Preparation of Income Statement and Balance Sheet

1. From the following Trial Balance of Madras Traders Ltd for the year ended 31 st
March 2014, prepare the Income Statement and Balance Sheet.

Particulars Amt Particulars Amt

Goodwill 50,000 Capital 1,25,000

Leasehold land 67,450 Sales 1,78,940

Loose Tools 7,000 Income from service 19,630

Wages 25,860 Purchase returns 940

Rent 8,700 Loan 20,000

Purchases 96,420 Accounts payable 25,229

Stock 38,610 Bank overdraft 4,530

Sales Returns 400 Provision for bad debts 3,000

Carriage on purchases 2,240 Retained earnings 14,000

Insurance 1,180

Salaries 11,470

Vehicles 27,000

Furniture 3,200

Maintenance 1,000

Accounts receivable 39,910

Power 1,070

Advertising 9,750

TOTAL 3,91,260 TOTAL 3,91,260

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 Adjustments: Closing Stock – Rs 40,000

2. From the following Trial Balance of ZeeP Ltd for the year ended 31st March 2014,
prepare the Income Statement and Balance Sheet.

Particulars Amt
Opening Stock 45,000
Plant and Machinery 85,000
Furniture and fixtures 7,500
Freehold Premises 75,000
Purchases 1,50,000
Salaries 14,000
Sundry Debtors 55,000
Manufacturing Wages 30,000
Maintenance Expenses 15,000
Carriage Inwards 2,000
Carriage Outwards 2,100
Other Expenses 10,000
Bad Debts 750
Interest and Bank Charges 625
Rent 750
Insurance Premium Paid 1,500
Cash at Bank 695
Cash at hand 150
Capital 90,000
Sundry Creditors 43,000
Discount Received 3,500
Bank overdraft 20,000
Purchase Returns 1,500
Sales 3,37,070

Adjustments:
 Closing Stock – Rs 57000
 Insurance Prepaid – Rs 500
 Salary paid in advance – Rs 600
 Outstanding interest on overdraft – Rs 1000
 Rent unpaid – Rs 400

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  Depreciation in plant and machinery – 10% p.a
 Depreciation on furniture and fixtures – 20% p.a

3. From the following Trial Balance of ABC Ltd for the year ended 31 st March 2014,
prepare the Income Statement and Balance Sheet.

Particulars Debit (Rs) Credit(Rs)

Cash in hand 1,600
Cash at bank 7,100
Purchases 69,500
Sales 1,18,400
Sales Returns 600
Purchase Returns 700
Insurance 300
Wages 10,000
Power and Fuel 6,800
Carriage Inwards 3,900
Carriage Outwards 3,100
Opening Stock 11,000
Interest Received 500
Building 40,000
Machinery 36,000
Patents 10,000
Salaries 12,000
Trade Expenses 3,500
Capital 85,000
Miscellaneous Expenses 9,000
Receivables 46,000
Sundry Creditors 59,000
Bills Payable 6,800
Total 2,70,400 2,70,400

Adjustments:
 Closing Stock – Rs 17,000
 Provide for outstanding salary – Rs 1,500 and wages Rs 1,000
 Insurance was prepaid to the extent of Rs 75; Interest Accrued- Rs 250
 Machinery and Patents are depreciated @10% p.a and 20% p.a respectively
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4. From the following Trial Balance of NS Ltd for the year ended 31st March 2014,
prepare the Income Statement and Balance Sheet.

Particulars Amt Amt

Machinery 12,000
Building 11,21,000
Motor Vehicles 2,30,000
Debtors 5,300
Opening stock 8,400
Purchases 70,000
Sales returns 800
Electricity charges 24,000
Wages and salaries 2,800
Carriage inwards 5,000
Carriage outwards 4,000
General expenses 15,200
Insurance and taxes 9,200
Printing expenses 1,350
Cash in hand 2,800
Capital 6,40,000
Creditors 18,900
Sales 2,70,900
Purchase Returns 2,200
Bank Overdraft 54,850
Long term loan 5,25,000

Adjustments:
 Closing Stock – Rs 8,700
 Outstanding Printing Expenses – Rs 64,000
 Depreciation on machinery – 10%
 Taxes due – Rs 500
 Advance wages paid to employee – Rs 100
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5. From the following Trial Balance of Success Ltd for the year ended 31st March 2014,
prepare the Income Statement and Balance Sheet.

Particulars Amt
Land 1,00,000
Buildings 2,00,000
Sales 3,00,000
Purchases 1,75,000
Sales Returns 10,000
Stock 25,000
Debtors 1,84,800
Bank Overdraft 1,50,000
Purchase Returns 5,000
Cash in hand 5,000
Creditors 20,000
Salaries 10,000
Wages 12,000
Goodwill 15,000
General Expenses 5,000
Selling Expenses 12,000
Bad Debts 1,000
Insurance 1,200
Capital 2,81,000

Adjustments
 Closing Stock – Rs 30,000
 Depreciation on buildings @ 10%
 Write off further bad debts Rs 1000
 Salaries yet to be paid - Rs 3000
 Insurance prepaid – Rs 300

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