1

Ad d i t i o na l Qu e s t i o ns

1) The following balances have been extracted from the trial balance of Hasindu Gems as at

31.03.2023. Prepare trading account for the ended 31.03.2023

Rs.

Purchases 780 500

Sales 992 200
Return inwards 12 200

Return outwards 80 500

Carriage inwards 18 700

Stocks as at 31.03.2022 166 000

Stock drawings 12 400

Stock damages 33 600

Additional information
 Stocks as at 31.03.2023 254 000

2) The following extracted trial balance relates to Hamzah Enterprises as at 30.06. 2022. Prepare
Profit and loss statement for the ended 30. 06. 2022

Dr (Rs.) Cr (Rs.)
Purchases / Sales 689 500 898 000
Return inwards / outwards 21 400 42 400
Stocks as at 30.06.2021 119 600

Carriage outwards 14 850

Carriage inwards 33 200

Donated stocks for advertising 22 000

Bank charges 6 000

Stock drawings 2 500

Salaries 25 000
Rent 32 800
Commission income 43 500

Discount received 6 500

Depreciation of motor vehicles 34 500
Stock damages 13 350

SATHINI PATHIRANA
ACCOUNTING BY SATHII
BBA(UNIVERSITY OF COLOMBO)
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Additional information
 Stocks as at 30.06.2022 211 400

3) The following balances had been extracted from the trial balance of Bhanuka Traders for the year
ended 31. 03. 2023
Dr Cr

Electricity bill 78 500

Telephone 77 000

Salaries 225 000

Sales expenses 16 000

Rent income 75 000
Interest income 124 500

Additional information
1. The electricity bill for the month of March is Rs. 12 500 and it was not paid till 31.03.2023
2. Prepaid telephone charges Rs. 17 000
3. Monthly interest income Rs. 20 000

4. Monthly rent income is Rs. 12 000

Required

1. Extractions of profit or loss statement for the year ended 31.03.2023

2. Extractions of Financial position statement as at 31.03.2023

4) The following extracted trial balance relates to Shenara Enterprises as at 30.06.2022.

Dr Cr

Trade debtors 255 000

Trade creditors 68 000

Office rent 289 000

Motor van Insurance 115 000

Salary for Marketing manager 222 000

Interest income 75 000

Commission income 42 000

SATHINI PATHIRANA
ACCOUNTING BY SATHII
BBA(UNIVERSITY OF COLOMBO)
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Additional information
a) Monthly insurance expense for the Motor van is Rs. 10 000
b) Office rent of Rs. 19 000 had been paid for next the month of July 2022

c) Monthly commission income is Rs.3 000.

d) Interest income receivable is Rs. 15 000

e) Rs.5 000 should be written off as irrecoverable debts from the debtors and 10% provision for
expected losses should be calculated.

Required

1. Extractions of profit or loss statement for the year ended 30.06.2022

2. Extractions of Financial position statement at 30.06.2022

5) Following balances has been extracted from the trial balance of Navidi’s business as at
30.06.2022

Dr Cr

Land and Building 750 000

Furniture 180 000

Machinery 250 000

Accumulated Depreciation as at 01.07.2021

Building 150 000

Furniture 36 000

Machinery 25 000

 Building and furniture are depreciated 20% on cost and machineries 10% on reducing
balance method.
 The value of land is Rs.500 000

Required

1. Relevant ledger accounts as at 30.06.2022

2. Extracted Profit or loss statement for the year ended 30.06.2022

3. Extracted Statement of financial position as at 30.06.2022

SATHINI PATHIRANA
ACCOUNTING BY SATHII
BBA(UNIVERSITY OF COLOMBO)
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6) Following balances relates to Nethuli Enterprises as at 31.03.2023

Trade receivables Rs.85 000

Provision for expected losses as at 01.04.2022 Rs.2 000

It was decided to write off Rs.15 000 as impairment loss and Provision for expected losses
10%

Required

1) Extracted Profit and loss statement for the year ended 31.03.2023
2) Extracted Statement of financial position as at 31.03.2023

7) Following balances were extracted from Menuki Traders as at 31.12.2022

Trade receivables Rs.75 000

Provision for doubtful debts as at 31.12.2020 Rs.5 000

It was decided to write off Rs.5 000 as impairment loss and Provision for expected losses 5%

Required

1) Extracted Profit and loss statement for the year ended 31.12.2022
2) Extracted Statement of financial position as at 31.12.2022

8) The following balances relates to Thisumi Enterprises as at 31.03.2023

Trade receivables Rs.125 000

Provision for expected losses as at 01.04.2022 Rs.22 000

It was decided to write off Rs.25 000 as impairment loss and Provision for expected losses 10%

Required

3) Extracted Profit and loss statement for the year ended 31.03.2023
4) Extracted Statement of financial position as at 31.03.2023

SATHINI PATHIRANA
ACCOUNTING BY SATHII
BBA(UNIVERSITY OF COLOMBO)
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9) The following balances were extracted from Dakshika Traders as at 31.12.2021

Trade receivables Rs.275 000

Provision for doubtful debts as at 31.12.2021 Rs.15 000

It was decided to write off Rs.5 000 as impairment loss and Provision for expected losses 10%

Required
1. Extracted Profit and loss statement for the year ended 31.12.2022

2. Extracted Statement of financial position as at 31.12.2022

10) Chetha Traders purchased a Rs. 675 000 worth building on 01.04.2022. Useful life and the
residual value are estimated as 10 years and Rs. 75 000 respectively. Calculate the annual
depreciation on building as at 31.03. 2023.

11) The cost of office equipment is Rs.200 000 annual depreciation is calculated 10% on cost.
Accumulated depreciation as at 01.01.2022 Rs.40 000. Calculate depreciation for the year
ended 31.12.2022 and extracts of financial statements.

12) The cost of building of Mehnaz Retailers is Rs. 1 000 000 and the accumulated depreciation on
01.04.2022 is Rs.200 000. Annual depreciation is 10%. Calculate the annual depreciation for
building on the reducing balance method for the year ended 31.03.2023.

13) Zainab has 10 items of which she bought for Rs.6 each. They are normally sold for Rs.8 each.
However they have been damaged and now only be sold for Rs.4 each. Before they can be
sold, Yaha will have to spend Rs.1 per item on new labels and packaging.

Required
1. Extractions of profit and loss statement
2. Extractions of statement of financial position

14) The Amana stationery company bought 20 boxes of photocopier paper at Rs.5 per box and due
to a flood in their stockroom 05 of the boxes were damaged. They were offered for sale at Rs.3

per box. All were unsold at the end of the company’s financial year.
Required
1. Extractions of profit and loss statement

2. Extractions of statement of financial position

SATHINI PATHIRANA
ACCOUNTING BY SATHII
BBA(UNIVERSITY OF COLOMBO)
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15) The stock of Rs.80 000 had been damaged and insurance company agreed to pay 80%.

Required

1. Relevant ledger accounts

2. Extracted Statement of financial position and extracted profit or loss statement

16) Closing stocks as at 31.12.2022 Rs.156 000 Rs. 14 000 worth stocks in transit on 31.12.2022 and
no entry has been made regarding this.
17) The business has sent Rs.450 000 worth stocks for sale or return basis. The cost of the inventory
is Rs.400 000 and it was informed that 20% of the inventory has been sold but the firm has
recorded total Rs.450 000 as sales.

18) Nishda traders is a VAT registered organization and credit sales including VAT Rs.750 000 and
cash purchases including VAT Rs.360 000. VAT is 20%.

Required
1. Prepare VAT control account, Sales account, Cash account and Debtors account
2. Prepare VAT control account, Sales account, Cash account and Debtors account if this is a
non VAT registered organization.

19) The following balances were extracted from the books of Chirathi Traders for the year ended

31.12.2022.
Salary 2 000 000

Employee provident fund payables 200 000

The contributions of Employer and Employee for EPF are 15% and 10% respectively. Employer
contribution of ETF is 3%. Except for employee contribution of 10% no other entries have been
made.

Required

1. Extracted Profit and loss statement for the year ended 31.12.2022
2. Statement of financial position as at 31.12.2022

20) On 01.01.2023 a machinery was sold for Rs. 950 000 which had been purchased for
Rs. 1 100 000. The total depreciation of this machine at the date of sale was Rs. 200 000.
Prepare disposal of machinery account.

SATHINI PATHIRANA
ACCOUNTING BY SATHII
BBA(UNIVERSITY OF COLOMBO)
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21) The following details have been extracted from the books of Nadhara Enterprises as at
31.12.2021. Motor vehicle Rs. 1 200 000. Provision for depreciation as at 31.12.2021.
Rs.240 000 on 01.01.2022 Rs. 650 000 worth motor vehicle has been sold for Rs. 575 000.
Accumulated depreciation of this motor vehicle as at 01.01. 2022 was Rs. 60 000.

Required

1. Journal entries to record the above transaction

2. Motor vehicle account, provision for depreciation account and disposal of motor vehicle account

22) On 01.04.2022 the motor vehicle was sold for Rs. 600 000 which had been purchased for Rs.
750 000 on 01.04. 2018. Annual depreciation should be 20% on straight line method.

Required

1. Motor vehicle account, provision for depreciation account for the year ended
31.12.2022

SATHINI PATHIRANA
ACCOUNTING BY SATHII
BBA(UNIVERSITY OF COLOMBO)