19.

34 Double Entry Book

2. Determine Gross Profit from the following:
Sales
Keeping-ISC
Kesn

20,000 Carriage on
Opening Stock 18,000 Office Rent
Closing Stock 85,000 Sales
Purchases 2,300 SR
Carriage on Purchases
Trading Account
ror tne year ended 31st A0T
3. From the following information, prepare
40,000 Returns Outward
Stock on 1st April, 2021 Salaries
4,00,000 Wages and
Purchases 3,80,000 ReturnsInward
Sales 20,000 Stock on 31st March, 202
Carriage Inwards
31st March, 2022 was 1,20,000
Net Realisable Value or
Market Value ofstock as on

Account for the year ended 31cti

prepare Trading Mar
50,400; Freinhch,202).2:
information,
4. From the following Closing Stock
Sales 7,44,000;
Adjusted Purchases 6,60,000;

3,600; Wages6,000;
Freight
Outwards
and Cartage R2,000. Carriage Iowatk
Account
Preparation of
Profit & Loss
information, prepare
Profit& Loss
Account
ofSohan for the vear. nded on 31st
5. From the following
March,
3,000 Advertising 2072
Salaries and Wages 200 Discount Allowed
Commission Paid
150 Rent Received
Postage 300 Interest on Investment
Insurance 400 Bad Debts
Interest Paid 500 Brokerage Paid \500
Carriage Outwards 900
amounted to R 65,000.
The Gross Profit was 45% of sales, which
31st March, 2022 from the followino te

Account for the year ended

6. Prepare Profit &Loss

12,00,000 DiscountReceived
Gross Profit
50,000 Printing and Stationery 60,000
Rent
3,50,000 Legal Charges 40,00
Salary 1,90,000 Bad Debts 1,000
Commission Paid
50,000 Loss by Fire 20,00
Interest on Loan
80,000 Depreciation 60,00
Advertisement Debts Recovered 40,000
Interest Received
80,000 Bad 100
Preparation of Balance Sheet at 31st March, 2022:
Balance Sheet as
7. From the following information, prepare Cr.:)
Dr.()
40,000
Capital 4,400
Drawings
Debtors 6,400 ***

4,200
Creditors
Cash in Hand 360
Cash at Bank 7,200
Plant 10,0
Furniture 3,700
Net Profit 1,660
1,000
General Reserve
Closing Stock 14,800
46,860 46,860
 Account.
Concept ofTrading 19.35

mation, prepare Balan Sheet of Amit as at

o w i n gi n f o r
31st March, 20222 arranging the assets
ofr rmanence; and (i)in order of a

andlabnnes-)
ROm
the
bilities-0
in
o r d e r

liquidity:
20,000 Bank
20,000
GOOdwill 1,80,000 Sundry Creditors
1,200 Bills Receivable 63,000
Capitas Expenses

1,000 Plant and

13,000
labiities

ash
fobr

i nHand
Machinery
20,000 Provision for 40,000
Doubtful Debts 2,500
nvestment 10,700 Closing Stock 80,000
BilsPayabe 92,600 Furniture
16,000
N eProñt
t 50,000 Drawings 30,000
SundiyDebtors
L a na
d nd
Building
60,000

tinalAccounts
w i h o uG
t S7

following
halances,
b. prepare Trading Account, Profit &Loss Account and Balance Sheet:
the
Debit Balances (Contd.)
g
D e b iB
F o
t alances:
m

35,000 Rent 4,500

Machinery 27,000 Sundry Expenses 2,000
Debtors 9,000 Carriage 1,500
Drawings 95,000 Credit Balances:
Purchases 50,000 Capital A/c 1,00,000
W a g e s
15,000 Creditors 14,000
B a n k

OpeningStock
20,000 Sales 1,45,000
s i n gS t o c k w a s
valued at 3,000.
are Trading Account,
unt, Profit & Loss Account and Balance Sheet of Jagat as at 31st March, 2022 from the
1 0 P r e p a r e

f o l l o w i n g b a l a n c e s :

Capital(Cr)
3,60,000 Salaries 60,000
70,000 General Expenses 20,000
Machinery
8,20,000 Rent 50,000
Sales
Purchases
4,00,000 Purchases Return 5,000
Sales Return
10,000 Debtors 3,00,000
2021 1,00,000 Cash 40,000
Stock on 1stApril,
40,000 Cariage Outwards 20,000
Drawings
1,00,000 Advertising 20,000
Wages
Carriage Inwards 5,000 Creditors 50,000
was valued at 2,00,000.
ClosingStock
Eallowing are the balances as on 31st March, 2022 extracted from the books of Bhagwan Dass:

Sales 9,20,000 Postage 6,200

Purchases 6,83,000 Miscellaneous Expenses 9,000
Returns Inward 13,000 Bad Debts 4,000
Returns Outward 22,000 Debtors 2,20,000
Stock 1,76,000 Creditors 1,28,000
Carriage Inwards 24,000 Loan-Mata Din (Cr) 50,000
Rent 22,000 Capital 5,25,000
Discount 37,500 Drawings 19,100
Printing 7,200 Business Premises 3,90,000
Insurance 5,000 Office Furniture 15,000
Travelling Expenses 14,000
Stock on 31st March, 2022 was valued at 7 240,000.
FrepareTrading Account, Profit& Loss Account and Balance Sheet as at 31st March, 2022.
19.36 Entry Book Double

12. From the from the books of Anand, prepare Tradin

Anar
Keep ng-
following balances extracted
ACCount, and Balance Sheet as at 31st
March, 2022:
Debit Balances (Contd.): Account
Credit Balances:
Capital
3,60,000 Postage
87,200 Bad Debts
Prot
Creditors 25,270 Interest
Bills Payable 7,81,820 Insurance
Sales 1,20,000 Machinery
Loan Stock (Opening)
Debit Balances: 38,850 Purchases
Debtors
40,000 Wages
Salaries
10,000 Building
Discount

31st March, 2022 was

Fixtures and Fittings
1,43,000.
62090
Value of goods
hand on
on
13. From the following balances, prepare Trading and Profit & Loss ACCount and Balan
Sheet: 16\550
Capital A/e 1,00,000 Returns Outward
40,000 Rent
Plant and Machinery
24,000 Sales
Sundry Debtors
Sundry Creditors 12,000 Manufacturing Expenses
Drawings 12,000 General Expenses
1,05,000 Bad Debts
164 0 0
Purchases
Wages 50,000Carriage Inwards 1500
Bank 10,000 Bills Payable
Opening Stock 20,000 Returns Inward \500
14,500.
Closing Stock on 31st March, 2022 was valued at
March, 2022 had the following balances:
4000
A4. Trial Balance of Chaman on 31st
Debit Balances: Debit Balances (Contd):
Plant and Machinery 90,000 Rent
Purchases 58,750 Advertisement
Sales Return 1,000 Cash at Bank 2,.000
40,000 Credit Balances: 3,200
Opening Stock
Discount Allowed 350 Capital 6,900
Bank Charges 75 Sales 1,10.000
Sundry Debtors 45,000 Purchases Return
6,800 Discount Received
1,27,000
Salaries 1,275
Wages 10,000 Sundry Creditors 800
Stock on 31st March, 2022 was valued at 35,000. Prepare Trading Account, Proft &Loss AccOunt25,f 000
year ended 31st March, 2022 and Balance Sheet as at that date. the
15. From the following Trial Balance and additional information of Gaurav, a proprietor, prepare Tnad.
Account, Profit& Loss Account for the year ended 31st March,2022 and Balance Sheet as at that date:
date:
Particulars Dr.) Cr.
Building ***********
*****************************7 ****

1,60,000
Wages 26,000
Machinery ********** 16,000
Salaries and Wages *********"***
41,600
Debtors 33,70
Capital 2,23,100
Purchases/Sales 56,500 1,00,700
Creditors ************************************
12,500
Income Tax ************* ************* ************************** 2,000
Drawings *************************************
* * * * * * * * * * * * * * * * * * * * * * * * *
500
3,36,300 3,36,300
Total

Closing Stock was valued at cost 1,00,000 but its net realisable value (market value) was K88,3
 Concept of Trading Account .

19.37

owingbalancesd
alances
aretaken Len from the books of Param, a
merchant on 31st March,
2022
olon
z b Balanc
i
7DebitBalances (Contd.:
6,400 Insurance
furiture
and
Fittina
ings
62,500 General Charges 12,500
MotorVehicles 75,900 Salaries 7,820
Buialng 1,250 Credit Balances: 33,000
Bad
Debts 38,000 Capital
SundyDelbtors 1,28,900
2021
2
34,600 Bills Payable
55,750 Sundry Creditors 2,000
A p r i l

1st

25,000
o n

Purchases
Stock
2,000 Sales
1,54,500
Sales
Returm
4,500 Bank Overdraft
Advertising 1,180 Purchases Return 28,500
250
nterest
CashinHland
6,500 Commission 1,750
on31st March, 2022 was valued at 32,500. From the above,
1ct March,
Stocki nH a n

for the year ended 31st March, 2022 and

prepare Trading Account,
Account
Balance Sheet as at that date.
Loss
&
poft g
F o l l o w i n g
balances were
b a l a n c e s
extracted from the books of larish on 31st March, 2022:

2,45,000 Loan 78,800

20,000 Sales
6,53,600
Capital

Drawings
General
Expenses
25,000 Purchases 4,70,000
1,10,000 Motor Car 20,000
B u i l d i n g

93,400 Beserve 9,000

Machinery
1,62,000 Commission (Cr) 13,200
S t o c k

22,400 Car Expenses 18,000

Power

nsurance
13,150 Bills Payable 38,500
72,000 Cash 800
Wages
62,800 Bank Overdraft 33,000
Debtors

25,000 Charity 1,050

Creditors

BadDebts
5,500
valued at 2,35,000.
k on 31st March, 2022
was
Stock o
for the year ended 31st March, 2022.
Prepare
Final Accounts

With GST

a Pepre Trial Balance, Trading Account, Proft & Loss Account for the year ended 31st March, 2022 and
alance Sheet of the Premier Traders as at that date, from the following extracts of Ledger balances:

Proprietors Capital A/c 1,19,400 Proprietor's Drawings A/c 10,550

Blls Receivable 9,500 Plant and Machinery 28,800
Wages 40,970 Salaries 14,370
Sundry Debtors 62,000 Sundry Creditors 60,830
Bank Loan 20,000 Returns Inward 2,780
Purchases 2,56,590 Sales 3,56,430
Commission Received 5,640 Discount Allowed 5,870
Rent 5,620 Stock on 1st April, 2021 89,680
Travelling Expenses 1,880 Insurance 400
Cash 530 Bank(DebitBalance) 18,970
Furniture 8,970 Bad Debts 3,620
Input CGST 5,100 Output CGST 4,500
Input SGST 5,100 Output SGST 4,500
Stockin Hand on 31st March, 2022 was valued at cost as 1,28,960.
19. From the Double Entry
31st March,following Trial Balance,
2022 and Balance Sheetprepare Trading Account, Profit Book
Particulars
bundry Debtors
Stock on 1st
April, 2021
as at that

********************
***************** s.
date: Loss
Account forot
Dr. )
Keeping-1se
he
the y
year
C
Land and Building *********************
********************
ento
Capital 15,000
Rent ***********************
******************************a 50,000
Cash in Hand
Cash at Bank
***** *******

*************
***********************************************
nssassss********.**************************"****
1,00,000 **

*************
ssee

Wages
**
************************sss s
**************************************sss
Sundry Creditors
*****************
**********************************e***************************e.
****

16,000
Bills Receivable *** sts*s*****s********************************** ************
*****

40,000
Interest ***********************************************************************************
**********************
**

30,000
**

Bad Debts *************************************"**************

************************
Repairs
***
************************************************* *** ********************. 20,000
Sales
**************************************************
* * * * * * * * * * * * * * * * * * * * * *
2,000
Bills Payable *************.
***************"**********************
****

5,000
Furniture and Fixtures
*******.

*******************************"**" * **********************m
*****

***
3,000
Depreciation ****************************************************************************************** "

*****************************************************
Discount *********
*****************************************s*
15,000 40 000
Salaries *****************"*******"******************* *.
************** 10,000
Drawings ********************************************************************************************************** 8,000
Purchases ***********************************************************""*** ******* ********"********
20,000 *

Office Expenses *************************************************************"************ ****"****************** 20,000

Plant and Machinery
*************************
*********** 1,00,000 **

Input CGST A/c

**** ***

*************************************"*************************** *
25,000
Input SGST AVc ******************************************************************"*** ********"************* 57.000
Output CGST A/c
**************
***************************************s** 15,000
Output SGST A/c ********************************************************************************"****************** 15,000 **

Output IGST A/c *****************************************************"*********************************

************************************* *******************************************************************
**
10,00
Total ** 10,00
5,66,000 5,00
On 31st March, 2022, stock
was valued at cost as
1,20,000. Its net realisable value (market
5,66,0
[Hint: Closing stock will be shown at value) was?
1,00,000 being lower of cost and net realisable 1,00,00
value (matket vala
20: From the following Trial
Balance,
31st March, 2022 and Balance Sheetprepare Trading Account, Profit & Loss Account for the
value}
as at that date: year endad
Particulars
Capital Dr.R) Cr.
***************************************************************************
Plant and Machineryy **

5,00,000
********************************************************************************************* 1,00,000
Land and Building
*************************************************************************"**************" 1,20,000
Sales
************************************************************************************** 9,00,000
Furniture and Fixtures
******************************************************************************************" 50,000
Trade Expenses * * * * * * * * * * * * * * * * * * * * " * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
*

30,000
Cash at Bank
******************************s*******u************************************** 2,50,000
Wages and Salaries
******************************************************************************************** 60,000
Repairs ****************************************************************************************** 10,000
Purchases 6,00,000
********************************************************************************************
 of TradingAccount, 19.39
andConcept
addanus I

2,00,000
**********"************************* s

****************************************** s ********************************

1,00,000
*****************************
********************"***************** 1,20,000
ndyDebtos ****************************
10,000
gndyrecitors
* *********************************

see** **********************************************
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 2

**
12,000
pAhaseshetun
*******************************"***************** 8,000
*********************************** * *******************
10,000
****************** ***** ***************************************************
40,000 30,000
Receivable/Bls
Payabla
e
amwrps *************************************
***************************************************** ss 4,000 **

*********"**************************** **************************** 10,000

*********************************************
****************************************************** 10,000 ***

Merest .. *********************************ssn***************
10,000
npuCt65TA
****************************************
************************** s 5,000
puSt
GSTA
*********"******************"*******************ne
*******"*** **
5,000
nput
GTAc
******************************************************u 5,000
a u p uC
t GSTA

a u p u lSGST
t AAc
************************
****
**** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * " * * * * * * * * * *
**
15,000
autput
IGST
Ac 16,07,000 16,07,000

was valued at 1,40,000.

+March, 2022
T o l a l

Stck
on
Advanced
Level
Questions
Questions

treated as income and vice versa on the Financial Statements?

the
fiect
effect of liabilities being
is Sheet for the year ended 31st March, 2022'?
head the Balance
the Bal as
orrect to head
hat
correct

it not
Why is

San QR Code for Additional Practical Problems

GUIDE TO ANSWERS
Objective Type Questions

correct
alternative:
Solect the
(v) b; (vi) (b); (vi) (c; (vii) (d); (ix) (c; (0) (c).
alc:(0 al; Gi) Cb); Giv) (b);
Questions
Short Answer Type
17. Closing Stock-{6,100; Cost of Goods Sold- 9,000.
18 Gross Profit-{ 20,000; Cost of Goods Sold- 80,000.
19.Cost of Goods Sold-35,000.
20. Profit-R 25,000.
21. Net Profit-716,300.
22 Gross Profit-8,000.

3. Closing Stock-R 23,000.

24.
Opening Stock-7 28,000.