FINAL ACCOUNTS - ASSIGNMENT

1. From the following figures extracted from the books of Mr.Y you are required to prepare a Trading
and Profit and loss account for the year ended 31.03.2018 and the Balance Sheet as on that date
after making necessary adjustments:

Debit Amount Credit Amount

Purchases 69,92,000 Sales 74,00,000
Wages 9000 Capital 4,85,000
Salary 3000 Discount earned 5,800
Carriage inward 4000 Creditors 2,00,000
Carriage Outward 5000 Dividends Received 2250
Lighting (office) 6000 Outstanding wages as on
Rates and Insurance (including 1.4.2017 750
Premium of Rs.300 p.a paid Salary Outstanding as on
up to 30.09.2018 4000 1.4.2017 200
Stock at 31.03.2018 6,12,500
Cash in Hand and at bank 17,500
Building 3,00,000
Discount Allowed 1000
Debtors 60,000
Furniture 80,000

8,09,4000 8,09,4000
Additional Information:-
a) Salary includes Prepaid as on 31.03.2018 amount Rs.500.
b) Wages outstanding as on 31.03.2018 Rs.1000
c) Sales as shown in the Trail balance includes sale of old furniture (Sold on 30.09.2017) realizing
Rs.2000.The Book value of Furniture sold was Rs.3,000 as on 1.4.2017.
d) Depreciation to be written of Furniture 20% and Building 5%.
e) The manager is to get a commission of 20% on Net Profit after charging such commission.(15
Marks)

2. From the following particulars extracted from the books of Rajesh, Prepare Trading and Profit and
Loss account and Balance sheet as on 31.03.2018 after making necessary adjustment.
Particulars Amount Amount
Capital Account (Cr.) 54,050 Interest Received 725
Opening Stock 23,400 Cash with Trader Bank Ltd. 4,000
Sales 1,44,800 Discount Received 1,495
Sales Returns 4,300 Investment @5% as on 1.4.2017 2,500
Purchases 1,21,550 Furniture as on 1.4.2017 900
Purchase Returns 2,900 Discount allowed 3,770
Carriage Inwards 9,300 General expenses 1,960
Rent 2,850 Audit Fees 350
Salaries 4,650 Fire Insurance Premium 300
Sundry Debtors 12,000 Travelling Expenses 1,165
Sundry Creditors 7,400 Postage and Telegrams 435
Loan from Dena Bank Ltd.@ 12% 10,000 Cash in Hand 190
Interest Paid 450 Deposit at 10% as on 1.4.2017 (Dr.) 15,000
Printing and Stationery 1,700 Drawings 5,000
Advertisement 5,600
Additional Information:-
a) Value of stock as on 31.03.2018 is Rs.39,300 this includes goods returned by customers as on
31.03.2018 to the value of Rs.1,500 for which no entry has been passed in the books.
b) Purchases include furniture purchased on 1.01.2018 for Rs.1000.
c) Depreciation should be provided on furniture at 10% per annum.

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d) The loan from Dena Bank in the books of Rajesh appear as follows:
31.03.2018 To Balance C/d 10000 1.4.2017 By Balance 5,000
31.12.2017 By Bank 5,000

Total 10,000 Total 10,000

e) Sundry Debtors include Rs.2,000 due from X and Sundry creditors include Rs.1000 due to him.
f) Interest paid includes Rs.300 to Dena Bank.
g) Interest received represents Rs100 from the Sundry Debtors and the balance on investments and
deposits.
h) Provide for interest payable to Deena bank and for interest receivable on investment and deposits.
i) Provide for doubtful debts 5% on the balance under sundry debtors.(15 Marks)

3. From the following figures extracted from the books of Mr.X you are required to prepare a Trading
and Profit and loss account for the year ended 31.03.2018 and the Balance Sheet as on that date
after making necessary adjustments:
Particulars Amount Particulars Amount
Plant and Machinery 19,550 Salaries 22,550
Furniture and Fittings 10,250 Salaries Payable 2,450
Bank Over draft 80,000 Pre Paid Rent 300
Capital account 65,000 Rent 4,300
Drawings 8,000 Carriage Inwards 1,125
Purchases 1,60,000 Carriage Outwards 1,350
Opening Stock 32,250 Sales 2,15,300
Wages 12,165 Advertisement Expenses 3,350
Provision for Doubtful debts 3,200 Printing and Stationary 1,250
Provision for Discount on Debtors 1,375 Cash in Hand 1,450
Sundry Debtors 1,20,000 Cash at Bank 3,125
Sundry Creditors 47,500 Office expenses 10,160
Bad Debts 1,100 Interest Paid on Loan 3,000
Bad debts Recovered 450
Additional Information:-
a) Purchases includes sales return of Rs.2,575 and sales include purchase return of Rs.1,725.
b) Goods withdrawn by Mr.X for own consumption Rs.3,500 included in Purchases.
c) Wages paid in the month of April for installation of plant and Machinery amounting to Rs.450
were included in wages account.
d) Free samples distributed for Publicity costing Rs.825.
e) Create a provision for Doubtful debts @5% and provision for discount on debtors @2.5%.
f) Depreciation is to be provided on plant and Machinery @15% p.a and on furniture and fittings
@10% p.a.
g) Bank overdraft secured against the value of stock. Bank Over draft outstanding as on
31.03.2018 has been considered as 80% of real value of stock (deduction 20% as margin) and
after adjusting the marginal value 80% of the same has been allowed to draw as on
overdraft.(15 Marks)

4. From the following balances, extracted from the books of Mr. Moon, prepare Trading and Profit and
Loss Account for the year ended 31.03.2018 and a balance sheet as on that date.
Dr. Cr.
Rs. Rs.
Purchases 3,56,400
Mr. Moon's Capital 3,00,000
Computer at Cost 91,900
Cash at Bank 20,000
Cassh in hand 14,180

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 FINAL ACCOUNTS - ASSIGNMENT
Sundry creditors 65,000
Bills payable 51,100
Furniture and fittings 7,700
Rent 62,700
Discount Received 1,10,000
Bills receivable 33,600
Trade charges 4,600
Sundry Debtors 1,70,780
Sales 3,03,600
Returns Outwards 57,160
Drawings 26,000
Rent due 1,600
Discount Allowed 2,700
Wages 9,000
Salaries 83,900
Returns Inwards 5,000
8,88,460 8,88,460
Adjustments:
a) Closing stock on 31.03.2018 was valued at cost at Rs.1,28,000/- (Market value Rs.1,21,000)
b) Rs.30,000 paid to Mr. Star against bill payable were debited by misstate to Mr. Sun and included
in the list of Sundry debtors.
c) Travelling expenses paid to sales representative Rs.25,000 for month of March 2018 were debited
to his personal account and included in the list of Sundry debtors.
d) Depreciation on furniture and fittings is to be provided at 10% p.a.
e) Provide for doubtful debt at 5% on sundry debtors.
f) Goods costing Rs.7500/- were used by the proprietor. Entry for it has not yet been passed.
g) Salaries include Rs.60,000 paid to sales representative who is further entitled to a commission of
5% on net sales.
h) Stationery charges Rs.6000 were due on 31.03.2018.
i) Purchases include opening stock valued at Rs.35,000 (Cost price)
j) Sales representative is further entitled to an extra commission of 5% on net profit after charging
his extra commission.
k) No depreciation need be provided for Computer as it was purchased on 31.03.2018 and not put to
use that day. (20 marks)

5. The following figures have been extracted from the records of Fancy stores, a proprietorship
concern, as at 31st March, 2018:
Furniture 15,000 Insurance 6,000
Proprietor's Capital A/c 54,000 Rent 22,000
Cash in Hand 3,000 Sundry Debtors 60,000
Opening stock 50,000 Sales 6,00,000
Fixed Deposits 1,34,600 Advertisements 10,000
Drawings 5,000 Postage and Telephone 3,400
Provision for Bad Debts 3,000 Bad Debts 2,000
Cash at Bank 10,000 Printing and Stationery 9,000
Purchases 3,00,000 General Charges 13,000
Salaries 19,000 Sundry Creditors 40,000
Carriage Inwards 41,000 Deposits from Customers 6,000
Prepare Trading, Profit and Loss Account and Balance sheet after taking into consideration the
following further information:
a) The closing stock as on 31st March, 2018 was Rs.10,000.
b) A sale of Rs.25,000 made for cash had been credited to the purchases Account.
c) Salary of Rs. 2000 paid to an employee had been entered in the Cash book at Rs.1000.

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d) Charge depreciation on furniture at 10%.
e) Furniture had been sold during the year for Rs.10,000 and proceeds had been credited to
furniture A/c. The written down value of furniture sold was Rs.5,000.
f) A Sum of Rs.10,000 received from a party who had purchased some stock belonging to a
separate business of the proprietor was credited to Sundry Debtors Account.
g) The proceed of matured fixed deposit amounting to Rs.25,400, had been credited to Fixed
Deposit account. The original amount of the deposit was Rs.20,000.
h) There was an outstanding liability for Rent of Rs.2,000.
i) An advance of Rs.1000 paid to an employee against his salary of April, 2018 had been debited
to the salary account.
j) The office premises were sub-let from March, 2018 for a monthly rental of Rs.1000, but the rent
for March has not yet been received. (20 marks)

6. From the following figures extracted from the books of Sri Ram, you are required to prepare a
Trading and Profit and loss account for the year ended 31.03.2018 and the Balance Sheet as on
that date after making necessary adjustments:
Particulars Amount Particulars Amount
Stock on 1.4.2017 19,25,000 Sales 1,02,72,500
Purchases 67,37,500 Discount received 7,000
Wages and Salaries 4,37,500 Bills Payable 6,47,500
Carriage inwards 1,40,000 Creditors 32,63,750
Insurance 1,22,500 Consignor’s Balance 1.04.2017 14,00,000
Bills Receivable 7,87,500 Capital
..01 31,32,500
Debtors 52,50,000 Consignment Sales 22,40,000
Commission 1,40,000 Sale of Furniture on 31.03.2018 35,000
Cash sent to consignor 28,00,000
Interest 1,22,500
Trade expenses 1,20,750
Furniture on 1.04.2017 2,10,000
Cash in Hand and at Bank 14,78,750
Rent and Taxes 4,46,250
Charges paid against consignment 2,80,000
Total 2,09,98,250 Total 2,09,98,250
The following adjustments are to be made:
a) Stock on 31 march Rs.28, 00,000(including stock of stationery Rs.2,800).
b) Bill receivable include a dishonored bill of Rs.28,000.
c) Trade expenses include payment of stationary of Rs.78,750.
d) Stock in the beginning includes stock of stationary in the beginning Rs.6,300.
e) Furniture sold was appearing in the balance sheet on 31st March 2017 at Rs.45,500.
f) Creditors at the end include creditors of stationary Rs.10,500 for credit purchases.
g) Commission receivable on sale of consignment is Rs.1,40,000.
h) Stationary of Rs.7,000 was consumed by Sri.Ram.
i) Included in the debtors is an amount of Rs.7000 in respect of a bankrupt debtors whose estate
is expected to realise not more than 25 paise in the rupee and an item of Rs.17,500 for the
goods supplied to Sri Ram
j) Make a provision for bad and doubtful debts at 5% on debtors.
k) Depreciate furniture at 10% p.a .

7. Prepare Manufacturing, Trading and Profit & Loss accounts for the year ended 31st March 2018 and
balance sheet as at that date of Shri S.Singh, Manufacturer, from the following Trial Balance and
information:
Debit Balances :- Amount Debit Balances :- Amount
Advertising 4,150 Stock 1-4-2017 :-

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Bad debts 3,025 Raw materials 26,150
Bank charges 600 Finished goods 36,900
Drawings 40,000 Work in progress 8,350
Factory Power 18,070 Factory wages 1,03,500
Furniture 4,500 Debtors 52,800
General Expenses :Factory 1,025 Cash in bank 19,630
Office 1,730 Cash in hand 875
Insurance 4,510
Light and Heat 2,410 Credit Balances :-
Plant & Machinery (1-4-2017) 75,000 Bad debts Provisions 5,000
Plant & Machinery Bought on Capital 1,75,000
30.09.2017 10,000 Current Account 8,115
Purchases 1,68,340 Discount 2,060
Packing & Transport 5,425 Sales 3,95,870
Rent & Rates 7,430 Creditors 30,750
Repairs to Plant 3,925
Salaries –office 18,450
a) Stock at 31st March 2018 were: - Raw materials Rs.17,800, WIP Rs.8,700, Finished Goods
Rs.48,250,Packing Materials Rs.625.
b) The liabilities to be provided for: - Factory Power Rs.2,810 ;Rent & Rates Rs.1,930 ;Light & Heat
Rs.800 ; General Expenses -Factory Rs.125, General Expenses –office Rs.200.
c) Insurance prepaid Rs.850.
d) Provide Depreciation at 10% per annum on plant and Machinery and 5% per annum on
Furniture.
e) Increase the Bad debts Provision by Rs.2,500.
f) Five Sixth of rent and Rates, Light and Heat and Insurance are to be allotted to the Factory and
one-sixth to the office.

8. The following figures have been extracted from the records of Fancy stores, a proprietorship
concern, as at 31st March, 2018:
Furniture 15,000 Insurance 6,000
Proprietor's Capital A/c 54,000 Rent 22,000
Cash in Hand 3,000 Sundry Debtors 60,000
Opening stock 50,000 Sales 6,00,000
Fixed Deposits 1,34,600 Advertisements 10,000
Drawings 5,000 Postage and Telephone 3,400
Provision for Bad Debts 3,000 Bad Debts 2,000
Cash at Bank 10,000 Printing and Stationery 9,000
Purchases 3,00,000 General Charges 13,000
Salaries 19,000 Sundry Creditors 40,000
Carriage Inwards 41,000 Deposits from Customers 6,000
Prepare Trading, Profit and Loss Account and Balance sheet after taking into consideration the
following further information:
k) The closing stock as on 31st March, 2018 was Rs.10,000.
l) A sale of Rs.25,000 made for cash had been credited to the purchases Account.
m) Salary of Rs. 2000 paid to an employee had been entered in the Cash book at Rs.1000.
n) Charge depreciation on furniture at 10%.
o) Furniture had been sold during the year for Rs.10,000 and proceeds had been credited to
furniture A/c. The written down value of furniture sold was Rs.5,000.
p) A Sum of Rs.10,000 received from a party who had purchased some stock belonging to a
separate business of the proprietor was credited to Sundry Debtors Account.
q) The proceed of matured fixed deposit amounting to Rs.25,400, had been credited to Fixed
Deposit account. The original amount of the deposit was Rs.20,000.
r) There was an outstanding liability for Rent of Rs.2,000.

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s) An advance of Rs.1000 paid to an employee against his salary of April, 2018 had been debited
to the salary account.
t) The office premises were sub-let from March, 2018 for a monthly rental of Rs.1000, but the rent
for March has not yet been received.

9. From the following ledger balances extracted at the close of trading year ended 31st March, 2018.
Prepare a Trading Account, profit and Loss Account and Balance Sheet as at that date. Giving effect
to the under mentioned adjustments :
Capital Account on 1-4-17 50,000 Printing & Stationery A/c 250
Stock Account on 1-4-17 8,000 Rates and Taxes A/c 350
Purchase Account 20,000 Travelling Expenses A/s 150
Sales Account 80,000 Sundry Trade Expenses A/c 200
Returns Inwards A/c 1,500 Business Premises A/c 55,000
Returns Outwards A/c 400 Furniture and Fixtures A/c 2,500
Carriage Inwards A/c 1,200 Bills Receivable A/c 3,500
Carriage Outwards A/c 2,500 Bills Payable A/c 2,500
Wages Account 3,300 Sundry Debtors A/c 20,000
Salaries Account 5,500 Sundry Creditors A/c 15,800
Rent A/c 1,100 Packing Machinery A/c 4,500
Freight and Dock charges 2,400 Smith’s loan A/c (Dr.) 5,000
Fire Insurance Premium A/c 900 Investments A/c 3,000
Bad Debts A/c 2,100 Cash in Hand 250
Discount Account (Dr.) 500 Cash at Bank 3,500
Apprenticeship Premium A/c (Cr.) 1,500 Proprietor’s Withdrawals 3,000
Adjustments to be made for the current period are :
a) Stock in hand 31st March 2018, Rs.7,000.
b) Wages to labour for the last months are outstanding Rs.300.
c) Salaries to clerk for the month of March 2018, are outstanding Rs. 500.
d) Rent of Godowns for the last month is outstanding Rs.100.
e) fire Insurance Premium include Rs.600 paid on 17th October, 2017 to run for one year for 1st
October, 2017.
f) Apprenticeship Premium are for three years, paid in advance on 1st April, 2017.
g) A stationery bill for Rs.30 remains unpaid and recorded.
h) Depreciate : Business Premises by 5% ; Furniture and Fixtures by 10%; and Packing Machinery
by 10%,
i) Interest on Smith’s Loan for one year has accrued at 7%.
j) Interest on investments at 5% for the half year to 31st March, 2018 has accrued.
k) Interest on capital to be allowed at 5% for the year.
l) Interest on drawings to be charged to him, as ascertained for the year Rs.80.
m) Create a Provision on debtors for doubtful debts at 5% and discount at 3%.
n) Create a reserve for discount on creditors at 3 %.

10. Mr. X, a Trader, has extracted the following Trial Balance fro his books as on 31st, March 2018 :
Debit Balances : Rs. Rs.
Purchases 4,00,000 Furniture and Fittings 23,000
Sundry Debtors 1,50,000 Deposit with Supplier 6,000
Cash in Hand 1,04,000 Office Equipments 10,000
Cash at Bank 8,000 Bills Receivable 6,000
Rent, Rates and Taxes 3,000 Bad Debts 4,000
Insurance Premium 9,000 Opening Stock 30,000
Salaries 42,000 Electricity Expenses 2,000
Carriage Outward 21,000 Credit Balances :
Carriage Inward 18,000 Sundry creditors 50,000

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Claim Recoverable 5,000 Sales 7,00,000
Advertisement Suspense A/c 9,000 Capital 1,00,000

The following further information is provided:

a) A purchase invoice for Rs.15,000, received from a Sundry Creditor, has not been entered
through oversight.
b) The claim recoverable has been settled with the insurance company for Rs.2,000.
c) 50% of the Advertisement suspense account is to be written off this year. The amount
represents the cost of an advertising campaign conducted this year.
d) Depreciation is to be provided on straight line method on furniture and fittings and Office
Equipment at 5%. The Original cost of office equipment was Rs.15,000 and Furniture and
Fittings was Rs.30,000.
e) Goods costing Rs.5,000 were dispatched out on 29th March ,the sale, however, took place on 2nd
April, 2018, when an invoice for Rs.7,500 was raised against the customer.
f) Insurance premium includes a prepaid amount of Rs.1,000.
g) The deposit with a supplier was made on 1st October, 2018, It carries interest @ 12% per
annum.
h) Two bills receivable from customers of Rs.700 and Rs.1,300 were dishonored on 30th March.
These had earlier been discounted with the bank.
i) Provide 2% on Sundry debtors for doubtful debts.
j) Physical stock of goods on hand on 31st March, 2018 at cost was Rs.1,00,000.
Prepare Trading and Profit and Loss Account and Balance Sheet from the above mentioned information.

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