WORKSHEET – FINANCIAL STATEMENTS

1. Calculate Cost of Goods Sold and Closing Stock from the following information : Sales ₹5,40,000; Sales
Returns ₹16,000; Gross Profit ₹ 1,20,000; Opening Stock ₹20,000; Purchases ₹4,00,000; Purchase
Returns ₹4,000; Carriage Inward ₹ 15,000.
[Ans. COGS ₹ 4,04,000; Closing Stock ₹ 27,000
2. In a burglary at the godown of Harshitaj Traders on the night of 14th July, 2022, part of the stock was
stolen. From the following particulars, find out the estimated value of loss of stock by theft:
Stock on 1st April, 2022 ₹ 60,000
Purchases from 1st April to 14th July, 2022 ₹ 4,10,000
Sales from 1st April to 14th July, 2022 ₹ 6,00,000
Stock remaining after burglary ₹ 12,000
The normal rate of gross profit for his business is 30% of selling price.
[Ans. Loss by theft ₹ 38,000]
3. Calculate closing stock from the following details :
₹
Opening Stock 20,000
Cash Sales 60,000
Credit Sales 40,000
Purchase 70,000
Rate of Gross profit on cost %. [Ans. ₹ 15,000]
4. From the following information, prepare the Trading Account for the year ended 31st March, 2022 :
Adjusted Purchases ₹ 15,00,000; Sales ₹21,40,000; Returns Inwards ₹40,000; Freight and Packing
₹ 15,000; Packing Expenses on Sales ₹20,000; Depreciation ₹36,000; Factory Expenses
₹60,000; Closing Stock ₹1,20,000. [Ans. Gross Profit ₹5,25,000]
5. Calculate cost of goods sold from the following :
₹ ₹

Opening Stock 40,000 Wages & Salaries 10,000

Net Purchases 50,000 Rent Paid 15,000

Net Sales 1,90,000 Closing Stock 15,000

[Ans. Cost of Goods Sold ₹ 85,000]

6. Ascertain cost of Goods Sold and Gross Profit from the following : ₹
Opening Stock 32,000
Purchases 2,80,000
Direct Expenses 20,000
Indirect Expenses 45,000
Closing Stock 50,000
Sales 4,00,000
Sales Returns 8,000
[Ans. Cost of goods sold ₹2,82,000; Gross Profit ₹ 1,10,000.]
7. !Calculate Gross Profit on the basis of the following information :
Purchases 6,80,000
Return Outwards 30,000
Carriage Inwards 20,000
Carriage Outwards 15,000

Wages 50,000
3/4 of the goods are sold for ₹6,00,000. Ans. Gross Profit ₹60,000.
8 Ascertain the value of dosing stock from the following :
₹
Opening Stock 1,20,000
Purchases during the year 9,30,000
Sales during the year 15,60,000
Rate of Gross Profit 40% on Sales
[Ans. Closing Stock ₹ 1,14,000.]
9. Calculate closing stock from the following details :
₹
Opening Stock 4,80,000
Purchase 13,60,000
Sales 19,50,000
G.P. is 30% on Cost.
[Ans. Closing Stock ₹3,40,000]
10. Following is the extract of Trial Balance as on 31st March, 2023:
Particulars Dr.(₹) Cr.(₹)

Debtors 1,04,000
Bad Debts 3,000
Additional Information: One of the debtors who owed us ₹ 4,000 became insolvent and nothing could
be recovered. Show the relevant extract from the Profit and Loss Account and the Balance Sheet.
11. Following is the extract of Trial Balance as on 31st March, 2023:
Particulars Dr. (₹) Cr.(₹)

Debtors 1,23,000
Bad Debts 2,000
Provision for Doubtful Debts 4,000
Additional Information: Further Bad Debts amounted to ₹ 3,000. Create provision for doubtful debts @
10% on Debtor. Show the relevant extract from the Profit and Loss Account and the Balance Sheet.
12. Following is the extract of Trial Balance as on 31st March, 2023:
Particulars Dr.(₹) Cr.(₹)
 Debtors 2,06,000
Bad Debts 5,000
Provision for Doubtful Debts 7,000
Additional Information:
(a) An amount of ₹ 6,000 due from a party, the recovery of which was doubtful before compilation
of the Trial Balance, thereafter proved to be a bad debt and required to be written off.
(b) Create provision for doubtful debts @ 10% on Debtor
(c) Create provision for discount on debtors @ 5% on Debtor
Show the relevant extract from the Profit and Loss Account and the Balance Sheet.
13. Extract of a Trial Balance as at March 31, 2022 is as follows :
Sundry Debtors ₹ 1,02,000
Bad Debts ₹ 1,400
Provision for doubtful debt ₹3,400
Additional information :
A debtor of ₹2,000 could not be recovered. It is decided to maintain Provision for Doubtful Debtors @
5% on Debtors and Provision for Discount at @ 2%.
How these adjustments will be shown in Financial Statements?
14.The following balances are extracted from the books of the Chandigarh Medical Store for the year
ending 31st March, 2022:

Prepare Trading and Profit and Loss Account and Balance Sheet as on 31st March, 2022 after considering
the following adjustments:
(i) Closing stock was valued at ₹ 95,000.
 NEW ERA PUBLIC SCHOOL, SECTOR – 25, DWARKA !

(ii) Salaries outstanding are ₹ 7,000.

(iii) Prepaid insurance is ₹ 1,500.
(iv) Stationery bill outstanding is ₹ 1,200.
(Gross Profit = ₹ 1,76,000; Net Profit = ₹ 55,300; Balance Sheet Total = ₹ 3,34,500)
15.Given below is the Trial Balance of Mr. Mango as on 31st March, 2022:
Particulars Dr. (₹ ) Cr.(₹)

Opening Stock 5,000

Purchases 25,000

Sales 40,000

Wages 4,000

Carriage Inwards 300

Carriage Outwards 200

Cash in Hand 400

Cash at Bank 7,600

Salaries 2,400

Rent Paid 1,200

Insurance 600

Discount Allowed 100

Furniture 10,000

Sundry Debtors 5,000

Sundry Creditors 4,000

Printing and Stationery 500

Office Expenses 1,000

Capital 20,000

Drawings 700

64,000 64,000
Adjustments:
(i) Closing Stock ₹ 6,000
(ii) Outstanding salaries ₹ 400
(iii) Prepaid expenses ₹ 100
(iv) Depreciate furniture by 10%

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 NEW ERA PUBLIC SCHOOL, SECTOR – 25, DWARKA !

Prepare Trading account and Profit and Loss Account for the year ending 31st March, 2023 and a
Balance Sheet as on that date.
(Gross Profit = ₹ 11,700; Net Profit = ₹ 4,400; Balance Sheet Total = ₹ 28,100)

16.The Trial Balance of Kajaria Tiles Pvt. Ltd. on 31st March, 2022 revealed the following balances:

Taking into consideration the following adjustments, prepare Trading and Profit and Loss Account for
the year ended 31st March, 2022 and the Balance Sheet as on that date, (i) Stock on hand as on 31s'
March, 2015, ₹ 28,000.
(ii) Salaries Outstanding ₹ 2,000.
(iii) Provide depreciation on Plant @ 10% p.a., on Building @ 5% p.a.
(iv) Write off ₹ 2,000 as depreciation on Furniture.
(Gross Profit = ₹ 84,000; Net Profit = ₹ 55,700; Balance Sheet Total = ₹ 1,61,500)
17 From the following Trial Balance of Daljit Dosanj, prepare a Trading and Profit and Loss Account for
the year ended 31st March, 2022, and a Balance Sheet as on that date:
Debit Balances Amt.(₹) Credit Balances Amt. (₹)

Opening Stock 20,000 Sales 2,70,000

Purchases 80,000 Purchases Return 4,000

Sales Return 6,000 Discount 5,200

Carriage Inward 3,600 Sundry Creditors 25,000

Carriage Outward 800 Bills Payable 1,800

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 NEW ERA PUBLIC SCHOOL, SECTOR – 25, DWARKA !

Wages 42,000 Capital 75,000

Salaries 27,500

Plant and Machinery 90,000

Furniture 8,000

Sundry Debtors 52,000

Bills Receivable 2,500

Cash in Hand 6,300

Travelling Expenses 3,700

Lighting (Factory) 1,400

Rent and Taxes 7,200

General Expenses 10,500

Insurance 1,500

Drawings 18,000

3,81,000 3,81,000
Adjustments:
(i) Stock on 31st March, 2022 was valued at ₹ 24,000 (Market Value ₹ 30.000).
(ii) Wages outstanding for March, 2022 amounted to ₹ 3,000.
(iii) Salaries outstanding for March, 2022 amounted to ₹ 2,500.
(iv) Prepaid insurance amounted to ₹ 300.
(v) Provide depreciation on Plant and Machinery at 5% and on Furniture at 20%.
(Gross Profit = ₹1,42,000; Net Profit = ₹87,700; B/S Total = ₹ 177,000)
18.From the following Trial Balance prepare Trading Profit and Loss Account for the year ended 31st
March, 2023 and Balance Sheet as on that date:

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 NEW ERA PUBLIC SCHOOL, SECTOR – 25, DWARKA !

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 Furniture 7,000

1,99,600 1,99,600
Adjustments:
(a) Insurance prepaid ₹ 200, Outstanding salaries ₹ 600 and Outstanding wages ₹
1,500;
(b) Create a provision for doubtful debts at 3% on debtors; (c) Provide 10%
depreciation on machinery and 5% on furniture; (d) Closing stock was valued
at ₹ 10,000.
(Gross Profit = ₹ 38,000; Net Profit = ₹ 19,900; Balance Sheet Total = ₹ 88,200)
19.The following balances were extracted from the books of RRR as on 31st March, 2023:
Particulars Amt.(₹) Particulars Amt.(₹)

Capital 24,500 Bad Debts 550

Drawings 2,000 Loan 7,880

General Expenses 2,500 Sales 65,360

Building 9,000 Purchases 47,000

Machinery 9,340 Scooter 2,000

Stock 16,200 Bad Debts, Provision 900

Power 2,240 Commission (Cr.) 1,320

Taxes and Insurance 1,315 Salaries 1,800

Wages 7,200 Bills Payable 3,850

Debtors 6,280 Cash 2,080

Creditors 2,500 Bank Overdraft 3,300

Repairs 105
Prepare final accounts for the year ended 31st March, 2023 after giving effect to the
following adjustments:
(c) Stock on 31st March, 2014 was valued at ₹ 23,500.
(d) Write off ₹160 as further bad Debts and maintain provision for Bad Debts at 5%
on debtor (c) Depreciate machinery at 10% and scooter 12%.
(d) Provide ₹750 for outstanding interest on overdraft.
(Gross Profit = ₹ 16,220; Net Profit = ₹ 9,780; Balance Sheet Total = ₹
50,560)
20.From the following balances and additional information, you are required to prepare
Trading and Profit and Loss Account and Balance Sheet on 31st March, 2023.

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 Debit Balances Amt.(₹) Credit Balances Amt.(₹)
Machinery 4,000 Capital 9,450
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 (1-4-2022) 6,000
Sundry Debtors 4,400
Bill Receivable 2,900
Rent 900
Commission 250
General Expenses 800
Salaries 500
30,250 30,250
Additional Information:
(a) Stock on 30th June, 2023 ₹ 8,000.
(b) Wages outstanding amounting to ` 50.
(c) Rent prepaid` 100.
(d) Depreciate machinery at 10% p.a.
(Gross Profit = ₹ 8,950; Net Profit = ₹ 6,500; Balance Sheet Total = ₹ 20,500)
21.From the following Trial Balance of Reebok Stores, prepare Trading and Profit and Loss
Account for the year ended 31st December, 2023 and Balance Sheet as on that date:
Particulars Dr. (₹) Cr.(₹)

Capital 1,76,000

Drawings 15,700

Building 2,00,000

Purchases and Sales 3,10,000 5,20,000

Returns 3,000 2,000

Rent Received 6,700

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 Carriage 8,600

Wages 24,000

Salaries 37,000

Apprentice Premium 10,000

Insurance 2,000

Audit Fees 1,500

Cash in Hand 10,000

Cash at Bank 30,000

Bank Loan 20,000

Interest on Loan 1,800

Debtors and Creditors 1,00,000 40,500

Bills Receivable and Bills Payable 5,000 7,500

Printing and Advertising 4,500

Commission 2,000

Opening Stock 31,600

7,84,700 7,84,700
Adjustments:
(e) Stock at the end ₹ 40,500.
(f) Depreciate Building by 10%.
(g) Wages due but not paid ₹ 2,000.
(h) Commission earned but not received amounted to ₹ 300.
(i) Apprentice Premium received in advance ₹ 1,000.
(j) Interest on Bank Loan @ 12% p.a. is unpaid for the last 3 months.
(Gross Profit = ₹ 1,83,300; Net Profit = ₹1,33,900; Balance Sheet Total = ₹
3,65,800)
22. The following are the balances extracted from the books of Raghunath Ji as on 31st
March, 2022. From these balances, prepare his Trading and Profit & Loss Account and
Balance Sheet :
Dr.(₹) Cr.(₹)
Opening Stock 12,000

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 Purchases 40,000

Sales 86,000
Discount 400
Sales Return 6,000
Buildings 50,000
Debtors 16,000
Salaries 2,400
Office Expenses 1,200
Wages 10,000
Purchase Return 4,000
Interest 800
Travelling Expenses 400
Fire Insurance Premium 800
Machinery 20,000
Carriage on Purchases 700
Commission 400

Cash in hand 2,300

Rent and Taxes 1,800
Capital 62,000
Creditors 10,800

1,64,000 1,64,000
Adjustments
1. Closing Stock was valued at ₹ 16,000,
2. Wages ₹2,000 and salaries ₹ 1,200 are outstanding.
3. Rent for two months at the rate of ₹500 per month is outstanding.
4. Depreciate Buildings by 5% and machinery by 10%.
5. Prepaid Insurance ₹200.
[Ans. G.P. ₹35,300; N.P. ₹23,000 and B/S Total ₹
1,00,000.]