Final Accounts (Without Adjustments)

Problem Sheet

PROB.1.
Ascertain gross profit and Net profit from following balances extracted from books Alfa
Associates for the year 2020.

Sales 1,60,000 Purchase returns 4,000

Purchases 91,300 Sales Returns 5,000
Wages 18,100 Salaries (office) 6,000
Rent – Factory 3,000 General Expenses 4,500
- Office 2,0000
Freight - Purchases 3,000 Discount from 1,100
Sales 1500 creditors
Opening Stock 24,000 Discount to 1,800
customers
Closing stock 22,100
PROB.2.
Prepare trading & Profit & Loss account of Alfa Partnership Firm from the following
information given in the trial balance for the year 2020:
Head of Account Debit Credit
Capital Account 25,000
Stock, 1st Jan, 2020 6200
Cash 1700
Sundry debtors 9100
Purchases 61,300
Sales 93,600
Return outwards 1800
Return inwards 500
Freight inwards 3700
Freight outwards 7200
Salaries 10,500
Rent 6000
Sundry creditors 4000
Mis. receipts 100
Drawing account 6300
Furniture & Fittings 10,800
Depreciation of Furniture fittings 1200

PROB.3.

The trial balance of Ram & Shyam Partners on 31st March 2020 revealed the following
balances: You are required to prepare Trading & Profit & Loss Account from the given
information:
 Head of Account Debit Balances Credit Balances
Plant & Machinery 80,000 Capital Account 1,00,000
Purchases 68,000 Sales 1,27,000
Sales returns 1,000 Purchase returns 1275
Opening stock 30,000 Discount received 800
Discount allowed 350 Sundry creditors 25,000
Bank charges 75
Sundry Debtors 45,000
Salaries 6800
Wages 10,000
Fright: In 750
Out 1200
Rent, rates & taxes 2000
Advertisements 2000
Cash in bank 6900

PROB.4.

The following balances are extracted from the books of Kautilya & Co. on 31 st Dec.,
2020. You are required to prepare the Trading and Profit & Loss Account and Balance
Sheet as on that date:

Stock in 1st Jan., 2020 500 Return outwards 250

B/R 2250 Trade Expenses 100
Purchases 19,500 Office Fixtures 500
Wages 1400 Cash in Hand 250
Insurance 550 Cash at Bank 2375
Sundry Debtors 15000 Rent & Taxes 550
Carriage Inwards 400 Carriage outward 725
Commission (Dr.) 400 Sales 25,000
Interest on Capital 350 Bills Payable 1500
Stationery 225 Creditors 9825
Return Inwards 650 Capital 8950
Commission (Cr.) 200

The closing stock was valued at Rs. 12500.