Numerical on Final Account & Depreciation

Q Prepare the Trading and profit and Loss Account and Balance Sheet of Jagat Shah as on
march 31, 2005 from the following balances :
Rs. Rs.
Capital (Cr.) 3,600 Salaries 600
Machinery 700 General Expenses 200
Sales 8,200 Rent 500
Purchases 4,000 Purchases Returns 50
Sales Returns 100 Debtors 3,000
Stock on April 1 1,000 Cash 400
Drawings 400 Carriage Outward 200
Wages 1,000 Advertising 200
Carriage Inward 50 Creditors 500
The closing stock was valued at Rs.2,000.
(Gross Profit Rs.4,100; Net Profit Rs.2,400; Total of Balance Sheet Rs.6,100)
Q.7. The following are the balances as at 31st March, 2005 extracted from the books) of
Muskan :
Rs. Rs.
Sales 92,000 Postage and Telegram 620
Purchases 68,300 Miscellaneous Expenses 900
Returns Inward 1,300 Bad Debts 400
Returns Outward 2,200 Debtors 22,000
Stock 17,600 Creditors 12,800
Carriage Inward 2,400 Loan- Mata Din (Cr.) 5,000
Rent, Rates and Taxes 2,200 Capital 52,500
Discount 3,750 Drawings 1,910
Printing 720 Business Premises 36,000
Insurance 500 Office Furniture 4,500
Travelling Expenses 1,400
The stock on 31st March, 2005 Rs.24,000. You are required to prepare the Trading
Account, profit and Loss Account and Balance Sheet, as at 31st March, 2005.
(Gross profit Rs.28,600, Net Profit Rs.18,110, Total of Balance Sheet Rs.86,500)
Q.8. The following balances were extracted from the books of Lalit Arora on 31st March, 2005
:
Rs. Rs.
Capital 24,500 Loan 7,880
Drawings 2,000 Sales 64,360
General Expenses 2,500 Purchases 46,000
Buildings 11,000 Motor Car 2,000
Machinery 9,340 Reserve Fund (Cr.) 900
Stock 16,200 Commission (Cr.) 1,320
Power 2,240 Car Expenses 1,800
Taxes and Insurance 1,315 Bills Payable 3,850
Wages 7,200 Cash 80
Debtors 6,280 Bank Overdraft 3,300
 Creditors 2,500 Charity 105
Bad Debts 550
Stock on 31st Mrarch, 2005 was valued at Rs.23,500. Prepare the final accounts for the
year ended on 31st March, 2005.
[Gross Profit Rs.16,220, Net Profit Rs.11,270 and Balance Sheet Total Rs.52,200]
Q.9. From the following balances taken from the books on Amit & Co., prepare Trading and
Profit and Loss account for the year ending 31st March, 2005 and Balance Sheet as on
that date :
Rs. Rs.
Capital 3,50,000 Salaries 11,100
Buildings 1,87,500 Discount allowed 2,000
Machinery 92,500 Stock (1st April) 1,65,000
Debtors 70,000 Bills Payable 50,000
General Expenses 8,000 Sales 6,35,000
Rent paid 37,100 Purchases 4,68,500
Proprietor's Drawings 6,500 Wages 25,000
Electric Charges 1,900 Cash in Hand 18,000
Carriage Inward 8,500 Sundry Creditors 1,00,000
Cash at Bank 30,000 Returns Inward 4,500
Returns outward 1,100
Closing Stock was Rs.1,82,100.
[Gross profit Rs.1,46,700, Net profit Rs.86,600, Balance Sheet Total Rs.5,80,100]
Q.10. From the following Trial Balance, prepare a Trading and Profit and Loss Account for the
year ending 31st December, 2004 and a Balance Sheet as on that date :
Particulars Rs. Rs.
Sundry Debrors 15,000
Stock (1-1-2004) 50,000
Land and Buildings 1,00,000
Capital 2,50,000
Rent 6,000
Cash in Hand 16,000
Cash at Bank 40,000
Wages 30,000
Sundry Creditors 70,000
Bills Receivable 20,000
Interest 2,000
Bad Debts 5,000
Repairs 3,000
Sales 1,70,000
Bills Payable 40,000
Furniture and Fixtures 15,000
Depreciation 10,000
Rates and Taxes 8,000
Salaries 20,000
Drawings 20,000
Purchases 1,00,000
Office Expenses 25,000
 Pand and Machinery 57,000
5,36,000 5,36,000
On 31st December, 2004 the Stock was valued at Rs.1,00,000.
[Gross profit Rs.90,000, Net Profit Rs.23,000, Balance Sheet Total Rs.3,63,000]
Q.12. The following Trial Balance has been extracted from the books of Messers Amit Arora &
Sons on 31st March, 2005 :
Debit Balances Rs. Credit Balances Rs.
Machinery 4,000 Capital 9,000
Cash at Bank 1,000 Sales 16,000
Cash in Hand 500 Sundry Creditors 4,500
Wages 1,000 Interest Received 300
Purchases 8,000
Stock on 1st April, 2004 6,000
Sundry Debtors 4,400
Bills Receivable 2,900
Rent 450
Commission 250
General Expenses 800
Salaries 500
29,800 29,800
Provide for interest on capial at 5 perent per annum. Depreciate Machinery at 10
percent. Wages outstanding amounting to Rs.50. Rent prepaid amounts to Rs.100.
Stock on 31st March, 2005 amounts to Rs.8,000.
Prepare Trading and Profit and Loss Account for the year ending 31st March, 2005 and
Balance Sheet as on the last date of the year.
(Gross Profit Rs.8,950, Net Profit Rs.6,500, Total of Balance Sheet Rs.20,500)
Q.13. On 31st December, 2004 the following trial balance was extracted from the books of
Amit :
Debit Balance Credit Balance
Rs. Rs.
Capital 30,000
Drawings 5,000
Debtors and Creditors 20,000 10,000
Loan 9,500
Interest on Loan 300
Cash 2,000
Provision for Bad Debts 700
Stock (1st January, 2004) 6,800
Motor Vehicles 10,000
Bank 3,500
Land and Buildings 12,000
Bad Debts 500
Purchases and Sales 66,000 1,10,000
Returns 8,000 1,500
Carriage Outward 2,500
carriage Inward 3,000
 Salaries 9,000
Rent and Insurance 3,000
Advertising 3,500
Discount 500
General Expenses 3,400
Bills Receivable and Bills Payable 6,000 2,000
Rent Received 300
1,64,500 1,64,500
Prepare Trading Account and Profit and LossAccount for the year ended 31st
December, 2004 and Balance Sheet as on that date after taking into account the
following :
1) Depreciate Land and Buildings at 2½% and Motor Vehicles at 20%.
2) Salaries outstanding Rs.200.
3) Prepaid Insurance Rs.200.
4) Provision for Bad Debts is to be maintained at 5% on Debtors.
5) Stock on 31st December, 2004 was valued at Rs.7,000.
[Gross Profit Rs.34,700, Net Profit Rs.10,700, Balance Sheet Total Rs.57,400]
Q.14. The following balances were extracted from the books of Amit Arora on 31st March,
2005 :
Rs. Rs.
Capital 24,500 Loan 7,880
Drawings 2,000 Sales 65,360
General Expenses 4,740 Purchases 47,000
Buildings 11,000 Motor Car 2,000
Machinery 9,340 Bat Debts Provision 900
Stock 16,200 Commission (Cr.) 1,320
Taxes and Insurance 1,315 Car Expenses 1,800
Wages 7,200 Bills Payable 3,850
Debtors 6,280 Cash 80
Creditors 2,500 Bank Overdraft 3,300
Bad Debts 550 Charity 105
Prepare the Trading and Profit and Loss Account for the year ending 31st March, 2005,
and a Balance Sheet as on that date after giving effect to the following adjustments :
1) Stock on 31st March, 2005 was valued at Rs.23,000.
2) Write off a further Rs.180 as Bad Debts and maintain the Bad Debts
Provision at 5% on Debtors.
3) Depreciate Machinery at 10%.
4) Provide Rs.700 for outstanding interest on loan.
(Gross Profit Rs.17,960, Net Profit Rs.9,551, Total of Balance Sheet Rs.50,281)
Q.15. The following Trial Balance was extracted from the books of Ram as on 31st December,
2004 :
Debit Balances Rs. Credit Balances Rs.
 Drawings 7,000 Capital 90,000
Purchases 82,210 Purchases Returns 4,240
Sales Returns 1,820 Sales 1,49,840
Stock on January 1, 2004 11,460 Bad Debts Provision (January 1) 4,240
Salaries 6,280 Discount 180
Wages 8,560 Sundry Creditors 16,980
Leasehold Premises 25,000
Rent, Rates and Insurance 6,940
Carriage Inwards 2,310
Office Expenses 9,520
Plant and Machinery 24,000
Light and Water 7,950
Bills Receivable 1,240
Sundry Debtors 38,970
Cash at Bank 12,400
Cash in Hand 2,210
Office Furniture 3,500
Travellers' Salaries 9,870
Bad Debts 1,000
Carriage Outward 3,240
Prepare a Trading and Profit and Loss Account for the year ended 31st December, 2004
and a Balance Sheet as at that date after taking into account the following :
1) Depreciation is to be written off as follows :
Leasehold premises 5%, Plant and Machinery 10%
2) Write off a further Rs.500 as bad debts and make a provision for doubtful
debts equal to Rs.5,000.
3) Wages amounting to Rs.570 has become due but had not been paid.
4) The value of stock on 31st December, 2004 was Rs.14,920.
5) Unexpired premium amounting to Rs.680 is to be carried forward to next
year.
(Gross Profit Rs.54,120, Net Profit Rs.13,220, Total of Balance Sheet Rs.1,13,770)
Q.16. The following is the Trial Balance of Mr. Surender Arora on 31st December, 2004 :
Particulars Debit Balance Credit Balance
Rs. Rs.
Cash in Hand 1,080
Cash at Bank 5,260
Purchases 81,350
Sales 1,97,560
Returns Inward 1,360
Returns Outward 1,000
Wages 20,960
Fuel and Power 9,460
Carriage on Sales 6,400
Carriage on Purchases 4,080
Stock (1st January, 2004) 11,520
Building 60,000
 Freehold Land 20,000
Machinery 40,000
Salaries 30,000
Patents 15,000
General Expenses 6,000
Insurance 1,200
Capital 1,42,000
Drawings 10,490
Sundry Debtors 29,000
Sundry Creditors 12,600
3,53,160 3,53,160
Taking into account the following adjustments prepare Trading and Profit and Loss
Account and the Balance Sheet :
1) Stock on hand on 31st December, 2004 is Rs.13,600.
2) Machinery is to be depreciated at the rate of 10% and patents at the rate
of 20%.
3) Salaries for the month of December, 2004 amount Rs.3,000 were unpaid.
4) Insurance include a premium of Rs.170 for 2005.
5) Wages include a sum of Rs.4,000 spent on the erection of a scooter shed
for employees and customers.
6) A provision for Bad and Doubtful Debts is to be created to the extent of
5% on Sundry Debtors.
[Gross Profit Rs.87,430, Net Profit Rs.32,550, Total of Balance Sheet Rs.1,79,660]
Q.18. The Trial Balance of Mr. Rajender Dhupar as on 31-12-2004 was as follows :
Particulars Dr. Particulars Cr.
Rs. Rs.
Purchases 1,62,505 Sales 2,52,400
Sundry Debtors 50,200 Provision for Doubtful Debts 5,200
Opening Stock 26,725 Sundry Creditors 30,526
Wages 23,137 Bills Payable 3,950
Salaries 5,575 Outstanding wages 2,000
Furniture 7,250 Trade expenses accrued
Postage 4,226 but not paid 700
Power and Fuel 1,350 Capital A/c 10,000
Trade Expenses 5,831
Bad Debts 525
Loan at 15% per annum to
Sabbu, 1st September, 2004 3,000
Cash on hand and at Bank 10,000
Drawings A/c 4,452
3,04,776 3,04,776
Prepare the Trading and Profit and Loss Account for the year ended 31-12-2004 and the
Balance Sheet as at that date taking into account the following information :
1) Depreciate furniture at 10% per annum.
2) Sundry debtors include an item of Rs.500 due from a customer who has
become insolvent and nothing is recoverable from his estate.
3) Provision for doubtful debts is to be maintained at 5% on Sundry debtors.
4) Goods of the value of Rs.1,500 have been destroyed by fire and the
Insurance Company has admitted the claim for Rs.1,000.
5) Stock at 31st December, 2004 was Rs.12,550.
[Gross Profit Rs.52,733, Net Profit Rs.37,716, Total of Balance Sheet Rs.80,440]