WORKSHEET :Financial statements
[Link] cost of goods sold and closing stock:
Sales Rs 540000 return inward Rs 16000, Gross profit Rs 1,20,000
Opening stock Rs 25,000, Purchases Rs 4,00,000, return outward Rs 5,000
Carriage inward Rs 15,000.
2. net sales 2,80,000, gross profit 25% on sales. Find out cost of goods sold’
and gross profit.
3. Net sales Rs 450,000 gp is 20% On cost. Calculate cogs and gp
4. cogs is Rs 200,000 gp is 25% on cost. Calculate sales and gp.
5. . cogs is Rs 200,000 gp is 20% on sales. Calculate sales and gp.
6. calculate cost of goods sold and operating profit.
Opening stock Rs 20,000, adjusted purchases Rs 150,000 , wages Rs 15000,
closing stock Rs 30,000, sales 255,000 return inward Rs Rs 5000, carriage on
sales 10,000, rent paid Rs 4500, interest on investment Rs 6400, loss on sale of
furniture Rs 1500.
7.a) A trial balance is shown as on 31st March 2021 is showing 12% Loan of Rs.
2,50,000 . and Interest paid Rs.20,000. Loan was taken on 1st April [Link]
the treatment of above in the financial statements.
b) Abhishek l Trial Balance as on 31st March 2021 shows the following
information:
Heads of accounts L.F Dr.(Rs.) Cr (Rs.)
Investment @ 10% p.a. 300000
Interest received 25,000
Show how the above items would appear in the Profit and Loss Account
and Balance Sheet.
c) Following is the extract from the Trail balance of a firm as at 31 st March
2021:
Heads of accounts L.F Dr.(Rs.) Cr (Rs.)
Sundry debtors 2,50,000
Provision for doubtful debts ---------------- 15000
Bad Debts 5000
Additional Information:
1) Further bad Debts Rs 8000.
2) Maintain the Provision for Dubtful Debts @ 10% on sundry debtors.
Pass necessary Journal entries and show the treatment of above in
the final Account.
Q8 Prepare a trading and profit and loss account and balance sheet for the year
ended on 31st march 2020.
Debit Credit
Name of Account Amount Name of Account Amount
(Rs.) (Rs.)
Stock on 1 st April, 2009 20,000 Discount Received 1,500
Purchases 1,16,000 Return outwards 5,200
Wages 4,000 Sales 1,97,300
Returns inwards 7,040 Bills payable 6,000
Carriage inward 4,720 Sundry creditors 11,200
Carriage on sales 1,420 Outstanding rent 1,000
Office salaries 9,600 Capital 80,000
Duty on imported goods 5,400 Loan from Raj 20,000
Rent and taxes 4,800 Commission 2,400
Cash 2,200
Bank balance 15,640
Bad debts 1,200
Discount allowed 1,280
Land and building 40,000
Scooter 13,200
Scooter repairs 1,700
Bills receivable 7,000
Commission 3,600
Sundry Debtors 50,800
Interest on Raj’s Loan 3,000
Drawings 12,000
Closing stock is valued at cost price Rs 35,000 whereas its net realizable value (
market price) is Rs.40,000.
9. Prepare a trading and profit and loss account for the year ending December 31,
2017. from the balances extracted of M/s Rahul Sons. Also prepare a balance sheet
at the end of the year.
Account Title Amount Account Title Amount
Rs Rs
Stock 50,000 Sales 1,80,000
Wages 3,000 Purchases return 2,000
Salary 8,000 Discount received 500
Purchases 1,75,000 Provision for doubtful debts 2,500
Sales return 3,000 Capital 3,00,000
Sundry Debtors 82,000 Bills payable 22,000
Discount allowed 1,000 Commission received 4,000
Insurance 3,200 Rent 6,000
Rent Rates and Taxes 4,300 Loan 34,800
Fixtures and fittings 20,000
Trade expenses 1,500
Bad debts 2,000
Drawings 32,000
Repair and renewals 1,600
Travelling expenses 4,200
Postage 300
Telegram expenses 200
Legal fees 500
Bills receivable 50,000
Building 1,10,000
5,51,800 5,51,800
Adjustments
1. Commission received in advance Rs 1,000.
2. Rent receivable Rs 2,000.
3. Salary outstanding Rs 1,000 and insurance prepaid Rs 800.
4. Further bad debts Rs 1,000 and provision for doubtful debts @ 5% on debtors
and discount on debtors @ 2%.
5. Closing stock Rs 32,000.
6. Depreciation on building @ 6% p.a.
Ans gross loss Rs. 17000, net loss Rs. 43189 b/s Rs.283611
10..Following is the Trial Balance of Mr. Bharat on 31st March, 2018.
Dr. Cr.
Particulars
(₹) (₹)
Capital 40,000
Plant and Machinery 50,000
Office Furniture and Fittings 2,600
Stock on 1st April, 2017 48,000
Accrued Commission 12,000
Sundry Debtors 45,700
Cash in Hand 400
Cash at Bank 6,500
carriage 1,50,000
wages 14,000
Purchases 2,13,500
Sales 4,80,000
Bills Receivable 7,200
Bills Payable 5,600
Sundry Creditors 52,000
Returns Inward 9,300
Provision for Doubtful Debts 2,500
Drawings 7,000
Returns Outward 5,500
Rent 6,000
Factory Lighting and Heating 800
Insurance 6,300
General Expenses 1,000
Bad Debts 2,500
Discount 6,500 3,700
Total 5,89,300 5,89,300
Following adjustments are to be made:
(a) Stock on 31st March, 2018 at cost ₹52,000 where as its net realisable
market value is Rs 55,000.
(b) Three months' factory lighting and heating due but not paid ₹300.
(c) 5% depreciation to be written off on furniture.
(d) Write off further Bad Debts ₹700.
(e) Provision for Doubtful Debts to be increased to ₹3,000 and Provision of
Discount on Debtors @ 2% to be made.
(f) During the year, machinery was purchased for ₹20,000 but it was
debited to the Purchases Account.
g)1/3rd of rent is related to factory and remaining to office.
h) 1/4th part of carriage is related to sales and 3/4th part is related to
purchases.
You are required to prepare Trading Account, Profit and Loss Account and
Balance Sheet.
