FINAL ACCOUNTS

Q1) From the following Trial balance of Shivay as on 31st December 2015 you are required
to prepare manufacturing A/c, trading and Profit and Loss A/c. for the year ended 31st
December 2015 and a Balance sheet as at the date after making necessary adjustments.
Trial balance
Particulars Rs. Particulars Rs.
Opening stock: Capital of Shivay 1,00,000
Raw material 3,500 Sundry creditors 10,000
Work in progress 7,500 Sales 1,20,000
Finished goods 4,000 Return outward 1,000
Old R.D.D 400
Purchase of raw materials 82,000 Discount 400
Return inwards 2,000 Bad debts Recovery 1,200
Sundry debtors 20,600
Furniture and fixtures 5,000
Power and fuel 200
Carriage outward 500
Office rent and taxes 4,600
Printing and stationery 800
Factory expenses 400
Postage 800
Insurance charges 700
Salaries to staff 21,300
Cash and bank balance 26,700
Drawings 16,000
Wages 11,400
Plant and Machinery 25,000
2,33,000 2,33,000
Adjustments:
1. Stock as on 31st December, 2015: Raw Material Rs. 2,000 Work in progress Rs. 8,000
and finished goods Rs. 4,600.
2. Prepaid Insurance Rs. 300
3. Provide depreciation on Furniture and Fixture at 5% and on plant and Machinery at 20
% p.a.
4. Write off Bad debts Rs. 600 and maintain Reserve for doubtful debts at 5% on sundry
debtors.
5. Goods distributed as free samples worth Rs. 4,000 in order to increase the sales.
Q2) From the following Trial balance of Rahul as on 31st March 2017 you are required to
prepare manufacturing A/c, trading and Profit and Loss A/c. for the year ended 31 st March
2017 and a Balance sheet as at the date after making necessary adjustments.
Trial balance
Particulars Rs. Particulars Rs.
Opening stock: Sundry creditors 18,000
Raw material 20,000 Bank loan 80,000
Work in progress 10,000 Sale of scrap 2,200
Finished goods 15,000 Interest received 1,800
Sundry debtors 30,000 Commission received 1,650
Freight on purchases 1,700 Sales 2,60,000
Bills receivable 28,000 capital 77,450
Wages 12,000
Salaries 10,000
Coal, water and Gas charges 4,500
Printing and stationery 500
Factory insurance 1,200
Repairs to factory shed 600
Purchase 2,00,000
Cash at bank 12,000
Plant and machinery 30,000
Factory shed 60,000
Rent 3,000
Factory lighting 1,200
Advertisement 1,400
4,41,100
4,41,100

The following additional information is provided to you:

1. Closing stock : Raw material Rs. 26,000 ,WIP Rs. 28,000 and Finished Goods Rs.
25,000
2. Outstanding wages for the year end was Rs. 2,000
3. Advertisement prepaid for the next year Rs. 400
4. Depreciate plant and Machinery @7%, Factory Shed @ 3.5%.
5. Bills receivable dishonoured for the year end Rs. 4,000
6. Goods lost by fire worth Rs. 5,000 and Insurance Company admitted claim worth Rs.
4,000 only.
Q3) from the following details for the year ended 31 st March 2014 prepare Manufacturing,
Trading and Profit & Loss Account of M. Munsi.

Particulars Rs. Particulars Rs.

Opening stock: Electric and water charges 4,000
Raw material 60,000 Wages 1,40,000
Work in progress 50,000 Salary of works manager 6,000
Finished goods 75,000 Office salaries 5,000
Purchase of Raw materials 3,20,000 Advertisement 2,000
Sales 6,25,000 Depreciation
Purchase returns 5,000 On plant 3,000
Sales returns 4,000 On factory shed 1,000
Carriage inward 1,500 On office furniture 600
Carriage outward 1,000 Closing stock:
Duty and clearing charges 2,000 Raw Materials 40,500
Factory rent 3,000 Work in progress 60,000
Office rent 2,000 Finished goods 55.000

Q4) from the following particulars presented by Mazumdar Bros. Prepare a Manufacturing
Account for the year ended 31-3-2014.
Particulars Rs. Particulars Rs.
Opening stock: Carriage inward 1,000
Raw material 3,000 Hire of special plant 2,000
Work in progress 4,000 Factory rent 4,000
Finished goods 8,000 Repairs to plant 2,000
Closing stock: Repairs to factory 1,000
Raw material 1,000 Supervisors salary 8,000
Work in progress 5,000 Wages od supervisor at factory 1,000
Finished goods 4,000 Royalties on production 2,000
Purchase of Raw materials 40,000 Work managers salary 6,000
Wages of workers 20,000 Salary of works staff 3,000
Light, Gas etc. ( Factory) 2,000
Q5) From the given trial balance of Mohan, Prepare Manufacturing , Trading and profit and
Loss account for the year ended 31st December 2013 and balance sheet as at that date.
Particulars Rs. Rs.
Opening stock:
Raw material 12,000
Work in progress 7,000
Finished goods 20,000

Purchase of raw materials 97,000

Octroi on raw materials 11,000
Direct wages 57,000
Factory rent 7,000
Other direct expenses 12,000
Indirect wages 8,000
Machinery 60,000
Cash at bank 12,000
Sales 3,10,000
Administrative exp. 31,000
Selling expenses 13,000
Creditors 25,000
Interest 7,000
Discount allowed 4,000
Bad debts 1,000
Provision for bad debts 3,000
Sundry debtors 50,000
Drawings 21,000
Capital
Bills payable 85,000
7,000
___________ ________
4,30,000 4,30,000

Additional Information:
Closing Stock was Raw materials Rs. 8,000, Finished Goods Rs. 10,000 and WIP Rs. 4,000.
Exercise:
particulars particulars
Opening stock: Light, Gas etc. ( Factory)
Raw material Repairs to plant
Work in progress Repairs to factory
Finished goods Supervisors salary
Purchase of Raw materials Wages od supervisor at factory
Sales Royalties on production
Purchase returns Salary of works staff
Sales returns Capital of Shivay
Carriage inward Sundry creditors
Carriage outward Sales
Duty and clearing charges Return outward
Factory rent Old R.D.D
Office rent Discount
Electric and water charges Bad debts Recovery
Wages Drawings
Salary of works manager Sundry creditors
Office salaries Bank loan
Advertisement Sale of scrap
Depreciation Interest received
On plant Commission received
On factory shed Sales
On office furniture capital
Closing stock:
Raw Materials
Work in progress
Finished goods