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Chapter 18 Final Account Without Adjuestments
Chapter 18 Final Account Without Adjuestments
Chapter 18 Final Account Without Adjuestments
Final Accounts
1. From the following information, Prepare the trading account for the year ended 31st
March,2010:
Adjusted purchases Rs15,00,000; sales Rs21,40,000; Returns inwards Rs40,000; Freight and
packing Rs15,000; Packing Expenses on Sales Rs20,000; Depreciation Rs36,000;Factory
Expenses Rs60,000; Closing Stock Rs1,20,000.
Ans.:- Gross Profit Rs 5,25,000.
2. Ascertain cost of Goods Sold and Gross Profit from the following: Rs.
Opening stock 32,000
Purchases 2,80,000
Direct expenses 20,000
Indirect expenses 45,000
Closing stock 50,000
Sales 4,00,000
Sales returns 8,000
Ans.:- Cost of goods sold Rs 2,82,000; Gross profit Rs 1,10,000.
6. From the following information, prepare the trading account for the year ended 31 st
March,2010: Rs.
Cost of goods sold 12,10,000
Opening stock 50,000
Closing stock 80,000
Carriage inwards 15,000
Sales 15,00,000
Ans.:- Gross profit Rs2,90,000.
7. Calculate gross profit and cost of goods sold from the following information:
Net sales Rs12,00,000
Gross profit 33 1/3% on sales
Ans.:- Gross profit Rs.4,00,000; Cost of goods sold Rs.8,00,000.
8. Calculate the gross profit and cost of goods sold from the following information:
Net sales Rs9,00,000
Gross profit is 20% on cost.
Ans.:- Gross Profit : Rs1,50,000; Cost of goods sold ; Rs7,50,000.
12. Calculate Gross profit and cost of goods sold from the following information :
Net Sales Rs. 1,00,000.
Gross profit is 25% on cost.
Ans. Gross profit = Rs. 20,000; Cost of goods sold = Rs. 80,000)
13. Opening stock Rs. 5,000; sales Rs. 16,000; carriage inward Rs. 1,000; Sales return Rs.
1,000; Gross profit Rs. 6,000; purchases Rs. 10,000; and purchases return Rs. 900.
Calculate the closing stock and the cost of goods sold.
Ans. Closing stock = Rs. 6,100; Cost of goods sold = Rs .9,000)
15. From the following balances taken from the books of Simmi and Vimmi Ltd. for the
year ending March 31, 2003, calculate the gross profit.
Rs.
Closing stock 2,50,000
Net sales during the year 40,00,000
Net purchases during the year 15,00,000
Financial Statements - I
Opening stock 15,00,000
Direct expenses 80,000
Ans. Gross profit Rs.11,70,000.
16. From the following balances extracted from the books of M/s Ahuja and Nanda.
Calculate the amount of:
(a) Cost of goods available for sale
(b) Cost of goods sold during the year
(c) Gross Profit
Opening stock 25,000
Credit purchases 7,50,000
Cash purchases 3,00,000
Credit sales 12,00,000
Cash sales 4,00,000
Wages 1,00,000
Salaries 1,40,000
Closing stock 30,000
Sales return 50,000
Purchases return 10,000
Ans. (a) Rs. 11,65,000 ; (b) Rs.11,35,000 ; (c) Rs.4,15,000
17. Cash sales of a business in a year were Rs. 29,000 and credit sales Rs. 31,000. The
cost of goods sold (Including Direct expenses) works out at Rs. 52,000. Find out the
gross profit.
Ans. Gross profit = Rs. 8,000
19. S. Kumar & Sons close their financial books on 31st December. Stock taking takes
about two weeks. In 2012, the value of closing stock thus arrived at was Rs. 25,000.
During the two weeks in which stock taking took place purchases made were Rs.
1,000 and sales totaled Rs. 4,000. The firm makes a gross profit of 30% on sales.
Ascertain the value of closing stock on 31st December, 2012.
Ans. The value of closing stock = Rs. 26,800
20. Capital of X at the beginning of the year was Rs. 70,000. During the year his business
earned a profit of Rs. 20,000, he withdrew Rs. 7,000 for his personal use. He sold
ornaments of his wife for Rs. 20,000 and invested that amount into the business. Find
out his capital at the end of the year.
Ans. Capital at the end = Rs. 1,03,000
23. Calculate the amount of gross profit and operating profit on the basis of the following
balances extracted from the books of M/s Rajiv & Sons for the year ended March 31,
2005.
Rs.
Opening stock 50,000
Net sales 11,00,000
Net purchases 6,00,000
Direct expenses 60,000
Administration expenses 45,000
Selling and distribution expenses 65,000
Loss due to fire 20,000
Closing stock 70,000
Ans. Gross profit Rs.4,60,000. Operating profit Rs.3,50,000
24. Operating profit earned by M/s Arora & Sachdeva in 2005-06 was Rs.17,00,000. Its
non-operating incomes were Rs.1,50,000 and non-operating expenses were
Rs.3,75,000. Calculate the amount of net profit earned by the firm.
Ans. Net profit Rs.14,75,000
28. Prepare the Trading account of Rajeev Sharma from the following balances for the
year ending 31st March, 2012. Rs.
Opening Stock 60,255
Purchases 1,99,080
Sales 2,81,505
Returns Outward 1,455
Returns Inward 1,875
Manufacturing Wages 46,875
Carriage Inward 15,175
Coal. Gas and Water 1,100
Factory Fuel & Power 1,305
Closing Stock 63,705
Ans. Gross Profit = Rs. 21,000
29. From the following information extracted from the books of Rustamji. Prepare the
Trading Account for the year ending March 31, 2012. Rs.
Sales 50,000
Sales return 150
Salaries and Wages 4,000
Carriage Inward 2,000
Returns Outward 250
Freight Inward 2,500
Office expenses 2,000
Octroi 5,000
Fuel 1,000
Insurance 3,721
Cash 1,500
Purchases 40,000
Rent 750
Ans. Gross profit = Rs. 2,600
30. Following balances were extracted from the books of Shri Rajesh on 30th June, 2012.
Name of Accounts Rs.
Capital 24,500
Drawings 2,000
General expenses 2,500
Building 11,000
Stock 16,200
Power 2,240
Insurance 1,315
Wages 7,200
Debtors 6,280
Charity 105
Bad debts 550
Sales 63,360
Purchases 47,000
Scooter 2,000
Bad debts provision 900
Bills payable 3,850
Cash 80
Bank Overdraft 3,300.
th
Prepare Trading A/c for year ended 30 June, 2012. Closing Stock Rs. 23,500
Ans. Gross Profit = Rs. 16,220
31. Prepare the Trading Account from the transactions given below:
Rs. Rs.
Opening stock 2,300 Purchases Return 240
Purchases 2,900 Closing Stock 4,770
Sales Return 50 Carriage Inwards 10
Sales 2,540 Depreciation 200
Ans. Gross Profit Rs.2,290
33. From the following information, Prepare the Trading Account for the year ended 31st
March, 2011:
Rs. Rs.
Stock (As on 1.4.2010) 40,000 Return Outwards 80,000
Purchases 4,00,000 Wages and Salaries 50,000
Sales 3,80,000 Return Inwards 20,000
Carriage Inwards 20,000 Stock (31.3.2011) 1,30,000
Ans. Gross Profit Rs. 60,000.
34. From the following information, prepare the Trading Account for the year ended 31 st
March, 2011:
Adjusted Purchases Rs 6,60,000; Sales Rs 7,44,000; Closing Stock Rs 50,400; Freight
and Carriage Inwards Rs 3,600; Wages Rs 6,000; Freight and Cartage Outwards Rs
2,000.
Ans. Gross Profit Rs.1,24,800.
36. From the following information, prepare the Profit and Loss Account for the year
ended 31st March, 2011:
Rs Rs.
Gross profit 1,20,000 Discount Received 6,000
Rent 5,000 Printing and Stationery 4,000
Salary 35,000 Legal Charges 10,000
Commission paid 19,000 Bad Debts 2,000
Interest on loan 5,000 Loss by Fire 6,000
Advertisement 8,000 Depreciation 4,000
Interest received 8,000
Ans. Net Profit Rs. 36,000.
38. Prepare the Trading and Profit and Loss Account and Balance Sheet of Jagat Shah as
at 31st March, 2011 from the following balances:
Rs. Rs.
Capital (Cr.) 3,600 Salaries 600
Machinery 700 General Expenses 200
Sales 8,200 Rent 500
Purchases 4,000 Purchases Return 50
Sales Return 100 Debtors 3,000
st
Stock on 1 April, 2010 1,000 Cash 400
Drawing 400 Carriage Outwards 200
Wages 1,000 Advertising 200
Carriage Inwards 50 Creditors 500
The Closing Stock was valued at Rs 2,000.
Ans. Gross Profit Rs. 4,100; Net Profit Rs. 2,400; Balance Sheet Rs. 6,100.
39. From the following balances, prepare the Final Accounts of M/s. Raja & Sons for the
year ended 31st March, 2011:
Salary Rs 5,400; Insurance Rs 2,500; Cash Rs 400; Purchases Rs 84,170; Rent
Received Rs 3,150; Drawings Rs 2,100; bill Payable Rs 3,900; Debtors Rs 38,080;
Stock (1.4.2010) Rs 29,500; Bank Overdraft Rs 9,700; Carriage Rs 2,200; Creditors
Rs 4,200; Trade Expenses Rs 4,900; Sales Return Rs 4,700; Machinery Rs 12,000;
Wages Rs 45,000; Sales Rs 1,47,200; Purchases Return Rs 3,900; Capital Rs 58,900;
Closing Stock (31st March, 2011) Rs 36,200.
Ans. Gross Profit Rs. 21,730; Net Profit Rs.12,080; Balance Sheet Rs.82,780.
40. From the following balances, Prepare the Trading and Profit and Loss Account and
the Balance Sheet:
Debit Balances: Rs. Debit Balances (Contd.): Rs.
Machinery 35,000 Rent 4,500
Debtors 27,000 Sundry Expenses 2,000
Drawings 9,000 Carriage 1,500
41. From the following balances taken from the books of Hari & Co., prepare the Trading
and Profit and Loss Account for the year ended 31st March, 2011 and the Balance
Sheet as at that date:
Rs. Rs.
Capital 3,50,000 Salaries 11,100
Building 1,87,500 Discount Allowed 2,000
st
Machinery 92,500 Stock (1 April, 2010) 1,65,000
Debtors 70,000 Bills Payable 50,000
General Expenses 8,000 Sales 6,35,000
Rent Paid 37,100 Purchases 4,68,500
Proprietor’s Drawings 6,500 Wages 25,000
Electricity Changes 1,900 Cash in Hand 18,000
Carriage Inwards 8,500 Sundry Creditors 1,00,000
Cash at Bank 30,000 Return Inwards 4,500
Return Outwards 1,100
Closing Stock was Rs 1,82,100.
Ans. Gross Profit Rs. 1,46,700; Net Profit Rs.86,600; Balance Sheet Rs. 5,80,100.
42. Prepare trading and profit and loss account and balance sheet as on March 31, 2005 :
Account Title Debit Account Title Credit
Machinery 27,000 Capital 60,000
Sundry debtors 21,600 Bills payable 2,800
Drawings 2,700 Sundry creditors 1,400
Purchases 58,500 Sales 73,500
Wages 15,000
Sundry expenses 600
Rent & taxes 1,350
Carriage inwards 450
Bank 4,500
Openings stock 6000
Closing stock as on March 31, 2005 Rs.22,400
Ans. Gross Profit Rs. 15,950; Net Profit Rs.14,000; Balance Sheet Rs. 75,500.
43. From the following balances, prepare the Trading and Profit and Loss Account and
the Balance Sheet:
Rs. Rs.
Capital Account 10,000 Return Outwards 500
Plant and Machinery 4,000 Rent 400
Sundry Debtors 2,400 Sales 16,400
Sundry Creditors 1,200 Manufacturing Expenses 800
Drawings 1,200 Trade Expenses 700
44. The Trial Balance of Chatter Sen on 31st March, 2011 revealed the following
balances:
Debit Balances: Rs. Debit Balance (Contd.): Rs.
Plant and Machinery 90,000 Freight Out 1,200
Purchases 58,000 Rent, Rates and Taxes 2,000
Sales Return 1,000 Advertisement 2,000
Opening Stock 40,000 Cash at Bank 6,900
Discount Allowed 350 Credit Balances:
Bank Charges 75 Capital A/c 1,10,000
Sundry Debtors 45,000 Sales 1,27,000
Salaries 6,800 Purchases Return 1,275
Wages 10,000 Discount Received 800
Freight In 750 Sundry Creditors 25,000
The stock on 31st March, 2011 was valued at Rs 35,000.
Prepare the Trading and Profit and Loss Account for the year ended 31st March, 2011
and the Balance Sheet as at that date.
Ans. Gross Profit Rs. 53,525; Net Profit Rs.41,900; Balance Sheet Rs. 1,76,900.
45. John Smith carries on business as a copy manufacturer. Prepare his Profit and Loss
Account and Balance Sheet from the following balances as at 31st March, 2011:
Rs. Rs.
Capital 6,000 Boxes, Labels, etc. 500
Withdrawals (Drawings) 1,000 Rates and Taxes 40
Sales 10,000 Bills Receivable 300
Paper (bought) 2,000 Insurance 150
Loan or Mortgage (Cr.) 1,000 Carriage 10
Machinery and Plant 1,500 Incidental Expenses 200
Land and Building 2,000 Stock on 1st April, 2010 2,000
Creditors 500 Cash at Bank 1,250
Wages 5,000 Cash in Hand 50
Debtors 1,500
Stock on 31st March, 2011 was Rs 1,500.
Ans. Gross Profit Rs. 1,990; Net Profit Rs.1,600; Balance Sheet Rs. 8,100.
46. The Trial balance of Bihari Lal on 31st March, 2012 revealed the following balances :
Rs.
Debit Balance:
Plant and Machinery 90,000
Purchases 58,000
Sales Returns 1,000
Opening Stock 40,000
47. From the following Trial Balance of Pardip, prepare Trading and Profit and Loss
account and Balance sheet on 31st December, 2012 :
Rs.
Debit Balances:
Furniture and Fittings 7,700
Bills receivable 10,000
Sundry Debtors 76,720
Cash in hand 5,250
Interest 3,400
Wages 27,890
Goodwill 25,000
Carriage 1,720
Salaries 5,000
Insurance 600
Opening Stock 38,500
Audit Fee 1,000
Law Costs 710
Drawings 13,200
Purchases 61,900
Repairs 3,300
Credit Balance:
Capital 1,05,000
Commission 9,000
Sales 1,30,000
Returns Outward 2,570
48. From the following balances of Seth Tent House, prepare Trading and Profit and loss
account and Balance sheet as on 31st Dec., 2012.
Name of Account Dr. (Rs.) Cr. (Rs.)
Capital 10,000
Plant and Machinery 14,000
Furniture and Fixtures 200
Debtors and Creditors 2,400 1,700
Drawings A/c 1,000
Purchases 10,500
Wages 5,000
Cash in hand 200
Cash at Bank 800
st
Stock on 1 January, 2012 2,000
Returns Outward 500
Rent and Taxes 400
Depreciation 420
Sales 26,800
Manufacturing Expenses 800
Travelling expenses 100
Sundry expenses 400
Bad Debts 150
Printing and Stationery 50
Carriage 130
Returns Inward 400
Repairs 50
Total 39,000 39,000
The values of stock on that date was Rs. 11,355.
Ans. Gross Profit = Rs. 19,825; Net Profit = Rs. 18,255; Total of balance sheet = 28,955
49. From the following balances prepare final accounts of M/s Mangal & Sons for the
year ending 31st December, 2012:
Salary Rs. 5,400; Insurance Rs. 2,500; Cash Rs. 400; Purchases Rs. 84,170; Rent received Rs.
3,150; Drawings Rs. 2,100; Bills payable Rs. 3,900; Debtors Rs. 38,080; Stock (1-1-2012) Rs.
29,500; Bank overdraft Rs. 9,700; Carriage Rs. 2,200; Creditors Rs. 4,200; Trade expensese
Rs. 4,900; Sales return Rs. 4,700; Machinery Rs. 12,000; Wages Rs. 45,000; Sales Rs.
1,47,200; Purchases Return Rs. 3,900; Capital Rs. 58,900; Closing Stock (31-12-2012) Rs.
36,200.
Ans. Gross Profit = Rs. 21,730; Net Profit = Rs. 12,080; Balance Sheet Total = 86,680
51. Prepare Final Accounts from the following balances of a firm at the end of December
2012.
Name of Accounts Debit (Rs.) Credit (Rs.)
Capital - 10,000
Cash in hand 1,500 -
Bank Overdraft - 2,000
Purchases and Sales 12,000 15,000
Returns 1,000 2,000
Office expenses 2,500 -
Taxes and Insurance 500 -
Discount 500 1,000
Debtors and Creditors 5,000 2,000
Commission - 500
Investments 4,000 -
Stock ( Opening) 3,000 -
Drawings 1,400 -
Furniture 600 -
Bill Receivable 3,000 2,500
Ans. Gross Profit Rs. 20,000; Net Profit Rs. 18,000; Balance Sheet Rs. 33,100
52. From the following information extracted from the books of M/s Pragati printers. Pass
the necessary closing entries and prepare a Profit & Loss Account and Balance sheet.
Dr. Cr.
Particulars Amount (Rs) Particulars Amount (Rs.)
Opening Stock 12,500 Sales 1,89,000
Depreciation 7,000 Commission Received 2,000
Carriage Inward 700 Capital 1,71,300
Furniture 8,000 Creditors 17,500
Carriage Outward 500 Bills Payable 5,000
Plant & Machinery 2,00,000 Returns Outward 13,800
53. The following trial balance is extracted from the books of M/s Ram on March 31,
2005. You are required to prepare trading and profit and loss account and the balance
sheet as on date:
Account Title Debit Account Title Credit
Debtors 12,000 Apprenticeship premium 5,000
Purchases 50,000 Loan 10,000
Coal, gas and water 6,000 Bank overdraft 1,000
Factory wages 11,000 Sales 80,000
Salaries 9,000 Creditors 13,000
Rent 4,000 Capital 20,000
Discount 3,000
Advertisement 500
Drawings 1,000
Loan 6,000
Petty cash 500
Sales return 1,000
Machinery 5,000
Land and building 10,000
Income tax 100
Furniture 9,900
Ans. Gross Profit: Rs. 12,000, Net Profit: Rs. 500, Total Balance sheet: Rs. 43,400
54. The following is the trial balance of Manju Chawla on March 31, 2005. You are
required to prepare trading and profit and loss account and a balance sheet as on date :
Account title Debit Credit
Opening stock 10,000
Purchases and sales 40,000 80,000
Returns 200 600
Productive wages 6,000
Dock and Clearing charges 4,000
Donation and charity 600
Delivery van expenses 6,000
Lighting 500
Sales tax collected 1,000
55. The following is the trial balance of Mr. Deepak as on March 31, 2005. You are
required to prepare trading account, profit and loss account and a balance sheet as on
date:
Account Title Debit Account Title Credit
Drawings 36,000 Capital 2,50000
Insurance 3,000 Bills payable 3,600
General expenses 29,000 Creditors 50,000
Rent and taxes 14,400 Discount received 10,400
Lighting (factory) 2,800 Purchases return 8,000
Travelling expenses 7,400 Sales 4,40,000
Cash in hand 12,600
Bills receivable 5,000
Sundry debtors 1,04,000
Furniture 16,000
Plant and Machinery 1,80,000
Opening stock 40,000
Purchases 1,60,000
Sales return 6,000
Carriage inwards 7,200
Carriage outwards 1,600
Wages 84,000
Salaries 53,000
Closing stock Rs. 35,000.
Ans. Gross profit: Rs.1,83,000, Net profit : Rs. 85,000, Total balance sheet: Rs. 3,52,600
56. Prepare trading and profit and loss account and balance sheet from the following
particulars as on March 31, 2005.
Account title Dedbit Credit
Purchases and Sales 3,52,000 5,60,000
Return inwards and Return outwards 9,600 12,000
Carriage inwards 7,000
Carriage outwards 3,360
57. From the following trial balance of Mr. A. Lal, prepare trading, profit and loss
account and balance sheet as on March 31, 2005
Account title Dedbit Credit
Stock as on April 01, 2005 16,000
Purchases and Sales 67,600 1,12,000
Returns inwards and outwards 4,600 3,200
Carriage inwards 1,400
General expenses 2,400
Bad debts 600
Discount received 1,400
Bank over draft 10,000
Interest on bank overdraft 600
Commission received 1,800
Insurance and taxes 4,000
Scooter expenses 200
Salaries 8,800
Cash in hand 4,000
Scooter 8,000
Furniture 5,200
Building 65,000
Debtors and Creditors 6,000 16,000
Capital 50,000
Closing stock Rs. 15,000.
Ans. Gross Profit: Rs. 40,600, Net profit: Rs. 27,200, Total balance sheet: Rs. 1,03,200
58. Prepare trading and profit and loss account and balance sheet of M/s Royal Traders
from the following balances as on March 31, 2005.
Account Title Debit Account Title Credit
59. Prepare trading and profit and loss account from the following particulars of M/s
Neema Traders as on March 31, 2005.
Account Title Debit Account Title Credit
Buildings 23,000 Sales 1,80,000
Plant 16,930 Loan 8,000
Carriage inwards 1,000 Bills payable 2,520
Wages 3,300 Bank overdraft 4,720
Purchases 1,64,000 Creditors 8,000
Sales return 1,820 Capital 2,36,000
Opening stock 9,000 Purchases return 1,910
Machinery 2,10,940
Insurance 1,610
Interest 1,100
Bad debts 250
Postage 300
Discount 1,000
Salaries 3,000
Debtors 3,900
Stock on March 31, 2005 Rs.16,000.
Ans. Gross profit Rs.17,850, Net profit Rs. 10,590, Total of balance sheet Rs.2,69,830
60. From the following balances of M/s Nilu Sarees as on March 31, 2005. Prepare
trading and profit and loss account and balance sheet as on date.
Account Title Debit Account Title Credit
Opening stock 10,000 Sales 2,28,000
Purchases 78,000 Capital 70,000
Carriage inwards 2,500 Interest 7,000
Salaries 30,000 Commission 8,000
Commission 10,000 Creditors 28,000
Wages 11,000 Bills payable 2,370
61. Prepare trading and profit and loss account of M/s Sports Equipments for the year
ended March 31, 2006 and balance sheet as on that date:
Account title Debit Credit
Opening stock 50,000
Purchases and sales 3,50,000 4,21,000
Sales returns 5,000
Capital 3,00,000
Commission 4,000
Creditors 1,00,000
Bank overdraft 28,000
Cash in hand 32,000
Furniture 1,28,000
Debtors 1,40,000
Plants 60,000
Carriage on purchases 12,000
Wages 8,000
Rent 15,000
Bad debts 7,000
Drawings 24,000
Stationery 6,000
Travelling expenses 2,000
Insurance 7,000
Discount 5,000
Office expenses 2,000
Closing stock as on March 31, 2006 Rs.2,500.
Ans. Gross loss Rs. 1,500, Net loss Rs. 41,500 , Total balance sheet Rs.3,62,500