1. The following is the Trial balance of Mr.Ramesh as on 31st March 2007.
| | Dr.(Rs.) | Cr.(Rs.) |
| Purchases Sales Stock of goods as on 1-4-2006 Cash in Hand Cash at Bank Mr. Ramesh’s Capital Drawings Rates and Taxes Salaries Postages Commission paid to Salesmen Insurance Furniture and Fittings Advertising Printing and Stationery Motor Car Bad Debts Cash Discounts General Expenses Carriage inwards Carriage outwards Wages Sundry Creditors Sundry Debtors | 3,10,000 50,000 2,100 12,000 4,000 5,000 32,000 11,500 35,000 9,000 22,000 17,000 3,000 48,000 2,000 4,000 14,000 22,000 10,000 20,000 96,000 | 4,00,000 2,88,600 40,000 |
| | 7,28,600 | 7,28,600 |
The following adjustments are to be made:
a) Stock on 31st March 2007 was valued at Rs.1,45,000
b) Mr.Ramesh has taken out for personal use goods costing Rs.5,000 out of purchases during the year.
c) Furniture purchased for Rs.10,000 was wrongly included in purchases.
d) Rs.5,000 due from a debtor included in Sundry Debtors has become bad.
e) Creditors include a balance of Rs.4,000 to the credit of Mr.Ram in respect of which it has been settled that only Rs.1,000 is to be paid to him.
f) Provision for bad debts to be created at 5% on Sundry Debtors.
g) Depreciate Furniture and Fittings by 10% and Motor car by 25%.
h) The Salesmen are entitled to a commission of 10% on sales.
Prepare Trading, Profit and Loss account for the year ended 31st March 2007 and Balance Sheet as on that date.
2. From the following Trial Balance of Sanjay, Prepare Trading and Profit & Loss Account for the year ended 31st March 2008 and a Balance Sheet as at that date:
| | Dr.(Rs.) | Cr.(Rs.) |
| Opening Stock Purchases and Sales Wages and Salaries Carriage Insurance Bills Receivable and Bills Payable Commission Interest Trade Expenses Debtors and Creditors Furniture 1-4-2007 Cash in Hand and at Bank Rent and Taxes Sale of Furniture on 31-3-08 (Book value Rs.1,300) Discount Received Charges paid Creditors Capital | 55,000 1,92,500 12,500 4,000 3,500 22,500 4,000 3,500 3,450 2,30,000 6,000 42,250 12,750 8,000 | 3,57,500 18,500 93,250 1,000 200 40,000 89,500 |
| | 5,99,950 | 5,99,950 |
Adjustments:
a) Stock on 31st March 2008 Rs.80,000
b) Trade expenses include payments of stationery Rs.250.
c) Bills Receivable includes a dishonoured bill of Rs.800.
d) Make provision for doubtful debts at 5% on debtors.
e) Commission payable on sale at 1%.
f) Carriage includes Rs.1,500 as outwards.
g) Salaries outstanding for the year Rs.2,500.
h) Sanjay has withdrawn goods for his personal use amounted to Rs.3,500.
i) Free samples Rs.500 was not entered in the books of account
j) Goods destroyed by fire was Rs.8,500 and from which Rs.5,500 only receivable from insurance company.
.
3. The following is the Trial Balance of Shri Bindu, as on 31st March 2007. You are required to prepare the final accounts, after giving effect to the adjustments:
| | Dr.(Rs.) | Cr.(Rs) |
| Sundry Debtors / Sundry Creditors Capital Account Drawings Insurance General Expenses Salaries Patents Machinery Building Stock 1-4-2006 Carriage on Purchases Carriage on Sales Fuel and Power Wages Returns Purchases / Sales Cash at Bank Cash in Hand | 1,45,000 52,450 6,000 30,000 1,50,000 75,000 2,00,000 1,00,000 3,00,000 57,600 20,400 32,000 47,300 1,04,800 6,800 4,06,750 26,300 5,400 | 63,000 7,10,000 5,000 9,87,800 |
| | 17,65,800 | 17,65,800 |
The following adjustments are to be made:
a) Stock on 31st March 2007 was valued at Rs.68,000
b) A provision for bad and doubtful debts is to be created to the extent of 5% on Debtors.
c) Depreciate Machinery by 10% and Patents by 20%.
d) Wages include a sum of Rs.20,000 spent on the erection of a cycle shed for employees and customers.
e) Salaries for the month of March 2007, amounting to Rs.15,000 were unpaid.
f) Insurance includes a premium of Rs.1,700 on a policy , expiring on 30th September 2007.
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