EduAdda By Sailesh Goenka

FINAL ACCOUNTS - WITH ADJUSTMENTS

Class 11 - Accountancy

1. The following information is given in Trial Balance: [1]

Bad Debt Rs 3,000 Provision for Bad Debts Rs 3,500 Debtors Rs 40,000

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Additional information: It is desired to make a provision for doubtful debts @ of 10% on debtors. The amount
debited to P & L A/c is:

a) Rs 6,500 b) Rs 3,500

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c) Rs 5,000 d) Rs 4,000
2. Insurance Premium paid during the year is ₹ 10,000 and Opening Prepaid Insurance is ₹ 3,000. Insurance [1]
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Expenses shown in the Profit and Loss Account will be:

a) ₹ 10,000 b) ₹ 13,000

c) ₹ 7,000 d) ₹ 3,000
ka
ab

3. Closing Stock is valued at [1]

a) Cost b) At Cost or Net Realisable Value, whichever

en
dd

is less

c) Net Realisable Value d) Market Value

4. Income Receivable (Accrued Income) is: [1]
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a) Income unearned b) None of these

c) income earned and received d) income earned but yet to be received

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5. Accrued Income, if given outside the Trial Balance is shown in: [1]

a) Profit and Loss Account b) Balance Sheet

c) Trading Account d) P & L Account and Balance Sheet

6. Provision for Doubtful Debts is made on the debts that are: [1]

a) None of these b) Not doubtful of recovery

c) Doubtful of recovery d) Doubtful of recovery and Not doubtful of

recovery
7. On which side of the Balance sheet the prepaid expenses shows [1]

a) Liabilities side b) Outside the balance sheet

c) Assets side d) None of these

8. Wages paid for the installation of the machine is added to the cost of machine because of: [1]

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 a) Cost Principle b) Accrual Concept

c) Materiality Principle d) Matching Principle

9. Prepaid Expenses are deducted from the expense because of: [1]

a) Accrual Concept b) Prudence Concept

c) Revenue Recognition Concept d) Matching Concept

10. A machine was purchased in Bihar. During transit, the machine was damaged and the cost of repairs incurred is [1]
Rs 20,000. This expense is treated as:

a) Capital expense b) Revenue expense

c) None of these d) Deferred Revenue expense

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11. State True or False: [5]
(i) Prepaid rent is a personal account. [1]
(ii) Accrued income is an asset. [1]
(iii) Repairs to second-hand machinery before it is put to use are capitalised. [1]

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(iv) If a closing stock appears in Trial Balance then it will be appearing in the balance sheet. [1]
(v) Accrued income appearing in the Trial Balance is shown in P & L A/c. [1]
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12. Fill in the blanks: [4]
(i) The provision for discount on debtors is calculated after deducting the provision for doubtful debts [1]
from ________. ka
ab

(ii) Closing stock is shown in Financial Statements at ________ or ________ whichever is less. [1]
(iii) Accrued income is an ________. [1]
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(iv) If a closing stock appears in Trial Balance then it will be appearing in ________. [1]
dd

13. Wages paid for erection of machinery are debited to __________. [1]

a) Profit and loss account b) Deferred wages account

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c) Machinery account d) Wages account

14. Which of the following are an example of Revenue Expenditure [1]
(a) Preliminary expenses for floating a company
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(b) Renewal expenses/fee of patent.

(c) Depreciation on fixed assets.
(d) Repair of machinery normal or due to negligence of operator
(e) Expenses for obtaining a license.
Options are as follows

a) a,b,c,d,e, b) a,b,c,d,

c) b,c,d d) c,d,e
15. Under which accounting concept is Provision for Doubtful Debts made? [1]
16. Accrued income is credited to the profit and loss account and shown in the balance sheet as a current asset. [1]
Why?
17. What are the methods of recording Depreciation? [1]
18. Unearned Income is credited to Profit and Loss Account. Do you agree with the statement? [1]
19. Accrued income and income due but not received are the same. Do you agree? [1]

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20. What journal entry will be passed for an outstanding salary? [1]
21. Why are prepaid expenses segregated from the current year's expenses and taken to the balance sheet as a [1]
current asset?
22. Provision for discount on debtors is made before making provision for doubtful debts? Do you agree? [1]
23. Rahul's trial balance provide you the following information [1]

Debtors Rs 80,000

Bad Debts Rs 2,000

Provision for bad debts Rs 4,000

It is desired to maintain a provision for bad debts of Rs 1,000. State the amount to be debited/credited in profit
and loss account.

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24. What adjustment is made of outstanding expenses while preparing final accounts? [1]
25. Why is it necessary to record the adjusting entries in the preparation of final accounts? [3]
26. Extract of Trial Balance [3]

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as on 31st March, 2013

Particulars Go y S Debit Balance(Rs) Credit Balance(Rs)

Capital 10,000

Additional Information
Interest on capital to be allowed @ 12% per annum.
ka
ab

Show effect on profit and loss account and balance sheet.

27. The following is the extract from the Trial Balance: [3]
en
TRIAL BALANCE as at...
dd

Particulars Dr. (₹) Cr. (₹)

Sundry Debtors 1,00,000 -

uA

Additional Information:
i. Write off ₹ 1,000 as further bad debts.
Ed

ii. Show the relevant extract in the Profit and Loss Account and Balance Sheet.
28. Write notes on the following: [3]
i. Accrued Income
ii. Unearned Income
iii. Provision for Doubtful Debts
29. Amount of sundry debtors in Trial Balance is ₹ 7,00,000. Write off ₹ 5,000 as bad debts and make Provision for [3]
Doubtful Debts @ 10% on sundry debtors. Pass necessary Journal entries.
30. Give Journal entries for the following adjustments in final accounts: [3]
i. Salaries ₹ 5,000 are outstanding.
ii. Insurance amounting to ₹ 2,000 is paid in advance.
iii. ₹ 4,000 for rent have been received in advance.
iv. Commission earned but not received ₹ 1,000.
v. Interest on Capital ₹ 1,500.
vi. Interest on Drawings ₹ 300.

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 vii. Write off ₹ 2,000 as further debts.
viii. Closing Stock ₹ 3,000.
31. EXTRACTS OF TRIAL BALANCE [3]
as at 31st March, 2019

Dr.(₹) Cr. (₹)

Commission Received 15,000

Adjustment: Commission earned but not received ₹3,000.

32. Why is it necessary to create a provision for doubtful debts at the time of preparation of final accounts? [3]
33. EXTRACTS OF TRIAL BALANCE [3]
as at 31st March, 2017

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Dr.(₹) Cr. (₹)

Debtors 60,000

Adjustment:- Create a provision for Bad and Doubtful Debts @ 5% on Debtors.

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34. Insurance Premium paid by a firm on 1st December 2017 for the year upto 30th November 2018 was ₹18,000 [3]
and insurance premium paid on 1st December 2018 for the year upto 30th November 2019 was ₹30,000. What
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amount will be debited to Profit & Loss Account for the year ended 31st March 2019?
35. Extract of Trial Balance [3]
ka as on 31st March, 2013
ab

Name of Accounts Debit Balance(Rs) Credit Balance(Rs)

Wages Paid 66,000

en
Salary Paid 16,500
dd

Additional Information
Wages Rs 6,000 and salary Rs 1,500 are outstanding.
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Pass an adjusting entry and show how will this appear in final accounts.
36. Following is the extract from the Trial Balance of Dass as at 31st March, 2019: [3]
TRIAL BALANCE
Ed

as at 31st March, 2019

Name of Account Dr. (₹) Cr. (₹)

Sundry Debtors 3,00,000 -

Additional Information: Create a Provision for Doubtful Debts @ 5% on Sundry Debtors.

Pass necessary entry and show these items in the Profit and Loss Account and Balance Sheet.
37. What is meant by provision for doubtful debts? How are the relevant accounts prepared and what journal entries [3]
are recorded in final accounts? How is the amount for provision for doubtful debts calculated?
38. Following balances are taken from the Trial Balance of a trader as at 31st March, 2019: [3]
TRIAL BALANCE
as at 31st March, 2019

Heads of Accounts Dr. (₹) Cr. (₹)

Sundry Debtors 1,00,000 -

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 Bad Debts 2,000 -

Discount Allowed 1,500 -

Provision for Discount on Debtors - 1,000

Provision for Doubtful Debts - 6,000

You are required to show extracts of Profit and Loss Account for the year ending 31st March, 2019 and from the
Balance Sheet as on that date after taking into consideration the following:
i. Make a Provision for Doubtful Debts @ 3% of the Sundry Debtors.
ii. Make a Provision for Discount on Debtors @ 2%.
39. Mention any four important adjustments that are made for the preparation of trading and profit and loss account. [4]
40. Trial Balance of Gopal as at 31st March, 2019 was as follows: [4]

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Heads of Accounts Dr. (₹) Cr. (₹)

Purchases 8,12,525 -

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Sales - 12,62,000

Provision for Doubtful Debts - 26,000

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Sundry Debtors 2,51,000 -

Sundry Creditors - 1,52,630

ka
ab

Bills Payable - 20,250

Opening Stock 1,33,625 -

en
Wages 1,15,685 -
dd

Salaries 27,875 -

Furniture 36,250 -
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Postage 21,130 -

Power and Fuel 6,750 -

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General Expenses 29,155 -

Bad Debts 2,625 -

Loan to Ram @ 10% p. a. (1st

15,000 -
December, 2018)

Cash in Hand and at Bank 50,000 -

General Expenses Outstanding - 3,500

Drawings A/c 22,260 -

Capital A/c - 50,000

Outstanding Wages - 10,000

Input CGST 5,000 -

Input SGST 5,000 -

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 Input IGST 8,000 -

Output CGST ... 4,000

Output SGST - 4,000

Output IGST - 9,500

Total 15,41,880 15,41,880

Prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as at that
date after following adjustments:
i. Stock on 31st March, 2019 was ₹ 62,750.
ii. Depreciation on furniture is to be charged @ 10%.

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iii. Sundry Debtors include an amount of ₹ 2,500 due from a customer who has become insolvent.
iv. The remaining debtors are not considered to be doubtful of recovery.
v. Goods costing ₹ 7,500 plus IGST @ 12% were destroyed by fire and insurance company admitted a claim

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for ₹ 8,000.
vi. Received goods from Rahul & Co. of ₹ 6,000 plus IGST @ 12% on 27th March, 2019 but the invoice of
purchase was not recorded in the Purchases Book.
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41. EXTRACTS OF TRIAL BALANCE [4]
as at 31st March, 2019

Dr.(₹) Cr.(₹)
ka
ab

Machinery 5,00,000
en
Furniture 80,000
dd

Adjustments:- Machinery is to be depreciated @ 10% p.a. and furniture @ 20% p.a.

42. Following is the Trial Balance of Sanjiv as at 31st March, 2019: [4]
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Particulars Dr. (₹) Cr. (₹)

Cash in Hand 1,080 -

Ed

Cast at Bank 5,260 -

Purchases 81,350 -

Returns Outward - 1,000

Sales - 1,97,560

Returns Inward 1,360 -

Wages 20,960 -

Fuel and Power 9,460 -

Carriage on Sales 6,400 -

Carriage on Purchases 4,080 -

Stock on 1st April, 2018 11,520 -

Building 60,000 -

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 Freehold Land 20,000 -

Machinery 40,000 -

Salaries 30.000 -

Patents 15.000 -

General Expenses 6,000 -

Insurance 1,200 -

Capital - 1,42,000

Drawings 10,490 -

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Sundry Debtors 29.000 -

Sundry Creditors - 12,600

Input CGST 2,500 -

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Input SGST 2,500 -

Output IGST - 5,000

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Total 3,58,160 3,58,160

You are required to prepare Trading and Profit and Loss Account for the year ending 31st March, 2019 and
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Balance Sheet as on that date, after considering the following adjustments:
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i. Stock at cost on 31st March, 2019 is ₹ 13,600.

ii. Machinery is to be depreciated @ 10% and patents @ 20%.
en
dd

iii. Salaries for the month of March, 2019 of ₹ 3,000 were unpaid.
iv. Insurance included a premium of ₹ 170 for next year.
v. Wages include ₹ 4,000, spent on constructing a shed for employees and visitors.
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vi. Provision for Doubtful Debts is to be created to the extent of 5% on Sundry Debtors.
43. From the following information, prepare Provision for Doubtful Debts Account and show them in the Profit and [4]
Loss Account and the Balance Sheet:
Ed

TRIAL BALANCE
as at 31st March, 2019

Heads of accounts Dr. (₹) Cr. (₹)

Sundry Debtors 1,00,000 -

Bad Debts 6,000 -

Provision for Doubtful Debts - 7,000

Additional Information:
Sundry Debtors include ₹ 10,000 receivable from a customer, who has become insolvent. Official Receiver has
declared a dividend of 50 paise in a rupee. Maintain a provision for doubtful debts @ 5% on sundry debtors.
44. Extract of Trial Balance [4]
as on 31st March, 2013

Name of Accounts Debit Balance(Rs) Credit Balance(Rs)

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 Bad Debts 1,600

Provision for doubtful Debts(1st April, 2012) 5,000

Debtors 1,60,000

Additional Information
Create a provision for doubtful debts @ 5% on debtors.
Pass necessary adjustment entries and show how will it appear in the financial statements of company.
45. EXTRACTS OF TRIAL BALANCE [4]
as at 31st March, 2017

Dr. (₹) Cr.(₹)

Bad-Debts 8,000

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Sundry Debtors 2,00,000

Adjustment:- Write off further Bad-debts ₹10,000.

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46. Extracts of Trial Balance as at 31st March, 2017: [4]
Go y S Dr. ₹ Cr. ₹

Sundry Debtors (including Dewan for dishonoured bill of ₹20,000) 4,80,000 —

Provision for Doubtful Debts — 24,000

Bad Debts 10,000 —

ka
ab

Adjustments:
i. 3
th of Dewan’s bill is irrecoverable.
en
4

ii. Create a provision of 6% on Sundry Debtors.

dd

Show the effect on Profit and Loss Account and Balance Sheet.
47. While Preparing final accounts how will you deal with the following items appearing in a trial balance of a [4]
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proprietor. (i) Closing stock (ii) Outstanding expenses

48. EXTRACTS OF TRIAL BALANCE [4]
as at 31st March, 2019
Ed

Dr. (₹) Cr. (₹)

Capital A/c 5,00,000

Drawings A/c 80,000

Adjustment:- Charge ₹3,000 as interest on drawings.

₹ [4]
49.
Balance of Provision for Doubtful Debts on 1st April, 2017 3,000

Bad Debts written off in the year ended 31st March, 2018 2,000

Sundry Debtors after writing off Bad Debts 60,000

Bad Debts written off in the year ended 31st March, 2019 500

Sundry Debtors before writing off Bad Debts 20,500

Maintain Provision for Doubtful Debts at 5%.

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 Prepare Bad Debts Account and Provision for Doubtful Debts Account.
50. Give the adjustment entry and the treatment in final accounts of the following: [4]
i. Accrued income
ii. Unearned income
51. From the following Trial Balance of Rajan, prepare Trading and Profit and Loss Account for the year ended 31st [6]
March, 2019 and Balance Sheet as at that date after taking into account the adjustments given below:
TRIAL BALANCE as at 31st March, 2019

Particulars Dr. (₹) Cr. (₹)

Rajan’s Capital - 2,90,000

Rajan’s Drawings 7,600 -

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Purchases 89,000 -

Sales - 1,50,000

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Sales Return 2,800 -

Purchases Return - 4,500

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Stock on 1st April, 2018 12,000 -

Wages 8,000 -

Building
ka 2,20,000 -
ab

Freight and Carriage inwards 20,000 -

en
Trade Expenses 2,000 -
dd

Advertisement 2,400 -

Interest - 3,500
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Taxes and Insurance 1,300 -

Debtors 65,000 -
Ed

Creditors - 12,000

Bills Receivable 15,000 -

Bills Payable - 7,000

Cash at Bank 12,000 -

Cash in Hand 1,900 -

Salaries 8,000 -

Total 4,67,000 4,67,000

Adjustments:
i. Stock at cost on 31st March, 2019 was ₹ 18,000. Its Net Realisable Value (Market Value) was ₹ 15,000;
ii. Insurance of ₹ 400 was prepaid;
iii. Outstanding liabilities were: Salaries ₹ 2,000; Taxes ₹ 1,300; and

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 iv. Depreciate Building at 2% p.a.
52. The following balances were extracted from the books of Mr. Din Dayal as at 31st March, 2019: [6]

Particulars ₹ Particulars ₹

Stock at the beginning 41,000 Purchases 2,20,000

Rent 9,600 Sales 2,80,000

Salary 20,000 Returns (Dr.) 6,000

Bad-Debts 400 Returns (Cr.) 2,000

Provision for Doubtful Debts 3,000 Carriage Inward 3,500

Travelling Expenses 1,400 Carriage Outward 500

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Insurance Premium 1,800 Capital 1,75,000

Proprietor’s Withdrawals 4,000 Loan (Cr.) 20,000

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Telephone Charges 7,300 Debtors 40,000

Printing and Advertising 5,000 Creditors 27,000

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Commission (Cr.) 6,000 Investments 5,000

Rent from Sublet 4,800 Interest on Investments 600

ka
ab

Land and Building 1,40,000

Furniture 10,000
en
Cash 2,900
dd

Prepare Trading and Profit & Loss Account for the year and a Balance Sheet as at 31st March, 2019, after taking
into account the following :
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i. Stock was valued at ₹75,000 on 31st March, 2019. You are informed that a fire occurred on 28th March,
2019 in the godown and stock of the value of ₹10,000 was destroyed. Insurance Company admitted a claim
of 75%.
Ed

ii. One-third of the commission received is in respect of work to be done next year.
iii. Create a provision of 5% for Doubtful Debts.
iv. 50% of Printing and Advertising is to be carried forward as a charge in the following year.
v. ₹900 is due for interest on loan.
vi. Provide for Manager’s Commission at 10% on Net Profit before charging such commission.
Hint:- Manager’s Commission will be ₹6,000.
53. From the following balances extracted from the book of M/s Manju Chawla on 31st March, 2017. You are [6]
requested to prepare the trading and profit and a loss account and a balance sheet as on this date.

Account Title Amount (₹ ) Amount (₹ )

Opening Stock 10,000

Purchases and Sales 40,000 80,000

Returns 200 600

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 Wages 6,000

Dock and Clearing Charges 4,000

Lightning 500

Miscellaneous income 6,000

Rent 2,000

Capital 40,000

Drawings 2,000

Debtors and Creditors 6,000 7,000

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Cash 3,000

Investment 6,000

Patent 4,000

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Plant and Machinery 43,000

Donations and Charity 600

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Sales tax collected 1,000

Furniture ka 11,300
ab

1,36,600 1,36,600

Additional Information
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Closing stock was ₹ 2,000
dd

i. Interest on drawings @ 7% and interest on capital @ 5%.

ii. Land and machinery is depreciated at 5%.
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iii. Interest on investment @ 6%.

iv. Unexpired rent ₹ 100.
v. Charge 5% depreciation on furniture.
Ed

54. The undermentioned Trial Balance was extracted from the books of M/s Mahavir & Sons as at 31st March, [6]
2017:
TRIAL BALANCE

Dr. (₹) Cr. (₹)

Capital 3,50,000

Drawings 48,000

Goodwill 15,000

Plant and Machinery 2,50,110

Purchases 95,000

Sales 3,00,000

Sundry Debtors 54,200

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 Creditors 16,800

Sales Returns 20,700

Purchase Returns 1,200

Advertising 6,000

Opening Stock 45,400

Cash in hand 22,900

Wages 25,000

Telephone Charges 3,000

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Salaries 36,000

Printing and Stationery 390

Sundry Income 7,500

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Rent 2,200

Investments 30,000
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General Expenses 22,600

Bills Payable ka 1,000

ab

6,76,500 6,76,500

You are required to prepare Final Accounts after taking into account the following adjustments:-
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i. Closing Stock on 31st March, 2017 was valued at ₹70,300.
dd

ii. Write off l/5th of Advertising expenses.

iii. Sundry debtors include an item of ₹2,000 due from a customer who has become insolvent and nothing is
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recoverable from his estate.

iv. Create a provision for Doubtful Debts @ 5%.
v. Interest on Investments at 15% is receivable for the full year.
Ed

vi. Annual payments are: Salaries ₹43,200 and Rent ₹2,400.

55. On 31st March, 2017 the following Trial Balance was extracted from the books of Sh. Ghanshyam Das:- [6]

Dr. ₹ Cr. ₹

Capital Account 2,00,000

Debtors and Creditors 40,000 25,000

Loan on Mortgage 30,000

Interest on Loan 2,250

Discount 1,800

Stock on 1st April, 2016 20,000

Motor Vehicle 50,000

Cash at Bank 4,450

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 Investments 16,000

Wages 18,000

Land and Building 2,80,000

Bad-Debts 1,500

Purchases and Sales 2,50,000 4,80,000

Purchases and Sales Returns 12,000 10,000

Carriage Outward 8,000

Carriage Inward 6,500

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Salaries 7,200

Outstanding Salaries 600

Rates, Taxes and Insurance 15,000

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Advertising 5,000

General Expenses 6,400

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Bills Receivable and Payable 7,500 5,400

Prepaid Insurance ka 3,000

ab

7,52,800 7,52,800

Prepare Trading and Profit & Loss Account for the year ended 31st March, 2017 and Balance Sheet as at that
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date, after making adjustments for the follow in g matters:
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i. Depreciate Land and Building at 2.5% and Motor Vehicles at 20%.

ii. Interest on Loan at 15% p.a. is unpaid for six months.
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iii. Ghanshyam Das withdrew ₹2,000 for his private use. This amount was included in general expenses.
iv. Interest on Investments is receivable for full year @ 10%.
v. Provide for Manager’ s Commission at 10% on Net Profit after charging such commission.
Ed

vi. Stock in hand on 31st March, 2017 was valued at ₹25,000 (Realisable value ₹22,000).
56. Following is the Trial Balance of Mr. Gautam as at 31st March, 2017: [6]

Dr Balances ₹ Cr. Balances ₹

Goodwill 30,000 Purchase Returns 2,650

Land & Buildings 60,000 Capital A/c 2,03,000

Plant & Machinery 40,000 Bills Payable 13,800

Loose Tools 3,000 Sundry Creditors 30,000

Bills Receivable 2,000 Sales 1,15,000

Stock 1st April, 2016 40,000

Purchases 51,000

Wages 20,000

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 Carriage Inwards 1,200

Coal & Gas 5,600

Salaries 4,000

Rent 2,700

Discount allowed 1,500

Cash at Bank 25,000

Cash in hand 1,400

Sundry Debtors 45,000

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Repairs 1,800

Printing & Stationery 600

Bad-debts 1,200

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Advertisements 3,500

Furniture and Fixtures 1,200

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General Expenses 250

Investments ka 5,000
ab

Drawings 15,000

Carriage Outwards 1,500

en
dd

Sales Returns 2,000

3,64,450 3,64,450
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You are required to prepare Final Accounts after taking into account the following adjustments:
i. Closing Stock on 31st March, 2017 was ₹60,000.
ii. Depreciate Plant and Machinery at 5%, Loose Tools at 15% and Furniture and fixtures at 5%.
Ed

iii. Provide 2 % for discount on Sundry Debtors and also provide 5% for Bad and Doubtful Debts on Sundry
1

Debtors.
iv. Only three quarter’s rent has been paid, the last quarter’s rent being outstanding.
v. Interest earned but not received ₹600.
vi. Write off 1

4
th of Advertisement expenses.
57. Prepare Trading and Profit & Loss Account and Balance Sheet as at 31st March, 2017, from the following [6]
balances:

Particulars ₹ Particulars ₹

Capital A/c 5,00,000 Stock on 1.4.2016 67,000

Drawings A/c 36,000 Salaries & Wages 24,000

Bills Receivable 5,800 Outstanding Salaries and Wages 2,000

Plant & Machinery 3,80,000 Insurance (including premium of ₹1,000 per annum paid upto 2,600
30.9.2017)

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 Sundry Debtors 58,000 Cash 46,600

Loan A/c (Cr.) at 12%

20,000 Bank Overdraft 15,000
p.a.

Manufacturing Wages 40,000 Repairs & Renewals 1,600

Returns Inwards 3,000 Interest & Discount (Dr.) 4,400

Purchases 1,20,000 Bad-Debts 4,000

Sales 2,60,000 Sundry Creditors 30,000

Rent 28,000 Fixtures & fittings 12,000

Commission Received 6,000

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Adjustments:-
i. Stock on hand on 31 st March, 2017 was ₹80,000.

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ii. Further Bad-debts written off ₹2,000 and Create a provision of 5% on Sundry Debtors.
iii. Rent has been paid up to 31 st May, 2017.
iv. Manufacturing wages include ₹10,000 of a new Machinery purchased on 1st October, 2016.
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v. Depreciate Plant and Machinery by 10% p.a. and Fixtures and Fittings by 20% P.a.
vi. Commission earned but not received ₹1,000.
vii. Interest on Loan for the last two months is not paid.
ka
ab

viii. Goods worth ₹4,000 were distributed as free samples.

58. From the following Trial Balance and other information prepare Trading and Profit and Loss Account for the [6]
en
year ended 31st March 2016 and Balance Sheet as at that date.
dd

Heads of Accounts Debit (₹) Credit (₹)

Sundry Debtors 32,000

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Stock (1st April 2015) 22,000

Cash in hand 35
Ed

Cash at bank 1,545

Plant and Machinery 17,500

Sundry Creditors 10,650

Trade Expenses 1,075

Sales 1,34,500

Salaries 2,225

Carriage Outwards 400

Rent 900

Bills Payable 7,500

Purchases 1,18,870

Discounts 1,100

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 Premises 34,500

Capital (1st April 2015) 79,500

Total 2,32,150 2,32,150

Additional information: Stock on 31st March 2016 was ₹12,450. Rent was unpaid to the extent of ₹85 and
₹150 were outstanding for Trade Expenses. ₹400 are to be written off as bad debts out of the above debtors, and
5% is to be provided for doubtful debts. Depreciate plant and machinery 10% and premises by 2%. Manager is
entitled a commission of 5% on net profit after charging his commission.
59. The following are the balances extracted from the books of Raghunath Ji as on 31st March, 2019. From these [6]
balances, prepare his Trading and Profit & Loss Account and Balance Sheet as at that date:

Dr. (₹) Cr. (₹)

esh
Opening Stock 12,000

Purchases 40,000

ail
Sales 86,000

Discount 400
Go y S
Sales Return 6,000

Buildings 50,000
ka
ab

Debtors 16,000

Salaries 2,400
en
Office Expenses 1,200
dd

Wages 10,000

Purchase Return 4,000

uA

Interest 800

Travelling Expenses 400

Ed

Fire Insurance Premium 800

Machinery 20,000

Carriage on Purchases 700

Commission 400

Cash in hand 2,300

Rent and Taxes 1,800

Capital 62,000

Creditors 10,800

1,64,000 1,64,000

Adjustments
i. Closing Stock was valued at ₹16,000.

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 ii. Wages ₹2,000 and salaries ₹1,200 are outstanding.
iii. Rent for two months at the rate of ₹500 per month is outstanding.
iv. Depreciate Buildings by 5% and machinery by 10%.
v. Prepaid Insurance ₹200.
60. From the following Trial Balance extracted from the books of A, prepare Trading and Profit & Loss Account for [6]
the year ending 31st March, 2019 and a Balance Sheet as at that date:-

Dr.(₹) Cr.(₹)

Furniture 640

Loose Tools 6,250

Buildings 7,500

esh
Capital Account 12,500

Bad-debts 125

ail
Provision for Bad-debts 200

Sundry Debtors and Creditors 3,800 2,500

Go y S
Stock on 1st April, 2018 3,460

Purchases and Sales 5,475 15,450

ka
ab

Bank Overdraft 2,850

Sales Return and Purchases Return 200 125

en
Stationery 450
dd

Interest Account 118

uA

Commission 375

Cash in hand 650

Taxes and Insurance 1,250

Ed

General Expenses 782

Salaries 3,300

34,000 34,000

The following adjustments are to be made:

i. Stock in hand on 31st March, 2019 was ₹3,250.
ii. Depreciate Building at 5% and Furniture at 10%. Loose Tools are revalued at ₹5,000 at the end of the year.
iii. Salaries ₹300 and taxes ₹120 are outstanding.
iv. Insurance amounting to ₹100 is prepaid.
v. Write off a further ₹100 as Bad-Debts and provision for Doubtful Debts is to be made equal to 5% on Sundry
Debtors.
vi. Half of the stationery was used by the proprietor for his personal purposes.
61. From the following particulars taken out from the books of Anand General Store, prepare trading and profit and [6]

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 loss account for the year ended 31st March 2013 and balance sheet as on that date.

Name of Accounts Amt(Rs) Name of Account Amt(Rs)

Plant and machinery on 1st April

16,00,000 Rent 24,000
2012

Plant and machinery purchased on Insurance premium paid from 1st January 2012 to
40,000 2,400
1st July, 2012 31st December, 2013

Sundry debtors 2,40,000 Cash at Bank 10,800

Creditors 64,000 Wages 40,000

Furniture 10,000 Octrol 800

esh
Motor car 1,40,000 Advertising 9,600

Purchases 3,20,000 Carriage Inwards 20,400

Sales 5,60,000 Carriage Outwards 4,000

ail
Sales Returns Go y S 30,000 Fuel and Power 31,400

Salaries 72,000 Majoj's capital 7,00,000

Opening Stock 1,20,000 Majoj's drawings 24,000

Motor Car Expenses 12,000 Brokerage 1,400

ka
ab

Stationery 1,000 Donation 10,200

en
Additional Information
dd

i. Closing stock Rs 1,10,000 stock valued at Rs 20,000 was destroyed by fire on 18th March, 2013 but the
insurance company admitted a claim of Rs 13,600 only which was received in April, 2013.
ii. Stationery for Rs 300 was consumed by the proprietor.
uA

iii. Goods costing Rs 2,400 were given away as charity.

iv. A new signboard costing Rs 3,000 is included in advertising.
v. Rent is to be allocated 2/3rd to factory and 1/3rd to office.
Ed

vi. Depreciate machinery by 10% and motor car by 20%.

62. From the following trial balance of M/s Arjun & Sons as at 31st, December, 2013 prepare trading and profit and [6]
loss account and balance sheet.

Name of Accounts Debit Balance(Rs) Credit Balance(Rs)

Drawings and capital 18,000 80,000

Purchases and sales 82,600 1,55,000

Stock (1st January, 2013) 42,000

Returns Outward 1,600

Carriage inward 1,200

Wages 4,000

Power 6,000

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 Machinery 50,000

Furniture 14,000

Rent 22,000

Salary 15,000

Insurance 3,600

8% Bank Loan 25,000

Debtors 20,600

Creditors 18,900

esh
Cash in hand 1,500

2,80,500 2,80,500

Additional Information

ail
i. Closing stock Rs 64,000.
ii. Wages outstanding Rs 2,400.
iii. Bad debts Rs 600 and provisioin for bad doubtful debts to be 5% on debtors.
Go y S
iv. Rent is paid for 11 months.
v. Loan from the bank was taken on 1st July, 2013.
vi. Provide depreciation on machinery @ 10% per annum.
ka
ab

vii. Provide manager's commission at 10% on net profit after charging such commission.
63. Prepare the trading and profit and loss account and a balance sheet of M/s Shine Ltd from the following [6]
en
particulars.
dd

Account Title Amt (₹) Account Title Amt (₹)

Sundry debtors 1,00,000 Bills Payable 85,550

uA

Bad Debts 3,000 Sundry creditors 25,000

Trade expenses 2,500 Provision for Bad Debts 1,500

Ed

Printing and Stationery 5,000 Return outwards 4,500

Rent, rate and taxes 3,450 Capital 2,50,000

Freight 2,250 Discount received 3,500

Sales return 6,000 Interest received 11,260

Motor car 25,000 Sales 1,00,000

Opening Stock 75,550

Furniture and fixtures 15,500

Purchases 75,000

Drawings 13,560

Investments 65,500

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 Cash in hand 36,000

Cash at Bank 53,000

4,81,310 4,81,310

Additional Information
i. Closing stock was valued at ₹ 35,000.
ii. Depreciation charged on furniture and fixtures @ 5%.
iii. Further bad debts ₹ 1,000. Make a provision for bad debts @ 5% on sundry debtors.
iv. Depreciation charged on motor car @ 10%.
v. Interest on drawings @ 6%.
vi. Rent, rates and taxes was outstanding ₹ 200.

esh
vii. Discount on debtors 2%
64. From the following balances extracted from the books of Karan and the additional information, prepare the [6]
trading and profit and loss account for the year ended 31st March, 2013 and also show the balance sheet as on

ail
that date.

Debit Credit
Name of Accounts Amount Amount
Go y S
(Rs. in 000's) (Rs. in 000's)

Stock on 1st April 2012 ka 625

ab

Purchases and sales 903 1,372

Returns 22 13
en
dd

Capital A/c 300

Drawings 45
uA

Land and Buildings 300

Furniture and fittings 80

Ed

Trade debtors and trade creditors 250 450

Cash in hand 35

Investments 100

Interest 5

Commission 30

Direct expenses 75

Postage, stationery, and telephone 25

Fire insurance premium 20

Salaries 90

Bank overdraft 400

2,570 2,570

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 ====== ======

Additional Information
i. Closing stock on 31st March 2013 is valued at Rs 6,50,000. Goods worth Rs 5,000 are reported to have been
taken away by the proprietor for his personal use at home during the year.
ii. Interest on investments Rs 500 is yet to be received while Rs 10,000 of the commission received is yet to be
earned.
iii. Rs 5,000 of the fire insurance premium paid is in respect of the quarter ending 30th June 2013.
iv. Salaries Rs 10,000 for March 2013 and bank overdraft interest estimated at Rs 20,000 are yet to be recorded
as outstanding charges.
v. Depreciation is to be provided on land and buildings @ 5% per annum and on furniture and fittings @ 10%
per annum.

esh
vi. Make a provision for doubtful debts @ 5% of trade debtors
65. The following were the balances extracted from the books of Yogita as on 31st March, 2017: [6]

Debit Balances Amount (₹) Credit Balances Amount (₹)

ail
Cash in hand 540 Sales 98,780

Cash at bank 2,630 Returns outward 500

Go y S
Purchases 40,675 Capital account 62,000

Returns inward ka 680 Sundry creditors 6,300

ab

Wages 8,480 Rent 9,000

Fuel and power 4,730

en
dd

Carriage on sales 3,200

Carriage on purchases 2,040

uA

Opening stock 5,760

Building 32,000
Ed

Freehold land 10,000

Machinery 20,000

Salaries 15,000

Patents 7,500

General expenses 3,000

Insurance 600

Drawings 5,245

Sundry debtors 14,500

Taking into account the following adjusments, prepare the trading and profit and loss account and balance sheet
as at 31st March, 2017.
i. Stock in hand on 31st March, 2017 was ₹ 6,800.
ii. Machinery is to be depreciated at the rate of 10% and patents @ 20%.

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 iii. Salaries for the month of March, 2017 amounting to ₹ 1,500 were outstanding.
iv. Insurance includes a premium of ₹ 170 on a policy expiring on 30th September, 2017.
v. Further bad debts are ₹ 725. Create a provision of @ 5% on debtors.
vi. Rent receivable ₹ 1,000.
66. The trial balance of M/s Taj & Co as on 31st December, 2013 was as follows. [6]

Name of Accounts Amt(Rs) Name of Accounts Amt(Rs)

Purchases 1,62,505 Sales 2,52,400

Sundry debtors 50,200 Provision for doubtful debts 5,200

Opening stock 26,725 Sundry creditors 30,526

esh
Wages 23,137 Bills payable 3,950

Salaries 5,575 Outstanding wages 2,000

Trade expenses accrued but not

Furniture 7 250 700

ail
paid

Postage 4,226 Capital A/c 10,000

Go y S
Power and fuel 1350

Trade expenses 5331

ka
ab

Bad debts 525

Loan to Suraj @ 10% per annum(1st September,

3,000
en
2013)
dd

Cash at bank 10,000

Drawings A/c 4,452

uA

3,04,776 3,04,776

Prepare the trading and profit and loss account for the year ended 31st December, 2013 and the balance sheet
Ed

after considering the following information.

i. Depreciation on Furniture to be charged @10%.
ii. Debtors include an item of Rs 500 due from a customer who has become insolvent.
iii. Provision for doubtful debts @ 5% on sundry debtors is to be maintained.
iv. Goods valued at Rs 1,500 destroyed by fire and insurance company admitted a claim for Rs 1,000.
v. Stock on 31st December, 2013 was Rs 12,550
67. Following is the trial balance of J Subramanium on 31st March, 2013. Pass the closing entries and prepare the [6]
trading and profit and loss account for the year ended 31 st March, 2013.
Trial Balance
as on 31st March, 2013

Debit Credit
Name of Account Amount Amount
(Rs.) (Rs.)

Capital A/c 30,000

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 Stock A/c (1st April, 2012) 6,000

Cash at bank 3,000

Cash in hand 1,320

Machinery A/c 18,000

Furniture and fittings A/c 4,080

Purchases A/c 45,000

Wages A/c 30,000

Fuel and power A/c 9,000

esh
Factory lighting A/c 600

Salaries A/c 21,000

Discount allowed A/c 1,500

ail
Discount received A/c 900

Advertising A/c 15,000

Go y S
Sundry office expenses A/c 12,000

Sales A/c ka 1,50,000

ab

Sundry debtors 25,500

Sundry Creditors 11,100

en
dd

1,92,000 1,92,000
======= ========
uA

Value of closing stock as on 31st March, 2013 was Rs. 8,100.

68. The trial balance of Ramesh Vyas as on 31st March, 2013 was as follows. [6]

Name of Accounts Debit Balance(Rs) Credit Balance(Rs)

Ed

Purchases/sales 81,25,250 1,26,20,000

Provision for doubtful debts 2,60 000

Sundry debtors/sundry creditors 25,10,000 15,26,300

Bills payable 1,97,500

Opening stock 13,36,250

Wages 11,56,850

Salaries 2,78,750

Furniture 3,62,500

Postage 2,11,300

Power and fuel 67,500

Trade expenses 2,91,550

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Bad debts 26,250

Loan to Ram @ 10% 1st December, 2012) 1,50,000

Cash in hand and at bank 5,00,000

Trade expenses accrued but not paid 35,000

Drawings A/c/capital A/c 2,22,600 5,00,000

Outstanding wages 1,00,000

1,52,38,800 1,52,38,800

Prepare the trading and profit and loss account for the year ended 31st March, 2013 and the balance sheet as at
that date after taking into consideration the following information.

esh
i. Stock on 31st March, 2013 was Rs 6,27,500.
ii. Depreciation on furniture is to be charged @ 10%.
iii. Provision for doubtful debts is to be maintained @ 5% on sundry debtors.

ail
iv. Sundry debtors include an item of Rs 25,000 due from a customer who has become insolvent.
v. Goods of the value of Rs 75,000 have been destroyed by fire and insurance company admitted a claim for Rs
Go y S
50,000
vi. Received Rs 60,000 worth of goods on 27th March, 2013 but the invocle of purchases was not recorded in
purchases book. ka
ab
en
dd
uA
Ed

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