Time : 1.

5
1.5 hrs Topic : Final Accounts MM: 25

Q-1) Mr. Shyamal runs a factory, which produces detergents. Following details were available in
respect of his manufacturing activities for the year ended 31-03-2019. ·

Opening work-in-progress (9000 units) 26,000

Closing work-in-progress (14,000 units) 48,000
Opening inventory of Raw Materials 2,60,000
Closing inventory of Raw Materials 3,20,000
Purchases 8,20,000
Hire charges of Machinery @ ₹ 0.70 per unit manufactured
Hire charges of factory 2,60,000
Direct wages-contracted@ ₹ 0.80 per unit manufactured
and @ ₹ 0.40 per unit of closing W.I.P.
Repairs and maintenance 1,80,000
Units produced - 5,00,000 units
You are required to prepare a Manufacturing Account of Mr. Shyamal for the year ended 31-03-
2019.
(5 Marks)

Q-2) Mr. Birla is a proprietor engaged in business of trading electronics. An excerpt from his Trading &
P&L account is as follows:
Trading and P&L A/c for the year ended 31st March, 2017

Particulars ₹ Particulars ₹

To Cost of Goods Sold 45,00,000 By Sales C

To Gross Profit c/d D

E E

To Rent A/c 26,00,000 By Gross Profit b/d D

To Office Expenses 13,00,000 By Miscellaneous Income E

To Selling Expenses B

To Commission to Manager (on Net Profit 2,00,000

before charging such commission)

To Net Profit A

G 60,00,000

Commission is charged at the rate of 10%.

(5 marks)

-CA. DEEPAK KAPOOR CA-

CA- FOUNDATION TEST
Q-3) The following is the Trial Balance of Mr Smart Mind as at 31st March, 2018:

Particulars Dr.(
Dr.( ₹ ) Particulars Cr.(
Cr.( ₹ )

Plant & Machinery Creditors 1,00,000

(Purchased on 1.7.2017) 1,90,000 Bills Payables 5,600

Furniture & Fixtures 10% Loan From Bank

(Purchased on 1.7.2017) 1,00,000 (taken on 1.7.2017) 50,000

Opening Stock 75,000 Capital Account 5,19,000

Debtors 2,07,000 Sales 6,30,000

Bills Receivables 10,000 Purchases Returns 5,000

12% Investments Discount Earned 1,000

(purchased on 1.7.2017) 50,000 Bad Debts Recovered 2,500

Cash in Hand 5,000 Interest 3,000

Cash at Bank 10,000 Commission 3,750

Drawings 10,650

Purchases 5,25,000

Sales Returns 10,000

Wages 18,500

Carriage Inwards 500

Carriage Outwards 350

Rent 3,000

Insurance 3,600

Salaries 11,200

Discount Allowed 2,000

Bad Debts 5,000

Interest 2,500

Selling & Distribution Expenses 15,800

Income Tax paid 1,000

Loose Tools 3,750

Buildings 60,000

13,19,850 13,19,850

-CA. DEEPAK KAPOOR CA-

CA- FOUNDATION TEST
Additional Information:
(a) Closing Stock as on 31st March 2018 was ₹ 93,600. Loose Tools are valued at ₹ 1,250.
(b) Rent is payable at the rate of ₹ 300 per month. Insurance Premium was paid for the year
ending on 30th June, 2018. ₹ 1,250 is due for interest on Bank Loan.
(c) Accrued Interest on investments amounted to ₹ 1,500. One-third of the commission
received is in respect of work to be done next year.
(d) Provide for depreciation on Plant & Machinery @ 10% p.a. Write 10% off the Furniture &
Fixtures. Depreciate Buildings by 5%.
(e) Write off further ₹ 5,000 as bad. Create Provision for discount on Debtors @ 2%.Create a
Provision for Doubtful debts @ 10%.
(f) A fire occurred on 25th March 2018 in the godown and stock of ₹ 1,000 was destroyed, it
was fully insured but the insurance company admitted the claim to the extent of 60% only.
(g) Goods costing ₹ 2,000 were taken by the proprietor for his personal use but no entry has
been made in the books of accounts.
(h) Goods costing ₹ 3,000 were distributed as free samples but no entry has been made in the
books of accounts.
(i) Manager is entitled to a commission of 5% on Net Profit after charging his commission.
0) Wages include a sum of ₹ 4,000 spent on the erection of a cycle shed for employees and
customers. Wages ₹ 10,000 paid for erection of machinery have been debited to Wages Account.
(k) Remuneration of ₹ 2,000 paid to Sh. B. Barua, a temporary employee, stands debited to
his personal account.
Required: Prepare Trading and Profit and loss Account for the year ending on 31st March, 2018
and a Balance Sheet as at 31st March, 2018.
(15 Marks)

All the Best 

‘’ Work hard silently, lets success make the noise”

-CA. DEEPAK KAPOOR CA-

CA- FOUNDATION TEST