1.

From the following balances extracted from the books of M/s Rajendra Kumar
Gupta & Co., pass the necessary closing entries, and prepare a Trading and Profit
and Loss Account.

Opening Stock 1,250 Plant and Machinery 6,230

Sales 11,800 Returns Outwards 1,380
Depreciation 667 Cash in hand 895
Commission (Cr.) 211 Salaries 750
Insurance 380 Debtors 1,905
Carriage Inwards 300 Discount (Dr.) 328
Furniture 670 Bills Receivable 2,730
Printing Charges 481 Wages 1,589
Carriage Outwards 200 Returns Inwards 1,659
Capital 9,228 Bank Overdraft 4,000
Creditors 1,780 Purchases 8,679
Bills Payable 541 Petty cash in hand 47
Bad Debts 180
The value of stock on 31st December1992 was 3,700.

2. From the following Trial Balance prepare the Manufacturing Account, the Trading
andProfit and Loss Account for the year ending 31st March, 1993.

Particulars Debit Credit

Shri. Ranjit's Capital Account 41,000

Shri. Ranjit's Drawing Account 6,100
Mrs. Ranjit's Loan Account 4,000
Sundry Creditors 45,000
Cash in hand 250
Cash at Bank 4,000
Sundry Debtors 40,500
Patents 2,000
Plant and Machinery 20,000
Land and Buildings 26,000
Purchases of raw materials 35,000
Raw material - 1-4-1992 3,500
Work-in-process - 1-4.1992 2,000
Finished Stock - 1-4-1992 18,000
Carriage Inwards 1,100
Wages 27,000
Salary of Works Manager 5,600
Factory Expenses 3,400
Factory Rent and Taxes 2,500
Royalties (paid on sales) 1,200
Sales (less returns) 1,23,400
Advertising 3,000
Office Rent and Insurance 4,800
Printing and Stationery 1,000
 Office Expenses 5,800
Carriage Outwards 600
Discounts 1,400 2,100
Bad Debts 750
2,15,500 2,15,500
4,000 Raw Materials, 4,500 Work-in-progress and 28,000 Finished Goods.

3. Write up a Balance Sheet with the information supplied. Capital Account

Rs.36,000; Drawings 9,000; Cash 1,350; Debtors 40,100, B/R 7,500
B/P .6,000; Fixtures and furniture 6,750; Bank 18,750; Loan from Shylock
9,000; S. Creditors 64,500; Land & Building 21,000; Closing Stock
18,200; Net Profit 7,150.
Balance Sheet of Mohan as on 31 December 1973
Liabilities Assets
Bills Payable 6,000 Cash 1,350
Loan from Shylock 9,000 Bills Receivable 7,500
Sundry Creditors 64,500 Bank 18,750
Mohan's Capital 36,000 Sundry Debtors 40,100
Add: Net Profit 7,150 Stock 18,200
43,150 Fixtures and Furniture 6,750
Less: Drawing 9,000 34,150 Land and Building 21,000
1,13,650 1,13,650

4. From the following Trial Balance of Mr. Shyam as at 31st December 1993, you
are required to prepare a Trading and Profit and Loss Account for the year ended
31st December 1993 and a Balance Sheet as at the date, after making necessary
adjustments.

TRIAL BALANCE
Name of the Account Debit Credit
Mr. Shyam’ s Capital Account 80,000
Mr. Shyam’ s Drawings Account 6,000
Plant and Machinery (balance on 1st Jan. 1993) 20,000
Plant and Machinery (additions on 1st July 1993) 5,000
Stock on 1st January 1993 15,000
Purchases 82,000
Returns Inwards 2,000
Sundry Debtors 20,600
Furniture and Fixtures 5,000
Freight and Duty 2,000
Carriage outwards 500
Rent, Rates and Taxes 4,600
Printing and Stationery 800
Trade Expenses 400
Sundry Creditors 10,000
Sales 1,20,000
Returns outwards 1,000
 Postage and Telegrams 800
Provision for Doubtful Debts 400
Discounts 800
Rent of premises sub-let for year to 30th June 1994 1,200
Insurance Charges 700
Salaries and Wages 21,300
Cash in Hand 6,200
Cash at Bank 20,500
2,13,400 2,13,400
ADJUSTMENTS
1) Stock on 31st December 1993 was valued at 14,600.
2) Write off .600 as bad debts.
3) The provision for Doubtful Debts is to be maintained at 5 % on Sundry Debtors.
4) Create a Provision for Discounts on Debtors and on Creditors at 2 %.
5) Provide for depreciation on Furniture and Fixture at 5 % p.a. and on Plantand
Machinery at 20 % p.a.
6) Insurance Prepaid was 100.
7) A fire occurred on 25th December 1993 in the godown and stock of the value of
5, 000 was destroyed. It was fully insured and the Insurance Company admitted
theclaim in full.

5. From the following balance extracted from the books of M/s. Jaya & Co. and the
subjoined information you are required to prepare the Trading and Profit and Loss
Account for the year ended on 31st December,1994 and also the Balance Sheet as
on that date:-
Particulars Debit Credit

Stock on January 1, 1994 60,500

Purchases and Sales 90,300 1,37,200
Returns 2,200 1,300
Capital Account 30,000
Drawing Account 4,500
Land and Buildings 30,000
Furniture and Fittings 8,000
Sundry Debtors and Creditors 25,000 45,000
Cash in hand 3,500
Investments 10,000
Interest 500
Commission 3,000
Total Direct Expenditure 7,500
Postage, Stationery and Phones 2,500
Fire Insurance Premium 2,000
Salaries 11,000
Bank Overdraft 40,000
Total 2,57,000 2,57,000

a) Closing Stock on 31st December 1994 was valued at 65,000. Goods worth 500 are
 reported to have been taken away by the proprietor for his personal use at home during
1994.
b) Interest on investments 500 is yet to be received while 1,000 of the
commission received is yet to be earned in 1995.
c) 500 of the fire insurance premium paid is in respect of the quarter ending 31st
March, 1995.
d) Salaries 1,000 for December 1994 and Bank Overdraft interest estimated at
2,000 have to be recorded asoutstanding charges.
e) Depreciation is to be provided on Land and Buildings @ 5% and on Furniture and
Fittings @ 10%.
Provision for doubtful debts @ 5% on Sundry Debtors.

6. The following Trial Balance was extracted from the books of M/S Tip Top &
Co. as on 31stDecember, 1993:

Debit Balances:
Plant and Machinery 20,000 Motor car 12,000
Manufacturing wages 34,500 Purchases 1,02,000
Salaries 15,850 Sales Returns 3,100
Furniture 10,000 Bad Debts 1,400
Freight on Purchases 1,860 Interest and Bank charges 400
Freight on Sales 2,140 Cash at Bank 4,200
Buildings 24,000 Cash in Hand 1,120
Manufacturing Expenses 9,500 Credit Balances:
Insurance and Tax 4,250 Capital Account 80,000
Goodwill 25,000 Sundry Creditors 44,560
General Expenses 8,200 Bank Loan 15,000
Factory Fuel and Power 1,280 Purchases Returns 1,740
Sundry Debtors 78,200 Sales 2,50,850
Factory Lighting 950 Reserve for bad debts 2,000
Opening Stock 34,200

Prepare the Trading and Profit and Loss Account for the year ended 31st December
1993 and the Balance Sheet as on that date taking into consideration the following
information:
(a) Stock in hand on 31st December 1993 was valued at 30,500.
(b) Depreciate Plant and Machinery by 10%, Furniture by 5% and Motor Car by
1,000.
(c) Bring Provision for Bad Debts to 5% on Sundry Debtors.
(d) A commission of 1% on the gross profit is to be provided for Works Manager.
(e) A commission of 2% on net profit (after charging the Works Manager's
commission) is to be credited to the General Manager.
7. The following are the balances abstracted from the books of Mr. Nirmal:
Balances ason 31st December, 1992.
Nirmal's Capital 30,000
Nirmal's Drawings 5,000
Furniture and Fittings 2,600
Bank Overdraft 4,200
Creditors 13,300
Business Premises 20,000
Stock on 1st January, 1992 22,000
Debtors 18,600
Rent from Tenants 1,000
Purchases 1,10,000
Sales 1,50,000
Sales Returns 2,000
Discounts - Debit 1,600
Discounts - Credit 2,000
Taxes and Insurance 2,000
General Expenses 4,000
Salaries 9,000
Commission-Debit 2,200
Carnage on Purchases 1,800
Provision for Bad & Doubtful Debts 600
Bad Debts written off 800
Stock on hand on 31st December, 1992 was estimated at 20,000. Rent 300, is
still due from the tenant. Salaries 750, are as yet unpaid. Write off Bad Debts 600
and depreciate Business Premises by 300 and Furniture and Fittings by 266.
Make a provision of 5 per cent on Debtors for Bad and Doubtful Debts and provision
of 2% for Discounts. Allow interest on Capital at 5 percent and carry forward 700
for unexpired insurance. The manager is entitled to a commission of 10% on profits
remaining after charging his commission. Prepare Trading Account, Profit and Loss
Account and BalanceSheet as on 31st December, 1992.

8. Below is the Trial Balance of Mr. Mohan as at December 31, 1994.

Debit Balances Credit Balances
Mohan's Current Account 1,500 Capital Account 50,000
Adjusted Purchases 6,99,200 Loan from Ravi @ 20,000
9% (taken on 1st Jan. 1993)
Salaries 4,200 Sales 7,20,000
Carriage on Purchases 400 Discount 500
on Sales 500 Sundry Creditors 20,000
Lighting 300
Rates and Insurance 400
Buildings 27,000
Furniture 6,000
Sundry Debtors 8,000
Cash on hand 250
Cash at Bank 1,500
Stock (31st December, 61,250
 1994)
8,10,500 8,10,500
Rates have been prepaid to the extent of 175. Bad debts totaling 500 have to be
written off. A provision for doubtful debts @ 5% on debtors is necessary. Buildings
have to be depreciated at 2% and Furniture @ 10%. The manager is entitled to a
commission of5% of net profits before charging such commission.
9. Dilip’ s Trial Balance as on 30th June, 1995 was as under.

Debit Balance Credit Balance

Land and Buildings 20,000 Capital 80,000
Machinery 50,000 Sundry Creditors 8,000
Furniture and Fixtures 4,000 Discount Received 400
Opening Stock 16,300 Outstanding Expenses 1,550
Purchases 80,000 Sales 1,50,500
Salaries 6,000 Repairs and Renewals 6,000
Provision
Carriage on Sales 1,500
Freight on Purchases 2,000
Customs duty on Purchases 8,000
Advertising 5,400
Wages 15,000
Rent 3,000
Postage and Stationery 1,500
General Expenses 3,200
Repairs to Machinery 2,000
Loan to Kumar @ 9% (given 5,000
on 1st January, 1995)
Prepaid Insurance 200
Sundry Debtors 20,000
Cash in hand 250
Cash at Bank 3,100
2,46,450 2,46,450
The following further information is given:
(a) Stock on 30th June, 1995 was 14,900.
(b) Machinery was purchased on 1st January, 1995 for 10,000 and was installed by
own workmen. The wages for this purpose amounted to 500. This amount is
included in Wages Account.
(c) Depreciation is to be written off @ 3% on Land and Buildings: 10% on Machinery;
and 5% on Furniture and Fixtures.
(d) Provision for Repairs and Renewals is credited with 1,500 every year.
(e) A reserveof 2% is to be made on creditors for discount.
From the information given above, prepare Trading Account Profit and Loss Account
and Balance Sheet as at that date.