1. From the following Trial Balance of Kiran & Sons Ltd.

As on June 30th 2017,

prepare Trading and Profit and Loss Account and the Balance Sheet.
TRIAL BALANCE

NAME OF THE ACCOUNT DEBIT in ₹ CREDIT in ₹

Capital 100,000
Drawings 5,000
Net Purchase 200,000
Net Sales 500,000
Opening Inventory 50,000
Wages 20,000
Carriage Inwards 3,000
Salaries 25,000
Freight 2,000
Trade Expenses 5,000
Rent 20,000
Packing Charges 2,000
Land & Building 200,000
Plant & Machinery 250,000
Furniture 50,000
Bad Debts 5,000
Debtors 75,000
Creditors 80,000
Cash in Hand 5,000
Bills Receivable 3,000
Loan 200,000
900,000 900,000
Additional information:
i. Inventory (ending) : ₹ 30,000 ii) Salaries outstanding ₹5,000 iii) Wages Prepaid ₹
2,000 iv) Rent received in advance ₹ 2,500 v) Interest income outstanding ₹ 1000.
ii. Depreciate Furniture @ 5% and Plant & Machinery @ 10%.
 2. From the following Trial Balance, prepare a Trading and Profit & Loss Account for the
year ended 31st Dec 2017, and a Balance Sheet as on that date.
Name of the Account Debit (AED) Credit(AED)
Capital 500,000
Sales 1,000,000
Sales Return 25,000
Purchases 500,000
Purchases Return 15,000
Opening Inventory 60,000
Land & Building 400,000
Plant & Machinery 300,000
Furniture 100,000
Wages 50,000
Carriage Inwards 10,000
Provision for Bad debts 7,000
Carriage Outwards 5,000
Cartage 5,000
Salaries 40,000
Loan 260,000
Debtors 150,000
Creditors 70,000
Rent 8,000
Bills Receivables 40,000
Acceptances 10,000
General Expenses 20,000
Rent & Rates 10,000
Investments 50,000
Cash in hand 50,000
Bank Over draft 10,000
Discount 4,500
Bad debts 5,000
Interest on investment 5,000
Interest on Bank over draft 500
Goodwill 60,000
1,885,000 1,885,000
Additional Information:
1) The value of inventory on Dec 31st, was AED 100,000
3. From the following Trial Balance of Pishache Ltd., prepare a Trading and Profit & Loss
Account for the year ended 31st December 2017, and a Balance Sheet as on that date.
TRIAL BALANCE
NAME OF THE ACCOUNT DEBIT - ₹ CREDIT - ₹
Capital 500,000
Drawings 20,000
Purchases 400,000
Purchases Returns 10,000
Sales 700,000
Sales returns 20,000
Opening Inventory 100,000
Land & Building 300,000
Plant & Machinery 150,000
Goodwill 50,000
Trade Marks 30,000
Wages 40,000
Trade Expenses 20,000
Furniture 50,000
Provision for Bad Debts 10,000
Debtors 107,000
Salaries 60,000
Bad debts 3,000
Creditors 100,000
Acceptances 80,000
Investments 10,000
Rent 15,000
Distribution Expenses 5,000
Cash in Hand 10,000
Depreciation on Furniture 10,000
1,400,000 1,400,000
Additional Information:
1. The inventory on December 31st, 2017 was valued at ₹ 150,000. (2) Wages
outstanding ₹ 3,500 (3) Salaries Prepaid ₹ 5,000 (4) Depreciation on land @7.5%,
Plant @9. (5) Rent paid in advance ₹1,700.
 4. From the following balances extracted from the book of AR Ltd., prepare a Trading and
Profit & Loss Account for the year ended December 31, 2017 and a balance Sheet as on
that date.
Trial Balance
Name of the Account Debit Balance Credit Balance
(AED)_ (AED)
Capital 200,000
Sales 500,000
Sales Returns 10,000
Purchases 200,000
Purchases Return 10,000
Opening stock 40,000
Land and Building 200,000
Plant & Machinery 100,000
Wages 25,000
Furniture 50,000
Provision for Bad Debts 5,000
Salaries 25,000
Debtors 82,000
Creditors 100,000
Bad debts 3,000
Bills payable 30,000
Investments 50,000
General Expenses 20,000
Cash in hand 5,000
Cash at bank 15,000
Depreciation on land and building 20,000
Total 8,45,000 8,45,000
Additional Information:
1. The inventory on 31.12. 2017 has been valued at AED. 80,000. (2) Depreciation on
furniture @ 7%, Plant @ 13% (3) Wages prepaid ₹3,400.
5. From the following Trial Balance extracted from the books of Mirand Saran, prepare a
Trading and Profit & Loss Account for the year ended 30th September, 2018 and a Balance
Sheet as on that date.
Debit Balances ($) Debit Balances ($)
Drawings 6,480 Sundry Debtors 37,800
st
Land and Building 25,000 Stock (1 October, 2017) 26,420
Plant and Machinery 14,270 Fire Insurance 490
Furniture and Fixtures 1,250 Cash at Bank 13,000
Carriage Inwards 4,370 Cash in Hand 850
Wages 21,470
Salaries 4,670 Credit Balances ($)
Sales Return 1,760 Capital Account 120,000
Bank Charges 140 Bad Debts Provision 2,470
Coal, Gas and Water 720 Sales 91,230
Rates and Taxes 840 Discount Account 120
Purchases 42,160 Purchases Returns 8,460
Bills Receivables 1,270 Sundry Creditors 12,170
Trade Expenses 1,990 Apprentice Premium 500
Investments 30,000
The value of the stock as on 30th September, 2018 was $29,390. The unexpired amounts:
Apprentice premium $ 200, Rates and Taxes $ 240, and Salaries $ 170. Outstanding
amounts are; wages $ 630, and interest on investment $ 1,300.
6. From the following Ledger Balances extracted at the close of a trading year ending 31st
December 2017, prepare a Trading Account, Profit & Loss Account and Balance Sheet as
at that date, after giving effect to the undermentioned adjustments:
Name of the account Amt. in $ Name of the account Amt. in $
(‘000) (‘000)
Capital Account 50,000 Printing & Stationary Account 250
Stock Account on 1/1/2016 8,000 Rates and Taxes Account 350
Purchases Account 20,000 Travelling Expenses Account 150
Sales Account 80,000 Trade Expenses 200
Return inwards 1,500 Business Premises A/c 55,000
Returns Outwards 400 Furniture and Fixtures A/c 2,500
Carriage inwards A/c 1,200 Bills receivables A/c 3,500
Carriage outwards 2,500 Bills Payable A/c 2,500
Wages A/c 3,300 Sundry debtors A/c 20,000
Salaries A/c 5,500 Sundry Creditors A/c 15,800
Rent A/c 1,100 Packing Machinery A/c 4,500
Freight and Dock Charges 2,400 Investment A/c 5,000
Fire insurance premium 900 Goodwill A/c 3,000
Bad debts A/c 2,100 Cash in hand 325
Discount A/c (Dr.) 500 Cash at bank 3,500
Apprentice Premium (Cr.) 1,500 Drawings 3,000

Adjustments to be made for the current period are;

i) Stock in hand at 31st December 2017, $7,000.