Jaju’s Professional Academy

CA Foundation
Marks:30 Final Accounts Time: 1 hr 30 mins

Question 1:
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The following is the Trial Balance of Sh. Siya Ram as at 31 March, 2020. Prepare Trading and Profit and Loss
Account and Balance Sheet from the same :- (15 marks)
Dr. Balances Rs. Cr. Balances Rs.
Materials Purchased 1,15,725 Sales 2,10,000
Administration Expenses 16, 725 Outstanding wages 800
Wages 42,775 Creditors 39,535
Freight 5,100 Capital 81,800
Rent 3,100 Bank 12,220
Petty Cash 175 Loan on Mortgage @ 12% 16,000
Debtors 36,400 Income from Investments 925
Gift to Wife 2,500
Prize Distributed 200
Commission Paid 1,000
Commission Paid in Advance 400
Mortgage Interest 1,600
Loose Tools 5,000
Investments @ 5% 8,500
Plant 60,000
Furniture 7,200
Leasehold Property 50,000
Patents 2,000
Depreciation on Furniture 800
Suspense Account 2,080
3,61,280 3,61,280
Adjustments :-
1) Closing Stock amounted to Rs. 80,000.
2) Depreciate all assets @ 20% except furniture
3) Make a provision for Doubtful Debts at 5% on debtors.
4) 1/5th of Loose Tools are to be written off this year.
5) General Manager is to be allowed a Commission of 5% on Net Profit after charging his Commission.
6) Works Manager is to be allowed a Commission of 10% on Net Profit before charging his Commission and
General Manager’s Commission.
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7) Purchases include a Computer costing Rs. 3,000 purchased on 01 October 2018
8) Purchase returns of Rs. 2,000 recorded in Sales and Sales Returns Rs. 5,000 recorded in purchases
9) Unrecorded Sales Rs. 1,50,000 and unrecorded purchases Rs. 10000
Question 2:
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Prepare Manufacturing, Trading and Profit and Loss account for the years ended on 31 December, 2005 and
Balance Sheet as at that date of Shri S. Singh. manufacturers, from the following Trial Balance & information.
(15 marks)
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Trial Balance as at 31 December, 2005
Account Head Dr. (Rs.) Cr. (Rs.)
Advertising 1,660
Bad debts 1,210
Bad debts provision 2,000
Bank charges 240
Capital A/c of S. Singh 70,000
Current A/c of S. Singh 3,246
Drawing A/c of S. Singh 16,000
Discount 824
Factory Power 7,228
Furniture 1,800
General expense-factory 410
General expense-office 692
Insurance 1,804
Light & Heat 964
Plant & Machinery 1-1-1998 30,000
Plant & Machinery bought 30-6-98 4,000
Purchases 67,336
Packing and Transport 2,170
Rent and rates 2,972
Repairs to plant 1,570
Salaries – office 7,380
Sales 1,58,348
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Stock, 1 Jan. 1998:
a) Raw materials 10,460
b) Finished goods 14,760
c) Work-in-progress 3,340
Wages – Factory 41,400
Debtors 21,120
Creditors 12,300
Cash-at-bank 7,852
Cash-in-hand 350
Total 2,46,718 2,46,718
Additional Information;
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1) Stock at 31 December, 1998 were: Rs.
Raw-materials 7,120; Work-in-progress 3,480; Finished goods 19,300; Packing materials 250
2) The following liabilities are to be provided for:
Factory power 1,124; Rent & Rates 772; Light & Heat 320; General Expenses – Factory 50
General expenses – Office 80
3) Insurance prepaid 340
4) Provide depreciation at 10% p.a. on Plant and machinery and 5% p.a. on furniture.
5) Increases Bad debts provision by Rs.1,000.
6) Five sixth of Rates, Light & Heat, and Insurance are to be allocated to the Factory and one sixth to the
office