Unit 06 – financial statements for sole traders – Exercises

(Keep space after each question for the trading account for about ½ a page)

Trading account
1. Using following information extracted from Hasini’s business for the year ended
31/03/2020, prepare the trading account.(Rs.)

Stocks as at 01/04/2019 8 000

Purchases 60 000
Carriage inwards 4 000
Sales 152 000
Stocks as at 31/03/2020 20 000

2. Using following information extracted from Manisha’s business for the year ended
31/03/2020, prepare the trading account.(Rs.)

Stocks as at 01/04/2019 20 675

Purchases 179 500
Carriage inwards 4 000
Sales 350 000
Stocks as at 31/03/2020 22 000
Return inwards 2 000
Return outwards 1 500

3. Using following information extracted from Sasmika’s business for the year ended
31/03/2020, prepare the trading account.(Rs.)

Stocks as at 01/04/2019 10 000

Purchase of goods 30 000
Stationery purchases 2 000
Carriage inwards 1 000
Sales 77 000
Stocks as at 31/03/2020 7 000
Sale of machineries 15 000
Return outwards 7 000
Sales return 3 000
Carriage outwards 1 500

pg. 1
Profit or loss account
4. Following information were extracted from the books of Manuri’s business for the
year ended 31/03/2020. (Rs.)

Gross profit 700 000

Discount received 50 000
Rent and rates 50 000
Machinery maintenance 9 000
Electricity 12 000
Building depreciation 15 000
Machinery depreciation 14 000
Insurance 36 000
Salaries and wages 100 000
General expenses 10 000
Furniture depreciation 14 000
Bad debts 40 000
Motor vehicle depreciation 11 000
Advertising 40 000
Doubtful debts 8 000
Loan interest 20 000
Discount allowed 20 000
Audit fees 30 000
Sales commission paid 30 000
Building rent paid 24 000
Vehicle repairs 16 000
Investment income 44 000
Bank charges 5 000

 Prepare the profit or loss account of Manuri’s business for the year ended
31/03/2020.

(Keep space for about 1 page for the answer)

pg. 2
5. Following information was extracted from the books of Nalin’s business for the year
ended 31/03/2020. (Rs.)

Stocks as at 01/04/2019 80 000

Purchase of goods 500 000
Sales 1560 000
Carriage inwards 26 000
Salaries and wages 88 000
Stationery 24 000
Telephone 16 000
Electricity 25 000
Return outwards 20 000
Sales returns 40 000
Travelling for office staff 30 000
Rates and insurance 54 000
Loan interest 20 000
Discount allowed 50 000
Discount received 70 000
Bank charges 16 000
Commission received 20 000
Building rent paid 6 000
Advertising 50 000
Stocks as at 31/03/2020 25 000

 Prepare the trading profit and loss account (statement of profit or loss) of Nalin’s
business for the year ended 31/03/2020.

(Keep space for about 1 and ½ page for the answer)

pg. 3
6. Following information was extracted from the books of Savinu’s business for the
year ended 31/03/2020. (Rs.)

Stocks as at 01/04/2019 90 000

Purchase of goods 600 000
Sales 1760 000
Carriage inwards 56 000
Salaries and wages 108 000
Stationery 30 000
Telephone 20 000
Electricity 32 000
Return outwards 35 000
Sales returns 45 000
Travelling for office staff 35 000
Rates and insurance 68 000
Loan interest 30 000
Discount allowed 60 000
Discount received 85 000
Bank charges 35 000
Commission received 25 000
Building rent paid 10 000
Advertising 55 000
Stocks as at 31/03/2020 45 000

 Prepare the trading profit and loss account (statement of profit or loss) of Savinu’s
business for the year ended 31/03/2020.

(Keep space for about 1 and ½ page for the answer)

pg. 4
pg. 5