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Final Accounts Problems

The document outlines problems related to final accounts preparation for various individuals, including Thomas, Nagarajan, Jain, Edward, and Brijesh, with specific adjustments and balances provided for each case. Each section requires the preparation of trading accounts, profit and loss accounts, and balance sheets based on the given financial data and adjustments. The adjustments include items like closing stock, outstanding salaries, depreciation, and provisions for bad debts.

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113 views11 pages

Final Accounts Problems

The document outlines problems related to final accounts preparation for various individuals, including Thomas, Nagarajan, Jain, Edward, and Brijesh, with specific adjustments and balances provided for each case. Each section requires the preparation of trading accounts, profit and loss accounts, and balance sheets based on the given financial data and adjustments. The adjustments include items like closing stock, outstanding salaries, depreciation, and provisions for bad debts.

Uploaded by

gsahithreddyit231218
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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Problems on Final Accounts:

1.The following balances were extracted from the books of Thomas as on 31st
March, 2018

Additional information:

i. Closing stock Rs. 9,000

ii. Provide depreciation @ 10% on machinery

iii. Interest accrued on investment Rs. 2,000

Prepare trading account, profit and loss account and balance sheet.

Solution
2. Given below are the balances extracted from the books of Nagarajan as on 31st
March, 2016.
Prepare the trading and profit and loss account for the year ended 31st March, 2016
and the balance sheet as on that date after adjusting the following:

i. Commission received in advance Rs. 400

ii. Advertisement paid in advance Rs. 150

iii. Wages outstanding Rs. 200


st
iv. Closing stock on 31 March 2016, Rs. 2,100

Solution
3. Consider the following balances extracted from the books of Jain as on 31st
December, 2016.

Prepare the final accounts.


Adjustments

i. Salaries outstanding for December, 2016 amounted to Rs. 600

ii. Provide depreciation on furniture @ 10% p.a

iii Provide interest on capital for the year @ 5% p.a.

iv. Stock on 31st December, 2016 Rs. 14,000

Solution
4. Edward’s books show the following balances. Prepare his trading and profit and
loss A/c for the year ended 31st December, 2016 and a balance sheet on at that
date.

Adjustments:

i. Closing stock was Rs. 1,30,000 on 31st December, 2016.

ii. Create 5% provision for bad and doubtful debts on sundry debtors

iii. Create provision at 2% for discount on debtor

iv. Interest on loan due for 9 months.

Solution
5. Following is the trial balance of Brijesh. Prepare final accounts for the year
ended on 31st March, 2016.
Adjustments:
st
i. Stock on 31 March, 2016 was valued at Rs. 4,00,000.

ii. Depreciate furniture @ 10% p.a.

iii. Insurance of Rs. 60,000 was paid in advance

iv. Commission receivable Rs. 50,000.

Solution

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