closing stock amounted to Rs.9,000

One Month salary is outstanding

One month rent has been paid in advance

Provide 5% for doubtful debts

Trading Profit & Loss A/c For the year

Particulars Amount Amount Particulars Amount Amount


To Purchases 25,000 By Sales 32,000
To Gross Profit 16,000 By Closing Stock 9,000
(Transferred to P&L A/c)
41,000 41,000
To Salaries 5,500 By Gross Profit 16,000
Add: Outstanding 500 6,000
To Rent 1,300
Less: Prepaid 100 1,200
To Trade Expenses 600
To Bad & Doubtful Debts 2,000
To Net Profit 6,200
(Transferred to Capital
A/c)
16,000 16,000
Balance Sheet as on 31st Dec 2018

Liabilities Amount Amount Assets Amount Amount


Capital 30,000 Debtors 40,000
Add: Net Profit 6,200 36200 Less; Bad doubtful debts 2,000 38,000
Creditors 9,500 Closing Stock 9,000
Loan 10,000 Prepaid Rent 100
Outstanding 500 Cash 1,000
Salary Advances 2,500
Bank Balances 5,600
56,200 56,200

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