Final Accounts.docx

7/28/2019 Final Accounts.docx

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Final Accounts

1. prepare final accounts of N for the year ended 31st December 2008Particulars Rs.

Gross profit from trading account 80000

Commission received 5000

Discount received 3000

Bank interest 7000

Dividend received 5000

Office rent 8000

Insurance 4000

Salaries 10000

Audit fees 3000

Stationery 1000

Repairs and renewals 3000

Advertisement 5000

Carriage outwards 6000

Bad debts 1000

Interest on loan 3000

Discount allowed 2000

Loss on sale of assets 3000

Interest on overdraft 1000

Bank charges 1000

Adjustments:

a. Insurance was prepaid for Rs. 1000


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b. Outstanding salary amounted to Rs. 3000c. Interest received in advance for the year 2008 amounted to Rs. 1000 whereas accrued

interest amounted to Rs. 2000

d. Stock destroyed by fire amounted to Rs. 7000 was covered by the insurance companye. Provide interest n capital @ 5% pa and interest on drawing @ 10% pa (on an average foe 6

months). Capital and drawings were Rs. 100000 and 10000 respectively

f. Depreciation on Plant and Machinery @ 10% pa on value of plant and machinery Rs. 40000g. Advertisement expenses were made for 5 years.

Ans: net profit 40500, balance sheet total 394150.

2. the following trial balance was extracted from the books of B as on 31st

dec. 2008. Prepare final

accounts

Particulars Dr. Rs.Particulars Cr. Rs.

Plant and machinery 20000 capital account 80000

Manufacturing wages 34500 sundry creditors 44560

Salaries 15850 bank loan 15000

Furniture 10000 purchase returns 1740

Freight on purchase 1860 sales 250850

Freight on sales 2140 reserve for doubtful debts 2000

Building 24000Manufacturing expenses 9500

Insurance and tax 4250

Goodwill 25000

General expenses 8200

Factory fuel and power 1280

Sundry debtors 78200

Factory lighting 950

Opening stock 34200

Motor car 12000

Purchases 102000Sales returns 3100

Bad debts 1400

Interest and bank charges 400

Cash at bank 4200

Cash in hand 1120

Total 394150 total 394150


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Adjustments:

a. Stock in hand on 31st December 2008 was valued at Rs. 30500b. Depreciate plant and machinery by 10% furniture by 5% and motor car by Rs. 1000c. Create reserve for bad dabts at 5% on sundry debtorsd. General manager is to be allowed a commission @ 2% on net profit.Ans : gross profit 95700, net profit 56908, balance sheet total 197610.

3. Following is the trial balance of Mr. A for the year ended 31.3.2010. prepare final accounts

Name of the account Debit Rs.Credit Rs.

Purchases 980000

Wages 210000

Opening stock 250000

Printing and stationery 170000

Insurance paid one year from 1.10.2009-30.09.2010 22000

Salaries 320000

Sales 2120000

Carriage inward 100000

Carriage outward 120000

Advertising 140000

Capital 1100000

Land and building 350000

Machinery 600000


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Debtors and creditors 300000 350000

Return inward and return outward 20000 23000

Cash 2300

Loan from Mr. B taken on 1.12.2009 @ 12% per annun 180000

Patents 200000

Rent received 32000

Total 3805000 3805000

Adjustments:

1. Closing stock is valued at cost price 320000 and market price 2600002. Depreciate machinery at 10% per annum and patents are revalued on 31.3.2010 at Rs. 1820003. A part of the building is let out at Rs. 10000 per month from 1.12.20094. Printing bill of Rs. 12000, Wages of Rs. 18000 and salaries of Rs. 38000 are outstanding

Ans: GP 825000, NL 31200, Balance sheet total 1674000

4. from the following particulars of Mrs. R & Co. you are required to prepare trading, profit and loss

account and balance sheet for the year ended 31.12.2009

Sales 65000

Sales return 500

Stock at the beginning 8000

Purchases 29000

Purchase return 300

Direct wages 5000

Direct expenses 5000

Carriage inwards 4000

Capital at the beginning 30000


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Drawings 5000


Sundry creditors 12000

Discount allowed 100


Salaries 3000

Interest paid 400

Furniture 3000

Building 20000

Plant and machinery 20000

Cash in hand 1000

Bills payable 6200

Reserve for bad and doubtful debts 500

Bad debts 300

Closing stock at the end 8000

Additional Information :

1. Outstanding salaries Rs. 5002. Interest on capital at 10%pa3. Depreciation on plant and machinery at 10% pa and buildings at 5%pa4. Prepaid interest 1005. Provision for bad and doubtful debts at 10% on debtors

Ans: GP 21800, NP 11600 Balance sheet total 58300

5. From the following trial balance of shri W prepare final accounts for the year ended 31.03.2009Opening stock 30000

Purchases 75000

Investment 11000

Return inward 2700


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Trade expenses 675

Wages 3500

Salaries 5600

Office expenses 660

Advertisement 420

Bad debts 400

Rent rates and insurance 2800

Discount 300

Interest and commission 215

Premises 6000


Fixtures and fitting 5000


Cash in hand 1030

Capital 35000

Sales 125000

Return outwards 1300

Creditors 30000

Bank overdraft 10000

Total 201300 201300

Adjustments:

1. Stock on 31st march 2009 was Rs. 450002. There were outstanding liabilities in respect of rent 250 and wages 2003. Insurance paid in advance amounted to Rs. 150 and salaries were unpaid to the extent 3504. Write off 400 as further bad debts and provide for doubtful debts at 5% on debtors5. Depreciate premises by 2.5% machinery by 7.5% and fixtures and fitting at 10%6. Accrued interest on investment 275

Ans: GP 59225, NP 44575 balance sheet total 120375

6. From the following trial balance of Mr. D prepare final accounts for the year ended 31.10.2008Machinery 90000

Building 40000

Opening stock 20200

Purchases 110800

Wages and salaries 17000


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General expenses 9100

Rent 1700

Income tax 650

Legal charges 300

Prepaid rent 200

Loan to M 17000

Drawings 4300

Cash on hand 1350

Cash at bank 9750

Capital 115200

Credtiors 45000

Bills payable 4000

Returns outward 1500

Interest and commission 900

Outstanding expenses 1150

Sales 190500

Reserve for doubtful debts 2500

Total 360750 3670750

Adjustments:

1. Stock on closing date cost 20900 market value 240002. Depreciate machinery at 10% and building at 5%3. Reserve for bad debts to be maintained at 10004. Provide for reserve for discount on sundry creditors 2%5. Calculate interest on capital 5%, no interest is charged on drawings

Ans: GP 64900, NP 36590 balance sheet total 202200


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7. prepare balance sheet for the year ended 31.3.2009

Capital 36000

Drawings 3000

Purchases 20000

Returns inward 500

Return outward 800

Furniture 6000

Buildings 8000

Office expenses 1200

Opening stock 7000

Trade expenses 400

Rent and taxes 600

Wages 8000

Sales cash 10000

Sales credit 20000

Carriage inward 200


Bills receivable 1200

Bills payable 900

Salaries 750

Reseve for doubtful debts 1200

Bad debts 300


Insurance 300


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Cash in hand 500

Cash at bank 2500

Depreciation on furniture 300

Outstanding expenses 150


Total 73050 73050

Adjustments :

Closing stock 14000 Depreciate building 5% Rent outstanding 300 Insurance prepaid 100 Write off 2000 as bad debts and keep the reserve for doubtful debts at 5% on sundry debtor Commission accrued but not received upto 31.3.2009 400 Interest to be allowed on capital 5%

Ans: GP 8700 NP 1650 balance sheet total 41800

8. prepare final accounts for the year ended 31.3.2009


Rent 1200

Cash at bank 3000

Cash in hand 1400

Opening stock 16000

Bad debts 1000

Discounts 400 1000

Purchase and Sales 110000 168000

Carriage on sale 3600


Sales return 8000


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Purchase return 4000

Carriage on purchase 1000

Furniture and fixture 12000

Insurance and office expenses 3000

Salaries 6000


Drawings 12000

Wages 12000

Provision for doubtful debts 2000

Capita l 50000


Commission 8400

Total 271000 271000

Adjustments :

Depreciate plant and machinery at 10% and furniture and fixture at 5% Insurance prepaid 200 Outstanding salary 1000 outstanding rent 200 Maintain RDD at 6% at debtors Closing stock 20000

Ans: GP 45000 NP 18400 balance sheet total 103600

9. prepare final accounts for the year ended 31.3.2009

Capital 88000

Drawings 1000


Furniture 6000


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Loose tools 10000

Motor car(cost 15000) 5000

Opening stock 10000

Purchases 151000

Return inward 4000

Return outward 2000

Sales 204000


Wages 5000


Salaries 20800

General expenses and insurance 6000

Rent and taxes 7200

Postage and telegram 2000

Packing and selling expenses 4000


Advertisement 1000


RDD 1000

Cash in hand 7000

Bank overdraft 10000

Adjustments

Depreicate motor ca at 15% on original cost and loose tools are valued at Rs.8000 Closing stock 12400 RDD is to be maintained at 5% on debtors and reserve for discount on creditors at 2% Unexpired insurance 200 Provide for interest on capital at 6%


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Ans: GP 48400, NL 4890 balance sheet total 109150

10. . prepare final accounts for the year ended 31.3.2009

Opening stock 120000

Salaries and wages 12000

Railway freight 5000

Purchases 120000


Rent 7500

Sales 253000

Reserve for bad debts 1000


Returns outward 1500

Bad debts 300


Travellinf expenses 6000

Commission 1000

Repairs to plant 1200

Cash at bank 2400

Buildings 50000

Returns inwards 1000


Drawings 6500

Office expenses 5000Capital 50000

Bank loan 54000

Total 393100 393100

Adjustments:

Closing stock 35000 Unexpired insurance 500 is included in office expenses Office expenses due but not paid 300 Make provision for unpaid salaries 1200 Commission received but not earned 400 Provide interest on capital 5% Depreciate plant and machinery 5% and building 2.5% Provide reserve at 5% on bad debts

Ans: GP43500 NP 5600 Balance sheet total 140100

Documents

Final Accounts.docx