Ans -1 In the books of Mr Roy

Trading and profit and Loss Account

For the year ended 31st March 2021
Details $
Sales(Revnue) 235000
Less: Sales returns/Return inwards 2500

Less: Cost of goods sold

Opening stock
Purchases 150000
Less: Purchase returns/Return outwards 4500
Direct wages
Carriage inwards

Less:Closing stock
Gross profit

Add: Incomes
Disocunt received

Less: Expenses
Rent and Taxes
Stationery expenses
Bad-debts
Insurance
Salaries
Travelling expenses
Factory lighting
Net profit

Ans - 3 (Text book pg 113)

In the books of Rani

Profit and Loss Account
For the year ended 31st Dec
Details $
Gross profit
Add: Incomes
Rent from subleting
Discount received
 Less: Expenses
Wages and Salaries
General expenses
Loan expense
Discount allowed
Advertising
Property tax
Motor expenses
Net Loss

Finacial statement with adjustment

Ans - 1 In the books of P. Sen

Trading and Profit and Loss Account
For the year ended 31st March 2016
Details $
Sales 300000
Less:Return inwards 16000

Less: Cost of goods sold

Opening stock
Purchases 160000
Less:Return outwards 10000

Carriage inwards
 Less: Closing stock
Gross profit
Less: Expenses
Wages 30000
Add: Outstaning wages 4000
Gas and fuel 8000
Less: Advance gas and fuel 1000

Freight inwards
Net Profit

In the books of Mr Thomas

Profit and Loss Account
For the year ended 31st March 2017
Details $
Gross profit
Add: Incomes
Interest 6000
Add: Interest due 1200

Discount received
Commission received

Less: Expenses
Salaries 10000
Add: Outstanding salaries 4200

Rent 22000
Add: Outstanding rent 4400

Insurance 8000
Less: Prepaid insurance 2100

Depreciation Building(80000 x 10%)

Bad-debts
Provison for bad debts
Net profit
 Vertical format

Ans - 3 In the books of Mr Thomas

Profit and Loss Account
For the year ended 31st March 2017
Details $
Sales 235000
Less: Returns inward 2500

Less:Cost of goods sold

Opening stock
Purchases 150000
Less: Return outwards 4500

Carriage inwards

Less: Closing stock

Gross profit
Add: Incomes
Discount received

Less: Expenses
Salaries 14000
Add: Outstanding salaries 6300

Insurance 2000
Less: Prepaid insurance 600

Depeciation :
Plant and Machinery (55000 x 10%) 5500
Furniture (22000 x 5%) 1100

Bad-debts 1500
Add:Further bad-debts 500
2000
Add: New provision 5% on debtors 900
 Manufacturing expenses
Rent and Taxes
Discount allowed
Travelling expense
Factory lighting
Net profit

In the books of Heera Ltd

Ans-4 Profit and Loss Account
For the year ended 31st March 2016
Details $
Sales 175000
Less:Sales returns 3200
Less: Cost of goods sold
Opening stock
Purchases 85000
Less:Returns outwards 4000
Carriage inwards

Less:Closing stock
Gross profit
Add: Incomes

Less: Expenses
Salaries 18000
Add:Outstanding salaries 530

Insurance premium 7500

Less:Prepaid insurance 600

Depreciation on furniture
Bad-debts 900
Add:Further bad-debts 300
1200
Add: provision for doubtful debts 110

Printing and stationery

Rent paid
Discount allowed
Postage charges
Telephone expense
Repairs of Building
 Cleaning Expenses
Travelling Expenses

Trading and profit and loss Account

For the year ended 31st March 2016
Ans- 5 Details $
Sales 180000
Less: Sales returns 3000

Less: Cost of goods sold

Opening stock
Purchases 175000
Less: Purchase returns 2000
Direct wages

Less: Closing stock

Gross loss
Add: Income
Rent received 6000
Add:Rent receivable 2000

Discount received
Commission 4000
Less: Advance received 1000

Less: Expenses
Depeciation on building(110000 x 10%)
Salary 8000
Add:Outstanding 3000

Insurance 3200
Less: Prepaid 800

Bad-debts 2000
Less: Old provision 2300
Add: Provision for doubtful debts 8200

Discount allowed
Office rent
Electricity expenses
 Repairs
Travelling expenses
Printing and stationery
Legal fees
NET LOSS

In the books of Alfa LTD

Trading and profit and loss Account
For the year ended 31st March 2019
Details $
Sales 175000
Less: Sales returns 2200

Less: Cost of goods sold

Opening stock
Purchases 83000
Less:Returns outward 4200

Carriage inwards

Less:Closing stock
Gross profit

Add: Other Incomes

Discount received

Less: Expenses
Salaries 18000
Add: Outstanding salaries 530

Insurance premium 7300

Less: Prepaid insurance 500

Depreciation
Office premises (10% of 15900) 1590
Furniture(5% of 25000) 1250

Bad debt 900

Add: Furtther bad debts 700
1600
 Profit and loss Account
For the year ended 31st March 2017
Details $
Gross profit
Add: Incomes
Discount received
Commission received
Interest received 6000
Add: Interest due not received 1200

Less: Expenses
Rent paid 22000
Add: Outstanding rent(22000/10) x 2 4400

Insurance premium 8000

Less: Prepaid insurance 2100

Bad debts
Salaries 10000
Add: Outstanding 4200
Depeciation(Building) 80000 x 10%
 books of Mr Roy
ng and profit and Loss Account
he year ended 31st March 2021
$ $

232500

8500

145500
1500
3000
158500
10000 148500
84000

1650
85650

4500
1000
1500
2000
14000
6500
950 30450
55200

books of Rani
and Loss Account
he year ended 31st Dec
$ $
35000

6000
870
 41870

23000
13500
1000
500
680
1240
2550 42470
-600

DR Rani's Capital Account CR

Details $ Details $
Drawings 17000 Balance b/d 46000
Net loss 600
Balance c/d 28400
46000 46000

books of P. Sen
and Loss Account
he year ended 31st March 2016
$ $

284000

10000
22000 2200
150000 10

10000 4400
 170000
20000 150000
134000

Rent 22000
34000 Add: Outstanding rent 4400 26400

7000

8000 49000
85000

books of Mr Thomas
and Loss Account
he year ended 31st March 2017
$ $
100000

7200

2000
12000
121200

14200

26400

5900

8000
2000
4000 60500
60700
 books of Mr Thomas
and Loss Account
he year ended 31st March 2017
$ $

232500

8500

145500

3000
157000
1500 155500
77000

1650
78650

20300

1400

6600

2900
 1500
4500
1000
6500
950 45650
33000

books of Heera Ltd

and Loss Account
he year ended 31st March 2016
$ $

171800

12000

81000
4200
97200
1200 96000
75800
356
76156

18530

6900

1250

1310

5400
6500
450
2500
1200
ng and profit and loss Account
he year ended 31st March 2016
$ $

177000

50000

173000
3000
226000
32000 194000
-17000

8000

500

3000
-5500

11000

11000

2400

7900

1000
4300
1500
 1600
4200
500
500 45900
51400

books of Alfa LTD

ng and profit and loss Account
he year ended 31st March 2019
$ $

172800

13000

78800

4200
96000
1500 94500
78300

1356
79656

18530

6800

2840
 and loss Account
he year ended 31st March 2017
$ $
100000

2000
12000

7200 21200
121200

26400

5900

2000

14200
8000 56500
64700
Final Account with Adjustments

Ans - 3

Non-current Assets
Furniture
Less:Depreciation

Plant and Machinery

Less:Depreciation

Current Assets
Cash in hand
Cash at bank
Prepaid insurance
Debtors
Less: Further bad-debts
Less: New provision

Closing stock

Current Liabilities
Creditors
Outstanding salaries
Bills payable
Net Current Assets

Financed and Capital

Opening balance
Add: Profit during the year

Ans - 5

Non-current Assets
 Building
Less: Depreciation

Furniture

Current Assets
Sundry debtors
Less: Provision for doubtful debts

Bills receivable
Rent receivable
Insurance prepaid
Closing stock

Current Liabilities
Bills payable
Bank Loan (short term)
Advance commission
Salary outstanding

Financed and Capital

Opening balance
Less: Net Loss
Less: Drawings
Vertical format

Balance sheet
As on 31st March 2017
$ $ $

22000
1100 20900

55000
5500 49500

22500
16000
600
18500
500
900 17100

1500
57700

35000
6300
15600
800
71200

38200
33000
71200

Balance sheet
As on 31st March 2018
$ $ $
110000
11000 99000

20000
119000

82000
8200 73800

50000
2000
800
32000
158600

22000
35000
1000
3000
97600
216600

300000
51400
32000
216600

0
 Horizontal Format

Ans - 3 Balance sheet

Liabilities $
Capital 38200
Add: Net profit 33000 71200

Creditors 35000
Bills payable 15600
outstanding salaries 6300

128100

Ans - 5 Balance sheet

Liabilities $
Capital 300000
Less: Net loss 51400
Less: Drawings 32000 216600

Bills payable 22000

Bank Loan 35000
Salary outstanding 3000
Advance commission 1000
277600

0
ontal Format

Assets $
Furniture 22000
Less: Depreciation 1100 20900

Plant and Machinery 55000

Less: Depreciation 5500 49500

Debtors 18500
Less:Further bad debt 500
900 17100

Prepaid insurance 600

Closing stock 1500

Cash at bank 16000

Cash in hand 22500
128100

Assets $
Building (110000-11000) 99000
Furniture 20000
Sundry debtors (82000-8200) 73800
Bills receivable 50000
Rent receivable 2000
Insurance prepaid 800
Closing stock 32000

277600
Ans - 3 Trading and profit and loss Account
As on 31st March 2017
Details $
Opening stock 8500
Purchases 150000
Less: Return outward 4500 145500

Carriage inwards 3000

Gross profit(Balancing fig) 77000
234000
Manufacturing expenses 1500
Rent and Taxes 4500
Discount allowed 1000
Bad -debts 1500
Add: Further bad-debt 500
Add: New provision 900 2900

Insurance 2000
Less: Prepaid 600 1400

Salaries(14000+6300) 20300
Travelling expenses 6500
Factory lighting 950

Depreciaton
Furniture 1100
Machinery 5500
Net profit (bal fig) 33000
78650
ding and profit and loss Account
on 31st March 2017
Details $
Sales 235000
Less: Returns 2500 232500

Closing stock 1500

234000
Gross profit b/d 77000
Discount received 1650 Debtors 18500
Less: Further bad debts 500
18000
900

78650