FINAL ACCOUNTS - FY B.COM L.S.

RAHEJA COLLEGE OF ARTS AND COMMERCE

Q.1 From the following trial balance of Ms. Rekha, prepare Manufacturing, Trading and Profit and Loss
account for the year ended 31st March 2022 and Balance Sheet as at 31st March 2022.

Particulars Debit (Rs.) Credit (Rs.)

Capital 250,000
Drawings 30,000
Factory Building 300,000
Plant & Machinery 70,000
Computer 35,000
Furniture 20,000
Opening Stock -Raw material 30,000
Work in Progress 5,000
Finished Goods 25,000
Purchases - Raw Materials 300,000
Furniture (1st Oct 2021) 10,000
Factory Rent 12,000
Repairs of Machinery 6,000
Workers Wages 20,000
Power 10,000
Salary 36,000
Shop Rent 15,000
Advertising 15,000
Salesman Salary 24,000
Discount 2,000 2,000
Computer Maintenance 8,000
Sundry Debtors 300,000
Sundry Creditors 250,000
Workers Wages Payable 5,000
Sales-Finished Goods 768,000
Bank Interest 4,000
Bank Charges 1,000
Bank balance 5,000
1,279,000 1,279,000

Adjustments:
1) Depreciate building by 5%, Plant & Machinery 15%, Furniture 10% and Computer 60%.
2) Salary includes advance salary of Rs 6,000. Outstanding Salary of Rs. 4,000 is to be provided.
3) Create provision for discount to debtors @ 1% and for discount from creditors @ 1.5%.
4) Closing stock on 31-3-22: Raw material Rs 10000, WIP Rs 10000, and Finished Goods Rs 35000.
5) Computer maintenance consists of an annual maintenance contract for the period 1-10-21 to 30-9-
22.

Q.2 From the following Trial Balance of Mr. Sengupta, prepare a Trading and Profit & Loss Account for the year ended 31st March
2022 and a Balance Sheet as at that date.

Particulars Debit (Rs) Particulars Credit (Rs)

Drawings 8,000 Capital 75,000

Office Premises 40,000 Sales 151,000
Computer 10,000 Creditors 29,200
Furniture 12,000 Discount Received 1,250
Opening Stock on 1-4-2021 22,000 Provision for Doubtful Debts 800
 Purchases 95,000 Returns Outwards 2,000
Returns Inwards 3,000 Outstanding Electricity charges 250
Debtors 41,200
Carriage Inwards 1,650
Rent 1,200
Telephone Expenses 2,000
Printing & Stationery 2,850
Prepaid Rent 200
Bad Debts 2,500
Discount Allowed 3,000
Electricity Charges 2,250
Salaries 9,750
Cash & Bank 2,900

259,500 259,500

Adjustments :
1. Closing Stock as on 31st March 2022 Rs. 16,000.
2. Debtors includes Rs. 6,000 receivable from Mr. Bose. Creditors includes Rs. 4,000 payable to Mr. Bose
3. Debtors includes Rs. 200 receivable from Mr. Chakraborty which cannot be recovered and
are to be written off. A provision of 5% is to be created for doubtful debts on the balance debtors.
4. Sales includes goods costing Rs. 4,000 sold on approval basis Rs. 5,000. The approval has
not been received from the customers as on 31st March 2022.
5. Provide depreciation @ 10% on Office Premises and Furniture and @ 20% on Computer.
6. Creditors includes Rs. 2,000 credited to Mr. Sumit's A/c for amount received from Mr. Sumit. The amount was written off as
bad in the previous year.

Q.3 Shri Roy submitted to you the following Trial Balance which he has not been able to agree.
Re-write the Trial Balance rectifying the errors made. Prepare Manufacturing,Trading and Profit and Loss account
for the year ended 31st March 2022 and Balance Sheet as at that date.

Particulars Debit Credit

Capital 120,000
Drawings 9,000
Plant & Machinery 30,000
Plant addition (1-10-2021) 7,500
Stock- (1st April 2021):
Raw Material 5,250
Work in progress 11,250
Finished Goods 6,000
Purchase of Raw material 123,000
Return Inwards 3,000
Debtors 30,900
Carriage Inward 600
Wages 2,100
Power and Fuel 300
Carriage Outward 750
Office Rent, Rates 6,900
Printing & Stationery 3,000
Creditors 15,000
Sales 180,000
Return outwards 1,500
Reserve for doubtful debts 600
Discount Received 1,200
 Rent received 1,800
Insurance Charges 1,050
Salaries to staff 39,299
Cash & bank balance 40,201
Stock - (31st March 2022)
Raw Material 3,000
Work in progress 12,000
Finished Goods 6,900

376,350 285,750

Adjustments:
1) Write off bad debt Rs 600 and maintain reserve for doubtful debt at 5% on debtors.
2) Create reserve for discount on debtors and creditors at 2%.
3) Prepaid Insurance is Rs. 90.
4) The manager of Shri Roy is entitled to a commission of 10% of the net profit calculated after
charging such commission.

Q.4 The following Trial Balance as on 31st March 2022 has been prepared from the books of Ms. Anjali. You are required to prepare a
Manufacturing Account, Trading Account, Profit & Loss Account for the year ended 31st March 2022 and a Balance Sheet as at
that date.

Particulars Debit (Rs.) Particulars Credit (Rs.)

Opening Stock: Capital Account 649,250

Raw Materials 37,300 Sales 773,000
Finished Goods 12,450 Creditors 126,500
Work in Progress 46,550 Bank Overdraft 94,200
Purchase of Raw Materials 345,000 Discount Received 3,600
Factory Building 360,000 Outstanding Wages 8,000
Factory Equipment 180,000 Sale of scrap (old newspapers) 2,000
Office Equipment 60,000 8% Car Loan (1-2-2022) 60,000
Drawings 33,000
Cash 25,400
Power & Fuel 35,000
Repairs & Maintenance 78,000
Consumable Stores 23,700
Wages 78,000
Insurance (for year upto 1-8-2022) 24,000
Carriage Outwards 17,800
Debtors 96,500
Labour Charges 43,200
Interest Paid on Car Loan 500
Office Salary 34,000
Advertising Expenses 21,500
Carriage Inwards 18,700
Traveling Expenses 17,800
Bank Interest 14,800
Printing & Stationery 13,350
Motor Car - Nano (1-2-2022) 100,000

1,716,550 1,716,550
 Other Information:
a) Closing Stock as on 31st March 2022 was as under:
Raw Materials Rs. 41,200 Work in Progress Rs. 52,000 Finished Goods Rs. 13,250
b) Repairs and Maintenance includes Rs. 60,000 for construction of a new factory shed during December 2021.
c) Outstanding Salary is Rs. 6,000
d) On 28-2-2022, a fire in the godown destroyed Raw Material worth Rs. 20,000 and Finished Goods worth Rs. 15,000. The
Insurance Company settled and paid the claim of Rs. 12,000 in respect of the Finished Goods and has admitted the claim a claim
of Rs. 15,000 in respect of the raw material. The above transactions have not been recorded.
e) Factory Equipment includes new equipment worth Rs. 40,000 purchased on 1st July 2021.
f) Anjali follows a policy of providing depreciation for the full year in respect of assets put to use before 1st October 2021 and
depreciation at half rate in respect of assets purchased after 1st October 2021. Depreciation is to be provided at the following
rates:
Factory Building - 10%, Factory and Office Equipment - 15%, Motor Car - 20%

Q.5 The following Trial Balance as on 31st March 2022 has been prepared from the books of Mr. Atharva. You are required to
prepare a Manufacturing Account, Trading Account, Profit & Loss Account for the year ended 31st March 2022 and a Balance
Sheet as at that date.

Particulars Debit (Rs.) Particulars Credit (Rs.)

Opening Stock: Capital Account 280,300

Raw Materials 70,000 Sales 603,000
Finished Goods 10,000 Creditors 62,700
Work in Progress 40,000 Outstanding Power & Fuel 7,000
Purchase of Raw Materials 270,000 Discount Received 5,000
Purchase of Finished Goods 20,000
Bank Account 54,700 Sale of scrap (raw materials) 6,000
Cash 7,650 12% Bank Loan (1-7-2021) 100,000
Power & Fuel 34,000
Printing & Stationery 3,000
Manager's Salary 18,000
Wages 34,600
Insurance 12,000
Debtors 75,000
Manufacturing Expenses 22,300
Interest Paid on Bank Loan 8,000
Office Salary 25,800
Advertising Expenses 27,000
Carriage Inwards 13,780
Carriage Outwards 8,450
Electricity Charges 6,000
Discount Allowed 1,020
Drawings 30,900
Factory Building 120,000
Commission paid 6,800
Machinery 120,000
Office Equipment 25,000

1,064,000 1,064,000
 Adjustments:
1) Closing Stock as on 31-03-2022:
Raw Materials Rs. 67,000 Work in Progress Rs. 28,000 Finished Goods Rs. 8,000
2) Provide for Outstanding Wages Rs. 3,000 & Outstanding Electricity Rs. 1,000
3) Provide for Prepaid Advertising Rs. 3,000 & Prepaid Insurance Rs. 2,000.
4) Allocate the following expenses between factory and office in the given ratios:
Manager's Salary - Factory 50% Office 50%
Insurance - Factory 60% Office 40%
Electricity Charges - Factory 40% Office 60%
5) Machinery includes Rs. 20,000 purchased on 1-10-2021.
6) Provide depreciation @ 10% on Machinery and Office Equipment by WDV method.
7) Factory Building is to be depreciated @ 5% by SLM method. The building was originally
constructed at a cost of Rs. 2,00,000.
8) Debtors includes Rs. 5,000 receivable from Mr. Aditya and creditors includes Rs. 4,000 payable to Mr. Aditya.

Q.6 From the Following Trial Balance of Sunny Sports Co. prepare Manufacturing, Trading and Profit & Loss Account for the year
ended 31st March 2022.

Particulars Debit (Rs) Particulars Credit (Rs)

Furniture 30,000 Sales 900,000
Repairs to Plant 35,000 Deposit from Sachin @ 8% 40,000
Repairs to Furniture 3,500 Bills Payable 8,500
Purchase of Raw Material 750,000 Sundry receipts 20,000
Purchase of Finished Goods 20,000 Capital- Sunny 750,000
Rent 36,000 Sundry Creditors 200,000
Insurance 40,000
Salary 30,000
Wages 80,000
Carriage-Finished Goods 5,000
Carriage- Raw Material 17,000
Sundry Debtors 200,000
Advance to Workers 30,000
Telephone Expenses 45,000
Bad Debts 25,000
Bills Receivable 9,000
Bank Balance 15,000
Printing & Stationery 8,000
Plant & Machinery (including new) 540,000
Total 1,918,500 Total 1,918,500

Adjustments:
1) Closing Stock - Raw Material- 40,000, Finished Goods - 50,000 & Work in Progress- Rs 30,000.
2) Telephone Expenses included Mobile expenses of Rs 1,200 per month of Sunny's personal mobile.
30% of Telephone expenses are of Factory Manager.
3) Wages include Rs. 10,000 for installation of plant purchased on 1st Sept. 2021 for Rs. 90,000.
4) Prepaid insurance Rs 2,000, Insurance for factory was 70%.
5) Depreciate Plant @ 15% and Furniture @ 10%.
6) Furniture having Nil book value on 1st April 2021 was sold on 1st Oct 2021 for Rs 1,500. The amount received
was included in sundry creditors.
7) Donation paid to Child Welfare Trust Rs. 5,000 has been wrongly debited to Child Welfare Trust A/c and the same has been
included under Sundry Debtors.
Q.7 The following Trial Balance as on 31st March 2022 has been prepared from the books of Mr Bhanwarlal. You are required to
prepare a Manufacturing Account, Trading Account, Profit & Loss Account for the year ended 31st March 2022 and a Balance
Sheet as at that date.

Particulars Debit (Rs.) Particulars Credit (Rs.)

Opening Stock: Capital Account 391,000

Raw Materials 12,000 Sales 473,450
Finished Goods 15,000 Creditors 21,000
Work in Progress 18,550 Bank Overdraft 14,200
Purchase of Raw Materials 98,000 Discount Received 3,600
Factory Building 150,000 Interest Received 3,500
Machinery 180,000 Sale of factory scrap 2,000
Computers 60,000 13% Machinery Loan (1-1-2022) 60,000
Drawings 33,000
Cash 15,300
9% RBI Bonds (1-4-2021) 50,000
Power & Fuel 28,000
Repairs & Maintenance 35,300
Consumable Stores 18,500
Wages 44,000
Insurance (for year upto 1-9-2022) 18,000
Delivery Charges 9,000
Debtors 48,400
Factory Expenses 16,700
Interest Paid on Machinery Loan 1,500
Office Salary 38,500
Sales Promotion Expenses 14,700
Carriage Inwards 16,400
Sales Commission 23,000
Bank Interest 15,400
Office Expenses 9,500

968,750 968,750

Other Information:
a) Closing Stock as on 31st March 2022 was as under:
Raw Materials Rs. 16,200 Work in Progress Rs. 22,000 Finished Goods Rs. 11,300
b) Outstanding Wages Rs. 4,000 and outstanding salary Rs. 3000 to be provided.
c) Machinery includes machine imported on 1-12-2021 for Rs. 80,000. The machine was installed in the factory
on 1-1-2022.
d) Depreciation is to be provided at the following rates:
Factory Building 10%, Machinery 15% and Computer 30%
e) Finished goods worth Rs. 15,000 were stolen by an ex-employee in December 2020. The Insurance Company settled the claim
for Rs. 11,000 and paid it on 20th March 2022.
The above transactions have not been recorded in the books.