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Final Accounts Sum No 17 PDF

This document provides a trial balance for Mr. Pandya as of March 31, 2011 with debit and credit balances for various accounts. It includes adjustments to be made for closing stock, interest on capital, interest on drawings, provision for doubtful debts, unpaid expenses, and depreciation on machinery and furniture. The adjustments are to be made to the trial balance to prepare final accounts, including the gross profit, net profit, balance sheet total, and closing capital balance.

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Om Mansatta
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2K views2 pages

Final Accounts Sum No 17 PDF

This document provides a trial balance for Mr. Pandya as of March 31, 2011 with debit and credit balances for various accounts. It includes adjustments to be made for closing stock, interest on capital, interest on drawings, provision for doubtful debts, unpaid expenses, and depreciation on machinery and furniture. The adjustments are to be made to the trial balance to prepare final accounts, including the gross profit, net profit, balance sheet total, and closing capital balance.

Uploaded by

Om Mansatta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
  • Trial Balance Exercise: Presents a trial balance from which to prepare final accounts, including debits, credits, and adjustments for Mr. Pandya.

17 From the following trial balance of Mr.

Pandya Prepare final accounts


as on 31st
March, 2011:
Debit Balances Rs. Credit Balances Rs.
Drawings 30,000|Capital |1,50,000
Debtors 90,000 Creditors 60,000
Sales Return 2,000 Purchase return 3,000
Bills Receivables 15,000 Bills payable 20,000
Cash 1,000 Bank overdraft 14,000
Discount 400 Discount 300
Bad debts 400 Bad debts-reserve 1,300
Purchases 1,40,000 Sales 2.60,000
Machinery 36,500|8% loan of Miss. Meena
Depreciation on Machinery 3,500 (Date 1-11-2010) 30,000
Furniture 12,000 Unpaid wages 2.000
Stock (1-4-2010) 45,000
Prepaid insurance 200
Wages 35,000
Salary 23,000
Insurance 1,800
Bank interest 200
Carriage inward 600
Rent and taxes 10,000
Trading expenses 2,500
Goodwill 76,000
Leasehold Building
(5 years from 1-10-10) 14,000
Sundry expenses 1,500|
5,40,600 5.40,600

Adjustments:
(1)
(1) Closing stock is of Rs. 1,10,000.
(2) Interest at the rate of 5% p.a. is to be allowed on capital.
(3) Interest on drawings Rs. 1,000.
(4) Provide 5% for doubtful debts on debtors.
At the end of the year, unpaid salary is of Rs. 800, unpaid sundry
(5)
expenses are of Rs. 200 and unpaid rent is of Rs. 300.
(6) Calculate depreciation at 10% on machinery and at 5% on furniture
(South Guj. Uni. EY, B.B.A., April,
2002)
Total of
LAns.:Gross Profit Rs. 1,50,400, Net profit Rs. 90,300,
B/S Rs. 3,45,100, Closing Balance of Capital R. 2,16,800.
Notes: (1) Interest on Capital Rs. 7,500. (2)
Outstanding interest
on Meena's Loan Rs. 1,000. (3) Depreciation on
machinery (36.500 +
10
3,500) 40,000 x R s . 4,000. Depreciation provided during the
100
year is Rs. 3,500. Hence, more provision for depreciation is required
Rs. (4,000 3,500) 500. (4) Depreciation on Furniture Rs. 600. (5) Bad
-

debts Reserve Rs. 4,500.]

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