Final Accounts

1. prepare final accounts of N for the year ended 31st December 2008 Particulars Gross profit from trading account Commission received Discount received Bank interest Dividend received Office rent Insurance Salaries Audit fees Stationery Repairs and renewals Advertisement Carriage outwards Bad debts Interest on loan Discount allowed Loss on sale of assets Interest on overdraft Bank charges Adjustments: a. Insurance was prepaid for Rs. 1000 Rs. 80000 5000 3000 7000 5000 8000 4000 10000 3000 1000 3000 5000 6000 1000 3000 2000 3000 1000 1000

b. Outstanding salary amounted to Rs. 3000 c. Interest received in advance for the year 2008 amounted to Rs. 1000 whereas accrued interest amounted to Rs. 2000 d. Stock destroyed by fire amounted to Rs. 7000 was covered by the insurance company e. Provide interest n capital @ 5% pa and interest on drawing @ 10% pa (on an average foe 6 months). Capital and drawings were Rs. 100000 and 10000 respectively f. Depreciation on Plant and Machinery @ 10% pa on value of plant and machinery Rs. 40000 g. Advertisement expenses were made for 5 years. Ans: net profit 40500, balance sheet total 394150.

2. the following trial balance was extracted from the books of B as on 31stdec. 2008. Prepare final accounts

Particulars Plant and machinery Manufacturing wages Salaries Furniture Freight on purchase Freight on sales Building Manufacturing expenses Insurance and tax Goodwill General expenses Factory fuel and power Sundry debtors Factory lighting Opening stock Motor car Purchases Sales returns Bad debts Interest and bank charges Cash at bank Cash in hand Total

Dr. Rs.Particulars Cr. Rs. 20000 capital account 80000 34500 sundry creditors 44560 15850 bank loan 15000 10000 purchase returns 1740 1860 sales 250850 2140 reserve for doubtful debts 2000 24000 9500 4250 25000 8200 1280 78200 950 34200 12000 102000 3100 1400 400 4200 1120 394150 total 394150

Adjustments: a. Stock in hand on 31st December 2008 was valued at Rs. 30500 b. Depreciate plant and machinery by 10% furniture by 5% and motor car by Rs. 1000 c. Create reserve for bad dabts at 5% on sundry debtors d. General manager is to be allowed a commission @ 2% on net profit. Ans : gross profit 95700, net profit 56908, balance sheet total 197610.

3. Following is the trial balance of Mr. A for the year ended 31.3.2010. prepare final accounts

Name of the account Purchases Wages Opening stock Printing and stationery Insurance paid one year from 1.10.2009-30.09.2010 Salaries Sales Carriage inward Carriage outward Advertising Capital Land and building Machinery

Debit Rs.Credit Rs. 980000 210000 250000 170000 22000 320000 2120000 100000 120000 140000 1100000 350000 600000

Debtors and creditors Return inward and return outward Cash 2300 Loan from Mr. B taken on 1.12.2009 @ 12% per annun Patents Rent received Total 3805000

300000 20000

350000 23000

180000 200000 32000 3805000

Adjustments: 1. 2. 3. 4. Closing stock is valued at cost price 320000 and market price 260000 Depreciate machinery at 10% per annum and patents are revalued on 31.3.2010 at Rs. 182000 A part of the building is let out at Rs. 10000 per month from 1.12.2009 Printing bill of Rs. 12000, Wages of Rs. 18000 and salaries of Rs. 38000 are outstanding Ans: GP 825000, NL 31200, Balance sheet total 1674000

4. from the following particulars of Mrs. R & Co. you are required to prepare trading, profit and loss account and balance sheet for the year ended 31.12.2009 Sales Sales return Stock at the beginning Purchases Purchase return Direct wages Direct expenses Carriage inwards Capital at the beginning 65000 500 8000 29000 300 5000 5000 4000 30000

Drawings Sundry debtors Sundry creditors Discount allowed Discount received Salaries Interest paid Furniture Building Plant and machinery Cash in hand Bills payable Reserve for bad and doubtful debts Bad debts Closing stock at the end

5000 10000 12000 100 500 3000 400 3000 20000 20000 1000 6200 500 300 8000

Additional Information : 1. 2. 3. 4. 5. Outstanding salaries Rs. 500 Interest on capital at 10%pa Depreciation on plant and machinery at 10% pa and buildings at 5%pa Prepaid interest 100 Provision for bad and doubtful debts at 10% on debtors

Ans: GP 21800, NP 11600 Balance sheet total 58300

5. From the following trial balance of shri W prepare final accounts for the year ended 31.03.2009 Opening stock 30000 Purchases 75000 Investment 11000 Return inward 2700

Trade expenses Wages Salaries Office expenses Advertisement Bad debts Rent rates and insurance Discount Interest and commission Premises Plant and machinery Fixtures and fitting Sundry debtors Cash in hand Capital Sales Return outwards Creditors Bank overdraft Total

675 3500 5600 660 420 400 2800 300 215 6000 10000 5000 46000 1030 35000 125000 1300 30000 10000 201300

201300

Adjustments: 1. Stock on 31st march 2009 was Rs. 45000 2. There were outstanding liabilities in respect of rent 250 and wages 200 3. Insurance paid in advance amounted to Rs. 150 and salaries were unpaid to the extent 350 4. Write off 400 as further bad debts and provide for doubtful debts at 5% on debtors 5. Depreciate premises by 2.5% machinery by 7.5% and fixtures and fitting at 10% 6. Accrued interest on investment 275 Ans: GP 59225, NP 44575 balance sheet total 120375

6. From the following trial balance of Mr. D prepare final accounts for the year ended 31.10.2008 Machinery Building Opening stock Purchases Wages and salaries 90000 40000 20200 110800 17000

Carriage outward Sundry debtors General expenses Rent Income tax Legal charges Prepaid rent Loan to M Drawings Cash on hand Cash at bank Capital Credtiors Bills payable Returns outward Interest and commission Outstanding expenses Sales Reserve for doubtful debts Total Adjustments: 1. 2. 3. 4. 5.

3000 35000 9100 1700 650 300 200 17000 4300 1350 9750 115200 45000 4000 1500 900 1150 190500 2500 360750 3670750

Stock on closing date cost 20900 market value 24000 Depreciate machinery at 10% and building at 5% Reserve for bad debts to be maintained at 1000 Provide for reserve for discount on sundry creditors 2% Calculate interest on capital 5%, no interest is charged on drawings Ans: GP 64900, NP 36590 balance sheet total 202200

7. prepare balance sheet for the year ended 31.3.2009 Capital Drawings Purchases Returns inward Return outward Furniture Buildings Office expenses Opening stock Trade expenses Rent and taxes Wages Sales cash Sales credit Carriage inward Carriage outward Bills receivable Bills payable Salaries Reseve for doubtful debts Bad debts Sundry debtors Insurance 300 12000 300 750 1200 200 300 1200 900 6000 8000 1200 7000 400 600 8000 10000 20000 3000 20000 500 800 36000

Cash in hand Cash at bank Depreciation on furniture Outstanding expenses Sundry creditors Total Adjustments :

500 2500 300 150 4000 73050 73050

Closing stock 14000 Depreciate building 5% Rent outstanding 300 Insurance prepaid 100 Write off 2000 as bad debts and keep the reserve for doubtful debts at 5% on sundry debtor Commission accrued but not received upto 31.3.2009 400 Interest to be allowed on capital 5% Ans: GP 8700 NP 1650 balance sheet total 41800

8. prepare final accounts for the year ended 31.3.2009 Sundry creditors Rent Cash at bank Cash in hand Opening stock Bad debts Discounts Purchase and Sales Carriage on sale Plant and machinery Sales return 1200 3000 1400 16000 1000 400 110000 3600 20000 8000 1000 168000 46000

Purchase return Carriage on purchase Furniture and fixture Insurance and office expenses Salaries Bills receivable Drawings Wages Provision for doubtful debts Capita Sundry debtors Commission Total 40000 8400 271000 1000 12000 3000 6000 12000 12000 12000

4000

2000 l 50000

271000

Adjustments : Depreciate plant and machinery at 10% and furniture and fixture at 5% Insurance prepaid 200 Outstanding salary 1000 outstanding rent 200 Maintain RDD at 6% at debtors Closing stock 20000

Ans: GP 45000 NP 18400 balance sheet total 103600

9. prepare final accounts for the year ended 31.3.2009 Capital Drawings Plant and machinery Furniture 88000 1000 50000 6000

Loose tools Motor car(cost 15000) Opening stock Purchases Return inward Return outward Sales Discount received Wages Carriage outward Salaries General expenses and insurance Rent and taxes Postage and telegram Packing and selling expenses Sundry debtors Advertisement Sundry creditors RDD Cash in hand Bank overdraft Adjustments

10000 5000 10000 151000 4000 2000 204000 3000 5000 6000 20800 6000 7200 2000 4000 24000 1000 12000 1000 7000 10000

Depreicate motor ca at 15% on original cost and loose tools are valued at Rs.8000 Closing stock 12400 RDD is to be maintained at 5% on debtors and reserve for discount on creditors at 2% Unexpired insurance 200 Provide for interest on capital at 6%

Ans: GP 48400, NL 4890 balance sheet total 109150

10. . prepare final accounts for the year ended 31.3.2009 Opening stock Salaries and wages Railway freight Purchases Bills receivable Rent Sales Reserve for bad debts Sundry creditors Returns outward Bad debts Plant and machinery Travellinf expenses Commission Repairs to plant Cash at bank Buildings Returns inwards Sundry debtors Drawings Office expenses Capital Bank loan Total 120000 12000 5000 120000 1200 7500 253000 1000 32600 1500 300 20000 6000 1000 1200 2400 50000 1000 35000 6500 5000 50000 54000 393100

393100

Adjustments: Closing stock 35000 Unexpired insurance 500 is included in office expenses Office expenses due but not paid 300 Make provision for unpaid salaries 1200 Commission received but not earned 400 Provide interest on capital 5% Depreciate plant and machinery 5% and building 2.5% Provide reserve at 5% on bad debts

Ans: GP43500 NP 5600 Balance sheet total 140100