M.

ProBLEMS
1. From the following Trial Balance, prepare final accouts ofSathish Traders for the year
ending 31-3-2018

(TSBIE-March, 2018)
Trial Balance

Debit Balances Amount Credit Balances Amount

Opening Stock 1,000 Sales 20,000

Cash in hand 6,000 Retuns 800
Cash at bank 1,500 Capital 40,000
Purchases 11,000 Creditors 4,250
Wages 3,000 Discount 800
Returns 1,000
Carriage Inwards 1,000
Carriage Outwards 500

Investments 10,000
Patents 7,000
Salaries 1,300
Legal Expenses 600
Insurance 800

Drawings 1,000
Debtors 12,000
Discount 750

Printing& Stationery 1,400

Machinery 6,000
65850 65850
Adjustments:
(1) Closing Stock:7 2,100, (2) Outstanding Stationery: 600, (3) Depreciation on Machinery:
10%,(4) Bad Debts: 500, (5) Prepaid Wages: 500.

Answer: 1Gross Prolit: 6,400; Net Profit: 150; Balance Sheet: 44,000
2. From the following particulars, prepare final accounts ofGodrej Traders for the year ending
31.12.2018:
Trial Balance
Amount Amount
Debit Balances Credit Balances

2000 Capital 60000

Stock on 1.1.18
Plant&Machinery 14000 Sales 30000

Wages 1200 Discount 1200

Returns 500 Creditors 4200

Land &Buildings 30000 Return outwards 500

Purchases 15000 Interest 1500

Bills receivable 9300 Overdraft 6000

Debtors 15000 Commission 1200

Cash at Bank 10000 Bills Payable 5000

Rent 2500

Bad Debts 1200

Insurance 600

Salaries 1500

Furniture 5000

Gas&Water 400

600
Carriage
Freight 800

109600 109600

Adjustments
Stock 31-12-2018: 5600, (2) Outstanding Wages: 700, (3) Pre-paid
(1) Closing on
Furniture: 10%. (5) Interest on Capital: 6%, (6)
Insurance: 200, (4) Provide for Depreciation on
Write off 1500 as Bad Debts.

Net Profit: 7,600; BalanceSheet:7 87,100)

Answer: (Gross Profit: 14,900;
 3 From the following Trial Balance, prepare final accounts of Sachin Trader's for the ycar ended

31.3.2019.

Trial Balance (TSBIC-May, 2018)

Debit Balances Amount Credit Balances Amount

Cash 3000 Bank overdraft 1000

Purchases 5000 Sales 9000

Wages 1000 Purchase returns 500

Opening stock 2500 Capital 15000

Salaries 1000 Commission Received 1200

Insurance 900 Creditors 1000

Carriage on Purchases 500

Furniture 2000

Sales Re turns 600

Rent 800

Machinery 5000

Debtors 4000

Discount 400

Bills Receivable 1000

27,700 27,700

Adjustments
(1) Outstanding salarices: S00, (2) Closing Stock: R 4,500 (3) Prepaid Insurance: R400.
4) Outstanding Wages: R300 (5) Depreciation on Machinery: 10%.

[Answer: Gross Profit: 7 4100; Net Profit: { 1600; Balance Sheet: 19400|
4. Fromthe following 'TrialBalanceof M/s Manoj& Son's Trader's, prepare Trading, Profit
& Loss A/c and Balance Sheet for the year ended 31.03.2018.

Trial Balance as on 31.03.2018

Debit Balances Amount Credit Balances Amount

Purchases 20000 Sales 52000

Salaries 5000 Creditors 18500

7800 Capital 30000

Wages
24000 Interest Received 2000
Buildings
Carriage on purchases 400 Bills payable 5200

Gas, Coal & Water 200 Bank Overdraft 5500

600 Outstanding Rent 800

Office expenses

Commission 300

Debtors 25000

Opening Stock 6000

12000
Machinery
400
Insurance

Bank balance 4000

Bills Receivable 2000

Cash 1300

Furniture 5000

1,14,000 1,14,000

Adjustments
insurance: 100, (4) Create
(1) Closing Stock: 9000 (2) Outstandingsalaries: 1000, (3) Prepaid
Furniture: 200 and on Machinery: 600,
5% Provision for Bad Debts, (5) Depreciation on

1200.
(6) Outstanding Wages:
Net Profit: F 20,150; Balance Sheet:7 81,350
JAnswer: Gross Profit: F25,400;
S. From the following particulars ofAnasuya Traders, prepare final accounts for the year ended
5.
31.12.2018.

Trial Balance as on 31.12.2018

Debit Balances Amount Credit Balances Amount

5000 Bills Payable 20000

Wages
Factory Rent 2000 Creditor 8500

Audit charges 1500 Capital 62000

20000 Commission 7500

Machinery
Cash 14500 Sales 128000

Debtors 32000 Return outwards 2000

Opening stock 12000 Interest received 4300

Furniture 36000 Outstanding salaries 2500

Purchases 90000

Cariage Inwards 2000

Salaries 12500

Office rent 5000

Advertisement 1300

Rent paid in advance 1000

2,34,800 2,34,800

Adjustments

(1) Closing Stock: 15,500, (2) Interest on Capital: 6%, (3) Write off7 2000 as
Bad Debt and

provide 5% Reserve for Doubtful Debts, (4) Outstanding Wages: 1000. (5) Depreciation
on

Furniture: 10%.

Answer: Gross Profit: 7 33,500; Net Profit: 7 14,180;Balance Sheet: F 1,11,9001

 of Brindavan Business forthe year ended
6.
6. Prepare Final Accounts from the Trial Balance
31.03.2019
Trial Balance as on 31.03.2019

Amount Credit Balances Amount

Debit Balances
Rs Rs.
6000 Sales 47000
Salaries
22000 Creditors 10000
Purchases
7800 Capital 25000
Wages
Carriage on Purchases 400 Bills Payable 5800

Office Expenses 500

Commission 600

Debtors 30000
3000
Furniture
10000
Machinery
400
Insurance
Bank Balance 4000

Bills Receivable 2000

Cash 1100

87,800 87,800

Adjustments

1) Outstanding Wages: 2,000.

2) Outstanding Salaries: F 1,000.

3) Prepaid Insurance: 7 50.

Debtors.
4) Create 5% Reserve for Bad Debts on

and on Machinery 500.

5) Depreciation on Furniture 150

6) Closing Stock: 7 11,000.

Balance Sheet Total: r 59,000)
(Answer: Gross Profit: 7 25,800; Net Profit: 15,200;
7
7 Prepare final accounts of Pawan Enterprises for the year ending 31.03.2018.

Trial Balance as on 31.03.2018

Debit Balances Amount Credit Balances Amount

Rent and Taxes 1500 Sales 10800

Purchases 9000 Creditors 3500

Wages 900 Reserve for B ad & Doubtful Debts 200

Carriage 500 Capital L 22000

Opening Stock 3200 Purchase Returns 800

Commission 700 Miscel laneous Income 'C 1200

Bills Receivable 2300 Commission 400

Freight 500

Oil & Fuel 800

Motor Van 5000

Patents 2000

Debtors 10000

Cash 1000

Accrued Interest 500

Insurancee 1000

38,900 38,900

Adjustments
(1) Closing stock: Rs 6,800, (2) Depreciation on Motor Van: 5%, (3) Reserve for Bad &Doubtful
Debts: 6%, (4) Outstanding Rent: 7 500, (5) Prepaid Insurance: T 300, (6) Create Reserve for
Discount on Creditors: 3%.
Answer: Gross Profit: 7 3,500; Net Profit: 71,155; Balance Sheet:7 27,050]
8. Prepare final accounts from the following Trial Balance of Mamaji Trader's for the year ended

31.12.2018.

Trial Balance as on 31.12.2018

Debit Bala nces Amount Credit Balan ces Amount

Purchases 12000 Capital 40000

Cash at Bank 2000 Returns 800

Cash in hand 1000 Sales 18000

Wages 3000 Dividend 500

Returns 500 Discount 800

Carriage Inwards 700 Outstanding Rent 500

Legal expenses 1200 Creditors 5250

Opening stock (1.1.18) 3500

Investments 7500

Trademarks 7000

Bad Debts 1000

Salaries 2300

Carriage Outwards 700

Printing & Stationery 800

Drawings 2000

Debtors 12500

Discount 750

Insurance 1400

Buil dings 6000

65,850 65,850

Adjustments
(1) Closing Stock (31-12-2018): 2500,(2) Outstanding Stationary: 600, (3) Depreciat
Buildings:10%, (4) Bad Debts: 500 and Provision for Bad and Doubtfal Debts: 5% (5) Prepaid
Wages: 500, (6) Interest on Drawings: 6%.
(Answer: Gross Profit: 7 2,100; Net Loss: 6,930; Balanee sheet: 7 37,300)
 the
9. From the following Trial balanceof Vinayaka Enterprises, prepare final accounts for
yearending 31.12.2018.
Trial Balance as on 31.12.2018
Credit Balances Amount
Debit Balances Amount

12400 Capital 40000

Purchases
Furniture 8000 Bills Payable 2500

Opening stock 7600 Creditors 5900

1500 Interest received 1500
Cash
28500
Sales Returns 1500 Sales
Wages & Salaries 4700 Purchase returns 400

Rent, Rates & Taxes 3600 Commission 4500

Sundry De btors 13500 Discount 3600

5400 Miscel laneous Income Rc 3200

Machinery
Investments 8000

Discount 1100

Commission 1300

Carriage 600

Trade expenses 700

Stationary 1000

Factory Rent 1600

Coal&Gas 2200

Interest on Capital 3000

Bad Debts 1000

Goodwill 10000

Accrued Di vidend 1400

90,100 90,100

Adjustments
(1) Closing stock: 10,500, (2) Bad debts: 1,500 and Provide Reserve for Doubtful Debts: 5%,
(3) Outstanding Factory Rent: 400, (4) Depreciation on Furniture: 10%. (5) Interest received in
advance: 500. (6) Stock worth ofRs. 10,000 destroyed in fire and Insurance Co. admitted a claim
of Rs. 7,500.
Answer: Gross Profit: 18,400; Net Profit: 13,600; Balance Sheet: 62,9001
10. Prepare final accounts of Raghavendra Trader's for the ycar ended 31.03.2019

Trial Balance

Debit Bala nces Amount Credit Balances Amount

Opening stock 10000 Sales 40000

Purchases 15000 Interest 2800

Draw ings 4000 Com mission 3200

Carriage inwards 800 Capital 90000

Salaries 7500 Creditors 7600

Wages 3200 Reserve for Bad & Doubtful Debts 2500

Postage 5100 Interest on Drawings 1500

Bills Receivable 6000 Dividend Rece ived 2100

Furniture 15000 Bills Payable 10000

Insurance 2000

Xerox charges 300

General Expenses 1700

Machinery 30000

Bank Charges 1000

Trade Marks 12000

Advt. ex pen ses 2600

Import Duties 1250

Coal & Water 1650

Debtors 40000

Bad debts 600

1,59,700 1,59,700

Adjustments

d) Closing Stock Valuc: 7500, (2) Depreciation on Machinery: 10%,() Commission Received in
Advance: 1,000, (4) Outstanding Salaries: 1,500, (5) Further Bad Debts: 400, and Provision for
Bad & Doubtful Debts: 5% (6) Good worth ofRs. 5,000withdrawn by the owner for his personal
use.

(Answer: GP: 7 20,600; NP: 4,020; Balance Shet: 7 1,05,120).

11 Prepare final accounts of YadadriTrader's as on 31.12.2018

Trial Balance as on 31.12.2018

Debit Balances Amount Credit Balances Amount

Cash 4200 Sales 20000

10000 Interest 4000

Purchases
Carriage 1000 Discount 3500
Factory rent 1200 Overdraft 2500

Salaries & Wages c 2400 Capital 50000

6000 Creditors 3000

Machinery
Discount 700

Copyright 10000

Carriage on sales 400

Clearing charges 300

Bills Receivable 12000

Opening Stock 3000

Printing & Stationery 2500

Coal& Gas 800

Debtors 10000

Drawings 1500

Furniture 15000

Office Expenses 1500

Internet charges 500

83,000 83,000

Adjustments
Create 6% Provision for Bad &
(1) Closing stock: 6500, (2) Prepaid Salaries & Wages: 400. (3)
Doubtful Debts (4) Depreciation on Machinery: 10% (5) Interest on Capital: 6% (6) MD's
Commission on Net Profit is 10% before charging such commission.
(Answer: GP: 7 10,200; Net Profit: F 5,310; Balance Sheet: F 62,900)
12. Prepare Veena Entereprises Final Accounts for theyear ended 3 1-12-2018.

Trial Balance as on 31.12.2018

Debit Balances Amount Credit Balances Amount

Purchases 17,000 Capital 1,00,000

Opening Stock 9000 Returns 600

Returns 800 Sales 25,000

Debtors 25,000 Bill Payable 3,000

1,500 Commission 800

Insurance

1,600 Discount 1,500

Wages
1,300 Bank overdraft 5,000
Repairs
Audit Fee 1,200 Creditors 4,000
2600
Bad Debts 1,000 Outstanding Wages
600
Carriage
Rent&Taxes 2,200
Printing Charges 2,600
Patents 20,000

Discount 500

Freight 600

Furniture 16,000

Speed Post Charges" 900

Machinery 40,000

Legal Charges 700

1,42,500 1,42,500

Adjustments
Reserve for Bad Debts. 5% 3) Depreciation on patents 10%
) Closing Stock Value: 8,300, 2)
Receivable: 400, 6) Interest on Capital: 6%.
4) Outstanding Rent: 600, 3) Commission
Sheet: 1 , 06,450)
(Answer: Gross Profit: 7 4,300; Net Loss: 7 14,750; Balance
13 Prepare final Accounts of Srivasthava Traders as on 31-12-2018
Trial Balance as on 31.12.2018

Particulars Debit Balance Credit Balance?

Cash 4,000
Opening Stock 2,100
Wages 700
Carriage on Purchases 600
Carriage on Sales 400
Audit Fee 800
Drawings 4,500
Debtors 15,000
Freight 700
Loose Tools 6,500
Buildings 11,000
Power & Fuel 500
Salaries 850
Purchases 10,000
Sales Returs 1,000
Goodwill 7,500
Patents 5,000
Postage & Stamps 850
Capital 40,000
Creditors 5,000
Interest Received in Advance 250
Bills payable 2,650
Bank Overdraft 3,000
Sales 16,000
Rent Received 2,600
Purchase Returns 500
Bad Debts Reserve 2,000
72,000 72,000
Adjustments
Closing stock value: 6000

2) Outstanding Salary: R450

3) Interest on Drawings: 10%
4) Provide Reserve for Doubtful Debts: 5% and Create Provision for Discount on Debtors 20%
5) Depreciation on Buildings: 10%

6) Goods worth of 2000 distributed as frec samples.

(Ans.: Gross profit: 7 8,900; Net Profit: F 6,465; Balance Sheet Total: 7 52,865)

14. From the following Trial Balance, prepare Final Accounts for the year endcd 31.03.2019

Trial Balance as on 31.03.20019

Debit Balances Amount Credit Balances Amount

Purchases 24,600 Sa les 62,100

1,600 Capital 35,000

Machincry
3,500 Creditors 3,900
Wages
690
Bad Dcbts 450 Discount

Furniture 20,000 Reserve for Bad & Doubtful Debts 800

Opening Stock 18,350 Purchase Returns 230

Sales Returns 1,200

Debtors 10,400
Carriage 350

Salaries 9,650
Carriage on Sales 540

Rent &Taxes 2,680

Cash at Bank 8,000

Cash in hand 1,400

1,02,720 1,02,720

Adjustments
1) Closing Stock Value: 17,800
2) Outstanding Wages: 7 400

Prepaid Rent &Taxes: 380

3)
4) Provide Reserve for Bad &Doubtful Debts on Sundry Debtors 5%

5) Depreciation on Furniture: 10%

6) Reserve for Discount on Creditors: 5%.
(Ans: Gross Profit: 7 31,730; Net Profit: 17,955; Balance Sheet: 7 57,060)
15. From the following Trial Balance ofSudheer Trader's prepare Final Accounts for the year
ended 31-3-2018

Trial Balance as on 31-3-2018

Debit Balances Amount Credit Balances Amount

Cash 4,000 Capital 38,000

Purchases 42,000 les 92,000
Returns 500 Returns 600

Wages 6500 Discount 800

Power and Fuel 3500 Creditors 9000

Salaries 6500 Bank Overdraft 3000

Clearing Charges 800

Carriage on Purchases 1800

Opening Stock 8400

Machinery 25,000
Buildings 15,000
Furniture 6,000
Debtors 12,600
General Expenses 2,600
Rent, Rates & Taxes 3,200

Drawings 5,000
1,43,400 1,43,400

Adjustments
1) Closing stock value: 7 16,400
2) Depreciation on Furniture: 5%, on Machinery: 10%
3) Outstanding Wages: 500
4) Write off 7 600 as Bad Debts and create Provision for Bad & Doubtful Debts: 6%
5) Interest on Drawings: 5%
6) Stock worth of 12000 destroyed by fire and Insurance Company admitted a claim of

8500.
(Answer: G.P: { 57,000; NP: 7 38,130; B/s. Total:7 83,380)
16. Prepare Final Accounts for theyear ended31.03.2018

Trial Balance as on 31.03.2018

Debit Balances Amount Credit Balances Amount

Purchases 2,00,000 Sales 4,72,350

Machinery 40,000 Capital 45,000
Land&Buildings 50,000 Interest on Drawings 1,000

Returns 5,000 Returns 2,540

Reserve for Doubtful

Lighting 6,000 Debts 1,000

Debtors 92,000 Creditors 56,460

Cash at Bank 28,000

Opening Stock 50,250
Advertisement 4,800

Wages 40,000
Furniture 8,000

Salaries 49,000
Freight 5,300

5,78,350 5,78,350
Adjustments

1) Closing stock value: Rs.53,000

2) Outstanding Salaries: Rs. 5,000

3) Bad Debts: Rs. 2000, Create Reserve for Bad Debts: 5% and Provision for-Diseeunt On
Debtors: 2%

4) Depreciation on Machinery: 5%
5) Lighting: Factory-Rs. 4000 and Office- Rs. 2000

6) Manager's Commission is 10% on Net Profit after charging such commission.

(Ans: G.P.: 2,23,340; NP: Rs. 1,40,300; B/s : Rs. 2,60,790)

(Hint: Manager's Commission=1,54,330 x 10/110= 14,030)