o.1.

From the following Trial Balance of Shri Ganesh prepare Trading and
Profit & Loss Account for the year ending 31st December, 2012 and Balance
Sheet as on that áate after taking into consideration the adjustments given at
the end of the Trial Balance: [2008
Trial Balance as on 31-12-12
Particulars Dr. ( C.(
Saes 00
Purchase (adjusted)
6,99.200
wages 900
Capital Ac
Natonai Insurance
48,500
300
Camage In 400
Camage Ou 500
Lighting 600
Rates and Insurance (including premium of 300 p.a. paid upto 30-6-2012) 400
Stock on 31-12-2012
1, 250
Cash in hand and at Bank
1,750
Discount eamed
600
Building 30,000
Discount allowed 100
Debtors and Creditors
6,000 20,000
Fumiture 8,000
Dividends received 300

8,09,400 8,09400
Adjustments:
() National Insurance balance also includes employees contribution 150.
Wages are shown 'net' after deducting national insurance contribution
borne by the
employees.
(7) Owing to the nature of employment, some employees are housed in the
of the business. The rental value of such portion is assessed at
building
500 p.a.
(in) Sales as shown in the trial balance include the sale of old furniture
(effected haif way through the year) realising 200. The book value of the
furniture at the commencement of the period was 300. The depreciation

has been written off at 20%% P.a.

(ie) The manager is to get a commission of 1/5h on the net profits after
charging his commission but betore considering income fiun dividend.
() Depreciate building by 5%.
P-1
 ACCOUNTING PROCESS P-13

Particulars
Sundry creditor's 19,000 Bad debts
Particulars 100
15.000 Loan from John 2.500
Building
ncome-tar
1.025 Sundry Debtors 9,500
oseTools 1.000 Investments 6.500
Cash al Ban 16.200 Bad debts reseve
Sundry Expenses 1,990 Rent and Rates
Bank Interest (Credit) 3.000
E7 uniture
Purchases 1.57.000 Stock (1.4 2012) 350
Wages 10.000 Capta
a T a e mwa'os 1,120 Discount alowed
5aes 1,85,000 Dividend Income 35

van 12.500 Drawings 2.000

Motor
Cash in hand 335 Bills payable 10.000
Adustments:

(0) Write ott further 500 as bad debts out of Sundry Debtors and create a
bad 20% on debtors.
reserve tor debts at
() Dividend accrued on investments is ?135. Rates paid in advance 100
and wages owing ?450.
(i) On 31-3-2013, stock was valued at 15,000 and loose tools were valued at 7800.
( Write oft 5% tor depreciation on building and 40% on motor van.
() In case ot profits, manager is entitled to a commission of 5% on net protits.
(7) Provide for interest at 12% per annum due on loan taken from John on
1-6-2012.
Sol.
Trading and Profit & Loss Account
Dr. for the year ending 31* March, 2013
Particulars Particulars
To Opening Stock 27,350 By Sales 1,85,000
To Purchases 1,57,000 By Closing Stock 15.000

Wages 10.000
Add Outstanding Wages 450 10,450
To Carmage Inwards 1,120
To Gross Profit cd 4,080
2,00,000 2,00,000
To Sundry expense 1,990 By Gross Profit b/d 4,080
To Bad Debts 100 By Bank Interest 5
Add. Further Bad debts an0
S00 By Dividend Income 535
Prov for Doubtul t (New). 1840 Add: Dividend accnued
on investment 135 70
2,240
Less. Bad Debts Reserve 1.500 b40By Net Loss transierred to Capital A/cC 5,385
0 Rent and Rates 50

LeSS ates paid in advance 100 50

1o Dscount alowed
o interest on Loan R2500 o1
1o Depreciation on.
31
Bulding
Motor Van 5,000
Loose tools 200 5.9
10.210 10.210
 nyam al
P-16 Sheet
or

ce

Assets
280
Cash n rand

Liatriliti 2 000
ash ar bank

Prepac insurance

Creditors 6 00N 27.300

Ada Omited Purcnases

00 17.640Cosingstock 6.000
Lonnpany
(alaim due)
nsurance

Less Prov tor Discount

00
30.000
1350
s
Debiors
18.4
Loan rom Gajanand g D Further
Bad Debts

on Lodn
Less 18.000
accrued
nterest
100.000 900

Capita 30 09 Less
Prov for Doubtul Debts 17.100
AGd Net Proft
1.30.096 Discount
3A2 758
for
Lese Prov
Less Drawings
1,16,098 5.000
12.000 2.000 14,000 Furniture
Less: Deprecation
4.750

Land & Building 88.200

L e s s : Depreciaton 800
Plant & Machinery
20.000
Less Depreciagon
4.000 16,000
165088
As
1.65.00 the
Cnvention of
Conservatism

creditors
s against
discount on
for
ignored
pratit should be
Mak1ng p r o v I s o n
March, 2013:
Note:

Convenfiorn epete Lal as at 31st

e t ms Balance of Mr.
is the Trial Dr. () Cr. (
The following
Q.9. 86.6%0
Particularss
46.800
Lal's Capital
.2 700 3.89.600
Opening stOCK 5,800
Purchases and Sales 8.600
Returns 18.600
Freight and Carriage 5.700
Rent and 1axes 9.300
Salanes and wages 24,000 14.800
Sundry Deolois ana Creditors 20.000
Bank Loan @ D% pa.
00
Bank nlerest on Loan
14,600
Printing and Adverising 250
Miscellaneous Income
Cash at1Bank 8.000
1.800 ,10
Discount
Furmiture and Fittings 5,000
General Expenses 450
Insurance 1,300
Postage and Telegrams 2,330
ash in nand 380
raveling Expenses 870
Drawings
40000
5,21,350 3.41.350
The following
adjustments should be made: eluded
() Included amongst the Debtors is 3,000 due from Anand d
among the creditors 1,000 due to
him.
ar
 ACCOUNTING PROCESS P-17
(in) Provision for Bad and Doubtful Debts to be created at 5% and Reserve
for
Discount a 2% on
Sundry Debtors.
(1) Depreciate Furmiture and Fittings by 10%.
(it) Personal 'urchases amounting to 7600 had been included in the
P'urchases Day Book.
() Interest on Bank Loan shall be
provided for the whole is to be carried
(i) One quarter of the amount of Printing and Advertisingyear.
forward to
next year
(vin) Credit purchase invoice amounting to R400 had been omitted from the
books.
(vuii) Stock on 31s March, 2013 was R78,60O.
Prepare Trading and Profit & Loss Account for the year ended 31s March,
2013 and Balance Sheet as on that date.
2014 Nov
ol. Irading and Profit & Loss Acount of Mr. Lal
for the year ended 31s March, 2013 r.
Particularss
To Opening Stock
Particulars
46.800 By Sales 3,89.600
T0 PurcidE
LESS.
1, /00
NEUTs O U w a r d 5 8 0 0
Less: Returns Inward 8,600 3,81,000
By Closing Stock 78.600
3, 15,500
Less Drawings
3,15,300
Add Omitted Invoice
400 3,15,700
To Freght and Carmage 18,600
o Gross Profit transterred to
Proft & Loss Account
78,500
To Rent and taxes
4,59,600 4,59,603
o Salanes and Wages
lo Interest on Bank Loan
5,700
9,300
By Gross Proht
By Miscellaneous income 18,50
900
ByDiscount ,190
Add Outstanding 1,200
o
00
Printing& Advertising 14,60D
Less' C to next year
3,650 0,950
Discount 800
o General Expenses
To Insurance 11,45
To 1.300
To
Postage and Teiegral
Traveiling Expenises
2,350

D epreciation on:

To
umifure& Frtings 00
Provision for Bad & Doubtful
Debts 5t% of 7|24,000 1,000] 1,150
0
Provision for
Discount
fo
Ch 0f 124,0O00- 1,000-1,150)
Net Profit transferred to
Lapital Account
35,953
82.940
82.940
 SHVA D.U., B.COM. (HONS.)
p-18
Balance Sheet of Mr. Lal
s 0t 3P" Narch, 2013

ASSeTS
LS 86,690 Cash at Bank
Cash in nand
8.000
40,000
46.690 Sundry Dentors 24.000
Less Common debt
Less Personal Purcha5e 1.000
46,090 23,000
82.043 Less Provson k Doubu Deots
dd Net Prof 35953 1.150
Sundry Creditors 14,800 21.850
Less Common Debt Less ProviSion for Discount437 21413
13,80 CiOsing sloCX
19.600
Add: Omtted Invoice 400 14,200 Pinting and Statonary
Bank LLoan 20.000 Fumiture& Fittings 5.000
3,650
Oulstanding Interest on Bank Loan 300 Less Depreciation
1,16,543| 16,543
. 10. Mr. Ajay, a shopkeeper, had prepared the following trial balance from
his ledger as on 31*
March, 2015:
Particulars Dr. () Cr. (
Purchases arnd Saies 6.20.000
4.200
Lash a 5ank
Stock of Go0ds on 14-2014
2400
1.00.000
Capita 5.77 20
Drawings 8,000
Saianes
POstage and lelephones
64,000
23.000
Salesmen s Commission 70,000
rheinn 18,000
umt9 34,000
44,000
Printing and Stationery b.000
Motor C ar
o,000
5ad Debts

ash Discount
Genera Expernses
anage irwards
Carriage OuTwards
44.000
Wages
Debtors and Creditors
40.000
2.00 000 80,.000
14,87.200 14.87,200
You are required to prepare Trading and Profit & Loss Account for the ded
31 March 2015 and Balance Sheet as on that date. You are also
year cn
information: given the to
0 Stock on s1-403-2015 was 145,000.
() Mr. Ajay had
withdrawn goods worth <5,00k during the year.
(n) P'urchases include
(t0) Debtors are bad
purchase
to the
extent
ot
turniture wortn
ciU,00
()
Creditors include of5000
hich it a balance ot
t4,0K the credit of Mr. Vijay in rest
to
has been dectded and settled with the
incie party to pay only t1
gooNds wortth 15,000 sent to
unsold as on 31-S-2015. The cost ot the goods Saksham
was 710,000
on a n d refnliriing
 ( H O N S . J

B.COW.

D.UL,
SHIVA

P-12 S 56
30800
B00
To Bad DebS
Debts 200
Adt: Further Bad
1,000
for
Addt New PrOvision 950
950
Doubtul Debts 361
Discount on Debtors
To Provision for
To Deprecition:
Plant and Machinery:
12.000
New
B00
Fumiture 17.600
Patents 4,000
To Net Profit transterred
6,889
to Capital Account 57600
57600 of Sachin
Balance Sheet

as on 31 March, 2011
Assets
Liabilities Cash in Hand 13.250
Capital 1,60,000
Cash at Bank
Add: Net Profit 6889
Closing Stock 30.000
66,889
24,000 1,42,889 Add: on Approval 31,00
Less: Drawings
Loan from Kapil 20.000 Sundry Deblors
Add. Accrued Interest 20.300 Less: On Approval 1.200
unory Creditors 24,000 19.200
reoors ior MachineryY 3,000 Les5. Bad Debts 200
Bank overordin 15,000 19,000
Less Provision for
Doubttul Debts
18,050
Less: Provision for
17b0
Discount on Debtors 361
Furniture and Fixture 8,000
Less. Deprecialion 720
800
Plant and Machinery 60,000
Add: New Machinery
4,000
(3.000 1,000) 64,000
Less.2,000
Depreciabon 12.800 51.20
800)
Patents 40,000
Less. Wrtten off
and 4,000
205.189 20518
Q.7. From the
tollowing balances taken from the ledger.of Ms.
March, 2013,
prepare the
31 March, 2013 and the irading and Profit & Loss Account for theJenny
Balance sheet yea
n d e d

on that as
date:
 B.COM. (HONS.)
SHIVA D.U.,
P-1 4
Maneet
Balance
Sheet of Mr.
March013

as at 31"
Assets
Liabulities 19.000 Cash in hand

Sundry Creitors 10.000 Cash ar Bank

9.500
16
Bills Payabe 2,500 Sundry oeolors
Loan from onn 450 Less Further Bad debts U
Outstanding Wages 250 9.200
interest on Loan Less: Resenve for
47,390
Capital Doubtful Debts 1,840 1
2,000
Less: Drawings 1025
Closing sloCK
15 000
Less Income-lax
nvestments b.30
4,
Less: Net LOss 5.385 38,980 Funiture 15.000
Bulding 750
Less: Depreciabon 14,250
Molor
rvan 12,500
Less: Depreciation 5,000
AccruedDividend

Prepaid Rales
Loose Tools
71,180
Q.8. From the following trial balance and information, prepare Trading and
Account Mr. Rishabh for the year ended 31 March, 2013 and
Profit & Loss of
a Balance Sheet as on that date 2014
Particulars Dr. () Cr.
1,00.00
Capia 12,000

DrandBuilding
Plant and Machinery
90,000
20,000
Euniure 5,000
Sales -| 1,40.000
Returms outward 600
Debtors o,400

0an from Gajanand on 1-7-2012 @ 5% pa. 30.00

Purchases 80,000
Returns inward 5,000
Carriage 10,000
Sundry expenses 600
Printing and Staioney
500
nsurance expenses 1,000
tor bad and
doubtful debts
Provision oeblors
Provision for discount on

addebts 400
1-4-2012
Opening Stock on 21,300
Salanes and wages
18,500
Creditors 12.000
Trade expenses 300
Cash Bank
4,b00
Cash hand
1,280
Z,89,380 289.30
 ACCOUNTING PROCESS P-15
Additional information:
() Value of Closing Stock on 31-3-2013 was 27.300
(7) Fire occurred on 25" March, 2013 and ? 10,000 worth of
were destroyera. Ihe insurance companv
general goods
accepted claim tor K6,Ud oniy
and paid
the claim money on 10"
April, 2013.
(r) Bad debts amounting to R400 are to be written off. Provisions tor bad and
doubttul debts is to be made at 5% and for discount at 2% on debtors.
Make a
provision o 2% on Creditors for discount.
(17) Received i 000 worth of goods on 27th March, 2013 but the Invoice
purchases was not recorded in Purchase Book. o
() Rishabh took away good worth R2,000 for personal use but no record was
made thereot.
(1) Charge depreciation at 2% on land & building, 20% on plant &
machinery and 5% on furniture.
(71) Insuranc: prepaid amounts to R200.
Sol. Irading and Profit & Loss Account of Mr. Shyam Lal
Dr. for the year cnded 31* March, 2013 Cr.
Particulars
To Opening Stock
Particulars
21,300 By Sales 140.000
To Purchases 80,000 Less Retums Inward 5.000 ,35,000
Less Returns Outward 5.000 By Loss due to fire 10,000
4.000 By Closing Stock 27,300
Less: Drawings 2000
72.000
dd Omitted 6,000 78,000
riage 10,000
o Gross Profit cid 63,000
1,/2,300 1,72,300
O
Ilerest on Loan Outstanding By Gross Profit bld 63,000
30,000 10012 1.350 By Provision for Discount
To Sundry Expenses b00 on Debtors (Old) 380
lo Pinting& Statonery Less: Provision for Discount
Surance 1,000 on Deblors (New) 342
eSS Prepaid 200 800 By Provision for Discount
To Salanes and Wages on Creditors 360
lo Trade Expenses 18.500
800
10 Loss due to fire 10,000
To Surance claim 4,000
To Depreciation on: 6,000
Land& Building 1,800
Plant& Machinery ,.000
Fumiture 250 6,U0
v'sion for Bad & Doubtul
Deots
New100[18,400-400)
Add: Bad Debts S 400
Add. Further Bad Debts
400
1,700
Less Provision for Bad &
uDtul
et
Debts 1,000 700
Profit trans. to
Captal AC 30,098
63.398 63,398
 P-11
ACCOUNTING PROCESS

hand
13.250
as
28.350
Land 20,000
from Kapil (e 5% on 01-10-2011)
stane and Fax 3,000

ent,Rates and Taxes 200

ad Debts
24,000
Sindry CredMDIS
,200
DiSCu
g e inwards 00
nterest on Loan
3
1,500
rsurance
Traveling Expenses
Sundry ExDenses 600
asnal Bank 20,500
ank Overdrat 15,000
4.84.200 4.34,200
Adjustments:
() Stock on 31-03-2011 is valued 730,000.
() A new machine was installed on 01-04-2010 for R3,000. No entry in this
books. Wages R1,000 paid for installation of the
respect
was
passed inthe
machine were debited to wages
account.
( ) Of the sundry debtors 200 are bad and to be written off. You are
required to maintain a provision for doubtful debts ® 5% on debtors and
a provision for discount on debtors ' 2.
r)Coods costing 2,000 were given away as free samples for publicity.
(0) Depreciate plant and machinery at 20% and furniture and fixtures at
10%.
(i7) Goods costing l,000 were ent to a customer for R1,200 on 27th March,
2011 sale
ol.
on or
return basis. This was recorded actual sale as

Trading and Profit & Loss Account

Dr, for the year ended 31 March, 2011 Cr.

To Opening Stock
Particulars Particulars
To Purchases
40.000 By Sales 2.64.000
,70,000 Less. Goods sent on
Less: Free Samples 2,000 1.68.000 approval basis 1.200 62.800
lo Carriage Inwards 400 By Closing Stock 30.000
Wages SO.000 AOU. StOCK With
Less Installatior. CUsiomer at cost 1,000
To Gross Profit
Charges 1000 29,000 31 000
did 56,400
2,93,800 2,93.800
o
alanies 14,800 By Gross Proft bld 56,400
Postage and Fax 3,000 By Discount Recerved 1,200
To
Rent Rates and laxes 7,200
nsurance
To Travelling Expenses
,b00
1.000
To
Sundry 600
Inlerest Expe
enses
on
Adt Accrued Interest
bU
oAdvertsement (Free Sampie) 2.000
p-10 SHIVA D.U., B.CM. (HONS.
81,610
23.000
To Traveling Expenses 870
To Postage &Telephone 2.000
To Insurance 6400
To General Expenses 12.750
To Dep on Furniture 500
To Prov for Doubtful Debts"

100 23.000 1,150

To Prov for Discount on Deblors

437
100R23.000-*1,150)
To Net Profit 34,503 81.610
81610
Balance Sheet of Ms. AJIT Traders
as on 31s March, 2013
Liabilities Assets
24,000
Capital of Mr. Ajit 65,690 Debtors
Less: P Purchases 600 Less Common DriCr. 1,000
19,000 19.600 Less: Prov for Doubtful Debts',1,150
Less:Drawings
46,090 Prov. tor Discount 437 21,413
Less:
Add Net Profit 345U3 80 593 Furniture 5.000
14,800 Less: Depreciation 500 4.500
Creditors Cash in hand
Add Purchase Omited 400

15,200 Bank balance 8.000

Less: Common Dr/Cr
Bank Loan
1,000 14,200 Stabtonery
20.000
unused
Closing Stock
3,600
78.600
Interest on bank loan unpaid 1.700
1,16,493

Working notes
1.16.493
' Personal r'urchases are anu will emain incuded in Creditors.

Provisuon for doubttul debis (5*) is created on

net Debtors, ie. (R24,00 71,000)= Sol.
,Provison for discount (2) s calkulated on net
realisable amount of R23,00 Dr.
debtors, ie.,
23,000)- 1,.150-
R21,850.
Q.6. From the
following Trial Balance of Sachin
31st To Op
are
required
prepare to a
as on
March, 2011 you
31s March, 2011 and
Trading a
and Profit & Loss Account for the year ende
To Pur
Balance sheet
necessary adjustments as mentioned
as on
that date, after
hereunder making
[201 To Les
Particulars Carr
Sachin's Capital Account
Sachin's Drawings
Dr. Cr. Wag
1.60.00 Less
Fumiture and Fixtures
Plant and Machinery 24,000 Gros
Patents (Ten from 8,000
years
Stock on 01-04-2010 01-04-2010) 60,000 Sa
ur
urchases 40,000 Posta
Salanes 40,000 To Rent,
Wages
Sundry Debtors
70,000 Insure
Saies
14,800
Trave
30.000 To Sundr-
0.400 nteree
264 Ar
 ACCOUNTING PROCESS P-9

Discount 800 4,114

Bank Loan e 4 p a
O.00
Camage Inwaro 19,600
Bent and Tases
S e s ages
9300
4,000
Prirtrg& statbonery 8.700
on Bank Loan
Interest 1,100
Traveling taperses
Postage & eephone
870
2.000
insurance 400
Genera Expenses 12.750
Furmiture
Cash Balance
5.000
380
Bank Baance 8.000
5,00,000 5,00.000
Adjustments:
(() Closing Stock on 31-3-2013 was 78,600.
Credit purchases ot R400 have not been entered in the Books.
1) l'rinting and Stationery amounting to R3,600 is to be carried forward.
(t) !nterest on Bank Loan shall be
provided for
whole vear.
() P'ersonal purchases of proprietor amounting to ToX) have been recorded
in Purchase Day Book.
Depreciate turniture by 10°.
(r77) Provision for Bad & Doubtful Debts to be created @5% on Debtors and

2 for Discount on Debtors.

(Vn) Included among Debtors 5,000 due from him and included among
Creditors 1,000 due to him.
Prepare Trading, Profit & Loss A/c for the year ending 31st March, 2013 and a
Balance Sheet as on that
date.
Sol. Trading and Profit & Traders
Loss A/c of Ms. AJIT
for the year cnded 31* Nlarch, 2013

Particulars Particulars
19 Opening Stock 46,800 By Sales 3,89.600
To Purchases .700 Less Sale Retuns 8.600 3,81.000
Less Purchase Returns By Closing Stock 18,500
5.800
3,15,900
Add Omitted 4 400
3.16,300
Less: Charged from Mr. Ajit 600 700
T age inward
0 Gross Proft (trans. to P&L AC) 7,500
4,59.600 4,59.600
0 Discount allowed 1.800 By Gross Proft
10 Rent& Taxes 9.300 (From rading AC) 7500
Salares &Wages 4,000 By Discount Recerved 4,110
fo
Printing Staionery
&
8,700
less Unused 3,600 5,100
Interest on Bank Loan 1,100
Unpaid 0 2.800
1.700
 BCOM. (HONS.)
SHIVA D.U.,
p-B
14,000
By
Commission received 1.2740
S.000
D i s c o u n t

4,000 Bank
To Commission 3,000By Rent recerved .000 Carmage
2.500 By Interest received
Rent 00 Rent an
6.000 By Interest on urawngs
interest Salaries
Expenses
To Ofice
&Administrative 10.000 10,00* n0*12 Pintng &
To Seling & Distrbubon Expenses I n t e r e s t onn

11,.000
To Depreciation: Plant &Machinery T r a v e i n g

To Interest on Capital: POstage &

R1.60.000* 10 9,600
Insurance

9,900
R10,00010012 S00
To Goods Lost due to Fire Alc 10,000 Generar
Fumiture
ess Claim accepted 000 4,000
To Manager's CommisSiO 3,500 Cash Balar
To Net Prn 70,000 Bank Balar
1.37,900 137 900
Balance Sheet Adjustna
as on 31* March, 2013
Assets (i) C
Liatilities
Cap D.O00 Pant& Machinery 1,10,000 (i").
ANet
AD Pro 000 Less: Depreciation 11,000 99.000 (7) In
ret Capital 00
Add Interest on
on apita
Deotors
Less:Goods sent on app. 2,15.
10,000 2.05.000
()
Less Drawings 0,000 Bals Recervabie 10.000
(7)ID
Less Interest on Drawings450 2,39.450 Loan
(n) Pr
2.02.000 Investments 50.000
Bats Payable 5,600 Cash in hand 5.000
50.000 Cash at Dena Bank 45.550 (vii) In
Bank overdrat at Canara Bank
Manager s Commission Outstanding
20.000 Ciosing Siocx 61,500 Ci
3.500 Add Goods with Customers 8,000
Add Goods in-transit T0,500 80.000 Prepare
nsurance Claim Due 6.000
Balance S
5.20.550 Sol.
5.20.5
Wothing hees
Cosing >*xk is valued 61, as
Pet
Cods with custoters (not yet Pinye
of Lost or
approved as sale) are treated i s NuAri nd included in
k cost t5,0X) u
the ivke ot elu,xk ivorded n the books is alriyht but as goonds were w rexN nil Opening
eed od the year
Hence. thee same are
Purchase
lnterest on Dr a h treated as
urt
purt ot Ckning Stok (Cos in-trasi Less Pu
omminion is g u tor 6 months faverage isis
Assume Commission is P'rotitiprotit before conuniss
Hence - u A , - C) befote commission |1.7, 73.0

21C-73,5 0-C
0 C / 3 , A ) - C

Q.5. The following

2013: is the Trial Balance of Ms. AJIT Traders as
o2011
Particulars 2011 Sem
Drawngs and Captals Dr. () C. (9
P 2012 65.680
19,000
a n d Sales 46,800
Res
Debtors anc Credtors
3,21,700
8,b00
3,89.600
5.800
D alanes
inting 8
24,000 14,800 Less Un
erest
Unp
 P-5
ACCOLNTIG PROCESSs

Q. 3. Given below is the Trial Balance of Mr. Ramesh as on

31* Dec., 20IE
Particular Dr. .(
and and suiding 20.0
0.0
oice Mac
Fumture and Fngs 0.000
S t b o on T1-2012 16,000
Puchases and Sales 90.000 220.000

Bad Deois TU.0U 40.000

Debtors and ureaitors 35.000
10,000
Saies
Rent Rates ana lazes 15.000
Advertisement 8.000
.000
Drawnigs
Loan to Ashok 16% p.a on 1-7-2012 20.000
Wages
3.000
000
est on Loan to Ashok
S ' s Kecervable 10.00
IradeMark
3.000
1,000
Discount
2.000
Wages Payable ,98,08
Capital
Bank Overdraft 40,000
5,01.0005,01.00
Additional Information:
() The value of Stock on 31-12-2012, 730,000.
50.000 (n) Sales include 5,000 tor the goods sold on approval to Hemant. Goods
are sold at a profit ot 25% on cost. Approval was not received till 31° Dec.

55.000 (10) Furniture purchased during the year tor k5,000 was wrongly debited to

5,500 'urchase Book.

customers was deposited in the bank in
( ) A cheque of R8000 received trom
the last week of December. It was reported to have been dishonoured.
() Free samples worth R4,000 were distributed during the year.
provision for doubtful
(U) Write off further bad debts R2,000. Also create
a
15,000
debts at 10% on debtors.
5.000 5%.
by 10% and ofice machinery by
(1) Depreciate furniture & Loss Account for the year ended 31st
Prepare Trading and ProfitSheet as o n that date. 2010
2012 and a Balance
(5.000
December, of Mr. Ramesh
Sol. Trading and Profit & Loss Account
(6.000
for the ended 31" December, 2012 r

5
ycar
Particulars
19. Particulars
16,000 By Sales 20.000
Opening St0CK
Less: Sale on approval 5.000
To Purchases 90.000
2,15,000
Iranst. to Fumilure
LESS
AC 5.000 Less: Sales lax 10,000 2.05,000
55,000
Less: Free Samples
81.000 By Closing Stock 30.000
4,000 33.000 By Stock with Customers (at cost) 4000
Wages
To Gross Profit cd 1,09,000
2.39,000 2.39.00
 SHIVA D.U., B.COM. (HONS.)

20,000 By Gross Profit bd scunt

Salanes 1.09.000 WSSiorn

By Interest on Loan to
To Bad Debts 10,000 Ashok
Bad Debts 2,000
AO Further d ACCTued nierest nteres
Add Provision for Doubtul 1,600 Oficn and Ad
15,600
Debts((New) 3,600
o Rent, Räles and laxes
15.000 Selinga
10 Advertsement 18.000 Credno
Payau
,000
Discount 4,000
o ree samples Loan
Furmiture 2,500 Investmer
o Depreciation on
3.500
o Dep. on Omce Machinery Opening
1 in hana
To Net Profit trst to Capital Ac 31,000
Cash at Dena
1,10,600 110500
Balance Sheet of Mr. Ramesh ankoveroran
wages and >
as on 31 December, 2012
Ltabtities Sets
Capita 1,98.000 Land & Buiding
20.000 Additiona
AOU Ner MOnt Ofhce Machinery Closi
70,000
,43,000 Less Depreciauion
.500 66,500 How
Less Drawings
Credtors
5.000 224,000Fumiture &Fttings 20,000 (i) Provi
Ad3. Trst. trom Purchase (11) Provz
40000
Wages Payabe
Bank Overdrat
2,000 25,000 was
40,000 Less Depreciation 2,500 22.500
Add: Dishonour of Cheque 8,000 48 000 Loan to Ashok 0.000
() Charg
() C0ou
l's ecevable
Trade Mark
t0,000
The !
8,000
Debtors
Less Sale on Approvar
35.000 Daid t
5,000
30,000
Less
Further Bad Debs 0
28,000
Add Cheque Dishonoured 800
36,000
Less Provision tor
accour
Doubtful Debts ,b00 2.400
( ) Mana
ACCrued interest
the co
Closing Stck 0.000
De
Sol.
Stock with Custormiers 4000
Q.4. From the following Trial3.14000
Balance
3.14 000
and
Trading and Profit & Loss Account of Mr. additional information, pap Par
March, 2013 and Balance Sheet as at Mukul for the year
that date: ende penungStoc
Ses
Particwlars ss
Capta Drawrgs Dr. () C. ( Less Returis
10.000 1.70000
FrechtLOss by
SalesPurhas 1.10,000 Wa ward:
84,000 165.000 and Sa
Returns
5.000
Gross Profit b
Bad dets Bad debts Recovered 4000
Freight inwards 5,000 26.450
Freight outwards
ad Detts
5.000
7 000
gnt Outwal
 ACEDUNTING PROCESSs P-7

Descount 2.000 1000

Camnssion 4,000 3.00
3,000 4000
nteres 500 J000
Ofce and Adminsrative Expenses 6,000
Seling ard Dstnbubon Epenses
10 000
CredtorsDebors 4.15000 2.02.000
Bis Payate Bals Recevable 5.600
ar
0000
000 50.000
investens 0000
S4,000
5 000
ar Dena Bank
Last 45.550
barA overdrar ar Canara Bank
20.000
Wages and Salanes
1,000
6,54.050 54.050
Additional Information
) Closing Stock at market price as at 31" March, 2013 was 61,500.
However, its cost was t80,00.
l'rovide tor
()
depreciation on Plant and Machinery
(7) 'rovide interest on capital e 6% p.a. and an additional capital of T10,000
10% p.a.

r)
ws introduced on 1" Oct. 2012.
(P)
Charge interest on drawings 9 p.a
Cxnds costing R10,000 were destroyed due to fire on 30th March, 2013.
The nsurance Company
M accepted claim to the extent of 60% only and
paid the claim money on 10" April, 21s.
0 (7) Coods worth &I10,000 were sent to a
00
on
customer
approval basts and have
been accounted lor in the books as actual sale. These goods remained
upproved on 31" March, 2013. The cost of such goods was 78,000
(78) Received credit purchase invoice ot R10,500 on 27h March 2013
and
0 reorded in the books but the goods were not received till the end of the
ccounting year.
(n)
Manager is entitled to a commision on 5% of net profit after charging
the commission.
Sol.
and Profit & Loss Account
.
Trading
for the year ended 31" March, 2013

To Opening Stock
Particuiars Particulars
54,000 By Sales Aic ,65,000
PurchaaSes 84,000 Less Returns 5.000
Less Returns
ation, 4,000 Less Goods on approval 10,000
Less Loss by tire 150,000
Freche ire 10,000 70.000 By Closing Stock 61.500
5.000 Add With the Customer 2 8,000
Wacs
rOSs P r m e d e s 1,000 Add: Goods in-ransif'10500 50,000
Gross PTot br
1,00,000
5ad Debts 2.30,000
5,000 By Gross Profit
2,30,000
g t outwards 1,00,000
cOunt 7.000 By Bad Debts recovered
2.000| By Discount receved
26,450
1,000
w
 P-3
ACCOUNTIG PROCESS

Caleulation of Manager's Commnssion

Net Protit efore dvidend income
55,010
3,050 600 0- 150 500-
250 600- 100 70 3,070) =

Manager s commission t55,010 */120 5,835

Q.2 1e toilowing is the Trial Balance of a Trader as on 31s* March, 2013:

Particulars Dr. 5.000 Cr: ()

iand
Land and Building
80,000
Plant and Machinery
50.000
Debtors and Creditors
3 Stoo on *2012
25,000 40,000
15% Investrment on 14-2012
20.000
Purchases and Saies
Bank Overdraft 95,000 1,90.000
20,000
Wages 28,000
Salanes
Rent, Rates and Taxes 16,000
Bad Debts 15.000
6,000
Drawings
B.lls Recevatble and Bills .000
Payable 15.000 21.000
Camiage Inwards
6.000
Fre in y on Purchases 16.000
Ata e Fremiur 4,000
30.000
4U US
ovSon tor Doubtful Debts .000
erest on investmenis
uncry Expenses 2.000
Furmiture 11.000
Value Added Tax 20.000
1750 Capital 25.000
57.000
4,57,000 4,57.000
Additional
0) Stock
Information
on 31" March, 2013 was
valued at ?40,000.
(7) Included in debtors are T8,00 due from Ram
and included in creditors
U ire 6,000 due to Ram.
(ir) Bills Receivables include a bill of 75,000 received from Mohan, which
been dishnoured. has
(to) Sales include R5,00 for the
285
not received till 31st
goods sold on approval basis. Approval was
1.033

March. Goods are sold at a profit of 25% on cost.

) Wages include R5,000 spent on erection of
) Create a
machinery on 14-2012.

t)
provision for doubtful debts at 5% on debtors.
repaid rates and taxes amounted to R2,000.
(7)
Depreciate machinery by 10%.
epare
2013 and Trading
and Profit & Loss Account for the
year ended 31st
a Balance Sheet as on that date.
March,
2009
&& 9
 P-2 SHIVA D.U., B.COM. (HONS.)

Sol. and Profit & Loss Account of Shri Ganesh

Trading
Dr. for the year cnded 5 December, 2012
Particulars
Particulas
To Purchases (Adjusted) 6.99200 By Sales AU.O00
Less: Sale of furniture
Wages 200 39.800
Add. Employees contnbuton
to National Insurance
Add: Rental value of buiking' 500 550
o Carriage in
1o Gross Profit c'd
38,650
To Nabonal Insurance
7,39,800 739 800
150 By Gross Profit b/d
Empioyers contriDuhon) By Discount earneo 38,650
To Carriage Out 500
To Rates& Insurance
By Dividend recerved
Less Prepaid
By Rental value of bulding
OCCupied by employees
500
ighting
Discount allowed 100 Bad
To Loss on Sale of 70
furmiture
Depreciation:
Building 1,500
umiture
To Manager's Commission 3.070
5.835
o Net Profit
29,075
40.050
Balance Sheet of Shri Ganesh
40 05
Prov
4s on 37 December, 2012
Liabilities
undry Creditors
20.000 Cash
Asels
Manager s Commission due
in hand and at Bank 1,750
5,835 Sundry Debtors
dpia 48,500 6,000
A0d Net Profit Closing Stock 61 250
29475 77.975 Prepaid insurance
Funture 8,000
150
Add
Less Book value of fumiture sold 300 (
1, 700
Less: Depreciation 540 6.160
Building
Less: Depreciation
30,000 (ii)
1.03810 1,500 28.500
Working notes 1,09
Empoyes (fv)
workers are corniibutinto
pal National Insurance and rental value of
Caleulation of depreciation on
building occupie
u r e Sold: furmtture
Book Value at tanal loss on saie
of furnifure:
Less: Depreciation [tMK)* nning
lor
b months
1 12 (vi)
elling Prico
s on Sale
Furniture n h urniture
2/0
(vn)
Add:
Depreciathun 20%
6
months
ane

depreciation
S0
on
(Book Value of furniture sold)|
Prepar
2013 and
Otal furniture
Depreciation on urniture
ture sold (a)