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Income Statement & Balance Sheet Practice

The document contains 22 questions providing trial balance information for various businesses. Students are asked to prepare income statements, trading accounts, and balance sheets from the trial balance information to practice basic accounting concepts. The questions cover accounting for sole proprietorships and corporations after the first year of operations or for a specified time period. Financial statements are to be prepared from the trial balance data for educational purposes.

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Jahanzaib Butt
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13K views12 pages

Income Statement & Balance Sheet Practice

The document contains 22 questions providing trial balance information for various businesses. Students are asked to prepare income statements, trading accounts, and balance sheets from the trial balance information to practice basic accounting concepts. The questions cover accounting for sole proprietorships and corporations after the first year of operations or for a specified time period. Financial statements are to be prepared from the trial balance data for educational purposes.

Uploaded by

Jahanzaib Butt
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
  • Introduction: The document begins with an introduction to basic trading, profit and loss accounts, and balance sheet practice questions.
  • Question 1 to 2: Contains the first two practice questions involving trial balance and financial statements preparation.
  • Question 3 to 4: Continues with additional practice questions focused on trial balances and final accounts.
  • Question 5 to 6: Exercises related to starting a business and interpreting trading data are presented in this section.
  • Question 7 to 9: More complex scenarios involving stock accounting and balance sheet creation.
  • Question 10 to 11: Further questions covering year-end trading accounts and adjustments for closing stock.
  • Question 12 to 13: Focuses on ledger balances and monthly trading account preparation.
  • Question 14 to 15: Includes questions on balancing with initial business positions and subsequent transactions.
  • Question 16: Detailed problem involving trial balance and adjustments for a specific period.
  • Question 18: A specific exercise on profit and loss account preparation and balance sheet arrangement.
  • Question 20: Task to prepare a trading balance using provided extracted details.
  • Question 22: Concludes with a question on generating a complete profit and loss account and balance sheet.

Commerce Department Baghdad Campus IUB

Page | 1

Basic Trading P & L a/c &


Balance Sheet Practice
Questions

From the desk of Jahanzaib Butt


Commerce Department Baghdad Campus IUB

Q#01: From the following trial balance of A Moore, extracted after one year’s trading, prepare a
trading and profit and loss account and Balance Sheet for the year ended 31 December 20X6.
Page | 2

Q#02: From the following trial balance of B Lane after his first year’s trading, you are required
to draw up a Income Statement and Balance Sheet for the year ended 30 June 20X8

From the desk of Jahanzaib Butt


Commerce Department Baghdad Campus IUB
Q#03: From the following trial balance of B Morse drawn up on conclusion of his first year in
business, draw up a trading and profit and loss account and balance sheet for the year ended 31
December 20X8.

Page | 3

Q#04: Extract Income Statement and Balance Sheet for the year ended 30 June 20X8 for G
Graham. The trial balance as at 30 June 20X8 after his first year of trading was as follows:

From the desk of Jahanzaib Butt


Commerce Department Baghdad Campus IUB
Q#05: G. Hope started in business on 1 July 20X0, with £40,000 capital in cash. During the first
year he kept very few records of his transactions.
The assets and liabilities of the business at 30 June 20X1 were:

Page | 4

Q#06: The following information relates to A Trader’s business:

Q#07: From the following information, draw up the trading account of J Bell for the year ended
31 December 20X7, which was his first year in business:

From the desk of Jahanzaib Butt


Commerce Department Baghdad Campus IUB
Q#08: The following information is available for the year ended 31 March 20X8. Draw up the
trading account of P Frank for that year.

Page | 5

Q#09:From the following trial balance of G Still, draw up a trading and profit and loss account
for the year ended 30 September 20X9, and a balance sheet as at that date.

From the desk of Jahanzaib Butt


Commerce Department Baghdad Campus IUB
Q#10:The following trial balance was extracted from the books of F Sorley on 30 April 20X7.
From it, and the note about stock, prepare his Income Statement for the year ended 30 April
20X7, and a balance sheet as at that date.

Page | 6

Q#11:The following is the trial balance of T Owen as at 31 March 20X9. Draw up a set of
financial
statements for the year ended 31 March 20X9.

From the desk of Jahanzaib Butt


Commerce Department Baghdad Campus IUB
Q#12:F Brown drew up the following trial balance as at 30 September 20X8. You are to draft
the trading and profit and loss account for the year ended 30 September 20X8 and a balance
sheet as at that date.

Page | 7

Q#13:Enter the following transactions in the ledger of A Baker and prepare a trial balance at 31
May, together with a calculation of the profit for the month and a balance sheet at 31 May.

From the desk of Jahanzaib Butt


Commerce Department Baghdad Campus IUB
Q#14:Ms Porter’s business position at 1 July was as follows:

Page | 8

Q#15:From the following trial balance of Kingfire, extracted after one year of operations,
prepare a Income Statement for the year ending 30 June 20X3, together with a balance sheet as at
that date.

From the desk of Jahanzaib Butt


Commerce Department Baghdad Campus IUB
Q#16:

Page | 9

Q#17:

From the desk of Jahanzaib Butt


Commerce Department Baghdad Campus IUB
Q#18: Prepare P & L a/c and Balance Sheet

Page | 10

Q#19:

From the desk of Jahanzaib Butt


Commerce Department Baghdad Campus IUB
Q#20:

Page | 11

Q#21:

From the desk of Jahanzaib Butt


Commerce Department Baghdad Campus IUB
Q#22:

Page | 12

From the desk of Jahanzaib Butt

Page | 1 Commerce Department Baghdad Campus IUB Basic Trading P & L a/c & Balance Sheet Practice Questions From the desk of J
Page | 2 Commerce Department Baghdad Campus IUB Q#01: From the following trial balance of A Moore, extracted after one year’s
Page | 3 Commerce Department Baghdad Campus IUB Q#03: From the following trial balance of B Morse drawn up on conclusion of h
Page | 4 Commerce Department Baghdad Campus IUB Q#05: G. Hope started in business on 1 July 20X0, with £40,000 capital in cas
Page | 5 Commerce Department Baghdad Campus IUB Q#08: The following information is available for the year ended 31 March 20X8
Page | 6 Commerce Department Baghdad Campus IUB Q#10:The following trial balance was extracted from the books of F Sorley on
Page | 7 Commerce Department Baghdad Campus IUB Q#12:F Brown drew up the following trial balance as at 30 September 20X8. You
Page | 8 Commerce Department Baghdad Campus IUB Q#14:Ms Porter’s business position at 1 July was as follows: Q#15:From the fo
Page | 9 Commerce Department Baghdad Campus IUB Q#16: Q#17: From the desk of Jahanzaib Butt
Page | 10 Commerce Department Baghdad Campus IUB Q#18: Prepare P & L a/c and Balance Sheet Q#19: From the desk of Jahanzaib

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