Financial Statement

Practice Sheet
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Q.1. From the following Trial Balance of Amit & Co. Prepare Trading and Profit and Loss Account and a Balance
Sheet as at 31st December 2024
Debit Amount Credit Amount
Opening stock 10,600 Sales 1,10,000
Carriage on sales 1,400 Capital 31,500
Debtors 14,800 Creditors 12,200
Purchases 72,000 Purchases Return 500
Salaries 4,200 Commission 600
Discount 800
Sales Return 1,000
Machinery 20,000
Carriage on Purchases 1,600
Repairs 600
Cash in hand 4,400
Rent and taxes 5,200
Furniture 10,000
Office expenses 2,000
Wages 4,600
Travelling expenses 800
Fire Insurance Premium 1,000
1,55,000 1,55,000
adjustments:
1. closing stock was valued at ₹12,800
2. office expenses ₹300 and Wages ₹400 are outstanding
3. prepaid Insurance ₹200
4. depreciate Machinery and Furniture by 10%
5. Provide for Manager’s commission @ 10% on Net profit before charging his commission.
(GP: - ₹33,100; NP: - ₹13,320; Balance Sheet: - ₹59,200}

Q.2. From the following Trial Balance as at 31st December 2023, Prepare Financial Statement for the year 2023
Debit Amount Credit Amount
Cash 4,400 Purchases Return 1,200
Scooter 10,600 Commission 2,000
Stock on 1st January 2023 26,000 Bank Overdraft 7,000
Purchases 1,30,200 Creditors 24,500
Computer 20,000 Capital 46,700
Trade expenses 2,000 Discount 2,000
Insurance’ 2,400 Sales 2,11,500
law charges 500
Interest on Overdraft 300
debtors 26,000
wages 12,000
Salaries 11,000
Drawings 10,000
Income tax 2,000
Investment 10,000
Discount 4,000
Sales return 1,500
Bills Receivable 5,000
Furniture 12,000
Rent 5,000
2,94,900 2,94,900
adjustments:
1. closing stock ₹28,000
 2. interest accrued on Investment ₹1,000
3. unearned commission ₹400
4. unpaid wages ₹3,000
5. insurance to the extent of ₹400 relates to the year 2024
6. Rent is payable at the rate ₹500 per month
7. Charge interest on capital @5% on capital and ₹500 on drawings
8. Write off Depreciation on scooter and furniture @10%.
9. Manager is entitled to a commission of 10% on Net profit after charging such commission
{GP: - ₹68,000; NP: - 42,323; Manager’s commission ₹3,882}

Q.3. Prepare Financial Statement form the given trial balance prepared on 31st march 2024
Particulars Debit (Rs.) Credit (Rs.)
Bank 6,000
Purchases and Sales 55,000 1,04,000
Debtors and Creditors 25,000 21,000
Returns 3,000 2,000
Interest 1,000
Salaries 10,000
Wages 9,000
Rent 6,000
Bad debts 1,000
Capital 30,500
Drawings 6,000
Provision for Bad Debts 1,500
Printing and stationery 3,000
Insurance 2,400
Opening stock 18,000
Office expenses 3,000
Furniture 10,000
Trade expenses 1,600
Octroi duty 1,000
1,60,000 1,60,000
Consider the following adjustments: -
1. Closing stock ₹20,500
2. Wages outstanding ₹1,000 and rent still due is ₹1,500
3. Insurance prepaid ₹400
4. Create provision for doubtful debts @5% on debtors
5. Charge interest on capital @5%
6. Manager is entitled to a commission of 10% on Net profit after charging such commission.
{GP: - ₹39,500; Commission: - ₹984; NP: - ₹9,836; Balance Sheet: - ₹60,650}

From the following Trial Balance of Miss. Nisreen Malik as at 31st March 2023, you are required to prepare Final
Accounts:
Debit Amount Credit Amount
Opening stock 4,500 Capital 15,750
Purchases 8,940 Sales 22,860
Returns 240 Returns 270
Duty on imported goods 1,560 Commission 1,200
Carriage on Purchases 840 Bills Payable 9,000
Carriage on sales 1,200 Creditors 4,620
Office salaries 1,440
Drawings 2,400
Rent 1,080
General expenses 900
Bank 1,800
Cash 600
Debtors 6,000
Building 12,000
Machinery 6,000
Bills receivable 1,500
Depreciation 1,200
Horses and carts 900
Interest 540
Discount 60
53,700 53,700
Adjustments: -
1. Closing stock Rs.5,910.
2. Charge Depreciation on Horses and carts @ 10%.pa.
3. Closing Balance of Building amounts to Rs.10,000 and of Machinery Rs.5,400.
4. Rent is Rs.100 per month.
5. Office salaries are also Rs.100 per month.
6. Goods destroyed by fire Rs.500.
7. A credit sale of Rs.500 is not yet recorded.
8. Commission still to be received Rs.300.
9. Provide 10% for Manager’s commission on Net Profit before charging his commission.
{G/P: - Rs.13,960; N/P: - 5,373; B/S: - Rs.33,060}