Academic Session 2023- 2024

WORKSHEET – FINANCIAL STATEMENTS

1. Calculate Cost of Goods Sold and Closing Stock from the following information : Sales ₹5,40,000; Sales
Returns ₹16,000; Gross Profit ₹ 1,20,000; Opening Stock ₹20,000; Purchases ₹4,00,000; Purchase Returns
₹4,000; Carriage Inward ₹ 15,000.
[Ans. COGS ₹ 4,04,000; Closing Stock ₹ 27,000
2. In a burglary at the godown of Harshitaj Traders on the night of 14th July, 2022, part of the stock was
stolen. From the following particulars, find out the estimated value of loss of stock by theft:
Stock on 1st April, 2022 ₹ 60,000
Purchases from 1st April to 14th July, 2022 ₹ 4,10,000
Sales from 1st April to 14th July, 2022 ₹ 6,00,000
Stock remaining after burglary ₹ 12,000
The normal rate of gross profit for his business is 30% of selling price.
[Ans. Loss by theft ₹ 38,000]
3. Calculate closing stock from the following details :
₹
Opening Stock 20,000
Cash Sales 60,000
Credit Sales 40,000
Purchase 70,000
1
Rate of Gross profit on cost 33 %. [Ans. ₹ 15,000]
3
4. From the following information, prepare the Trading Account for the year ended 31st March, 2022 :
Adjusted Purchases ₹ 15,00,000; Sales ₹21,40,000; Returns Inwards ₹40,000; Freight and Packing
₹ 15,000; Packing Expenses on Sales ₹20,000; Depreciation ₹36,000; Factory Expenses
₹60,000; Closing Stock ₹1,20,000. [Ans. Gross Profit ₹5,25,000]
5. Calculate cost of goods sold from the following :

₹ ₹
Opening Stock 40,000 Wages & Salaries 10,000
Net Purchases 50,000 Rent Paid 15,000
Net Sales 1,90,000 Closing Stock 15,000
[Ans. Cost of Goods Sold ₹ 85,000]

6. Ascertain cost of Goods Sold and Gross Profit from the following : ₹
Opening Stock 32,000
Purchases 2,80,000
Direct Expenses 20,000
Indirect Expenses 45,000
Closing Stock 50,000
Sales 4,00,000
Sales Returns 8,000
[Ans. Cost of goods sold ₹2,82,000; Gross Profit ₹ 1,10,000.]
 NEW ERA PUBLIC SCHOOL, SECTOR – 25, DWARKA

7. Calculate Gross Profit on the basis of the following information :

Purchases 6,80,000
Return Outwards 30,000
Carriage Inwards 20,000
Carriage Outwards 15,000
Wages 50,000
3/4 of the goods are sold for ₹6,00,000. Ans. Gross Profit ₹60,000.
8. Ascertain the value of dosing stock from the following :
₹
Opening Stock 1,20,000
Purchases during the year 9,30,000
Sales during the year 15,60,000
Rate of Gross Profit 40% on Sales
[Ans. Closing Stock ₹ 1,14,000.]
9. Calculate closing stock from the following details :
₹
Opening Stock 4,80,000
Purchase 13,60,000
Sales 19,50,000
G.P. is 30% on Cost.
[Ans. Closing Stock ₹3,40,000]
10. Following is the extract of Trial Balance as on 31st March, 2023:
Particulars Dr.(₹) Cr.(₹)
Debtors 1,04,000
Bad Debts 3,000
Additional Information: One of the debtors who owed us ₹ 4,000 became insolvent and nothing could
be recovered. Show the relevant extract from the Profit and Loss Account and the Balance Sheet.
11. Following is the extract of Trial Balance as on 31st March, 2023:
Particulars Dr. (₹) Cr.(₹)
Debtors 1,23,000
Bad Debts 2,000
Provision for Doubtful Debts 4,000
Additional Information: Further Bad Debts amounted to ₹ 3,000. Create provision for doubtful debts @
10% on Debtor. Show the relevant extract from the Profit and Loss Account and the Balance Sheet.
 NEW ERA PUBLIC SCHOOL, SECTOR – 25, DWARKA

12. Following is the extract of Trial Balance as on 31st March, 2023:

Particulars Dr.(₹) Cr.(₹)
Debtors 2,06,000
Bad Debts 5,000
Provision for Doubtful Debts 7,000
Additional Information:
(a) An amount of ₹ 6,000 due from a party, the recovery of which was doubtful before compilation of
the Trial Balance, thereafter proved to be a bad debt and required to be written off.
(b) Create provision for doubtful debts @ 10% on Debtor
(c) Create provision for discount on debtors @ 5% on Debtor
Show the relevant extract from the Profit and Loss Account and the Balance Sheet.
13. Extract of a Trial Balance as at March 31, 2022 is as follows :
Sundry Debtors ₹ 1,02,000
Bad Debts ₹ 1,400
Provision for doubtful debts ₹3,400
Additional information :
A debtor of ₹2,000 could not be recovered. It is decided to maintain Provision for Doubtful Debtors @
5% on Debtors and Provision for Discount at @ 2%.
How these adjustments will be shown in Financial Statements?
14. The following balances are extracted from the books of the Chandigarh Medical Store for the year ending
31st March, 2022:
Debit Balances Amt.(₹) Particulars Amt. (₹)
Salaries 17,500

Opening Stock 90,000 Rent 15,000

Cash 60,000 Stationery 6,800
Legal Charges 9,000 Postage 200
Purchases 1,20,000 Discount Allowed 3,000
Carriage Inward 9,000 Furniture 90,000
Insurance 15,000 Credit Balances
Debtors 88,000 Sales 3,00,000
Office Expenses 40,000 Bills Payable 70,000
Bad Debts 5,500 Commission Received 11,500
Interest Paid 8,500 Creditors 61,000
Advertisement 5,000 Capital 1,40,000
Prepare Trading and Profit and Loss Account and Balance Sheet as on 31st March, 2022 after considering
the following adjustments:
(i) Closing stock was valued at ₹ 95,000.
 NEW ERA PUBLIC SCHOOL, SECTOR – 25, DWARKA
(ii) Salaries outstanding are ₹ 7,000.
(iii) Prepaid insurance is ₹ 1,500.
(iv) Stationery bill outstanding is ₹ 1,200.
(Gross Profit = ₹ 1,76,000; Net Profit = ₹ 55,300; Balance Sheet Total = ₹ 3,34,500)
15. Given below is the Trial Balance of Mr. Mango as on 31st March, 2022:
Particulars Dr. (₹ ) Cr.(₹)
Opening Stock 5,000
Purchases 25,000
Sales 40,000
Wages 4,000
Carriage Inwards 300
Carriage Outwards 200
Cash in Hand 400
Cash at Bank 7,600
Salaries 2,400
Rent Paid 1,200
Insurance 600
Discount Allowed 100
Furniture 10,000
Sundry Debtors 5,000
Sundry Creditors 4,000
Printing and Stationery 500
Office Expenses 1,000
Capital 20,000
Drawings 700
64,000 64,000
Adjustments:
(i) Closing Stock ₹ 6,000
(ii) Outstanding salaries ₹ 400
(iii) Prepaid expenses ₹ 100
(iv) Depreciate furniture by 10%
Prepare Trading account and Profit and Loss Account for the year ending 31st March, 2023 and a Balance
Sheet as on that date.
(Gross Profit = ₹ 11,700; Net Profit = ₹ 4,400; Balance Sheet Total = ₹ 28,100)
16. The Trial Balance of Kajaria Tiles Pvt. Ltd. on 31st March, 2022 revealed the following balances:
Debit Balances Amt. (₹) Credit Balances Amt. (₹)
Debtors 30,000 Capital Account 80,000
Salaries 8,000 Sales 1,50,000
 NEW ERA PUBLIC SCHOOL, SECTOR – 25, DWARKA
Wages 7,000 Returns Outward 1,000
Carriage Inward 1,000 Discount Received 500
Purchases 50,000 Creditors 23,800
Plant 50,000
Carriage Outward 3,000
Building 30,000
Rent 1,800
Furniture 20,000
Advertisement 5,000
Bank Charges 50
Opening Stock 35,000
Cash 12,000
Discount Allowed 450
Returns Inward 2,000
2,55,300 2,55,300
Taking into consideration the following adjustments, prepare Trading and Profit and Loss Account for the
year ended 31st March, 2022 and the Balance Sheet as on that date,
(i) Stock on hand as on 31s' March, 2015, ₹ 28,000.
(ii) Salaries Outstanding ₹ 2,000.
(iii) Provide depreciation on Plant @ 10% p.a., on Building @ 5% p.a.
(iv) Write off ₹ 2,000 as depreciation on Furniture.
(Gross Profit = ₹ 84,000; Net Profit = ₹ 55,700; Balance Sheet Total = ₹ 1,61,500)
17. From the following Trial Balance of Daljit Dosanj, prepare a Trading and Profit and Loss Account for the
year ended 31st March, 2022, and a Balance Sheet as on that date:
Debit Balances Amt.(₹) Credit Balances Amt. (₹)
Opening Stock 20,000 Sales 2,70,000
Purchases 80,000 Purchases Return 4,000
Sales Return 6,000 Discount 5,200
Carriage Inward 3,600 Sundry Creditors 25,000
Carriage Outward 800 Bills Payable 1,800
Wages 42,000 Capital 75,000
Salaries 27,500
Plant and Machinery 90,000
Furniture 8,000
Sundry Debtors 52,000
Bills Receivable 2,500
Cash in Hand 6,300
 NEW ERA PUBLIC SCHOOL, SECTOR – 25, DWARKA
Travelling Expenses 3,700
Lighting (Factory) 1,400
Rent and Taxes 7,200
General Expenses 10,500
Insurance 1,500
Drawings 18,000
3,81,000 3,81,000
Adjustments:
(i) Stock on 31st March, 2022 was valued at ₹ 24,000 (Market Value ₹ 30.000).
(ii) Wages outstanding for March, 2022 amounted to ₹ 3,000.
(iii) Salaries outstanding for March, 2022 amounted to ₹ 2,500.
(iv) Prepaid insurance amounted to ₹ 300.
(v) Provide depreciation on Plant and Machinery at 5% and on Furniture at 20%.
(Gross Profit = ₹1,42,000; Net Profit = ₹87,700; B/S Total = ₹ 177,000)
18. From the following Trial Balance prepare Trading Profit and Loss Account for the year ended 31st March,
2023 and Balance Sheet as on that date:
Particulars Dr.(₹) Cr.(₹)
Capital / Drawings 6,000 50,000
Cash at Bank 2,000
Cash in Hand 500
Building 30,000
Wages 15,000
Salaries 10,000
Loan 10,000
Land 13.500
Carriage Inward 800
Coal and Gas 2,200
Rent 1,800
Printing and Stationery 1,200
Stock 8,000
Purchases / Sales 70,000 1,25,000
Insurance Charges 800
Machinery 12,000
Travelling Expenses 1,800
Sundry Debtors / Creditors 15,000 12,200
Returns 1,500 2,000
Discount 500 400
 NEW ERA PUBLIC SCHOOL, SECTOR – 25, DWARKA
Furniture 7,000
1,99,600 1,99,600
Adjustments:
(a) Insurance prepaid ₹ 200, Outstanding salaries ₹ 600 and Outstanding wages ₹ 1,500;
(b) Create a provision for doubtful debts at 3% on debtors;
(c) Provide 10% depreciation on machinery and 5% on furniture;
(d) Closing stock was valued at ₹ 10,000.
(Gross Profit = ₹ 38,000; Net Profit = ₹ 19,900; Balance Sheet Total = ₹ 88,200)
19. The following balances were extracted from the books of RRR as on 31st March, 2023:
Particulars Amt.(₹) Particulars Amt.(₹)
Capital 24,500 Bad Debts 550
Drawings 2,000 Loan 7,880
General Expenses 2,500 Sales 65,360
Building 9,000 Purchases 47,000
Machinery 9,340 Scooter 2,000
Stock 16,200 Bad Debts, Provision 900
Power 2,240 Commission (Cr.) 1,320
Taxes and Insurance 1,315 Salaries 1,800
Wages 7,200 Bills Payable 3,850
Debtors 6,280 Cash 2,080
Creditors 2,500 Bank Overdraft 3,300
Repairs 105
Prepare final accounts for the year ended 31st March, 2023 after giving effect to the following adjustments:
(a) Stock on 31st March, 2014 was valued at ₹ 23,500.
(b) Write off ₹160 as further bad Debts and maintain provision for Bad Debts at 5% on debtor
(c) Depreciate machinery at 10% and scooter 12%.
(d) Provide ₹750 for outstanding interest on overdraft.
(Gross Profit = ₹ 16,220; Net Profit = ₹ 9,780; Balance Sheet Total = ₹ 50,560)
19. From the following balances and additional information, you are required to prepare Trading and Profit
and Loss Account and Balance Sheet on 31st March, 2023.
Debit Balances Amt.(₹) Credit Balances Amt.(₹)
Machinery 4,000 Capital 9,450
Cash at Bank 1,000 Sales 16,000
Cash in hand 500 Sundry Creditors 4,500
Wages 1,000 Interest Received 300
Purchases 8,000
Stock (1-4-2022) 6,000
Sundry Debtors 4,400
 NEW ERA PUBLIC SCHOOL, SECTOR – 25, DWARKA
Bill Receivable 2,900
Rent 900
Commission 250
General Expenses 800
Salaries 500
30,250 30,250
Additional Information:
(a) Stock on 30th June, 2023 ₹ 8,000.
(b) Wages outstanding amounting to ` 50.
(c) Rent prepaid` 100.
(d) Depreciate machinery at 10% p.a.
(Gross Profit = ₹ 8,950; Net Profit = ₹ 6,500; Balance Sheet Total = ₹ 20,500)
20. From the following Trial Balance of Reebok Stores, prepare Trading and Profit and Loss Account for the
year ended 31st December, 2023 and Balance Sheet as on that date:
Particulars Dr. (₹) Cr.(₹)
Capital 1,76,000
Drawings 15,700
Building 2,00,000
Purchases and Sales 3,10,000 5,20,000
Returns 3,000 2,000
Rent Received 6,700
Carriage 8,600
Wages 24,000
Salaries 37,000
Apprentice Premium 10,000
Insurance 2,000
Audit Fees 1,500
Cash in Hand 10,000
Cash at Bank 30,000
Bank Loan 20,000
Interest on Loan 1,800
Debtors and Creditors 1,00,000 40,500
Bills Receivable and Bills Payable 5,000 7,500
Printing and Advertising 4,500
Commission 2,000
Opening Stock 31,600
7,84,700 7,84,700
 NEW ERA PUBLIC SCHOOL, SECTOR – 25, DWARKA
Adjustments:
(a) Stock at the end ₹ 40,500.
(b) Depreciate Building by 10%.
(c) Wages due but not paid ₹ 2,000.
(d) Commission earned but not received amounted to ₹ 300.
(e) Apprentice Premium received in advance ₹ 1,000.
(f) Interest on Bank Loan @ 12% p.a. is unpaid for the last 3 months.
(Gross Profit = ₹ 1,83,300; Net Profit = ₹1,33,900; Balance Sheet Total = ₹ 3,65,800)
21. The following are the balances extracted from the books of Raghunath Ji as on 31st March, 2022. From
these balances, prepare his Trading and Profit & Loss Account and Balance Sheet :
Dr.(₹) Cr.(₹)
Opening Stock 12,000
Purchases 40,000
Sales 86,000
Discount 400
Sales Return 6,000
Buildings 50,000
Debtors 16,000
Salaries 2,400
Office Expenses 1,200
Wages 10,000
Purchase Return 4,000
Interest 800
Travelling Expenses 400
Fire Insurance Premium 800
Machinery 20,000
Carriage on Purchases 700
Commission 400
Cash in hand 2,300
Rent and Taxes 1,800
Capital 62,000
Creditors 10,800
1,64,000 1,64,000
Adjustments
1. Closing Stock was valued at ₹ 16,000,
2. Wages ₹2,000 and salaries ₹ 1,200 are outstanding.
3. Rent for two months at the rate of ₹500 per month is outstanding.
4. Depreciate Buildings by 5% and machinery by 10%.
5. Prepaid Insurance ₹200.
[Ans. G.P. ₹35,300; N.P. ₹23,000 and B/S Total ₹ 1,00,000.]