Final Account Numerical Problem

Final Account:
Trading, Profit & Loss Account

And Balance Sheet.
Meaning of Final Account:
The accounts which are prepared at the end of the
financial year are called as FINAL ACCOUNTS.
Final Account consists of the following:-

1)Trading account. 2)Profit
and Loss account.
3)Balance sheet.
Trading account is a nominal account.It is a part of Profit
and Loss account.
It is generally prepared to find the gross profit or gross
loss of the business during the financial year.
Explanation of some important points:

1)Opening stock.
2)Purchases.
3)Purchase return.
4)Wages.
5)Sales.
6)Sales return.
7)Carriage
inward.
8)Royalty.
9)Gross
Profit and Loss account is open with either gross profit or gross
loss b/d from trading account.
It is prepared to find out net profit or net loss of the business.
Explanation of some important points:

1)Salaries. 6)Interest.
2)Discount. 7)Bad
debt. 3)Travelling expenses.
8)Depreciation.
4)Insurance. 9)Discount received.
5)Printing and Stationary. 10)Net profit/loss.

Balance sheet is a statement.It is not actually an
account.It is a statement showing the financial
position of the business on a particular date.It
shows all the Assets and Liabilities of the
business.It is the soul of the business.
Asset side of the balance Liability side of the balance
sheet sheet
1)Fixed Assets. 1)Fixed liability.
2)Current Assets. 2)Current liability.
3)Fictitious Assets. 3)Contingent liability.
Ex: Following is the trail balance of Ganesh and Shripad.
Trial balance as on 31st march 2009
Debit Balances Amount Credit Balances Amount
Opening stock 44000 Reserve for doubtful debts 2100
Building 80000 Sundry creditors 55400
Patents 10000 Bills payable 10000
Bills Receivable 28000 Sales 200000
Purchases 130000 General reserve 28000
Audit fees 6000 Capital account
Bad debts 3500 Ganesh 70000
Cash at bank 11500 Shripad 70000
Travelling expenses 4200 Outstanding salaries 2700
Wages and Salaries 12000
Sundry debtors 52000
Unproductive wages 1900
Motor car 45000
Trade expenses 2400
General expenses 1800
438200 438200
Rent(for 9 months) 4500
1)Closing stock is valued at Rs.45000cost price
And Rs.47000 market price.
2)Bills receivable included a dishonoured bill of Rs.3000.
3)Goods of Rs.2500 were taken by shripad,
Goods worth Rs.4000 were sold on 27th march 2009,but
no
entry was made In the books of accounts.
4)Write off Rs.2000 for bad debt and maintain R.D.D. at 5%
on sundry debtors.
5)Travelling expenses included personal travelling
expensesRs.800 for mr.ganesh.
6)Depreciation on building at 7.5 % p.a.
Mrs.Ganesh & Shripad
Trading Account
For the year ended 31st march 2009
Particulars Amt. Amt. Particulars Amt. Amt.

To opening stock 44000 By sales 200000 204000
To purchases 130000 (+)unrecorded 4000
To Wages and sales
salaries 12000 By goods taken
To Trade for personal use-
expenses 2400 shripad 2500
To gross profit 63100 By closing stock 45000
c/d
251500 251500
Particulars Amt. Amt. Particulars Amt. Amt.
To audit fees 6000 By Gross profit b/d 63100
To Bad debts 3500
+New bad debts 2000
+new R.D.D. 2850
↔↔↔
8350
-old R.D.D. 2100 6250
To Discount 1400
To dep.on Building 6000
To general exp. 1800
To unproductive
wages 1900
To travelling exp. 4200
-personal 800 3400
To rent 4500
+o/s 1500 6000
To net profit
transferred to
capital accounts
Liabilities Amt. Amt. Assets Amt. Amt.
Capital accounts 70000 84375 Building 80000 74000
Ganesh - depreciation 6000
+net profit 15175 Patents 10000
↔↔↔
85175 Bills receivable 28000
-drawings (personal 800 - dishonor 3000 25000
travelling)
Shripad 70000 Cash at bank 11500
+ net profit 15175 Sundry debtors 52000
↔↔↔ + dishonored bill 3000
85175 + unrecorded sales 4000
- Drawings 2500 82675 ↔↔↔
Sundry creditors 55400 59000
Bills payable 10000 - New bad debts 2000
General reserve 28000 - New R.D.D.5% 2850 54150
O/s salaries 2700 Motor car 45000
O/s Rent 1500
Closing stock 45000
Prepare the Trading, Profit & Loss Account and Balance
Sheet from the following information.
Adjustments:
1. Stock on 31st December, 2011 was valued Rs.786000/-
2. Create a Reserve for Doubtful Debts at 5% on Debtors.
3. Insurance paid in advance on amounted to Rs. 300/-
4. Outstanding expenses were: Wages Rs. 3000/-, Salaries Rs. 5000/-,
Carriage Rs. 1000/-
5. Private purchases amounting to Rs. 6000/- had been included in
the Purchases Book.
6. Provide for interest on Bank loan for the full year.
Particulars Dr. (Rs.) Particulars Cr. (Rs.)
Stock on 1-1-2011 468000Capital 1080900
Sales Return 86000Sales 896000
Purchases 431000Purchase Returns 58000
Freight and Carriage 186000Sundry Creditors 148000
Rent and Taxes 57000Bank Loan at 6% p.a. 200000
Salaries and Wages 93000Income from Investment 2500
Sundry Debtors 240000Discount Received 41900
Interest on Bank Loan 9000
Printing and Stationery 146000
Cash at Bank 80000
Investments 50000
Furniture and Fittings 18000
Discount Allowed 75400
General Expenses 39100
Audit Fees 7000
Insurance 6000
Travelling Expenses 23300
Postage and Telephone 8700 Trial Balance
Cash in Hand 3800
Deposits 300000
Drawings 100000
Total 2427300 2427300
Trading Account
Dr. Particulars Dr. Cr. Particulars Cr. Amt.

Amt.
Stock on 1-1-2011 468000
Trading Account

Amt.
Stock on 1-1-2011 468000
(-) Sales Return 86000
Trading Account

Amt.
Stock on 1-1-2011 468000
Purchases 431000 (-) Sales Return 86000
Trading Account

Amt.
Stock on 1-1-2011 468000
Freight and Carriage 186000

Profit and Loss Account

Amt.
Rent and Taxes 57000


Amt.

Salaries and Wages 93000
Balance Sheet
Liabilities Particulars Lia. Assets Particulars Assets

Amt. Amt.
Sundry Debtors 240000


Amt.


Amt.

Balance Sheet

Amt. Amt.
Cash at Bank 80000

Balance Sheet

Amt. Amt.
Investments 50000
Cash at Bank 80000


Amt.


Amt.


Amt.

Audit Fees 7000

Amt.

Audit Fees 7000
Insurance 6000

Amt.

Audit Fees 7000
Insurance 6000

Amt.

Audit Fees 7000
Insurance 6000
Postage and Telephone 8700
Balance Sheet

Amt. Amt.
Investments 50000
Cash at Bank 80000

Cash in Hand 3800
Balance Sheet

Amt. Amt.
Investments 50000
Deposits 300000
Cash at Bank 80000

Cash in Hand 3800
Balance Sheet

Amt. Amt.
Investments 50000
(-) Drawings 100000
Deposits 300000
Cash at Bank 80000

Cash in Hand 3800
Balance Sheet

Amt. Amt.
Capital 1080900 Investments 50000
(-) Drawings 100000
Deposits 300000
Cash at Bank 80000

Cash in Hand 3800
Trading Account

Amt.
Stock on 1-1-2011 468000Sales 896000

Trading Account

Amt.
Stock on 1-1-2011 468000Sales 896000
(-) Purchase Returns 58000
Balance Sheet

Amt. Amt.
(-) Drawings 100000
Sundry Creditors 148000 Sundry Debtors 240000
Deposits 300000
Cash at Bank 80000

Cash in Hand 3800
Balance Sheet

Amt. Amt.
(-) Drawings 100000
Bank Loan at 6% p.a. 200000 Deposits 300000
Cash at Bank 80000

Cash in Hand 3800

Amt.
Income from
Rent and Taxes 57000 Investment 2500
Audit Fees 7000
Insurance 6000

Amt.
Income from
Salaries and Wages 93000 Discount Received 41900
Audit Fees 7000
Insurance 6000
Balance Sheet

Amt. Amt.
(-) Drawings 100000
Cash at Bank 80000

Cash in Hand 3800
Closing Stock 786000
Trading Account

Amt.
Stock on 1-1-2011 468000Sales 896000
Freight and Carriage 186000 Closing Stock 786000
Balance Sheet

Amt. Amt.
(-) Drawings 100000

(-) RDD 5% -12000
Cash at Bank 80000

Cash in Hand 3800
Amt.
Income from
Audit Fees 7000
Insurance 6000
RDD 5% 12000
Amt.
Income from
Audit Fees 7000
Insurance 6000
(-) Paid in
advance/Prepaid -300
RDD 5% 12000
Balance Sheet
Amt. Amt.
(-) Drawings 100000

(-) RDD 5% -12000
Prepaid Insurance 300

Cash at Bank 80000
Cash in Hand 3800
Balance Sheet
Amt. Amt.
(-) Drawings 100000

(-) RDD 5% -12000
Outstanding Expenses: Prepaid Insurance 300

Wages 3000 Cash at Bank 80000
Salaries 5000 Cash in Hand 3800
Carriage 1000 Closing Stock 786000
Amt.
Income from
(+) Outstanding 5000
Audit Fees 7000
Insurance 6000
(-) Paid in
advance/Prepaid -300
RDD 5% 12000
Trading Account

Amt.
Stock on 1-1-2011 468000Sales 896000
(+) Outstanding +1000
Outstanding Wages 3000
Trading Account

Amt.
Stock on 1-1-2011 468000Sales 896000
(-) Purchase Returns -58000
(-) Drawings -6000
(+) Outstanding +1000
Outstanding Wages 3000
Balance Sheet
Amt. Amt.
(-) Drawings -100000
(-) Drawings included in
Purchases -6000 Furniture and Fittings 18000

(-) RDD 5% -12000

Balance Sheet
Amt. Amt.

(-) RDD 5% -12000

Provision for Interest on
Bank Loan 3000
Amt.
Rent and Taxes 57000 Income from Investment 2500

(+) Outstanding 5000
Provision for Interest on Loan +3000
Audit Fees 7000
Insurance 6000
(-) Paid in advance/Prepaid -300

RDD 5% 12000
Trading Account
Dr. Particulars Dr. Amt. Cr. Particulars Cr. Amt.
Stock on 1-1-2011 468000Sales 896000

Purchases 431000 (-) Sales Return 86000 810000
(-) Purchase Returns -58000
(-) Drawings -6000 367000
Freight and Carriage 186000 Closing Stock 786000 786000

(+) Outstanding +1000 187000
Outstanding Wages 3000 3000
Gross Profit 571000

1596000 1596000
Amt.
Gross Profit 571000
2500
Rent and Taxes 57000 57000 Income from Investment 2500
Salaries and Wages 93000 Discount Received 41900 41900
(+) Outstanding 5000 98000
Provision for Interest on Loan +3000 12000
Printing and Stationery 146000 146000
Discount Allowed 75400 75400
General Expenses 39100 39100
Audit Fees 7000 7000
Insurance 6000
(-) Paid in advance/Prepaid -300 5700
Travelling Expenses 23300 23300
Postage and Telephone 8700 8700
RDD 5% 12000 12000
131200
615400 615400
Balance Sheet
Amt. Amt.
Profit & loss Account 131200
(-) RDD 5% -12000

Provision for Interest on
Bank Loan 3000
THANK YOU

Final Account Numerical Problem

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Final Account Numerical Problem

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Final Account:

Trading, Profit & Loss Account

Final Account consists of the following:-

Explanation of some important points:

Explanation of some important points:

5)Printing and Stationary. 10)Net profit/loss.

Particulars Amt. Amt. Particulars Amt. Amt.

Dr. Particulars Dr. Cr. Particulars Cr. Amt.

Dr. Particulars Dr. Cr. Particulars Cr. Amt.

Dr. Particulars Dr. Cr. Particulars Cr. Amt.

Dr. Particulars Dr. Cr. Particulars Cr. Amt.

Freight and Carriage 186000

Dr. Particulars Dr. Cr. Particulars Cr. Amt.

Rent and Taxes 57000

Dr. Particulars Dr. Cr. Particulars Cr. Amt.

Rent and Taxes 57000

Liabilities Particulars Lia. Assets Particulars Assets

Sundry Debtors 240000

Dr. Particulars Dr. Cr. Particulars Cr. Amt.

Rent and Taxes 57000

Dr. Particulars Dr. Cr. Particulars Cr. Amt.

Rent and Taxes 57000

Liabilities Particulars Lia. Assets Particulars Assets

Sundry Debtors 240000

Cash at Bank 80000

Liabilities Particulars Lia. Assets Particulars Assets

Furniture and Fittings 18000

Sundry Debtors 240000

Cash at Bank 80000

Dr. Particulars Dr. Cr. Particulars Cr. Amt.

Rent and Taxes 57000

Dr. Particulars Dr. Cr. Particulars Cr. Amt.

Rent and Taxes 57000

Dr. Particulars Dr. Cr. Particulars Cr. Amt.

Rent and Taxes 57000

Dr. Particulars Dr. Cr. Particulars Cr. Amt.

Rent and Taxes 57000

Dr. Particulars Dr. Cr. Particulars Cr. Amt.

Rent and Taxes 57000

Dr. Particulars Dr. Cr. Particulars Cr. Amt.

Rent and Taxes 57000

Liabilities Particulars Lia. Assets Particulars Assets

Furniture and Fittings 18000

Sundry Debtors 240000

Cash at Bank 80000

Liabilities Particulars Lia. Assets Particulars Assets

Furniture and Fittings 18000

Sundry Debtors 240000

Cash at Bank 80000

Liabilities Particulars Lia. Assets Particulars Assets

Sundry Debtors 240000

Cash at Bank 80000

Liabilities Particulars Lia. Assets Particulars Assets

Sundry Debtors 240000

Cash at Bank 80000

Dr. Particulars Dr. Cr. Particulars Cr. Amt.

Freight and Carriage 186000

Dr. Particulars Dr. Cr. Particulars Cr. Amt.

Liabilities Particulars Lia. Assets Particulars Assets

Sundry Creditors 148000 Sundry Debtors 240000

Cash at Bank 80000

Liabilities Particulars Lia. Assets Particulars Assets

Sundry Creditors 148000 Sundry Debtors 240000