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Final Accounts Practice Problems

The document presents practice problems related to final accounts, including Trading Accounts, Profit & Loss Accounts, and Balance Sheets for two scenarios involving Mr. X and Mr. Y. It provides detailed calculations for each account, illustrating the financial transactions and resulting profits. The solutions demonstrate how to prepare final accounts based on given data, including sales, purchases, and expenses.

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11 views2 pages

Final Accounts Practice Problems

The document presents practice problems related to final accounts, including Trading Accounts, Profit & Loss Accounts, and Balance Sheets for two scenarios involving Mr. X and Mr. Y. It provides detailed calculations for each account, illustrating the financial transactions and resulting profits. The solutions demonstrate how to prepare final accounts based on given data, including sales, purchases, and expenses.

Uploaded by

pinalbhagia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Final Accounts - Practice Problems with Solutions

Problem 1:
Mr. X started business with ■80,000. He purchased goods for ■40,000 and sold for ■60,000. He
paid rent ■5,000 and bought furniture ■10,000.

Required: Prepare Trading A/c, Profit & Loss A/c and Balance Sheet.

Solution:
Trading Account
Dr Cr
Particulars Amount (■) Particulars Amount (■)
To Purchases 40,000 By Sales 60,000
To Gross Profit c/d 20,000

Profit & Loss Account


Dr Cr
Particulars Amount (■) Particulars Amount (■)
To Rent 5,000 By Gross Profit b/d 20,000
To Net Profit 15,000

Balance Sheet
Liabilities Amount (■) Assets Amount (■)
Capital 80,000 Cash 55,000
Add: Net Profit 15,000 Furniture 10,000
Closing Capital 95,000
Problem 2:
The following are the balances from Mr. Y’s books:
- Opening Stock = ■20,000
- Purchases = ■50,000
- Sales = ■1,00,000
- Wages = ■10,000
- Rent = ■5,000
- Commission received = ■2,000
- Closing Stock = ■15,000

Required: Prepare Final Accounts.

Trading Account
Dr Cr
Particulars Amount (■) Particulars Amount (■)
To Opening Stock 20,000 By Sales 1,00,000
To Purchases 50,000 By Closing Stock 15,000
To Wages 10,000
To Gross Profit c/d 35,000

Profit & Loss Account


Dr Cr
Particulars Amount (■) Particulars Amount (■)
To Rent 5,000 By Gross Profit b/d 35,000
By Commission 2,000
To Net Profit 32,000

Balance Sheet (Capital depends on opening balance, not given)


Liabilities Amount (■) Assets Amount (■)
Capital (Balancing Fig.) ? Closing Stock 15,000
Add: Net Profit 32,000
Capital Adjusted ?

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