ACCOUNTANCY

Assignment

FinancialStatements(WithAdjustments)

ACCOUNTANCY

1.

2.

The Trial Balance of ABC & Sons, shows the following balances on 31st March, 2004. Prepare
TradingandProfitandLossAccountandtheBalanceSheetasatthatdate,takingintoaccount
theadjustmentsgivenbelow.

Particulars
Rs.
Particulars
Rs.
Stock(1.04.03.)
5,200 Debtors
25,800
Purchases
21,000 Creditors
26,900
Sales
42,000 BankDeposit
12,000
PurchasesReturns
1,000 Commission(Cr.)
1,200
SalesReturns,
2,000 SalariesandWages
3,600
Carriage
7,500 Cashinhand
10,000
WagesandSalaries
2,000 LoanfromBank
15,000
PropertyTax
5,000 SharesinYLtd.
2,000
BadDebts
1,000 UnsecuredLoans
6,800
LifeInsurancePremium
1,700 Capital 1,57,500
ProvisionforBadDebts
800 Furniture
7,000
Drawings
5,400 Computer
40,000
FreeholdProperty
1,00,000

Adjustments:
(i)
ValueofgoodsinhandwasRs.8000
(iii)
Create10%provisionforbaddebts.
Debtors.

(ii)
(iv)

WriteofffurtherbaddebtsRs.1500
Create 10% provision for discount on

GivenbelowistheTrialBalanceofMr.RajaRamason31stMarch,2004.Prepare(i)Tradingand
Profit andLoss Accountfor theyear ended31st March, 2004and (ii) Balance Sheetas at that
date.
Particulars
L.F. DebitBalancesRs. CreditBalancesRs.
DiscountAllowed
350
Purchases
86,300
Sales
2,09,200
Commission
1,000
Salaries&Wages
25,000
Wages&Salaries
29,000
SecurityDepositwithLandlord
30,000
Furniture&Fittings
50,000
Rent
12,000
Cashinhand
7,000
BillsReceivable
15,850
Charity
850
IncomeTax
1,000
DiscountReceived
120
Debtors/Creditors
26,000
10S860
ClosingStock
2,000
Bank'
8,340
CapitalAccount
57,830

2,86,350
2,86,350


3.

4.

Adjustmentstobemadeare:

(i)ProvideWorksManager'scommission@10%onGrossProfit.
(ii)ProvideGeneralManager'scommission@10%onnetprofitsafterchargingallcommissions

From the following balances extracted from the books of Ramesh & Co. Prepare Trading and
Profit and Loss Account for the year ended 31st March, 2004 and Balance Sheet as at 31st
March,2004.

Particulars
Rs.
Particulars
Rs.
OpeningStock
2,900 SundryCreditors
24,500
SundryDebtors
20,000 Sales
1,98,900
Purchases
1,10,000 PurchasesReturns
1,800
SalesReturns
2,200 BadDebts
3,500
ExciseDuty
5,300 ProductiveExpenses
1,100
CarriageonGoodsPurchased
1,300 TradeMarks
9,000
Auditor'sFees
2,000 BankCurrentAccount(Dr.)
2,600
Investments
1,00,000 CapitalAccount
613,00
FactoryRent
4,800 Machinery
12,000
Coal,GasandPower
1,500 LeaseholdProperty
2,800

Charity
1,000
DiscountAllowed
500
CashinHand
4,000

AdditionalInformation:
(i)
ClosingStockRs.2,000

(ii)
AuditorsfeesoutstandingRs.800.

ThefollowingistheTrialBalanceofJatinTradingCo.asat31stMarch,2004.
Particulars
L.F.
Debit(Rs.)
Credit(Rs.)
Cash

12,000
Bank
1,60,000
Purchases/Sales
1,75,000
4,06,800
Buildings
2,30,000
Returns
6,000
3,000
CarriageInward
3,000
CarriageOutward
2,500
Salaries
12,500
Commission
1,200
4,000
Interest
1,500
1,000
Wages
2,000
OpeningStock
52,000
Rent,RatesandTaxes
45,000
Stationery
2,100
Drawings
10,000
TradeExpenses
2,000
Debtors/Creditors
1,60,000
77,000
Loan(Shortterm)

15,000
CapitalAccount

3,70,000
8,76,800
8,76,800

TakingintoaccountthefollowingadjustmentsPrepareTradingandProfit&LossA/cfortheyear
ended31stMarch,2004andaBalanceSheetasonthatdate.
Adjustments:

(i)RentOutstandingRs.500.(ii)ChargeDepreciation@10%onBuildings.(iii)Closingstockason
31.03.04stoodatRs.21,000.

ThefollowingistheTrialBalanceofBajrang&Coasat31stMarch,2004.

Particulars
L.F. DebitAmount(Rs.) CreditAmount(Rs.)
Cash
Bank
Purchases/Sales
Buildings'
Returns
Furniture
CarriageInward
CarriageOutward
Salaries
Rent
Commission
Interest
Wages
OpeningStock
Rent,RatesandTaxes
Stationery
Drawings
TradeExpenses
Debtors/Creditors
Loan(Shortterm)
CapitalAccount
Accumulated
Depreciation

17,000
6,000
2,10,000
3,80,000
6,000
6,000
3,000
2,500
1,08,800
1,200
2,000
17,000
8,500
2,100
10,000
3,000
1,10,200
on

8,93,300

3,74,500
4,000

2,000
3,800
2,000

60,000
15,000
430,000
2,000
8,93,300

PrepareTradingandprofit&lossA/cfortheyearending31stMarch,2004andBalanceSheetas
atdatetakingintoaccountthefollowingthefollowingadjustment:
Adjustments:
(i)RentOutstandingRs.1750 (ii)ChargeDepreciation@10%onBuildingandFurniture.
(iii)Closingstockason31.03.2004storedatRs.21000.

Prepare Trading and Profit & Loss Account and Balance Sheet of Ravindra and Co. as on 31st
March,2004fromthefollowingbalances,takingintoaccountthegivenadjustments.
Particulars
Rs.
Particulars
Rs.
Openingstock
8,000 Sales
3,81,000
Furniture
14,000 PurchasesReturns
1,500
Building
18,00,000 SalesReturns
3,000
Debtors
60,600 GeneralExpenses
88,200
WagesandSalaries
9,000 TravellingExpenses
8,100
Drawings
18,000 AdvertisingExpenses
2,400
Purchases
1,62,000 Creditors
21,500
CarriageInward
500 CashatBank
25,900
Cashinhand
16,100 Rent
2,400

Capital
18,00,000

Computer
38,000

BankOverdraft
52,200

Adjustments:
(i)TheclosingstockwasvaluedatRs,10,000. (ii) Advertising Expenses due on 31.03.04., Rs.
600.
(iii)DepreciateComputer@15%p.a.andBuildingandfurniture@5%p.a.(iv)Travellingcharges
prepaidforthenextyearisRs.250.

TheTrialBalanceofWahidon31stMarch,2004showedthefollowingbalances:

Particulars
Rs.
Particulars
Rs.
Openingstock
8,000 Sales
7,40,000
Furniture
54,000 PurchasesReturns
1,500
Building
6,80,000 SalesReturns
3,000
Debtors
66,100 GeneralExpenses
21^20
WagesandSalaries
39,000 InsuranceExpenses
1,050
Drawings
34,730
Purchases
2,94,000 Creditors
21,500
Drawings
CarriageInward
500 CashatBank
24,700
Cashinhand
12,800 Rent
31,500

Capital
5,10,000

PrepareTradingandProfit&LossAccountandBalanceSheetofWahid&Co.ason31stMarch,
2004.
Takingintoaccountthefollowingadjustments.
(i)TheclosingstockwasvalueatRs.10,000(ii)AdvertisingExpensesdueon31.03.04Rs.600.
(iii)DepreciateFurnitureandBuilding@10%and5%respectively,(iv)Insuranceexpensesinclude
Rs.250paidinadvance.

TheTrialBalanceofM/sMurliandSons,showsthefollowingbalancesason31stMarch,2004.
PrepareTradingandProfit&LossAccountfortheyearended31stMarch,2004andaBalance
Sheetasatthatdate.

Particulars
Rs.
Particulars Rs.
Stock(1.04.03)
5,000 ProvisionforDoubtfulDebts
2,000
Purchases
1,68,000 Debtors
3,12,000
Sales
2,25,600 BadDebts
700
PurchaseReturns
3,000 Creditors
31,000
SalesReturns
6,000 BankDeposit
2,90,000
FreightInward
2,500 Commission(Cr.)
7,500
Wages
6,000 SalariesandWages
10,800
RentandTaxes
15,000 CashinHand
30,000
Power
3,000 CashatBank
19,800
Advertisement
5,100 LoanfromBank
2,45,000
Interest(Cr.)
2,400 BillsReceivable
6,000
Drawings
48,000 BillsPayable
12,400
PlantandMachinery
2,90,000 Capital
7,40,000

Furniture
51,000

10

Thefollowingadjustmentsaretobemade:
(i) Value of goods on hand on 31st March 2004 was Rs. 5,880. (ii) Depreciate Plant and
Machinery@5%andFurniture@10%.(iii)WagesowingRs.500.(iv)FurtherbaddebtswereRs.
2,000andprovisionfordoubtfulwastobemade@2%Debtors.

FromthefollowingBalances,prepareaTradingandProfitandLossAccountfortheyearending
31stMarch,2004andBalanceSheetasat31stMarch,2004,

Particulars
Rs.
Particulars
Rs.
OpeningStock
7,000
55,500
SundryDebtors
60,000 SundryCreditors
2,12,100
Purchases
41,000 Sales
5,400
SalesReturns
6,600 PurchasesReturns
1,210
ExciseDuty
15,900 ProductiveExpenses
6,600
Carriageongoodspurchased
3,900 UnproductiveExpenses
27,000
Carriageongoodssold
2,700 PatentsandTradeMarks
4,60,000
Auditor'sFees
2,100 CapitalAccount
4,50,000
Investments
2,00,000 LeaseholdBuilding
36,000
FactoryRent
14,400 Machinery
42,000
Coal,GasandPower
4,500 BankOverdraft
1,00,000
InterestonInvestments
14,410 Loanfrombank

DiscountReceived
1,500
Cashinhand
12,000

Adjustmentstobemadeare:
(i) Closing stock was valued at Rs. 6,000. (ii) Create provision for Bad debts Rs. 1,000 (iii)
Depreciation to becharged@ 10% p.a. on Machinery,(iv) Interest on BankOverdraft Due Rs.
250.(v)FactoryRentwaspaidinadvancefor3months

PrepareFinalAccountsfromthefollowingbalancesfortheyearending31st March,2004,after
makingthenecessaryadjustmentsgivenbelow:

Particulars
Rs.
Particulars
Rs.
CapitalAccount
4,00,000 Debtors
10,960
Creditors
6,200 Machinery
2,00,000
Sales
7,10,000 Rent
54,000
BillsPayable
16,800 MiscellaneousExpenses
2,800
DebitBalances
CarriageonPurchases
700
Stock(opening)
9,200 BillsReceivable
21,000
Bank
13,040 Building
1,50,000
Wages
74,000 EstablishmentExpenses
45,300
Purchases
4,80,000

Drawings
72,000
Adjustments
(i)ClosingstockwasvaluedatRs.8,100(ii) Miscellaneous expenses were due Rs. 150 (iii)
DepreciateMachinery@20%p.a.(iv)WagesincludeRs.2,000forerectionofanewmachinery
costing Rs. 1,20,000 which was installed on 1.7.2003 (v) Rent was prepaid for the next six
months.

11

TheTrialBalanceon31stMarch,2004ofVikrantTradersshowsthefollowingbalances

Particulars
Rs
Particulars
Rs
Debtors
Creditors
DiscountAllowed
Cashatbank
Furniture
GeneralExpenses
Rent,RatesandTaxes
Salaries
Wages

12

12,000
18200
2,000
16,920
43,000
32,000
17,800
36,000
14,000

Sales
Purchases
BillsReceivable
PlantandMachinery
Capital
Stock(1.4.2003)
Buildings
BillsPayable
DiscountReceived

7,87,000
3,51,200
6,000
1
4,64,620
16,000
6,00,000
2,800
700

Prepare Trading and Profit and Loss Account for the year ending 31st March, 2004 and the
BalanceSheetasat31stMarch,2004afterconsideringthefollowingadjustments:
(i)ValueofstockinhandisRs.24,000on31stMarch,2004.(ii)GeneralExpensesoutstandingRs.
350.(iii)HalfofsalariestobechargedtoTradingAccount.(iv)DepreciatePlantandMachinery
@10%p.a.(v)CreateProvisionfordoubtfuldebts@7%.

From the following Trial Balance, prepare a Trading and Profit and Loss Account for the year
ending31stMarch,2004andaBalanceSheetofSikriTradingCo.asat31stMarch,2004.

CreditBalances
Rs.
DebitBalances(Contd..)
Rs.
ProvisionforDoubtfulDebts
Capital
AmountDuetoSuppliers
Sales
Loan
Interest
Discount

DebitBalances:
Purchases
AmountDuefromCustomer
Openingstock
Machinery
Computers

2,000
4,00,000
16,200
7,86,500
35,000
400
900
12,41,000

Cash
Bank
Repairs
AdvertisingExpenses
Office Expenses
Drawings
CarriageInward
Salaries
Interest
3,26,000 Discount
43,700 Rent,RatesandTaxes
7,800 Buildings
1,40,000
2,12,500

19,250
70,000
600
750
17,200
6,200
1,000
72,000
1,250
250
32,500
2,90,000
12,41,000

Thefollowingadjustmentsaretobemade:
(i)ThestockwasvaluedatRs.17,100on31.3.04.(ii)Depreciationtobeprovided@10%p.a.on
all Fixed Assets, (iii) It was found that a sum of Rs. 1,700 could not be recovered from the
debtors.(iv) ProvisionforbadanddoubtfuldebtstoberaisedtoRs.2,800.(v)
Rent
outstanding Rs. 3,500 (vi) Interest on loan due but not paid
Rs.1,550.


13.

14.

st

FollowingarethebalancesfromthetrialbalancesofHira&Co.ason31 March2004.

Particulars
Rs.
Particulars
Rs.
Stock(Opening)
15,100 BillsReceivable
18,210
WagesandSalaries
65,100 FurnitureandFixture
10,000
FreightInward
2,000 Cash
5,390
CarriageInward
1,500 Debtors
71,000
PlantandMachinery
33,000 Creditors
6,200
Purchases
2,72,000 Withdrawals
42,700
Sales
4,56,000 Billspayable
5,800
PurchasesReturns
1,800 Loan(Dr.)
40,000
SalesReturns
1,000 Capital
4,12,000
TradeExpenses
7,000 DiscountonSales
800
st
Prepare Trading and Profit and Loss Account for the year ended 31 March, 2004 and the
BalanceSheetasatthedatetakingintoaccountthefollowingadjustments.
(i)ClosingStockstoodatRs.24500(ii)WriteoffbaddebtsofRs.1000
(iii)Createaprovisionfordoubtfuldebts@5%(iv)FurnitureandPlantandMachineryaretobe
depreciated@10%p.a.(v)Charges2/3rdofwagesandsalariestoProfitandLossAccount.

PrepareTradingandProfit&LossAccountandBalancesSheetofS.Vinod&Co.ason31stMarch,
2004fromthefollowingbalancestakingintoaccounttheadjustmentsgiven:
Particulars
Rs.
Particulars
Rs.
OpeningStock
9200 Sales
769200
Furniture
15000 PurchasesReturns
8100
Computers
48000 SalesReturns
3000
Debtors
6600 GeneralExpenses
17120
WagesandSalaries
9000 TravellingExpenses
1560
Drawings
38000 AdvertisingExpenses
3620
Purchases
470000 Buildings
900000
CarriageInward
800 Creditors
10200
Cashinhand
900 CashatBank
4700
InterestonLoan
10000 Loan
200000
Capital
550000

Adjustment

(i)
Theclosing stockwasvalued atRs. 7000(ii)AdvertisingExpensesdueon 31.03.04
Rs.7120(iii)DepreciateFurnitureandBuilding@10%p.a.and5%p.a.respectively.
(iv) Traveling expenses prepaid were Rs. 870. (v) A bill of Rs. 1650 for repairs of
Buildingsremainedunpaidattheendoftheyear.


15.

st

ThefollowingistheTrialBalanceofM/sNareshasat31 March,2005.
Particulars
L.F.
DebitBalance(Rs.)
CreditBalance(Rs.)
Cashinhand
27,000
CashinBank
50,000
Purchases
3,30,000
Sales
3,90,000
ReturnsInward
6,000
ReturnOutward
1,750
Wages
30,000
Stock
1,02,000
Loan at 12% p.a. (on 0110
50,000
2004)
1,500
InterestonLoan
20,000
Salaries
40,000
1,72,250
Machinery
Capital
Debtors
80,000
Creditors
5,000
Rent
2,500
Insurance
5,000
LooseTools
6,94,0000
6,94,000
Total

Adjustment:
(i)WagesincludeRs.5,000forerectionofmachinery.Theamountwasincurredon01.04.2004.
(ii)ProvidefordepreciationofMachinery@5%p.a.(iii)ProvisionforDoubtfuldebts@5%on
debtors(iv)RentoutstandingforMarch,2005Rs.1000.(v)Salaryispaidupto30thJune,2005.
(vi)
Stock
on
31st
March,
2005
was
Rs.
1,02,200.
(vii)LooseToolsarevaluedatRs.1500(viii)Insuranceispaidupto30thJune2005.(ix)Auditor
FeedsoutstandingRs.17225.
You are required to prepare Trading and profit & loss account and Balance Sheet as at 31st
March,2005.

16.

FromthefollowingTrialBalanceofHarpreet,prepareaTradingandProfit&LossAccountand
BalanceSheetasat31s'March,2005.
TRIALBALANCE
Particulars
L.F.
DebitBalance(Rs.)
CreditBalance(Rs.)
Cash
4,000
Capital
13,000
Stockon01042004
1,00,000
Purchases
90,250
Land&Building
2,00,000
Creditors
78,5000
Debtors
1,35,000
Carriage
20,500
Sales
6,00,000
Returns
36,250
TradeExpenses
9,250
BillsPayable
10,000
BillsReceivable
50,000
Salaries
25,000
LoanfromX@12%(on010604)
28,000
FireInsurance
500
Trade Expenses accrued but not
1,500
paid
45,000
InterestonXsLoan
11,250
Machinery
4,500
ApprenticeshipPremium
7,37,500
7,37,500
BadDebts
Total

Adjustments:
(i) Purchases include Rs. 12,500 spent on installation of machinery. (ii) Depreciation is to be
chargedonLand&Buildingat10%.(iii)DepreciationistobechargedonMachineryRs.2,250.
(iv)ProvisionofRs.10,000fordoubtfuldebtsonDebtors.(v)Insuranceispaidupto30thJune,
2005.
(vi)

Salaries
unpaid
Rs.
5,000
(vii)ApprenticeshipPremiumunexpiredon31stMarch,2005Rs.3,750.(viii)Stockon31stMarch,
2005
was
Rs.1,20,000,

17.

18.

FromthefollowingTrialBalanceofM/sXasat31stMarch2005,prepareTradingandProfit&
LossAccountandBalanceSheet:
Particulars
L.F. DebitBalance CreditBalance
(Rs.)
(Rs.)

30,000

Stock
2,00,000

Purchases

2,52,000
Sales
50,000

Cash

1,00,000
Capital
40,000

Debtors

27,000
Creditors
2,000

Wages
15,000

Salaries
6,500

IncomeTax
10,000

10%BankDeposits

500
InterestonBankDeposits
3,000

Rent
4,000

BillsReceivable

1,000
BillsPayable
Machinery(01102004)
20,000

3,80,500
3,80,500

Adjustments:
(i)ClosingStockwasRs.65,000(ii)SalariesunpaidRs.1500(iii)Depreciationistobechargedon
Machineryat10%p.a.(iv)Createaprovisionof5%forDiscountonDebtors.(v)PrepaidrentRs.
2400.

ThefollowingistheTrialBalanceofMr.Sanjayasat31st March2005.
Particulars
L.F.
DebitBalance(Rs.)
Carriage

5,000
35,000
Wages
8,20,000
Purchases

Sales
10,000
CashinHand
12,750
Freight
12,500
Leaseholds

BankOverdraft
91,000
Debtors

Creditors

OutstandingWages

Capital
21,250
Investments
18,000
Furniture

Incomefromothersources

BillsPayable
7,750
Salaries
2,500
Commissionpaid
2,000
DepreciationonFurniture
MortgageInterest
4,000
10,41,750

CreditBalance(Rs.)

5,17,200

1,10,550

66,000
2,000
3,04,500

40,000
1,500

10,41,750

19.

Adjustments:
(i)ClosingstockamountedtoRs.3,92,500(ii)ProvideRs.19750forprovisionfordoubtfuldebts.
(iii) Salary outstanding Rs. 2500 (iv) Manager is entitled to a commission of 5% on net profit
beforecharginghiscommission.(v)AuditorsFeesoutstandingRs.6090

PrepareTradingandprofit&lossaccountandBalanceSheetasat31stMarch2005.
Prepare Trading and profit & loss account and Balance Sheet as at 31st March, 2005 from the
followingtrialbalance.
Particulars
Rs.
DebitBalance
Rs.
6,250 SundryCreditors
75,000
Cash
80,000 Sales
5,50,000
Stock(01042004)
1,00,000 Capital
1,69,500
SundryDebtors
1,90,000 OutstandingWages
2,500
Purchases
38,500 LoanonMortgage
7,000
Wages
22,500
AdministrationExpenses
12,000
TradeExpenses
1,500
MortgageInterest
2,18,750
Land&Building
6,500
CarriageInwards
1,00,000
Salaries
4,000
Carriageoutwards
13,500
Investment
LeaseholdProperty
10,5000
8,04,000
8,04,000

Adjustment
(i)ClosingStockamountedtoRs.1,15,000(ii)ProvisionforDoubtfulistobecreditedonSundry
1
Debtors @ 5% and provision for discount on sundry debtors at 2% (iii) th of Administration
5
Expensesaretobewrittenofthisyear.(v)SalaryforRs.2,000remainsunpaid.


20.

FromthefollowingTrailBalanceprepareTradingandprofit&lossaccountandBalanceSheetas
at31stMarch,2005.
TrialBalance
asat31stMarch,2005
Particulars
Rs.
DebitBalance
Rs.
1,87,500 Creditors
2,50,000
Stock
3,12,500 BillsPayable
14,000
Debtors
25,000 Sales
8,00,000
BillsReceivable
12,000 PurchasesReturns
12,500
CashinHand
8,50,000 CommissionReceived
500
Purchases
25,000 Capital
5,00,000
SalesReturns
2,25,000 DiscountReceived
2,500
FixedAssets
700 InterestonInvestments
7,500
CommissionPaid
3,000 SalesTaxCollected
5,000
DiscountAllowed
22,500 ApprenticePremium
1,000
Drawings
9,000 LoanfromBank@12%
1,25,000
Insurance
400
Rent
(172004)
1,000
AdvertisementExpenses
3,500
Carriage
6,500
BadDebts
3,100
Freight
Selling&Distribution
25,000
Expenses
InterestonLoan
frombank
6,300
17,18,000
17,18,000

Adjustments:
(i)ClosingStockwasRs.2,75,000(ii)Depreciationonfixedassetsistobechargedat10%p.a.
(iii)RentoutstandingforMarch2005Rs.100.(iv)Insuranceunexpiredon31stMarch,2005Rs.
1500 (v) Accrued Interest on Investments amounted to Rs. 4,025. (vi) Provision for doubtful
debtsistobecreatedat5%onDebtors.


21.

22.

ThefollowingistheTrialBalanceofMr.Zasat31stMarch,2005.

Particulars
Rs.
DebitBalance
Rs.
1,87,500 Creditors
90,000
Openingstock
1,50,000 BillsPayable
50,000
Debtors
75,000 BankOverdraft
10,000
BillsReceivable
10,000 Sales
2,50,000
Cashinhand
12,000
Plant&Machinery
PurchasesReturns
40,000 Capital
3,00,000
(on112005)
2,00,000 BaddebtsRecovered
1,800
Purchases
20,000 10%LoanfromBank
SalesReturns
15,000 (on010704)
50,000
BadDebts
700
Selling&Distribution
DiscountReceived
2,500
Expenses
6,500
Salaries
Office&Administration
16,000
Expenses
10,000
Insurance
500
DiscountAllowed
1,000
Rent
25,000
Drawings
2,000
CarriageInward
1,500
CarriageOutward
Interest
2,000
7,64,500q
7,64,500

Adjustments:
(i) Closing Stock was Rs. 2,00,000 (ii) Provision for Doubtful Debts is to be created at 10% on
debtors.(iii)Depreciationisprovidedonplant&machinery@10%p.a.(iv)Salaryoutstanding
Rs.15,000.(v)InsurancePremiumwaspaidfortheyearending30thJune,2005.(vi)Rentpaidin
advance
Rs.
200.
(vii)
Write
off
further
Rs.2,000asbad.

Prepare Trading and profit & loss account for the year ending 31st March, 2005 and Balance
Sheetasat31stMarch,2005.

FromthefollowingTrialbalance,preparetradingandprofit&lossaccountandBalancesheetas
at31stMarch,2005.
Particulars
Rs.
DebitBalance
CreditBalance
(Rs.)
(Rs.)
1,50,000
Purchases

Sales
1,20,000
35,000
Wages
50,000
Furniture
40,000
Plant&Machinery
2,00,000
Debtors
Creditors
1,60,000
3,700
Cash
Capital
2,00,000
300
SalesReturn
Rent
1,000
4,80,000
4,80,000

Adjustments:
(i) Closing Stock amounted to Rs. 1,003,300 (ii) Wages include Rs. 10,000 for the erection of
machinery.Theamountwasincurredon31.12.2005.(iii)CreateProvisionforDoubtfulDebts@
5%.(iv)CreateProvisionforDiscountonDebtors@2%.(v)Provide5%depreciationonPlant&
Machinery. (vi) Manager is entitled to a commission of 5% on Net Profit after charging his
commission(vii)Provide10%depreciationonfurniture.


23.

24.

FromthefollowingTrialBalanceofMr.SureshMehra,prepareTradingandprofit&lossaccount
andBalancesheetasat31stMarch2005.

Particulars
Rs.
DebitBalance
Rs.
5,000 Capital
70,000
Cash
50,250 SundryCreditors
25,000
SundryDebtors
17,500 PurchasesReturns
1,500
Stock
30,000 Sales
1,50,000
Plant&Machinery
84,650 Billspayable
2,000
Purchases
8,000 LoanonMortgage
5,000
SalesReturns
7,500 Discount
600
Drawings
3,000 BadDebtsReserve
650
CarriageInward
2,400
CarriageOutward
7,000
BillsReceivable
500
InterestonLoan
20,000
Salaries
4,500
GeneralExpenses
450
BadDebts
14,000
Advertising

2,54,750
2,54,750

Adjustment
(i) Provide for depreciation on Plant & Machinery at 5% (ii) Prepaid Salaries amounted to Rs.
2,000(iii)InterestonLoanat6%p.a.isunpaidforsixmonths.(iv)Provisionfordoubtfuldebtsis
to be maintained at 10% on Sundry Debtors. (v) Closing stock was valued at Rs. 15000 (vi)
ProvideforManagersCommissionat10%onNetProfitafterchargingsuchcommission.

FromthefollowingTrialBalanceasat31stMarch2005.Preparetradingandprofit&lossaccount
andBalancesheetasat31stMarch2005.

Particulars
Rs.
DebitBalance
Rs.
1,500 Capital
1,40,000
Cash
20,000 Loanat6%p.a.
70,000
Bank
3,20,000
Sundrydebtors
Sales
40,000
(includingMr.X)
SundryCreditors
7,500
fordishonored
Commission
80,000
ChequeRs.2000
3,00,000
Purchases
10,000
BillsReceivable
75,000
Land&Building
15,000
Salaries
2,000
TravellingExpenses
4,000
InterestonLoan
2,500
BadDebts
38,500
Wages
6,000
Rent&Taxes
3,000
Repairs&Renewals

5,77,500
5,77,500


25.

Adjustments
(i)
Stockinhandon31stMarch2005,Rs.50,000
(ii)
ProvisionforDoubtfulDebtsistocreatedat5%onSundryDebtors
(iii)
WagesincludeRs.1,000forconstructionofnewbuilding.Theamountwasincurred
on31.03.2005
(iv)
WriteoffhalfofMr.Xschequeasthesameisirrecoverable.
(v)
DepreciateLand&Building@5%
(vi)
CommissionnotearnedbutreceivedamountstoRs.500

FromthefollowingTrialBalanceasat31stMarch2006,youarerequiredtoprepareTradingand
profitandlossaccountfortheyearended31stMarch,2006andBalanceSheetasatthatdate.

Particulars
L.F.
DebitBalance
CreditBalance
(Rs.)
Rs.
10,250
CashinHand
51,250
CashatBank
2,00,000
Capital
15,000
Drawings
50,000
Plant&Machinery(Purchasedon
12,500
01.07.05)
37,500
Furniture&Fixture
2,05,000
OpeningStock
3,00,000
Purchases
5,000
Sales
2,500
ReturnsInwards
80,000
ReturnsOutward
24,500
Debtors
2,500
Creditors
1,750
Discount
53,250
Insurance
1,000
SalariesandWages
5,000
TradeExpenses
2000
Freight
Printing&Stationery

Adjustments:
(i)
Stockinhandon31stMarch,2006wasvaluedatRs.1,25,000
(ii)
ProvisionforDoubtfulDebtsistobemaintainedat5%onDebtors.
(iii)
DepreciatePlant&Machinery@10%p.a.andFurniture&Fixture@5%p.a.
(iv)
InsuranceprepaidwasRs.250
(v)
WriteoffRs.1500asBadDebts.


26.

27.

FromthefollowingbalancesextractedfromthebooksofBedi,preparetradingandprofit&loss
accountfortheyearended31stMarch2005andBalanceSheetasatthatdate.
TrialBalance(asat31stMarch2005)
Particulars
DebitBalance
Credit
Balance
750
Cashinhand

45,500
SundryDebtorsandCreditors
89,000
1,80,250
PurchasesandSales
2,37,500
18,750
DrawingsandCapital
1,25,375
3,250
Returns
6,750
60,000
BillsReceivableandPayable
57,500
26,500
Commission

52,000
WagesandSalaries

Discount
7,275
7,250
CarriageInward

6,875
Printing&Stationary

72,500
Machinery

26,750
RentandTaxes

7,500
BadDebts

OfficeExpenses
15,525

5,23,400
5,23,400

Adjustment
(i)
ClosingstockwasvaluedatRs.1,50,000
(ii)
ProvidefordepreciationonMachineryat10%
(iii)
BadDebtsRs.500
(iv)
PrepaidRentamountedtoRs.750.
(v)
ChargeonefourthofwagesandSalariestoprofit&LossAccount.
(vi)
ProvisionforDoubtfulDebtsistobemaintainedat5%Debtors.
The following Trial Balance is extracted from the books of Mr. Jaswant on 31st March 2005,
prepareTradingandProfit&LossAccountandBalanceSheetasat31stMarch2005.
TrialBalance
Particulars
L.F.
DebitBalance(Rs.)
CreditBalanceRs.

91,000
StockonApril1,2004
1,35,000
3,50,000
PurchasesandSales
16,000
Furnitureandfittings
1,80,000
Land&Building
2,53,000
Capital
5,000
3,500
Returns
9,375
Commission
31,250
Insurance
82,500
Salaries
19,000
Wages
6,000
Cash
11,250
Advertising
95,000
SundryDebtorsandCreditors
62,500
1,500
BadDebts
ProvisionforbadDebts
2,625
GeneralExpenses
7,000

6,80,500
6,80,500


28.

Adjustments
(i)
ClosingstockwasRs.1,02,000
(ii)
SalariesRs.510andwagesRs.1,000areoutstanding
(iii)
PrepaidInsuranceamountingRs.1,250
(iv)
Onefifthofthecommissionreceivedinrespectofworktobedonenextyear.
(v)
WriteoffRs.5,000asBadDebts
(vi)
Provisionfordoubtfuldebtsistobemadeat5%onSundryDebtors.
(vii)
DepreciateLand&Building@5%andFurnitureandfittings@10%
(viii)
OutstandingAuditFeesRs.5060.

FollowingarebalancesfromtheTrialBalanceofShriSaiTraderson31stMarch,2006.

Particulars
Rs.
Particulars
Rs.
12,810 InterestonSecurities
3,200
Stockoncommencement
77,100 LandandBuilding
5,00,000
Purchases
1,87,400 Securities
3,00,000
Sales
63,000 CashinHand
12,800
Wages
450 Bankoverdraft
1,70,000
CarriageInward
350 DiscountAllowed
750
FreightonPurchases
4,000 DiscountReceived
210
Salaries
1,400 BillsPayable
2,000
Insurancecharges
2,100 Loan(Cr.)
15,500
DutyonImportofGoods
700 BillsReceivable
3,500
RepairstoMachinery
2,800 CapitalAccount
6,73,800
Withdrawals(forpersonaluse)
7,900 SuppliersA/c
20,000
CustomersA/cs
250 XsLoan(Cr.)
9,300
Postage
500 PlantandMachinery
91,000
TradeExpenses

PrepareTradingandProfitandLossAccountfortheyearended31stMarch,2006andBalance
Sheetasatthatdateaftertakingintoaccountthefollowingadjustments.
(i)
ClosingstockwasvaluedatRs.29500
(ii)
Depreciation to be provided on Land and Buildings @5% p.a. and on plant &
Machinery@10%
(iii)
WriteoffRs.1,000asBaddebts
(iv)
InsurancewasprepaidRs.350
(v)
Createprovisionfordoubtfuldebts@5%ondebtors
(vi)
WagesincludeRs.2400forinstallationofanewMachinery
(vii)
Plant &Machinery includes a Machinery coasting Rs. 48,000whichwas purchased
on1stJanuary,2006.