Final Accounts

Time: 1.30 Hours Marks: 30

1. Prepare Final Accounts of Riya Traders for the year ending 31st March,
2019 with the help of following Trial Balance and Adjustments 15 Marks
Debit Balance Amount Credit Balance Amount
Purchase 52,000 Capital 60,000
Returns Inward 5,000 Sales 195,000
Plant and Machinery 40,000 Returns Outward 2,000
Interest 1,000 Commission Payable 2,000
Salaries 3,000 Reserve for Doubtful
Insurance 2,000 Debts 1,000
Opening Stock 15,000 Discount 5,000
Debtors 62,000 Creditors 35,000
Advertisement (2 years) 4,000
Motor Van 30,000
Investments 20,000
Rent, Rates and Taxes 6,000
Cash in Hand 1,000
Cash at Bank 35,000
Wages 7,000
Bills Receivable 10,000
Drawings 5,000
Bad Debts 2,000

300,000 300,000
Adjustments:
1. Closing Stock valued at Rs. 20,000
2. Depreciate Plant & Machinery @ 5% and Motor van @ 10%
3. Outstanding Expenses: Wages Rs. 3,000 and Salaries Rs. 2,000
4. Provide bad debts Rs. 2,000 and reserve for doubtful debts @ 5% on
Sundry Debtors.
5. Interest on Investment is due but not received Rs. 2,000

2. Prepare Final Accounts of Shubham for the year ending 31st March,
2019 with the help of following Trial Balance and Adjustments 15 Marks
Debit Balance Amount Credit Balance Amount
Purchase 50,000 Capital 100,000
Opening Stock 25,000 Sales 200,000
Furniture 45,000 Sundry Creditors 50,000
Discount 2,500 Bank Overdraft 40,000
Salaries 10,000 Reserve for Doubtful
Insurance 3,000 Debts 500
Freehold Premises 60,000 Interest 3,000
Sundry Debtors 62,000 Bills Payable 6,500
Royalty 4,000
Motor Van 40,000
Investments 30,000
Rent 6,000
Cash Balance 4,000
Prepaid Wages 7,000
Bills Receivable 25,000
Bad Debts 1,500
Buildings 25,000

400,000 400,000
Adjustments:
1. Closing Stock valued at Cost Price Rs. 22,000 and Market price Rs. 25,000
2. Depreciate Building @ 10% and Furniture to be valued at Rs. 42,000
3. Outstanding Rent Rs. 4,000
4. Provide bad debts Rs. 2,000 and reserve for doubtful debts @ 10% on
Sundry Debtors.
5. Insurance includes 1,000 paid for Life Insurance premium
Q.1.
In the books of Mahesh
Dr. Trading and Profit and Loss Account for the year ended 31st March 2019 Cr.
Particulars Amount Amount Particulars Amount Amount
To Opening Stock By Sales
To Purchases (-) Return Inward -
(-) Return Outward -
To Carriage By Goods taken for personal
To Wages use

To Gross Profit c/d - By Closing Stock

- -

To Miscellaneous Expense By Gross Profit b/d -

(+) Outstanding - By Commission Received
To Insurance By Rent Received
(-) Prepaid - (-) Advance -
To Repairs
To Printing & Stationery
To Advertisement
To Discount Allowed
To Interest on Bank Loan

To Net Profit c/d -

- -

Balance Sheet as on 31st March 2019

Liabilities Amount Amount Assets Amount Amount
Capital Machinery
Add: Net Profit - Furniture
-
(-) Drawings -
( 20,000 + 2,000 ) Cash at Bank
Cash in Hand
Creditors Debtors
Bills Payable Bills Receivable
10% Bank Loan Prepaid Insurance
(+) Outstanding Interest - Closing Stock
Outstanding Misc. Expenses
Rent received in Advance

- -
Q.2.
In the books of Shradha
Dr. Trading and Profit and Loss Account for the year ended 31st March 2019 Cr.
Particulars Amount Amount Particulars Amount Amount
To Opening Stock By Sales
To Purchases
(-) Return Outward -
To Carriage Inward By Goods destroyed by Fire
To Wages
(+) Outstanding -
To Power

To Gross Profit c/d - By Closing Stock

- -

To Rent By Gross Profit b/d -

To Salary
To Insurance
To New Bad Debts
(+) New R.D.D. -
To Depreciation on
Machinery
Furniture -
To Loss by Fire

To Net Profit c/d -

- -

Balance Sheet as on 31st March 2019

Liabilities Amount Amount Assets Amount Amount
Capital Machinery
Add: Net Profit - Less: Depreciation 10% - -
- Furniture
(-) Drawings - Less: Depreciation 5% - -
Insurance Claim
Debtors
Bank Loan (-) New Bad Debts
Creditors -
(-) New R.D.D. 5% - -
Outstanding Wages Cash in Hand
Closing Stock

- -