Accounting Fundamentals – Practice Worksheet – 7

1. Prepare a trading account of Rajesh Kumar for the year ending 31st March 2019 from
the following particulars:
Stock of goods on 1/4/2018 90,000
Purchases – Cash 60,000
- Credit 6,50,000
Sales – Cash 36,000
- Credit 8,20,000
Returns to suppliers 3,000
Returns by Customers 15,000
Cartage 400
Freight Inwards 1,300
Wages 3,600
Factory rent 1,400
Additional Info:
Stock of goods on 31/3/2019 60,400

2. From the following balances extracted at the close of the year ended 31st March, 2017,
prepare profit and loss account of Mr. Ashok
Gross Profit 1,01,000
Carriage outwards 2,500
Salaries 5,500
Rent paid 4,100
Fire insurance premium 900
Bad debts 2,100
Depreciation 3,500
Carriage Inwards 1,000
Discount (Dr) 500
Apprentice Premium (Cr) 1,500
Printing and Stationery 250
 Rates and Taxes 350
Travelling Expenses 200
Sundry Expenses 300
Rent Received 1,000

3. Prepare trading and profit and loss account of M/s Suraj Prakash and sons for the year
ending 31st December, 2018 from the following information:
Opening stock 2,00,000
Purchases 2,55.000
Wages 1,00,000
Carriage 5,000
Purchase Returns 13,250
Export duty 9,000
Sales 5,75,000
Coal Expenses 25,000
Sales returns 10,000
Printing and
Stationery 2,250
Salaries 30,000
Rent and Taxes 12,000
Depreciation 3,020
Repairs 6,000
Discount allowed 12,505
Bad debts 9,000
Advertisement 2,500
Gas and Water 1,500
Factory Lighting 2,500
General Expenses 4,000
Additional Info
Closing Stock 3,00,000

4. From the following particulars prepare a balance sheet as on 31st March, 2017

Capital 50,000
Business Premises 55,000
Furniture and Fixtures 2,500
Bills Receivable 3,500
Bills Payable 2,500
Debtors 20,000
Creditors 15,800
Machinery 4,500
Loan to Smith 5,000
Investments 3,000
 Cash in Hand 200
Cash at Bank 3,500
Proprietor’s withdrawals 3,000
Net Profit 38,900
Additional Information:
Closing Stock 7,000

5. From the following trial balance of Mr. Kautilya on 31st March, 2017, prepare Trading
and Profit and Loss account and Balance Sheet

Stock on April 1st,

2016 500
Purchase 19500
Wages 1,400
Insurance 550
Sundry Debtors 15,000
Carriage Inwards 400
Commission (Dr.) 400
Interest on Capital 350
Stationery 225
Return Inward 650
Capital 8,950
Commission (Cr.) 200
Return Outward 250
Trade Expenses 100
Office Fixtures 500
Cash in hand 250
Cash at Bank 2,375
Rent Paid 550
Carriage Outward 725
Sales 25,000
Bills Payable 1,500
Creditors 9,825
Bills Receivable 2,250
The closing stock was valued at
12,500

6. From the following trial balance of Raghuram, prepare trading and profit and loss
account for the year ended 31st March, 2019 and Balance sheet as on that date.

Trial Balance as on 31st March 2019

Debit Credit
Particulars (Rs.) (RS.)
Capital 2,90,000
Drawings 7,600
Purchases 89,600
 Sales 1,50,000
Sales Returns 2,800
Purchase Returns 4,500
Opening Stock 12,000
Wages 8,000
Building 2,20,000
Carriage Inwards 20,000
Trade Expenses 2,000
Advertisement 2,400
Interest 3,500
Taxes and Insurance 1,300
Debtors 65,000
Creditors 12,000
B/R 15,000
B/P 7,000
Cash at Bank 12,000
Cash in Hand 1,900
Salaries 8,000
4,57,000 4,57,000

Adjustments:
a. Stock at cost on 31st March, 2019 was Rs.18,000. Its net realisable value (Market value)
was Rs.15,000.
b. Insurance of Rs.400 was prepaid
c. O/s expenses were: Salaries Rs.2,000, Taxes Rs.1,300
d. Depreciate building at 2% p.a.

7. Prepare trading and profit and loss account and balance sheet as on 31st March 2019.

Capital 1,00,000
Creditors 12,000
Return Outwards 5,000
Sales 1,64,000
Bills Payable 5,000
Plant and Machinery 40,000
Sundry debtors 24,000
Drawings 10,000
Purchases 1,05,000
Return inwards 3,000
Wages 50,000
Cash at Bank 10,000
Repairs 500
 Stock on 1st April, 2018 20,000
Rent 4,000
Manufacturing Expenses 8,000
Trade Expenses 7,000
Bad debts 2,000
Carriage 1,500
Fuel and power 1,000

Adjustments:
a. Closing stock – 14,500
b. Depreciate plant and machinery by 4,000
c. Write off bad debts Rs.5,000
d. Rs.400 is due for repairs.

8. Following is the trial balance of M/s Kasturi Agencies as on 31st March 2013. Prepare
Trading, P&L Account for the year ending 31st March 2013 and a Balance sheet as on
that date.

Particulars Dr. (Rs.) Cr. (Rs.)

Capital 1,00,000
Drawings 18,000
Buildings 15,000
Furniture and Fittings 7,500
Motor Van 25,000
Loan from Hari @12%
Interest 15,000
Interest paid on above 900
Sales 1,00,000
Purchases 75,000
Opening Stock 25,000
Establishment Expenses 15,000
Wages 2,000
Insurance 1,000
Commission Received 4,500
Sundry Debtors 28,100
Bank Balance 20,000
Sundry Creditors 10,000
Interest 3,000
2,32,500 2,32,500

Adjustments:
1. The value of stock on 31st March, 2013 was Rs.32,000
 2. Outstanding Wages Rs.500
3. Prepaid Insurance Rs.300
4. Commission received in advance Rs.1300.
5. Allow interest on capital @10%.
6. Depreciate: Building 2 ½ %, Furniture and Fittings 10%, Motor Van 10%.
7. Charge interest on drawings Rs.500
8. Accrued Interest Rs.500

9. The following trial balance is extracted from the books of Sainath on March 31st 2009.

Trial Balance of Sainath on March 31, 2009

Particulars Dr (Rs.) Cr (Rs.)

Salaries 35,000
General Expenses 7,000
Taxes and Insurance 8,000
Sundry Debtors 25,000
Stock 46,000
Purchases 60,000
Wages 4,000
Sales 1,50,000
Bank Overdraft 17,000
Commission 3,500
Advertising 9,000
Interest 2,000
Furniture 60,000
Building 60,000
Motor Vehicles 80,000
Capital 1,25,000
Bad Debts 2,000
Provision for Doubtful
Debts 2,500
Loan 60,000
Sundry Creditors 40,000
3,98,000 3,98,000

Adjustments:

1. Stock in hand on March 31st 2009 was estimated to be 40,000

2. Depreciate: Building @6%, Motor Vehicles @10%
3. Rs.1,500 is due for interest on loan
4. Write off further Rs.1,000 as bad debts and provision for bad debts is to be made
equal to 6% on sundry debtors.
You are required to prepare Trading and Profit and Loss Account and Balance Sheet as on that
date.
10. From the following Trial Balance extracted from the books of Shri Vishnu Charan
Singh, prepare a Trading and Profit and Loss Account for the year ended 30th
September, 2012 and a Balance Sheet as on that date:
Debit Balances Amount Credit Balances Amount
(Rs.) (Rs.)
Drawings 6,480 Capital Account 1,20,000
Land and Buildings 25,000 Bad Debts Provision (as 2,470
Plant and Machinery 14,270 on 1/10/2011
Furniture and Fixtures 1,250 Sales 91,230
Carriage Inwards 4,370 Discount Account 120
Wages 21,470 Purchase Returns 8.460
Salaries 4,670 Sundry creditors 12,170
Sales Return 1,760 Apprentice premium 500
Bank Charges 140
Coal, Gas and Water 720
Rates and Taxes 840
Purchases 42,160
Bills Receivable 1,270
Trade expenses 1,990
Investments 30,000
Sundry Debtors 37,800
Stock (1st October 2011) 26,420
Fire Insurance 490
Cash at Bank 13,000
Cash in Hand 850

Adjustments:
Charge depreciation on Land and building Account at 2 ½ %, on plant and machinery
account at 10%, and on Furniture and Fixtures Account at 10%. Make a provision of
5% on sundry debtors for doubtful debts. Carry forward the unexpired amounts for fire
insurance Rs.125, Rates and Taxes Rs.240 and Apprentice premium Rs.400. Charge
5% interest on capital and interest on drawings is Rs.300. the value of stock as on 30th
September, 2012 was Rs. 29,390. Outstanding wages are Rs.530. Interest on investment
Rs.3,000 is accrued.

11. From the following trial balance, prepare Trading and Profit and Loss Account for the
year ended 31st March 2011 and Balance sheet as on that date.

Trial Balance as on 31st March 2011

Particulars Amount Particulars Amount
(Rs.) (Rs.)
Printing & Stationery 1,600 Bills Payable 10,000
Trade Expenses 750
 Freehold Property 38,000 Provision for doubtful 600
Cash at Bank 21,000 debts 1,80,000
Cash in Hand 3,000 Sales 4,000
Purchases 1,50,000 Discount Received 1,34.800
Opening Stock 45,000 Capital 30,000
Audit Fees 200 Sundry Creditors 200
Investments on 1/1/10 Interest on investments 3,500
@10% 4,000 Commission Received 1,000
Sundry Debtors 35,000 Purchase Returns
Wages 22,000
Salaries 12,000
Income Tax 1,100
Discount Allowed 6,000
Sales Returns 400
Bills Receivable 2,500
Furniture 2,050
Rent, Rates & Insurance 4,500
Drawings 15,000

Adjustments:
1. Provide Rs.1,500 for further bad debts and doubtful debts at 5% on sundry debtors.
2. Make provision for discount on debtors at 3% of debtors and reserve for discount
on creditors at 3%.
3. Outstanding wages Rs.6,000
4. Closing Stock Rs.60,000
5. Provide 5% depreciation on freehold property
6. Charge interest on capital @6% and interest on drawings Rs.500

12. From the following ledger balances of Vikram, prepare trading and profit and loss
account for the year ended 31st March, 2019 and Balance sheet as at that date after
making necessary adjustments:
Particulars Amount Particulars Amount
(Rs.) (Rs.)
General Expenses 800 Purchases 82,000
Freight and Duty 2,000 Stock (1.4.2018) 15,000
Carriage Outwards 500 Plant and Machinery (1.4.2018) 20,000
Sundry Debtors 20,600 Plant and Machinery (additions on 5,000
Furniture and Fixtures 5,000 1.10.2018)
Returns Inwards 2,000 Drawings 6,000
Printing and Stationery 400 Capital 80,000
Rent, rates and Taxes 4,600 Provision for Doubtful Debts 800
Sundry Creditors 10,000 Rent received 1,600
Sales 1,20,000 Insurance charges 700
Returns Outwards 1,000 Salaries and Wages 21,300
Postage and Courier 800 Cash in Hand 6,200
 Cash at Bank 20,500

Adjustments:
1. Stock on 31st March, 2019 was Rs.14,000
2. Write off Rs.600 as Bad debts.
3. Provision for Doubtful Debts is to be maintained @5%
4. Provision for Depreciation on Furniture and Fixtures at 5% p.a. and on Plant and
Machinery at 20% p.a.
5. Insurance prepaid was Rs.100
6. A fire occurred in the godown and stock of the value of Rs.5,000 was destroyed. It was
insured and the insurance company admitted full claim.

13. From the following trial balance of Hari, prepare a trading and profit and loss account
for the year ended 31st March 2009 and a Balance sheet as on that date:
Particulars Dr Amount Cr. Amount
(Rs.) (Rs.)
Capital 1,00,000
Furniture 20,000
Purchases 1,50,000
Debtors 2,00,000
Interest earned 4,000
Salaries 30,000
Sales 3,21,000
Purchase Returns 5,000
Wages 20,000
Rent 15,000
Sales Returns 10,000
Baddebts written off 7,000
Creditors 1,20,000
Drawings 24,000
Provision for Baddebts 6,000
Printing and Stationery 8,000
Insurance 12,000
Opening Stock 50,000
Office Expenses 12,000
Provision for Depreciation 2,000

5,58,000 5,58,000

Additional information:
1. Depreciation by 10% on original cost.
2. A provision for doubtful debts is to be created to the extent of 5% on sundry debtors
3. Salaries for the month of March 2009 amounting to Rs.3,000 were unpaid which must be
provided for. However, salaries included Rs.2,000 paid in advance.
4. Insurance amounting to Rs.2,000 is prepaid.
5. Provide for outstanding office expenses Rs.8,000
6. Stock used for private purpose Rs.6,000
7. Closing Stock Rs.60,000
14. The following balances were extracted from the ledger accounts of Mr. Bharat as on
31st December, 2019:
Particulars Debit Credit
Amount Amount
Rs. Rs.
Bharat’s Capital Account 150000
Bharat’s Drawings Account 10000
Plant and Machinery 40000
Stock on 1st January, 2019 25000
Purchases and Sales 174000 260000
Furniture 5000
Debtors and creditors 135000 90000
Wages 24000
Freight inwards 4000
Salaries 22000
Printing and Statio9nery 9000
Rent, Rates and Taxes 12000
Bills Receivable 33000
Bank 7000
500000 500000

Adjustments:
1. Closing stock on 31st December, 1999 was valued at Rs. 80000
2. A fire occurred on 1st December, 1999 and goods costing Rs. 10000 were destroyed.
Insurance company accepted a claim of Rs. 8000
3. Write off Rs. 7500 as bad debts.
Prepare Trading and P&L Account and Balance Sheet.

15. The following is the trial balance of Mahesh as on 31st March 2018.
Trial Balance of Mahesh as on 31st March 2018
Debit Balance Amount Credit Balance Amount
(Rs.) (Rs.)
Drawings 15,000 Capital 1,20,000
Sundry Debtors 75,000 Sundry Creditors 85,000
Cash in Hand 5,000 Loan 50,000
Interest 1,500 Sales 1,62,000
Opening Stock 45,000 Purchase Returns 7,300
Cash at Bank 10,000 Discount 2,500
Bad Debts 5,000 Bills Payable 15,000
Land and Buildings 1,00,000 Rent Received 4,000
Sales Returns 8,000 Provision for Bad Debts 8,500
Purchases 1,30,000
 Carriage Outwards 2,500
Carriage Inwards 4,500
Printing Charges 13,000
Rent & Taxes 3,750
Advertisement 5,550
General Expenses 5,000
Wages 15,000
Bills Receivable 10,500
4,54,300 4,54,300

Adjustments:
1. The stock in hand on March 31st, 2018 is valued at Rs.80,000
2. Depreciate Land and Buildings @10% p.a.
3. Bad Debts provision is to be increased by Rs.2,000
4. Provide for the Manager’s Commission at 6% on the net profit after charging such
commission.
You are required to prepare the Trading and Profit and Loss account for the year ending 31st
March 2010 and a Balance Sheet as on that date.