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OMTEX – CLASSES

F.Y.B.Com FINAL ACCOUNT OF SOLE TRADING CONCERN F.Y.B.Com


PARTICULARS Amount PARTICULARS Amount
Rs. Rs.
Debit Balances Credit Balances
Opening Stock: Sundry creditors 17000
Raw Materials 23,000 Bills payable 8500
Work-in-progress 10,000 Sale of scrap 1500
Finished goods 15,500 Commission 50
Sundry Debtors 27,000 Provision for doubtful debts 1650
Carriage on purchases 1,500 Capital A/c 1,00,00
Bills receivable 18,000 Sales 0
Wages 12,000 Current Account or Rajan 2,00,00
Salaries 10,000 0
Telephone charges 500 9,700
Postage 500
Repairs to plant 1200
Repairs to office furniture 600
Purchases 1,00,000
Cash at bank 12,000
Plant and machinery 90,000
Office furniture 9,000
Rent 5,000
Lighting 1,300
General expenses 1,600
3,38,70 3,38,70
0 0
st
1. The Trial Balance of Rajan as on 31 December, 1999 was as follows:-

The following additional information is provided to you:


1. Closing stock:
Raw materials Rs. 15,800
Finished Goods Rs. 18,200
Semi-finished Goods Rs. 7,000

2. Salaries unpaid for December,1999 Rs. 1,000


3. Wages unpaid for December, 1999 Rs. 3,000
4. Machinery is to be depreciated by 5%
5. Office furniture is to be depreciated by 5%
6. Provision for Doubtful debts is to be maintained at 10%
7. Lighting is to be divided between office premises and factory. Lighting is to
be charged to office premises for Rs.300 and remaining Rs. 1000 are to be
charged factory.
8. Factory Premises occupy ¼th of total area.
You are required to prepare Manufacturing Account, Trading
Account,
Profit and Loss account and the balance sheet relating 1999.
2. The following are the closing balances as on 31.12.1999 extracted from the
books of Mehta. Prepare Trading and Profit and Loss account for the year ended
31st December,1999 and the balance sheet as on the same date. Show the
necessary entries .

PARTICULARS Amount
Rs.
Mr. Mehta’s Capital 1,65,00
Stock on 1st January,1999 0
Sales 70,200
Purchases 4,34,40
Carriage inwards 0
Rent and taxes 3,64,65
Sales returns 0
Salaries 27,900
Purchases returns 8,550
Sundry debtors 12,900
Sundry creditors 13,950
Bank loan at 6% (1.01.1999) 8,700
Interest paid on above 36,000
Printing and advertisements 22,200
Drawing A/c 30,000
Interest Received from A.N. Sen 1,350
Cash at bank 21,900
Discount received 15,000
Investments 400
Furniture and fittings 12,000
Discount allowed 6,300
General expenses 7,500
Audit fees 2,700
Insurance 11,310
Traveling expenses 6,000
Postage and telegrams 1,050
Cash in hand 900
Deposit with Mr. A.N. Sen (1.1.1999) interest at 9%) 3,500
4,070
570
45,000
OMTEX – CLASSES
F.Y.B.Com FINAL ACCOUNT OF SOLE TRADING CONCERN F.Y.B.Com
Adjustments:
1. Stock as on 31st December,1999 was Rs. 1,20,000
2. Sundry Debtors included a sum of Rs. 3,000 due from Mr. Nair and
Sundry Creditors included a sum of R. 4,000 due to Mr. Nair.
3. 25% of the Printing and Advertisements was to be carried forward in the
next year.
4. Provide 5% for bad debts and 2% for discount for prompt payment.
5. Write off depreciation at 10% off furniture and Fittings Depreciation in
respect of items sold off during the year need not be provided
6. As on 31st December, 1999 salaries and carriage inwards that remained
unpaid were Rs. 1,200 and Rs. 150 respectively
7. Insurance paid in advance as on 31st December,1999 was Rs. 120
8. Furniture of the book value of Rs. 900 as on 1.1.1999 had been disposed
off for Rs. 500 on 30.601999. The sale proceeds had been credited to
furniture account, but the loss on sale of furniture had not been written
off in books.
9. Furniture purchased for Rs. 1,000 on 1.1.1999 had been debited to
Purchases A/c
OMTEX – CLASSES
F.Y.B.Com FINAL ACCOUNT OF SOLE TRADING CONCERN F.Y.B.Com
10. Purchases to the value of Rs. 1800 had been omitted to be entered in the
books.
11. Personal purchases of Rs. 700 made by Mr. Mehta had been included in
the purchases
12. Provide for interest on the deposit with Mr. A.N. Sen, and bank loan.

3. From the following extracts prepare Manufacturing A/c, Trading A/c, Profit and loss
A/c for the year ended 31st March, 2000 and the balance sheet as on 31st March 2000.
PARTICULARS Amount PARTICULARS Amount
Rs. Rs.
Stock (At April 1st 1999) Machinery 17000
Raw Material 13000 (WDV on 31st march 2000)
Work – in – progress 8000 Drawings 3000
Finished goods 19000 Advertisement 1800
Capital A/c (Including Rs. 15,000 Debtors 18500
introduced on 1.4.99) 90000 Office salaries 3820
Balance with Bank 13500 Factory insurance 1070
Cash in hand 810 Lighting(including Rs. 1200 for
Sales 1,1200 office) 1960
Purchase of Raw Material 0 Carriage outward 550
Return inward 79000 Interest Received 450
Wages 390 Depreciation:
Direct expenses 8500 Machinery 3000
Rent(Including Rs. 2500 for 2300 Office furniture 800
factory premises) Office furniture
Power Expenses 3000 (W.D.V on 31.3.2000) 7200
Investments 1200 Printing and Stationary 300
10100 Miscellaneous Exps. 600
Discount Received 250
Bad debts 300
Creditors 16000

Adjustments:

1. Additional Bad Debts of Rs. 500 are to be written off and R.D.D to be
charged on Debtors at 5%
2. Machinery and office furniture are depreciated at wrong rates. Actual
depreciation rate should be Machinery at the rate of 10% and offices
furniture at the rate of 15%.
3. Closing stocks are: Raw materials Rs. 2000 WIP Rs. 16330 and Finished
goods Rs. 28000.

OMTEX – CLASSES
F.Y.B.Com FINAL ACCOUNT OF SOLE TRADING CONCERN F.Y.B.Com
4. Following is the Trial Balance of Shri Nalawae, as on 31st March, 2001.
You are required to prepare Trading and Profit and loss account and
Balance sheet as on that date.
PARTICULARS Amount Amount
Rs.Dr Rs.Cr
Capital 91,000
Drawings 12,000
Opening stock 32,000
Sales less returns 12,000 1,70,00
Purchases 82,000 0
Wages 6,000
Carriage 5,000
Salaries 16,500
Insurance(to expire on 30-06-2001) 1,200
Interest on loan 400
6% Loan
Plant and Machinery 25,000 12,000
Land and Building 40,000
Lease 10,000
Rent, Rates and Taxes 1,200
Bad debts 700
Bills receivable 3,000
Bank balance 12,800
10% investment 10,000
Debtors and Creditors 32,000
30,000
2,91,00 2,91,00
0 0
Additional Information:
1. 95% of the debtors are considered good.
2. Opening stock includes stock of stationery of Rs. 2000
3. Purchase includes purchase of stationery Rs. 5000
4. Stock on 31st March, 2001 was Rs. 25,000.
5. Stock of Stationery amounted to Rs. 500/- on 31st March,2001.
6. Salary represents amount paid up to February 2001.
7. Depreciation on machinery is 20% and on Land and Building.

5. From the following Trial Balance and additional information prepare


Manufacturing a/c. Trading A/c and Balance Sheet as on 31st March 2001.
PARTICULARS Amount Amount
Dr.Rs. Cr.Rs.

Stock on 1st April,2000


Finished Goods 1,92,000
Raw Material 48,000
Work in Progress 15,000
Wages 2,78,000
Office Rent and Insurance 40,000
Carriage inward 20,000
Bad debts 8,500
Discount received 15,000
Provision for doubtful Debt 13,000
Patent Rights 22,000
Capital 4,50,000
Cash at Bank 1,20,000
Cash in hand 15,000
Factory rent 18,000
Salary to work staff 67,000
Advertising 27,300
Land and Building (Factory 2,50,000
Sundry Debtors 4,20,000
Plant and Machinery 2,00,000
Sundry Creditors 4,20,000
Purchase of material 3,50,000
Sales 12,27,80
Factory Expenses 35,000 0

21,25,80
0 21,25,80
0
Additional Information:-
a. Closing stock on 31st March, 2001
Raw Material Rs. 42500
Work in Progress Rs. 28100
Finished goods Rs. 301500
b. Provide 5% Provision for doubtful debt.
c. The General Manager is entitle to commission of 5% of net profit after such
commission.
d. Depreciate building at 2% and plant at 5%
e. Write off Rs. 8,000 as bad debt.
f. Outstanding expense were-
Office Rent Rs. 2000
Factory expense Rs. 1600
Advertising Rs. 1850.

6.From the following trial balance and additional information prepare


manufacturing account ,trading and profit & loss A/C and balance sheet as on
31st December 2000.
DEBIT BALANCE RS CREDIT BALANCE RS
Stock on 1st January,2000 Capital account 10,00,00
Raw material 2,21,000 Current account 0
Work in progess 1,06,000 Commission 22,000
Finished goods 1,20,000 Sale of scrap 5,700
Carriage 17,500 Sundry creditors 2,000
Bills receivable 1,42,000 Provision for doubt full 1,80,000
Wages 1,25,000 debt 20,000
Salaries 1,20,000 sales 15,85,60
Telephone postage 10,000 0
Purchases 8,20,000
Plant and machinery 7,25,000
Office furniture 80,000
Rent 50,000
Sundry debtors 2,50,000
General expenses 18,800
Repairs to plant 10,000

28,15,30
0

28,15,30
0

Additional information:
(a) write off Rs. 10,000/-as debts.
(b) Stock on 31st December 2000 were
Raw material Rs. 1,50,000
Work in progress Rs. 1,65,000
Finished goods Rs. 75,000
(c) Salaries and wages outstanding were Rs.10,000/-and Rs.15,000/-
respectively.
(d) office premises occupy 1/3rd of the total area.
(e) Provision for doubtful debt is 1% on sales.
(f) Machinery is depreciated by 15% and office furniture 5%
(g) During the year proprietor withdrawn goods worth Rs. 15,000 for
personal use.
(h) Included among the creditors is Rs. 5000/- due from sri sharma
andincluded among creditors is Rs. 2000/- due to him.

From the following trial balance and additional information ,prepare


manufacturing A/C , trading and profit and loss A/C and balance sheet as on 31st
December, 1999.
PARTICULARS Amount PARTICULARS Amount
Dr Cr
Stock on 1/1/1999 Sales 3,41,93
Raw material 8,000 Capital account 0
Manufactured goods 21,480 Sale of scrap 1,50,00
Depreciation on plant and Bills payable 0
machines 20,000 Sundry creditors 1,200
Printing and machinery 2,100 21,000
Repairs to machinery 5,000 50,000
Purchase of material 1,85,00
Manufacturing goods 0
Plant and machinery 28,000
Furniture 1,80,00
Sundry debtors 0
Bank balance 50,000
Bad debts 25,000
Carriage outward 11,200
Traveling expenses 1,500
Manufacturing salaries 2,650
6,200
18,000
5,64,13 5,64,13
0

Additional information:
1. stock on 31st December 1999
Raw material Rs.7,000
Manufactured goods Rs. 50,000
2. Bill payable of Rs. 5000/- is dishonored.
3. Goods manufactured are supplied by manufacturing department of a sale
Price of Rs.2,50,000.