FINANCIAL STATEMENTS

1. The following Trial Balance was extracted from the books of M/s M.S. Bros. on March 31, 2012. You are
required to prepare a Trading and Profit and Loss Account for the year ended March 31, 2012 and a Balance
Sheet as on that date.
The closing stock amounted to Rs 14,220.
Trial Balance
Name of Account Debit Credit
(Rs) (Rs)
Debtors 12,000
Creditors 7,900
Capital 30,000
Drawings 2,900
Rent and Rates 250
Trade Expenses 670
Purchases 8,640
Sales 14,290
Returns Outward 280
Returns Inward 190
Carriage Inward 250
Wages 2,920
Salaries 1,200
Stock (April 1, 2011) 3,100
Discount received 240
Discount allowed 180
Bad Debts 200
Plant and Machinery 2,510
Furniture and Fittings 1,800
Cash in hand 500
Cash at Bank 15,400
Total 52,710 52,710

2. Following is the Trial Balance of M/s Sahni Bros. Prepare Trading and Profit and loss account and a Balance
sheet as on 31st March, 2012.
Closing stock was valued at Rs 9,000.
Trial Balance
Name of Account Debit Credit
(Rs) (Rs)
Opening Stock 10,000
Purchases and Sales 20,000 40,000
Returns 2,000 1,000
Discount 1,000 2,000
Capital and Drawings 5,000 65,000
Cash and Bank Overdraft 7,000 12,000
Debtors and Creditors 19,000 12,000
Carriage and Cartage 3,000
Freight Outward 4,000
Salaries and Wages 6,000
Stationery 4,000
Land and Building 35,000
Plant and Machinery 15,000
Fixtures and Fittings 5,000
 Bills Receivable and Payable 6,000 4,000
General Reserve 6,000
Total 1,42,000 1,42,000

3. The following balances were extracted from the books of Shri Brijesh Chandra on 30 th June, 2012:
Rs Rs
Capital 24,500 Bad Debts 550
Drawings 2,000 Loan 7,880
General Expenses 2,500 Sales 65,360
Buildings 11,000 Purchases 47,000
Machinery 9,340 Scooter 2,000
Stock 16,200 Bad Debts, provision, etc. 900
Power 2,240 Commission (Cr.) 1,320
Taxes and Insurance 1,315 Scooter Expenses 1,800
Wages 7,200 Bills Payable 3,850
Debtors 6,280 Cash 80
Creditors 2,500 Bank Overdraft 3,300
Charity 105
Prepare final accounts for the year ended 30th June, 2012 after giving effect to the following adjustments:
i. Stock on 30th June, 2012 was valued at Rs 23,500.
ii. Write off a further of Rs 160 as bad debts and maintain the provision for bad debts as 5% on debtors.
iii. Depreciate machinery at 10% and scooter 12%.
iv. Provide Rs 750 as outstanding interest on overdraft.

4. The following is the trial balance of Mr. S. Kapoor on 31 st March, 2012.

Name of Accounts Dr. Cr.
(Rs) (Rs)
Cash in hand 1,080
Cash at bank 5,260
Purchases 81,350
Sales account 1,97,560
Returns Inward 1,360
Return Outwards 1,000
Wages 20,960
Fuel and Power 9,460
Carriage on sales 6,400
Carriage on purchases 4,80
Stock (1.4.2011) 11,520
Buildings 60,000
Freehold Land 20,000
Machinery 40,000
Salaries 30,000
Patents 15,000
General Expenses 6,000
Insurance 1,200
Capital 1,42,000
Drawings 10,490
Sundry Debtors 29,000
Sundry Creditors 12,600
3,53,160 3,53,160
Taking into account the following adjustments. Prepare Trading and Profit and loss account and the Balance
Sheet:
 i. Stock in hand on 31st march, 2012 is Rs 13,600.
ii. Machinery is to be depreciated at the rate of 10% and patents at the rate of 20%.
iii. Salaries for the month of March, 2012 amount to Rs 3,000 were unpaid.
iv. Insurance includes a premium of Rs 170 for the next year.
v. Wages include a sum of Rs 4,600 spent on the erection of cycle – shed for employees and customers.
vi. A provision for bad and doubtful debts is to be created to the extent of 5% on sundry debtors.

5. The Trial Balance of Mr. X as on 31st Dec., 2012 was as follows:

Name of Accounts Dr. Cr.
(Rs) (Rs)
Purchases 1,62,505
Sales 2,52,400
Reserve for Doubtful debts 5,200
Sundry Debtors 50,200
Sundry Creditors 30,526
Bills Payable 3,950
Opening Stock 26,725
Wages 23,137
Salaries 5,575
Furniture 7,250
Postage 4,226
Power and Fuel ,1350
Trade expenses 5,831
Bad debts 525
Loan to Ram @ 10% (Sept. 1, 2012) 3,000
Cash in hand and at Bank 10,000
Trade Expenses accrued, not paid 700
Drawings A/c 4,452
Capital A/c 10,000
Outstanding wages 2,000
3,04,776 3,04,776
Prepare Trading and Profit and loss account for the year ending December 31, 2012 and the Balance Sheet as on
that date after taking into consideration the following information:
i. Depreciation on furniture is to be charged @ 10%.
ii. Sundry debtors include an item of Rs 500 due from a customer who has become insolvent.
iii. Reserve for bad debts is to be maintained @ 5% on sundry debtors.
iv. Goods of the value of Rs 1,500 have been destroyed by fire and insurance company admitted a claim for Rs
1,000.
v. Stock on 31st December, 2012 was Rs 12,550.