Name: ___________________ Date: ____________

Class: X Class Test – Financial Statements with Adjustments Subject: Accountancy

Maximum Marks: 25 Time: 1 hour

Q 1 Calculate the Gross profit from the following information: (2)

rd
Adjusted Purchases ₹ 15,00,000; Cash Sales is 1/3 of the Total sales, Credit sales ₹
15,00,000; Returns outwards ₹ 15,000; Packing expenses on purchases ₹ 20,000;
Depreciation on machinery ₹ 36,000; factory expenses ₹ 60,000; Closing stock ₹ 1,20,000.

Q 2 From the following balances extracted from the books of M/s Ahuja and Nanda.
Calculate the amount of cost of goods sold and Gross Profit during the year : (3)
₹
Opening stock 25,000
Credit purchases 7,50,000
Net purchases 10,40,000
Credit sales 12,00,000
Cash sales 4,00,000
Salaries and Wages 1,40,000
Closing stock 30,000
Sales return 50,000
Purchases return 10,000

Q 3 Pass the adjustment entries with reference to the following transactions: (4)
st
1. Insurance premium paid during the year ended 31 March,2022 ₹ 36,000. This amount
includes an annual premium of ₹ 12,000 paid up to 30th June,2022.
2. 10% Fixed Deposit of ₹ 6,00,000 was made on 1st July,2022. Interest on fixed deposit
received till date is ₹ 30,000.
3. Salaries have been paid for 11 months ₹ 1,10,000.
4. Goods distributed among the staff during Diwali amounted to ₹ 40,000.
Q 4 Pass the adjustment entries with reference to the following transactions: (8)
th
1. Goods costing ₹ 1,00,000 were destroyed by fire on 25 March, 2022. The stock was
insured and the insurance company accepted 70 % of the claim on 31 st March,2022.
2. A piece of furniture costing ₹ 50,000 was purchased on 1 st July,2021 but it was not
recorded in the books as payment was not made for it. Wages ₹ 2,000 were paid for
assembling it have been debited to Wages Account.
3. Ranjana allowed a commission of 10% of profits to her manager after charging his
commission. Net Profit amounted to ₹ 22,00,000 for the year ending 31 st March 2022.
4. Following information is given in the Trial Balance:

₹
Debtors 40,000
Existing provision for bad debt 3,500
Bad Debt 3,000
 Additional information: Make a provision for doubtful debts @ 10% on debtors.

Q 4 From the following Trial Balance of Manish Sharma, prepare Trading and Profit & Loss
Account for the year ending 31st March,2022, and a Balance Sheet as at that date: (8)

Balances Dr (₹) Cr (₹)

Capital 60,000
Bills Receivable 4,750
Machinery 14,400
Debtors (including Bindu for dishonoured cheque 30,000
of ₹ 1,000)
Loan at 8% p.a. (1.4.2021) 10,000
Wages 5,000
Commission 2,820
Creditors 30,650
Return Inwards and Outwards 5,000 10,000
Travelling Expenses 550
Purchases 1,90,000
Salaries 56,000
Sales 2,15,000
Factory Rent 2,810
Carriage inwards 510
Insurance 600
Cash 9750
Repairs 1,700
Interest on Loan 500
Discount 2,000 1,300
Bad Debts 1,800
Furniture 4,400
The following adjustments are to be made:
1. Closing stock in the shop on 31st March 2022 had a market value of ₹ 64,400 and the
value in the books appeared at ₹ 64,480.
2. Wages include ₹ 600 for the erection of new machinery in the factory.
3. ½ of the amount due from Bindu is irrecoverable.
4. Create a provision of 10% on other debtors.
5. Depreciate machinery and Furniture by 10%.