FINAL ACCOUNTS

Problem 1 The following are balances extracted from books of Ms. Anitha as on 31. March 2011
Debit Rs Credit Rs Adjustments:
1 .closing stock 40,000 valued as on 31.03.04
2. Interest on capital at 6% to be provided
3. Interest on drawings at 5% to be provided
4 .depreciate buildings at the rate of 10% p.a
5. Write off bad debts Rs.1000
6. Wages yet to be paid RS.500
Prepare trading & P/L A/C & b/s as on 31
st

march 2011.
Gross Profit: Rs.109, 500;
Net Profit: Rs73, 500;
B/s Total: Rs2, 89,000

Drawings
Cash at bank
Cash in hand
Wages
Purchase
Stock(31.03.03)
Buildings
S.debtors
B/R
Rent
Commission
General exp
Furniture
Suspense a/c
40,000
17, 000
60, 000
10, 000
20, 000
60, 000
1,00, 000
44, 000
29, 000
4,500
2,500
8, 000
5, 000
5, 000
Capital
Sales
S.creditors
2,00,000
1,60,000
45,000
4,05,000 4,05,000
Problem.2 Mr. Ajiths books shows the following balances .prepare his trading &P/L a/c for the year ended
31.march 2005 and balance sheet as on that date.
Problem: 3
Particulars Debit Credit Adjustments:
1. Closing stock on 31.03.2003 Rs.15,000
2. Write of bad debts RS.800 and make provision for
bad doubtful debts @5 %and sundry debtors
3. Commission occurred but not received RS.2,000
Gross Profit: Rs 66,000;
Net Profit:Rs43,900;
B/s Total:Rs5,05,500

Capital
Drawings
Stock(1.4.2002)
Purchase
Sales
Sales return
Wages
Insurance premium
Packing & Postage
Advertisement
Carriage out ward
Bad debts
Commission received
Bills payable
Bank OD
Land& buildings
S.debtors
S.creditors

6,400
18,000
1,29,000

4,000
32,000
3,000
4,200
2,000
16,000
600



4,41,000
50,800

3,60,000



2,38,000







1,000
18,000
6,000


84,000
7,07,000 7,07,000

Particulars Debit Credit Adjustments:
1. Closing stock RS.1, 20,000
2. Provide 5% for bad debts & doubtful debts on debtors
3. Depreciate machinery & furniture by 5%
4. Allow interest on capital at 5 %
5. Prepaid printing charges RS.2, 000
Gross Profit: Rs. 1,38,000;
Net Profit: Rs 46,425;
B/s Total:Rs3,41,925

Stock on 104.2004
Purchase
Sales
Carriage inward
Salaries
Printing & stationary
Drawings
S.creditors
S.debtors
Furniture
Capital
Postage & telephone
Interest paid
Machinery
Loan a/c
Suspense a/c
1,50,000
1,30,000
-
2,000
50,000
8,000
17,000
-
1,80,000
10,000
-
7,500
4,000
41,500

-
-
3,00,000
-
-
-
-
20,000
-
-
2,50,000
-
-
-
25,000
5,000
6,00,000 6,00,000


Problem.4
Problem:5 Prepare the trading, P&L a/c & Balance Sheet as on 31.03.2005 from the following trail balance
Problem: 6 Prepare Trading & P&L account for the year ended 31
st
march 2009 and Balance sheet as on that
date from the following Trial balance of K & co.
Particulars Debit(Rs.) Credit(Rs.) Adjustments:
a) Cl. stock is valued at Rs.1,70, 000
b) Bad Debts Rs.7,000
c) Outstanding salary Rs.10,000 &
Prepaid insurance Rs.5,000
d) Provide 10% depreciation on
machinery 5% depreciation on
premises and furniture
Gross Profit:Rs4,89,000;
Net Profit:Rs2,11,500;
B/s Total:Rs17,15,500]
Capital 14,00,000
Opening stock 1,50,000
Machinery 5,70,000
purchases 7,50,000
Purchases return 5,000
Sales 12,90,000
Sundry creditors 94,000
Cash 79,000
Bank balance 56,000
Sales return 9,000
Particulars Debit Credit Adjustments:
1 .closing stock Rs.1,40, 000
2. Write off RS.10, 000 as bad debts; provide 5%
for bad and doubtful debts.
3. Make provision for discount on debtors at 2 %
4. Provision for discount on creditors at 2%
Gross Profit:Rs.2,28,000;
Net Profit:Rs88,840;
B/s Total: Rs. 9,76,440]

Capital
Cash
Buildings
Salary
Rent &taxes
Opening stock
Machinery
Drawings
Purchase
Sales
Carriage inwards
Fuel &gas
S.debtors
S.creditors
Bills receivable
Dividend
Loan
Bad debts
Advertisement
Provision and bad &
doubtful debts
_
40,000
4,00,000
1,10,000
21000
1,20,000
1,20,000
40,000
5,00,000
_
5,000
37,000
2.50,000
_
53,000
_
_
2,000
16,000
7,50,000
_
_
_
_
_
_
_
_
7,50,000
_
_
_
1,20,000
_
28,000
60,000
_
_
6,000
17,14,000 17,14,000
Particulars Credit Debit Adjustments:
1 .Closing stock on 31.03.2005 was
Rs.1, 20,000
2. Make provision of 5 % on sundry
debtors for bad & doubtful debts.
3. Rent received in advance RS.2, 000
4. Provide 10 % depreciation furniture
business premises
Gross Profit:Rs1,96,200;
Net Profit: Rs 1,05,140;
B/s Total: Rs 3,58,140.

Capital
Bank O/D
Sales
Furniture
Business promises
Creditors
Opening stock
Debtors
Rent
Purchase
Discount
Insurance
Wages
Salary
Advertisement
Carriage on purchase
Provision and bad - doubtful
debts
Bad debts
Income tax
_
_
_
30,600
1,20,000
_
1,32,000
1,08,000
_
6,60,000
_
16,000
24,000
54,000
54,000
13,200

-
800
4,000
1,50,000
25,200
9,03,000
_
_
79,800
_
_
6,000
_
2,400
_
_
_
_
_

7,000
_
_
11,73,4000 11,73,4000
Wages 67,000
Salaries 70,000
Office rent 60,000
Insurance 34,000
S.debtors 54,000
Premises 7,90,000
Furniture 1,00,000
27,89 ,000 27,89,000
Problem: 7: Prepare Trading and P/L account for the year ended 31
st
march 2009 and a balance sheet as on
that date from the following balance of M & co.
Particulars Rs. Particulars Rs. 1. Closing stock was valued as
Rs.1,15,000
2. Interest on bank loan is at 10% p.a
3. Provide depreciation for machinery
and furniture at 5% p.a
4. Provide for doubtful debts at 5% on
debtors
5. Insurance prepaid is Rs. 7,400
6. Salaries outstanding RS.5,000; rent
paid in advance RS.4,000
GP:Rs.6,08,000,
NP Rs.82,175;
B/s Total:Rs24,72,675
Capital 18,90,000 Sales 15,50,000
Drawings 2,40,000 Creditors 75,500
Purchases 8,70,000 Rent paid 54,000
Machinery 15,50,000 Discount received 17,000
Travelling expenses 22,000 Furniture and fittings 6,50,000
Bad debts 6,000 Wages 1,10,000
Debtors 64,500 Salaries 2,10,000
Return inward 11,300 Interest paid 55,000
Return outward 13,700 Commission paid 19,000
Carriage inward 7,400 Carriage outward 21,000
Stock as on 1
st
April 2008 72,000 Insurance 39,000
Cash in hand 1,95,000 Bank loan 6,50,000
Problem: 8: Prepare a trading and P/L account for the year ended 31
st
march 2011 and a balance sheet as on
that date from the following balances of senthil & co
Particulars L.F Debit
Rs.
Credit
Rs.
Adjustment:
a) Stock on hand as on 31 march2009 is
Rs.1,45,000
b) Bad debts Rs.11,000
c) Provide at 10% on sundry for bad and
doubtful debts
d) Deprecate plant and machinery at 5%
per annum
e) Rant paid in advance is Rs.12,000
f) Salary accrued is Rs.13,000
Gross Profit:Rs.8,59,000;
Net Profit:Rs.4,90,600;
B/s Total:Rs.28,58,600

Capital 21,42,000
Purchase & sales 13,50,000 23,10,000
Purchase return 20,000
sale return 22,000
Miscellaneous expense 44,000
Plant & machinery 14,50,000
Investment 11,00,000
Stock as on 1
st
april2008 1,00,000
Insurance premium 39,000
Rent 60,000
Wages 1,34,000
Bank overdraft 1,00,000
Commission paid 24,000
Debtors & creditors 1,50,000 1,13,000
Cash in hand 99,000
Discount 23,000
Salary 1,70,000
Cartage 10,000
Interest 90,000
47,75,000 47,75,000
Problem: 9:Prepare Trading and P/L account for the year ended 31
st
march 2009 and a balance sheet
Particulars Debit Credit 1. Stock on hand as on 31
st
march
2009 is Rs. 70,000
2. Depreciative plant and
machinery at 10% per annum
3. Provision for bad debts should
be at 5% on sundry debtors
4. Rent accrued is Rs.20,000
5. Salary outstanding is Rs.13,000
6. Wages paid in advance is
Rs.11,000
Gross Loss:Rs.81,000;
Net Loss: Rs 4,08,000;
B/s Total:Rs15,15,000]
Purchase & sales 11,00,000 12,00,000
Purchase ret & sales ret 10,000 12,000
General expenses 33,000
Rent 45,000
Wages 1,74,000
Cash in hand & bank overdraft 1,20,000 25,000
Bad debts 13,000
Debtors & creditors 1,40,000 65,000
Provision for bad debts 12,000
Salary 1,10,000
Drawings & Capital 1,00,000 19,00,000
Plant & machinery 13,10,000

Problem:10The following trail balance of SURYA jewelers as on 31st December 1995.
Debit balances Rs Credit balances Rs a) Closing inventory as at 31.12.1995
RS.80,000
b) Interest on capital at 6 percent.
c) Prepaid advertisement RS.2,000
d) Goods used for domestic purpose RS.1,
800.
e) Outstanding salaries Rs.3, 000.
f) Depreciation on buildings at 5% on
furniture at 5% and motorcar at 10%.
Gross Profit:Rs1,36,600
Net Profit:Rs 60
B/s Total:Rs5,87,260]

Opening inventory
Purchases
Furniture
Motor car
Buildings
Sanjay
Kishore
raghav
advertisement
repairs & maintenance
general exp
insurance
cash in hand and at bank
salaries
72,000
2,25, 000
15, 000
30, 000
4,25,800
12, 000
20, 000
18, 000
22, 000
13, 000
16, 000
7, 000
9,500
30, 000
Capital
Sales
Purchase return
Ram
Shyam
Commission
5,00,000
3,50, 000
1,800
32, 000
24, 000
7,500
9,15,300 9,15,300
Problem:11: The following is the trail balance of kamal enterprices for the year ended 31
st
December 1996.
You are required to prepare a P/L a/c B/S after taking into a/c the adjustments given below:
Debit balances Rs Credit balances Rs Adjustments:
1 .Closing inventory as on 31.12.1996
Rs.18, 000.
2. Depreciation plant & machinery at 10%.
3. Salaries outstanding Rs.1, 000 ; power
and fuel outstanding ,Rs.2,000.
4. Rs.5,000 was spend on erection of plant
and machinery, but wrongly under wages.
5. Provide for bad & doubtful debts for
Rs.1, 500.
6. Discount earned but not received
Rs.100.
7. Commission due but not recorded
Rs.200.
8. Rent received includes Rs.500 received
in advance.
Gross Profit: Rs 65100
Net Profit:Rs50200
B/s Total:Rs93,900

Cash in hand
Cash at bank
Office furniture
Accounts receivable
Commission
B/R
Power & fuel
Plant & machinery
Office exp
Carriage inwards
Carriage outwards
Rent ,rates ,taxes
Lease hold promises
Wages
Salaries
Opening inventory
Sales return
Purchases
drawings
500
1,200
6,000
15,000
1,200
3,500
6,000
24,000
2,000
1,200
3,500
1,700
25,000
30,000
7,000
12,000
2,000
60,000
7000
Sales
Purchase return
Account payable
Bills/payable
Discount received
Dividend received
Rent receive
Capital
1,50,300
5,000
12,000
8,000
1,000
2,000
3,500
27,000
2,08,800 2,08,800
Problem 12 From the following prepare trading a/c ,P/L a/c & B/S as on 31 st December 2000:
Particulars Debit Credit a) Closing stock RS.15,000
b) Buildings and furniture and fittings
are to be depreciated by 10 % and
20% respectively.
c) Bad debts RS.1, 000 are to be written
off & a reserve of 5 % is to be kept on
remaining debtors.
d) Commission received in advance RS.1,
000.
Gross Profit: Rs25, 200;
Net Profit: Rs 2,650;
B/s Total: Rs79, 650

Opening stock
Cash & bank
Purchase & sales
Returns
Debtors & creditors
Buildings
Capital
Furniture and fittings
Bad debts reserve
Petty cash
Carriage inwards
Salaries
Interest charged by bank
Sundry trade exp
Insurance premium paid for the year -
upto30.06.2001
10,000
4,000
70,000
3,000
30,000
30,000
-
7,000
-
200
800
11,000
500
6,000

1000
-
25,000
90,000
4,000
21,000
-
30,000
-
2,000
-
-
-
-
-

-
Stock as on 1
st
April 2008 90,000
Rates 9,000
Commission received 40,000
32,54,000 32,54, ,000
Telephone charges
Commission
500
-
-
2,000