Questions on Final Accounts - 1

Ques1.
Particulars extracted from the ledger account. Prepare final accounts for the year
March 2021

Particulars ₹

Purchases 1,20,000
Closing Stock 50,000
Land & Building 50,000
Return outward 40,000
Carriage Inwards 1,000
Sales 2,50,000
Salaries and Wages 25,000
Cash in Hand 90,000
Cash at Bank 15,000
Carriage Outwards 5,000
Capital 1,60,000
Debtors 54,000
Creditors 25,000
Plant and Machinery 65,000

Ques 2.
Following is the trial balance of Sunita Khanna. Prepare final accounts for the year
ended 31 March 2021

Particulars Dr (₹) Cr (₹)

Opening Stock 50,000 24,000

Purchases 1,20,000 2,50,000
Land & Building 90,000 6,000
Return 10,000 2,60,000
Rent 10,000 44,000
Sales
Wages 25,000
Cash in Hand 90,000
Cash at Bank 15,000
Carriage Outwards 5,000
Discount 4,000
Capital
Bill Payable
Debtors 65,000
Plant & Machinery 1,00,000

Additional Information
1. Closing Stock on 31 March 2021 worth ₹ 60,000
2. Rent have prepaid by ₹ 5,000
3. Bad Debts ₹ 5,000
4. Provide Dep @ 10% p.a for P&M, 12 % p.a. for L & B
Ques 3.
From the following Trial Balance of Ram Gopal & Sons as on 31 March 2019, Prepare
the final accounts for the year ending on 31 March 2019.

Particulars Dr (₹) Cr (₹)

Capital 3,50,000

Drawings 15,000
Plant and Machinery 2,05,000
Debtors and Creditors 50,000 25,000
Returns 8,000 7,000
Discount 7,000 6,000
Commission 15,000
Interest on Bank Loan 12,000
Furniture 55,000
Provision for Doubtful Debts 13,000
Wages 50,000
Salaries 45,000
Advertisement 15,000
Taxes and Insurance 13,000
Purchases and Sales 2,60,000 4,00,000

Opening Stock 70,000

Carriage Inwards 5,000
Land and Building 98,000
Cash in Hand 8,000
Cash at Bank 20,000
10% Bank Loan as on 1-4-2019 1,50,000
9,51,000 9,51,000

Additional Information
a) Stock was valued at ₹ 35,000 as on 31 March 2019.
b) Salaries and Wages were outstanding of ₹ 5,000 and ₹ 6,000 respectively.
c) Depreciation Land and Building , Plant and Machinery and Furniture at 2.5%, 10%
and 15 % respectively.
d) Provide for Doubtful Debt at 10% on debtors.
Ques 4.
From the following Trial Balance Prepare the final accounts after making the
adjustment for the year ending on 31 March 2021.

Particulars Dr (₹) Cr (₹)

Building 1,50,000
Purchases (adjusted) 2.90,000
Capital 30,000
Sales 5,29,500
Salaries 5,000
Wages Outstanding 8,000
Bad Debts 2,000
Wages 10,000
Rent 5,000
Provision for Depreciation on Furniture 12,000
Prepaid Rent 3,000
Insurance 5,000
Furniture and Fittings 60,000
Apprentice Premium 500
Sundry Creditors 20,000
Drawings 5,000
Sundry Debtors 25,000
Closing Stock 40,000
6,00,000 6,00,000

Adjustments
a) Salaries for the month of March 2021 amounting to ₹ 1,000 were unpaid which must
be provided for. The balance in the account included ₹ 800 paid in advance
b) Insurance is prepaid to the extent of ₹ 2,000
c) Depreciate Furniture and Fixture ₹ 10% and building by 5%
d) Stock worth ₹ 1,500 was put by Ashok to his personal use
e) Provision for Doubtful Debts ₹ 10%
Ques 5.
From the following Trial Balance and additional information, prepare the final
accounts of after making the adjustment for the year ending on 31 March 2017.

Particulars Dr (₹) Cr (₹)

Opening Stock 70,000
Plant and Machinery 50,000
Rent 3,000
Capital and Drawing 40,000 2,00,000
Depreciation on Plant and Machinery 5,000
Wages 20,000
Income tax 2,000
Wages Outstanding 4,000
Sales and Purchases 3,00,000 5,00,000
Debtors and Creditors 80,000 45,000
Bills Receivables and Bill Payable 30,000 16,000
Discount 2,000 12,000
Salary (for 11 months) 11,000
Cash 5,000
Buildings 1,60,000
Depreciation on buildings 8,000
Carriage Inwards 4,000
Bad Debts 6,000
Returns 3,000 5,000
Bank Overdraft 9,000
Commission 5,000
7,99,000 7,99,000

Additional Information
a. Closing Stock of ₹ 96,000
b. Stock Destroyed by fire was ₹ 6,000 and Insurance accepted a claim of ₹ 3,600
c. ₹1,600 paid as rent was debited to landlord account and was included in the list of
Debtors.
d. Goods ₹ 10,000 were sent to customers on sale or returns basis on 28 March 2017, the
customers still having the right to returns the goods. The rate of gross profit was 1/5
of sale
e. Provide Bad debt ₹ 4,000 and maintain provision for bad debts on debtors at 5%.
Ques 6.
From the following Trial Balance Prepare the final accounts after making the
adjustment for the year ending on 31 March 2021.

Particulars Dr (₹) Cr (₹)

Opening Stock 17,000
Purchases 55,000
Sales Returns 5,000
Capital 95,000
Creditors 15,000
Bad Debts 1,000
Drawings 7,800
Carriage Inward 1,500
Sundry Expense 3,000
10% Bank Loan (taken on 1 Oct, 2020) 10,000
Sales 1,10,000
Machinery 70,000
Cash 10,000
Wages Outstanding 2,000
Sundry Debtors 18,000
Purchase Returns 8,000
Carriage Outwards 2,000
Wages 10,000
Salaries 18,000
Furniture 20,000
Salaries Outstanding 3,000
Discount 2,000 2,500
Rent, Rates and Taxes 3,200
Insurance 2,000
2,45,000 2,45,000

Adjustments
1. Closing Stock on 31 March 2021 ₹ 11,000
2. Goods withdrawn by th proprietor ₹ 1,000 not yet adjusted
 3. Insurnace prepaid at the end ₹ 500
4. Sundry Expenses outsanding at the end ₹ 290
5. Charge Depreciation on furniture and on machinery @ 10 % p.a.
6. Write off bad debts ₹ 1000
7. Create provison for bad debts at 3% of the debtors

Ques 7.
From the following Trial Balance and additional information, prepare the final
accounts of Mukul after making the adjustment for the year ending on 31 March 2016.

Particulars Dr (₹) Cr (₹)

Capital and Drawings 10,000 1,70,000
Plant and Machinery 1,10,000
Sales and Purchases 84,000 1,65,000
Bad debts and Bad debts Recovered 5,000 26,450
Returns 5,000 4,000
Freight Inwards 5,000
Carriage outwards 7,000
Discount 2,000 1,000
Commission 4,000 3,000
Rent 3,000 4,000
Interest 2,500 3,000
Office Expenses 6,000
Selling and Distribution Expenses 10,000
Creditors and Debtors 2,15,000 2,02,000
Bills Payable and Bills Receivables 10,000 5,600
Loan 20,000 50,000
Investment 50,000
Opening Stock 54,000
Cash in Hand 5,000
Cash at bank 45,500
Bank Overdraft 20,000
Wages and Salaries 1,000
6,54,050 6,54,050
Additional Information
1. Closing Stock at market price on 31 March 2016 was ₹61,500. However its cost was
₹ 80,000
2. Depreciate Plant and Machinery at 10% p.a.
3. Interest on Capital at 6% p.a. and an additional capital of ₹ 10,000 was introduces on
1 Oct 2015.
4. Interest on drawing at 9% p.a.

Ques 8.
From the following particulars and additional information are extracted from books of
Shivaan, prepare the final accounts for the year ending on 31 March 2012.

Particulars ₹
Capital and 54,050
Opening Stock 23,400
Drawings 5,000
Sales 1,44,800
Purchases 1,21,550
Sales Returns 4,300
Purchase Returns 2,900
Accumulated Dep on Furniture 100
Interest received 725
Cash at Bank 4,000
Discount Allowed 3,770
Discount Received 1,495
Carriage Inwards 9,300
Rent 2,850
Salaries 4,650
Sundry Debtors 12,000
Sundry Creditors 7,400
12 % Loan from Bank 10,000
Interest paid 450
Printing and Stationary 1,700
Advertisement 5,600
Furniture (on 1 Apr 2011) 1,000
 General Expenses 1,960
Audit Fees 350
Fire Insurance Premium 300
Travelling Expenses 1,165
Cash 190
Deposits at 10% 15,000
Postage and Telegram 435
Investment (5% as on 1 Apr 2,500
2011)

Adjustments
1. Value of Stock as on 31 March 2012 ₹39,300. This includes goods returned by
customers on 31 March 2012 to the value of ₹ 1,500 for which no entry has been
passed in the books.
2. Purchases include furniture purchased on 1 Jan 2012 for ₹1,000
3. Depreciate furntiure at 10% p.a. by WDV method.
4. The loan taken appears as follows:

31`-3-2012 Balance c/d 10,000 1-4-2011 Balance b/d 5,000

31-3-2012 By Bank 5,000
10,000 10,000
5. Sundry Debts ₹ 2000 due from Ramesh and Sundry Crediotrs include ₹ 1,000 due to
him.
6. Interest paid include ₹ 300 paid to Bank
7. Interest received include ₹100 from debtors andd balance on investment and deposits.
8. Provide for interest payable to Bank and investment receiables on investment and
deposits.
9. Make provision for Debtors at 5%.