Worksheet
Final Accounts
A merchant has earned a Net Profit of ₹ 57,200 for the year ended 31st March,. 2017. Other
balances in his Ledger are as under:
Dr. Balances ₹ Cr. Balances ₹
Cash at Bank 4,800 Bills Payable 3,200
Cash in Hand 1,200 Creditors 61,300
Furniture and Fixtures 7,500 Loan 50,000
Debtors 80,100 Capital 3,32,300
Closing Stock 70,000
Motor Car 40,000
Building Plant and
1,20,000
Machinery
Bills Receivable 4,400
Investments 20,000
Drawings 6,000
Prepare his Balance Sheet as at 31st March, 2017.
Calculate Gross Profit from the following information:
₹
Closing Stock 70,000
Wages 40,000
Salary 30,000
Sales 6,88,000
Adjusted Purchase 5,50,000
Ascertain Gross Profit from the following :
Rs.
Opening Stock 2,00,000
Closing Stock 1,80,000
Purchases 8,50,000
Carriage on Purchases 23,000
Carriage on Sales 30,000
Office Rent 58,000
Sales 14,07,000
State with reason, which of the following expenditure is Capital Expenditure, Revenue
Expenditure or Deferred Revenue Expenditure:
i. Legal expenses incurred to defend a suit for breach of a contract to supply goods.
ii. Custom duty paid on imported machinery.
iii. Heavy expenditure incurred on advertising a new product.
iv. Amount spent to overhaul a motor truck purchased second-hand.
v. Wages paid to workers for setting-up a new machinery.
vi. Wages paid to workers for converting raw material into finished goods.
Calculate Cost of Goods Sold and Closing Stock from the following information:
Sales ₹ 5,40,000; Sales Returns ₹ 16,000; Gross Profit ₹ 1,20,000;
Opening Stock ₹ 20,000; Purchases ₹ 4,00,000; Purchase Returns ₹ 4,000;
Carriage Inward ₹ 15,000.
Prepare Trading Account as on 31st March, 2019 from the following balances:
₹
Stock on 1 st April, 2018 10,000
Sales Return 5,000
Sales 2,00,000
Wages 11,000
Purchases 2,00,000
Purchases Return 2,500
Carriage Inwards 1,500
Carriage Outwards 3,000
Freight Inwards 2,500
The Closing Stock of goods as on 31st March, 2019 is ₹ 20,000.
Calculate Gross Profit on the basis of the following information:
₹
Purchases 6,80,000
Return Outwards 30,000
Carriage Inwards 20,000
Carriage Outwards 15,000
Wages 50,000
3/4 of the goods are sold for ₹ 6,00,000.
Calculate closing stock and cost of goods sold
Opening stock ₹ 5,000; sales ₹ 16,000; carriage inwards ₹ 1,000, sales return ₹ 1,000; gross
profit ₹ 6,000; purchases ₹ 10,000; purchases return ₹ 900.
Give Journal entries for the following adjustments in final accounts:
i. Salaries ₹ 5,000 are outstanding.
ii. Insurance amounting to ₹ 2,000 is paid in advance.
iii. ₹ 4,000 for rent have been received in advance.
iv. Commission earned but not received ₹ 1,000.
v. Interest on Capital ₹ 1,500.
vi. Interest on Drawings ₹ 300.
vii. Write off ₹ 2,000 as further debts.
viii. Closing Stock ₹ 3,000.
Extract of Trial Balance
as on 31st March, 2013
Name of Accounts Debit Balance(Rs) Credit Balance(Rs)
Wages Paid 66,000
Salary Paid 16,500
Additional Information
Wages Rs 6,000 and salary Rs 1,500 are outstanding.
Pass an adjusting entry and show how will this appear in final accounts.
Rahul’s Trial Balance as on 31st March, 2019 has the following information:
Heads of Accounts Debit (₹) Credit (₹)
Salaries and Wages 3,30,000 -
Electricity Expenses 55,000 -
Additional Information:
i. Salary for the month of March, 2019 is yet to be paid.
ii. Electricity Bill for March, 2019 amounted to ₹ 5,200 was received on 2nd April, 2019.
Determine the amount of Salary and Electricity Expenses to be provided and show how
the two amounts will be shown in the Final Accounts?
Following is the Trial Balance of Virat as on 31st March, 2019:
Particulars Dr. (₹) Cr. (₹)
Plant and Machinery 42,500 -
Office Furniture 47,500 -
Motor Vehicles 47,500 -
Building 1,42,500 -
Stock (on 1 st April, 2018) 75,000 -
Purchases 5,25,000 -
Sales - 6,30,000
Returns Outward - 5,000
Returns Inward 10,000 -
Carriage Inwards 1,000 -
Carriage Outwards 2,000 -
Wages and Salaries 4,000 -
Salaries and Wages 20,000 -
Discount Allowed 2,000 -
Discount Received - 1,000
Commission Paid 1,500 -
Commission Received - 2,500
Interest Paid 2,500 -
Interest Received - 2,500
Repairs 3,600 -
Insurance 3,600 -
Printing and Stationery 600 -
Water and Electricity 1,200 -
Postage 500 -
Travelling Expenses 1,600 -
Conveyance Charges 1,200 -
Godown Rent 1,200 -
Office Rent 1,200 -
Sales Promotion Expens 2,400 -
Bad Debts 1,000 -
Depreciation 20,000 -
Miscellaneous Expenses 1,000 -
Miscellaneous incomes - 1,500
Debtors 2,00,000 -
Creditors - 40,000
Bills Receivable 15,000 -
Bills Payable - 11,600
10% Investments (Purchased
50,000 -
on 1st October, 2018)
Loan from Bank (Long-term) - 54,000
Cash in Hand 2,500 -
Cash at Bank 12,500 -
Drawings 8,000 -
Income tax 2,000 -
Capital - 5,04,000
Total 12,52,100 12,52,100
Additional Information: Closing Stock as on 31st March, 2019 was ₹ 42,000.
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and
Balance Sheet as at that date.
The following balances were taken from the books of Shri R. Lal as at 31st March, 2017:
Particulars Amount ₹ Particulars Amount ₹
Capital 1,00,000 Rent (Cr.) 2,100
Drawing 17,600 Railway Freight on sales 16,940
Purchases 80,000 Carriage Inwards 2,310
Sales 1,40,370 Office Expenses 1,340
Purchase Returns 2,820 Printing & Stationery 660
Stock on 1.4.2016 11,460 Postage 820
Bad Debts 1,400 Sundry Debtors 62,070
Bad Debts Provision on 1.4.2016 3,240 Sundry Creditors 18,920
Rates & Insurance 1,300 Cash at Bank 12,400
Discount (Cr.) 190 Cash in Hand 2,210
Bills Receivable 1,240 Office Furniture 3,500
Sales Returns 4,240 Salaries & Commission 9,870
Wages 6,280 Addition to Building 7,000
Building 25,000
Prepare Trading and Profit & Loss A/c and a Balance Sheet as at 31st March, 2017, after
keeping in view the following adjustments :
i. Depreciate old Building at 2 1/2% and addition to Building at 2% and Office
Furniture at 5%.
ii. Write off further Bad-debts ₹570.
iii. Increase the Bad-debts Provision to 6% of Debtors.
iv. On 31 st March, 2017 ₹570 are outstanding for salary.
v. Rent receivable ₹200 on 31st March, 2017.
vi. Interest on capital at 5% to be charged.
vii. Unexpired Insurance ₹240.
viii. Stock was valued at ₹14,290 on 31 st March, 2017.
From the following Trial Balance of Mr. Alok, prepare Trading and Profit & Loss Account
for the year ending 31st March, 2019, and a Balance Sheet as at that date:-
Dr. Balances ₹ Cr. Balances ₹
Drawings 5,275 Capital 59,700
Loan at 8% p.a. (on
Bills Receivable 4,750 10,000
1.4.2018)
Machinery 14,400 Commission Received 2,820
Debtors (including X for dishonoured Bill of
30,000 Creditors 29,815
₹1,000)
Wages 20,485 Sales 1,78,215
Returns Inward 2,390
Purchases 1,28,295
Rent 2,810
Stock (1.4.2018) 44,840
Salaries 5,500
Travelling Expenses 945
Insurance 200
Cash 9,750
Repairs 1,685
Interest on Loan 500
Discount Allowed 2,435
Bad-Debts 1,810
Furniture 4,480
2,80,550 2,80,550
The following adjustments are to be made :
i. Stock in the shop on 31st March, 2019 was ₹ 64,480.
ii. Half the amount of X's Bill is irrecoverable.
iii. Create a provision of 5% on other debtors.
iv. Wages include ₹ 600 for erection of new Machinery.
v. Depreciate Machinery by 5% and Furniture by 10%.
vi. Commission includes ₹300 being Commission received in advance.
Following is the Trial Balance as on 31st March 2016. Prepare Trading and Profit and Loss
Account and Balance Sheet:
Particulars Debit (₹) Credit (₹)
Stock (1st April 2015) 8,000
Sales 2,20,000
Purchases 1,26,000
Productive Wages 56,500
Salaries 16,000
Stores Consumed 6,050
Carriage 3,050
Lent and Rates 5,200
Insurance 1,320
Machinery 52,000
Building 67,000
Capital less Drawings 1,45,600
Sundry Debtors 44,000
Sundry Creditors 20,000
Secured Loan 15,000
Furniture 3,350
General Expenses 2,600
Cash in hand 1,930
Bad Debts 1,020
Bank 6,580
Total 4,00,600 4,00,600
Additional information:
i. Stock on 31st March 2016 is ₹20,600.
ii. Depreciate machinery @ 10% p.a.
iii. Make a Provision @ 5% for Doubtful Debts.
iv. Provide 212212% for discount on sundry debtors.
v. Rent and Rates include security deposit of ₹400.
vi. Insurance prepaid ₹120.
