ACCOUNTS OF PROFESSIONAL PERSONS

1] From the following trial balance of Shri Tapaswi Joshi, a solicitor prepares his final accounts
for the year ended on 31-3-2016.
Name of the accounts Debits Rs. Credit Rs.
Capital Account - 30,000
Office Expenses 3,600 -
Outstanding Office Expenses - 400
Building 20,000 -
Depreciation on Building 2,000 -
Reserve for fees (1-4-2015) - 12,600
Clients Disbursement ledger 10,000 -
Premium paid on L.I.C. of Shri Tapaswi 5,000 -
Bills for fees - 50,000
Other assets 35,000 -
Advance from clients - 6,000
Debtor for fees 15,000 -
Bank balance (clients) 5,000 -
Bank balance (office) 3,400 -
99000 99000

Adjustments:
1) An amount of Rs. 200 paid on behalf of clients was included in the office expenses.
2) Rs. 1,000 was received from one client against clients disbursement account but it was included
in the advance from clients.
3) Other assets were to be depreciated by 20%.
[Ans.: Net Profit Rs. 35,200, Total of B/s. Rs. 80,600, Total fees Rs. 50,000 (received in cash Rs.
35,000 + Outstanding fees Rs. 15,000).]

2] Hardik and Jay sharing profit 1:1 are partners of the solicitor’s firm. Trial balance as on 31-
3-2016 is as under:
Particulars Debits Rs. Credit Rs.
Capital : Hardik 60,000
Jay 40,000
Fees 2,50,000
Client's advance 10,000
Client's account (fee) 50,000
Bank : Client 10,000
Firm 25,000
Salary 30,000
Creditors – Debtors 10,000 2,000

1|Page
 Office Expenses 20,000
Motor-car vehicles 1,20,000
Books-Library 60,000
Clients Misc. exp. Ledger 15,000
Misc. Exp. 7,000
Magazine subscription 9,000
Post-telegram 2,500
Stationery 1,500
Travelling Exp. 2,000
3,62,000 3,62,000

Considering the following details, prepare Final Accounts of the firm for the year ending on
31-3-’16 (cash system):
1) Calculate interest at 6% on capital.
2) Misc. Exp. Rs. 1,500 paid on behalf of the client were recorded as the Misc. Exp.
3) Calculate depreciation on vehicles at 10% and Books at 5%.
4) Rs. 5,000 Received from one client against client’s Misc. Exp. But it was included in the clients
advance account.
5) Work –in-progress balance was Rs. 20,000.
6) Profit sharing ratio from 1-4-2016 will be 3:2. Calculate profit of partnership firm.
[Ans.: Net Profit Rs. 1,08,250, Total of B/s Rs. 2,91,500. Reserve for fees not received Rs.
70,000(outstanding Fee Rs. 50,000 + W.in.p. Rs. 20,000), Balance of clients’ disbursement Rs.
11,500 (15,000 – 5,000 + 1,500) to be shown on asset side.)

3] Solicitors Usha and Jayshree are partners sharing profit and loss in 4:1. Trial balance as on
31-3-2016 was as under:
Particulars Debits Rs. Credit Rs.
Cash and bank (firm) 27,500 -
Cash and bank (Clients) 2,250 -
Due from clients for expenditure 1,37,500 -
Advance from clients - 1,22,500
reserve for fees in arrears (1-4-2015) - 87,500
Article clerks Premium (for 4 years from 1-4-2015) - 17,000
General Expenses 43,750 -
Salary 15,000 -
Bills for Fees - 2,56,250
fees in Arrears 90,000 -
Office expenditure 16,250 -
Books 1,93,750 -
Capital and Drawing
Usha 12,500 75,000

2|Page
Jayshree 10,000 75,000
Debtors and Creditors 1,25,000 60,500
5,06,250 6,93,750

Adjustments:
1) Rs. 10,000 paid for expenditure on behalf of customers was included in general expenses; Rs.
6,250 received from a customer being expenses was included in advance from clients.
2) A bill for Rs. 18,750 sent is to be written down by 80%.
3) Amount of Bills not prepared is Rs. 40,000.
4) Books worth Rs. 40,000 were purchased on 1-10-2015. Depreciation is to be charged at 10%.
Prepare final accounts
[Ans.: Profit Rs. 1,79,875 (1,43,900 and 35,975), Bills for fees (Received 1,66,250 + Outstanding
Fees Rs. 90,000 + W.in.P. Rs. 40,000) Rs. 2,96,250, Reserve for fees not received Rs. 75,000
and Reserve for WIP Rs. 40,000). Dep. On books Rs. 17,375 (15,375 + 2,000), Article clerk’s
premium Rs. 8,500 (17,000 – Received in advance Rs. 8,500), Total of B/s Rs. 6,07,625,
Balances of capital A/cs. : Usha Rs. 2,06,400 and Jayshree Rs. 1,00,975).]

4] Solicitor Shri Paras submits to you the following information’s for his accounting year
ending on 3 1-3-'16:

Rs. Rs.
Capital Account 90,000 Creditors 36,000
bank balance (of clients) 48,000 bank balance (of office) 36,000
Debtors for fees 39,000 Motor-car 1,80,000
Reserve for fees (1-4-'09) 45,000 Fees 2,10,000
Depreciation on Motor-car 30,000 Expenses of Motor-car 15,000
Office expenses 66,000 Outstanding office exp. 9,000
Clients Disbursement ledger 21,000 Apprentice premium 15,000
Advance from clients 30,000

Shri Paras requests you to prepare his Final Accounts after taking into consideration the following
Adjustments:
(1) Rs. 9,000 was spent for expenses on behalf of clients but was recorded as office expenses.
(2) The apprentice was enrolled on 1-4-2015 for five years.
(3) The value of incompleted work at the end of the year was Rs. 30,000.
(4) A client had paid the amount of Rs. 1,500 on "Account of client’s disbursements". But it was
recorded as Advance from clients.
[Ans.: Profit Rs. 1,17,000, Reserve for fees not received Rs. 39,000, preserve for w.in.p. Rs.
30,000, Total of B/S Rs. 3,61,500, Balance of clients disbursement Rs. 28,500 (21,000 + 9,000 -
1,500), Balance of advance from clients Rs. 28,500 (30,000 - 1,500).]

5] Solicitor Miss Puja's Trial Balance as on 31-3-2016 and the adjustments are as under.
Prepare her final accounts:

Trial Balance
3|Page
Debit balances Rs. Credit balances Rs.
Library books 42,000 Capital 20,000
Office equipment’s 25,000 Reserve for outstanding bills
Building 80,000 (1-4-2015) 11,000
Office expenses 20,000 Bills of fees 1,93,000
salary and allowances 30,000 Premium of trainee candidates 10,000
Bank : Office 10,000 Outstanding Salary 3,000
Clients 8,000
Cash balance 5,000
Debtors for fees 15,000
Sundry expenses for clients 2,000
2,37,000 2,37,000

Adjustments:
1)Depreciate books, office equipment’s and building at 10%.
2) Office expense of Rs. 500 is included in sundry-expenses for clients by mistake.
3)Interest is to be allowed at 20% on capital.
4)1/2 of the premium of trainee candidate is to be considered for the current year.
5)Rs. 3,000 feereceived in advance from clients 's wrong in bills of fees.
Find out the profit if Puja is to join in partnership with Jyotsna in the coming year and if the hills not
prepared are estimated at Rs. 15,000.
[Ans.: Profit Rs. 1,21,800, Reserve for fees not received Rs. 15,000.
Total of B/S Rs. 1,71,800. Profit on mercantile basis Rs. 1,51,800 (1,21,800
+ 15,000 + 15,000).]
6] Miss Shital and Miss Kajal are equal partners in a firm of solicitors and their trial balance was as
follows on 31-3-2016. Prepare their final accounts.
Trial Balance
Debit balances Rs. Credit balances Rs.
Drawings: Capital
Shital 12,000 Shital 25,000
Kajal 8,000 Kajal 15,000
Office Building 80,000 Reserve for outstanding
Office Equipment’s 27,000 fees (1-4-2015) 11,000
Office expenses 21,800
Library Books 40,000 Bills of fees 1,93,000
Salaries 30,000 Apprentice
Bank (office) 10,000 premium
Bank (clients) 9,000 (Received on
Cash on hand 4,000 1-4-2015 for two
Debtors for fees 15,000 years) 10,000
Clients' sundry exp. 2,000 Outstanding salary 4,800
2,58,800 2,58,800

Adjustments:

4|Page
1) Depreciate office-building, equipment’s and books at 10%.
2) Office expense of Rs. 500 is included in sundry expenses for clients by mistake.
3) Interest is to be counted at 10% on capital.
4) Rs. 3,000 fee received in advance from clients is wrongly included in bills of fees.

Find out the profit if Miss Jully is to join in partnership in the coming year and if the
bills not prepared are estimated at Rs. 8,000.
[Ans.: (A) Net Profit Rs. 1,20,000, Total of B/s Rs. 1,71,800, Total Fees Rs. 1,90,000
(1,93,000 - fees received in advance Rs. 3,000), Apprentice Premium Rs. 5,000, Reserve for fees
not received
Rs. 15,000.
(B) If MissJully is to join in partnership in the coming year, then the profit would be Rs. 1,43,000
(1,20,000 + 15,000 + 8,000).]

7] Solicitor Bamanji submits to you the following information for his financial year ending 31-3-
2016:
Particulars Rs.
Capital Account 1,25,000
Reserve for fees (1-4-2015) 35,000
Office expenses 35,000
Total Fees 2,15,000
Cash received from clients 1,96,500
Outstanding salary 5,000
Advance from clients 30,000
Building 80,000
Discount Allowed to clients 11,500
Apprentice Premium 15,000
Depreciation of Building 15,500
Clients disbursement ledger 25,000
Banks (Office) 41,000
Banks (Clients) 30,000
Cash on hand 5,000
Debtors for fees 42,000
Books 30,000
Furniture 45,000
Motor-car 65,000

Other Information:
1) Write off depreciation at 10% on Motor-car and Furniture.
2) Rs. 10,000 fee received in advance from clients is wrongly included in bills of fees.
3) Rs. 8,000 received from clients for sundry expenses are credited in advance account of clients.
4) Stationery stock was Rs. 5,000.
5) Incomplete work is Rs. 25,000 at the end of year.

5|Page
6)The apprentice was enrolled on 1-4-2014 for three years.
Prepare Annual Accounts on Cash basis.
[Ans.: Net Profit Rs. 1,37,500, Total of 8/S Rs. 3,74,000, Reserve for fees not received Rs. 42,000
and incomplete work Rs. 25,000]

8] Ena, Mina and Dika sharing profit 2:2:1 are partners of a firm. Balances as on 31-3-2016 of
their firm are as under:

Particulars Debits Rs. Credit Rs.

Total capital of firm - 5,60,000
Gross for fees - 4,10,000
Clients' accounts 70,000 10,000
Salaries 40,000 -
Library books 35,000 -
Debtors – Creditors 1,13,000 70,000
Stationery 7,500 -
Bank 45,000 -
Electric exp. 2,000 -
Office building 5,00,000 -
Motor- car 1,00,000 -
Clients disbursement ledger - 7,500
Office exp. 18,000 -
Magazine subscription 4,000 -
Postage & telegram 3,000 -
Furniture 1,20,000 -
10,57,500 10,57,500

Dika's capital is 50% to Mina's capital and Mina's capital is 50% to Ena's capital.
From the following details prepare their final accounts for the year ended 31-3-2016:
1)An account of Rs. 1,000 paid on behalf of clients was included in the once expenses.
2)Rs. 5,000 was received from client against clients disbursementaccount but it was included in
the advance from clients
3) Depreciate building, motor-car and furniture and books at 10%
4) Fees Outstanding on 31-12-2016 is Rs. 30,000.
5) Calculate interest at 10% on capital.
6) At the end of the year work-in-progress was Rs: 15,000.
Prepare the final accounts for the year ended on 31-12-'07 (on cash basis). If from 1-1-'08
partners' profit & loss ratio is to be fixed at 5:3:2, find out the profit
[Ans.: Net Profit Rs. 1,75,000, Total of B/S Rs. 9,22,500, Reserve for fees not received Rs. 45,000
(Outstanding fees Rs. 30,000 + WIP Rs. 15,000), Balance of client's disbursement Rs. 11,500 (cr.)
(7,500 - 1,000 + 5,000), Balance of Capital A/cs: Ena Rs. 4,22,000, Mina Rs. 2,46,000 and Dika

6|Page
Rs. 1,23,000. If profit sharing ratio is to be changed,then firm's profit would be Rs. 2,20,000
{1,75,000 + Reserve for fees notreceived Rs. 30,000 + Reserve for w.in.p.Rs. 15,000.]

9] Vishal and Shekhar are the partners of a solicitor firm sharing equal profit and loss. The
TrialBalance of their firm as on 31-3-2016 was as below:

Particulars Debits Rs. Credit Rs.

Cash at Bank : - -
Own account 2,50,000 -
Clients account 1,00,000 -
Outstanding fees 5,00,000 -
Salary 3,00,000 -
Debtors 1,00,000 -
Office Exp. 2,00,000 -
Capital: - -
Vishal - 6,00,000
Shekhar - 4,00,000
Fees - 25,00,000
Advance from clients - 1,00,000
Creditors - 20,000
Vehicles 12,00,000 -
Books 6,00,000 -
Clients miscellaneous expenses ledgers 1,50,000 -
Miscellaneous expenses 1,00,000 -
Travelling expenses 20,000 -
Stationery expenses 15,000 -
Postage expenses 25,000 -
Subscription for magazines 90,000 -
Apprentice premium - 30,000
36,50,000 36,50,000

Prepare final accounts of the firm on cash basis for the year ending on. 31-3-2008 by considering
the following particulars:
1) Calculate interest at 10% on capital.
2) The balance of work-in-progress was Rs. 2,00,000
3) Charge depreciation at 10% on vehicles and at 5% on books.
4) Rs. 15,000 paid for expenses on behalf of clients were included in miscellaneous expenses.
5) Rs. 50,000 received from a client for paying miscellaneous expenses on behalf of him are
included in advance from' clients.
6) An apprentice is enrolled on 1-4-2013 for four years.
Find out profit of the firm if profit sharing ratio remains 3: 2 between the partners from 1-4-2016.

7|Page
[Ans.: Profit Rs. 10,30,000, Reserve for fees not received -Rs. 7,00,000(Outstanding fees Rs.
5,00,000+ work-in-progress Rs. 2,00,000)Apprentice premium Rs. 15,000, Balance of clients
disbursement Rs. 1,15,000 (1,50,000 + 15,000 - 50,000 = 1,15,000), Balance of Advance
from clients Rs. 50,000 (1,00,000 - 50,000}. Closing Capital: Vishal Rs. 11,75,000 and Shekhar
Rs. 9,55,000.]

10] The following is the Trial, Balance of Solicitor "Sanyam" as on 31-3-2016:

Debit balances Rs. Credit balances Rs.
Laptop 30,000 Capital 35,000
Books 12,000 Reserve for outstanding
Furniture 20,000 Fees ( 1-4-2015 ) 21,000
Building 85,000 Bills of Fees 1,64,000
Office Exp. 30,000 Outstanding salary 5,000
Employee's Salary 20,000 Outstanding office exp. 5,000
Bank Balance: Advance from clients 18,000
Clients 2,000 Premium of trainee
Office 16,000 Candidate 2,000
Cash balance 8,000
Debtors for Fees 25,000
Clients Misc. Exp. Ledger 2,000
2,50,000 2,50,000

Additional Information:
1) Depreciate Laptop by 10%, Books by 15% and Building by 5% p.a.
2) Office expense of Rs. 1000 is included in sundry expenses for clients bymistake.
3) 50% of the premium of trainee candidate is for next year.
4) Calculate interest 10% on capital.
5) At the end of the year incomplete work is Rs. 5,000
On cash basis, prepare annual accounts of solicitor "Sanyam".
[Ans.: Profit Rs. 97,450, Reserves for fees not received Rs. 30,000 (25,000 + 5,000), Total of B/s
Rs. 1,94,950. Depreciation: Laptop Rs. 3,000, Books Rs. 1,800, Building Rs. 4,250.]
11] Rina, Nitihi anti Megha were parmers in the firm of solicitors Rina's share is 1/2 of Nidhi and
Nidhi's share is 2/3 of Megha:
Debit balances Rs. Credit balances Rs.
Rina's Drawings 5,000 Rina's Capital 15,000
Nidhi's Drawings 10,000 Nidhi's Capital 20,000
Megha's Drawings 15,000 Megha's Capital 25,000
Cash at Bank (firm) 28,000 Clients Ledger
Cash at Bank (Clients) 50,000 Balance 46,000
Debtors for fees 40,000 Directors Fees:
Clients sundry Exps. 10,000 Rina 4000
Clients ledger balances 44,000 Nidhi 8000
Salaries to staff 30,000 Megha 7000 19,000
Office expenses 12,000 Insurance commission
furniture and fittings 6,000 Received 10,000
8|Page
 - Sundry creditors 5,000
Reserve for fees (1-4-
- 2015) 40,000
- Bills of fees 70,000
2,50,000 2,50,000

Additional Information’s:
1) At the end of the year incomplete work is Rs. 10,000.
2) Interest on capital is calculated at 10%.
3) Each partner takes one-half of the Director's fees earned by him, the remainderbeing for
general profit and loss account.
4) Write down furniture and Fittings to Rs. 4,000.
5) Office expense of Rs. 1,000 is included in sundry expenses for clients bymistake.
Prepare the Profit and Loss Account for the year ending 31st. March, 2016 show the Balance
Sheet as on the date.
[Ans.: Profit Rs; 38,500 (6,417, 12,833 and 19,250), Profit sharing ratio1:2:3, Total of B/s Rs.
1,85,000, Balance of Capital A/cs: Rina Rs. 19,917,Nidhi Rs. 28.833 and Megha Rs. 35,250,
Reserve For Fees not received Rs. 50,000 (40,000 + 10,000).]
12] Vinay and Vivek are the partners of a solicitor firm, sharing profit and loss in the ratio of 3:
2. The trial balance of their firm on 31-3-2016 was as follows:

Debit balances Rs. Credit balances Rs.

Office Building 30,00,000 Capital :
Books 2,20,000 Vinay 20,00,000
Vehicles 5,00,000 Vivek 15,00,000
Drawings: Client advance 50,000
Vinay 30,000 Creditors 10,000
Vivek 20,000 Total fees 8,00,000
Reserve on fees (1-4-
Client A/cs. 3,00,000 2015) 2,00,000
Stationery 30,000 Apprentice Premium 20,000
Salary 40,000
Clients miscellaneous
expenses ledges 50,000
Debtors of outstanding fees 1,20,000
Office exp. 1,00,000
Misc. exp. 70,000
Subscription for magazines 20,000
Postage Charges 5,000
Bank Balance 75,000
45,80,000 45,80,000

Additional Information’s:
1) An apprentice is enrolled on 1-4-2014 for three years.
9|Page
2) Charge depreciation at 10% on office building, books and vehicles.
3) Calculate interest at 5% on capital and drawings.
4) At the end of the year incomplete work is Rs. 20,000.
5) Rs. 15,000 received from a client for paying miscellaneous expenses on behalfof him are
included in advance from clients.
6) Rs. 5,000 paid for expenses on behalf of clients were included in once expenses.

Prepare final accounts of the firm on cash basis for the year ending on31-3-2016.
[Ans.: Net Profit Rs. 85,500, Total of B/S Rs. 39,03,000, Reserve for fees not received Rs.
1,40,000 (Outstanding fees Rs. 1,20,000 + Incompletework Rs. 20,000), Clients miscellaneous
exp. Rs. 40,000 (50,000- 15,000+5,000).]

13] Solicitor Pavan submits to you the following Trial Balance for his financial year ending on
31-3-2016. Prepare his final accounts:
Debit Rs. Credit Rs.
Books 45000 Capital 50000
Equipments 30000 Reserve for o/s fees (1-4-2013) 16000
Buildings 75000 Bill for fees 196000
Office expenses 25000 Apprentice premium ( For 2years) 10000
Salary 30000 O/s salary 6000
Bank 30000
Cash 3000
Debtor for fees 25000
Clients sundry expenses 15000

278000 278000

Adjustments:
1) Office expenses of Rs. 1,500 is included in sundry expenses for clients by mistake.
2) Rs. 9,000 fee received in advance from clients is wrongly included in bills of fees.
3) Interest is to be calculated at 20% on capital.
4) Depreciate at 10% office building, office equipment’s and library books.

If Mr. Mahesh is to join in partnership with Pavan in the coming year andifthebills of fees not
prepared are estimated Rs. 15,000, find our profit.
[Ans.: Net profit Rs. 1,57,500, Total of B/S Rs. 3,25,500, Apprentice Premium Rs. 7,500, Reserve
for fees not received Rs. 52,500 (37,500+ 15,000), Clients sundry exp. Rs. 21,000 (22,500 -
1,500), Balance of Capital A/cRs.2,47,500.
If Mahesh is to join in Partnership in the coming year, then profit would be Rs. 2,10,000 (1,57,500
+ 37,500 + 1 5,000).]

14] Solicitor Vishal submits to you lowing information for his financial year ending 31-3-‘11:

Particulars Rs.

10 | P a g e
 Capital Account 2,50,000
Reserve for fees (1-4-10) 70,000
Office expenses 70,000
Total fees 4,30,000
Cash received from clients 3,93,000
Outstanding salary 10,000
Advance from clients 60,000
Building 1,60,000
Discount allowed to clients 23,000
Apprentice premium 30,000
Depreciation on building 31,000
Clients disbursement ledger 50,000
Bank (office) 82,000
Bank (clients) 60,000
Cash on hand 10,000
Debtors for fees 84,000
Books 60,000
Furniture 90,000
Motor-car 1,30,000
Other information:
1) Write off depreciation at 10% on motor-car and furniture.
2) Rs. 20,000 fees received in advance from clients is wrongly included in bills of fees.
3) Rs. 16,000 received from clients for sundry expenses are credited inadvance account of clients.
4) Stationary stock was Rs. 10,000.
5) Incomplete work is Rs. 50,000 at the end of year.
6) The apprentice was enrolled on 1-4-09 for three years.
Prepare annual accounts on cash basis.
[Ans.: Net Profit Rs; 2,75,000, Total of B/S Rs. 7,48,000, Reserve for Fees not received Rs.
84,000, and incomplete work Rs. 50,000.]

15] Paresh, Prashant and Parag are partners sharing profit and loss in the ratioof 4:4:2 in a
solicitor firm. Their balances as at 31-3-11 were as under:
Debit balances Rs. Credit balances Rs.
Account of clients 1,05,000 Total capital of partners 8,40,000
Salaries 60,000 Total fees 6,15,000
Books 52,500 Accounts of clients 15,000
Debtors 1,69,500 Creditors 1,05,000
Stationery 11,250 Sundry expenses -
Bank 67,500 Ledger of clients 11,250
Electricity Charges 3,000
Offices Building 7,50,000
Motor-car 1,50,000
Office expenses 27,000
Magazine subscription 6,000
Postage 4,500
Furniture 1,80,000

11 | P a g e
 15,86,250 15,86,250

Capital of Parag is 50% of Prashant and capital of Prashant is 50% of Paresh.

Additional Information:
1) Rs. 1,500 paid for clients are included in office expenses.
2) Rs. 7,500 received from a client for sundry expense are credited in advanceaccount of client.
3) Provide 10% depreciation on building, motor-car, furniture and books.
4) Fees to be received Rs. 45,000.
5) Allow 10% interest on capital.
6) Incomplete work Rs. 22,500 at the end of the year.
Prepare annual accounts on cash basis for the year ending on 31-3-2011.
[Ans.: Net Profit Rs. 2,62,500, Total of 8/S Rs. 13,83,750, Reserve for fees not received Rs.
45,000, Reserve for incomplete work Rs. 22,500, Balanceofclient's disbursement Rs. 17,250 (Cr.)
(Balance 11,250 - 1,500+ 7,500 = 17,250),Balance of Capital A/cs: Paresh Rs. 6,33,000,
PrashantRs. 3,69,000, and Parag Rs. 1,84,500.]

12 | P a g e
16] Solicitor Abheejeet's,Trial balance as on 31-3-2014 is as follows. Preparehis Final
Accounts:
Debit balances Rs. Credit balances Rs.
Library-books 45,000 Capital 50,000
Office equipment’s 30,000 Reserve for outstanding
Office building 75,000 fees (1-4-2013) 16,000
Office exp 25,000 Bills of fees 1,96,000
Salaries & allowances 30,000 Apprentice premium
Bank balance: (from 1-4-13 for two years) 10,000
Office 20,000 Outstanding salary 6,000
Clients 10,000
Cash on and 3,000
Debtors for fees 25,000
Client's sundry expenses 15,000
2,78,000 2,78,000

Additional Information:
1) Rs. 6,000 fees received in advance from clients is included in bill of fees.
2) Office expense of Rs. 1,000 is included in sundry expenses for clients.
3) Interest is to be counted at 20% on capital.
4) Depreciate at 10% Office building, Office equipment’s and Library books.
Use Cash Method for preparing accounts.

[Ans: Net Profit Rs. 1,05,000, Total of B/S Rs. 2,07,000, Reserve for fees notreceived Rs. 25,000,
Advance App. Premium Rs. 5,000, Office expenses of Rs. 1,000included in sundry expenses is
deducted from Sundry Expenses Account and addedto Office Expenses Account.]

17] Kashyap and Harshit were the partners of a solicitor firm sharing equalprofit-loss. The trial
balance as on 31-3-2014 was follows:

Particulars Debits Rs. Credit Rs.

Bank balance - Own Account 2,50,000
Bank balance - Clients Account 1,00,000
Outstanding fees 5,00,000
Salary 3,00,000
Debtors 1,00,000
Office expenses 2,00,000
Capital:
Kashyap 6,00,000
Harshit 4,00,000
Fees 25,00,000
Advance from clients 1,00,000
Creditors 20,000

13 | P a g e
 Vehicles 12,00,000
Books 6,00,000
Clients Misc. expenses ledger 1,50,000
Misc. Expenses 1,00,000
Travelling Expenses. 20,000
Stationary Expenses 15,000
Postage expenses 25,000
Subscription for magazines 90,000
Apprentice premium 30,000
36,50,000 36,50,000

Additional Information:
1) Calculate interest at 10% on capital.
2) Balance regarding work in progress was Rs. 2,00,000.
3) Charge depreciation at 10% on Vehicles and 5% on Books.
4) Rs. 15,000 paid for expenses on behalf of clients was included in misc. expenses.
5) An amt. 50,000 received from clients for misc. expenses was included in clientadvance.
6) An apprentice is enrolled on 1-4-2011 for four yearsprepare accounts for the year ending on 31-
3-2014 (Use Cash Method).
[Ans: Net Profit E.s. 10,30,000, Total of B/S Rs. 29,15,000, Reserve for fees not received Rs. 7,00,000 (Outstanding
fees Rs. 5,00,000 + Work-in-ProgressRs. 2,00,000), App. premium Rs. 15,000, Balance of clients disbursementRs.
1,15,000 (1,50,000 + 15,000 - 50,000), Balance of Advance from clientsRs. 50,000 (1,00,000 - 50,000), Closing
Capital: Kashyap Rs. 11,75,000 and HarshitRs. 9,55,000.]
18] A and B are the partners of a Solicitor Firm sharing profit equally.
Particulars Rs. Particulars Rs.
Vehicles 3,60,000 Creditors 6,000
Computers 1,80,000 Client advance 30,000
Client sundry Exp. Fees 7,50,000
Ledger A/c. 45,000 Total capital 3,00,000
Sundry Expenses 21,000
e-journal subscribed 27,000
Courier Charges 7,500
Stationary and
Printing Exp. 4,500
Travelling Exp. 6,000
Office exp. 60,000
Debtors 30,000
Staff salary 90,000
Bank (firm) 75,000
Bank (client) 30,000
Clients A/c. (Fees O/s) 1,50,000
10,86,000 10,86,000

From the following, prepare final accounts for the year ending on 31-3-2014:

14 | P a g e
1) Allow 6% interest on capital.
2) Rs. 4,500 paid for clients are recorded in Sundry Expenses A/c.
3) Provide 3 0% depreciation on Vehicles and 5% on Computers.
4) Rs. 15,000 received from a client for sundry expenses are included in ClientAdvance A/c.
5) At the end of the year, incomplete work was of Rs. 60,000.
6) Capital of both the partners was in 3:2 ratio.
[Ans: Net Profit Rs. 3,25,500, Reserve for fees not received Rs. 1,50,000, Reserve for incomplete work Rs. 60,000,
Total of Balance Sheet Rs. 8,74.500,Deduct Rs. 4,500 from Sundry exps. and add in Clients Sundry Exps. Ledger.
Deduct Rs. 15,000 from Clients (ledger) Advance and from Clients Sundry Exps. Ledgeras the same is received from
a client for Sundry exps. Debtors against work-in-progress Rs. 60,000, Balance ofCapital A/cs: A Rs. 4,28,550
(Opening CapitalRs. 1,80,000 + Interest Rs. 10,800 + Net Profit Rs. 2,37,750), B Rs.3,64,950(Opening Capital Rs.
1,20,000 + Interest Rs. 7,200+ Net Profit Rs. 2,37,750).]

19] Solicitor X provides the following information for the year ending on 31-3-2014:

Debit balances Rs. Credit balances Rs.

Office exp. 1,75,000 Capital : 6,25,000
Building 4,00,000 Fees Reserve (1-4-2013) 1,75,000
Discount allowed 57,500 Total fees 10,75,000
Depreciation on Building 77,500 Cash received from clients 9,82,500
Client Sundry Expenses Salary outstanding 25,000
Ledger A/c. 1,25,000 Client Advance 1,50,000
Bank (office) 2,05,000 Apprentice premium 75,000
Bank (Client) 1,50,000
cash on hand 25,000
Debtors for fees 2,10,000
Computer 1,50,000
Furniture 2,25,000
Motor-Car 3,25,000

Additional Information:
1) Write off depreciation at 10% on Motor-car and Furniture.
2) Rs. 50,000 received in advance from clients is wrongly included in fees.
3) Rs. 40,000 received from client as Sundry expenses are credited to ClientAdvance A/c.
4)Stationery stock was Rs. 25,000.
5) At the end of the year, incomplete work was Rs. 1,25,000.
6) An apprentice was enrolled on 1-4-2912 for 3 years.
[Ans: Net Profit Rs. 6,87,500, Reserve f' or fees not received Rs. 2,10,000,
Reserve for incomplete work Rs. 1,25,000, Total of Balance Sheet Rs. 18,70,000,Premium received in advance from
apprentice Rs. 37,500, Deduct Rs. 50,000 fromfees and add into advance from clients as same is wrongly credited in
fees. Stock ofstationery Rs. 25,000 deduct from Office exps. and show on Asset side of B/S,Closing balance of
Capital A/c Rs. 13,12,500 show on Liability sidle of B/S.]

15 | P a g e