COMPILED BY: CA RAJESH R DALAL-J.M.

PATEL COLLEGE OF COMMERCE-CLASS WORK-SEMESTER

I

Q.1 ) From the following details, prepare Manufacturing, Trading and Profit & Loss
Account, and Profit & Loss Appropriation Account for the year ending 31st March, 2016 and
a Balance Sheet as on 31st March, 2016.

Particulars Dr. Cr.

₹ ₹
Opening Stock:
Raw Materials 60,000
Work-in-Progress 5,000
Finished Goods 20,000
Purchases:
Raw Materials 2,10,000
Finished Goods 10,000
Cash 2,000
Factory Rent 12,000
Office Rent, Rates & Taxes 3,000
Factory Salary 18,000
Office Salary 13,100
Debtors 78,000
Creditors 56,000
Sales 4,00,000
Selling Expenses 17,000
Interest 4,000
Discount allowed 3,000
Discount received 1,100
Capital 98,000
Wages 50,000
Machinery 45,000
Furniture 5,000
5,55,100 5,55,100

a) Provide 10% Depreciation on Machinery and Furniture.

b) Closing Stock : Raw Materials Rs. 50,000 . Work –in-Progress Rs. 10,000. Finished
Goods Rs. 35,000.
c) Salary outstanding as on 31st March , 2016:
Factory Rs. 2,000 . Office Rs. 1,000.
d) Outstanding Factory Rent Rs. 1,000.

FOR INTERNAL USE ONLY:NO EXTRA CONSIDERED PAID FOR

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Q.2 ) From the following extracts, prepare Manufacturing Account, Trading Account,
Profit & Loss Account for the year ended 31st March, 2016 and the Balance Sheet as on 31st
March 2016.

Particulars ₹ Particulars Rs.

Stock ( At 1.4.2015 ) Machinery ( WDV on
Raw Materials 13,000 31.3.2016) 17,000
Work-in-Progress 8,000 Drawings 3,000
Finished Goods 19,000 Advertisement 1,800
Capital A/c ( including ₹ Debtors 18,500
15,000 introduced on Office Salaries 3,820
1.4.2015 ) 90,000 Factory Insurance 1,070
Balance with Bank 13,500 Lighting ( including ₹ 1,200
Cash in hand 810 for office ) 1,960
Sales 1,12,000 Carriage Outward 550
Purchase of Raw Material 79,000 Interest received 450
Return Inward 390 Depreciation:
Wages 8,500 Machinery 3,000
Direct Expenses 2,300 Office Furniture 800
Rent ( including ₹ 2,500/- Office Furniture ( W.D.V
for Factory Premises ) 3,000 31.3.2016 ) 7,200
Power Expenses 1,200 Printing & Stationary 300
Investments 10,100 Miscellaneous Expenses 600
Discount received 250
Bad Debt 300
Creditors 16,000

Adjustments:

1. Additional Bad debts of ₹ 500 are to be written off and R.D.D to be charged on
Debtors at 5%.
2. Machinery and Office Furniture are depreciated at wrong rates. Actual depreciation
rate should be Machinery at the rate of 10% and Office Furniture at the rate of 15%.
3. Closing Stocks are :
Raw Materials ₹ 2,000. W.I.P. ₹ 16,330. Finished Goods ₹ 28,000.
COMPILED BY: CA RAJESH R DALAL-J.M.PATEL COLLEGE OF COMMERCE-CLASS WORK-SEMESTER
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Q.3 ) From following Trial Balance and additional information, prepare the Manufacturing
Account, Trading and Profit & loss Account and the Balance Sheet relating to 2015.

Debit Balances Rs. Credit Balances Rs.

Stock on 1. 1. 2015: Sundry Creditors 1,50,000

Raw Materials 2,10,000 Bill Payable 75,000
Work- in- Progress 95,000 Sales of Scrap 25,000
Finished Goods 1,15,000 Commission 4,500
Sundry Debtors 2,44,000 Provision for Doubtful Debts 16,500
Carriage on Purchases 15,000 Capital Account 10,00,000
Bill Receivable 1,50,000 Sales 16,70,200
Wages 1,30,000 Current Account of Gopinath 10,000
Salaries 1,00,000
Telephone, Postage etc. 10,000
Repairs to plant 11,000
Repairs to Office Furniture 3,500
Purchases 8,00,000
Cash at Bank 1,20,000
Plant and Machinery 7,00,000
Office Furniture 1,10,000
Rent 50,000
Lighting 72,000
General Expenses 15,700

29,51,200 29,51,200

The following additional information is available :

a) Stocks on 31st December, 2015 were: Raw Materials Rs.1,62,000. Finished Goods
Rs.1,70,000 Semi Finished Goods Rs.70,000.

b) Salaries and Wages Outstanding for December 2015 were Rs.8,000 and Rs.12,000
Respectively.

c) Machinery is to be depreciated by 10% and Office Furniture by 10%.

d) Provisions for Doubtful Debts should be maintained at the rate of 1% of sales.

e) Office Premises occupy 1/3rd of total area.

f) Lighting has to be charged as 3/4th to factory and 1/4th to office.

FOR INTERNAL USE ONLY:NO EXTRA CONSIDERED PAID FOR

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 Q.4 The Trial Balance of Mr. Lakhmichand is below. Prepare Final Accounts for the year
ended 31st December, 2015.

Debit Balance Rs. Credit Balance Rs.

Cash in Hand 1,000 Capital Account 41,860

Machinery 30,000 Sales 1,38,780
Drawings 2,500 R.D.D 560
Factory, Power and Fuel 450 Sundry Creditor 8,800
Office salaries 6,225
Carriage Outwards 500
Manufacturing Wages 9,300
Furniture and Fixture 3,400
Opening Stock:
Finished Goods 4,000
Work –in – Progress 7,250
Raw materials 2,800
Carriage Inwards 1,000
Rent (Factory 3/4) 4,000
Sundry Debtors 21,600
Advertisement 775
Printing & Stationery 1,200
Factory Insurance 1,280
Purchase of Raw Materials 82,950
Balance at Bank 8,530
Discount allowed 610
Miscellaneous Expenses 630

1,90,000 1,90,000
Adjustments :

1. Closing stock finished goods Rs. 6,500; Raw Materials Rs. 750; and Work-in-progrees
Rs. 4750.

2. A Motor car purchased on 1st October, 2015 for Rs. 10,000 has been included in
purchase.

3. Depreciate Machinery at 15%p.a , Motor car at 20%p.a , Furniture and Fixtures at

15%p.a

4. Provisions for R.D.D. Should be maintained at 10% of the debtor.

5. Provision for unrealised Rent in Respect of portion of the sub-let at Rs. 120 p.m.
from 1st October, 2015 has to be made.

Q.5 ) Kalidas carries on a manufacturing business. The following transaction were extracted
from his books as on 31st December, 2015.
COMPILED BY: CA RAJESH R DALAL-J.M.PATEL COLLEGE OF COMMERCE-CLASS WORK-SEMESTER
I

Rs. Rs.

Freehold Premises 1,65,000 Transport Outwards 16,840

Plant & Machinery 1,96,620 Sales 11,26,400
Motor Vehicles 29,960 Selling Expenses 56,830
Stock : 1.1.2015 Administration Expenses 1,35,380
Raw Materials 1,65,300 Sundry Debtors 1,27,500
Finished Goods 72,910 Balance at Bank 69,470
Work in Progress 72,470 Cash in Hand 1,090
Wages 2,80,790 Drawings 26,130
Purchases of Raw materials 4,36,440 Capital 6,42,910
Factory Expenses 20,500
Sundry Creditors 1,03,920

You are required to prepare Financial Statement for year ended 31st December, 2015
and Balance Sheet as on that date after taking info consideration the following information :
1. The valuation as on 31st December , 2015 were : Raw Materials Rs. 1,37,910;
Finished Goods Rs. 53,580; Work-in- Progress Rs.56,800.
2. Provision is to be made for following liabilities : Factory Expenses Rs. 3,740; Selling
Expenses Rs. 5,790; Administration Expenses Rs. 2,100.

. 3. Prepaid Transport Expenses Rs.500.

4. Provision for Doubtful Debts equivalent to 4% of the Debtor to be created.

5. Depreciation for the year ended 31st December, 2015 to be provided works out as:
Plant and Machinery Rs. 27,380 ; Motor Vehicles Rs. 8,560.

Q.6) A chemical manufacturing concern , as the following ledger balance on 31st December,
2015:

Particulars Rs. Particulars Rs.

FOR INTERNAL USE ONLY:NO EXTRA CONSIDERED PAID FOR

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Goodwill 5,000 Capital Account 19,500
Factory Shed 2,000 Loan from Bank @ 6% 30,000
Machinery 13,000 Creditors 15,000
Furniture : Net Sales 1,10,000
Factory 500 Miscellaneous Receipts 400
Office 300 Bad Debts Reserve 500
Investments @ 4% 1,000
Stock on 1.1.2015 :
Materials & Stores 13,000
Work-in-Progress 750
Finished Goods 8,250
Debtors 13,500
Purchases :
Materials & Stores 85,000
Finished Goods 1,000
Freight and Duty on 5,000
Materials 1,500
Electricity and Power
Salaries, Wages & Bonus : 15,000
Factory 6,500
Office 250
Repairs & Renewals 1,650
Rent, Rates & Taxes 390
Insurance 1,810
General Charges
1,75,400 1,75,400

The following additional information is available :

a) Closing Stock : Materials and Stores Rs. 21,000; Work-in-Progress Rs. 1,250 and
Finished Goods Rs. 20,750.
b) Depreciation to be provided; Factory shed 2%, Machinery 10%, Furniture 15%.
c) Outstanding Expenses :
Salaries, Wages and Bonus – Factory Rs. 400 and Office Rs. 100; General Charges
Rs.100.
d) Amount of Insurance premium covers a period of one month in advance.
e) Electricity and Power, Repairs and Renewals and Rent, Rates and Taxes are to be
apportioned between Factory and Office in the ratio of 4 : 1.
f) Reserve for Bad Debts to be provided @ 4% on debtors.

You are required to prepare Manufacturing Account, Trading and Profit & Loss Account
for the year ended 31st December, 2015 and a Balance Sheet as on that date.

Q.7) The Trial Balance of Rajesh as on 31st December, 2015 was as follows :
COMPILED BY: CA RAJESH R DALAL-J.M.PATEL COLLEGE OF COMMERCE-CLASS WORK-SEMESTER
I

Debit Balances Rs. Credit Balances Rs.

Opening Stock : Sundry Creditors 17,000
Raw Materials 23,000
Work-in-Progress 10,000 Bills Payable 8,500
Finished Goods 15,500
Sundry Debtors 27,000 Sale of scrap 1,500
Carriage on Purchases 1,500
Commission 350
Bills Receivable 18,000
Wages 12,000 Provision for Doubtful Debts 1,650
Salaries 10,000
Telephone Charges 500 Capital Account 1,00,000
Postage 500
Repairs to Plant 1,200 Sales 2,00,000
Repairs to Office Furniture 600
Purchases 1,00,000 Current Account of Rajesh 9,700
Cash at Bank 12,000
Plant and Machinery 90,000
Office Furniture 9,000
Rent 5,000
Lighting 1,300
General Expenses 1,600
3,38,700

3,38,700

The following additional information is provided to you :

a) Closing Stock :
Raw Materials Rs. 15,800; Finished Goods Rs. 18,200; Semi-finished Goods Rs 7,000.
b) Salaries unpaid for December ,2015 : Rs. 1,000.
c) Wages unpaid for December, 2015: Rs. 3,000.

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d) Machinery is to be depreciated by 10%.
e) Office Furniture is to be depreciated by 5%.
f) Provision for Doubtful Debts is to be maintained at 10%.
g) Lighting is to be divided between office premises and factory. Lighting is to be
charged to office premises for Rs. 300 and remaining Rs. 1,000 are to be charged
to factory.
h) Factory Premises occupy 1/4th of total area.
You are requested to prepare the Manufacturing Account, Trading Account,
Profit & Loss Account and the Balance Sheet relating to 2015.
COMPILED BY: CA RAJESH R DALAL-J.M.PATEL COLLEGE OF COMMERCE-CLASS WORK-SEMESTER
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Q.8) The following are the closing balances as on 31st December, 2015 extracted from the
books of Mehta. Prepare Trading and Profit & Loss Account for the year ended 31st
December,2015 and the Balance Sheet as on that date.

Rs.

Mr. Mehta’s Capital 1,65,000

Stock on 1.1.2015 70,200
Sales 4,34,400
Purchases 3,63,650
Carriage Inwards 27,900
Rent and Taxes 8,550
Sales Returns 12,900
Salaries 13,950
Purchases Returns 8,700
Sundry Debtors 36,000
Sundry Creditors 22,200
Bank Loan at 6% (1.1.2015) 30,000
Interest paid on above 1,350
Printing and Advertising 21,900
Drawing Account 15,000
Interest Received from A.N.Sen 400
Cash at Bank 12,000
Discount received 6,300
Investments 7,500
Furniture and Fittings 2,700
Discount Allowed 11,310
General expenses 6,000
Audit fees 1,050
Insurance 900
Travelling expenses 3,500
Postage and Telegrams 4,070
Cash in Hand 570
Deposit with Mr.A.N.Sen(1.1.2015) (Interest @ 9%) 45,000

Adjustments :
a) Stock as on 31st December,2015 was Rs.1,20,000.
b) Sundry Debtors included a sum of Rs.3,000 due from Mr.Nair and Sundry Creditors
included a sum of Rs.4,000 due to Mr.Nair.
c) 25% of the Printing and Advertisement was to be carried forward in the next year.
d) Provide 5% for bad debts and 2% for discount for prompt payment.
e) Write off depreciation at 10% off Furniture and Fittings Depreciation in respect of
items sold off during the year need not be provided.
f) As on 31st December,2015: salaries and carriage inwards that remained unpaid were
Rs. 1,200 and Rs.150 respectively.

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 g) Insurance paid in advance as on 31st December,2015 was Rs.120.
h) Furniture of the book value of Rs.900 as on 1st January, 2015 had been disposed off
for Rs.500 on 30th June, 2011. The sale proceeds had been credited to furniture
account, but the loss on sale of furniture had not been written off in books.
i) Furniture purchased for Rs. 1,000 on 1st January,2015 had been debited to Purchases
Account.
j) Purchases to the value of Rs. 1,800 had been omitted to be entered in the books .
k) Personal purchases of Rs. 700 made by Mr. Mehta had been included in purchases.
l) Provide for interest on the deposit with Mr. A. N. Sen & Bank Loan.

Q.9 ) Shri Gourihar submitted to you the following Trail Balance, which he had not been
able to agree. Rewrite the Trail Balance, correcting the mistakes committed by him and
prepare Trading and Profit & Loss Account for the year ended 31st March, 2016 and a
Balance Sheet as on that date after giving effect to the under mentioned adjustments :

Dr. Cr.
Rs. Rs.
Capital 15,000
Drawings 3,250
Stock (1.4.2015) 3,250
Returns Inward 17,445
Carriage Inwards 554
Deposit with Gadadhar 1,240
Return Outwards 1,375
Carriage Outwards 725
Loan to Lambodar @ 5% p.a. given on 1.4.2015 1,000
Interest on above 25
Rent paid 820
Rent Outstanding 130
Purchases 12,970
Debtors 4,000
Creditors 3,000
Advertisement 954
Reserve for Bad Debts 1,200
Bad Debts 400
Furniture and Fittings 500
Sales 27,254
Discount Allowed 330
Wages 754
Cash 62
Goodwill 1730

48,984 48,984

Adjustments :

1. Stock (31.3.2016) 18,799

COMPILED BY: CA RAJESH R DALAL-J.M.PATEL COLLEGE OF COMMERCE-CLASS WORK-SEMESTER
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2. The Office Manager of Gourihar is entitled to a commission of 10% on gross profit

after charging such commission.

3. Write off Rs. 500 as further bad debts and made reserve for bad debts at 10% and
for discount on Sundry Debtors at 5%.

4. Stock valued at Rs. 1,500 was destroyed by fire on 20th March , 2015; but Insurance
Company claim for Rs. 1,000 only and paid in May 2015.

Q.10) The following in the Trail Balance of Shri Ajit as on 31st March, 2016. You are required
to prepare the Trading and Profit & Loss Account for the year ended 31st March, 2016 and
Balance Sheet as on that date after making the necessary adjustments:

Debit Credit
Rs. Rs.
Stock on 1.4.2015 5,50,000
Purchases 19,25,000
Sales 29,35,000
Wage and Salaries 1,25,000
Discount Received 2,000
Carriage Inwards 40,000
Bills Payable 1,85,000
Insurance 35,000
Creditors 9,32,500
Consignor,s Balance on 1.4.2015 4,00,000
Bills Receivable 2,25,000
Debtors 15,00,000
Capital 8,95,000
Commission 40,000
Cash sent to Consignor 8,00,000
Interest 35,000
Trade Expenses 34,500
Furniture on 1.4.2015 60,000
Consignment Sales 6,40,000
Cash in hand and at Bank 4,22,500
Rent & Taxes 1,27,500
Sales of Furniture on 31.3.2016 10,000
Charges paid against Consignment 80,000

59,99,500 59,99,500

The following adjustments to be made;

1. Stocks on 31st March, 2016: Rs.8,00,000 (including stock of stationery Rs.800).

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 2. Bills Receivable includes a dishonoured bill of Rs.8,000.

3. Trade Expenses include payments for stationery of Rs.22,500.

4. Stock in the beginning includes stock of stationery in the beginning Rs.1,800

5. Furniture sold was appearing in Balance Sheet on 31st March, 2016 at Rs.13,000.

6. Creditors at the end includes ,Creditors for stationery Rs.3,000 for credit
purchases.

7. Commission Receivable on sale of consignment is Rs.40,000.

8. Stationery of Rs.2,000 was consumed by Shri Ajit.

9. Included in the debtors is an amount of Rs.2,000 in respect of bankrupt debtors

whose estate is expected to realise not more than 25paise in the rupee and an
item of Rs.5,000 for goods supplied to Shri Ajit.

10. Make provision for bad and doubtful debts at 5% on debtor.

11. Depreciate furniture at 10% p. a.

Q.11) From the following Trail Balance of Sanjay, prepare Trading and Profit & Loss
Account for the year ended 31st March, 2016 and a Balance Sheet as at the date:
Debit Credit
Rs. Rs.
Stock at beginning 55,000
Purchases and Sales 1,92,500 2,93,500
Wages and Salaries 12,500
Carriage Inwards 4,000
Insurance 3,500
Bill Receivable and Bill Payable 22,500 18,500
Commission 4,000
Interest 3,500
Trade Expenses 3,450
Debtors and Creditors 1,50,000 93,250
Furniture 1.4.2015 6,000
Cash in hand and Cash at Bank 42,250
Rent and Taxes 12,750
Sales of Furniture on 31.3.2016 1,000
Discount Received 200
Charges paid against consignment 8,000
Sales Re-consignment 64,000
Consignor’s Balance on 1.4.2015 40,000
Cash sent to Consignor 80,000
Capital 89,500
5,99,950 55,99,950
COMPILED BY: CA RAJESH R DALAL-J.M.PATEL COLLEGE OF COMMERCE-CLASS WORK-SEMESTER
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Adjustments :
a) Stock on 31st March, 2016 Rs. 80,000 (including stock of stationery Rs.80).
b) Trade expenses include payments for stationery Rs. 2,250.
c) Stock at beginning includes stock of stationery in the beginning Rs. 180.
d) Creditors at the end include creditors for stationery Rs. 300 for credit purchases.
e) Furniture sold was appearing in the balance sheet as on 31st March, 2016 at Rs.
1,300.
f) Stationery of Rs. 200 was consumed by the proprietor.
g) Bills Receivable include a dishonoured bill of Rs.800.
h) Included in the Debtors is an amount of Rs. 200 in respect of a bankrupt debtor
whose estate is expected to realise not more than 25 paise in a rupee and an item of
Rs. 500 for goods supplied to the proprietor.
i) Make provision for doubtful debts at 5% on debtors.
j) Commission receivable on sale of consignment Rs. 4,000 is to be provided.

Q.12) The following balances are extracted from the ledger accounts of Mr. Bharat as on
31st December, 2015.
Dr. Cr.
Mr. Bharat Capital 1,50,000
Mr. Bharat Drawings 10,000
Plant and Machinery 40,000
Stock as on 1.1.2015 25,000
Purchases 1,74,000
Sales 2,60,000
Furniture and Fixtures 5,000
Trade Debtors 1,35,000
Trade Creditors 90,000
Wages 24,000
Freight Inward 4,000
Salaries 22,000
Printing and Stationery 9,000
Rent, Rates, Taxes, Insurance 12,000
Consignment Account 33,000
Cash and Bank Balance 7,000
5,00,000 5,00,000

Adjustments and additional Information :

a) Closing stock as on 31st December, 2015 was valued at Rs. 30,000.
b) A fire occurred on 1st December, 2015 and goods costing Rs. 10,000 were destroyed.
Insurance Company accepted the claim for Rs.8,000 which was yet to be received.
c) Write off Rs. 10,000 as Bad Debts.
d) Write off depreciation on plant and machinery and furniture at 10% per annum.
e) Purchases include purchase of furniture Rs.2,000 for personal use of Mr. Bharat.
f) Mr. Bharat sent goods to the value of RRs. 33,000 to Mr. X consignee. Two-third of
the quantity consigned were sold for Rs. 35,000. The expenses of Mr. X in respect of

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goods sold by him amounted to Rs. 2,000. Mr. X is entitled to a commission of 5% on
collections. Mr. X has actually collected Rs. 24,000.

You are required to prepare :

a) Trading and Profit & Loss Account for the year ended 31st December, 2015.
b) Balance Sheet as at 31st December, 2015.
c) Statement showing profit on consignment giving full working.
COMPILED BY: CA RAJESH R DALAL-J.M.PATEL COLLEGE OF COMMERCE-CLASS WORK-SEMESTER
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Q.13) The following are the balances as at 31st March, 2016 extracted from the books of Mr.
XYZ.
Rs Rs
Plant & Machinery 19,550 Bad Debts recovered 450
Furniture & Fittings 10,250 Salaries 22,550
Bank Overdraft 80,000 Salaries Payable 2,450
Capital Account 65,000 Prepaid Rent 300
Drawings 8,000 Rent 4,300
Purchases 1,60,000 Carriage Inward 1,125
Opening Stock 32,250 Carriage Outward 1,350
Wages 12,165 Sales 2,15,300
Provision for Doubtful Debts 3,200 Advertisement Expenses 3,350
Provision for Discount on Printing & Stationery 1,250
Debtors 1,375 Cash in hand 1,450
Sundry Debtors 1,20,000 Cash at Bank 3,125
Sundry Creditors 47,500 Office Expenses 10,106
Bad Debts 1,100 Interest paid on Loan 3,000

Additional Information :
a) Purchase include sales return of Rs. 2,575 and sales include purchases return of Rs.
1,725.
b) Goods withdrawn by Mr. XYZ for own consumption Rs. 3,500 include in purchase.
c) Wages paid in the month of April for installation of plant & machinery amounting to
Rs.450 were included in Wages Account.
d) Free samples distribution for publicity costing Rs. 825.
e) Create a provision for doubtful debts @ 5% and provision for discount on debtors @
2.5%.
f) Depreciation is to be provided on plant & machinery @ 15% p.a. and on furniture &
fittings @ 10% p.a.
g) Bank Overdraft is secured by hypothecation of stock. Bank over draft outstanding as
on 31st March,2016 as been considered as 80% of real value of stock (detecting 20%
as margin) and after adjusting the marginal value 80% of the same has been allowed
to draw as overdraft.

Prepare a Trading and Profit & Loss Account for the year ended 31st March,2016 and
a Balance Sheet as on the date . Also show the rectification entries.

FOR INTERNAL USE ONLY:NO EXTRA CONSIDERED PAID FOR

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