FINAL ACCOUNT (CLASS 11)

1. From the following trial balance, prepare trading and profit and loss account and balance sheet as
on 31st March 2020.
Debit Balance Amount Credit Balance Amount
Purchases 16,000 Sundry creditors 2,400
Stock (on 1-4-2019) 8,000 Sales 40,000
Land and building 32,000 Purchases returns 2,520
Plant and machinery 20,000 Bills payable 8,000
Furniture 4,000 Long term loans 8,000
Bills receivable 1,600 Capital 32,000
Sales returns 1,600
Wages and salaries 400
Carriage 80
Salaries and wages 800
Rent 60
Trade expenses 100
Interest 120
Bank 4,160
Sundry debtors 4,000
92,920 92,920

The value of stock on 31st March 2020 was Rs. 8,800.

[Ans: GP Rs. 25,240; NP Rs. 24,160; B/S total Rs. 74,560]
2. Followin
Debit Balance Amount Credit Balance Amount g is the
Opening stock 45,000 Sales 380,000 trial
Purchases 270,000 Purchases return 4,000 balance
Wages and salaries 14,000 Capital 40,000 of a
trader for
Manufacturing expenses 15,000 Creditors 22,000
the year
Salaries prepaid 21,000
ended
Rent 10,000 31st
General expenses 15,000 Chaitra
Debtors 40,000 2077.
Cash in hand 9,000
Furniture 7,000
446,000 446,000
 Additional information:
i. Wages due Rs. 1,500
ii. Prepaid salaries Rs. 2,000 was expired
iii. Closing stock Rs. 49,000.
Required: (a) Trading account (b) Profit and loss account.
[Ans: (a) GP Rs. 87,500, (b) NP Rs. 60,500]
3. Trading account, Profit and loss account and balance sheet
Following is the Trial Balance of Rs. Trading concern for the year ended 31 st Chaitra 2076:
Trial Balance
Debit Balance Amount Credit Balance Amount
Opening stock 22,500 Sales 200,000
Purchases 135,000 Capital 50,000
Debtors 20,000 Return outward 3,000
Wages and Salary 7,000 Creditors 10,000
Carriage inward 7,500
Salaries 10,500
Rent 9,000
Selling expenses 3,500
Cash and bank balance 6,000
Equipment's 42,000
263,000 263,000
Additional Information:
a. Closing stock Rs. 25,000
b. Prepaid rent Rs. 3,000
c. Outstanding salaries Rs. 2,500.
Required:
i. Trading Account
ii. Profit and Loss Account
iii. Balance Sheet.
[Ans: i. GP = Rs. 56,000 ii. NP Rs. 33,500 iii. B/S Total Rs. 96,000]
4. Consider the following trial balance of Ram as on 31st Chaitra 2077.
Debit Balance Amount Credit Balance Amount
Opening stock 64,000 Sales 480,000
Drawing 14,000 Capital 80,000
Purchases 290,000 Creditors 38,000
Freight 10,000 Purchase return 5,000
Salaries 56,000 Commission received 2,000
Printing and stationery 2,000
Wages 30,000
Sales return 6,000
Debtors 44,000
Cash in hand 7,000
Building 40,000
Office rent 8,000
Trade expenses 5,000
Selling expenses 9,000
585,000 585,000
Additional information:
i. Depreciation on building Rs. 2,000
ii. Provision for bad debt on debtors Rs. 4,000. ( Estimated bad debts)
iii. Closing stock Rs. 70,000
Required:
(a) Trade account.
(b) Profit and loss account.
[Ans: (a) GP Rs. 135,000, (b) NP Rs. 51,000]
5. The trial balance of a trader for the last fiscal year is as under.
Account Titles Debit Rs. Credit Rs.
Opening stock 40,000
Purchases 350,000
Purchases expenses 8,000
Manufacturing expenses 80,000
Furniture 30,000
Debtors 52,000
Salaries 35,000
Prepaid insurance premium 10,000
Stationery 5,000
Sales 50,000
Capital 60,000
Creditors 80,000
Bills receivable 50,000
Interest 20,000
660,000 660,000
 Additional information:
i. Prepaid insurance premium expired Rs. 1,000.
ii. Actual bad debts Rs. 5,000.
iii. Provision for doubtful debts 5%. (Estimated bad debts)
Required:
(a) Trading account
(b) Profit and loss account
[Ans: (a) GP Rs. 22,000, (b) NL Rs. 6,350]

6. Consider the following trial balance of a trading concern:

Account Titles Debit Rs. Credit Rs.
Sundry assets 192,000
Sundry liabilities 14,000
Capital 140,000
Gross profit 60,000
Prepaid insurance 8,000
Unearned commission 6,000
Salaries and wages 20,000
220,000 220,000
 Additional information:
i. Prepaid insurance expired to the extent of Rs. 3,000.
ii. Commission earned Rs. 5,000 out of the unearned commission.
Required:
(a) Profit and loss account.
(b) Balance sheet.
[Ans: (a) NP Rs. 42,000; (b) B/S Total Rs. 197,000]
7. The following is the trial balance of a Trading Concern on Chaitra 31, 2077:
Debit Balance Amount Credit Balance Amount
Building 100,000 Capital 200,000
Machinery 80,000 Bank loan 30,000
Debtors 40,000 Creditors 10,000
Cash at bank 18,000 Provision for doubtful debts 3,000
Rent 11,000 Interest 2,000
Salaries 25,000 Gross profit 108,000
Bad debts 1,000
General expenses 1,000
Prepaid insurance 2,000
Furniture 25,000
Closing stock 50,000
353,000 353,000
 Additional information:
i. Outstanding salary Rs. 2,000.
ii. Prepaid insurance Rs. 1,500 was expired.
iii. Write-off bad debts Rs. 2,000.
iv. Depreciation: Machinery 10% and Furniture 5%.
Required:
(a) Profit and loss account
(b) Balance sheet.
[Ans: (a) Rs. NP Rs. 60,250 (b) B/S total Rs. 302,206]
8. The following is the trial balance of a trader on 31st December 2020.
Debit Balance Amount Credit Balance Amount
Beginning stock 150,000 Sales 700,000
Purchases 300,000 Loan 70,000
Debtors 150,000 Capital 400,000
Interest 26,000 Creditors 57,000
Expenses on purchase 15,000 Bills payable 10,000
Machinery 400,000 Commission 3,000
Audit fees 2,000
Cash at bank 100,000
Goodwill 15,000
Drawing 50,000
Bad debt 2,000
Wages 10,000
Salaries 20,000
12,40,000 12,40,000
Additional information:
i. Closing stock Rs. 100,000
ii. Depreciation: Machinery 10%
iii. Outstanding expenses: Salary Rs. 5,000 and Wages Rs. 2,000.
Required:
(a) Trading account
(b) Profit and loss account
(c) Balance sheet as on 31st December, 2020.
[Ans: (a) GP Rs. 323,000; (b) NP Rs. 231,000; (c) B/S Total Rs. 725,000]
 P.T.O

9. The trial balance prepared by a trader as 31st March 2020 is given below:
Name of Accounts Debit Rs. Credit Rs.
Investment 50,000 _
Debtors 30,000 _
Purchase 210,000 _
Wage 20,000 _
Sundry creditors _ 86,000
Sales _ 360,000
Capital _ 290,000
Discount allowed and received 13,000 4,000
Cash and bank 20,000 _
Opening stock 38,000 _
Sales promotion expenses 10,000 _
Machinery 38,000 _
Interest Administrative expenses 10,000 5,000
Machinery 138,000 _
Interest _ _
Administrative expenses 8,000 _
Goodwill 20,000 _
Commission 6,000 _
Salary 21,000 _
Traded expenses 4,000 _
Building 120,000 _
Carriage 7,000 _
Furniture 36,000 _
Bills payable _ 16,000
Manufacturing expenses 10,000 _
Total 761,000 761,000
Additional information:
i. Stock at the end was Rs. 56,000.
ii. Depreciate machinery by 5% and furniture by 10% p.a.
iii. Wage still to pay is Rs. 2,500.
 Required:
(a) Trading account.
(b) Profit and Loss account.
(c) Balance Sheet as at 31st March, 2020.
[Ans: (a) GP Rs. 128,500; (b) NP Rs. 65,000; (c) B/S Total Rs. 459,500]

10. From the following trial balance of a trader for the year ended 31st Chaitra 2077, prepare trading,
profit and loss account and balance sheet.
Debit Balance Amount Credit Balance Amount
Opening stock 50,000 Sales 460,000
Purchases 304,000 Capital 80,000
Carriage in 15,000 Suppliers' account 38,000
Salaries 56,000 Purchase return 5,000
Office expenses 6,000 Rent from tenant 2,000
Wages 30,000
Sales return 6,000
Customers' account 44,000
Cash in hand 7,000
Plant and machinery 40,000
Office rent 8,000
Selling expenses 5,000
Life insurance premium of owner 14,000
585,000 585,000

Additional information:
i. Depreciation on plant and machinery Rs. 2,000.
 ii. Outstanding salaries Rs. 4,000.
iii. Closing stock Rs. 76,000.
[Ans: GP Rs. 136,000; NP Rs. 57,000; B/S Total Rs. 165,000.
11. Following is the trial balance of a trader for the year ended 31st Chaitra 2077.
Debit Balance Amount Credit Balance Amount
Opening stock 45,000 Sales 380,000
Purchases 270,000 Purchase return 4,000
Wages 14,000 Capital 40,000
Manufacturing expenses 15,000 Creditors 22,000
Salaries 16,000
Prepaid salaries 5,000
Rent 18,000
Office expenses 7,000
Debtors 40,000
Cash in hand 9,000
Furniture 7,000
446,000

446,000 446,000

Additional information:
i. Outstanding wages Rs. 1,500.
ii. Prepaid salaries unexpired Rs. 1,000
iii. Closing stock Rs. 49,000
Required:
(a) Trading account.
(b) Profit and loss account.
(c) Balance sheet.
 [Ans: (a) GP Rs. 87,500 (b) NP Rs. 42,500 (c) B/S total Rs. 106,000]
12. The following is the trial balance of a trader as on 31st Chaitra.
Particulars Debit Rs. Credit Rs.
Opening stock 1,00,000
Purchases 9,00,000
Machinery 1,50,000
Wages 30,000
Debtors 70,000
Insurance 10,000
Carriage 5,000
Salaries 40,000
Bad debts 5,000
Furniture 50,000
Rent 20,000
Cash 45,000
Sales 10,50,000
Capital 2,00,000
Creditors 1,50,000
Interest received 25,000
14,25,00
Total 0 14,25,000

Additional Information:
i. Closing stock: Rs. 2,10,000
ii. Pre-paid insurance: Rs. 2,000
iii. Wages due: Rs. 5,000
 iv. Depreciate machinery @10% p.a.
v. Additional bad debts: Rs. 4,000
vi. Rent due for two months
Required:
(a) Trading Account
(b) Profit and loss Account
(c) Balance sheet
[Ans: (a) GP Rs. 220,000 (b) NP Rs. 149,000 (c) B/S Rs. 508,000]

13. The trial balance of a trading concern as on 31st Chaitra 2070 is given below:
Particulars Debit Rs. Credit Rs.
Opening stock 2,00,000
Purchases 3,00,000
Carriage 20,000
Debtors 30,000
Furnitures 30,000
Machinery 2,00,000
Equipments 60,000
Cash 30,000
Bank balance 70,000
Salaries 50,000
Wages 30,000
Capital 2,00,000
Bank loan 70,000
Sales 7,50,000
Creditors 60,000
Commissions 13,000
Insurance 10,000
Rent paid 60,000
Discount 3,000
Total 10,93,000 10,93,000
 Adjustments
i. Wages Rs. 2,000 and salaries Rs. 3,000 are to be paid
ii. Prepaid insurance Rs. 2,000
iii. Bad debts Rs. 5,000
iv. Charge depreciation 10% on machinery, 5% each on furniture and equipments.
v. Closing stock on 31st Chaitra Rs. 2,00,000
Required:
(a) Trading account
(b) Balance sheet
(c) Profit and loss account
[Ans: GP Rs. 3,98,000; NP Rs. 2,54,500; B/S Rs. 5,92,500]

14. Trading account, profit and loss account and balance sheet.
The following is the Trial balance of a Trader as on 31st Chaitra 2076:
 Trial Balance
Debit Balance Rs. Credit Balance Rs.
Purchase 275,000 Purchase return 5,000
Prepaid insurance 2,500 10% Bank loan 50,000
Opening stock 80,000 Bills payable 5,000
Carriage inward 5,000 Sales 330,000
Carriage outward 4,000 Capital 200,000
Sale return 6,000 Advance received rent 5,000
Debtors 24,000 Outstanding Rent 1,000
Discount 2,000
Goods distributed as free sample 2,500
Salaries and Wages 25,000
Bills receivable 4,500
General expenses 5,000
Wages and salaries 35,000
Cash and bank 12,000
Interest 2,500
Land 90,000
Furniture 10,000
Preliminary Expenses 11,000
596,000 596,000
Additional information:
a. Interest on loan for 6 months is to be paid.
b. Prepaid salary and wages Rs. 5,000.
c. Prepaid insurance expired Rs. 1,000.
d. Appreciate Land by 20% p.a.
e. Bad debt writes off Rs. 5,000.
f. Rent earned Rs. 4,000.
g. Depreciate furniture by 10% p.a.
Required:
(a) Trading Account.
(b) Profit and Loss Account.
(c) Balance Sheet.
[Ans: As per Traditional Approach: i. Gross loss = Rs. 66,000 As per Modern Approach: Rs.
68,000 ii. Net loss Rs. 89,500 iii. B/S Total Rs. 1,70,000]

15. Trial balance of Nabin Trader on Chaitra 30, 2071 is given below. (Model question)

Particulars Rs. Particulars Rs.

 Selling expenses 5,000 Gross profit b/d 87,000
Interest 5,000 Creditors 8,000
Debtors 25,000 Bank loan 19,000
Bed debt 2,000 Provision for bad debt 2,000
Insurance 1,000 Capital 50,000
Salaries 20,000
Investment 40,000
Cash 14,000
Machinery 50,000
Rent 4,000
Total 166,000 Total 166,000
Additional information:
a. Depreciation on machinery 10% p.a.
b. Salary payable Rs. 4,000
c. New bad debt Rs. 1,000
Required:
a. Profit & Loss account
b. Balance sheet
Financial Statements based on NFRS
16. The trial balance of Deepak Store as on 31st December, 2020 is given below: (Model question)

Particulars Rs. Particulars Rs.

Plant and machinery 360,000 Gain on sale of furniture 10,000
Salary expenses 71,000 Creditor 96,000
Cost of goods sold 755,000 Sales 10,53,000
Debtors 34,500 Accumulated depreciation on 45,000
plant and machinery
Stock at end 110,000 15% Bank loan 56,000
Drawing 15,000 Capital 350,000
10% Investment 120,000 Interest on investment 10,000
Good will 48,500
Gas and oil expenses 8,000
Cash 40,000
Repair expenses 34,000
Prepaid insurance 24,000
Total 16,20,000 Total 16,20,000
Additional information
a. Salaries are 80% of selling and 20% administrative expenditure.
b. Insurance expires of Rs. 18,000
c. Depreciation on plant and machinery is 15%
d. Gas and oil expenses are selling expenses.
Required:
a. Income statement based on NFRS
b. Balance sheet based on NFRS
17. The ledger balances of ABC Trading Concern on 31st Chaitra, last year is given below:
 Account Titles Debit Rs. Credit Rs.
Capital _ 90,000
Cash at bank 52,000 _
Debtors 20,000 _
Advertising expense 15,000 _
Plant & equipment 160,000 _
Creditors _ 100,000
Sales revenue _ 150,000
Rent expense 20,000 _
Opening stock 15,000 _
Interest expense 3,000
Salaries 35,000 _
Purchase 50,000 _
Loan _ 30,000
370,000 370,000
Additional Information:
a. Depreciation on plant and equipment Rs. 6,000.
b. Outstanding salaries Rs. 4,000.
c. Closing stock Rs. 16,000.
d. Provision for doubtful debt Rs. 3,000.
Required:
a. Statement of profit or loss based on NFRS.
b. Statement of financial position as per NFRS.
[Ans: Profit Rs. 15,000]
18. The following trial balance is related to Sangita Enterprises.

Account Titles Debit Rs. Credit Rs.

Cash 15,000 _
Prepaid insurance 5,000 _
Office supplies 8,000 _
Office equipments 60,000 _
Drawing 4,000 _
Accumulated depreciation _ 10,000
Accounts payable _ 12,000
Share capital _ 45,000
Service revenue _ 60,000
Utility expenses 15,000 _
Salaries 20,000 _
127,000 127,000
Additional information:
a. Outstanding salaries Rs. 4,000.
b. Supplies in hand Rs. 3,000.
c. Prepaid insurance expired Rs. 1,000.
d. Depreciation on equipment Rs. 4,000.
e. Income tax 25%.
Required:
a. Statement of profit or loss based on NFRS.
b. Statement of financial position as per NFRS.
[Ans: Net Income Rs. 8,250, B/S Total Rs. 68,000]
19. The trial balance of Karan Store contained the following accounts at December 31, 2018.

Account Titles Debit Rs. Account Titles Credit Rs.

Cash and bank balance 33,400 Accumulated depreciation – Plant 96,400
and machinery
Accounts receivable 37,600 Notes payable 50,000
Merchandise inventory 90,000 Accounts payable 69,500
Plant and machinery 372,500 Capital 357,800
Investment 140,000 Sales 902,100
Drawings 10,000 Gain on sale of furniture 10,000
Sales discount 4,600 Profit on dissolve of old business 40,000
Cost of goods sold 709,000
Salaries expense 69,800
Utilities and repairs expense 51,700
Gas and oil expense 7,200
1,525,800 1,525,800
Other information:
a. Salaries are 80% selling and 20% administrative.
b. Utilities and repair expenses are 100% administrative.
c. Income tax Rs. 20,940.
d. Rs. 15,000 of the notes payable are payable next year.
e. Gas and oil expense is a selling expense.
Required:
a. Statement of profit or loss for the year ended 31 December.
b. Statement of financial position.
[Ans: (a) Profit Rs. 88,860 (b) B/S total Rs. 577,100]
20. Trial balance of B&B Enterprises for the year ended 31st Chaitra 2075 is given below. The
enterprises is operated by two partners Binod and Barun whose capital investment ratio is 3:2.

Debit Items Debit Rs. Credit Items Credit Rs.

Bank/Cash balance 10,000 Sales 120,000
Fixed assets 80,000 Provision for bad debt 1,000
Opening stock 20,000 Accumulated depreciation 9,000
Purchases 70,000 Accounts payable 20,000
Office expenses 10,000 Capital stock 100,000
Prepaid salaries 15,000 (Binod Rs. 60,000 and Barun
Advertisement 8,000 Rs. 40,000)
Accounts receivable 40,000 Bank loan 10,000
Drawing (Binod Rs. 1,200 and 2,000
Barun Rs. 800)
Stock of supplies 5,000
260,000 260,000
Additional Information:
a. Depreciation on fixed assets @ 10%.
b. Closing stock Rs. 30,000.
c. Supplies in hand Rs. 2,000.
d. Outstanding office expenses Rs. 2,000.
e. Prepaid salaries Rs. 12,000 was expired.
f. Provision for bad debt 5%.
g. Provision for tax @ 25% (income tax expenses).
Required: Financial statements as per NFRS. [Ans: Rs. 12,000, B/S total Rs. 146,000]