CA Shreyas Parekh

9831190759
Accountancy | Economics | Commerce | Business Studies | Taxation

Max. Marks: 60
Time allotted: 2 hours

1. From the following Trial Balance of Sh. Parveen Kumar, prepare Trading and Profit &
Loss Account for the year ending 31st March, 2019 and a Balance Sheet as at that date:
Dr. Balances (₹) Cr. Balances (₹)

Stock at Commencement 40,000 Sales 5,10,000

Purchases 3,20,000 Loan from Mr.

40,000
Naresh @ 15% p.a.

Returns Inward 7,000 Returns Outwards 8,000

Sundry Debtors 80,000 Bank 24,200

Cash 9,400 Provision for

2,500
Doubtful Debts

Manufacturing Expenses 44,000 Discount 1,800

Trade Expenses 7,200 Rent of Premises

sublet, for the year 4,000
to 30th Sep., 2019

Carriage 3,500 Capital 1,20,000

Salaries and Wages 15,800 Sundry Creditors 47,000

Postage 1,500

Stationery 800

Freight Inwards 4,300

Land and Building 2,00,000

Patents 8,000

Furniture 10,000

Insurance Premium 6,000

7,57,500 7,57,500

Page 1 of 7
 CA Shreyas Parekh
9831190759
Accountancy | Economics | Commerce | Business Studies | Taxation

Informations:-
(1) Closing Stock was valued at ₹ 60,000. You are informed that goods valued ₹ 12,000
were sold and despatched on 29th March, 2019, but no entry was passed to this effect.
(2) Insurance Premium include ₹ 1,200 paid on 1st October, 2018 to run for one year from
Oct. 1, 2018 to Sept. 30, 2019.
(3) Loan from Mr. Naresh was taken on 1st July, 2018. Interest has not been paid so far.
(4) Create provision for Doubtful Debts at 5% on Sundry Debtors after writing off ₹ 600 as
Bad-debts during the year.
(5) A bill of ₹ 3,200 for advertisement in newspaper remained unpaid at the end of the year.
(6) Purchases include Furniture costing ₹ 5,000 purchased on 1st April, 2018.
(7) Charge 10% p.a. depreciation on Furniture and write off 1/5th of patents.

2. The following Trial Balance was extraced from the books of Mr. Gupta as at 31st March,
2019:
Dr. Balances (₹) Cr. Balances (₹)

Stock on 1-4-2018 65,000 Capital 2,50,000

Purchases 7,10,000 Rent

3,900
Received

Wages 22,000 Loan from

Mr. Yadav @ 20,000
15% p.a.

Trade Expenses 5,000 Sales 9,50,000

Freight and Dock Charges 8,000 Discount 600

Travelling Expenses 3,800 Outstanding

2,000
Wages

7,200 Trade
Expenses
Lighting and Heating (Factory) 500
accrued but
not paid

Stores Consumed 2,000 Sundry

80,000
Creditors

Rent Paid 16,500

Establishment Charges 18,000

Interest on Mr. Yadav's Loan 1,500

Page 2 of 7
 CA Shreyas Parekh
9831190759
Accountancy | Economics | Commerce | Business Studies | Taxation

Sundry Debtors 1,42,000

Cash 6,000

Fixed Assets 3,00,000

Adjustments:-
(i) Goods costing ₹ 20,000 were purchased and included into stock but no entry was passed
to record the purchase.
(ii) Loan from Mr. Yadav was taken on 1st June, 2018.
(iii) Sundry Debtors include an amount of ₹ 2,000 due from a customer who has become
insolvent and nothing is recoverable from his estate.
(iv) Create a provision of 5% for Doubtful Debts and 2% for discount on Debtors.
(v) Three months lighting and heating bill due but not paid ₹ 3,000.
(vi) Rent is paid for 11 months but is received for 13 months.
(vii) Stock amounted to ₹ 90,000 on 31st March, 2019.
Prepare Trading and Profit & Loss Account for the year ended 31st March, 2019 and a
Balance Sheet as at that date.

3. From the following Trial Balance of Mr. Tarun Ghosh, prepare Trading and Profit and
Loss A/c for the year ending 31st March, 2017 and a Balance Sheet as at that date:
Dr. Balances (₹) Cr. Balances (₹)

Opening Stock 38,000 Capital 3,00,000

Purchases 12,60,000 Secured Loan 20,000

Wages: Factory 20,000

Sales 15,40,000
Office 1,600

Salary 54,000 Sundry Creditors 40,000

Business Premises 2,00,000 Returns Outwards 15,000

Furniture and Fixtures 40,000 Bills Payable 12,000

Packing Machinery 60,000 Bank 33,000

Tools 15,000

Rent 58,400

Loan to Mr. Ram Narain on 10,000

1st
November, 2016 @ 12% p.a.
Page 3 of 7
 CA Shreyas Parekh
9831190759
Accountancy | Economics | Commerce | Business Studies | Taxation

Sundry Debtors 1,31,500

Cash in Hand 7,400

Drawings 60,000

Bills Receivable 4,100

19,60,000 19,60,000

Adjustments:-
(i) Closing Stock amounted to ₹ 50,000.
(ii) Goods costing ₹ 8,000 were sent to a customer on sale or return basis for ₹ 10,000 on
30th March, 2017 and had been recorded in the books as actual sales.
(iii) Allow 8% interest on Capital and charge ₹ 3,000 as interest on drawings.
(iv) Depreciate: Business premises by 5%; Furniture and Fixtures by 20% and Packing
Machinery by 10%. Tools are to be revalued at ₹ 12,000.
(v) 2.5% for discounts is to be provided on Debtors.
(vi) ₹ 1,500 is to be provided for Bad and Doubtful Debts.

4. The following balances were extracted from the books of Mr. Din Dayal as at 31st March,
2019:
Particulars ₹ Particulars ₹

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

beginning

Rent 9,600 Sales 2,80,000

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

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

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

Travelling
1,400 Carriage Outward 500
Expenses

Insurance 1,800 Capital 1,75,000

Premium

Page 4 of 7
 CA Shreyas Parekh
9831190759
Accountancy | Economics | Commerce | Business Studies | Taxation

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

Telephone Charges 7,300 Debtors 40,000

Printing and
5,000 Creditors 27,000
Advertising

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

Interest on
Rent from Sublet 4,800 600
Investments

Land and Building 1,40,000

Furniture 10,000

Cash 2,900

Prepare Trading and Profit & Loss Account for the year and a Balance Sheet as at 31st
March, 2019, after taking into account the following:
(1) 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%.
(2) One-third of the commission received is in respect of work to be done next year.
(3) Create a provision of 5% for Doubtful Debts.
(4) 50% of Printing and Advertising is to be carried forward as a charge in the following
year.
(5) ₹ 900 is due for interest on loan.
(6) Provide for Manager's Commission at 10% on Net Profit before charging such
commission.

5. Calculate Closing Stock:

₹ ₹

Opening Stock 20,000 Purchases 70,000

Cash Sales 60,000 Credit Sales 40,000

Rate of Gross Profit on Cost

331/3%

Page 5 of 7
 CA Shreyas Parekh
9831190759
Accountancy | Economics | Commerce | Business Studies | Taxation

6. Ascertain Gross Profit from the following:

₹ ₹

2,00,000 Carriage on 30,000

Opening Stock
Sales

Closing Stock 1,80,000 Office Rent 58,000

Purchases 8,50,000 Sales 14,07,000

Carriage on 23,000
Purchases

7. From the following figures, calculate Operating Profit:

₹ ₹

Net Profit 1,00,000 Rent Received 10,000

Gain on Sale of 15,000 20,000

Interest on Loans
Machine

Donation 2,000

8. Calculate Gross Profit from the following information:

₹

Closing Stock 70,000

Wages 40,000

Salary 30,000

Sales 6,88,000

Adjusted Purchase 5,50,000

9. Calculate gross profit and cost of goods sold from the following information:
Net Sales ₹ 9,00,000
Gross Profit is 20% on cost.

Page 6 of 7
 CA Shreyas Parekh
9831190759
Accountancy | Economics | Commerce | Business Studies | Taxation

10. Calculate the amount of gross profit, operating profit and net profit on the basis of the
following balances extracted from the books of M/s Rajiv & Sons for the year ended March
31, 2017.
₹

Opening Stock 50,000

Net Sales 11,00,000

Net Purchases 6,00,000

Direct Expenses 60,000

Administration Expenses 45,000

Selling and Distribution Expenses 65,000

Loss due to Fire 20,000

Closing Stock 70,000

11. Calculate operating profit from the following:

₹

Net Profit 5,00,000

Dividend Received 6,000

Loss on sale of Furniture 12,000

Loss by Fire 50,000

Salaries 1,20,000

Interest on Loan from Bank 10,000

Rent Received 24,000

Donation 5,100

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