PLANET ACCOUNTANCY

FINANCIAL STATEMENTS

PRACTICALS QUESTIONS

1. Prepare the Trading Account for the year ending 31st March, 2017 from the following
information: Opening stock Rs 50,000; Wages and Salaries Rs 15,000; Carriage Inward Rs
12,000; Cash Sales Rs 70,000; Credit Sales Rs 4,30,000; Cash Purchases Rs 55,000; Credit
Purchases Rs 2,25,000; Purchases Return Rs 15,000; Power and Fuel Rs 20,000; Sales
Return Rs 11,000; Cost of Closing Stock as on 31st March, 2017 Rs 60,000, but its market
value is Rs 35,000.
{Gross Profit = Rs 1,62,000}

2. From the following particulars, prepare Trading Account for the year ended 31st March, 2017
Particulars (Rs)
Adjusted Purchases 2,20,000
Wages 16,000
Power and Fuel 17,000
Cartage 14,000
Sales 3,70,000
Closing Stock 35,000
Sales Return 20,000
{Gross Profit = Rs 83,000}

Cost of Goods Sold

3. Determine the value of Cost of Goods Sold and Gross Profit from the following information:
Particulars (Rs)
Wages 12,000
Sales 1,50,000
Purchases 90,000
Purchases Return 10,000
Sales Return 7,000
Opening Stock 15,000
Carriage 6,000
Closing Stock 18,000
{Cost of Goods Sold = Rs 95,000; Gross Profit = Rs 48,000)

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4. Find Cost of Goods Sold and Opening Stock from the following information: Sales Rs
3,50,000; Sales Return Rs 3,000; Gross Profit Rs 42,000; Closing Stock Rs 1,00,000;
Purchases Rs 1,75,000; Wages Rs 65,000; Carriage Rs 55,000.
{Cost of Goods Sold = Rs 3,05,000; Opening Stock = Rs 1,10,000)

5. Determine the value of Cost of Goods Sold and Gross Profit from the following information:
Particulars (Rs)
Adjusted Purchases 4,08,000
Wages 30,000
Carriage Inward 8,000
Sales 6,20,000
Sales Return 20,000
Opening Stock 40,000
Purchases Return 7,000
{Cost of Goods Sold = Rs 4,46,000; Gross Profit = Rs 1,54,000}

6. Net Sales during the year 2016-17 is Rs 3,40,000. Gross Profit is 20% on Sales. Find out Cost
of Goods Sold.
{Cost of Goods Sold = Rs 2,72,000}

7. Total Sales during the year ended 31st March, 2017 were Rs 5,00,000 and Sales Return were
Rs 50,000. If Gross Profit is 25% on sales, find out cost of goods sold.
{Cost of Goods Sold = Rs 3,37,500}

8. Net Sales during the year 2016 was Rs 6,00,000. Gross Profit is 20% of Cost of Goods Sold.
Find out Gross Profit and Cost of Goods Sold.
{Gross Profit = Rs 1,00,000; Cost of Goods Sold = Rs 5,00,000}

9. Calculate Sales and Gross Profit if cost of goods sold is Rs 2,40,000 and Gross Profit 20% on
Sales.
{Sales = Rs 3,00,000; Gross Profit = Rs 60,000}

10. Calculate Sales and Gross Profit if cost of goods sold is Rs 3,00,000 and Gross Profit 25%
of cost of goods sold.
{Sales = Rs 3,75,000; Gross Profit = Rs 75,000}

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11. Calculate Closing Stock from the following information:
Particulars (Rs)
Opening Stock 40,000
Purchases 2,90,000
Sales 4,00,000
Rate of Gross Profit on Cost is 33 1/3 %.
{Closing Stock = Rs 30,000}

Profit and Loss Account

12. Prepare Profit and Loss Account for the year ending 31st March, 2017 from the following
information:
Particulars Rs Particulars Rs
Gross Profit 55,200 Salaries 13,000
Apprentice Premium 4,400 Depreciation 3,000
Bank Charge 1,200 Carriage on sales 3,600
Establishment Expenses 12,000 Printing and Stationery 8,400
Bad Debts 400 Loss on sale of Machinery 2,000
Discount Allowed 1,200 Interest on Loan 2,200
Commission {Cr.} 4,000 Insurance Premium 3,000
Bad Debts Recovered 2,000
{Net Profit = Rs 15,600}

Operating Profit
13. From the following figures calculate operating profit:
Particulars (Rs)
Net Profit 90,000
Interest Received 5,500
Loss on sale of Assets 4,700
Dividend Paid 10,000
Donation 1,500
{Operating Profit = Rs 1,00,700}

14. Compute Operating Profit and Net Profit from the following information:
Particulars Rs Particulars Rs
Gross Profit 1,50,000 Bad Debts 800
Salaries 35,000 Trade Expenses 2,400
Miscellaneous Expenses 4,000 Export Duty 1,200
Donation 10,000 Profit on sale of Furniture 800

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 Carriage Outward 2,500 Bad Debts Recovered 520
Depreciation 5,000 Rent Received 8,000
Repairs 3,700 Interest on Loan 6,000
{Operating Profit = Rs 95,920; Net Profit = Rs 88,720}

Balance Sheet
15. From the following balances of Shakti Traders, prepare a Balance Sheet as at 31st March,
2017 by arranging the assets and liabilities: (i) in order of 'Permanence' and (ii) in order of
'Liquidity:
Particulars Rs Particulars Rs
Land and Building 2,00,000 Loan from Bank 3,00,000
Computers 70,000 Outstanding Expenses 1,200
Furniture 55,000 Drawings 72,000
Creditors 80,000 Net Profit 43,300
Debtors 72,000 Investments 1,50,000
Closing Stock 1,25,000 Bills Payable 25,300
Bills Receivable 15,500 Cash in Hand 15,700
Prepaid Expenses 3,600 Capital 4,50,000
Bank 16,000 Machinery 85,000
Income Received in Advance 2,000 Motor Car 22,000
{Balance Sheet Total = Rs 8,29,800}

16. From the following information of M/s Shyam Bros., prepare Trading and Profit and Loss
Account for the year ending 31st March, 2017 and the Balance Sheet as at that date:
Particulars Rs Particulars Rs
Debit Balances Rent 10,000
Drawings 31,000 Manufacturing Expenses 7,000
Plant and Machinery 80,000 Bills Receivable 12,000
Debtors 70,000 Bad Debts 5,000
Purchases 1,10,000 Carriage 9,000
Sales Return 10,000 Furniture 15,000
Wages 40,000 Credit Balances
Cash in Hand 5,000 Capital 2,00,000
Cash at Bank 10,000 Creditors 50,000
Salaries 30,000 Sales 2,20,000
Repairs 8,000 Purchases Return 7,000
Opening Stock 45,000 Bills Payable 20,000
Closing Stock as on 31st March, 2017 was valued at Rs 50,000.
{Gross Profit = Rs 56,000; Net Profit = Rs 3,000; Balance Sheet Total = Rs 2,42,000}
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17. The Trial Balance of Sunil on 31st December, 2016 revealed the following balances:
Particulars Dr. (Rs) Cr. (Rs)
Opening Stock 12,000 …
Purchases and Sales 39,800 85,000
Returns 3,200 2,400
Wages 6,000 …
Dock and Clearing charges 4,000 …
Advertisement 600 …
Repairs 6,000 …
Electricity 500 …
Bills Payable … 1,000
Bad Debts 600 …
Sundry Receipts … 4,000
Commission 2,000 …
Power and Fuel 4,000 …
Capital … 40,000
Drawings 2,000 …
Debtors and Creditors 6,000 7,000
Bank 3,000 …
Furniture and Fixtures 10,000 …
Business Premises 39,700 …
1,39,400 1,39,400
Closing Stock Rs 4,000.
From the given Trial Balance, prepare a Trading and Profit and Loss Account and Balance
Sheet.
{Gross Profit = Rs 22,400; Net Profit = Rs 16,700; Balance Sheet Total = Rs 62,700}

18. From the following Trial Balance of Mangal Traders, prepare Trading and Profit and Loss
Account for the year ended 31st March, 2017 and Balance Sheet as at that date:
Particulars Dr. (Rs) Cr. (Rs)
Purchases and Sales 2,75,000 5,20,000
Returns 15,000 9,000
Carriage 12,400
Wages and Salaries 58,600
Trade Expenses 2,200
Rent 13,000
Insurance 2,000
Audit Fees 1,200

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 Debtors and Creditors 1,10,000 62,100
Bills Receivable and Bills Payable 3,300 2,200
Advertisement 5,500
Commission 1,000
Opening Stock 36,000
Cash in Hand 39,600
Bank Loan 20,000
Interest on Loan 1,500
Drawings and Capital 15,000 2,50,000
Land and Building 3,00,000
8,77,300 8,77,300
Closing Stock was valued at Rs 60,000.
{Gross Profit = Rs 1,92,000; Net Profit = Rs 1,93,600; Balance Sheet Total = Rs 5,12,900}

19. Prepare Trading and Profit and Loss Account and Balance Sheet from the following
particulars as on 31st March, 2017.
Particulars Dr. (Rs) Cr. (Rs)
Purchases and Sales 3,52,000 5,60,000
Returns inward and Returns outward 9,600 12,000
Carriage Inward 7,000 …
Carriage Outward 3,360 …
Fuel and Power 24,800 …
Opening Stock 57,600 …
Bad Debts 9,950 …
Debtors and Creditors 1,31,200 48,000
Capital … 3,48,000
Investment 32,000 …
Interest on investment … 3,200
Loan … 16,000
Repairs 2,400 …
General Expenses 17,000 …
Wages and Salaries 28,800 …
Land and Building 2,88,000 …
Cash in Hand 32,000 …
Miscellaneous Receipts … 160
Bills Payable … 8,350
9,95,710 9,95,710
Closing Stock Rs 30,000.
{Gross Profit = Rs 1,22,200; Net Profit = Rs 92,850; Balance Sheet Total = Rs 5,13,200}

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20. The following Trial Balance is extracted from the books of Johny on 31st December, 2016:
Particulars Rs Particulars Rs
Debit Balances General Charges 14,000
Building 1,00,000 Salaries 23,000
Furniture and Fittings 20,000 Bills Receivable 18,000
Bad Debts 5,000 Cash at Bank 8,000
Sundry Debtors 1,00,000 Credit Balances
Stock {1st January, 2016) 80,000 Capital 1,20,000
Purchases 2,40,000 Bills Payable 14,000
Sales Return 10,000 Sundry Creditors 60,000
Advertisement 18,000 Sales 4,40,000
Interest 8,000 Purchases Return 10,000
Cash in Hand 6,000 Commission 6,000
Closing Stock Rs 40,000.
Prepare Trading and Profit and Loss Account for the year ending 31st December, 2016 and a
Balance Sheet on that date.
{Gross Profit = Rs 1,60,000; Net Profit = Rs 98,000; Balance Sheet Total = Rs 2,92,000}

21. From the following Trial Balance of M/s Manish Traders, prepare Trading and Profit and
Loss Account for the year ended 31st March, 2017 and Balance Sheet as at that date.
Particulars Dr. (Rs) Cr. (Rs)
Opening Stock 16,000 …
Purchases and Sales 55,000 1,03,000
Returns 2,000 1,000
Carriage 3,500 …
Wages 12,500 …
Salaries 10,000 …
Stationery 3,400 …
Trade Expenses 2,000 ….
Cash in Hand 3,500 …
Bills Receivable and Bills Payable 8,000 8,500
Debtors and Creditors 22,000 20,000
Building 30,000 …
Plant and Machinery 20,000 …
Drawings and Capital 8,000 56,000
Furniture 10,600 …
Rent and Rates 6,500 …
Commission … 4,500
Bank Loan … 20,000

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 2,13,000 2,13,000
The Closing Stock as on 31st March, 2017 was valued at Rs 18,000.
{Gross Profit = Rs 33,000; Net Profit = Rs 15,600; Balance Sheet Total = Rs 1,12,100}

22. Prepare Trading and Profit and Loss Account and a Balance Sheet as on 31st March, 2017
from the under mentioned Trial Balance of Kohinoor Ltd.
Debit Balances Rs Credit Balances Rs
Opening Stock 7,000 Sales 49,000
Purchases 23,000 Purchases Return 1,000
Sales Return 2,000 Discount Received 2,000
Discount Allowed 1,000 Capital 70,000
Drawings 10,000 Bank Overdraft 12,000
Cash 7,000 Creditors 12,000
Debtors 19,000 Bills Payable 4,000
Carriage 3,000 Loan 6,000
Repairs 4,000
Salaries 6,000
Stationery 4,000
Land and Building 35,000
Plant and Machinery 15,000
Furniture 11,000
Closing Stock 9,000
1,56,000 1,56,000
{Gross Profit = Rs 15,000; Net Profit = Rs 2,000; Balance Sheet Total = Rs 96,000)

23. The following is the Trial Balance extracted from the books of Shyam Lal on 31st
December, 2016. Pass the necessary closing Journal Entries and prepare the Trading and
Profit and Loss Account for the year ended 31st December, 2016 and the Balance Sheet as at
that date.
Particulars Rs Particulars Rs
Opening Stock 10,000 Office Rent 7,000
Purchases 1,70,000 Returns Outward 12,000
Sales 2,50,000 Coal, Gas and Water 15,000
Discount Received 700 Factory Rent 9,000
Returns Inward 12,000 Creditors 10,000
Wages 28,000 Capital 78,800
Loan {Cr.} 22,000 Commission 4,500
Cash at Bank 14,500 Cash in Hand 28,500
General Expenses 12,000 Debtors 42,000

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 Salaries 21,000
Closing Stock on 31st December, 2016 was Rs 10,000.
{Gross Profit = Rs 28,000; Net Loss = Rs 15,800; Balance Sheet Total = Rs 95,000}

24. Prepare Trading and Profit and Loss Account for the year ending 31st December, 2016 and
a Balance Sheet as at that date from the following Trial Balance of Mayank Sharma:
Particulars Rs Particulars Rs
Loan (Cr.} 10,000 Carriage 4,500
Purchases 1,24,000 Life Insurance Premium 2,000
Returns Inward 2,000 Rent and Insurance 4,500
Bank 10,000 Advertisement 24,000
Commission {Cr.} 4,500 Discount Received 1,200
Sales 2,06,500 Wages 20,700
Opening Stock 30,400 Machinery 30,000
Creditors 28,400 Interest on Loan 600
Capital 50,000 Salaries 10,000
Debtors 25,400 Returns Outward 4,400
Furniture 10,000 Bad Debts 1,500
Repairs 5,400
Closing Stock as on 31st December, 2016 was valued at Rs 36,600, but its market value was
estimated at Rs 30,000.
{Gross Profit = Rs 59,300; Net Profit = Rs 19,000; Balance Sheet Total = Rs 1,05,400}

25. From the following Trial Balance of M/s Mohan Traders, prepare Trading and Profit and
Loss Account for the year ended 31st March, 2017 and Balance Sheet as at that date.
Particulars Dr. (Rs) Cr. (Rs)
Plant and Machinery 20,000 …
Wages 34,500 …
Salaries 12,000 …
Computer 10,000 …
Capital … 80,000
Stock {1st April, 2016) 34,200 …
Motor Car 12,000 …
Building 24,000 …
Manufacturing Expenses 9,500 …
Insurance 4,240 …
Bank Loan … 14,560
Purchases and Sales 1,03,000 2,80,500
Sales Return and Purchases Return 2,250 3,000

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 Furniture 25,000 …
General Expenses 8,200 …
Bad Debts 1,400 …
Interest 400 …
Commission … 2,000
Cash at Bank 5,320 …
Carriage on Purchases 1,860 …
Carriage on Sales 6,000 …
Sundry Creditors … 45,000
Factory Fuel and Power 1,540 …
Sundry Debtors 78,200 …
Factory Lighting 950 …
Closing Stock 30,500 …
4,25,060 4,25,060
{Gross Profit = Rs 95,700; Net Profit = Rs 65,460; Balance Sheet Total = Rs 2,05,020}

26. Prepare Final Accounts from the following Trial Balance of Bharat on 31st March, 2017.
Particulars Rs Particulars Rs
Plant and Machinery 1,50,000 Discount Allowed 1,000
Sales 3,15,000 Carriage In 2,500
Opening Stock 37,500 Carriage Out 1,000
Debtors 1,02,500 Interest 1,250
Bills Receivable 5,000 Selling Expenses 7,900
Creditors 50,000 Income Tax 2,000
Bad Debts 2,500 Bills Payable 4,800
Investments 25,000 Life Insurance Premium 3,000
Purchases Return 5,000 Purchases 2,65,000
Capital 2,50,000 Sales Return 5,000
Cash in Hand 7,500 Discount Received 500
Rent 3,300 Bad Debts Recovered 1,750
Office Expenses 6,600 Interest {Cr.} 1,500
Closing Stock was of Rs 21,000, but its net realisable value was estimated at Rs 16,000.
{Gross Profit = Rs 26,000; Net Profit = Rs 6,200; Balance Sheet Total = Rs 3,06,000}

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