ee ym the books of Prasad on 31st March 1994. 4, The following balances were extracted fro Rs. Rs. Capital 0,000 | Creditors 5,000 Drawings 4.000 | Bad debts 1,100 General Expenses 5,000 | Loan 15,760 Buildings 22,000 | Sales 1,30,720 Machinery 18,680 | Purchases 94,000 Stock 42.400 | Motor Car 4,000 Power 4an0 | Reserve Fund (Cr-) 1,800 Taxes & Insurance 2,630 | Commission (Cr) 2,640 Wages 14,400 | Car Expenses 3,600 Debtors 12,560 | Bills Payable 6,700 Bank Overdraft 6,600 | Cash 160 Charity 210 Stoek oa Slat March 1994 was valued at Res. 47,000. Propare the final Acccunts for th 1¢ year ended on 31st March 1994. was 33d; Net Profit ~ Rs, 22,540; [Ans: Gross Profit — Balance Sheet Total — Rs. 1,04,400] From the following Trial Balance, Prepare Trading, Profit & Loss A/c for the year ended 31-12-1981 and a Balance Sheet as on that date: Trial Balance ’ Rs. Rs. Purchases 11,870 | Capital 8,000 Debtors 7,589 | Bad debts recovered 250 250 Return inwards 450 | Creditors 1,250 Bank deposit 2,150 | Return Outwards 350 Rent 360 | Bank Overdraft 1,570 Salaries 850 | Sales 14,690 Travelling expenses 300 | Bills Payable 1,350 Cash 210 Stock 2,450 Discount allowed Drawings 27,460 Adjustments; (i) The Closing Stock on 31-12-81 was Rs. 4,200 (ii) Write off Rs. 80 as bad debts and create a reserve for bad debts at 5% on sundry debtors. Three months rent is outstanding. (Madras, B.B.M; March 1997] [Ans: Gross Profit - Rs. 4,470; Net Profit ~ Rs, 2,595; Balance Sheet Total — Rs. 14,285]yr x 553 Financial Accounting From the following balances as at 31st December 1994 of a trader, Prepare a Trading i & and Profit & Loss A/c for the year 1994 and a Balance Shect as on that date: Hay | Rs, Rs. | S Salaries 5,500 ] Creditors 9,500 | | Rent 1,300 | Sales 32,000 | | Osh 1,000 | Capital 30,000 } | Debtors 40,000 | Loans 10,000 Trade expenses 600 Purchases 25,000 Advances 2,500 Bank balance 5,600 | 81,500 81,500 Adjustments: (The Closing stock amounted to Rs 9,000, | Gi) One month's Salary is outstanding. (iii) One month's rent has been paid in advance. (iv) Provide 5 per cent for doubtful debts. (Madras, B.Com, March 1997] [Ans: Gross Profit - Rs. 16,000; Net Profit — Rs. 6,200; Balance Sheet Total ~ Rs. 56,200] . Prepare a Trading and Profit & Loss A/c for the year ended 31st December 1995 and a Balance Sheet as on that date from the following Trial Balance of Mr. Akilan: Rs. Rs. } Drawings 45,000 | Capital 1,60,000 Goodwill 90,000. | Bills Payable 35,000 Buildings 60,000 | Creditors 70,000 Machinery 40,000 | Purchase Returns 2,650 Bills Receivable 6,000 | Sales 2,18,000 Opening Stock 40,000 Purchases $1,000 Wages 26,000 Carriage Outwards 500 Carriage Inwards 1,000 Salaries 35,000 Rent 3,000 Discount 1,100 Repairs 2,300 Bank 25,000 Cash 1,600 Debtors 45,000 Bad debts 1,200 Sales Returns 2,000 Furniture 6,000 Advertisements a General Expenses pe : 585,650 4,85,650Final Accounts 554 Adjustments: (Closing Stock was Rs, 35,000. Gi) Depreciate Machinery and furniture by 10 (iii) Outstanding wages Rs. 1,500. (iv) Prepaid advertisement Rs. 500. (v)_ Create 5% on debtors for bad debts as provision. (Madras, B.Sc, May 1997] [Ans: Gross Profit - Rs. 1,34,150; Net Profit — Rs. 80,750; Balance Sheet Total ~ Rs. 3,02,250] 8. From the following Trial Balance of Thiru, Rehman as on 31st March 1995, Prepare Trading and Profit & Loss A/c and Balance Sheet taking into account the adjustments: Debit balances Rs. Credit Balances Rs. Land and Buildings 42,000 | Capital 62,000 Machinery 20,000 | Sales 98,780 Patents 7,500 | Retum Outwards 500 Stock 1-4-1994 5,760 ‘Sundry Creditors 6,300 Sundry debtors 14,500 | Bills payable 9,000 Purchases 40,675 Cash in hand 540 Cash at Bank 2,630 Retum Inwards 680 Wages 8,480 Fuel & power 4,730° Carriage on Sales 3,200 Carriage on Purchases 2,040 Salaries 15,000 General Expenses 3,000 Insurance 600 Drawings 5,245 1,76,580 7776580 Adjustments: (i) Stock on 31-3-1995 was Rs. 6,800. (ii) Salary outstanding Rs. 1,500. (iii) Insurance Prepaid Rs. 150. (iv) Depreciate machinery @ 10% and patents @ 20%. (v) Create a provision of 2% on debtors for bad debts. Madras, BSc, Oct. 1996] [Ans: Gross Profit — Rs. 43,715; Net Profit — Rs. 16,775: Balance Sheet Total — Rs. 90,330] pila isitionsr- Financial Accounting Gait March 2004. the following Trial Balance was extracted from the books | [ | of | Dr Cr. | Capital a 56, be api F 00 | Plant & Machinery 30,000 ” } Sales . Purchases 60,000 ee Returns 1,000 150 Opening Stock 30,000 s Discounts 350 200 Bank Charges 15 . Sundry Debtors 45,000 E Sundry Creditors a a Salaries 6,800 ae Manufecturing wages 10,000 = Carriage Inwards 750 a Carriage Outwards 1,200 . Bad debts provision a 525 Rent, Rates and taxes 10,000 x Advertisement 2,000 oe Cesh in hand 900 - Cash st Bank 6,000 2 2,54,075 2,54,075 Youere asked to prepare the final accounts for the year ended 31st March 2004 and tte Balance Shet as on that date. The following adjustments are reauired: (@ Closing Stock Rs. 35,000. (i) Depreciation of plant at 6%. (ii) Bed debts provision to be adjusted to Rs. $00. (iv) Interest on Capital to be allowed at 10% pa. (V) 25% of the profit is to be carried to Reserve fund. [Madras, BCS April 2004 B.Com, Oct. 1996] [Ans : Gross Profit ~ Rs. 1,11,000; Net Profit ~ Rs. 81,600; Balance Sheet Total — Rs. 1.61,6001 10. The following Trial Balance of Arun as at 31st Deo, 2004 is given to you. Prepare final Accounts: Debit Balances Rs. Credit Balances Rs. Opening Stock 15,500 | Capital 90,000 Land & Buildings 35,000 | Sundry Creditors 9,600 Machinery 50,000 | Purchase Returns 2,100 Fumiture & fixtures 5,000 | Sundry income 1,200 Purchases 1,06,000 | Reserve for bad debts 300 Salaries 11,000’ | Sales 2,07,000 General expenses 2,500su Final Accounts 556 Rent 3,000 Postage & Telegrams 1,400 Stationery 1,300 Wages 26,000 Freight on purchases 2,800 Carriage on Sales 4,000 Repairs 4,500 Sundry Debtors 30,000 Bad debts 600 Cash in hand 100 Cash at Bank 6,400 Sales Retums. 5,100 3,10,200 3,10,200 Adjustments: i) Wages Outstanding Rs. 2,100. ; é Included in General Expenses is insurance premium, Rs, 600 paid forthe year ending 31st March. 2005 Gili) Provision of 5% on debtors tor Bad debts is required. =. (iv) Depreciate: land and buildings 2%, machinery 10% and furniture & fixtures 15%. (¥) Closing Stock value Rs. 14,900. (Madras, BCS (Sem-old-SY1A) Nov. 2004 B.Com., March 1995} | {Ans: Gross Profit - Rs. 66,500; Net Profit - Rs. 31,900; Balance Sheet Total ~ Rs. 1,33,600] 11. The following are the balances extracted from the ledger of Karikalan as on December 31.1993: | Rs. Rs. Karikalan's' Capital A/c 20,000 | Reserve for discount on debtors 200 4 Drawings 3,500 | Loan @ 9% 5,000 4 Buildings 10,000 | Sataries 4400 | Machinery 2,500 | Wages 7500 | Fumiture & fittings 600 | Rent 2750 Opening Stock 12,500 | Travelling expenses 1250 | Cycle. 400 | Postage'& telegrams 135. 9 Purchases 75,000 | Rates & taxes 9 4 Sales 1,25,000 | Carriage Inwards 2500 | Sales Returns 5,000 | Carriage Outwards Duty paid on purchases 15,000} Interest paid Sundry debtors 10,000 | General charges Sundry creditors 7,500} Bad-debts Reserve for bad & doubtful Cash in hand debts 400 | Cash at Bank.- __——_______ Tollowing adjustments are necessary: tock on 31-12-93 Rs. 14,000, ‘The (@) St {b) Provide the following outstanding: Salary Rs. 400; Rent Rs, 250; Wages Rs. 600 and Interest Rs. 75 © Financial Accounting Maintain the reserve for doubtful debts at 5% and the i pases nae col reserve for discount on (@) Provide depreciation for Building 2.59%, Machinery 10%, Furniture-6% ynd Qyele 15%. prepare Trading & Profit and Loss A/c and the Balance Sheet for the year éaded 31-12-93. (Madras, B.Sc., May 1995] [Ans: Gross Profit. — Rs. 20,900; Net Profit Rs. 8,491.50; Balance Sheet Total — Rs. 38,816.50] 12, Prepare Trading & Profit and Loss Account and Balance Sheet as on 31st March 1994, Rs. Rs. S.Chandra's Capital A/c 1,19,400 | Manufacturing wages 40,970 S.Chandra's Drawings A/c 10,550 | Sales 3,56,430 Sundry Creditors 59,630 | Return Inwards 2,780 6% Loan A/c (Credit) 20,000 | Salaries 11,000 Cash in hand 3,030 | Rent & taxes 5,620 Cash at Bank : _. 18,970 | Interest & Discount (Dr) 5,870 “Sundry debtors (inclisding met Travelling Expenses 1,880 "Kalpana for dishonoured Repairs & Renewals 3,370 bill of Rs 1,000) 62,000 | Insurance (including Bills Receivable 9,500 premium of Rs 300 pa Provision for doubtful debts 2,500 paid up to 30th Sep.1994) 400 Fixtures & fittings 8,970 | Bad debts 3,620 Stock Ist April,1993 * 9,680 | Commission Received 5,640 Purchases 2,56,590 | Plant & Machinery 28,800 Adjustments: 0 purchased last year. (vi) (vii) viiiy Stock on hand on 31st March 1994 was Rs. 1,28,960. Write off half of Kalpana's dishonoured bill. , Create a provision of 5% on sundry debtors. Charge 5% interest on capital. Manufacturing wages include Rs. 1,200 for erection of nev :schinery Depreciate plant & Machiriery by 5% and fixtures & fittings by 10% p.a. Commission earned but not received amount to Rs. 600. Interest on loan for the last two months is not paid. [Madras B.Com., BBA etc, Ap 2 [Ans : Gross Profit - Rs. 96,570; 1005; B.Com., Sept. 1996] Net Profit -Rs. 61,583; Balance Sheet Total — Rs. 2,56,233]